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HomeMy WebLinkAbout08-28-2019 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, August 28, 2019 Regular Meeting of the s, 6:00 P.M. BOARD OF DIRECTORS Board Room 10a44 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER (Board Chairman David Shawver) INVOCATION AND PLEDGE OF ALLEGIANCE (Mariellen Yarc, City of Cypress) ROLL CALL (Clerk of the Board) DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: • Employee Service Awards REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are forinformation only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are consideredto be routine and willbe enacted, by the Board of Directors,afterone motion,without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board of Directors held on July 24, 2019. 0 812812 01 9 OOSD Board of Directors Agenda Page 1 of 8 2. ANNUAL MANHOLE FRAME AND COVER REPAIR CONTRACT (Rob Thompson) RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Ayala Engineering for Manhole Frame Cover Replacement Services, Specification No. S-2019-1055BD; B. Award a Service Contract to Ayala Engineering to provide Manhole Frame & Cover Replacement Services, Specification No. S-2019-1055BD, for a total amount not to exceed $390,220 for the period beginning November 1, 2019 through October 31, 2020, with four optional one-year renewals; and C. Approve an annual contingency of$58,533 (15%). 3. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) RECOMMENDATION: A. Receive and file District purchases made under the General Manager's authority for the period of April 1, 2019 to June 30, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of April 1, 2019 to June 30, 2019: • DME — Exhaust Bellows • FAIRBANKS NIJHUIS (FAIRBANKS MORSE) - Pumps Repairs • JOHNSON MATTHEY SEC - Oxidation Catalyst (OXI) Units • SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT (SCCWRP) - Bight'18 Biological Impacts Assessment • WONDERWARE CALIFORNIA - Industrial Operator Interface Products (IntelaTrac) RECEIVE AND FILE: These items require no action;and without objection, will be so ordered by the Board Chair. 4. COMMITTEE MEETING MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: Steering Committee Meeting of June 26, 2019 0&28I2019 OCSD Board of Directors Agenda Page 2 of 8 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JULY 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of July 2019. PUBLIC HEARING: 6. COLLECTION OF SEWER SERVICE CHARGES VIA THE TAX ROLL (Lorenzo Tyner) RECOMMENDATION: A. Conduct a public hearing to receive input on a report filed with the Clerk of the Board entitled "Sewer Service Charges for Collection on Tax Rolls for Fiscal Year 2019-20" 1. Open the public hearing 2. Receive staff report and recommendations 3. Report of written communications by Clerk of the Board 4. Public Comment 5 Close Public Hearing 6 Discussion by the Board of Directors; B. Unless there is a majority protest,adopt the report,which has the assessor's parcel numbers and amount of charges for collection on the tax rolls; C. Adopt Resolution No. OCSD 19-11 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Report proposing to collect Sewer Service Fees on the Tax Roll for Fiscal Year 2019/2020"; D. Authorize execution of the "Certification of Assessment'; E. Direct staff to file a certified copy of the adopted Resolution, Report, and the Certification of Assessment with the County Auditor-Controller; and F. Direct staff to coordinate collection of sanitary sewer service charges on the general Orange County tax rolls with the County Auditor-Controller, Assessor, and Tax Collector. OPERATIONS COMMITTEE: None. ADMINISTRATION COMMITTEE: None. OW2812019 OOSD Board of Directors Agenda Page 3 of 8 LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: None. STEERING COMMITTEE: 7. AMENDMENT TO BIG CANYON COUNTRY CLUB EASEMENT (Lorenzo Tyner) RECOMMENDATION: Approve the Amendment to Easement between Orange County Sanitation District and Big Canyon Country Club to adjust the Sanitation District's easement to correspond with the new sewer location within the Big Canyon Country Club in the City of Newport Beach. 8. SETTLEMENT AGREEMENT WITH ASEPTIC TECHNOLOGY, LLC (Lan Wiborg) RECOMMENDATION: Authorize the General Manager to execute a Settlement Agreement to settle industrial wastewater discharge enforcement matters with Aseptic Technology, LLC, a facility that discharged without a valid Orange County Sanitation District permit, for $185,000 plus applicable fees and interest, in a form approved by General Counsel. 9. GENERAL MANAGER'S FISCAL YEAR 2019-20 DRAFT WORK PLAN (Jim Herberg) RECOMMENDATION: Receive and File the General Manager's Fiscal Year 2019-2020 Draft Work Plan. 10. ELIMINATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) AND NET PENSION LIABILITY (NPL)WITHIN THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM (Lorenzo Tyner) RECOMMENDATION: Direct staff to pay off the following amounts in the Orange County Sanitation District's defined pension plan administered by the Orange County Employees' Retirement System (OCERS) in an amount not to exceed $38 million: • Unfunded Actuarial Accrued Liability (UAAL) in the amount of$9 million for pension benefits • Net Pension Liability (NPL) in the amount of $29 million for deferred investment loss 0&2I2019 OCSD Board of Directors Agenda Page 4 of 8 NON-CONSENT: 11. TREASURER'S REPORT FOR THE FOURTH QUARTER ENDED JUNE 30, 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the Orange County Sanitation District Fourth Quarter Treasurer's Report for the period ended June 30, 2019. 12. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE SUPERVISOR & PROFESSIONAL GROUPS (Laura Kalty) RECOMMENDATION: A. Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the two(2) Supervisory and Professional Management Group bargaining units. 13. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION (Laura Kalty) RECOMMENDATION: A. Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) Orange County Employees Association bargaining units. 14. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS — LOCAL 501 (Laura Kalty) RECOMMENDATION: A. Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501, for Fiscal Years 201912020, 2020/2021 & 202112022"; and 0&2W2019 OCSD Board of Directors Agenda Page 5 of 8 B. Direct staff to finalize and sign the Memoranda of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. 15. STRATEGIC PLAN DEVELOPMENT (Rob Thompson) RECOMMENDATION: Provide input to staff on the development of the Strategic Plan. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense,per Government Code§53232.3(d). CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation,orpersonnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to(a)purchase and sale of real property;(b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act,may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)) Number of Potential Cases: 1 Significant exposure to litigation: Claim of Jose Cruz (2) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: General Manager James Herberg, Assistant General Manager Lorenzo Tyner and Director of Human Resources Celia Chandler. 06/28I2019 OCSD Board of Directors Agenda Page 6 of 8 Unrepresented Employees: Confidential Group: Assistant Clerk of the Board; Clerk of the Board; Human Resources Analyst; Human Resources Assistant; Human Resources Supervisor; Principal HR Analyst; Secretary to the General Manager; and Senior Human Resources Analyst. (3) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: General Manager James Herberg, Assistant General Manager Lorenzo Tyner and Director of Human Resources Celia Chandler. Unrepresented Employees: Managers Group Administration Manager; Controller; Engineering Manager; Environmental Laboratory & Ocean Monitoring Manager; Human Resources & Risk Manager; IT Systems & Operations Manager; Maintenance Manager; Operations Manager; and Purchasing and Contracts Manager. (4) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representative: General Manager James Herberg, Assistant General Manager Lorenzo Tyner and Director of Human Resources Celia Chandler. Unrepresented Employees: Executive Managers Group: Assistant General Manager; Director of Engineering; Director of Environmental Services; and Director of Human Resources. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Special Meeting of the Board of Directors on September 18, 2019 at 5:00 p.m. 0&28I2019 OCSD Board of Directors Agenda Page 7 of 8 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. R you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gale of the Sanitation District's Administration Building located at 10M Ellis Avenue, Fountain Valley, Cafdomia, and on the Sanitation District's website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. Al public records relating to each agenda Rem, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each Rem of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted in writing to the Clerk of the Board 14 days before the meeting. Kelly A Lore, MMC Clerk of the Board (714)593-7433 klore(alocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 iherberc(rpocsd.com- Assistant General Manager Lorenzo Tyner (714)593-7550 Itvnen&.ocsd.com Assistant General Manager Rob Thompson (714)593-7310 rthompson(cDocsd.com Director of Human Resources Celia Chandler (714)593-7202 cchandler(a msd.com Director of Engineering Kathy Mlles (714)593-7365 kmilleaaocsd.com Director of Environmental Services Lan Wibo 714 593-7450 Iwibo ocsd.com 0 812812 01 9 OGSD Board of Directors Agenda Page 8 of 8 ITEM NO. 1 Orange County Sanitation District MINUTES BOARD MEETING July 24, 2019 ANITAT� 9 U N 2 ,y t o � ftwowm0i l�NG THE ENV�Q, Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 712 412 01 9 Minutes of Board Meeting Page 1 of 12 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman David Shawver on July 24, 2019 at 6:05 p.m. in the Administration Building. Director Fred Smith delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X David Shawver, Chair Carol Warren X Brad Avery Joy Brenner X Allan Bernstein Chuck Puckett A Doug Chaffee Michelle Steel X Robert Collacott Chad Zimmerman X James M. Ferryman Bob Dolan Phil Hawkins X Brooke Jones X Cecilia Iglesias David Penaloza X Steven Jones John O'Neill X Peter Kim Marshall Goodman X Lucille Kring Denise Barnes X Sandra Massa-Lavitt Schelly Sustarsic Mark Murphy X Kim Nichols X Richard Murphy Dean Grose A Steve Nagel Patrick Harper X Andrew Nguyen Al Krippner X Glenn Parker Steven Vargas X Erik Peterson Mike Posey X Tim Shaw Tom Beamish X Christina Shea Anthony Kuo X I Jesus J. Silva Jan Flory X Fred Smith Sunny Park X Chad Wanks Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Kelly Lore, Clerk of the Board; Janine Aguilar; Stephanie Barron; Megan Carlson;William Cassidy; Thys DeVries; Mike Dorman; Dean Fisher; Chris Johnson; Tina Knapp; Rob Livingston; Rebecca Long; Laura Maravilla; Joshua Martinez; Andrew Nau; Wally Ritchie; Jim Spears; and Ruth Zintzun. 07/24/2019 Minutes of Board Meeting Page 2 of 12 OTHERS PRESENT: Brad Hogin (General Counsel); Laura Kelly, Liebert Cassidy Whitmore (Special Counsel); Bob Ooten (Alternate Director) CMSD; and Anni Larkins, Jacobs. PUBLIC COMMENTS: Clerk of the Board Kelly Lore stated that correspondence was received from the General Manager which was distributed to the Directors. SPECIAL PRESENTATIONS: Assistant General Manager Rob Thompson presented a 20-year Employee Service Award to William Cassidy, Engineering Supervisor, Division 820 and a 30-year Employee Service Award to Rob Livingston, Program Assistant, Division 830. REPORTS: Chair Shawver announced the OCSD's 65"Anniversary Open House&Centrifuge Ribbon Cutting VIP event would take place Saturday, July 271h from 9 a.m. - 12 p.m. and that the Nerissa Tours will take place on July 29 & 30, 2019 and to Contact Clerk of the Board if interested. General Manager Jim Herberg introduced and welcomed newly hired Purchasing & Contracts Manager, Ruth Zintzun. He also announced that OCSD had received the NACWA Platinum Award. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on June 26, 2019. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Steering Committee Meeting of May 22, 2019 07/24/2019 Minutes of Board Meeting Page 3 of 12 B. Operations Committee Meeting of June 5, 2019 C. La PA Committee Meeting of June 10, 2019 D. Administration Committee Meeting of June 12, 2019 E. GWRS Steering Committee Meeting of April 8, 2019 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JUNE 2019 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of June 2019. OPERATIONS COMMITTEE: 4. PLANT NO. 2 TRICKLING FILTER INFLUENT (FEED) PUMP REPAIRS (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Sole Source Purchase Order to Vaughan's Industrial Repair Co., Inc for the repair and reinstallation of six influent pumps at the Plant No. 2 Trickling Filter Pump Station,for a total amount not to exceed $631,010; and B. Approve a contingency of$126,202 (20%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 5. RENEWAL AGREEMENT FOR LIQUID OXYGEN PURCHASE AND ASSOCIATED VAPORIZATION SYSTEM MAINTENANCE SPECIFICATION NO. C-2018-926BD (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve Amendment No. 1 for a unit price increase of $0.0535 per centum cubic feet(22.8%)to the chemical supplier agreement with Airgas USA, LLC for the purchase of liquid oxygen, Specification No. C-2018-92613D, for the period beginning August 21, 2019 through August 20, 2020 for a unit price of $0.288 per centum cubic feet delivered, plus applicable sales tax, for a total estimated annual amount of$496,512; and B. Authorize unit price adjustment of up to 15% annually using mutually acceptable price indices for subsequent agreement renewal periods. 07/24/2019 Minutes of Board Meeting Page 4 of 12 AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 6. HEADWORKS REHABILITATION AND EXPANSION AT PLANT NO. 1, PROJECT NO. P1-105 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: A. Consider, receive, and file the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, prepared by Carollo and Environmental Science Associates; and B. Adopt Resolution No. OCSD 19-07, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Mitigated Negative Declaration for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, adopting a Mitigation Monitoring and Reporting Program, and approving the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105." AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 7. PLANT NO. 2 TRUCKLOADING AUGER REPLACEMENT (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Sole Source Purchase Order to Putzmeister for the procurement of up to 12 replacement Putzmeister augers along with their associated mounting components including gear motor assembly for the Plant No. 2 truckloading facility, for a total amount not to exceed $663,359; B. Approve payment of$198,008 (30%)of the not-to-exceed amount at the time of order; and C. Approve a contingency of$132,672 (20%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; 07/24/2019 Minutes of Board Meeting Page 5 of 12 Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 8. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2, PROJECT NO. P2-92 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase of $498,500 (1%) to the construction contract with Shimmick Construction Company, Inc. for Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, for a total contingency of$2,991,000 (6%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 9. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase of $357,000 (5%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101,for a total contingency amount of$2,499,000 (35°/%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 10. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a budget increase of$1,300,000 for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total budget of$10,300,000; 07/24/2019 Minutes of Board Meeting Page 6 of 12 B. Approve a Professional Construction Services Agreement with AECOM Technical Services, Inc. to provide construction support services for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $140,000; and C. Approve a contingency related to the Professional Construction Services Agreement of$14,000 (10%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel ADMINISTRATION COMMITTEE: 11. 2020 BENEFITS INSURANCE RENEWAL (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District 2020 Benefits Insurance Renewal for the overall not-to-exceed amount of $13,137,895; and a one-time adjustment to 2019 Health & Welfare Insurance purchase order for the not-to-exceed (NTE) amount of $230,000, as specified below: A. WORKTERRA (medical, dental, and vision plans; Health Savings Accounts [HSA]; and Employee Assistance Program [EAP]) — Not to Exceed $12,377,584; B. Prudential (basic life, short- and long-term disability) — Not to Exceed $730,311; C. The Standard (EMT & Manager disability)— Not to Exceed $30,000; and D. Approve a contingency of$656,895 (5%). E. For the 2019 Plan Year, approve a one-time reallocation from the 2019 operating budget in the amount of$230,000 to be transferred to group health insurance benefits, resulting in a change in the total cost approved by the Board, from $12,894,770 to $13,124,770. The reallocation would not result in an increase to the overall 2019 budget. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 07/24/2019 Minutes of Board Meeting Page 7 of 12 LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 12. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Legislative Affairs Update for the month of June 2019. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 13. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Public Affairs Update for the month of June 2019. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel STEERING COMMITTEE: General Counsel Brad Hogin stated a recusal on Items Nos. 14 and 15 due to a conflict of interest with the County of Orange and left the room during discussion. 14. RIGHT OF ENTRY AGREEMENT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Right of Entry Agreement for Orange County Transportation Authority, and its authorized agents, to enter upon Orange County Sanitation District's property located on the north side of Westminster Boulevard, East of Springdale Street, in Westminster, CA adjacent to the Interstate 405 Freeway for temporary use in connection with its project to widen the Interstate 405 Freeway for a term of four (4) years from the 30-day notice prior to the beginning of construction, in a form approved by Special Counsel; and 07/24/2019 Minutes of Board Meeting Page 8 of 12 B. Direct the Clerk of the Board to record the Agreement with the Orange County Clerk-Recorder. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 15. FIRST AMENDMENT TO 800 MHZ LEASE (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Approve the First Amendment to the 800 MHz Lease Agreement with the County of Orange with the following modifications, in a form approved by Special Counsel: • Term of Lease shall expire May 4, 2023; with an optional one (1) additional five-year period • Increase the annual lease rate from $0.42 per square foot to $0.52 per square foot • Decrease the site footprint from 10,000 square feet to 4,784 square feet before December 31, 2019 AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel 16. COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA (Lan Wiborg) MOVED, SECONDED, AND DULY CARRIED TO: Approve a Cooperative Agreement among the County of Orange, Orange County Sanitation District, Orange County Water District (collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority(SAWPA), a joint powers authority, for the Orange County Parties agreeing to remain a part of the Santa Ana Funding Area covered by the One Water One Watershed Plan for a period of ten (10)years, from date of execution. AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; 07/24/2019 Minutes of Board Meeting Page 9 of 12 Nguyen; Parker; Peterson; Shaw; Shawver; Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee; Nichols (Alternate); and Nagel Alternate Director Kim Nichols arrived at 6:23 p.m. NON-CONSENT: 17. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 (Kathy Millea) Director of Engineering, Kathy Millea provided a brief overview of the item. MOVED. SECONDED, AND DULY CARRIED TO: A. Receive and file Bid Tabulation and Recommendation for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129; B. Award a Construction Contract to Abhe&Svoboda, Inc. for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $6,863,092; and C. Approve a contingency of$686,309 (10%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); Parker; Peterson; Shaw; Shawver, Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee and Nagel 18. FUEL CELL AND BOILER FACILITIES DEMOLITION, PROJECT NO. FE16-06 (Kathy Millea) Ms. Millea provided a brief overview of the item and explained the bidding process. MOVED. SECONDED, AND DULY CARRIED TO: A. Receive and file Bid Tabulation and Recommendation for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06; B. Receive and file Clarification Request No.1 issued to Innovative Construction Solutions (ICS) on May 21, 2019; C. Receive and file ICS's response to Clarification Request No.1 received on May 22, 2019; D. Receive and file Clarification Request No. 2 issued to Innovative Construction Solutions (ICS) on June 12, 2019; 07/24/2019 Minutes of Board Meeting Page 10 of 12 E. Receive and file ICS's response to Clarification Request No. 2 dated June 19, 2019; F. Reject low Bid received from ICS as non-responsive; G. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders on July 11, 2019; H. Award a Construction Contract to Mehta Mechanical Company, Inc. for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06, for a total amount not to exceed $474,000; and I. Approve a contingency amount of$47,400 (10%). AYES: Avery; Bernstein; Collacott; Ferryman; Iglesias; B. Jones (Alternate); S. Jones; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); Parker; Peterson; Shaw; Shawver, Shea; Silva; F. Smith; Withers; Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Chaffee and Nagel INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Director Ferryman reported on his recent meetings at NWRI and informed the Board that he will be attending the OCCOG meeting tomorrow. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4): The Board convened in closed session at 6:28 p.m. to discuss one item. Item No. CS-2 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:34 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. 07/24/2019 Minutes of Board Meeting Page 11 of 12 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None requested. ADJOURNMENT: At 6:37 p.m., Chair Shawver adjourned the meeting until the Regular Meeting of the Board of Directors to be held on August 28, 2019 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board 07/24/2019 Minutes of Board Meeting Page 12 of 12 BOARD OF DIRECTORS Meeting Dare T%%8011Dir. -- O8/26/19 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: ANNUAL MANHOLE FRAME AND COVER REPAIR CONTRACT GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Ayala Engineering for Manhole Frame Cover Replacement Services, Specification No. S-2019-1055BD; B. Award a Service Contract to Ayala Engineering to provide Manhole Frame &Cover Replacement Services, Specification No. S-2019-105513D, for a total amount not to exceed $390,220 for the period beginning November 1, 2019 through October 31, 2020, with four optional one-year renewals; and C. Approve an annual contingency of$58,533 (15%). BACKGROUND The Orange County Sanitation District (Sanitation District) owns approximately 5,000 manholes throughout Orange County. Occasionally, manholes need repair or replacement due to corrosion, settling, age, or due to street repaving. The Sanitation District staff previously implemented an annual repair contract that has since expired. Public safety requires wom manhole frame and covers to be repaired in a timely manner. In addition, when street repaving occurs, the Sanitation District is required to reset its manhole frames and covers to match the new street elevation. RELEVANT STANDARDS • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting • Protect Orange County Sanitation District assets • Maintain a proactive asset management program PROBLEM The majority of the Sanitation District's manhole frames and covers are in city streets. There tends to be little notice before necessary repairs are needed. The nature of this work requires specialized training and equipment that the Sanitation District outsources rather than hire staff to serve a standby function. The previous manhole frame and cover contract expired at the end of the 2017-18 fiscal year. A similar blanket service contract was bid in the summer of 2018. Unfortunately, the awarded low bidder in September 2018, Zeco, Inc., was unable to meet Sanitation District insurance Page 1 d 3 requirements. Without a new contract in place, the manhole repair and replacement program will fall behind. PROPOSED SOLUTION It is impossible to exactly quantify how many repairs or manhole adjustments will be required in any one year. The bid is based on an estimated quantity of typical repair types and traffic control services based on historical need. The services will be used on an as-needed basis at the bid unit cost rates. Award a new manhole frame and cover repair contract with four annual renewals to Ayala Engineering, Inc. TIMING CONCERNS A new contract is recommended as soon as possible to assure timely repairs can be made in city streets. RAMIFICATIONS OF NOT TAKING ACTION Urgent replacements by individual contracts might not be bid and tend to be more expensive than an annual blanket manhole frame and cover repair contract which is bid. In addition, a backlog of unaddressed repairs will eventually become a public safety issue. PRIOR COMMITTEE/BOARD ACTIONS September 2018-Operations Committee awarded a contract to Zeco, Inc.who was found to be the lowest bidder. Zeco, Inc. was unable to meet the Sanitation District's insurance requirements. ADDITIONAL INFORMATION A Notice Inviting Bids was issued on May 1, 2019 via PlanetBids and closed on June 4, 2019. The Sanitation District received two bids. The estimate for this procurement was $250,000 and the lowest bid was $390,220. Company Name Bid Ayala Enqlneerinq $ 390,220 W.A. Rasic $1,683,250 Ayala Engineering was found to be the lowest responsive and responsible bidder. A contingency of 15% is requested because the quantity of work per year is not fixed. The total cost is dependent on the number of manhole covers that are deemed in need of replacement by inspection and the unit cost differs by manhole size, material, and individual traffic control needs. In addition,street repairs or improvement by others impact the total blanket contract utilization/cost. Page 2 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation DistricPs Purchasing Ordinance. This item has been budgeted in the FY19-20 Budget Update, Operations and Maintenance Department Repairs & Maintenance line item (Page 47). Date of Approval Contract Amount Contingency 08/28/2019 $390,220 $58,533 (15%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Service Contract DS:sr:gc Page 3 of 3 SERVICE CONTRACT Manhole Frame and Cover Replacement Services Specification No. S-2019-1055BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and Ayala Engineering with a principal place of business at 8482 East Meadowridge Street, Anaheim, CA 92808 (hereinafter referred to as "Contractor")collectively referred to as the"Parties". WITNESSETH WHEREAS, OCSD desires to temporarily retain the services of Contractor for Manhole Frame and Cover Replacement Services "Services" as described in Exhibit"A"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-52; and WHEREAS, on September 25,2019,the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the Contractor. The terms and conditions herein exclusively govem the purchase of Services as described in Exhibit"A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit "A" Scope of Work Exhibit "B" Bid Exhibit"C" Acknowledgement of Insurance Requirements Exhibit "D" OCSD Safety Standards Exhibit"E" Human Resources Policies Exhibit"F" Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. Orange County Sanitation District 1 of 10 Specification No. S-2019-1055BD Version 120518 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Years Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation to be paid by OCSD to Contractor for the Services provided under this Contract shall be a total amount not exceed Three Hundred Ninety Thousand Two Hundred Twenty Dollars ($390,220.00). 3. California Department of Industrial Relations(DIR)Registration and Record of Wages 3.1 To the extent Contractors employees and/or its subcontractors who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(a). 4. Payments and Invoicing 4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted for work completed in accordance with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStafflcaOCSD.com and "INVOICE" with the Purchase Order Number and Specification No. 5-2019-1055BD shall be referenced in the subject line. Orange County Sanitation District 2 of 10 Specification No. 5-2019-1055BD Version 120518 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"A". Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Term The Services provided under this Agreement shall be for the period of one (1)year commencing on November 1, 2019 and continuing through October 31, 2020. 9. Renewals 9.1 OCSD may exercise the option to renew this Contract for up to four (4) one-year periods based upon the criteria set forth in Exhibit "A", under the terms and conditions contained herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 9.2 This Contract may be renewed by OCSD Purchase Order. 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract(unless the notice directs otherwise). OCSD shall thereafter,within thirty (30) days, pay Contractor for work performed(cost and fee)to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Contract. 12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the temrination of this Contract, whichever occurs first. Orange County Sanitation District 3 of 10 Specification No. S-2019-1055BD Version 120518 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Bonds Not Used 15. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractors) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys'fees: (a)for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 16. OCSD Safety Standards OCSD requires Contractor and its subcontractor(s)to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Safety Standards while working at OCSD locations. If during the course of the Contract it is discovered that OCSD Safety Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Contractor and all of its employees and subcontractors, shall adhere to all applicable OCSD Safety Standards attached hereto in Exhibit"D" and the Human Resources Policies (Exhibit"E"). 17. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 17.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance by the OCSD Project Manager or designee of the work as complete. 17.2 Contractor's Warranty (Guarantee): If within a one (1)year period of completion of all work as specified in Exhibit "A", OCSD informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within Orange County Sanitation District 4 of 10 Specification No. S-2019-1055BD Version 120518 the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 18. Liquidated Damages Not Used 19. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 20. Freiaht (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; and 2) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 22. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 23. Licenses, Permits. Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Contractor. 24. Applicable Laws and Regulations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 25. Contractor's Employees Compensation 25.1 Davis-Bacon Act — Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis- Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. Orange County Sanitation District 5 of 10 Specification No. S-2019-1055BD Version 120518 25.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site, which shall be made available to any interested party upon request. 25.3 Forfeiture For Violation—Contractor shall, as a penalty to OCSD,forfeit fifty dollars($50.00) for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 25.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty(20)working days or more;or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5)working days or more. 25.5 Workday—In the performance of this Contract, not more than eight(8)hours shall constitute a day's work, and the Contractor shall not require more than eight(8) hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said Article. Contractor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractor in connection with the project. 25.6 Record of Wages; Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. 26. South Coast Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as Orange County Sanitation District 6 of 10 Specification No. 5-2019-1055BD Version 120518 sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 27. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 28. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 29. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover" by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 30. Dispute Resolution 30.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 30.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two(2)arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3)arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 31. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 32. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. Orange County Sanitation District 7 of 10 Specification No. S-2019-1055BD Version 120518 33. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 34. Damage to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 35. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 36. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 37. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 36. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 39. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 40. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 41. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 42. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 8 of 10 Specification No. S-2019-1055BD Version 120518 43. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Jackie Lagade Principal Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Contractor: Ricardo Ayala Owner Ayala Engineering 8482 East Meadowridge Street Anaheim, CA 92808 Each party shall provide the other party written notice of any change in address as soon as practicable. Orange County Sanitation District 9 of 10 Specification No. S-2019-1055BD Version 120518 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Ruth Zintzum Contracts and Purchasing Manager AYALA ENGINEERING Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 10 of 10 Specification No. S-2019-1055SD Version 120518 BOARD OF DIRECTORS Meeting Date TOBE.Of Dir. -- 08/28/19 AGENDA REPORT Item Item 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION A. Receive and file District purchases made under the General Manager's authority for the period of April 1, 2019 to June 30, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of April 1, 2019 to June 30, 2019: • DME — Exhaust Bellows • FAIRBANKS NIJHUIS (FAIRBANKS MORSE) - Pumps Repairs • JOHNSON MATTHEY SEC - Oxidation Catalyst (OXI) Units • SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT (SCCWRP) - Bight'18 Biological Impacts Assessment • WONDERWARE CALIFORNIA - Industrial Operator Interface Products (IntelaTrac) BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $100,000; maintenance and repair Services Task Orders between $50,000 and $300,000; and additions to the pre-approved OEM Sole Source List. The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM)added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at District facilities, because the parts and/or service can only be provided by the OEM or their designated representative. RELEVANT STANDARDS • Quarterly financial reporting • Ensure the public's money is wisely spent Page 1 of 6 PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager's quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the fourth quarter of fiscal year 2018-19: Vendor Name Amount Department Description/Discussion Blanket PO for Legal Services—Real ALSTON & BIRD Estate Transactions LLP $95,000.00 Engineering 5/20/19 to 5/19/21 Sole Source Justification 2103 Reason: General Counsel Referral Purchase of a OX200 Droplet Digital PCR BIO-RAD System and Accessories and 1-Year LABORATORIES, $99,989.5-6 Environmental Coverage Plan INC. Services Approved CORF Budget FY 18/19 Sole Source Justification 2074 Reason: Unique Product/Service Purchase and Installation of Two (2) BUCHI Environmental Syncore Analyst Concentrators CORPORATION $69,595.23 Services Approved CORF Budget FY 18/19 Sole Source Justification 2088 Reason: Unique Product/Service Blanket PO for ARC Flash Suit& Glove CINTAS Rental Program CORPORATION $74,512.00 Operations & 5/1/19 to 4/30/20 LOC 640 Maintenance OMNIA Partners Contract#R-BB-19002, in Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases Three (3)Year Maintenance Support for CMS Shoretel Phone System COMMUNICATIONS, $60,000.00 Administrative 5/31/19 to 5/30/22 INC. Services Sourcewell Contract#022719-MBS, in Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases Page 2 d 6 Vendor Name Amount Department Description/Discussion Purchase of Replacement Valves and CS-AMSCO $72,056.97 Operations & Actuators for Digester F in April 2019 Maintenance Board Approved OEM Sole Source List M.O. 12114/16, Item 12 Purchase of Replacement Valves and CS-AMSCO $85,156.00 Operations & Actuators for Digester S in May 2019 Maintenance Board Approved OEM Sole Source List M.O. 12114/16, Item 12 Purchase of Replacement Valves and CS-AMSCO $72,163.00 Operations & Actuators for Digester G in June 2019 Maintenance Board Approved OEM Sole Source List M.O. 12114/16, Item 12 DIVERSIFIED Plant 2 Liquid Oxygen System Condition PROJECT $5465000 Operations & Assessment , . SERVICES INTL Maintenance Sole Source Justification 2088 INC. Reason: Unique Product/Service Blanket PO for ESRI Enterprise Advantage ENVIRONMENTAL Program (EEAP), including Technical SYSTEMS $89,000.00 Administrative Advisors, Account Planning, &Webcasts RESEARCH Services 7/1/19 to 6/30/20 INSTITUTE Board Approved OEM Sole Source List M.O. 12114/16, Item 12 Purchase of Two (2) New 2019 Toyota FREEWAY TOYOTA Operations & Camry Hybrid LE CVT Sedans OF HANFORD $58,526.84 Maintenance CA State Contract# 1-18-23-10C, in Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases GRAYBAR Programmable Logic Controller(PLC) ELECTRIC Equipment—Approved CORF Budget COMPANY WALNUT $55,780.86 Engineering US Communities Contract#EV2370, in CA Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases Page 3 of 6 Vendor Name Amount Department Description/Discussion GRAYBAR Purchase & Replacement of UPS System ELECTRIC Operations & at Administration Building (MP-434) COMPANY WALNUT $82,086.50 Maintenance US Communities Contract#EV2370, in CA Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases JANE Plant 2 South Scrubber Complex Bleach ENGINEERING $85,918.00 Operations & Pump Turndown (MP-420) CONTRACTORS Maintenance INC Specification No. JL-106741 Labware Implementation Consulting for New Functionality of Laboratory LABWARE INC $80,000.00 Administrative Information Management Systems (LIMS) Services 411/19 to 6/30/20 Board Approved OEM Sole Source List M.O. 12114/16, Item 12 Convenience Blanket PO for Classified ORANGE COUNTY $99 00000 Administrative and Legal Advertising REGISTER . Services 7/1119 to 6/30/20 GM Article 2, Section 2.2 (b) (1) PERKINELMER Purchase and Installation of a Gas HEALTH SCIENCES, $97,841.67 Environmental Chromatograph Mass Spectrometer INC. Services Approved CORF Budget FY 18/19 Specification No. E-2019-1043BD Support& Maintenance/Hosting for Project Administrative Management Information System (J-128) PMWEB, INC. $82,166.67 Services 8/1/19 to 7/31/20 Board Approved OEM Sole Source List M.O. 8/22/18, Item 7 Purchase of Six (6) Ocean Acidification Environmental and Hypoxia Sensor Packages RBR LTD $99,913.88 Services Approved CORF Budget FY 18/19 Board Approved OEM Sole Source List M.O. 8/22118, Item 7 Page 4 of 6 Vendor Name Amount Department Description/Discussion REDMAN Non-Stock Repair of Two (2) EQUIPMENT & $72,316.00 Operations & 12" and Two (2)8" Heat Exchangers MFG. CO. Maintenance Sole Source Justification 2116 Reason: Time Sensitive—Critical Process Convenience Blanket PO for On-Site SAFETY SHOE $7000 Human Safety Shoe Service ,000. SERVICES Resources 7/1/19 to 6/30/20 GM Article 2, Section 2.2 (b) (1) SCCWRP to Provide Professional Services for Ocean Discharge Regional SCCWRP $51,200.00 Environmental Monitoring Requirements Services 6/1119 to 10/31/20 Sole Source Justification 2092 Reason: Unique Product/Service SCCWRP to Provide Professional Services to Assess Presence of SCCWRP $50,040.00 Environmental Contaminants in Marine Receiving Waters Services 5/15/19 to 6/30/20 Sole Source Justification 2109 Reason: Unique ProducUService SHIMMICK Plant 2 Digester N Bridge to Gas CONSTRUCTION $92,600.00 Operations & Compressor Walkway Coating Repairs CO INC Maintenance (MP-539) Specification No. S-2019-1009 Purchase of a Horizontal Mounted Gas to SUPERIOR SALES $54 Operations & Water Heat Exchanger to Replace CO. ,313.00 Maintenance Rotating Stock Asset Specification No. HP-35793 Rental Space for Housing Disaster Administrative Recovery Data SWITCH LTD $90,000.00 Services 5/13/19 to 8/16/22 Sole Source Justification 2114 Reason: Unique Product/Service Additionally, in accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $300,000. Below is a summary of General Manager Page 5 of 6 approved maintenance and repair Services Task Orders, in amounts exceeding $50,000, for the fourth quarter of fiscal year 2018-19: Vendor Name Amount Department Description/Discussion AECOM ENERGY & Main Street Pump Station Valve CONSTRUCTION, $107,000.00 Operations & Replacements (MP-559) INC. Maintenance Specification No. TOB-2019-1020 of Master Service Contract S-2018-942BD-1 INNOVATIVE Dual Heat Exchanger Replacement at ENGINEERING $192,815.00 Operations & Plant 2 (MP-271) AND Maintenance Specification No. TOB-2019-1069 of MAINTENANCE Master Service Contract S-2018-942BD-3 INNOVATIVE Plant 2 Center Column Rehabilitation at ENGINEERING $155,650.00 Operations & Digester P (P2-91-1 J) AND Maintenance Specification No. TOB-2019-1038 of MAINTENANCE Master Service Contract S-2018-942BD-3 Valve Replacements at MacArthur Pump J R FILANC $61,552.00 Operations & Station (MP-427) CONSTRUCTION Maintenance Specification No. TOB-2019-1056 of Master Service Contract S-2018-942BD-4 JAMISON Plant 2 Digester N Valve Replacement and ENGINEERING $5496000 Operations & Accessway Repairs (P2-91-11) , . CONTRACTORS Maintenance Specification No. TOB-2019-1049 of INC Master Service Contract S-2018-942BD-5 FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: N/A Page 6 of 6 ITEM NO. 4 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, June 26, 2019 at 4:30 p.m. A special meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, June 26, 2019 at 4:30 p.m. in the Administration Building of the Orange County Sanitation District. OC Sheriff Deputy Saenz led the Pledge of Allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: David Shawver, Board Chair Jim Herberg, General Manager John Withers, Board Vice-Chair Rob Thompson, Assistant General Robert Collacott, Operations Committee Manager Chair Lorenzo Tyner, Assistant General Peter Kim, LaPA Committee Chair Manager Glenn Parker, Member-At-Large Celia Chandler, Director of Human Tim Shaw, Member-At-Large Resources Kathy Millea, Director of Engineering COMMITTEE MEMBERS ABSENT: Lan Wiborg, Director of Environmental Chad Wanks, Administration Committee Services Chair Kelly Lore, Clerk of the Board Stephanie Barron Jennifer Cabral Thys DeVries Al Garcia Lori Klinger Tina Knapp Laura Maravilla Jeff Mohr Wally Ritchie OTHERS PRESENT: Brad Hogin, General Counsel Laura Kalty, Liebert Cassidy Whitmore, Special Counsel PUBLIC COMMENTS: Marc Brown, President and Chief Negotator representing the Supervisory and Professional Management Group (SPMG) spoke in favor of a cost of living increase for the bargaining units. O8/26/2019 Steering Committee SPECIAL MEETING Minutes Page 1 of 3 Clerk of the Board Kelly Lore stated that correspondence had been received from Marc Brown, SPMG in regard to Closed Session Item No. CS-3, which was also distributed to the Board of Directors. REPORTS: Chair Shawver did not provide a report. General Manager Jim Herberg did not provide a report. CONSENTCALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO:. Approve Minutes of the Regular Meeting of the Steering Committee held May 22, 2019. AYES: Collacott, Kim, Parker, Shaw, Shawver, and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke NON-CONSENT ITEMS: 2. GENERAL MANAGER'S FY 2018-2019 WORK PLAN YEAR-END UPDATE (Jim Herberg) Mr. Herberg provided a brief overview of his Work Plan accomplishments for FY 2018-19. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and File the General Manager's FY 2018-2019 Work Plan Year-End Update. AYES: Collacott, Kim, Parker, Shaw, Shawver, and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke INFORMATION ITEMS: None. O6126/2019 Steering Committee SPECIAL MEETING Minutes Page 2 of 3 CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957(b)(1). 54956.9(d)(4) & 54957.6: The Board convened in closed session at 4:34 p.m. to discuss four items. Confidential minutes of the Closed Sessions have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 5:55 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:56 p.m. to the next Steering Committee meeting to be held on Wednesday, July 24, 2019 at 5:00 p.m. Sub fitted by: Ke ly A. 1. e,�1MC /— CI rk oft Board O6/26/2019 Steering Committee SPECIAL MEETING Minutes Page 3 of 3 BOARD OF DIRECTORS Meeting Date TOBE.Of Dk. -- 08/28/19 AGENDA REPORT ItemNumber IemNumber s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JULY 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of July 2019. BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. Attached is the monthly report of investment transactions for the month ended July 31, 2019. RELEVANT STANDARDS CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following aftachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Report of the Investment Transactions for the month ended July 31, 2019 Page 1 of 1 U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Ervtry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss ACQUISITIONS 07/01/2019 31846V567 PURCHASED UNITS OF FIRSTAM GOVTOB FDCLZ 2,113,125.0000 1.000000 -2,113.125.00 2,113,125.00 0.00 07/0212019 31846V567 PURCHASED UNITS OF FIRSTAM GOVTOB FDCLZ 12,397.2400 1.000000 -12,397.24 12,397.24 0.00 07/02/2019 31846V567 PURCHASED UNITS OF FIRSTAM GOVTOB FDCLZ 34,814.0700 1.000000 -34,814.07 34,814.07 0.00 07/06/2019 31846VS67 PURCHASED UNITS OF FIRSTAM GOVTOB FDCLZ 89,625.0000 1.000000 -89.625.00 89,625.00 0.00 07/08/2019 31846VS67 PURCHASED UNITS OF FIRSTAM GOVTOB FDCLZ 53,087.7200 1.000000 -53,087.72 53,087.72 0.00 07/12/2019 02665WCM PURCHASED PAR VALUE OF AMERICAN HONDA MTN 2.400% 6127/24/J.P.MORGAN 1,219,000.0000 0.995770 -1,213,843.63 1,213,843.63 0.00 SECURITIES LLC/1,219,000 PAR VALUE AT 99.M% 07/1212019 31846V567 PURCHASED UN ITS OF FIRST AM GOVT OB FD CL Z 1,130,000.0000 1.000000 -1.130.000.00 1,130,000.00 0.00 07/1212019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,943.7500 1.000000 -4,943.75 4,943.75 0.00 07/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 298,478.6200 1.000000 -298,478.62 298,478.62 0.00 07/15/2019 912828XX3 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 6/30/24 M.P.MORGAN 5,000,000.0000 1.005742 -5,028,710.94 5,028,710.94 0.00 SECURITIES LLC/5,000,000 PAR VALUE AT 100.5742188% 07/15/2019 31946VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,083.3600 1.000000 -14,083.36 14,083.36 0.00 07/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 217,968.1200 1.000000 -217,968.12 217,968.12 0.00 07/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,473.6200 1.000000 -7.473.62 7,473.62 0.00 07/18/2019 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 368,080.0400 1.000000 -368,080.04 368,080.04 0.00 07/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 146,875.0000 1.000000 -146,875.00 146,875.00 0.00 07/22/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 133,436.4600 1.000000 -133.436.46 133,436.46 0.00 07/23/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 16,875.0000 1.000000 -16,875.00 16,875.00 0.00 07/23/2019 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 93,750.0000 1.000000 -93,750.00 93,750.00 0.00 07/24/2019 477870AB5 PURCHASED PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16122/RBC CAPITAL 2,800,000.0000 0.999996 -2.799,989.36 2,799,989.36 0.00 MARKETS,LLC/2,800,000 PAR VALUE AT 99.99962% 07/25/2019 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,248.5000 1.000000 -100,248.50 100,248.50 0.00 07/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 144,986.2600 1.000000 -144,986.26 144,986.26 0.00 07/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,000.0000 1.000000 -100.000.00 100,000.00 0.00 07/29/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,702.5000 1.000000 -13,702.50 13,702.50 0.00 07/29/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,890,000.0000 1.000000 -1,890,000.00 1,890,000.00 0.00 07/29/2019 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 113,875.0000 1.000000 -113,875.00 113,875.00 0.00 07/30/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,750.0000 1.000000 -10,750.00 10,750.00 0.00 07/31/2019 313384MD8 PURCHASED PAR VALUE OF F H L B DISC NTS 9/25119 NVELLS FARGO 2,500,000.0000 0.9%702 -2,491.755.56 2,491,755.56 0.00 SECURITIES,LLC/2,500,000 PAR VALUE AT 99.6702224% 07/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 76,203,125.0000 1.000000 -76,203,125.00 76,203,125.00 0.00 07/3112019 31846VS67 PURCHASED UNITS OF FIRSTAM GOVT OB FD CLZ 5,194,376.0000 1,000000 -5,194,375,00 5,194,375.00 0,00 TOTAL ACQUISITIONS 100,025,075.2600 400,040,374.75 1-00 040 374.75 0.00 1 of 8 U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Ervtry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss DISPOSITIONS 07/01/2019 912828WS5 MATURED PAR VALUE OF U S TREASURY NIT 1.625% 61301192,000,000 PAR VALUE -2,000,000.0000 1.000000 2,000,000.00 -1,996,861.44 3,138.56 AT 100% 07/08/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25120 -54,896.1900 0.003221 64.896.19 -58,009.83 -3,113.64 07/08/2019 31398VJ98 PAID DOWN-RV PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 RATE CHANGE 1,808.4700 0.000000 -1,808.47 1,911.04 102.57 6/25/19 07/12/2019 25468PDL7 MATURED PAR VALUE OF WALT DISNEY MTN 0.875% 7/121191,130,000 PAR -1,130,000.0000 1.000000 1,130,000.00 -1,114,812.80 15,187.20 VALUE AT 100% 07/12/2019 02665WAH4 SOLD PAR VALUE OF AMERICAN HONDA MTN 2.250% 8/15119/PERSHING -1,500,000.0000 0.999840 1,499,760.00 -1,514,655.00 -14,895.00 LLC/1,500,000 PAR VALUE AT 99.984% 07/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.677% 1101/28 JUNE FHLMC -24.6700 0.000000 24.67 -24.07 0.60 DUE 7/15119 07/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.016% 8/15132 -532.8500 0.000000 532.85 -533.41 .0.56 07/15/2019 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 CMO FINAL -6,808.6400 0.000000 6,808.64 -6,808.51 0.13 PAYDOWN 07/15/2019 4778813AD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -31,420.2200 12.419054 31,420.22 -31,417.92 2.30 07/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -124,097.1500 3.144387 124,097.15 -123,845.08 252.07 07/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15121 -80,576.8400 4.842699 80,576.84 -79,931.60 645.24 07/15/2019 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1,500% 9/15121 CIO FINAL -217,968.1200 0.000000 217,968.12 -216,605.82 1,362.30 PAYDOWN 07/1512019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1,750%10/15/21 -173,517.4600 2.248819 173,517.46 -170,826.58 2,690.88 07/15/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100%10115/20 -333,070.3700 1.171652 333.070.37 -333,036.33 34.04 07/15/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z 4,213,772.7800 1.000000 4,213,772.78 4,213,772.78 0.00 07/18/2019 43814RAC0 PAID DOWN PAR VALUE OF HONDA AUTO 1.210%12/18/20 -128,232.7900 0.000000 128,232.79 -126,825.23 1,407.56 07/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -188,638.4700 0.000000 188.638.47 -185,646.78 2,991.69 07/22/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I 1#0800234.125%12/20/26 JUNE GNMA DUE -1,074.9000 0.000000 1,074.90 -1,092.66 -17.76 7/20/19 07/22/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#0800883.625% 6/20/27 JUNE GNMA DUE -1,306.6000 0.000000 1,306.60 -1,335.18 -28.58 7/20119 07/22/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#0803953.625% 4/20/30 JUNE GNMA DUE -158.0800 0.000000 158.08 -156.65 1.43 7/20119 07/22/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#0804083.625% 5/20/30 JUNE GNMA DUE -1,152.2200 0.000000 1.152.22 -1,140.52 11.70 7120119 07/22/2019 36225DCBB PAID DOWN PAR VALUE OF G N M A 11#0809653.750% 7/20/34 JUNE GNMA DUE -1,098.2400 0.000000 1.098.24 -1,097.55 0.69 7/20119 07/24/2019 31846V567 SOLD UNITS OF FIRST AM GOVI-OB FD CL Z -2,799,989.3600 1.000000 2,799.989.36 -2,799,989.36 0.00 07/25/2019 03215PFN4 PAID DOWN PAR VALUE OF AMRESCO 3.14513% 6/25129 4,442.3000 0.000000 4,442.30 -3,335.89 1,106.41 2 of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Anal, Cost Gain/Loss 07/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25120 -85,346.9400 0.000000 85,346.94 -90,187]1 -4,840.77 07/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25143 -8,120.9900 0.000000 8,120.99 -9,197.02 -1,076.03 07/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4101/28 JUNE FNMA DUE -150.7800 0.000000 150.78 -159.46 -8.68 7/25119 07/25/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357%9 5.000% 9/01/35 JUNE FNMA DUE -1,239.7900 0.000000 1,239.79 -1,332.77 -92.98 7/P5/19 07/25/2019 31381 PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 JUNE FNMA DUE -739.8600 0.000000 739.86 -723.85 16.01 7125119 07/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745680 5.000% 6/01/36 JUNE FNMA DUE -1,195.7000 0.000000 1.195.70 -1,285.38 -89.68 7/25119 07/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 JUNE FNMA DUE -8.8600 0.000000 8.86 -9.52 -0.66 7/25119 07/25/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 JUNE FNMA DUE -2,095.9000 0.000000 2,095.90 -2,253.09 -157.19 7/25119 07/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2101/35 JUNE FNMA DUE 437.8000 0.000000 437.80 434.38 3.42 7/25/19 07/25/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5,000% 7/01/35 JUNE FNMA DUE -86.3000 0.000000 86.30 -92.77 -6.47 7/25/19 07/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5,000% 7101/36 JUNE FNMA DUE -3,239.4100 0.000000 3,239.41 -3,482.37 -242.96 7/25119 07/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 JUNE FNMA DUE -201.7200 0.000000 201.72 -213.34 -11.62 7/25119 07/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A 4MA0022 4.500% 4101129 JUNE FNMA DUE -385.7000 0.000000 385.70 407.92 .22.22 7125119 07/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125/41 -2,626.6000 0.000000 2.626.60 -2,625.78 0.82 07/25/2019 78445JAA5 PAID DOWN PAR VALUE OF S L M A 4.12559% 4/25123 -669.6900 0.000000 669.69 -666.97 2.72 07/29/2019 69353REX2 MATURED PAR VALUE OF PNC BANK MTN 1.450% 7129/191,890,000 PAR VALUE -1,890,000.0000 1.000000 1,890,000.00 -1,872,668.70 17,331.30 AT 100% 07/31/2019 313384JV2 MATURED PAR VALUE OF F H L B DISC NTS 7/31/19 5,500,000 PAR VALUE AT -5,500,000.0000 1.000000 5,461.946.11 -5,461,946.11 0.00 100% 07/31/2019 912828TH3 MATURED PAR VALUE OF U S TREASURY NT 0.875% 7131/19 15,000,000 PAR -15,000,000.0000 1.000000 15,000.000.00 -14,874,023.44 125,976.66 VALUE AT 100% 07/31/2019 9128282KS MATURED PAR VALUE OF U S TREASURY NT 1.375% 7/31/19 35,000,000 PAR -35,000,000.0000 1.000000 35,000.000.00 -34,810,156.26 189,843.74 VALUE AT 100% 07/31/2019 912828W W6 MATURED PAR VALUE OF U S TREASURY NT 1.625% 7/31/19 20,000,000 PAR -20,000,000.0000 1.000000 20,000,000.00 -19,923,437.51 76,562.49 VALUE AT 100% 07/31/2019 912828W W6 MATURED PAR VALUE OF U S TREASURY NT 1.625% 7/31/19 5,000,000 PAR VALUE -5,000,000.0000 1.000000 5,000,000.00 -5,012,388.70 -12,388.70 AT 100% 3 of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Enfir,Date CUSIPId Explanation Units Price Net Cash Annt Cost Gain/Loss 07/31/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z .74,491,755.5600 1.000000 74,491,755.56 -74,491,755.56 0.00 TOTAL DISPOSITIONS -169,979,271.3800 169.940,977.49 -169,539,298.56 401,678.93 OTHER TRANSACTIONS 07/01/2019 31846V567 INTEREST EARNED ON FIRST AM COW OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 12,397.24 0.00 0.00 6/30/2019 INTEREST FROM 611/19 TO 6130/19 07KH/2019 31846V567 INTEREST EARNED ON FIRST AM GOW OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 34,814.07 0.00 0.00 6/30/2019 INTEREST FROM 6/1119 TO 6/30/19 07/01/2019 912828WS5 INTEREST EARNED ON U S TREASURY NIT 1.625% 6/30119$1 PV ON 2000000.0000 0.0000 0.000000 16,250.00 0.00 0.00 SHARES DUE 6/30/2019 07/01/2019 912828XW5 INTEREST EARNED ON U S TREASURY NIT 1.750% 6/30122$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 6/30/2019 07/01/2019 912828N30 INTEREST EARNED ON U S TREASURY NIT 2.125%12/31/22$1 PV ON 5000000.0000 0.0000 0.000000 53,125.00 0.00 0.00 SHARES DUE 6/30/2019 07/05/2019 3135GOS38 INTEREST EARNED ON F N M A 2.000% 1/05122$1 PV ON 3000000.0000 0.0000 0.000000 30,000.00 0.00 0.00 SHARES DUE 7/5/2019 07/05/2019 404280BF5 INTEREST EARNED ON HSBC HOLDINGS PLC 2,650% 1/05/22$1 PV ON 0.0000 0.000000 59,625.00 0.00 0.00 4500000.0000 SHARES DUE 7/5/2019 07/08/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125/20$1 PV ON 3131.8900 0.0000 0.000000 3,131.89 0.00 0.00 SHARES DUE 6/25/2019$0.00354/PV ON 884,090.32 PV DUE 6/25119 07/08/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125/20$1 PV ON 3131.8900 0.0000 0.000000 -3,131.89 0.00 0.00 SHARES DUE 6/25/2019 RATE CHANGE 6125/19 07/11/2019 912828WUD BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 12688.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 07/11/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 12688.00 UNITS 0.0000 0.000000 0.00 12,688.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 07/11/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 12688.0000 12,688.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 07/11/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 12688.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 07/12/2019 25468PDL7 INTEREST EARNED ON WALT DISNEY MTN 0.875% 7/12/19$1 PV ON 1130000.0000 0.0000 0.000000 4,943.75 0.00 0.00 SHARES DUE 7/12/2019 INTEREST ON 7/12/19 MATURITY 07/12/2019 02665WCZ2 PAID ACCRUED INTEREST ON PURCHASE OF AMERICAN HONDA MTN 2,400% 0.0000 0.000000 -1,219.00 0.00 0.00 6/27/24 07/12/2019 02665WAH4 RECEIVED ACCRUED INTEREST ON SALE OF AMERICAN HONDA MTN 2.250% 0.0000 0.000000 13,781.25 0.00 0.00 8/15119 07/15/2019 02687AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15122$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00161/PV ON 6,270,000.00 PV DUE 7115/19 4 of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Enh,Date CUSIP Id Explanation Units Price Net Cash Amt Cost G.In/L.ae 07/15/2019 02665WCJB INTEREST EARNED ON AMERICAN HONDA MTN 3.450% 7114/23$1 PV ON 0.0000 0.000000 14.576.25 0.00 0.00 845000.0000 SHARES DUE 7/14/2019 07/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.677% 1/01128$1 PV ON 7.4000 SHARES 0.0000 0.000000 7.40 0.00 0.00 DUE 7/15/2019 MAY FHLMC DUE 7/15/19 07/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.016% 8/15/32$1 PV ON 30.8400 0.0000 0.000000 30.84 0.00 0.00 SHARES DUE 7/15/2019$0.00335/PV ON 9,215.15 PV DUE 7/15119 07/15/2019 43814QAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 7.8900 SHARES 0.0000 0.000000 7.89 0.00 0.00 DUE 7/15/2019$0.00116/PV ON 6,808.64 PV DUE 7/15/19 07/15/2019 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5115/23$1 PV ON 1429.1600 0.0000 0.000000 1,429.16 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00124/PV ON 1,151,000.00 PV DUE 7115119 07/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 829.7700 0.0000 0.000000 829.77 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00152/1"V ON 547,103.97 PV DUE 7/15/19 07/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420%10/15120$1 PV ON 1203.0100 0.0000 0.000000 1,203.01 0.00 0.00 SHARES DUE 7/15/2019$0.0020VPV ON 596,531.92 PV DUE 7/15119 07/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4118/22$1 PV ON 2970.3300 0.0000 0.000000 2,970.33 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00222/PV ON 1,340,000.00 PV DUE 7115/19 07/15/2019 47789JA82 INTEREST EARNED ON JOHN DEERE OWNER 2.850%12/15/21 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00238/PV ON 3,265,000.00 PV DUE 7115/19 07/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11/15/22$1 PV ON 11883.6700 0.0000 0.000000 11.883.67 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00257/PV ON 4,630,000.00 PV DUE 7115/19 07/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 548.9500 0.0000 0.000000 548.95 0.00 0.00 SHARES DUE 7/15/2019$0.00110/PV ON 499,041.78 PV DUE 7/15119 07/15/2019 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 272.4600 0.0000 0.000000 272.46 0.00 0.00 SHARES DUE 7/15/2019$0.00125/PV ON 217,968.12 PV DUE 7/15/19 07/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21$1 PV ON 3828.1200 0.0000 0.000000 3,828.12 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00146/PV ON 2,625,000.00 PV DUE 7115119 07/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3,060% 3115/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00255/PV ON 3,560,000.00 PV DUE 7/15/19 07/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 3017.3100 0.0000 0.000000 3,017.31 0.00 0.00 SHARES DUE 7/15/2019$0.00175/PV ON 1,724,177.00 PV DUE 7115/19 07/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 8525.3700 0.0000 0.000000 8,525.37 0.00 0.00 SHARES DUE 7/1 512 01 9$0.00236/PV ON 3,616,000.00 PV DUE 7115/19 07/15/2019 912828WUD INTEREST EARNED ON U S TREASURY I P S 0.125% 7/15/24$1 PV ON 11203608.0000 0.0000 0.000000 7.002.26 0.00 0.00 SHARES DUE 7/15/2019 07/15/2019 912828XX3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 6130/24 0.0000 0.000000 4.076.09 0.00 0.00 07/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 956.9200 0.0000 0.000000 956.92 0.00 0.00 SHARES DUE 7/1 812 01 9$0.00101/PV ON 949,016.11 PV DUE 7/18/19 07/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9120/21 $1 PV ON 4015.7300 0.0000 0.000000 4,015.73 0.00 0.00 SHARES DUE 7/1 812 01 9$0.00149/PV ON 2,692,110.09 PV DUE 7118/19 5 Of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Enh,Date CUSIP Id Explanation Units Price Net Cash Annt Cost G.In/L.ae 07/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9120/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 7/1 812 01 9$0.00229/PV ON 4,395,000.00 PV DUE 7118/19 07/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5118/22$1 PV ON 4289.2600 0.0000 0.000000 4.289.25 0.00 0.00 SHARES DUE 7/18I2019$0.00251/PV ON 1,710,000.00 PV DUE 7118/19 07/18/2019 4581XOCW6 INTEREST EARNED ON INTER AMER DEV BK 2.125% 1/18/22$1 PV ON 3000000.0000 0.0000 0.000000 31,875.00 0.00 0.00 SHARES DUE 7/18/2019 07/18/2019 525ESCOY6 Unknown LEHMAN BRTH HLO ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.0000 0.000000 5,744.23 -5,744.23 0.00 2.87/SHARE 07/18/2019 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING 0.0000 0.000000 1,729.39 -1,729.39 0.00 DISTRIBUTION PAID @ 2.88/SHARE 07/19/2019 3135GOT94 INTEREST EARNED ON F N M A DEB 2,375% 1/19/23$1 PV ON 5000000,0000 0.0000 0.000000 59,375.00 0.00 0.00 SHARES DUE 7/19/2019 07/19/2019 89114QC48 INTEREST EARNED ON TORONTO MTN 3.500% 7/19/23$1 PV ON 5000000.0000 0.0000 0.000000 87,500.00 0.00 0.00 SHARES DUE 7/19/2019 07/22/2019 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 4.125%IM0126$1 PV ON 57.5800 0.0000 0.000000 57.58 0.00 0.00 SHARES DUE 7/20/2019 JUNE GNMA DUE 7/20/19 07/22/2019 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 3.625% 6120/27$1 PV ON 50.6000 0.0000 0.000000 50.60 0.00 0.00 SHARES DUE 7/20/2019 JUNE GNMA DUE 7/20119 07/22/2019 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 3.625% 4120/30$1 PV ON 20.6300 0.0000 0.000000 20.63 0.00 0.00 SHARES DUE 7/20/2019 JUNE GNMA DUE 7/20119 07/22/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.625% 5/20/30$1 PV ON 160.5700 0.0000 0.000000 160.57 0.00 0.00 SHARES DUE 7/20/2019 JUNE GNMA DUE 7/20119 07/22/2019 36225DCBB INTEREST EARNED ON G N M A 1 1#080965 3.750% 7/20/34$1 PV ON 147.4600 0.0000 0.000000 147.46 0.00 0.00 SHARES DUE 7/20/2019 JUNE GNMA DUE 7/20119 07/2212019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8122/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 7/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 7121119 07/22J2019 45950KCJ7 INTEREST EARNED ON INTL FINANCE CORP 1.125% 7120/21 $1 PV ON 2500000.0000 0.0000 0.000000 14,075.00 0.00 0.00 SHARES DUE 7/20/2019 07/22J2019 94974BGM6 INTEREST EARNED ON WELLS FARGO CO MTN 2.600% 7/22/20$1 PV ON 0.0000 0.000000 65,000.00 0.00 0.00 5000000.0000 SHARES DUE 7/22/2019 07/22/2019 95000U2138 INTEREST EARNED ON WELLS FARGO MTN 2.625% 7/22/22$1 PV ON 0.0000 0.000000 39,375.00 0.00 0.00 3000000.0000 SHARES DUE 7/2 212 01 9 07/23/2019 46625HKA7 INTEREST EARNED ON JPMORGAN CHASE CO 2.250% 1/23120$1 PV ON 0.0000 0.000000 16.875.00 0.00 0.00 1500000.0000 SHARES DUE 7/2 312 01 9 07/23/2019 46625HKA7 INTEREST EARNED ON JPMORGAN CHASE CO 2.250% 1/23120$1 PV ON 0.0000 0.000000 22.500.00 0.00 0.00 2000000.0000 SHARES DUE 7/2 312 01 9 07/23/2019 90331HNL3 INTEREST EARNED ON US BANK NA MTN 2.850% 1/23/23$1 PV ON 5000000.0000 0.0000 0.000000 71,250.00 0.00 0.00 SHARES DUE 7/23/2019 6 of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Earn,Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/LDSS 07/25/2019 808513AT2 INTEREST EARNED ON CHARLES SCHWAB CORP 2.650% 1125123$1 PV ON 0.0000 0.000000 89.437.50 0.00 0.00 6750000.00W SHARES DUE 712 512 01 9 07/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1126/20$1 PV ON 2937.4200 0.0000 0.000000 2.937.42 0.00 0.00 SHARES DUE 7/25/2019$0.00354/PV ON 829,194.13 PV DUE 7/25119 07/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9125/43$1 PV ON 3843.1500 0.0000 0.000000 3.843.15 0.00 0.00 SHARES DUE 7/25/2019$0.00542/PV ON 709,504.78 PV DUE 7/25119 07/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4101/28$1 PV ON 56.8300 SHARES 0.0000 0.000000 56.83 0.00 0.00 DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9101/35$1 PV ON 433.1100 0.0000 0.000000 433.11 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMA DUE 7/25/19 07/25/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 961,9000 0.0000 0.000000 961.90 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/2512019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6101/36$1 PV ON 402.0800 0.0000 0.000000 402.08 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7125/19 07/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 7.5300 SHARES 0.0000 0.000000 7.53 0.00 0.00 DUE 7/26/2019 JUNE FNMADUE 7/25/19 07/25/2019 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3101/35$1 PV ON 688.1700 0.0000 0.000000 688.17 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7/25119 07/25/2019 31406XWF5 INTEREST EARNED ON F N M A#823358 4.722% 2101/35$1 PV ON 435.1700 0.0000 0.000000 435.17 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7101/35$1 PV ON 81.8900 SHARES 0.0000 0.000000 81.89 0.00 0.00 DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7101/36$1 PV ON 792.0600 0.0000 0.000000 792.06 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 39.9400 SHARES 0.0000 0.000000 39.94 0.00 0.00 DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4,500% 4/01129$1 PV ON 65,1900 0.0000 0.000000 65.19 0.00 0.00 SHARES DUE 7/25/2019 JUNE FNMADUE 7/25/19 07/25/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25141 $1 PV ON 507.4300 0.0000 0.000000 507.43 0.00 0.00 SHARES DUE 7/25/2019$0.00257/PV ON 197,419.05 PV DUE 7/25119 07/25/2019 45950KCMO INTEREST EARNED ON INTL BK M T N 2.250% 1125/21 $1 PV ON 2970000.0000 0.0000 0.000000 33.412.50 0.00 0.00 SHARES DUE 7/25/2019 07/25/2019 76445JAA5 INTEREST EARNED ON S L M A 4.12559% 4125/23$1 PV ON 144.5500 SHARES 0.0000 0.000000 144.55 0.00 0.00 DUE 7/25/2019$0.01031/PV ON 14,014.54 PV DUE 7/25/19 07/26/2019 459058FY4 INTEREST EARNED ON INTL BK 2.000% 1/26122$1 PV ON 10000000.0000 0.0000 0.000000 100.000.00 0.00 0.00 SHARES DUE 7/26/2019 07/29/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 12272.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 7 of U.S. Bank Transaction History 07/01/2019 Thm 07/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 07/29/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 12272.00 UNITS 0.0000 0.000000 0.00 12,272.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 07/29/2019 08406RAE7 INTEREST EARNED ON BANK OF NY MTN 2.950% 1/29/23$1 PV ON 2500000.0000 0.0000 0.000000 36.875.00 0.00 0.00 SHARES DUE 7/29/2019 07/29/2019 61747WAL3 INTEREST EARNED ON MORGAN STANLEY 5.500% 7/28/21 $1 PV ON 0.0000 0.000000 77,000.00 0.00 0.00 2800000.0000 SHARES DUE 7/28/2019 07/29/2019 69353REX2 INTEREST EARNED ON PNC BANK MTN 1.450% 7/29/19$1 PV ON 1890000.0000 0.0000 0.000000 13,702.50 0.00 0.00 SHARES DUE 7/29/2019 INTEREST ON 7/29/19 MATURITY 07/29/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12272.0000 12,272.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 07/29/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12272.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 0 7/3012 01 9 B4974BGF1 INTEREST EARNED ON WELLS FARGO MTN 2.150% 1/30/20$1 PV ON 0.0000 0.000000 10,750.00 0.00 0.00 1000000.0000 SHARES DUE 7/3 012 01 9 07/31/2019 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE 0.0000 0.000000 -72,000,000.00 0.00 0.00 PER DIR DTD 7/30/19 07/31/2019 313384JV2 INTEREST EARNED ON F H L B DISC NTS 7/31119$1 PV ON 5500000.0000 0.0000 0.000000 38,053.89 0.00 0.00 SHARES DUE 7/31/2019 5,500,000 PAR VALUE AT 100% 07/31/2019 912828TH3 INTEREST EARNED ON U S TREASURY NT 0.875% 7/31119$1 PV ON 15000000.0000 0.0000 0.000000 65,625.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828H52 INTEREST EARNED ON U S TREASURY NT 1150% 1/31120$1 PV ON 13500000.0000 0.0000 0.000000 84,375.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828N89 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31121 $1 PV ON 6000000.0000 0.0000 0.000000 41,250.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 9128282K5 INTEREST EARNED ON U S TREASURY NT 1.375% 7/31/19$1 PV ON 35000000.0000 0.0000 0.000000 240,625.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828WW6 INTEREST EARNED ON U S TREASURY NT 1.625% 7/31/19$1 PV ON 20000000,0000 0.0000 0.000000 162,500.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828WW6 INTEREST EARNED ON U S TREASURY NT 1.625% 7/31119$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828V72 INTEREST EARNED ON U S TREASURY NT 1.875% 1/31122$1 PV ON 3000000.0000 0.0000 0.000000 28,125.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 9128283S7 INTEREST EARNED ON U S TREASURY NT 2.000% 1/31120$1 PV ON 15000000.0000 0.0000 0.000000 150.000.00 0.00 0.00 SHARES DUE 7/31/2019 07/31/2019 912828V80 INTEREST EARNED ON U S TREASURY NT 2.250% 1/31124$1 PV ON 7500000.0000 0.0000 0.000000 84,375.00 0.00 0.00 SHARES DUE 7/3112019 TOTAL OTHER TRANSACTIONS 24,960.0000 -69,900,602.74 17A86.38 0.00 8 Of BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. -- 08/28/19 AGENDA REPORT Item Item fi Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Administrative Services SUBJECT: COLLECTION OF SEWER SERVICE CHARGES VIA THE TAX ROLL GENERAL MANAGER'S RECOMMENDATION A. Conduct a public hearing to receive input on a report filed with the Clerk of the Board entitled "Sewer Service Charges for Collection on Tax Rolls for Fiscal Year 2019-20" 1. Open the public hearing 2. Receive staff report and recommendations 3. Report of written communications by Clerk of the Board 4. Public Comment 5. Close Public Hearing 6. Discussion by the Board of Directors; B. Unless there is a majority protest, adopt the report,which has the assessor's parcel numbers and amount of charges for collection on the tax rolls; C. Adopt Resolution No. OCSD 19-11 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Report proposing to collect Sewer Service Fees on the Tax Roll for Fiscal Year 2019/2020"; D. Authorize execution of the "Certification of Assessment", E. Direct staff to file a certified copy of the adopted Resolution, Report, and the Certification of Assessment with the County Auditor-Controller; and F. Direct staff to coordinate collection of sanitary sewer service charges on the general Orange County tax rolls with the County Auditor-Controller, Assessor, and Tax Collector. BACKGROUND Sections 5473 and 5473.1 of the State Health and Safety Codes allow the Orange County Sanitation District (Sanitation District) to collect the Sanitary Sewer Service Charges on the County's Property Tax Roll. The Sanitation District has exercised this option in the past because it has proven to be a cost-effective method of collection. To collect the charges on the tax roll it is necessary annually to: 1. File a report with the Clerk of the Board identifying each parcel of real property receiving the Sanitation District's services and the amount of the charge; and 2. Provide notice and conduct a public hearing on the report. Page 1 of 2 RELEVANT STANDARDS • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard • Cost-effective and most efficient method to collect sewer service fees PROBLEM The California Health and Safety Code requires a public hearing on the annual report of charges and mechanism to collect sewer fees. PROPOSED SOLUTION Provide notice of and hold a public hearing on annual charges and adopt a resolution directing the County Tax Collector-Treasurer to include local and regional sanitary sewer service charges on the tax roll. TIMING CONCERNS Special Assessments are due to the County Auditor-Controller in August to be included on the tax roll. RAMIFICATIONS OF NOT TAKING ACTION Approximately $311 million of sanitary sewer service charges would not be collected on the County tax roll. PRIOR COMMITTEE/BOARD ACTIONS Similar hearings are conducted annually to enable the Sanitation District to collect local and regional sanitary sewer service charges via special assessments on the tax roll. FINANCIAL CONSIDERATIONS Collecting sanitary sewer service charges on the County tax roll is the most efficient and cost-effective way of collecting these charges from property owners. ATTACHMENTS The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Resolution No. OCSD 19-11 • Prop 218 Certification of Assessment • "Sewer Service Charges for Collection on Tax Rolls for Fiscal Year 2019-20" filed electronically in the Clerk of the Board's office Page 2 of 2 RESOLUTION NO. OCSD 19-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING THE REPORT PROPOSING TO COLLECT SEWER SERVICE FEES ON THE TAX ROLL FOR FISCAL YEAR 2019/2020 WHEREAS, California Health and Safety Code sections 5473 et seq. authorize the Orange County Sanitation District (Sanitation District) to adopt an ordinance by a two-thirds vote of the Board of Directors of the Sanitation District to collect sewer service fees on the tax roll, in the same manner and at the same time as the general taxes; and WHEREAS, on March 28, 2018, the Board of Directors adopted Ordinance No. OCSD49, an ordinance establishing sanitary sewer service charges and allowing for the collection of such sanitary sewer service charges ('Regional Sewer Fees") on the tax roll, in the same manner, by the same persons, and at the same time as, together with, and not separate from, its general taxes; and WHEREAS, on May 22, 2013, the Board of Directors adopted Ordinance No. OCSD43, an ordinance establishing local sanitary sewer service charges for customers receiving local sanitary sewer service in former revenue area 7 and allowing for the collection of such local sanitary sewer service charges ("Local Sewer Fees") on the tax roll, in the same manner, by the same persons, and at the same time as, together with, and not separate from, its general taxes; and WHEREAS, pursuant to California Health and Safety Code sections 5473 et seq., a written report (the "Report"), a copy of which is filed electronically with the Clerk of the Board of Directors of the Sanitation District and by this reference incorporated herein, describing each parcel of real property subject to said Regional Sewer Fees and Local Sewer Fees, including the amount of said charges to be imposed thereon for Fiscal Year 2018-2019; and WHEREAS, the Sanitation District has caused notice of the filing of the Report to be published and has given notice of the hearing to consider such Report in accordance with California Health and Safety Code section 5473.1; and WHEREAS, the Board of Directors has heard and considered all objections and protests to the Report and has determined and hereby finds that protests have not been made by the owner of a majority of the separate parcels of property described in the Report; and WHEREAS, the Board of Directors has determined to adopt the Report and collect the Regional Sewer Fees and the Local Sewer Fees on the tax roll, which fees shall constitute a lien against the parcels or parcels of land described in the Report in accordance with California Health and Safety Code sections 5473 at. seq. 837661.1 OCSD 19-11-1 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The above recitals are true and correct. Section 2: The Report as presented is hereby adopted. Section 3: The Clerk of the Board, or the designee, is hereby directed to file a copy of the Report with the Orange County Auditor's Office, together with a statement endorsed thereon over his/her signature that the Report has been adopted by the Board of Directors of the Sanitation District and shall request that said Regional Sewer Fees and Local Sewer Fees be entered against the respective parcels of land as they appear on the current assessment roll pursuant to California Health and Safety Code sections 5473 et seq. Section 4: That pursuant to California Health & Safety Code Section 5473, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rates of sanitary sewer service charges, as established by Ordinance Nos. OCSD49 and OCSD43, are changed by increasing the annual rate. Section 5: That the General Manager, or his designee, is hereby authorized and directed to execute any necessary documents or agreements to affect the order set forth in Section 3 herein. PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Chairman of the Board of Directors ATTEST: Kelly A. Lore, MMC Clerk of the Board 837661.1 OCSD 19-11-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-11 was passed and adopted at a regular meeting of said Board on the 281h day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District 837661.1 OCSD 19-11-3 CERTIFICATION OF ASSESSMENT The Orange County Sanitation District hereby certifies that the special assessment(s) (see below)to be placed on the 2019-20 Secured Property Tax bill by the Orange County Sanitation District meets the requirements of Proposition 218 that added Articles XIIIC and XIIID to the State Constitution. The Orange County Sanitation District agrees to defend, indemnify and hold harmless the County of Orange, the Board of Supervisors, the Auditor-Controller, its officers and employees, from litigation over whether the requirements of Proposition 218 were met with respect to such assessment(s). If any judgment is entered against any indemnified party as a result of not meeting the requirements of Proposition 218 for such assessment(s), the Orange County Sanitation District agrees that County may offset the amount of any judgment paid by an indemnified party from any monies collected by County on Orange County Sanitation District behalf, including property taxes, special taxes, fees, or assessments. David John Shawver Date Board Chairman ATTEST: Kelly A. Lore, MIMIC Date Clerk of the Board 2019-20 Special Assessments and/or Direct Charges are listed below: County Type of Tax/ City/District Code Description 1. UA/090 Local Sewer Service Fee 2. U1/090 OCSD Sewer User Fee District 1 3. U21090 OCSD Sewer User Fee District 2 4. U3/090 OCSD Sewer User Fee District 3 5. U4/090 OCSD Sewer User Fee District 5 6. 1-15/090 OCSD Sewer User Fee District 6 7. U61090 OCSD Sewer User Fee District 7 8. U7/090 OCSD Sewer User Fee District 11 9. U8/090 OCSD Sewer User Fee District 13 STEERING COMMITTEE Meeing Date TOBE.Or .Dir. 08/28/19 08/28/19 AGENDA REPORT ItemNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: AMENDMENT TO BIG CANYON COUNTRY CLUB EASEMENT GENERAL MANAGER'S RECOMMENDATION Approve the Amendment to Easement between Orange County Sanitation District and Big Canyon Country Club to adjust the Orange County Sanitation District's easement to correspond with the new sewer location within the Big Canyon Country Club in the City of Newport Beach. BACKGROUND Orange County Sanitation District (Sanitation District) owns, operates, and maintains a trunk sewer that is rooted, in part, through the Big Canyon Country Club. Big Canyon Country Club planned to expand its maintenance facility and construct a larger maintenance building. The expansion placed the new building directly over the Sanitation District's trunk sewer and easement, rendering the facilities inaccessible. Through a sewer relocation agreement, Big Canyon Country Club designed and constructed a new sewer to Sanitation District's standards, relocating the sewer away from the new maintenance building. Big Canyon Country Club abandoned the existing sewer and granted a new sewer easement to correspond with the new sewer location, at no cost to the Sanitation District. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Protect Orange County Sanitation District assets • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The Sanitation District requires property rights in the form of an easement in order to access, operate, and maintain its newly relocated facilities. PROPOSED SOLUTION Approve the Amendment to Easement which provides property rights that correspond to the new sewer location. Page 1 of 2 TIMING CONCERNS The relocation of the sewer has been completed and the Sanitation District plans to initiate its preventative maintenance program on the newly relocated sewer. RAMIFICATIONS OF NOT TAKING ACTION Without the Amendment to Easement, the Sanitation District would not have adequate property rights to access, operate, and maintain its facilities in this location. PRIOR COMMITTEE/BOARD ACTIONS April 2017 - Approved Sewer Relocation Agreement with Big Canyon Country Club. ATTACHMENT The following aftachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.com) with the complete agenda package: Amendment to Easement Between Orange County Sanitation District and Big Canyon Country Club Page 2 of 2 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Orange County Sanitation District Attn:Kelly Lore,Clerk of the Board 10844 Ellis Avenue Fountain Valley,CA 92708 SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY Documentary Transfer Tax Exempt Under Revenue and Taxation Code Section 11922 Recording Fee Exempt Under Government Code Section 27383 Building Homes&Jobs Trust Fund Fee Exempt Under Government Code Section 27338.1(a)(2)(D) A.P.NO.442-032-70&442-032-58&442-030-00&442-032-60 OCSD Project# AMENDMENT TO EASEMENT BETWEEN ORANGE COUNTY SANITATION DISTRICT AND BIG CANYON COUNTRY CLUB This Amendment to Easement("Amendment")is made and entered into as of the day of , 2019,by and between ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District ("District") and BIG CANYON COUNTRY CLUB, a California Non-Profit Corporation ("BCCC"). District and BCCC are sometimes hereinafter individually referred to as"Party" and collectively referred to as "Parties" RECITALS WHEREAS, District is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code Sections 4700 et seq., providing for the ownership, operation and maintenance of wastewater collection, treatment and disposal facilities within Orange County, California; and WHEREAS, BCCC is a non-profit corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted; and WHEREAS,District owns,operates and maintains a 15-inch vitrified clay pipe trunk sewer and related appurtenances (the "Sewer") beneath property owned by BCCC (the "BCCC Property"); and WHEREAS, District is the grantee of an easement for the Sewer that was recorded as Instrument No. BK 9137 PG 952 in the Official Records of Orange County, CA ("Official Records")on October 22, 1969 (the"Original Easement"); and WHEREAS, on May 15, 2007, BCCC granted District an easement for relocation of another nearby portion of the same Sewer, which easement was recorded as Instrument No. 2007000315429 in the Official Records (the"2007 Easement"); and 1 1392387.2 WHEREAS,on June 13,2007,District quitclaimed the Original Easement in part to BCCC pursuant to a Quitclaim Deed recorded as Instrument No. 2007000376652 in the Official Records (the"2007 Partial Quitclaim"); and WHEREAS, the Sewer is presently located within the area described in the Original Easement, after giving effect to the 2007 Partial Quitclaim and the 2007 Easement, which area is referred to herein as the "Existing Easement Area;" and WHEREAS, pursuant to a Sewer Relocation Agreement between the Parties dated April 26, 2017, the Parties have agreed that the Existing Easement Area is to be amended to facilitate the partial relocation of an additional portion of the Sewer from one area of the BCCC Property to another nearby area of the BCCC Property although a portion of the Sewer may be abandoned in place; and WHEREAS,the purpose of this Amendment is to memorialize the partial relocation of the Sewer by deleting from the legal description of the Existing Easement Area the portion of the BCCC Property that will no longer be encumbered due to the relocation of the Sewer (the "New Quitclaim Area"),and to add to the legal description of the Existing Easement Area those portions of the BCCC Property that will become encumbered due to the relocation of the Sewer(the"New Easement Area"). AGREEMENT NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows: SECTION 1. RECITALS The Recitals above are deemed true and correct, are hereby incorporated in this Section as though fully set forth herein, and each Party to this Amendment acknowledges and agrees that they are bound by the same. SECTION 2 AMENDMENT OF LEGAL DESCRIPTION OF EXISTING EASEMENT The Parties hereby agree that the legal description of the Existing Easement Area shall be amended as set forth in Attachments 1 and 2, attached hereto and by this reference incorporated herein. Attachment 1 provides a legal description of the New Easement Area,while Attachment 2 provides a legal description of the New Quitclaim Area. SECTION 3 FULL FORCE AND EFFECT Except as amended by this Amendment, the Existing Easement shall remain in full force and effect. 2 1392387.2 SECTION 4. AGREEMENT EXECUTION AND AUTHORIZATION Each of the undersigned represents and warrants that they are duly authorized to execute and deliver this Amendment and that such execution is binding upon the entity on whose behalf they we executing this Amendment. IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed as of the day and year first above written. BCCC: Big Canyon Country Club, A California Non-Profit Corporation By: Charles H.Fedalen,Jr.,President By: David Voorhees,Assistant Secretary DISTRICT: Orange County Sanitation District, A County Sanitation District By: David Shawver,Board Chair By: Kelly Lore, Clerk of the Board APPROVED TO FORM: Bradley Hogin General Counsel Orange County Sanitation District 3 1392387.2 ATTACHMENT 1 LEGAL DESCRIPTION OF NEW EASEMENT AREA SEE ATTACHED 4 1392387.2 BEING THOSE PORTIONS OF BLOCK 56 OF IRVINE'S SUBDIVISION, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER THE MAP FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL "N': A STRIP OF LAND 25.00 FEET IN WIDTH, THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHERLY TERMINUS OF THAT CERTAIN LINE DESCRIBED IN THE GRANT OF EASEMENT RECORDED MAY 15, 2007 AS INSTRUMENT NO. 2007000315429, OFFICIAL RECORDS, AS L23 BEING NORTH 38"15'23" WEST 309.59 FEET; THENCE NORTH 28'02'23" WEST 65,40 FEET; THENCE NORTH 83°32'58" WEST 155.16 FEET; THENCE SOUTH 69025'35" WEST 84.50 FEET TO A POINT ON THE CENTERLINE OF THE EXISTING EASEMENT DESCRIBED AS PARCEL 1 IN BOOK 9137, PAGE 952, OFFICIAL RECORDS, SAID POINT BEING THE EASTERLY TERMINATION OF A LINE DESCRIBED AS NORTH 62"40'44" WEST 85.27 FEET, SAID POINT ALSO BEING THE POINT OF TERMINATION. PARCEL "Y': A STRIP OF LAND 15.00 FEET IN WIDTH FOR INGRESS AND EGRESS TO AND FROM ABOVE DESCRIBED PARCEL "N', THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS: COMMENCING AT THE MOST NORTHERLY CORNER OF TRACT NO. 7788, FILED IN BOOK 301, PAGES 10 THROUGH 14 INCLUSIVE, OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY RECORDER, SAID POINT ALSO BEING ON THE EASTERLY LINE OF JAMBOREE ROAD; THENCE NORTHERLY ALONG SAID EASTERLY LINE, NORTH 27-19-05P EAST 44.88 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 85"30'52" EAST 23.29 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING RADIUS OF 20.00 FEET; THENCE NORTHERLY ALONG SAID CURVE AN ARC DISTANCE OF 23,45 FEET THROUGH A CENTRAL ANGLE OF 67"10'00"; THENCE NORTH 27019'08" EAST 105.20 FEET TO A POINT ON THE CENTERLINE OF ABOVE DESCRIBED PARCEL "A", SAID POINT ALSO BEING THE POINT OF TERMINATION. AS SHOWN ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. IL LA NALLEryw9 Gy` PREPARED BY ME OR UNDER MY DIRECTION. A k 7914 ldMf2 A. WALDEN, P.LS. 7914 DATE pE UAV\E VLDEN & EXHIBIT "A" SSOCIATES LEGAL DESCRIPTION FOR ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No. 5$2-1 2552 WHITE ROAD,SUITE B-IRVINE,CA 92614-6236 W.O.No. 1140-458-6X2 Date 04-17-2019 (949)660-0110 FAX:660-0418 Engr.B.J.W. Chk'd.J.W. Sheet 1 of 1 O ' M�C3jQ 8q 4�39 43 00�7 g Q��ry 80 40 0 80 �`r PARCEL"A' 25'OCSD EASEMENT SCALE IN FEET 1 inch =80 ft. n 0 cNi h PORTION OF PARCEL 1 ry BK 9137 PG 952, O.R, �i i L3 TO BE QUITCLAIMED BY S2)C ,1� SEPARATE DOCUMENT s6, 7,5 7 - - - - - \ POINT OF N \\� \\ BEGINNING _PARCEL 2, BK 9137, ILl \ PARCEL A" PG 952, O.R. TO BE gyp, QUITCLAIMED BY L ryh•g0 C\, Imo AS op• SEPARATE DOCUMENT �ti• PARCEL"B" g0 N\ D ACCESS EASEMENT L7 EASEMENT � TRUE POINT PORT. BLK. 56 OF BEGINNING PARCEL"B" RVINE'S SUB \\ POINT OF M.M. 1/88 `;C7�JC- �� \•� COMMENCEMENT PARCEL"B" jR4Cj NO � 25.00' EASEMENT IN FAVOR LINE TABLE 14 OF OCSD PER GRANT OF EASEMENT RECORDED 05/15/07 \� LINE BEARING DISTANCE AS INST. NO. 2007-315429, O.R. Li S 85°52'23" W 21,80' A A ALL 'rG L2 N 28°02'23" W 65.40' 1-3 N 83°32'58' W 155.16' m o. 7914 1-4 S 69'25'35' W 84.50' 1-5 N 62040'44" W 151.41' �l9Jf OF a 1-6N 27°19'08" E 105.20' CURVE TABLE `L� 1-7 S 8Y30'52•' E 23.29' CURVE DELTA RADIUS LENGTH V LB N 2719'08" E 44.88' Cl 67°10'00" 20.00' 1 23.45'AjdUALDE VFWSON & EXHIBIT LEG SSOCIATES SKETCHORANGE C UNTY S ANY AION DI DESCRIPTION FOR ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSO PROJECT NO. 5-62-1 2552 WHITE ROAD,SUITE B-IRVINE,CA 92614-6236 W.O.No. 1140-458-6X2 Date 04-17-2019 (949)660-0110 FAX 660-0418 En r.B.J.W. CWd.J.W. Sheet 1 of 1 ATTACHMENT 2 LEGAL DESCRIPTION OF NEW QUITCLAIM AREA SEE ATTACHED 5 1392387.2 BEING THOSE PORTIONS OF BLOCK 56 OF IRVINE'S SUBDIVISION, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER THE MAP FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THAT PORTION OF THE 15 FOOT STRIP OF LAND DESCRIBED AS PARCEL 1 IN THE GRANT OF EASEMENT TO THE COUNTY SANITATION DISTRICT NO. 5 OF ORANGE COUNTY, CALIFORNIA, RECORDED NOVEMBER 14, 1969 IN BOOK 9137, PAGE 952 OF OFFICIAL RECORDS OF SAID COUNTY, LYING WESTERLY OF A LINE PARALLEL WITH AND 227.50 FEET EASTERLY OF THE EASTERLY LINE OF JAMBOREE ROAD AND LYING EASTERLY OF A LINE PARALLEL WITH AND 19.41 FEET EASTERLY OF SAID EASTERLY LINE OF JAMBOREE ROAD, TOGETHER WITH ALL OF PARCEL 2 OF SAID GRANT OF EASEMENT. AS SHOWN ON EXHIBIT "E" ATTACHED HERETO AND MADE A PART HEREOF. PREPARED BY ME OR UNDER MY DIRECTION. � / 4°jS\p`s� ALLEN�soP 04�-a A. WALDEN, P.L.S. 7914 DATE No. 7914 OF CAUYE�Q�\� LDEN & EXHIBIT "A" ASOCIATES LEGAL DESCRIPTION FOR QUITCLAIM OF ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No. 5-62-1 2552 WHITE ROAD,SUITE B-BNINE,CA 92614-6236 W.O.No. 1140-458-6X2 Date 04-17-2019 (949)660-0I10 FAX:66o-o418 Engr.B.J.W. CWd.J.W. Sheet 1 of 1 100 50 0 100 SCALE IN FEET 1 inch =100 ft. OQ� TRACT NO. 8444 M.M. 374/39-43 tV� � O� �Q EXISTING 15' EASEMENT o PORTION OF PARCEL 1, BK 9137 PG 952, O.R. �9 TO BE QUITCLAIMED HEREIN. h� \ PORT. BILK. 56 's. IRM IM. 1 E'S/88B EXISTING 15' EASEMENT \ PARCEL 2, BK 9137, O PG 952, O.R. TO BE QUITCLAIMED HEREIN. PORTION OF PARCEL 1, BK 9137 PG 952, O.R. QUITCLAIMED PER DEED RECORDED 06/13/07 TRACT NO. 7788 INST. NO. 2007-376652, O.R. M.M. 301/10-14 ANAL LAND Qom' 4`''SQ4V ALLfN,y-el` ye, n o No. 7914 G 9tf uF & EXHIBIT "B" ALDEN SSOCIATES SKETCH TO ACCOMPANYA LEGAL DESCRIPTION FOR QUITCLAIM OF ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No.5.62-1 2552 WIRTE ROAD,SUITE B•IRVINE,CA 92614-6236 W.O.No. 1140-458-6X2 Date 04-17-2019 (949)66MI10 FAX:660-0418 Engr.B.J.W. ChWd.J.W. Sheet 1 of 1 STEERING COMMITTEE Meeting Date TOBd.of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number 3 8 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan Wiborg, Director of Environmental Services SUBJECT: SETTLEMENT AGREEMENT WITH ASEPTIC TECHNOLOGY, LLC GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to execute a Settlement Agreement to settle industrial wastewater discharge enforcement matters with Aseptic Technology, LLC, a facility that discharged without a valid Orange County Sanitation District permit, for $185,000 plus applicable fees and interest, in a form approved by General Counsel. BACKGROUND Orange County Sanitation District's (Sanitation District) pretreatment program is responsible for controlling discharges to the sewer from industrial users in the Sanitation District's service area. Certain facilities are required to be issued wastewater discharge permits in accordance with the U.S. Clean Water Act and the Sanitation District's Wastewater Discharge Regulations (Ordinance No. OCSD-53). On June 18, 2019, the Sanitation District informed Aseptic Technology, LLC (Aseptic), an industrial discharger located in Yorba Linda, that the Sanitation District intended to initiate administrative proceedings against the company for non-compliance. This was based on the Sanitation District's determinations that for at least 37 days,from April 1, 2019 through June 17, 2019, Aseptic had discharged industrial wastewater without a valid discharge permit, in violation of the Ordinance. Aseptic has operated a beverage and dietary supplements manufacturing operation located at 24855 Corbit Place, Yorba Linda, CA, 92887, since 2013. In January 2016, due to a delinquency in making timely payments for user charges, the Sanitation District Board of Directors approved a 12-month payment agreement with Aseptic in the amount of $199,228.03. Aseptic made timely payments in accordance with the agreement and completed the 12-month schedule in January 2017. However, Aseptic Technology failed to make payments against quarterly invoices after January 2016; thus, necessitating a second payment agreement request in July 2017 for delinquent amounts totaling $451,161.54, which was paid in full. The second payment agreement also required Aseptic to remit timely payments against new obligations occurring during the term of the agreement. In January 2018, Aseptic requested a third payment agreement for delinquencies owed in the amount of $252,315.72, which was paid in full. This payment agreement request was authorized, and it required a letter of credit and a stipulation that current invoices were to be paid in a timely manner. As a result of the payment agreement, a typical two- Page 1 of 3 year Class 1 permit was not issued to Aseptic, and the permit was renewed for only three months at a time. Due to Aseptic's repeated failure to make timely payments pursuant to this payment agreement, the Sanitation District did not renew the permit which expired on March 31, 2019. However, Aseptic continued to discharge industrial wastewater to the sewer. An Order to Cease Discharge Without a Valid Permit was issued on April 11, 2019. The permit which expired March 31, 2019 was not renewed until May 6, 2019 when a payment was received — the facility had discharged to the Sanitation District without a permit throughout April and the first week of May — serious violations of the Sanitation District's Wastewater Discharge Regulations Ordinance. When the May 2019 permit expired on May 31, 2019, it was not renewed due to the facility's non-payment of user charges. Another Order to Cease Discharge Without a Valid Permit was issued on June 5, 2019. The Sanitation District met with Aseptic on June 18, 2019 and agreed to settle the violations associated with discharging without a permit. Pursuant to Government Code Sections 54739-54740.5 and Section 616 of the Sanitation District's Ordinance, the Sanitation District is authorized to impose administrative civil penalties up to $5,000 for each day of discharge in violation of any waste discharge limit or permit requirement imposed by the Sanitation District. Pursuant to Resolution No. OCSD 11-04, settlement negotiations then took place between the Sanitation District staff and Aseptic. As a result of these negotiations, Sanitation District staff recommended the settlement of all matters related to the enforcement action in return for payment by Aseptic of$185,000. This amount is based on the allowable penalties considering the magnitude, frequency, duration, intent, and impact of the violations. The staff is willing to accept $185,000 with required provisions for Aseptic to return to compliance. Aseptic is willing to settle on these terms. In accordance with Resolution No. OCSD 11-04, a committee consisting of the General Manager, or his designee, the Assistant General Manager/Director of Finance and Administrative Services, and the Director of Engineering has the authority to approve settlement of claims up to $100,000, and the Board of Directors have the authority to approve settlement of claims above $100,000. RELEVANT STANDARDS • OCSD Ordinance No. 48 Wastewater Discharge Regulations • CA Government Code Sections 54739-54740.5 • Resolution No. OCSD 11-04, Article IV PROBLEM Aseptic discharged without a valid Sanitation District permit and is therefore subject to administrative penalties. Aseptic's CEO expressed interest in reaching a settlement, however, any settlement agreement negotiated by the Sanitation District's staff committee that is above $100,000 must be approved by the Sanitation District's Board of Directors. Page 2 of 3 PROPOSED SOLUTION The Sanitation District staff recommend that the Board of Directors approve the Settlement Agreement. TIMING CONCERNS Aseptic has requested a 12-month payment schedule to pay the $185,000 in civil penalties (approximately $193,000 including interest and fees). A delay in approving the settlement agreement would delay the initiation of this payment schedule. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District would not be able to settle this particular enforcement matter as per staffs recommendation and the Aseptic CEO's request and would instead move to a costly and resource-intensive administrative hearing process. PRIOR COMMITTEE/BOARD ACTIONS December 2017/January 2018 - Approved the deferred payment agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges. In lieu of denying the request for a 311 deferred payment agreement, negotiated a resolution whereby the permit was extended for 90 days to allow Aseptic to become current with payments. July 2017 - Approved the deferred payment agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges, plus interest of 6.00% annum, with Aseptic Technology, in a form approved by General Counsel. January 2016 - Approved the deferred Payment Agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges, plus interest of 5.25% annum, with Aseptic Technology, in a form approved by General Counsel. FINANCIAL CONSIDERATIONS Aseptic is currently delinquent at this location for an approximate amount of$91,000. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: • Memorandum regarding the Settlement Agreement between Aseptic Technology, LLC and Orange County Sanitation District • Draft Settlement Agreement between Aseptic Technology, LLC and Orange County Sanitation District Page 3 of 3 Y • 1� `fl` Mf August 8, 2019 MEMORANDUM TO: File SUBJECT: Settlement Agreement between Aseptic Technology, LLC(Aseptic)and the Orange County Sanitation District(OCSD) On June 18. 201%OCSD informed Aseptic Technology, LLC(Aseptic)that OCSO intended to initiate administrative proceedings against Aseptic based on OCSD's determinations that for at least 37 days from April 1, 2019 through June 17,2019,Aseptic had discharged industrial wastewater without a valid discharge permit, in violation of OCSD's Wastewater Discharge Regulations (Ordinance). Aseptic has operated a beverage and dietary supplements manufacturing operation located at 24855 Corbit Place, Yorba Linda,CA, 92887, since 2013. Due to a delinquency in making timely payments for user charges, in January 2016, the OCSD Board of Directors approved a 12-month payment agreement with Aseptic in the amount of$199,228.03. Aseptic made timely payments in accordance with the agreement, and completed the 12-month schedule as of January 2017. However,Aseptic Technology failed to make payments against quarterly invoices after January 2016;thus necessitating a second payment agreement request in July 2017 for delinquent amounts totaling$451,161.54. The second payment agreement also required Aseptic to remit timely payments against new obligations occurring during the term of the agreement. In January of 2018,Aseptic requested a third payment agreement for delinquencies owed in the amount of$252,315.72. This payment agreement request was authorized,and it required a letter of credit and a stipulation that current invoices were to be paid in a timely manner. As a result of the payment agreement, a typical two-year Class 1 permit was not issued to Aseptic, and the permit was renewed for only three months-at-a-time. Due to Aseptic s repeated failure to make timely payments pursuant to this payment agreement, OCSD did not renew the permit which expired on March 31,2019. However,Aseptic continued to discharge industrial wastewater to the sewer. An Order to Cease Discharge Without a Valid Permit was issued on April 11,2019. The permit which expired March 31,2019 was not renewed until May 6,2019 when a payment was received—the facility had discharged to OCSD without a permit throughout April and the first week of May—serious violations of OCSD's Wastewater Discharge Regulations Ordinance. When the May 2019 permit expired on May 31, 2019, it was not renewed due to the facility's non-payment of user charges. Another Order to Cease Discharge Without a Valid Permit was issued on June 5, 2019. OCSD met with Aseptic on June 18, 2019, and agreed to settle the violations associated with discharging without a permit. Pursuant to Government Code Sections 54739-54740.5 and Section 616 of OCSD's Ordinance, OCSD is authorized to impose administrative civil penalties up to Five Thousand Dollars($5,000.00) for each day of discharge in violation of any waste discharge limit or permit requirement imposed by OCSD. Pursuant to Resolution No. 11-04, settlement negotiations then took place between OCSD staff and Aseptic. As a result of these negotiations, OCSD staff recommended the settlement of all matters related to the enforcement action in return for payment by Aseptic of One-hundred-and-Eighty- Five Thousand Dollars ($186,000.00). This amount is based on the allowable penalties considering the magnitude, frequency, duration, intent, and impact of the violations. The staff is willing to accept One-hundred-and-Eighty-Five Thousand Dollars ($186,000.00)with required provisions for Aseptic to return to compliance. Aseptic is willing to settle on these terms. In accordance with Resolution No. 11-04, a committee consisting of the General Manager, or his designee,the Director of Finance and Administrative Services, and the Director of Engineering has the authority to approve settlement of claims up to One-Hundred-Thousand Dollars($100,000.00), and the Board of Directors have the authority to approve settlement of claims above One-Hundred- Thousand Dollars($100,000.00). By this memorandum, the committee recommends the Settlement Agreement with Aseptic to be submitted for the Board of Directors' approval. Dated: By: (� Lan Wiborg, Director ofEnvironment6l Services Dated: D ' (S-a+U q By:-A 41" O Lorenzo Tyn&Assistamt General Manager & Di or of FiTl,�, and Administrative Services Dated: �-I ' W(9 By: Q Kathleen Millea,pector of Engineering Enforcement ID 20IM0030568 N61er- 1b sdWeptk WiMMSMaOlgerberl5ervicestSCP_SourceConlmiNnnittingW mriltee"N ticTechmIoULLCWwpticTmhnoinyLLCII- 5010021_S Ilkmm[Agreement-Memo_v2019080S.docs SETTLEMENT AGREEMENT THIS AGREEMENT,to be effective October—,2019, is entered into by and among the Orange County Sanitation District (hereinafter "OCSD"), a county sanitation district duly organized pursuant to Section 4700 at seq. of the Health &Safety Code of the State of California, Aseptic Technology, LLC (hereinafter "Aseptic"), and Joshua Cua, an individual and CEO of Aseptic. OCSD, Aseptic, and Joshua Cue are sometimes hereinafter collectively referred to as the "Parties". RECITALS A. Aseptic has operated a beverage and dietary supplements manufacturing facility located at 24855 Corbit Place, Yorba Linda, CA, 92887, since 2013. Permit No. 50-1-001 was issued to Aseptic in August 2013 for the discharge of wastewater associated with the facility operation. Due to a change in ownership, the permit was re- issued in January 2014 as Permit No. 50-1-002 (later re-listed as 1-501002 and hereinafter referred to as "Permit No. 1-501002" or "Permit"). For at least 37 days from April 1, 2019 to June 17, 2019, Aseptic discharged without a valid permit and was therefore in violation with OCSD's Wastewater Discharge Regulations Ordinance OCSD- 48 (hereinafter"the Ordinance" or"OCSD's Ordinance"). B. Joshua Cue is, and at all material times referred to herein has been, the Chief Executive Officer of Aseptic. In such capacity, Joshua Cue has been and is responsible for the daily business operations at Aseptic, including the proper disposal of wastewater generated from the manufacturing processes and all related reporting requirements in accordance with OCSD's Ordinance. As such, the Parties hereto acknowledge and agree that any acknowledgements, agreements, obligations and Page 1 of 12 14314 7.1 commitments attributable to Aseptic herein shall be deemed to be acknowledgements, agreements, obligations and commitments attributable to Joshua Cua as well. C. Between January 2016 and January 2018, Aseptic and OCSD entered into three separate payment agreements concerning Aseptic's repeated failure to make timely payment on various user charges and quarterly invoices as required under the Ordinance and Permit conditions. The contents and nature of these three agreements are summarized as follows: 1. In January 2016, the OCSD Board of Directors approved a payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2014-2015 (annual reconciliation) and the estimated sewer user charges for the first and second quarters of fiscal year 2015-2016. As of January 2016, Aseptic owed delinquent payments totaling $199.228.03. Following execution of the payment agreement, OCSD renewed the Permit, which had previously expired in December 2015, for an approximately two-year period (expiration date of December 31, 2017). 2. In July 2017, the OCSD Board of Directors approved a second payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2015-2016 (annual reconciliation), the estimated sewer user charges for the fourth quarter of fiscal year 2015-2016 and the first, second, and third quarter of fiscal year 2016-2017, as well as penalties and interest. As of July 2017, Aseptic owed delinquent payments totaling $451,161.54. This agreement required Aseptic to (i)make timely payments over a 12-month period for delinquent charges, and (ii) remit timely payments against new obligations, including user charges, during the term of the agreement Page 2 of 12 14314 7.1 3. In January 2018, the OCSD Board of Directors approved a third payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2016-2017 (annual reconciliation) and the estimated sewer user charges for the first quarter of fiscal year 2017-2018. As of January 2018, Aseptic owed delinquent payments totaling $252,315.72. This agreement required Aseptic to (i) make timely payments for delinquent charges, (ii) issue a letter of credit in favor of OCSD, and (iii) stipulate that Aseptic would make payments on future invoices in a timely manner. D. On December 31, 2017, the Permit expired. Due to Aseptic's repeated failure to make timely payments pursuant to the Permit conditions, Ordinance, and the payment agreements, OCSD did not renew the Permit for the typical two-year period. Instead, the Permit was renewed in March 2018 for less than one month following the execution of the third payment agreement. The Permit, which expired on March 31, 2018, was then periodically renewed for only three months at a time. Therefore, the Permit was renewed for three-month periods in April 2018, July 2018, October 2018, and January 2019. E. Between April 2018 and January 2019, Aseptic failed to make timely payment on two separate invoices: the fourth quarter invoice issued on June 30, 2018, and the second quarter invoice issued on December 31, 2018. F. When the January 2019 Permit expired on March 31, 2019, OCSD did not renew the Permit due to Aseptic's repeated failure to promptly pay user charges as required under the Permit conditions, the Ordinance, and prior payment agreements Page 3 of 12 1431a zi between OCSD and Aseptic. G. Despite the expiration of the Permit on March 31, 2019, Aseptic continued to discharge industrial wastewater to OCSD facilities in violation of the Ordinance and federal and state laws. On April 11, 2019, OCSD issued Aseptic an Order to Cease Discharge Without a Valid Permit. H. On May 6, 2019, OCSD received Aseptic's delinquent payment on the second quarter invoice issued on December 31, 2018. OCSD subsequently renewed the Permit on May 6, 2019,for a twenty-six(26)day period. The renewed Permit expired on May 31, 2019. When the May 2019 Permit expired on May 31, 2019, OCSD did not renew the Permit due to Aseptic's repeated failure to promptly pay user charges. I. Despite the expiration of the Permit on May 31, 2019, Aseptic continued to discharge industrial wastewater to OCSD facilities in violation of the Ordinance and state and federal laws. On June 5, 2019, OCSD issued Aseptic an Order to Cease Discharge Without a Valid Permit. Between April 1, 2019 and June 17, 2019, Aseptic illegally discharged industrial wastewater without a valid permit for at least thirty-seven (37)days. J. On June 18, 2019, OCSD met with Aseptic and agreed to settle the violations referenced herein associated with discharging without a permit. K. All the actions or omissions described in Recitals G and I are significant violations of Permit No. 1-501002, OCSD's Ordinance, and state and federal laws. Pursuant to Government Code Sections 54739 and 54740.5 and Section 616 of OCSD's Page 4 of 12 14314 7.1 Ordinance, OCSD has the authority to institute administrative enforcement proceedings and impose civil penalties on Aseptic for violations of the Ordinance and the terms of Aseptic's Permit No. 1-501002. Pursuant to this authority, OCSD is authorized to impose penalties up to Five-Thousand Dollars ($5,000.00) per violation for each day of discharge in violation of any Ordinance or wastewater discharge limit imposed by OCSD, up to Three-Thousand Dollars ($3,000.00)for each day for failing or refusing to timely comply with any compliance schedules established by OCSD, and up to Two-Thousand Dollars ($2,000.00)for each day for failing or refusing to furnish technical, monitoring reports, or any other required documents. G. During a compliance meeting on June 18, 2019 at OCSD's offices, OCSD met with Joshua Cue of Aseptic to discuss the aforementioned violations and the resolution of the non-compliance issues. During this compliance meeting, OCSD informed Aseptic of its intention to issue an administrative complaint. Aseptic expressed interest in settling the matters with OCSD. H. The Parties now intend to resolve and settle all matters arising from the alleged violations occurring from April 1, 2019 through June 17, 2019, to avoid further administrative proceedings and the issuance of an Administrative Complaint against Joshua Cue and Aseptic, and the institution of any litigation that may follow based upon such matters. NOW, THEREFORE, in consideration of the facts recited above and the covenants, conditions and promises set forth below, the Parties hereby agree as follows: Page 5 of 12 1a31a 7.1 AGREEMENT 1. Aseptic shall pay to OCSD the total sum of One Hundred and Eighty-Five Thousand dollars ($185,000.00) in settlement of all claims, actions, or charges that OCSD may have against Aseptic and Joshua Cue relating to any violations of the Ordinance which may have occurred from April 1, 2019 through June 17, 2019. This Settlement includes penalties for violating conditions set forth in the Ordinance. Aseptic shall make payment(s) in accordance with the following schedule: Due Date Installment Principal Interest AFeen Payment 11/1/2019 1 $14,893.87 $1,156.25 $25.00 $16,075.12 12/1/2019 2 $14,986.96 $1,063.16 $25.00 $16,075.12 1/1/2020 3 $15,080.63 $969.49 $25.00 $16,075.12 2/1/2020 4 $15,174.89 $875.24 $25.00 $16,075.13 3/1/2020 5 $15,269.72 $780.40 $25.00 $16,075.12 4/1/2020 6 $15,365.16 $684.96 $25.00 $16,075.12 5/1/2020 7 $15,461.19 $588.93 $25.00 $16,075.12 6/1/2020 8 $15,557.83 $492.30 $25.00 $16,075.13 7/1/2020 9 $15,655.06 $395.06 $25.00 $16,075.12 8/1/2020 10 $15,752.90 $297.22 $25.00 $16,075.12 9/1/2020 11 $15,851.36 $198.76 $25.00 $16,075.12 10/1/20201 12 1 $15,950.43 1 $99.69 1 $25.00 1 $16,075.12 The monthly amount includes a $25 administrative handling fee, plus a 7.5% interest rate assessed each month to the principal balance. The first payment of $16,075.12 is due on or before November 1. 2019. (a) The payments pursuant to this Settlement Agreement shall be made payable by cashier or bank-issued check to Orange County Sanitation District, and delivered to the Administrative Offices of OCSD located at: 10844 Ellis Avenue Fountain Valley, CA 92708 (b) Payments must be received by OCSD prior to 4:00 p.m. on the days listed Page 6 of 12 14314471 in the above schedule. 2. As part of this Settlement Agreement, Aseptic is required to complete all necessary actions to immediately cease discharging without a permit and attain compliance with all permit conditions and OCSD Ordinances as explained by OCSD in the Orders to Cease Discharge issued on April 11, 2019 and June 5, 2019. 3. Extraordinary Cost. Aseptic shall be responsible for payment of all reasonably necessary costs incurred by OCSD for sampling, testing, administration, and enforcement procedures, as deemed appropriate by OCSD, that exceed the ordinary cost of routine sampling and inspection and/or any routine activities. Routine sampling and inspection shall be defined as sampling, inspection, and monitoring activities conducted by OCSD on a monthly and quarterly basis. Reasonable costs may include, but are not limited to, engineering, inspection, sampling, and legal costs that may be incurred in order to enforce the provisions of this Settlement Agreement, OCSD's Ordinance, or Permit No. 1-501002. 4. In consideration of all of the foregoing, and except as otherwise set forth in this Settlement Agreement,the Parties do hereby, and for each of themselves,their heirs, executors, administrators, board members, successors, assigns, agents, subsidiaries, affiliates, servants, directors, officers, shareholders, attorneys, employees and partners, mutually release, acquit, and forever discharge each of the other parties hereto and his, her, their, or its heirs, executors, administrators, board members, successors, subsidiaries, affiliates, attorneys, agents, servants, directors, officers, shareholders, employees, partners, or representatives, and assigns (collectively, "Releasees") from any and all rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims whatsoever that may be asserted against any other Releasee by reason of any matter occurring, performed, created, happening, Page 7 of 12 14314 7.1 arising out of, or connected with Aseptic's violations of the Permit No. 1-501002 and OCSD's Ordinance from April 1, 2019 to June 17, 2019 and the OCSD's investigation of all such allegations and discharges. 5. The undersigned agree that they will forever refrain and forbear from commencing, instituting, or prosecuting any lawsuit, action or administrative proceeding against each other based on, arising out of, or in any way connected with Aseptic's violations of the Permit No. 1-501002 and OCSD's Ordinance from April 1, 2019 to June 17, 2019, and OCSD's investigation of all such allegations and discharges. 6. Notwithstanding the foregoing and any other provision of this Settlement Agreement, W OCSD subsequently initiates either administrative or judicial enforcement proceedings against Aseptic and Joshua Cue for any future violations of any OCSD ordinance or permit condition, the alleged violations contained herein shall be deemed to have occurred. In such circumstances, no civil penalties shall be subsequently awarded to OCSD for the violations occurring on or before June 17, 2019, but such violations may be considered in determining the appropriate sanction (including administrative penalties), if any, to issue as a result of any future violation(s) of the terms of OCSD ordinances, permit conditions, this Settlement Agreement, and/or any administrative order or requirement issued by OCSD. 7. Nothing herein shall be construed to limit the authority or ability of the Orange County Sanitation District to initiate legal or administrative proceedings against Aseptic and Joshua Cue for any violation of local, state, or federal wastewater discharge regulations occurring on or after June 18, 2019, or to enforce the terms of this Settlement Agreement or Permit No. 1-501002. 8. The undersigned represent and warrant to Releasees that each of the undersigned has not heretofore assigned or transferred, or purported to assign or Page 8 of 12 1431449.1 transfer, to any person, firm, corporation, association, or entity any of the rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims whatsoever referred to herein, and each of the undersigned agrees to indemnify and hold harmless the other Releasee against, without limitation, any and all rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims, including attorney fees, arising out or connected with any such assignment, transfer, or purported assignment or transfer. 9. The undersigned acknowledge that each has read the Settlement Agreement in full and understands and voluntarily consents and agrees to each and every provision contained herein. 10. Each of the parties agrees to bear all of its own attorney fees and costs arising out of, connected with, or relating to the subject matter of this Settlement Agreement and hereby specifically and expressly waives all claims, rights, and interest of every kind or nature whatsoever, whether provided for by contract, statute, or otherwise, for attorney fees and/or costs connected with, arising out of, and/or incurred in connection with the facts, claims and/or rights released in and by this Settlement Agreement except as expressly provided in Paragraph 12 below. 10. The undersigned further declare and represent that no promise, inducement, or agreement not herein expressed has been made to the undersigned; that this Settlement Agreement contains the entire agreement between the parties hereto; that terms of this Settlement Agreement are contractual and note mere recital; and that these terms are the result of negotiations between the undersigned. 11. Any formal notice, demand or request provided for in this Agreement, or made in connection with this Agreement, shall be in writing and shall be deemed to be properly given or made if(a) personally delivered, or(b)sent by registered mail (postage Page 9 of 12 rasraazr prepaid), to the persons specified: To Aseptic Technology, LLC: Joshua Cua, CEO Aseptic Technology, LLC 24855 Corbit Place Yorba Linda, CA 92887 To Joshua Cua: Joshua Cua, CEO c/o Aseptic Technology, LLC 24855 Corbit Place Yorba Linda, CA 92887 To OCSD: James D. Herberg, General Manager Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-8127 With Copy To: Bradley R. Hogin, Esq. Woodruff, Spradlin & Smart 555 Anton Blvd., #1200 Costa Mesa, CA 92626-7670 12. Should litigation be initiated by either of the parties hereto to enforce the terms of this Settlement Agreement or the rights and duties of the parties in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its attorney fees and costs in the litigation,which sum shall be determined by the court in such litigation or in a separate action brought for that purpose. 13. The persons executing this Settlement Agreement represent and warrant to the Releasees that the execution and performance of the terms of this Settlement Agreement have been duly authorized by all requisite corporation, partnership, individual, municipal, or other entity requirements and that the undersigned have the right, power, legal capacity, and authority to execute and enter into this Agreement. 14. This Settlement Agreement shall be construed under and interpreted in Page 10 of 12 r4sr4azr accordance with the laws of the State of California and as if drafted by both parties hereto. 15. This Settlement Agreement may be modified only by execution of a subsequent written agreement between the parties. No oral modification of the terms set forth herein shall be valid. 16. The undersigned acknowledge that each has been represented by counsel of their own choice in connection with the preparation and execution of this Settlement Agreement. The undersigned acknowledge and represent that each has read the Settlement Agreement in full and understands and voluntarily consents and agrees to each and every provision contained herein. 17. The recitals above are hereby incorporated into this section as though fully set forth herein and each parry acknowledges and agrees that such party is bound, for purposes of this Agreement, by the same. Page 11 of 12 1431a 7.1 IN WITNESS WHEREOF. the Parties have entered into this Settlement Agreement as of the date first set forth above. Aseptic Technology, LLC Dated: By: Joshua Cua, CEO Joshua Cua, an individual Dated: By: Joshua Cua, CEO ORANGE COUNTY SANITATION DISTRICT Dated: By: James D. Herberg, General Manager Approved as to form: Dated: By: Bradley R. Hogin, General Counsel Page 12 of 12 Enforcement ID 2019-00030568 hup://am/sitesN.ar ublisheM.o A,.&SP2o10/08.Adininist tive Complaint-Ams is/08,03-Aseptic TecMoloUSettlementAgeeraent.doa 143144V.1 STEERING COMMITTEE Meeting Date TOBE.Or Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number 4 9 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER'S FISCAL YEAR 2019-20 DRAFT WORK PLAN GENERAL MANAGER'S RECOMMENDATION Receive and File the General Manager's Fiscal Year 2019-2020 Draft Work Plan. BACKGROUND Each year, the General Manager prepares a work plan of activities supporting the Orange County Sanitation District's strategic goals and initiatives to be accomplished during the fiscal year. The draft work plan is being submitted to the Steering Committee for review and input from the Directors. Afinal work plan will be submitted to the Steering Committee and Board of Directors for approval in September. RELEVANT STANDARDS • Sustain 1, 5, 20-year planning horizons • 24/7/365 treatment plant reliability • Negotiate fair and equitable labor agreements • Commitment to safety& reducing risk in all operations • Meet volume and water quality needs for the GW RS • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PRIOR COMMITTEE/BOARD ACTIONS The General Manager provides his draft and final work plan annually and provides updates accordingly. ADDITIONAL INFORMATION The General Manager's work plan includes goals for the 2019-2020 fiscal year. The work plan has five areas of focus which include: Safety and Security, Succession Planning, Resource Recovery, Reliability, and Operational Optimization. FINANCIAL CONSIDERATIONS All items included in the General Manager's work plan are budgeted in the FY 2019-2020 Budget. Page 1 d 2 ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: General Manager's Fiscal Year 2019-2020 Proposed Work Plan Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Memorandum August 21, 2019 TO: Chairman and Members of the Board of Directors FROM: James D. Herberg General Manager SUBJECT: General Manager's Fiscal Year 2019-20 Proposed Work Plan I am pleased to present my proposed Fiscal Year 2019-20 work plan. The work plan has nineteen goals organized under five focus areas including safety and security, succession planning, resource recovery, reliability, and operational optimization. This work plan will be reviewed with the Steering Committee and Board of Directors in August 2019 and a mid-year update will be provided in January 2020. 1. Safety and Security • Emergency Preparedness — Develop and conduct an external emergency response and recovery drill by June 30, 2020 that tests the Integrated Emergency Response Plan (IERP). • Safety Engineering Solutions — Complete the six of the remaining eight Safety Improvement Construction Projects by June 30, 2020. • Voluntary Protection Plan (VPP) Certification — Apply for the VPP certification for Plant No. 1 by June 30, 2020. • Physical Security Plan—Complete the development and implementation of a Physical Security Plan by June 30, 2020. • Cyber Security Plan—Complete the development and implementation of a Cyber Security Plan by June 30, 2020. 2. Succession Planning Leadership Development — Provide at least two specialized trainings tailored to the Supervisory Level and one for the EMT/ Managers by June 30, 2020. 3. Resource Recovery • Groundwater Replenishment System (GWRS) Final Expansion — Meet the following milestones to support the final expansion of GWRS: o Advertise for Construction of Project P2-122, Headworks Modifications at Plant No. 2 for GWRS Expansion by January 31, 2020. o Issue Construction Contract Notice to Proceed for Project P2-122, Headworks Modifications at Plant No. 2 for GWRS Expansion by June 30, 2020. • Emerging Contaminants — Work with industry, academic, and agency partners to develop science-based regulations and an adaptive plan by June 30, 2020, to address the potential impact of PFAS to OCSD. • Food Waste Digestion Pricing Policy—Present a draft policy and pricing plan to the Board of Directors by June 30, 2020. 4. Reliability • Asset Management Plan — Develop an Asset Management Plan by December 31, 2019 that includes an inventory of critical assets for each process area and the collection system; an evaluation of their condition and performance; and an implementation plan to maintain, rehabilitate, and replace these assets to meet the required levels of service at the lowest life cycle cost and at an acceptable level of risk. Page 2 • Central Generation Engines — Implement an in-house heavy mechanical maintenance team and award a contract by December 31,2019,to overhaul two Central Generation Engines. • Pump Station Bypass Exercises— Bypass pump two Pump Stations to prove emergency readiness and use the exercise to do critical valve and electrical maintenance at those Pump Stations by June 30, 2020. 5. Operational Optimization • OCSD Headquarters Building—Advertise for Construction for Headquarters Complex Site Preparation, Contract No. P1-128C by February 29, 2020. Obtain City of Fountain Valley approvals for the Headquarters Building by June 30, 2020. • Document Management — Complete Records Management and Trusted System Needs Assessment by October 31, 2019. • Communications Audit — Complete the audit and provide a report to the Legislative and Public Affairs Committee by March 30, 2020. • Capital Project Delivery— Complete a formal design review framework by June 30, 2020. Complete a framework for regular updates of engineering policies and procedures, design guidelines and engineering standards by June 30, 2020. • Solids Handling Optimization — Complete commissioning and optimize performance of new solids handling facilities at each plant by December 31, 2019. • Strategic Plan —Complete new Strategic Plan for adoption by the Board of Directors by November 30, 2019. • Two Year Budget — Complete new two-year budget for adoption by the Board of Directors on June 24, 2020. Page 3 STEERING COMMITTEE Melting Dat2 TOBE.Of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number 8 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: ELIMINATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) AND NET PENSION LIABILITY (NPL) WITHIN THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM GENERAL MANAGER'S RECOMMENDATION Direct staff to pay off the following amounts in the Orange County Sanitation District's defined pension plan administered by the Orange County Employees' Retirement System (OCERS) in an amount not to exceed $38 million: • Unfunded Actuarial Accrued Liability(UAAL)in the amount of$9 million for pension benefits • Net Pension Liability (NPL) in the amount of $29 million for deferred investment loss BACKGROUND As of July 1, 2014,the Orange County Sanitation District(Sanitation District)had an UAAL in its defined pension plan administered by OCERS of $194 million. The Sanitation District made advanced payments to eliminate the UAAL and maintain a fully funded plan. In 2017, the Sanitation District had a credit with OCERS. However, for the year ended December 31, 2018, OCERS' actuarial assumed rate of return was 7.00 percent, but actual investment returns were a loss of approximately two percent. The Sanitation District's allocated share of this shortfall resulted in a UAAL and NPL of$9 million and $29 million, respectively. Over the last 20 years, OCERS' annual rate of return exceeded the Sanitation District's 70%of the time. Due to their ability to invest in the equity market, staff believes that, over the long-term, OCERS will consistently outperform the Sanitation District's return on investments. Therefore, staff recommends reducing its investment portfolio to fund its current total UAAL and NPL of approximately$38 million. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Resolution No. OCSD 18-23 — Sanitation District's adopted Investment Policy - prudent investor standard Page 1 of 2 PROBLEM The return on investments by OCERS was less than planned within its actuarial assumptions, thereby creating a new Sanitation District UAAL ($9 million) and NPL ($29 million) for the OCERS year-ended December 31, 2018 of approximately$38 million. The Sanitation District could amortize the payment of this$38 million UAAL and NPL over a long period of time, such as 10 to 20 years; however, in doing so, the Sanitation District would have to make up the anticipated returns these funds would be earning by OCERS over this repayment period. By paying these funds off now, the Sanitation District will forgo future anticipated interest expense of approximately 7.00% a year. PROPOSED SOLUTION Direct staff to pay off the Sanitation District's total UAAL and NPL estimated at$38 million. TIMING CONCERNS As soon as the UAAL and NPL payoff is made, the annual 7.00% interest rate applied against these funds will cease. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will have to pay off its UAAL and NPL through a 10-to-20-year amortization scheduled at a rate of 7.00%, far below its ability to produce returns on its investment portfolio. PRIOR COMMITTEE/BOARD ACTIONS October 2016 - Board approved a $40 million paydown of the UAAL with OCERS. May 2015 - Board approved the FY 2015-16 Budget Update, which included a line item for the pay down of$50 million in UAAL with OCERS. July 2014 - Board action approved $125 million pay down of UAAL with OCERS. FINANCIAL CONSIDERATIONS Payment of the Unfunded Actuarial Accrued Liability (UAAL) and Net Pension Liability (NPL) will result in the reduction of the Sanitation District reserves by $38 million. It is anticipated that as OCERS' actual investment returns improve, most, if not all, of these funds will be recouped as a credit against future pension expenditures. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 2 of 2 BOARD OF DIRECTORS Meeting Date TOBE.Of Dir. -- 08/28/19 AGENDA REPORT ItemNumber Item Number 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: TREASURER'S REPORT FOR THE FOURTH QUARTER ENDED JUNE 30, 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Orange County Sanitation District Fourth Quarter Treasurer's Report for the period ended June 30, 2019. BACKGROUND The Quarterly Treasurer's Report contains financial portfolio performance with respect to the Orange County Sanitation District's (Sanitation District)funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the U.S. and global economic outlook from the Sanitation District's investment manager, Chandler Asset Management. Quarterly Treasurer's Reports are customarily presented first to the Administration Committee prior to being placed on the Board agenda. However, as the Administration Committee is not scheduled in August, the Sanitation District's practice has been to present the Fourth Quarter Treasurer's Report directly to the Board. RELEVANT STANDARDS • Quarterly financial reporting ADDITIONAL INFORMATION The Quarterly Treasurer's Report for the Fourth Quarter Ended June 30, 2019 is being submitted in accordance with the Sanitation District's investment policy, which requires the report be submitted to the governing body following the end of each quarter and includes the following information: • Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy; and the time- weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months, and since inception compared to the Benchmark returns for the same periods: Page 1 of 3 Portfolio Performance Summary Quarter Ended June 30,2019 Liquid Operating Monies(%) Long-Term Operating Monies(%) Total Rate of Total Rate of Return Benchmark Return Benchmark 3 Months 0.69 0.64 1.70 1.85 6 Months 1.32 1.24 3.23 3.30 9 Months 1.90 1.81 4.60 4.92 12 Months 2.43 2.31 4.87 5.13 Annualized Since inception 30 Nov 2014 1.05 0.95 1.74 1.71 • A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report). • Cost and market values of the portfolios: Liquid Oper. Long-Term Cost $163.1 M $547.6 M Market Value $164.5 M $558.1 M • Modified duration of the portfolio compared to Benchmark: Liquid Oper. Long-Term District Policy < 0.50 < 5.00 Benchmark 0.24 2.43 Portfolio 0.16 2.54 • Dollar change in value of the portfolio for a one-percent (1%) change in interest rates: Liquid Operating - $388,145 Long-Term - $13,540,487 • None of the portfolios are currently invested in reverse repurchase agreements. • The percent of the Liquid Operating Monies portfolio maturing within 90 days: 59.3% • Average portfolio credit quality: Liquid Operating -AA+/Aaa Long-Term -AA/Aa1 • Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities: Liquid Portfolio- no exceptions Long-Term Portfolio- Percent of portfolio- 0.56% Page 2 of 3 Cost Maturity Date Moody S&P Fitch SLMA 2008-9 A $ 13,957.68 4/25/2023 Baa3 A B AMRESCO Residential Securities 1999-1 $ 100,432.85 6/25/2029 Not Rated A+ BBB Morgan Stanley Note $3,200,848.00 7/28/2021 A3 BBB+ A • All investments are in compliance with this policy and the California Government Code, exceptfor the following Lehman Brother holdings that the Sanitation District is pursuing collection through the bankruptcy court: Lehman Brothers Note-Defaulted $ 600,000 par value purchased 9/19/2008 Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008 • Sufficient funds are available for the Sanitation District to meet its operating expenditure requirements for the next six months. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Fourth Quarter Treasurer's Report for the Three Months Ended June 30, 2019 (separate electronic file) Page 3 d 3 STEERING COMMITTEE Meeting Date TOBE.Or Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number s 12 Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE SUPERVISOR & PROFESSIONAL GROUPS CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff tofinalize and sign the Memoranda of Understanding (MOUs)between Orange County Sanitation District and the two (2) Supervisory and Professional Management Group bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (Sanitation District) and the Supervisor Group and Professional Group bargaining units that became effective on July 1, 2016 expired on June 30, 2019. The Supervisory and Professional Management Group (SPMG) submitted its initial proposals for successor MOU(s)on January 28, 2019. SPMG and the Sanitation District have met and conferred in good faith twelve (12) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items proposed, except for salary and wages, had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to SPMG, including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counter proposal to SPMG on July 10, 2019. SPMG's membership ratified the proposal by majority vote on July 23, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements Page 1 d 4 Maintain positive employer-employee relations • Provide professional growth and development PROBLEM The MOUs between the Sanitation District and the Supervisor Group and Professional Group bargaining units that became effective on July 1, 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to SPMG on July 10, 2019, including three-year contracts with a 3% salary increase for each year of the contract. SPMG distributed the proposals to their membership for voting and SPMG's membership ratified the proposals by majority vote on July 23, 2019. RAMIFICATIONS OF NOT TAKING ACTION • Labor instability • Possible impacts to morale Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with SPMG from the Steering Committee and the Board of Directors. The SPMG meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019 - Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION The SPMG is the recognized employee organization certified to provide exclusive representation overwages, hours of work, and otherterms and conditions of employment for exempt employees in the Supervisor Group and Professional Group bargaining units. There are 267 exempt employees represented by the SPMG. The Supervisor Group consists of 60 employees and the Professional Group consists of 207 employees. Employees in these groups are assigned to classifications that perform frontline supervisory duties and program-related development, implementation, and analytical duties associated with supporting the collection, treatment, and recycling of wastewater. Some supervisory classifications are assigned to a 365-days per year, 7-days per week, 24-hours per day operation. Based on Board direction, the Sanitation District issued a counter proposal to SPMG on July 10, 2019, including three-year contracts with a 3% salary increase for each year of the contract. SPMG distributed the proposals to their membership for voting and SPMG's membership ratified the proposals by majority vote on July 23, 2019. Full redlined versions of each SPMG MOU are attached for review. A summary of the key changes to the MOUs are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022. 3. Article 13, Salary Adjustments and Compensation: Salary: Year 1 — 3% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3% Salary Increase, effective the first pay period of July 2020; Year 3 — 3% Salary Increase, effective the first pay period of July 2021. 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 3151 of prior year. 5. Article 17, Hours of Work: updated language to reflect that Operations Supervisors and Chief Plant Operators receive a 30-minute paid lunch and are to remain onsite and perform work as necessary. 6. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA)for all employees. 7. Article 26, Shift Differential: Shift Differential increased from $2.50 per hour to $3.00 per hour. 8. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. 9. Article 46, Dues Deductions: New language to establish information provided by OCSD to SPMG regarding members, remittance of dues; article title changed to "New Employee Orientation and Dues Deductions". Page 3 of 4 10.Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 25— Retirement Article 27— Leave-of-Absence With Pay Article 28— Leave-of-Absence Without Pay Appendix A— Medical Insurance Plan Design Components CEQA N/A FINANCIAL CONSIDERATIONS The total cost is $7,086,027 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 19-08 • Supervisor MOU (redlined version) • Professional MOU (reclined version) Page 4 of 4 RESOLUTION NO. OCSD 19-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE SUPERVISORY AND PROFESSIONAL MANAGEMENT GROUP, FOR FISCAL YEARS 2019/2020, 2020/2021 &2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the Supervisory and Professional Management Group (referred hereinafter as "SPMG"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOU"). WHEREAS, prior to the expiration of the 2016 MOUs on June 30, 2019, SPMG requested to meet and confer regard successor MOUs. WHEREAS, pursuant to Government Code Section 3500, at seq., representatives of SPMG have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS,the parties have modified the 2019 MOUs between the District and SPMG to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOUs has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOUs. • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOUs: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2— 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3— 3.0% Salary Increase, effective the first pay period of July 2021. • Holidays has been modified as set forth below and as reflected in Article 16 of the MOUs: o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31st of prior year. • Hours of Work has been modified as set forth below and as reflected in Article 17 of the MOUs: o Updated language to reflect that Operations Supervisors and Chief Plant Operators receive a 30-minute paid lunch and are to remain onsite and perform work as necessary. (Supervisor Group MOU only) OCSD 19-08-1 • Insurance has been modified as set forth below and as reflected in Article 20 of the MOUS: o Reopener to discuss establishment of Health Retirement Account(HRA)for all employees. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOUS: o Housekeeping changes to remove outdated language. • Shift Differential has been modified as set forth below and as reflected in Article 26 of the MOUs: o Shift Differential increased from $2.50 per hour to $3.00 per hour. • Leave-of-Absence With Pa v has been modified asset forth below and as reflected in Article 27 of the MOUs: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pa v has been modified asset forth below and as reflected in Article 28 of the MOUs: o Housekeeping changes. • Dues Deductions has been modified as set forth below and as reflected in Article 46 of the MOUs: o New language to establish information provided by OCSD to SPMG regarding members, remittance of dues; article title changed to "New Employee Orientation and Dues Deductions". • Resignation has been modified as set forth below and as reflected in Article 51 of the MOUS: o The District may accept any verbal or written resignation at anytime and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. • Medical Insurance Plan Design Components have been modified as set forth below and as reflected in Appendix A of the MOUs: o Housekeeping changes. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and SPMG for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. OCSD 19-08-2 Section 2. The General Manager is authorized to sign the Memoranda of Understanding with SPMG for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-08-3 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-08 was passed and adopted at a regular meeting of said Board on the 28th day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 281h day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-08-4 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP July 1, 20196 through June 30, 202239 SW1R,]OR M31 TABLE OF CONTENTS ARTICLEI. RECOGNITION.............................................................................................................................I ARTICLE 2. DURATION....................................................................................................................................1 ARTICLE 3. SUCCESSOR AGREEMENT........................................................................................................I ARTICLE 4. GROUP ACCESS.........................................................................................................................I ARTICLE5. GROUP RIGHTS...........................................................................................................................2 ARTICLE 6. DISTRICT RIGHTS.......................................................................................................................2 ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT.................................................................................2 ARTICLE 8. SMOKE�FREE WORK ENVIRONMENT......................................................................................2 ARTICLE9. -SAFETY........................................................................................................................................3 ARTICLE 10. DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11. GRIEVANCE PROCEDURE........................................................................................................A 11.43.1. A3 1 STt,p 1.....................................................................................................................................................5 " *2 STEP 5 11A3A. STSI,3.....................................................................................................................................................5 11.43.5. STEP 4.....................................................................................................................................................5 ARTICLE 12. .PROBLEM SOLVING PROCEDURE...........................................................................................6 ARTICLE13. -SALARY ADJUSTMENTS AND COMPENSATION....................................................................6 13.3. MESITPAY ..................................................................................................................7 13.4. PERFORMANCE MANAGEMENT PROGRAM...................................................................................................7 13.5. DEVELOPMENTPAY.. ............. 7 13.84. SALARY RANGE Awus ENTG..................................................................................................................7 I&M. INVESTMENT INCENTIVE SALARY(IIS1........................................................................................................8 ARTICLE 14. SEVERANCE PAY........................................................................................................................a ARTICLE 15. DEFERRED COMPENSATION....................................................................................................a ARTICLE 16. HOLIDAYS....................................................................................................................................8 162 FLOATING HOLIDAY ....................................................................................................................9 ARTICLE IT. -HOURS OF WORK....................................................................................................................10 ARTICLE18. .... ...................................................................................................................................10 ARTICLE19. ................................................................................................................................................... 10 ARTICLE 20. -INSURANCE..............................................................................................................................10 20.3. MEDICAL INSURANCE .......................... 10 M.N. GROUP INSURANCE PREMIUMS................................................................................................................11 2(1.27. LIFE INsuRANc ......................................................................................................................................11 2010 SHORT TERM DISABILITY............._.................._.......... .........._........._......._........._............11 20.119. LONG TERM DISABILITY...........................................................................................................................11 20.120. DENTAL MURANO ................................................................................................................................11 nA34. VISION INSURANCE ............. 11 MA4 RETIMING EMPLOYEES ......................................................................................................12 nA52. HEALTH RETIREMENT ACCOUNT REOPENERREPR I,Plim Ilg ...........................................................12 Page 11 8S7142.1 Oa 31 ARTICLE 21. -REIMBURSEMENT ACCOUNT.................................................................................................12 211. MEDICAL REIMBURSEMENT ACCOUNT........... .......................... -12 213. DEPENDENT CARE ASSISTANCE ACCOUNT ...................................................................12 ARTICLE22. -EXTRAORDINARY SERVICES COMPENSATION..................................................................12 ARTICLE 23. -PROBATIONARY PERIOD.......................................................................................................13 ARTICLE 24. -PROMOTIONS..... .......................................................................................................14 ARTICLE 25. -RETIREMENT............................................................................................................................14 25.1.1. EMPLOYEES HiREDPRimToSEPTEmBER21,1979.................................................................................14 25.1.2. EMPLOYEES HIRED ON DRAFTER SEPTEMBER 21,1979MD BEFORE OCTOBER 1.2010- ...........14 25.1.3. EMPLOYEES HIRED ON CRAFTED OCTOBER 1.2010 AND BEFOREJANUPAY 1.2013..................................14 25.1.43. muARyl.Nl ............................................................16J.5 ARTICLE 26. -SHIFT DIFFERENTIAL..............................................................................................................15 ARTICLE 27. -LEAVEFOF,ABSENCE WITH PAY............................................................................................15 27.1. VACATION LEAVE ........................................................................................................15 27.2. SICK LEAVE .......................... -16 27.3. JURY DUTY LEAVE ............. -18 27.4. WTNESE LEAVE......................................................................................................................................18 27.5. MIIJT Y LEAVE... .......................... 19 27.6. BEREAVEMENT LEAVE.............................................................................................................................19 27.7. ADMINisrESTS,RLDMiC ...................................................................................................19 ARTICLE 28. .LEAVELOFABSENCE WITHOUT PAY....................................................................................20 28.3. SUBSTITUTION OF PAID UE .................................................................................................................20 28.4. PERMISSIBLE USES.................................................................................................................................21 28.5. GENERAL PROVIS ONSLBI............................................................................................................2221 D.. ...................................................................23 197 MY ARTICLE 29. .CLASSIFICATION STUDIES.....................................................................................................a 291 Y-RATING...............................................................................................................................................24 ARTICLE 30. DRIVER'S LICENSE..................................................................................................................25 ARTICLE 31. LAYOFF PROCEDURE.............................................................................................................26 ARTICLE32. LIGHT DUTY..............................................................................................................................25 ARTICLE 33. MEDICAL EXAMINATION.........................................................................................................26 ARTICLE 34. -MILEAGE ALLOWANCE...........................................................................................................26 ARTICLE 35. -ACTING PAY.............................................................................................................................26 ARTICLE36. ......................................................................................................................................................26 ARTICLE 37. PERSONNEL FILES..................................................................................................................26 ARTICLE 38. BULLETIN BOARDS.................................................................................................................26 ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS........................................................27 ARTICLE 40. USE OF DISTRICT FACILITIES................................................................................................27 ARTICLE 41. SCOPE OF BARGAINING.........................................................................................................27 ARTICLE 42. IMPASSE PROCEDURES.........................................................................................................27 Rage III 89 142.1 OKN001 422. IMPASSE PROCEDURES. .......................... ..........27 ARTICLE 43. -SEVERMILITY.........................................................................................................................28 ARTICLE". -UNIFORMS................................................................................................................................28 ARTICLE 45. -SUBSTANCE MUSE POLICY.................................................................................................28 452 DEPARTMENT OF TRANSPORTATION(DOT)REGULATIONS....................................................................... 26 45.32. DISTRICTS SUBSTANCE ABUSE POLICY ........................28 ARTICLE 46. NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS...............................................29 ARTICLE 47. MAINTENANCE OF MEMBERSHIP.........................................................................................30 ARTICLE". PEACEFUL RESOLUTION OF DISPUTES..............................................................................30 ARTICLE49. ......................................................................................................................................................30 ARTICLE 0. WORKPLACE VIOLENCE AND WEAPONS POLICY.............................................................30 ARTICLE 51. RESIGNATION..........................................................................................................................30 ARTICLE52. ......................................................................................................................................................30 SIGNATUREPAGE..............................................................................................................................................31 APPENDIXA ...................................................................................................................................................324 Page Iv 89 142.1 OR 31 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP In accordance with the previsions of Calffomia Government Code Sections 3500,at seq.,and Resolution No.99-24 of the Joint Boards of Directors,the District's authorized representatives have met and conferred in good faith with representatives ofthe Supervisor Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Supervisor Group accept these terms and contlilions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by the Supervisor Group as set forth in this Agreement. ARTICLE 1.-RECOGNITION 1A. This Agreement,effective July 1,20196.is entered into between the Orange County Sanitation District,referred to hereinafter as the"District',and the Supervisor Group, refered to hereinafter as'Group",as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms and conditions of employment. ARTICLE 2. -DURATION 2.1. This Agreement will be binding on the District and the Group when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,2022b1). Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions(EERR),Resolution No. OCSD 99-24. ARTICLE 3.-SUCCESSOR AGREEMENT 31. The Group will submit in writing he initial proposal for a successor agreement prior to the expiration data of this Agreement. ARTICLE 4. -GROUP ACCESS 4.1. A Group representative will have access to the District facilities during normal wonting hours for the purpose of assisting Group employees in processing grievances or Investigating matters arising out of the application of provisions of this Agreement. 4.2. The Group will provide the Human Resources Department or designee,with a list of Representatives who are authorized to request access under this article,and will notify the Director of Human Resources,or designee,of any changes in that list. 4.3. Group access will not unreasonably interfere with District operations,or with the work of employees in any manner.The District reserves the right to restrict access in certain areas designated confidential or secure. Page 1 of 332 ARTICLE 5. -GROUP RIGHTS 5A. The Group may designate up to five(5)employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary.An alternate representative may be designated to act in the absence of the regular representative.Employees not listed on the roster of representatives provided to the District by the Group may not act as representatives. 5.2. Representatives will not perform non work-related duties on work time without the prior approval of their immediate supervisor.Neither the District nor the Group will interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 8.-DISTRICT RIGHTS 6.1. District Inherent rights,powers,functions,duties,responsibilities and authority,related to a managerial or administrative character are reserved to the District in its exercise of management decision-making,except as specifcally modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of Its constituent departments,commissions and boards;set standards of service, determine the procedures and standards of selection for employment and promotion; establish and Implement performance standards;direct Its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted; determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission In emergencies;and exercise complete control and discretion over its organumdon and the technology of performing its work. 6.2. District retains all authority and rights conferred on it by law,or other legal sources, except to the extant that such authority is explicitly waived by the express terms of this agreement.Distinct exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude the Group from appealing or meeting and conferring Me practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1. There will b r no unlawful discrimination in the application of Me provisions of this Agreement with regard to actual or Perceived race,color,religion,national origin, ancestry,sex,gender,gander identity,gander expression,sexual orientation,age, physical or mental disability,medical condition,genetic information,marital status,or military or veteran status,or any other lawfully protected class.To the extent required by law or by Me District's rules or regulations,this provision of the Agreement will b, applied to all members of the Group without regard to any protected classification. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 8.1. The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards.In view of the hazards associated with smoking and the potentially harmful effect it has on Me health and well being of Page 2 of 332 District employees and their families,smoking and the use of tobacco(cigarettes, cigars,ecigareftes r'vaping"i and related tobacco products and technologies)is not acceptable within District facilities,and may occur only In areas posted for smoking. ARTICLE 9.-SAFETY 9.1. It is the duty of the District to provide and maintain a safe place of employment.The Group will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe praotices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. ARTICLE 10. -DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for lust cause with respect to any employee in the Group:verbal reprimand;written reprimand; suspension without pey;reduction in pay;demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee inklated by the District for Just cause. 10.3. A Notice of Intent is not required when the disciplinary action Involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay,reduction in pay,demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail,which will be the date of issuance. 10S. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action; (3)a copy of the charges and materials upon which the action is based;and, (4) a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline,or to a District management representative with authority to make an effective recommendation on the proposed action;the person to whom any response must be directed,and the fact that such response must be received within ton(10)business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10A. 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 author ty to make an effective recommendation on the proposed action. After review of an employee's response,the District will notify the employee in writing of the action that will be taken. Such action may not involve discipline more severe than that described In the Notice of Intent;however,the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered In the District's Personnel Policies&Procedures Manual. Page 3 of 332 10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the Influence of drugs or alcohol,theft or misappropriation of District property or funds, fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post-disciplinary hearing.The request must be submitted to the Assistant General Manager or designee,within ten T0)business days following Me effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day of the suspension).The Director of Human Resources,or designee,will schedule a past disciplinary hearing with the General Manager or a hearing officer selected by the General Manager.The hearing officer may not be an employee of Me District.The hearing officer will provide a written, advisory decision to the General Manager.The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the Issuance of a further Notice of Intent.The decision of the General Manager will be final.If the hearing officer upholds the disciplinary action,the employee will pay the full cost and expenses of the hearing officer. 10.9. All disciplinary action documentation,except verbal reprimand documentation,will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisors employee files. Supervisors shall Inform management staff when a verbal reprimand is to be implemented. If after twenty-four(24)months from implementation there have been no recurrences of similar incidents,the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24)months subsequent to the date of the issuance,provided that there has been no recumance of a similar incident during the period.If the Human Resources Department agrees to remove the written reprimand documentation from an employee's personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reolassRcetions,"bumping' associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11. -GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought to the attention of the District by an individual employee within the Group or by Me Group.The District may not bring a grievance through this Page 4 of 332 procedure.Grievances brought by two(2)or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the Group,be consolidated for the purposes of this procedure. 113. Employees are encouraged prior to bringing forward a formal grievance,to discuss the Issue with the Director of Human Resources,or designee,In an effort to bring about an informal resolution. 11.4. An employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. The District will provide a copy of all written grievance settlements to the Group. Any reference to days in this article implies business days. 11.4.1. Step 1. An employee who has a complaint will attempt to resolve it with his/her immediate supervisor within tan(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event.The supervisor will attempt to resolve the issues surrounding the complaint,and respond to the employee within ten(10)days. 11.4.2. Step 2. If the grievance is not settled informally at Step 1,it may be submitted in writing to the employee's Department Head,or designee.This request for formal review must be presented on a forth provided by the District within ten(10)days of the conclusion of Step 1. A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee. The written grievance must: 11.4.2.1. Identify the specific management ad to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested;and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten(10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the Assistant General Manager,or designee,for review and written response.The request for formal review must be presented on a forth provided by the District within ten(10)days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above.A copy of each wriden communication on a grievance shall be filed with the Assistant General Manager,or designee.The Assistant General Manager,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3,it may be presented to the General Manager within ten(10)days from the date the Step 3 finding was issues The General Manager,or designee,will respond Page 5 of 332 in writing to the employee within fifteen(15)days after the date the grievance is receivetl.The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance.If an employee is represented by the Group, the Group may designate one(1)employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility.Absence from work will be approved only if it does not cause disrupfion to District operations.However,ff the time requested cannot be provided,an alternate time will be arranged, 11.6. Failure of a supervisor,Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it will be considered resolved on the basis of the preceding response.The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists.Time limits may also be extended at any step upon mutual agreement of the parties.The District agrees to meet facnto- face with the employee at each step of the grievance,procedure at the request of the employee. 113. Resolution may be agreed upon at any stage of the grievance process.However,the Group will be not'rfied prior to the resolution of any formal grievance matter. ARTICLE 12. -PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve Issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grevable with their supervisor as soon as possible. The supervisor will review the s0 iafion or decision, and provide a written response within five(5)days from the date they were nofified of the problem. 12.3. If the problem is not resolved to the employee's satisfacton,the employee may file a written statement concerning the problem with the Human Resources Department within ten(10)days of receipt of the supervisors decision. Upon request of either party,a meeting will be held to define issues and establish the remedies sought The employee will be provided a written response within ten(10)days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Human Resources Department Is final. ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION 13A. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity H active payroll status becomes effective after the date of implementation. Page 6 of 332 13.3. Merits 13.3.1. Step Increase Pav-Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2. Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review an the yearend appraisal or who are an a PIP at the time of the year-end appraisal penad will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program:The performance management program includes two(2)rating categories(proficient and needs improvement)for performance appraisals. 13.5. Development Pav-Employees under this Agreement are eligible for Development Pay. Development Pay Is a non-base building pay type that will be distributed In a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education "a ,-Eligible employees who obtain or who have obtained a graduate degree of approved subjects at an accredited college or university will receive $75.00 per pay period. 13.5.2. Certification/License-Erect--�thii hnitita/ E&, sEligible employees who obtain or who have obtained a District approved certification or license will receive$15.24 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. 13.5.3. Grade V Pav-Employees who receive Grade V pay in accordance with the applicable District policy are ineligible to receive Development Pay for their Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possess a Grade V Certificate and do not meet the criteria for Grade V Pay are eligible for Development Pay In accordance with the Development Pay Program Guidelines. 13.6. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.7. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed, The return of Development Pay will not be retroective. 13.8. Salary Range Adjustments 13.8.1. Effective the first pay period In July 20195,employees under this Agreement will receive salary range adjustments at a fiat rate of Page 7 of 332 3_0 %. 13.8.2. Effective the first pay period in July 2020 ,employees under this Agreement will receive salary range adjustments at a flat rate of 3_0 -A. 13.8.3. Effective the first pay period in July 202148,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02 5%. 13.9. Investment Incentive Salary UIS) 13.9.1. An additional amount of 4%of base salary will be paid to employees hired or promoted into the Group on or before October 16,2003 in a lump-sum amount each pay period.This provision continues to make employees whole as a result of the Ventura decision.The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In auction,employees hired or promoted Into the Group on or before October 16,2003 will be paid$1250 annually or$48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual,refirement,and termination leave payouts for eligible employees. ARTICLE 14. -SEVERANCE PAY 14.1. Employees are expected to give a minimum of two(2)weeks asitten notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee will be notified in writing two(2)weeks prior to the effadive separation date.The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2. Employees in limited term or part-time positions,probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE IS. -DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan, subject to IRS requirements,and In accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. -HOLIDAYS 16A. The days listed below are observed by the District as holidays.Employees will receive holiday pay If their entire scheduled work shifts Immediately preceding and following the holiday are in a paid payroll status,meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the Page 8 of 332 employee will be paid at the employee's regular rate of pay for the holiday,and will also receive pay at the rate of one and one hag(1.5)times hislher regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday Pay,if reguested by December 31 of the prior year on the Holiday Como Cashout Farm. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance In excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed ffty(50). Holidays New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2. Floating Holiday: Employees may elect one(1)day during each year as a"Floating Holiday"New employees shall be granted a"Floating Holiday"on a pro data basis in the first calendar year of service per the following table: Hire Date Percent 1^Quarter(January-March) 100% 2r^Quarter(ApHIJude) 75% 3' Quarter(July-September) 50% 4e Quarter(October-Decambed 0% 16.3. Employees must use the"Floating Holiday'within the year it is granted.Every effort will be made to approve an employee's request for a'Floating Holiday'00 providing sufficient notice is given. 16.4. Pad-time employees are eligible for holiday benefits on a pro-data basis as set forth in applicable District Policy. Page 9 of 332 ARTICLE 17. -HOURS OF WORK 17A. The work schedule for full-time employees will be eighty(80)hours per biweekly pay period,normally scheduled in shifts of five(5)eight 8 hour days each week,four(4) nines-hour days each week and one(1)additional 8-hour day on alternate weeks (9/80),four(4)ten 10-hour days each week(8180),or three(3)twelve 12-hour days each week and one(1)additional 8-hour day on alternate weeks(7/80).However, with the approval of the employee's supervise,employees may be allowed to flex their schedule within the pay period provided that the business needs,work flow,and customer service needs of the District are met. 17.1.1. Operations Supervisors and Chief Plant Operators will receive Paid thirty(30) minute meal Periods during which time Operations Supervisors and Chief Plant Operators will remain on District Premises and perform any work as necessary. 17.2. The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee,which may be waived by the employee per written request. 17.2.1. The 30,day notice will not be applicable if the change is a result of a reasonable accommodation. ARTICLE 18. (This article intensionally left blank) ARTICLE 19. (This article intentionally left blank) ARTICLE 20. -INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance coverage will become effective on the that day of the month following date of hire,regardless of hire date.An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan,a Preferred Provider Organization(PPO)medical insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular.full-time employees The District will contribute 90%of employee only premiums for the HMO medical health plans and 80%of employee only premiums for the PPO medical plan. The District will contribute 00%of the employee+l dependant and full family premiums for the HMO or PPO medical plans. Anychange in insurance rates will be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District sponsored health insurance plan,the parties agree to meet and caller as to changes in the plan. 20.5. Regular.part-time employees Part-time employees are eligible for medical insurance benefits on a pro-rata basis as set forth in the applicable District Policy. Page 10 of 332 20.6. The HDHP will be accompanied by a Health Savings Account(HSA)to pay for qualified medical expenses.OCSD will use a portion of the cost savings in premiums to fund the HSA accounts during active employment only.The HSA will be funded with the savings generated annually by calculating the difference between the District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles,not to exceed the District's aforementioned annual premium cost savings. 20.7. The District may reopen negotiations at any time during the term of this agreement 0 address the impact of the Affordable Care Act(ACA). 20.8. Group Insurance Premiums 20.8.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9. Life Insurance 20.9.1. The District will pay the full premium for$50,000 ten life Insurance on each employee. 20.10. Short Term Disability 20.10.1. The District will provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California's State Disability Insurance(SDI)program for up to twenty-tax(26)weeks following a fourteen(14)calendar day waking period. 20.11. Long Term Disability 20.11.1. The DiaMCl will provide a non-wori<relatetl,long-term disability indemnity plan that pays two-thirds of the employee's rate of pay In effect at the time of such disability,not to exceed$5,000 per month,following a 90- day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.11.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment Is specified. The specified periods and additional information about coverage is included in OCSD's long term disability plan contract accessible on the intronst. 20.11.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay.Employees may not receive short-tern and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Tenn Disability may purchase such coverage at their own expense. 20.12. Dental Insurance 20.12.1. The District will contribute 80%of employee only and full family premiums for dental insurance. 20.13. Vision Insurance Page 11 of 332 20.13.1. The District will provitle a vision insurance plan for regular,full-time employees and eligible dependents.Part-time employees are eligible for vision insurence benefits on a pro-rela basis as set forth in applicable District Policy. 20.14. Retiring Employees 20.14.1. The District will pay,for employees hired prior to July 1,1988,two and one-half(2.5)months'premium for each year of continuous service of a handng employee towards the premium costs of coverage for the employee and eligible dependents under the District medical plan. 20.14.2. In the event the District adds additional optional insurance plans,the District's share of the premium will be the some as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the Districts share of the premium will be the same as for existing insurence plans as set forth above. 20.14.3. The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for eveif juear of continuous service up tug (gmmente4[B51r Marc antl=Gteam-We tlN col maximum of 25 years or$250 per month. dlawae rile at Ine bole,but we nave upaelea wa larguege (M1ouee keegngj to align xiln OCGD's moment practice.Are 20.15. Health Retirement Account(HRA)Reopener: The DisaictandMe Gm Degree Wu OK w th this update? W reopen this Agreement to discuss HRA Plan design and funding mechanism options. including District andfor employee funding,understanding the District is not maxima any commitment to District funding. ARTICLE 21. -REIMBURSEMENT ACCOUNT 21.1. Section 125 of the Internal Revenue Code pemnits employees to use pre-tax dollars to pay for their portion of the cost of bemefRs under the Plan through salary redirection arrangements.The options available under the flexible benefits program are listed below.This is a brief overview of the different options.For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department. 21.2. Medical Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himsefflh mseff for payment of health care costs not otherwise covered by hismer medical insurance. 21.3. Dependent Cara Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himselffherself for child care expenses or day care for a disabled dependent ARTICLE 22.-EXTRAORDINARY SERVICES COMPENSATION 22.1. Employees in the Group are exempt from the overtime provisions of the Fair Labor Page 12 of 332 Standards Act. However,when services are required beyond what is normally expected of a position in this Group,employees will be eligible to receive additional compensation,as defined herein,for performing extraordinary services. Extraordinary services shall be defined as: 22A.1. The General Manager declares an emergency.A declaration of an emergency is at the sole discretion of Me General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11—Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.2. The General Manager determines Mat there exists a critical event.A critical event is defined as work of a prolonged nature;involving non. emergency related services;major special projects;or when a substantial effort must be expended to meet a compliance date or scheduled deadline.The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement,including Article 11— Grievance Procedure or Article 12—Problem Solving Procedure. 221.3. Written approval of a critical event must be obtained In advance of Me work to be performed.The authorization shall set forth the work to be accomplished,the anticipated start and end date and those employees expected to participate In Me work.The Department Head,or designee, will be responsible for determining the actual start and end data as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a critical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event,independent from which Department they are assigned. 22.2.2. For emergencies,compensation will occur for all hours outside the employee's regularly scheduled work shift.For critical events, compensation will occur for all hours after an initial 10 hours of uncompensated time has elapsed. 22.2.3. Employees in the Operations Supervisor classification will receive additional compensated at one and one-half(1.5)times their regular rate of pay.All other classifications shall receive straight time compensation. ARTICLE 23.-PROBATIONARY PERIOD 23.1. All new employees serve an initial probationary period beginning with the date of hire and extending to at least Me first day of the pay period following six months of employment without a break in service.Extended absence without pay,short-term and long-term disability and Workers Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may Page 13 of 332 be released during his/her Probationary Pend at the discretion of the District without recourse to the Grievance Procedure. 23.3. Employees who are reassigned or laterally transferred will serve a probationary period of six months. The"probationary period"shall not divest an employee of his.Mer property right in his/her former position. Rejection of probation during this period shall result In the employee reverting to his/her former assignment and/or position. ARTICLE 24.-PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position will be filled as an open or promotional recruitment.Whenever the District intends to fill a position by promotion,the District will post the opportunity for a minimum of ten(10) business days. Employees must apply during the period of posting. Notices will be posted on the District's intranet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective dale of Me promotion. 24.3. At any time during Me promotional probationary period,an employee may be returned to hlslhar previous position.The promotional probation period may be extended by mutual agreement between the employee and District management for up to ninety(90)days. 24A. If an employee is promoted during his/her initial probationary period,the period will be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.5. Promoted employees will receive the equivalent of a one 11)step increase in pay,not to exceed Me top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25.-RETIREMENT 25A. The District will continue participation in the Orange County Employees Retirement System(OCERS),wherein all full-time employees and part-time employees scheduled to work twenty(20)hours per week or more are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired prior to September 211979: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12)months average earnings,past and future service. 21 1 1 1 718 11 ad Y'i'4 2ERS her these employees whe elected da make-one to nl�Ell the plan G program 25.1.2. Employees hired n or after September 21 17 n October i 2010:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive Page 14 of 332 thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.3. Employees hired on or after October 1.2010 and before January 1. 2013: The District will contract with OCERS to provide the 1.667%@ 37.5 benefit formula(Plan B)based on the highest consecutive thirty-six (36)months average earnings,past and future service. 25.1.3.1. The District will pay 0%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.4. Employees hired on or after January 1.2013:The District will contract with OCERS tu provide the 2.5%@ 67 benefit formula(Plan U-PEPRA) based on the highest consecutive thirty-sin(36)months average earnings,past and future service. 25.1.4.1. The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2. All monies actually contributed into the retirement system by an employee will be deducted!from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of 50%or more of the hours between 6:00 p.m.and 6:W a.m.and who actually work that shift will receive a shift differential of$32.050 per hour. ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in acoordance with the following schedule: Years of Santos Hours43hveekly Hours-Annual In years 0 through 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6A6 168 In year 17 6.77 176 In Year lB ].0 184 In year l9 ].39 192 Page 15 of 332 Years of Service HoursZhiseekly Hours-Annual In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable District Policy. 27.1.3. Vacat an lea,is beg ns after an employee has completed twenty six(26) Vacation leave may only be utiI¢ed in increments of one- u�half hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid-leave payroll status. 27.1.6. When unpaid absences occur,vacation leave accruals will be appl led by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or not. 27.1.5. Annual Payoff.Employees may have a maximum accumulation of two hundred(200)hours as of the Iasi day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred(200)hours,it must be used prior to said December date,all other remaining hours in excess of two hundred(200) will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2. Sick Leave 27.2.1. Definition. Sick leave is an Insurance or protection provided by Me District to be grantetl to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury, or pregnancy:to attend to the Illness or Injury of a family member as hereinafter defined:or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a).Temporary employees shall recalve sick leave benefits as required by State law. 27.2.2. Method. -Sick Leave Accrual. Full-time employees hired prior to November 27,1981,accrue paid sick leave M the rate of three and one- half(3.5)hours for each biweekly pay Period of continuous service; ninety-one(91)hours Per year. Full-time employees hired on or after November 27,1981.accrue paid sick leave M the rate of three(3.0) hours for each biweekly pay period of continuous service;(seventy-eight (78)hours Par year),beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-rats basis as set forth in applicable District Policy. 27.2.4. When unpaid absences occur,sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paitl within the pay period,and is applicable to all types of leave,whether Page 16 of 3%1 legally protected or not. 27.2.5. Annual Pavo . Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay nimod ends inef October at their current hourly rate according to the following payoff schedule. Accrual Sick Laave Hours Rate of Rayon 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule, Employees who retire or decease with twenty(20) years or more of service will be paid at the one hundred percent(100%) rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to: 27.2.7.1. Absence due to illness,injury or pregnancy of an employee. 27.2.7.2. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. 27.2.7.3. Absence for the care of the employee's tether,father-in-law, mother,mother-in-law,brother,sister,husband,wife, domestic partner,child,child of domestic partner, grandparent,grandchild,legal guardian,or family member with whom the employee resides. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,forties purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8. General Provisions. To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account will be one- u�half(0.25)hour increments. 27.2.9. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege.For absences of ten(10)consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. Upon return to wok,a written doctor's release must be submitted to the Human Resources Department.For absences of one(1)or more working days In an unpaid status,a request for leave and a medical statement,on prescribed fors,stating expected date of return must be Page 17 of 3341 submitted to the Human Resources Department. 27.2.10. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"),the certification requirement will comply with the provisions of these Acts. 27211, Sick Leave Incentive Plan.If the average sick leave usage of employees in the Group is under forty(40)hours per year,calculated on annualized actual time off from October to October,based on the last pay periods ending in October,exclusive of catastrophic illness or injury requiring absence in excess of two hundred(200)hours or industrial injury leave in excess of eighty(80)hours,the annual payoff for unused sick leave will be as follows: Accrued Sick Leave Hours Rate of Payoff 0-100 15% 101-240 45% 241—560 60% Over 560(mandatory) 75% 27.3. Jury Duty Leave 27.3.1. Any full-time,including probationary,employee who is called for jury duty Will be entitled to his/her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2. Prior to jury duty service,employees must complete an online time off request form.To be entitled to receive regular pay for such jury leave, employees must report for work during their regularly scheduled work shift when they are relieved from jury duty service,unless there is less than one-half(%)of a regular shift remaining.Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3. An employee serving jury duty must obtain an attends nce slip from the court to be submitted to hislber supervisor with his/her timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4. Witness Leave 27.4.1. Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his/her presence as a witness,except in a matter wherein miens is named as a defendant or plaintiff or as an expert witness,will, upon approval of an online time off request,be entitled the time necessary to comply with such subpoena. An employee's regular pay will be reduced by the amount of witness leave pay received,exclusive of mileage. 27.4.2. An employee so subpoenaed must submit a copy of the subpoena to Page 18 of 332 hislher supervisor and complete an online time off request form in order to be eligible for pay for such absence.To be entited to receive regular pay for such witness leave,the employee must report for work at the District for gme not actually retained on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.5. Military Leave 27.5.1. A request for military leave will be made upon leave-of-absence fortes approved by the Human Resources Department and will state the date when it is desired to begin the leave-IN-absence and the date of anticipated return.A copy of the orders requiring such military service will be submitted with the request. 27.5.2. Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave.In general,current law provides that an employee having one 11)year or more service with a public entity Is entitled to military leave with pay not exceeding thirty(30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment.An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use vacation,administrative leave,or personal leave time to attend the scheduled reserve drill periods or to perform other inactive dull period obligations.Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6. Bereavement Leave 27.6.1. Any full-time employee,whether probationary or regular,shall receive a maximum of thirty-six(36)hours off with pay for the death or funeral of an Immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father,step-father,father-in- law,mother,stepmother,mother-in-law,brother,step-brother,sister, step-sister,husband,wife,domestic partner,biological child,adopted child,stepchild,child of a domestic partner,grandchild,grandparent, faster parent,foster child,legal guardian,or any family member with whom the employee resides.Employees must submft an online time off request farm far approval by their supervisor. Employees may be required to fund sh evidence satisfactory to the District of the tarn Iv member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six(6) months is not arievable or otherwise subject to appeal. 27.6.2. Part-time employees are eligible for bereavement leave on a pro-rata basis as set forth in applicable District Policy. 27.7. Administrative Leave Page 19 of 332 27.7.1. Effective the first pay period in July,regular full-time employees in the Group shall be granted forty(40)hours of Administrative Leave. Employees who are hired or promoted into the Group shall be granted Administrative Leave on a pro-data basis per the following schedule: Hire Date Percent July-September 100% October-December 75% January-March 50% April-June 0% 2]].2, Administrative Leave will be administered in accordance with the following guidelines: 2]72.1. Administrative Leave may be used in one-quarter-(0.25)hour increments. 27.7.2.2. Any unused Administrative Leave,within the fiscal year granted,will not be camed over to the next fiscal year. 27.7.2.3. My unused Administrative Leave,within the fiscal year granted,Is not subject to cash out or eligible for any mandatory payout. 27.7.2.4. Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. ARTICLE 28.—LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not eceive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)IFMLA(Family and Medical Leave Adf/CFRA (California Family Rights Act)for their own serious health condition. 28.2. Using the prescribed forms,approved by Distinct management,any full-time, Including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250)hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed Waive(12)weeks in a rolling twelve(12)month calendar period.A"rolling'twelve(12)month period Is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms In all instances where an employee is absent without pay for more than five(5)consecutive working days, or for absences of ten(10)working days or more when using paid sick leave ac nuals. 28.3. Substitution of Paid Leave. Page 20 of 332 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required In use all accruals before unpaid leave Is granted. 28.3.2. Vacation,administrative leave or personal leave accnials may be used for the care of the employee's father,step-father,father-in-law,mother, step-mother,mother-In-law,brother,step-brother,sister,ste"Ister, husband,wife,domestic partner,biological child,adopted child,step- child,foster child,legal ward,child of a domestic partner,grandchild, grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMLA Leave. FMLA leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,steP-brother, sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward child of domestic partner,grandchild grandparent,foster parent,legal guardian, or any family member with whom the employee resides,who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that renders the employee unable to perforn the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may Include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for Me employee's family member or'next of kin" service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to 26 weeks of unpaid leave during a single 12-monM period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as Fli Leave,including the care of a domestic partner or child of a domestic paMer,and will run concurrently with FMLA leave. 28.4.2.2. CFRA Leave may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3) to care for a family member or next of kin with a serious injury Page 21 of 33 or illness incurred in the line of duty.However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.5. General Provisions 28.5.1. Requests for FMIA and CFRA Leave 28.5.1.1. Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.5.2. Medical Certification 28.5.2.1. Asa condition of FMLA or CFRA Leave because of a serious health condition,the District may require certtication by the employee's attending physician in accordance with the Department of Labor(DOL)regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMIA and CFRA Leave,the District will pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment, in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same or a comparable position unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,lay-off),In which case the Districts obligation to continue health and dental or other benefits will cease. 2815.& District Employment of Spouses/Domestic Partners 28.5.5.1. FMIA Leave Marred employees will be limited to a combined total of twelve(12)weeks FMIA or CFRA Leave in a rolling twelve(12)month calendar period!for the wre of a parent or newly born or placed child. 28.5.5.2. CFRA Leave Manned employees and employees in domestic partnerships will be limited to a combined total of twelve(12) weeks CFRA Leave in a rolling twelve(12)month calendar period for the care of a PareMarnewly bom or placed child 28.5.6. General Leave 28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to Personal matters,or for FMIA or Page 22 of 332 CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the Districts and the employee's share of medical and dental premiums. 28.5.6.3. Failure to submit a monthly co-payment,in full,within forty-five (45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADNFEHA)and the employee is willing to return to work,placement In an alternative position, favailable,will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. SmMtimeoRwill be without pay;however,the employee may elect to use accrued leave hours,such a5 vaeetion,sick or personal,to receive compensation. Placement man employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3. If it is determined that the job demands of the position lest 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 ADAIFEHA)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 reclasshad as medically disqualified and not pannifted to work. Thereafter,the employee will be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.5.8. Bridge of Service 28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within the District within one(1)year,the District will bridge the employee's service date.Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 285.9. Failure to Return to Work 28.5.9.1. If,upon the expiration of FMIA or CFRA Leave,or any District- Page 23 of 332 approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee will be considered to have automatically resigned from his/her position.In such cases,the employee will receive advance notification of the Distdd's intent to implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10.1.1fhese Leave-of-Absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMIA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied, the provisions of law will govern. ARTICLE 29.--CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages,hours,and terms and conditions of employment;the District Is committed to complying with the law. 29.2. An employee who believes hisfher position Is not properly classified may submit a written request to the Department Head asking that a classifcal study be conducted.The Department Head will acknowledge the request in writing and review the request for accuracy,and forward It to the Human Resources Department for consideration and response.Classification studies will only be conducted Twice a year In November and during the budget process;therefore,classification study requests shall be submitted October 1*for the November review and acceding to the Finance budget schedule which normally requests all information by the and of February.District management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2.1. All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action to be taken by the Board of Directors prior to implementation.In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.3. Y-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.32. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to the District's staling requirements,organizational structure or"bumping"associated with layoffs,Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay(unless otherwise authorized by the General Manager). Page 24 of 3%t 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for ment increases and range adjustments when the Y-rate is no longer in effect. ARTICLE 30. -DRIVER'S LICENSE 30.1. Employees who are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Drivers License privileges.Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform his/her regular duties and responsibilities notifies the Dialect 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 Disbcre management discretion. 30.3. The District will continue to pay the license renewals and physical examination costs of Class A and B licenses that are specifically required by the District. ARTICLE 31. -LAYOFF PROCEDURE 31.1. If,In the..Is discretion of Districts management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,priority of function,lob performance,Individual qualifications and seniority.The Group and employees subject to lay off will be provided with at least two(2)weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified.Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice.The salary of an employee who voluntarily demotes will be unchanged,except that it may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained be a period of two(2)years 1mm the date of layoff.Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five(5)days,or the offer will be made to the next person on the list.An individual who either does not respond or refuses three(3)consecutive offers will have his/her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Cadffed Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned b 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 employees medical restrictions.An employee Page 25 of 332 assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. -MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers hislher own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related.Any examination under this provision will be conducted on District time and at District expense.An employee may submit an independent medical opinion regarding hisher condition and addressing his/her ability fo 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 U.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35.1. Employees who are assigned by District management to perform the duties of an open,budgeted position st a higher level for a period of at least one hundred(100) consecutive hours will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the 101 at hour,and continues unfit the assignment ends or the six (6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted.Requests for acting pay require the approval of the Department Head and the Human Resources Department. The one hundred(100)-hour eligibility period may be waived at the discretion of the General Manager.Time served in higher level assignments shall be credited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. -PERSONNEL FILES 37.1. Employees have the right to inspect heir Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Human Resources Department.It is the responsibility of each employee to keep the Personal information in his/her files currant,including home address,telephone number and person to contact in an emergency. ARTICLE 38. -BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post notices to District employees provided that:(a)no controversial matter which is critical or derogatory of the District, Page 26 of 332 its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the Group will remove its notices after a reasonable length of time;and(d)only a reasonable number of notices will be posted. ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of three(3)employees covered by this Agreement and appointed by the Group will be grented reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meet and confer release time in advance of the meet and confer session.The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. -USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Group with prior notice to the Human Resources Department for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations.The Group agrees to pay for the rust of any additional custedial or security services. ARTICLE 41. -SCOPE OF BARGAINING 41.1. The District and the Group acknowledge that during the negotiations which resulted in this Agreement,each parry had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation.Therefore,the District and the Group,for the term of this Agreement, except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. -IMPASSE PROCEDURES 42.1. If either the District or Group declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of Its position on all Issues.An Impasse meeting will be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understand ing,and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation:if the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation,nor take any public position at any time concerning the Issues. 42.2.2. Fad-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties'dgferences be submitted to a Page 27 of 332 factfinding panel as soon as practicable.The cost of a fact finder and other mutually incurred costs will be mutually shared by the District and Group. 42.2.3. Board Actions:If the parties fail to resolve the impasse,the dispute will be sent to the District Board of Directors for resolution.Each party will submit its written proposal on all Issues to the Board.The Board may Wks such action to resolve the impasse as it deems appropriate to the public interest.Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. -SEVERABILITY 43.1. Notwithstanding any other previsions 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 Me benefits provided by this Agreement,or impose additional obligations on the District,the District and the Group will meet and confer on the affected article,section or subsection.In such avant,all other articles, sections or subsections of Mis Agreement not affected will continue in full force and effect. ARTICLE 44. -UNIFORMS 4 A. The District will provide and maintain ten(10)uniform pants and shirts,which may include Me name of the employee and District seal,at no coat to employees whose duties require that they wear uniforms.The Distinct will also provide lab coals as required by the lab manager. 44.2. All employees who are issued uniforms must wear them during the performance of their regular duties.Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings.Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. -SUBSTANCE ABUSE POLICY 45.1. The District's Substance Abuse Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy.The District may adopt or implement miss,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the Group prior to implementation. 45.2. Department of Transoortation(DOT)Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial drivers license requirements of the Department of Transportation,Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3. District's Substance Abuse Policv: Page 28 of 332 46.3.1. Any employee may be subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46.—NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS 46.1. New Employee Orientation a. p Aomnet..al es.-k-1.11 he proy Had In the..employees holding areal indicating 46.1.1. The Group will be allowed up to one 94half-hour each orientation session to communicate with Grouprepresented classifications to explain the rights and benefits as set forth in this Agreement.Human Resources staff will send to the Group representative,or designee,a notice of each new employee orientation session.The notice will be provided w t least 10 days Prior to the session,or as soon as Practicable and will'nclude pertinent session details Management 46.1.2. The District will hold new employee orientation sessions on a regular basis or at least on a quarterly basis,given there are new Grouo- represented classifications.If there are no new hires in the Group representedclassifications for a scheduled session the District will notify the Group as soon as possible in advance of the session.TAe-employee 46.1.3. Human Resources staff will Dravida the Group with an electronic copy of the name,home address,personal email address and personal cell phone number of all new Group-represented employees within 30 days cf hire. atl em9ley...in the-Group,and 46.1.4. Human Resources staff will Provide the Group with an electronic copy of the name home address,personal email adtlress,and personal cell phone number of all Group-represented employees at least every 120 tlays. nolahs-.�eey:oay. 46.2. Dues Deductions 46.2.1. Remittance of the aggreoale amount of all dues and other proper deductions made from the salaries of employees covered hereunder shall be made to AFSCME along with an electronic report detailing the employees name employee number,baroaining unit,classification tltl sGRie#9qleL-steel.work location.work Phone,work a-mail,hire date, home adtlress home phone home a-mail cell phone islW and deduction amountfs)and type(.). 461 any liability i bi The Group shall demands, or other antl tioltl the District harmless against reduction from anyDues,is tl ding claims ms related d trot related to the of roofs deduction n erthe Dues.including claims related to the Union'.use of monies collec[etl under these provisions. Page 29 of 332 Paycheck and murn t to Group the d as, n t at on fees and assessments far each an .1 be flat h,the and of the pay par ad pro,to In.period k,.h h the died-Mo. 5 requested. 1692r The D an a!w 11 pre-its the Group a quarsedly 1 sl oflhe names offtese employees e names of ate.and hit names or employees who have�Mbe retailing per r ad. ARTICLE 47.—MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group,or who become members of the Group,shall remain members of the Group,except that any employee may withdraw histher membership by written notice to the Group and the District during the ten day period between ninety(90)and one hundred(100)days preceding the expiration of this agreement. ARTICLE 48.—PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term ofthis Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it will not lockout employees in this Group,and Group agrees that it will neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in pad 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 50A. The District's Workplace Violence and Weapons Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. -RESIGNATION 51.1. Voluntary written resignation of employment with the District Is automatically deemed irrevocable after seventy-two(72)hours from the District's receipt of the resignation except by approval of the Human Resources Department. The District may accept in writing any verbal or written resignation at any time and deem such resignation inevocable. ARTICLE 52. (This article intentionally left blank) Page 30 of 332 SIGNATURE PAGE 20196-2022U MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE SUPERVISOR GROUP Executed: SUPERVISOR GROUP ORANGE COUNTY SANITATION DISTRICT Steve Koffroth,Business Representative, Laura Drol Kalty,6pief-Lead Negotiator AFSCME Council 36(Affiliate of SPMG) Luis Schmidt,Business Representative. AFSCME Council 36(Affiliate of SPMG Marc Brown,Principal Staff Analyal Celia Chandler,Director of Human Resources Angela Brandt,Accounting Supervisor Laura Maravilla Human Resources&Risk Reseurca.AnalysiSueewiser Bob Bell,Maintenance Supervisor Andrew Nau.Human Resources Supervisor aura Manw, S9aewvaerMaea, Page 31 of 3%1 Brian Bingman.Engineering Supervisor danine-AguFarThva DeVries,Principal S.Prm.m.l Human Resources Analyst 6aude-KimserSteohanie Barron,Senior Human Rosopress Analyst APPENDIX A Medical Insurance Plan Design Componeill CURRENT STATE PPO Nigh Deductible Health Plan Design Component In Network I Nonthudgerk Inilelwpdt Deductible $150/$450 $1,3091350/$25gB2 000 Annual Out-of $2,000 $3,000 $2,500 $5,000 Pocket Max/Member Annual Out-of- $4,000 $6,000 $5,000 $10,000 Pocket Max/Family Major Medical Physician Office Visit $15/Visit 30% 10% 30% Specialist Office Visit $15/Visit 30% 10% 30% Preventive Care NO Charge 30% No Charge �a.ae30% ^ 30%(up to Inpatient Hospitalization 10% 30%a$500 10% $1,OOo/dagnon- amergency)+ 500 Outpatient 30%(up to Hospitalization/Surgery 10% 30% SO% $350/admit) $100/Vlsk+10% Emergenry,Room $1001 Visit+30% (waived fadmitted) Iopay,spa ived if admitted) Wait" B tiveival Infertility Benefits Not Covered Not Covered Urgent Care $15/Vish 30% 10% 30% Chiropractic $15/VisR 30% 10%/Visit 30%/MSR (30vlslts/year) (30 vlsl[s/year) (30 visits/year) (30 vlaeg ear) Opt Out from Plan Yes Yes Yes Prescription Drop Generic/Brand/ Generic/Brantl/ Generic/Bran Non-Preferred Brand Non-Preferred Brand Page 32 of 332 $5/$20day /$35 $1O/$25/$OO after Retail (3O supplyl Not Covered deductible Net Covered (30-day supply) $5/$40/$)0 $20/$50/$80 after Mail Order (gOday supplyl No[Covered deductible Not Covered gi supi Plan Design Concurrence will include airy applicable mandaled Ingi&etive changes. 'This b nd a complete conviction or all benelk provldms.The larermallon contained!In Summary Plan Dexrni(Sl and Evidence of Love EOL)bMlete Final Medical Insurance Plan Design Componeral CURRENT STATE Man Deal Component Amhem HMO Deductible None None $S Individual $10,000 Family Annual Out-af- $1,500 $1,500 $6,25O Pocket Max/Member Annual Out-of $3,000 $3,000 $12,500 Pocket Max/Family Major Mediral Physician Office Visit $15/Visit $15/Visit $60/Visit Specialist Office Visit $15/Visit $15/Visit $70/Visit Preventive Care NO Charge No Charge NO Charge Inpatient Hospitalization $1O0 Admit $Soo Admit 30% Outpatient $15 Co-pay Hospitalization/Surgery $5O Admit (per procedure) 30% Emergency Room $100/Visit $100/Visit $300/Visit (waived if admlturl (waived if admitted) (waived if admitted) Infertility Benefits Status Quo Status Quo Not Covered Urgent Care $15/Visit $15/Visit $60/Visit Chiropractic sill $10/Visit No[Covered (346O visits/year)' (3O visits/year) Opt-Out from Plan yes Yes Yes ription dugs Preferred Preferred Brand Generic/Brand Generic/Brand $5/$20/$35 $5/$20 $15/$50 medical Retail (30-daysupply) (30-daysupply) deductible applies (30-daysupply) Page 33 of 33 $5/$40/$70 $5/$30 '30/$100 medical Mail Order (3Oday supply) (100Eay supply) de100-daductibleapplies ) su ) 'Plan OsiBa wmPlee dexi ion fa anyaDFlirabN maMaletl leaielalrve cM1anpea. 'Thlc Is rrol a wmpleb tleamlptlm of all berreAt provolone.The IMormallon ccnbinM In Summary Plxi CexXDlbrm(SPOa) emE.ldmceacwarepa iEOC)bocklao pmvells. Page 34 0/33 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP July 1, 20196 through June 30, 202239 SW1i .l OR M31 TABLE OF CONTENTS ARTICLE I.-RECOGNITION ............. I ARTICLE 2.-DURATION........... .......................... I ARTICLE 3.-SUCCESSOR AGREEMENT............................................................................................................1 ARTICLE4.-GROUP ACCESS.............................................................................................................................1 ARTICLE 5,GROUP RIGHTS...............................................................................................................................2 ARTICLE 6..DISTRICT RIGHTS .......................... 2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT......................................................................................2 ARTICLE B.-SMOKE-FREE WOW ENVIRONMENT...........................................................................................2 ARTICLE9-SAFETY............................................................................................................................................3 ARTICLE10. -DISCIPLINE AND DISMISSAL.....................................................................................................3 ARTICLE11. -GRIEVANCEPROCEDLIRE... ............. 4 11.43.1. STEP 1.....................................................................................................................................................5 11.43.2. STm,2.....................................................................................................................................................5 I1.43.4. STEP 3.....................................................................................................................................................5 11.43.5. STEP 4.....................................................................................................................................................5 ARTICLE 12. -PROBLEM SOLVING PROCEDURE...........................................................................................6 ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 133. MEN PAY .......................... 7 13.4. PERFORMANCE MANAGEMENT PROGRAM...................................................................................................7 13.5. DEVELOPMENT ..............................................................................................................7 I&N. SPIANYRANGEAWU T.ENT3.............................. 7 13.910. INVESTMENT INCENTIVE SAIARY(IIS)........................................................................................................8 ARTICLE 14. SEVERANCE PAY ...................................................................................................................a ARTICLE 16. DEFERRED COMPENSATION... ............. a ARTICLE16. HOLIDAYS.......... ......................................................................................................................a 16.2. FLO NG HOLIDAY.......... ...................................................................................................................9 ARTICLE17. -HOURSOFWORK....................................................................................................................10 ARTICLE 18. ............. 10 ARTICLE19.................................................................................................................................................... —10 ARTICLEM. -INSURANCE .......................... 10 20.3. MEDICAL INSURANCE...............................................................................................................................10 M.N. GROUP INSURANCE PREMIUMS...............................................................................................................11 M.W. LIFE INSURANCE .................................................................................................................................11 20.10 SHORT TERM DiMBILm.................................................................................................... 11 Mj_19. LONG TERM DiwiuTY...........................................................................................................................11 20.12a . DENTAL INSURANCE................................................................................................................................11 29.131. VISION INSURANCE..................................................................................................................................11 Mj4Q. RETIRING EMPLOYEES.............................................................................................................................12 Pagel 89T109.1 0RM0031 2016 HEPLTH RETIREMENT ACCOUNT REOPENER..............................................................................12 ARTICLE21. -REIMBURSEMENT ACCOUNT 12 21.2. MEDICAL REIMBURSEMENT ACCOUNT......................................................................................................12 21.3. DEPENDENT CME ASSISTANCE ACCOUNT...............................................................................................12 ARTICLE22. -EXTRAORDINARYSERACES COMPENSATION...................................................................12 ARTICLE 23. -PROBATIONARY PERIOD 13 ARTICLE 24. -PROMOTIONS 14 ARTICLE 25. -RETIREMENT............................................................................................................................14 251.1. EMPLOYEES HIRED PRIOR TO SEPTEMBER 211979.................................................................................14 25.1.2. EMPLOYEES HIRED ON OR AFTERSEPIEMBER 21.1979 AND BEFORE OCTOBER 1.2010...........................14 25.1.3. EMPLOYEES HIRED ON OR AFTER OCTOBER 1.2010.................................................................................15 25.1.4. EMPLOYEES HIRED ON OR AFTER JANUARY12013 15 ARTICLE26. -SHIFT DIFFERENTIAL 15 ARTICLE 27. -LEAVE-OFABSENCE WITH PAY 15 27.1. VACATION LEAVE....................................................................................................................................15 27.2. SICK LEAVE............................................................................................................................................16 27.3. JURY Du,LEAVE..................................................................................................................................1B 27.4. WITNESS LEAVE......................................................................................................................................18 27.5. MIIJTmYLE4VE......................................................................................................................................19 27.6. BEREAVEMENT LEAVE.............................................................................................................................19 27.7. ADMINETRATIyELEAVE...........................................................................................................................18 ARTICLE 28. -LEAVE-OF-ABSENCE WITHOUT PAY.....................................................................................20 28.3. SUBSTITunON OF PAID LEAVE.................................................................................................................20 28.4. PERMESIBLEUSES.................................................................................................................................21 28.5. GENERAL PROVISIONSL£AVE...............................................................................................................2222 . . ...................................................................23 28.; 99ME ..ff .. ___. ............ ............ ............24 ARTICLE 29. -CLASSIFICATION STUDIES.....................................................................................................24 29.34. Y-RATING...............................................................................................................................................24 ARTICLE 30. -DRIVER'S LICENSE 25 ARTICLE 31. -LAYOFF PROCEDURE.............................................................................................................25 ARTICLE 32. -LIGHT DUTY 25 ARTICLE 33. -MEDICAL EXAMINATION 25 ARTICLE 34. -MILEAGE ALLOWANCE 26 ARTICLE 35. -ACTING PAY 26 ARTICLE36. .............................................................................................................................26 ARTICLE 37. -PERSONNEL FILES..................................................................................................................26 ARTICLE 38. -BULLETIN BOARDS 26 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS 26 ARTICLE40. -USE OF DISTRICT FACILITIES................................................................................................27 ARTICLE41. -SCOPE OF BARGAINING.........................................................................................................27 Page II 89TI09.1 0RM6031 ARTICLE42. -IMPASSE PROCEDURES.......... ............................27 412. IMPASSE PROCEDURES. .......................... ..........27 ARTICLE 43. -SIEVERABILITY..........................................................................................................................28 ARTICLE44. -UNIFORMS................................................................................................................................28 ARTICLE45. -SUBSTANCE ABUSE POLICY..................................................................................................28 45.2. DEPARTMENT OF TRANSPORTATON(DOT REGULiALTONS.............................................................28 45.32. DISTRICTS SUBSTANCE MUSE POLICY.RTMEW., RSI...........................28 ARTICLE46. -NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS................................................28 46.1 NEW EMPLOYEE ORIENTATION.. ............. ................... .......... .............................. .......... ...28 46.2 DUEsIDEDUCTIONS ........._........... ............................... ....................-.........-.................2 ARTICLE 47. MAINTENANCE OF MEMBERSHIP..........................................................................................SO ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES .......................... 30 ARTICLE 49.- ....... -..........-.........-................... .......... ...........so ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................SO ARTICLE 51. RESIGNATION. ........................................................................................................30 ARTICLE 52, ................ .........................3o SIGNATURE PAGE.......... ............. 31 APPENDIXA ...................................................................................................................................................m Page III 89T109.1 0RN0031 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP In accordance with the provisions of California Government Code Sections 3500,at seq.,and Resolution No.99-24 of the Joint Boards of Directors,the District's authorized representatives have met and conferred in good faith with representatives of the Professional Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Professional Group accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by the Professional Group as set forth in this Agreement. ARTICLE 1.-RECOGNITION 1A. This Agreement,effective July 1,20195,is entered into between the Orange County Sanitation District,referred to hereinafter as the"District',and the Professional Group,retained to hereinafter as'Grai as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms and conditions of employment. ARTICLE 2.-DURATION 2A. This Agreement will be binding on the District and the Group when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,202249. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions(EERR),Resolution No. OCSD 99-24. ARTICLE 3.-SUCCESSOR AGREEMENT 3A. The Group will submit In writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4.-GROUP ACCESS 4.1. A Group representative will have access to the District facilities during normal working hours for the purpose of assisting Group employees In processing grievances or investigating matters arising out of the application of provisions of this Agreement. 4.2. The Group will provide the Human Resources Department or designee,with a list of Representatives who are authorized to request access under this article,and will notify the Director of Human Resources,or designee,of any changes in that list. 4.3. Group access will not unreasonably interfere with District operations,or with the work of employees in any manner.The District reserves the right to restrict access In certain areas designated confidential or secure. Page 1 of 332 ARTICLE 5. -GROUP RIGHTS 5A. The Group may designate up to five(5)employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary.An alternate representative may be designated to act in the absence of the regular representative.Employees not listed on the roster of representatives provided to the District by the Group may not act as representatives. 5.2. Representatives will not perform non work-related duties on work time without the prior approval of their immediate supervisor.Neither the District nor the Group will interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 8.-DISTRICT RIGHTS 6A. District Inherent rights,powers,functions,duties,responsibilities and authority,related to a managerial or administrative character are reserved to the District in its exercise of management decision-making,except as specifcally modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of Its constituent departments,commissions and boards;set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards;direct its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conductetl; determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission In emergencies;and exercise complete control and discretion over its organbation and the technology of performing its work. 6.2. District retains all authority and rights conferred on it by law,or other legal sources, except to the extant that such authority is explicitly waived by the express terms of this agreement.Distinct exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude the Group from appealing or meeting and conferring Me practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1. There will b r no unlawful discrimination in the application of Me provisions of this Agreement with regard to actual or Perceived race,color,religion,national origin, ancestry,sex,gender,gander identity,gander expression,sexual orientation,age, physical or mental disability,medical condition,genetic information,martial status,or military or veteran status,or any other lawfully protected class.To the extent required by law or by Me District's rules or regulations,this provision of the Agreement will b r applied to all members of the Group without regard to any protected classification. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 8.1. The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards.In view of the hazards associated with smoking and the potentially harmful effect it has on Me health and well being of Page 2 of 332 District employees and their families,smoking and the use of tobacco(cigarettes, cigars,ecigareftes r'vaping"I and related tobacco products and technologies)is not acceptable within District facilities,and may occur only In areas posted for smoking. ARTICLE 9.-SAFETY 9.1. It is the duty of the District to provide and maintain a safe place of employment.The Group will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisor, An employee will not be required to perform work that is unsafe. ARTICLE 10. -DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for lust cause with respect to any employee in the Group:verbal reprimand;written reprimand; suspension without pay;reduction in pay;demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for Just cause. 10.3. A Notice of Intent is not required when the disciplinary action Involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay,reduction in pay,demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which R was personally delivered or deposited in the mail,which will be the date of issuance. 10S. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action; (3)a copy of the charges and materials upon which the action is based;and, (4) a statement of the employee's right to respond,either verbally Or in writing to the person initially imposing the discipline,or to a District management representative with authority to make an effective recommendation on the proposed action;the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10A. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District will notify the employee in writing of the action that will be taken. Such action may not involve discipline more severe than that described In the Notice of Intent;however,the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered In the District's Personnel Policies&Procedures Manual, Page 3 of 332 eilMly.r ORn10.93I 10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the Influence of drugs or alcohol,theft or misappropdadon of District property or funds, fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post-disciplinary hearing.The request must be submitted to the Assistant General Manager or designee,within ten T0)business days following Me effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day of the suspension).The Director of Human Resources,or designee,will schedule a past disciplinary hearing wilt the General Manager or a hearing officer selected by the General Manager.The hearing officer may not be an employee of Me District.The hearing officer will provide a written, advisory decision to the General Manager.The General Manager may uphold the disciplinary acton that has been taken or may reduce such discipline without the Issuance of a further Whips of Intent.The decision of the General Manager will be final.If the hearing officer upholds the disciplinary action,the employee will pay the full cost and expenses of the hearing officer. 10.9. All disciplinary action documentation,except verbal reprimand documentation,will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisors employee files. Supervisors shall Inform management staff when a verbal reprimand is to be implemented. If after twenty-four(24)months from implementation there have been no recurrences of similar incidents,the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24)months subsequent to the date of the issuance,provided that there has been no recurrence of a similar incident during the period.If the Human Resources Department agrees to remove the written reprimand documentation from an employee's personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reolassRcetions,"bumping' associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11. -GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought fo the attention of the District by an individual employee within the Group or by Me Group.The District may not bring a grievance through this Page 4 of 332 0991Cm9.1 ORW0.9]I procedure.Grievances brought by two(2)or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the Group,be consolidated for the purposes of this procedure. 113. Employees are encouraged prior to bringing forward a formal grievance,to discuss the Issue with the Director of Human Resources,or designee,In an effort to bring about an informal resolution. 11.4. Am employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. The District will provide a copy of all written grievance settlements to the Group. Any reference to days in this article implies business days. 11.4.1. Step 1. An employee who has a complaint will attempt to resolve it with his/her immediate supervisor within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event.The supervisor will attempt to resolve the issues surrounding the complaint,and respond to the employee within ten(10)days. 11.4.2. Step 2. If the grievance is not settled informally at Step 1,it may be submitted in writing to the employee's Department Head,or designee.This request for formal review must be presented on a forth provided by the District within ten(10)days of the conclusion of Step 1. A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee. The written grievance must: 11.4.2.1. Identify the specific management ad to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested;and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten(10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the Assistant Ganaral Manager,or designee,for review and written response.The request for formal review must be presented on a forth provided by the District within ten If 0)days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above.A copy of each when communication on a grievance shall be filed with the Assistant General Manager,or designee.The Assistant General Manager,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3,it may be presented to the General Manager within ten(10)days from the date the Step 3 finding was issues The General Manager,or designee,will respond Page 5 of 332 0991CO3.I OR01n931 in writing to the employee within fifteen(15)days after the date the grievance is receivetl.The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance.If an employee is represented by the Group, the Group may designate one(1)employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility.Absence from work will be approved only if it does not cause disrupbon to District operations.However,ff the time requested cannot be provided,an alternate time will be arranged, 11.6. Failure of a supervisor,Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it will be considered resolved on the basis of the preceding response.The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists.Time limits may also be extended at any step upon mutual agreement of the parties.The District agrees to meet fai face with the employee at each step of the grievance procedure at the request of the employee. 113. Resolution may be agreed upon at any stage of the grievance process.However,the Group will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. -PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed b encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve Issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grevable with their supervisor as soon as possible. The supervisor will review the s0 iation or decision, and provide a written response within five(5)days from the date they were notified of the problem. 12.3. If the problem is not resolved to the employee's satisfactoa,the employee may file a written statement concerning the problem with the Human Resources Department within ten(10)days of receipt of the supervisors decision. Upon request of either party,a meeting will be held to define issues and establish the remedies sought The employee will be provided a written response within ten H 0)days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Human Resources Department Is final. ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION 13A. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retmactivtty if active payroll status becomes effective after the date of implementation. Page 6 of 332 13.3. Merits 13.3.1. Step Increase Pav-Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2. Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review an the yearend appraisal or who are an a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program:The performance management program includes two(2)rating categories(proficient and needs improvement)for performance appraisals. 13.5. Development Pav-Employees under this Agreement are eligible for Development Pay. Development Pay Is a non-base building pay type that will be distributed In a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education "a ot,,epay Eligible employees who obtain or who have obtained a graduate degree of approved subjects at an accredited college or university will receive $75.00 per pay period. 13.5.2. Certification/License-ETect--�thp1m;tpa/--'-^ :P sEligible employees who obtain or who have obtained a District approved certification or license will receive$15.24 per pay period per certificate or license wilh a maximum of three(3)certificates and/or licenses. 13.5.3. Grade V Pav-Employees who receive Grade V pay in accordance with the applicable District policy are ineligible to receive Development Pay for their Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possess a Grade V Certificate and do not meet the criteria for Grade V Pay are eligible for Development Pay In accordance with the Development Pay Program Guidelines. 13.6. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.7. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.8. Salary Range Adjustments 13.8.1. Effective the first pay period In July 20195,employees under this Agreement will receive salary range adjustments at a fiat rate of Page]of 332 0991CO3.I OR01n931 3_0 %. 13.8.2. Effective the first pay period in July 201 employees under this Agreement will receive salary range adjustments at a flat rate of 2 3,00%. 13.8.3. Effective the first pay period in July 202118,employees under this Agreement will receive salary range adjustments at a gat rate of 2 5300%. 13.9. Investment Incentive Salary UIS) 13.9.1. An additional amount of 4%of base salary will be paid to employees hired or promoted into the Group on or before October 16,2003 in a lump-sum amount each pay period.This provision continues to make employees whole as a result of the Ventura decision.The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In auction,employees hired or promoted Into the Group on or before October 16,2003 will be paid$1250 annually or$48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual,refirement,and termination leave payouts for eligible employees. ARTICLE 14. -SEVERANCE PAY 14.1. Employees are expected to give a minimum of two(2)weeks asitten notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee will be notified in writing two(2)weeks prior to the effective separation date.The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2. Employees in limited term or part-time positions,probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE IS. -DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan, subject to IRS requirements,and In accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. -HOLIDAYS 16A. The days listed below are observed by the District as holidays.Employees will receive holiday pay If their emm scheduled work shifts Immediately preceding and following the holiday are in a paid payroll status,meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the Page 8 of 332 0991CO3.I ORn1n931 employee will be paid at the employee's regular rate of pay for the holiday,and will also receive pay at the rate of one and one hag(1.5)times hislher 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 payyf reguested by December 31 of the prior year on the Holiday Como Cashout Farm. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance In excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). Holidays New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2. Floating Holiday: Employees may elect one(1)day during each year as a"Floating Holiday"New employees shall be granted a"Floating Holiday"on a pro data basis in the first calendar year of service per the following table: Hire Date Percent 1^Quarter(January-March) 100% 2^^Quarter(ApHIJude) 75% 3' Quarter(July-September) 50% 4e Quarter(October-Decambed 0% 16.3. Employees must use the"Floating Holiday'within the year it is granted.Every effort will be made to approve an employee's request for a'Floating Holiday'00 providing sufficient notice is given. 16.4. Pad-time employees are eligible for holiday benefits on a pro-data basis as set forth in applicable District Policy. Page 9 of 332 xll14.1 Oaul0. ARTICLE 17. -HOURS OF WORK 17A. The work schedule for full-time employees will be eighty(80)hours per biweekly pay period,normally scheduled in shifts of five(5)eight 8 hour days each week,four(4) nines-hour days each week and one(11 additional 8-hour day on alternate weeks (9/80),four(4)ten 10-hour days each week(8180),or three(3)twelve 12-hour days each week and one(1)additional 8-hour day on alternate weeks(7/80).However, with the approval of the employee's supervise,employees may be allowed to flex their schedule within the pay period provided that the business needs,work flow,and customer service needs of the Diatrict are met. 17.2. The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee,which may be waived by the employee Per written request. 17.2.1. The 30-day notice will not be applicable if the change is a result of a reasonable accommodation. ARTICLE 18. (This article intentionally left blank) ARTICLE 19. (This article intentionally left blank) ARTICLE 20. -INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance coverage will become effective on the first day of the month following date of hire,regardless of hire date.An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan,a Preferred Provider Organization(PPO)medical insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular,full-time employees The District will contribute 90%of employee only premiums for the HMO medical health plans and 80%of employee only premiums for the PPO medical plan. The District will contribute 80%of the employee+l dependent and full family premiums for the HMO or PPO medical plans. Any change in insurance rates will be shared equally in same ratio as the District and employees currently Pay premiums. Before the renewal of any District sponsored health insurance plan,the parties agree to meet and confer as to changes in the plan. 20.5. Regular.part-time employees Part-time employees are eligible for medical insurance benefits on a pro-data basis as set forth in the applicable District Policy. 20.6. The HDHP will be accompanied by a Health Savings Account(HSA)to pay for qualified medical expenses.OCSD will use a portion of the cost savings In premiums to fund the HSA accounts during active employment only.The HSA will be,funded with the savings generated annually by calculating the difference between the Page 10 of 332 09IM.1 ORM0.9T District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles,not to exceed the District's aforementioned annual premium cost savings. 20.T. The District may reopen negotiations at any time during the term of this agreement to address the Impact of the Affordable Care Act(ACA). 20.8. Groups Insurance Premiums 20.8.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9. Life Insurance 20.9.1. The District will pay the full premium for$50,000 tens life insurance on each employee. 20.10. Short Term Disability 20.10.1. The District will provide a non-wor,related,short-term disability Indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California's Slate Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.11. Lona Tenn DlsabllM 20.11.1. The District will provide a non-work related,long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability,not to exceed$5,000 per month,following a W day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20A 1.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment is specified. The spaded periods and additional information about coverage is included in OCSD's long term disability plan contract accessible on the intmnet. 20.11.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Tenn Disability may purchase such coverage at their own expense. 20.12. Dental Insurance 20.12.1. The District will contribute 80%of employee only and full family premiums for dental Insurance. 20.13. Vision Insurance 20.13.1. The District will provide a vision insurance plan for regular,full-time employees and eligible dependents.Part-time employees are eligible for vision insurance benefits on a pro-rala basis as set forth in applicable Page 11 of 33 elln4ust Oa010.931 District Policy. 20.14. Retinna Employees 20A4.1. The District will pay,for employees hired prior to July 1,1988,two and one-half(2.5)months'premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District medical plan. 20.14.2. In the event the District adds additional optional insurance plans,the District's share of the premium will be the same as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the District's share of the premium will be the same as for existing insurance plans as set forth above. 20A4.3. The District will construe to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every Lll ear of continuous service up to Commented EBSll:coati and SPMG team-we did eol maximum of 25 years or$250 per month, dia cto his at the table,but we have updmad mia larguaea (house keegng)to align Ale OOsp'a amen,pe ice.Are 20.15. Health Retirement Account(HRA)Reopener: The District and the Group agree rou0Kyfti this updme? to reopen this Agreement to discuss HRA Plan design and funding mechanism options. including District and/or employee funding,understanding the District is not making any commitment to District funding. ARTICLE 21. -REIMBURSEMENT ACCOUNT 21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements.The options available under the flexible benefits program are listed below.This is a brief overview of the different options.For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available In the Human Resources Department. 21.2. Medical Reimbursement Account 21.2.1. The purpose of this account Is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing hlmselrhersellfcr payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax Ponds in a Dependent Care Assistance Account for purposes of reimbursing himselgherself for child care expenses or day care for a disabled dependent ARTICLE 22.-EXTRAORDINARY SERVICES COMPENSATION 22A. Employees in the Group are exempt from the overtime provisions of the Fair Labor Standards Act. However,when services are required beyond what is normally expected of a position in this Group,employees will be eligible to receive additional compensation,as defined herein,for performing extraordinary services. Page 12 of 332 0991CO3.1 ORnt.r Extraordinary services shall be defined as: 22.1.1. The General Manager declares an emergency.A declaration of an emergency is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11—Grievance Procedure or Article 12—Problem Solving Procedure. 221 2. The General Manager determines that there exists a crtical event.A critical event is defined as work of a prolonged nature;involving non- emergency related services:major special projects:or when a substantial effort must be expended to meet a compliance date or scheduled deadline.The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement,including Article 11— Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.3. Will approval of a critical event must be obtained in advance of the work to be performed.The authorization shall set forth the work to be accomplished,the anticipated start and end date and those employees expected to participate in the work.The Department Head,or designee, will be responsible for determining the actual start and and date as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a ethical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event,independent from which Department they are assigned. 22.2.2. For emergencies,compensation will occur for all hours outside the employee's regularly scheduled work shift.For critical events, compensation will occur for all hours after an initial 10 hours of uncompensated time has elapsed. 22.2.3. Employees in the Operations Supervisor classification will receive additional compensation at one and one-half(1.5)times their regular rate of pay.All other classifications shall receive straight time compensation. ARTICLE 23.-PROBATIONARY PERIOD 23.1. All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day Of the pay period following six months of employment without a break in service.Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result In an extension. 23.2. Employees who are rehired fonowing 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 wihout recourse to the Grievance Procedure. 23.3. Employees who are reassigned or laterally transferred will serve a probationary period of six months. The'probationary period"shall not divest an employee of Page 13 of 332 0991403.1 ORW0.9]I his/her property right in hisRler former position. Rejection of probation during this period shall result in the employee reverfing to his/her former assignment and/or position. ARTICLE 24.-PROMOTIONS 24A. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position will be filled as an open or promotional recruitment Whenever the District intends to fill a position by promotion,the District will post the opportunity fora minimum of ten(10) business days. Employees must apply during the period of posting. Notices will be posted on the District's intranet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective data of the promotion. 24.3. At any time during the promotional probationary period,an employee may be returned to his/her previous position.The promotional probation period may be extended by mutual agreement between the employee and District management for up to ninety(90)days. 24.4. If an employee is prompted during his/her initial probationary period,the period will be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.5. Promoted employees will receive the equivalent of a one(1)step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25.-RETIREMENT 25.1. The District will continue participation in the Orange County Employees Retirement System(OCERS),wherein all full-time employees and part-time employees scheduled to work twenty(20)hours par week or more are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired Prior to September 21 1979: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12)months average earnings,past and future service. 25.1.2. Employees hired on or after September 21,1979 and before Oclobar 1. 2010:The District will continue to contract with OCERS 0 provide the 2.50%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contribution to OCERS. Page 14 of 332 0991CO3.I OR010.931 25.1.3. Employees hired on or after October 1.2010 and before January 1. 2013: The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six (36)months average earnings,past and future service. 25.1.3.1. The District will pay 0%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.4. Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA) based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25. AA4 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26A. Employees who are assigned to work a night shift that consists of 50%or more of the hours between 6:00 p.m.and 6:00 a.m.and who actually work mat shift will receive a shift differential of$32.050 per hour. ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided,regular full-time employees seems vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Houm-Annual In years 0 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 I" In year 14 5.85 152 In year 15 6.16 160 In year 16 6A6 168 In year 17 6.77 176 Inyearl8 7.08 184 In Year l9 7.39 192 In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable District Policy. Page 15 of 3%1 0991CO3.l Oanlno3l 27.1.3. Vacation leave may only be utilized In Increments of oneiguarter hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid-leave payroll status. 27.1.4. When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or net. 27.1.5. Annual Payoff.Employees may have a maximum accumulation of two hundred(200)hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred(200)hours,it must be used prior to said December date,all other remaining hours in excess of two hundred(200) will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2. Sick Leave 27.2.1. Definition. Sick leave is an insurance or protection provided by the District to be granted to employees In circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off tram work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury, or pregnancy:to attend to the illness or injury of a family member as hereinafter defined:or,for an employee who Is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a).Temporary employees shall receive sick leave benefits as required by State law. 2122. Method. -Sick Leave Accrual. Full-time employees hired prior to November 27,1981,accrue paitl sick leave at the rate of three and one- hall(3.5)hours for each biweekly pay period of continuous service; ninety-one(91)hours Par 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-sight (78)hours par year),beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-eta basis as set forth in applicable Damot Policy. 27.2.4. When unpaid absences occur,sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or not. 27.2.5. Annual Pays . Employees may elect annually to be paid for any unused sick leave hours accrued through the last Pay Period ending ref October at their current hourly rate according to the following payoff schedule. Accrued Sick Leave Nourm Rate o/PeyoM Page 18 of 3%1 099M.1 OR l.n 0-100 0% 101-240 25% 241-560 35% Over 5Wbriandalory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty(20) years or more of service will be paid at the one hundred percent(100%) rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to: 27.2.7.1. Absence due to illness,injury or pregnancy of an employee. 27.2.7.2. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. 27.2.7.3. Absence for the care of the employee's father,father-in-law, mother,mother-in-law,brother,sister,husband,wide, domestic partner,child,child of domestic partner, grandparent,gandchilQ legal guardian,or family member with whom the employee resides. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 271A 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 tm report for duty.Minimum charge to the employee's sick leave account Will be one- u qer L(0.25)hour increments. 27.2.9. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege.For absences of ten(10)consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. Upon return to work,a written doctors release must be submitted to the Human Resources Department.For absences of one(1)or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. 27.2.10. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMIA")or the California Family Rights Act("CFRA'),the certification requirement will comply with the provisions of these Acts. Page 17 of 33 salMiel ORn10-03 27.2.11. Sick Leave Incentive Plan.If the average sick leave usage of employees in the Group is under forty(40)hours per year,calculated on annualized actual time off from October to October,based on the last pay periods ending in October,exclusive of catastrophic illness or injury requiring absence In excess of two hundred(200)hours or industrial Injury leave in excess of eighty(80)hours,the annual payoff for unused sick leave will be as follows: Accrued Sick Leave Hours Rate of Payoff 0-100 15% 101-240 45% 241—560 60% Over 560(mandatory) 75% 27.3. Jury Duty Leave 27.3.1. Any full-time,including probationary,employee who is called for jury duty will be entitled to his/her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2. Prior to jury duty service,employees must complete an online time off request form.To be entitled to receive regular pay for such jury leave, employees must report for work during tbeir regularly scheduled work shift when they are relieved from jury duty service,unless there is less than one-half(Y)of a regular shift remaining.Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3. An employee serving jury duty must obtain an attendance slip from the court to be submitted to hislber supervisor with his/her timasheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4. Witness Leave 27.4.1. Any full-time,Including probationary,employee,who is required to be absent from work by a subpoena property issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his/her presence as a witness,except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness,will, upon approval of an online time off request,be entitled the time necessary to comply with such subpoena. An employee's regular pay will be reduced by the amount of witness leave pay received,exclusive of mileage. 27.4.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request forth in order to be eligible for pay for such absence.To be entPoed to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive of travel time. Page 18 of 3%1 0991CO3.I Ouwl.1 27.5. Military Leave 27.5.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the data when it is desired to begin the leave-of-absence and the date of anticipated return.Acopy of the orders requiring such military service will be submitted with the request, 21.52. Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave.In general,current law provides that an employee having one(1)year or more service with a public entity Is entitled to military leave with pay not exceeding thirty(30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment.An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use vacation,administrative leave,or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations.Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6. Bereavement Leave 27.6.1. Any full-time employee,whether probationary or regular,shall receive a maximum of thirty-six(36)hours off with pay for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member Is defined as the employee's father,step-father,father-in- law,mother,step-mother,mother-in-law,brother,step-brother,sister, step-sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent, foster parent,foster child,legal guardian,or any family member with whom the employee resides.Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furn 9h evidence s lismctory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to count or deny such requests. Any denial of a request for the use of bereavement leave after Me designated six(6) months is not mievable or otherwise sub act to appeal. 27.6.2. Purl-time employees are eligible for bereavement leave on a pro-rata basis as set forth in applicable Distrid Policy. 27.7. Administrative Leave 2T7.1. Effective the first pay period in July,regular full-time employees in the Group shall be granted forty(40)hours of Administrative Leave. Employees who are hired or promoted into Me Group shall be granted Administrative Leave on a pro-reta basis per the following schedule: Page 19 of 332 0991CO3.I OR01p931 Hire Date Percent July-September 100% October-December 75% January-March 50% April-June 0% 27.7.2. Administrative Leave will be administered in accordance with the following guidelines: 27.7.2.1. Administrative Leave may be used in one-quarter-(0.25)hour increments. 27.7.2.2. Any unused Administrative Leave,within the fiscal year granted,will not be monied over to the next fiscal year. 27.7.2.3. Any mused!Administrative Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7.2.4. Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28A. It is the policy of the District to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)IFMLA(Family and Medical Leave Act)ICFRA (California Family Rights Acd for their own serious health condition. 28.2. Using the prescribed forms,approved by District management,any full-time, including probationary,or pad-time employees with at leaat fril lwo(52)weeks of service and at least twelve hundred fifty(1,250)hours of service,may be granted an FMIA or CFRA leave-of-absence without pay,not to exceed twelve(12)weeks in a rolling twelve(12)month calendar period.A"rolling'bvelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five(5)consecutive working days, or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3. Substitution of Paid Leave. 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required to use all accruals before unpaid leave is granted. Page 20 of 332 099M.1 ORJX.9 28.3.2. Vacation,administrative leave or personal leave accruals may be used for the care of the employee's father,step-father,father-in-law,mother, step-mother,mother-in-law,brother,step-brother,sister,step-sister, husband,wife,domestic partner,biological child,adopted child,step child,foster child,legal ward,child of a domestic partner,grandchild, grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMLA Leave. FMLA leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,step-father.father-in-law. mother,step mother,mother-in-law,brother,step-brother, sister,step-sister,husband,wife,biological child,adopted child,stepchild,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian, or any family member with whom the employee resides,who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that random the employee unable be perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee's family member or'next of kin" service member of the Linked States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to 26 weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave,Including the care of a tlomestic partner or child of a domestic partner,and will run concurrently with FMLA leave. 28.4.2.2. CFRA Leave may not be used for f)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3) to pre for a family member or next of kin with a serious injury or illness incurred in the line of duty.However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. Page 21 of 33 NIMO3.r ORn1n931 28.5. General Provisions 28.5.1. Requests for FMLA and CFRA Leave 28.5.1.1. Where the need far Leave is foreseeable,the District requests thirty(30)days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMIA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with the Department Of Labor(DOL)regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMLA and CFRA Leave,the District will pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment, in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same Ora comparable position unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave mg.,lay-off),in which case the District's obligation to continue health and dental or other benefits will cease. 28.5.5. District Employment of Scauses/Domestic Partners 28.5.5.1. FMIA Leave Marred employees will be limited to a combined total of twelve(12)weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.5.5.2. CFRA Leave Manned employees and employees in domestic partnerships will be limited to a combined total of twelve(12) weeks CFRA Leave in a rolling twelve(12)month calendar period for the care of a parenfecrawly them or placed child. 28.5.6. General Leave 28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of Page 22 of 3%1 0991CO3.I ORn1n931 medical and dental premiums. 28.5.6.3. Failure to submit a monthly co-payment,in full,within forty-five (45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Raturn-to-Work medical evaluation. 28.5.7.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation If the employee Is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work,placement in an alternative position, favailable,will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee In an alternative position requires a pre-placement medical evaluation for the alternative job. 28.57.3, If it is determined Mat 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 One employee is disabled within Me meaning of ADAIFEHA)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,H eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee tell for personal reasons. 28.5.8. Bridal of Service 28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within the District within one(1)year,the District will bridge Me employee's service date.Bridging of service procedures involve adding the total number of days away from we*to the employee's original date of hire. 28.5.9. Failure to Return to Work 28.5.9.1. If,upon the expiration of FMLA or CFRA Leave,or any District- approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee will be considered to have automatically resigned from hislher position.In such cases,the employee will receive advance notification of the District's Page 23 of 3%1 0991Cn3.r Oan1n931 intent to implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10A.These Leave-of-Absence provisions will be interpreted!and applied in a manner that is consistent with the previsions of FMIA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied, the provisions of law will govern. ARTICLE 29.-CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages,hours,and terms and conditions of employment;the District Is committed to complying with the law. 2B2. An employee who believes hisiher position Is not properly classified may submit a written request to the Department Head asking that a classification study be conducted.The Department Head will acknowledge the request in writing and review the request for accuracy,and forward It to the Human Resources Department for consideration and response.Classification studies will only be conducted twice a year In November and ruling the budget process;therefore,classification study requests shall be submitted October 1*for the November review and according to the Finance budget schedule which normally requests all information by the and of February.DisMcl management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29 2.1. At classification study findings regarding existing classifications are subject to approval by the Geneml Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action to be taken by the Board of Directors prior to implementation.In such event, the recommendations will be implemented in the first pay period Immediately following i uthorizatlon by the Board. 29.3. YY-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to the Distncfs staling requirements,organizational structure or"bumping'associated with layoffs.Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job class cation with a lower maximum rate of pay(unless otherwise authorized by the General Manager). 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit Increases and range adjustments when the Y-mm is no longer in effect. Page 24 of 332 0991CO3.I Tura 31 ARTICLE 30. -DRIVER'S LICENSE 30A. Employees who are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges.Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform hismer regular duties and responsibilRies 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 heshe is qualified.Placement in the range of the new classification is subject to District's management discretion. 30.3. The District will continue to pay the license renewals and physical examination Costs of Class A and B licenses that are specifically required by the District. ARTICLE 31. -LAYOFF PROCEDURE 31.1. If,in the sole discretion of District's management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,priority of function,lob performance,individual qualifications and seniority.The Group and employees subject to lay off will be provided with at least two(2)weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified.Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice.The salary of an employee who voluntarily demotes will be unchanged,except that It may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two(2)years from the date of layoff.Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the Individual on the top of the list. That individual must respond to the offer within five(5)days,or the after will be made to the next person on the list.An individual who either does not respond or refuses three(3)consecutive offers will have his her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Credited Mail. It is the responsibility of all employees to keep the Human Resources Department Informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned tm light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. -MEDICAL EXAMINATION Page 25 of 332 0991CO3.1 ORul 33.1. Wren there is reasonable evidence to suggest that an employee is impaired in a manner that endangers hislher own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related.Any examination under this provision will be conducted on District time and at District expense.An employee may submit an independent medical opinion regarding histher condition and addressing hislhar 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 U.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35.1. Employees who are assigned by District management to perform the duties of an open,budgeted position at a higher level for a period of at least one hundred(100) consecutive hours will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the 101 st hour,and continues mail the assignment ends or the six (6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted Requests for acting pay require the approval of the Department Head and the Human Resources Department. The one hundred(100Fhour eligibility period may be waived at the discretion of the General Manager.Time served In higher level assignments shall be crariited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. -PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment.Employees who wish to coned allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the Indicated time period has elapsed,should submit a request In writing to the Human Resources Department.It is the responsibility of each employee to keep the personal information in his/her files current,including home address,telephone number and person to contact in an emergency. ARTICLE 38. -BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post halides to District employees provided that:(a)no controversial matter which is critical or derogatory of the District, its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the Group will remove its notices after a reasonable length of time;and(d)only a reasonable number of notices will be posted. ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS Page 26 of 332 eil1,k3.1 Oan10.9T 39.1. A maximum of three(3)employees covered by this Agreement and appointed by the Group will be granted reasonable release time for attending meet and writer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meat and confer release time In advance of the meet and confer session.The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. -USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Group with prior notice to the Human Resources Department for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations.The Group agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. -SCOPE OF BARGAINING 41.1. The District and the Group acknowledge that during the negotiations which resulted in this Agreement,each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation.Therefore,the District and the Group,for the tens of this Agreement, except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. -IMPASSE PROCEDURES 42.1. If either the District or Group declares that an impasse exists in the meet and confer process,the party so declaring may imbale the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues.An impasse meeting will be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to. 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understanding,and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation,nor take any public position at any time concerning the issues. 42.2.2. Fad-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties'differences be submitted to a factfinding panel as soon as practicable.The cost of a fact finder and other mutually incurred costs will be mutually shared by the District and Group. 42.2.3. Board Actions:If the parties fail to resolve the impasse,the dispute will be sent to the District Board!of Directors for resolution.Each party will Page 27 of 332 0991CO3.I OR010.931 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 Boats to resolve the impasse will be final and binding. ARTICLE 43. -SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement,in the event that any article, section or subsection of this Agreement will be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or Impose additional obligations on the District,the District and the Group will meet and confer on the affected article,section or subsection.In such event,all other articles, sections or subsections of this Agreement not affected will continue in full force and offset, ARTICLE 44. -UNIFORMS 44.1. The District will provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District seal,at no cost to employees whose duties require that they wear untorms.The District will also provide lab coats as required by the lab manager. 44.2. All employees who are issued intends must wear them during the performance of their regular duties.Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings.Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. -SUBSTANCE ABUSE POLICY 45.1. The District's Substance Abuse Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the Group prior to implementation. 45.2. Department of Transportation(DOT)Reputations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation,Federal Highway Administration CFR Part 382 Is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth In CFR Part 40. 45.3. District's Substance Abuse Policy: 45.3.1. Any employee may be subject to discipline,up to and Including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46.-NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS Page 28 of 3%1 0991CO3.r Oa01d931 46.1. he pay died to Ilmiu, hold He Po emneiannad-i I The Ga .New Employee Orientation 46.1.1. The Group will be allowed up to one"elf-hour each orientation session to communicate with Group-represented classifications to explain the rights and benefts as set forth in this Agreement.Human Resources staff will send to the Group representative,or designee.a notice of each new employee orientation session.The notice will be provided eht ht least 10 days prior to the session or as soon as practicable,and will include pertinent session denails.Managemam RESPROSO met NaS W 11 RIA eRGOUMg 8 or al a Manage Group mama Bosh a pant oiiedim, 46.1.2. The Distrid will hold new employee orientation sessions on a regular basis or at least on a guaderly basis,given there are new Group- representetl classifications.If there are no new hires in the Gneup- represented classifications for a scheduled session the Distict will notify the Gmup as soon as possible in advance of the session The employee 46.1.3. Human Resources staff will provide the Group with an electronic wpv of the name,home address,personal email address,and personal cell Phone number of all new Group-represented employees within 30 days of hire. alFempleyeesJntpe-6maed 46.1.4. Human Resources staff will provide the Group with an electronic copy of the name home address personal email address and personal cell Phone number of all Grouo-represented employees at least every 120 tlays Mash in greup 46.2. Dues Deductions 46.2.1. Remittance of the aggregate amount of all dues and other Proper deductions made from the salaries of employees covered hereunder shall be made to AF6CME along Mh an electronic report detailing the employee's name.employee number,bargaining unit.classification W wet.step) work location work Phone work e-mail,hire date home address,home phone,home a-mail.cell Phone.b"edati _ a . and deduction amount(s)and tyoe(s). 46a.5ny 22. The Group shall demands, or other and tioltl the ed to M1a istrid against deduction from anyDues,is demands or related related n's u e of monies deduction of union Dues.including T claims related to the flnm aach AaaWAF use of monies paych a al;and ed under m t to Droyiei0oe. MUSI be filed he,the and of the pa- died.0 he Page 29 of 332 997140.1 ORa40-01 .Pro no Period ARTICLE 47.—MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group,or who become members of the Group,shall remain members of the Group,except that any employee may withdraw hislher membership by written notice to the Group and the District during the ten day period between ninety(90)and one hundred(100)days preceding the expiration of this agreement. ARTICLE 48. —PEACEFUL RESOLUTION OF DISPUTES 48A. During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees It will not lockout employees in this Group,and Group agrees that it will neither advocate,encourage or participate in any strike,including sympathy strike,or wo ,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 aNcle intentionally left blank) ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY 50A. The District's Workplace Violence and Weapons Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. -RESIGNATION 51.1. Voluntary written resignation of employment with the District is automatically deemed Irrevocable after seventy-two(72)hours from the District's receipt of the resignation except by approval of the Human Resources Department. The District may accept in wrifina any verbal or written resignation at any time and deem such resianation Irevocable. ARTICLE 52. (This article intentionally left blank) Page 30 of fl g 311M 1Oa01n931 SIGNATURE PAGE 20196-20l MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE PROFESSIONAL GROUP Executed PROFESSIONAL GROUP ORANGE COUNTY SANITATION DISTRICT Steve KORroth,Business Representative, Laura Dro=Kalty,LeatlFANef Negotiator AFSCME Council W(Affiliate of SPMG) Luis Schmidt.Business Representatve AFSCME Council 36(Affiliate of SPMG) Marc Brown,Principal Staff Analyst Calla Chandler,Director of Human Resources IlAt�l,h�11"he'sk, Pr holes'Cadman, Lauer Maravilla Human Resources&Risk %-XXAdt RiskaterNicholas Oswald, Ma�A-.^ndma " .a.. Maintenance Specialist �cnaeWct u tLarry Roberson,Senior Andrew Nau Human Resources Supervisor AeseuRteMComracts Administrator M Supewisor Janine AguilarThva DeVries,PARe pal SeeierPhnc'pal Human Resources Analyst Page 31 of 3%1 0991CO3.I OR0t.9 Lmma FagerSteohanie Barron,Senior Human Resources Analyst Page 32 of 332 099M.1 ORN.0. APPENDIX A Medical Insurance Plan Design Componerri CURRENT STATE PPO High Deductible Health Plan Plan Design Component In-Network Non-Network In-N--* Non-Network Deductible $150/$450 Si 1,350J S2 2700 Annual Out of Pocket Max/Member $2,000 $3,000 $2,500 $5,000 Annual Out of- $4,000 $6,000 $5,000 $10,000 Pocket Max/Family Major Medical Physician Office Visit $15/VISIt 30% 10% 30% specialist Office visit $15/ViAt 30% 1096 30% Preventive Care No Charge 30% No Charge eA,.�ax Pa430% 30%(up to Inpatient Hospitalization 10% 30%+$500 10% $1,000/dagnon- amergeni5500 Outpatient 30%(up to Hospitalization/Surgery 10% 30% lo% $350/admit) $100/VBR+1o% Emergency Room $100/visit.1M ( waived if admitted) (cpoay waived if admitted) $1a"I I x F Infertility Benefits Not Covered Not Covered Urgent Care $15/VIsit 30% 10% 30% Chiropractic $15/vlsd 30% 10%/visit 30%/VIdt (30vlslts/year) (30vislts/year) (30 visH5/vear) (30oldts/year) Opt Out from Plan yes yes yes Generic/Brand/ Generc/Brand/reudptlon Dregs Non-Preferred Brand Non-Preferred Brand Generic/Brand $5/$20/535 $10/$25/$40after Retail (3"ay supply) Not Covered deducible Not Covered (30-day supply) 55/540/$70 $20/$50/$80 after Mail Order (90day supply) Not Covered deductible Not Covered (,deductible supply) Ron Wsign Camgnents All come any enterable mandeled andarive chenpaz. 'This i not a wmpkle den im of all Mnern pmviams.The information comeired in Summary Plan Deacdptims piri and EvinencerfCo-maillEOC bMIe6 revails. Page 33 of 33 0991403.1 ORvfl.1 Medical Insurance Plan Design ComponerHsa•a CURRENT STATE an Design Component Anthem HMO lather H Ifaisererome Deductible None None $5,OIA1 Individual $10,000 Family Annual Out-of- $1,500 $1,500 $6,250 Pocket Max/Ment Annual Out-of $3,0110 $3,000 $12,500 Pocket Max/Family ajar Medial Physician Office Visit $15/Visit $15/Visit $60/VHit specialist Offire Visit $15/Vi5it $15/Visit $70/Visit Preventive Care No Charge No Charge No Charge Inpatient Hospitalization $100 Admit $100 Admit 3096 Outpatient $15 Co-pay Hospitalization/surgery $50Admi[ (per procedure) 30% Erected,Room $300/Visit $100/Visit $30( Visit (waived if admitted) (waived fadmitted) (waived ifadmitted) Infertility Benefits Status Quo status Quo Not Covered I.Ment Care $15/Visit $15/Visit $60/Visit Chiropractic $1�15 Visit $10/Visit No[Covered (3n60vitits/year)! (30 visits/year) Opt Out from Plan Yes Yes Yes Prescription Drugs Generic/Brand/Nan- Generic/Brand Generic/Brand Preferred Brand $5/$20/$35 $5/$20 $15/$50 medical Retail (30-day supply) (30-day supply) deductible applies (30-day supply) $5/$40/$70 $5/$20 $301$100 medical Mail Order (30.day supply) (SOOday supply) deductible applies (100-day supply) Plan Design Components will Include any applicable mandated legbleltre[mania. This is not a complete Poo,pam or or Parent previsions IDe Information � at cemr crwtaln In Summery Pllownapli end Evidence ph Coverage(EOC)Peoples prevails 'For chiropractic services M ,though Re American 5oecia Health(Azi Newor,the coca,is$10 Atli a maximum of W visits in a toendar Year for covered services. Page 34 of 332 0991Cn3.l ORn10.93t STEERING COMMITTEE Meeting Date TOBE.Or Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number 6 13 Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) Orange County Employees Association bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (Sanitation District) and the three Orange County Employees Association (OCEA) bargaining units that became effective on July 1, 2016 expired on June 30, 2019. OCEA submitted its initial proposal for successor MOU(s) on February 25, 2019. OCEA and the Sanitation District have met and conferred in good faith eleven (11) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items except for salary & wages had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to OCEA including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counterproposal to OCEA on July 9, 2019. OCEA's membership ratified the proposal by majority vote on July 17, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements • Maintain positive employer-employee relations Page 1 d 4 • Provide professional growth and development PROBLEM The MOUs between the Sanitation District and the OCEA bargaining units that became effective on July 1, 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to OCEA on July 9, 2019, including three-year contracts with a 3% salary increase for each year of the contract. OCEA distributed the proposal to their membership for voting and OCEA's membership ratified the proposal by majority vote July 17, 2019. RAMIFICATIONS OF NOT TAKING ACTION • Labor instability • Possible impacts to morale • Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with OCEA from the Steering Committee and the Board of Directors. The OCEA meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019 - Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION The OCEA is the recognized employee organization certified to provide exclusive representation overwages, hours of work, and otherterms and conditions of employment for 103 non-exempt Sanitation District employees spread across three (3) bargaining units: the Administrative and Clerical Unit, the Technical Services Unit, and the Engineering Unit. These employees perform administrative, clerical, and/or para-professional tasks in support of their assigned function or program. The MOUs between the Sanitation District and OCEA expired on June 30, 2019. Based on Board direction, the Sanitation District issued a counter proposal to OCEA on July 9, 2019, including three-year contracts with a 3% salary increase for each year of the contract. OCEA distributed the proposal to their membership for voting and OCEA's membership ratified the proposal by majority vote on July 17, 2019. Full reclined versions of each OCEA MOU are attached for review. A summary of the key changes to the MOUs are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022; language cleanup to align with Employer-Employee Relations Resolution (EERR). 3. Article 13, Salary Adjustments and Compensation: Salarv: Year 1 — 3% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3% Salary Increase, effective the first pay period of July 2020; Year 3 — 3% Salary Increase, effective the first pay period of July 2021. Development Pav: Certification/License- $15.24 per pay period per certificate/license with a maximum of three (3). 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31s' of prior year; floating holiday to be used within calendar year granted. 5. Article 19, Standby Pay: Standby Pay increased to five hundred (500) dollars per week. 6. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA)for all employees; no commitment to District funding. 7. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. With reasonable cause, employee may be required to furnish evidence of family member's death and/or of familial relationship. 8. Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 25— Retirement Page 3 of 4 Article 27— Leave-of-Absence With Pay Article 28— Leave-of-Absence Without Pay FINANCIAL CONSIDERATIONS The total cost is $1,890,944 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s) are included in hard copy may also be viewed on-line at the OCSD websim (wwwocsd.com) with the complete agenda package: • Resolution No. OCSD 19-09 • OCEA Administrative and Clerical Unit (redlined version) • OCEA Technical Services MOU (reclined version) • OCEA Engineering MOU (redlined version) Page 4 of 4 RESOLUTION NO. OCSD 19-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION, FOR FISCAL YEARS 2019/2020, 2020/2021 & 2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the Orange County Employees Association (referred hereinafter as"OCEA"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOUs"). WHEREAS, prior to the expiration of the 2016 MOUs on June 30, 2019, OCEA requested to meet and confer regarding successor MOUs. WHEREAS, pursuant to Government Code Section 3500, at seq., representatives of OCEA have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS,the parties have modified the 2019 MOUs between the District and OCEA to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOUs has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOUs; language cleanup to align with Employer-Employee Relations Resolution (EERR). • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOUs: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2— 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3— 3.0% Salary Increase, effective the first pay period of July 2021. o Development Pay: • Certification/License - $15.24 per pay period per certificate/license with a maximum of three (3). • Holidays has been modified as set forth below and as reflected in Article 16 of the MOUS: o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31st of prior year; floating holiday to be used within calendar year granted. OCSD 19-09-1 • Standby Pay has been modified as set forth below and as reflected in Article 19 of the MOUs: o Standby Pay increased to five hundred (500) dollars per week. • Insurance has been modified as set forth below and as reflected in Article 20 of the MOUS: o Reopener to discuss establishment of Health Retirement Account (HRA) for all employees; no commitment to District funding. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOUS: o Housekeeping changes to remove outdated language. • Leave-of-Absence With Pa v has been modified asset forth below and as reflected in Article 27 of the MOUs: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. With reasonable cause, employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pa v has been modified asset forth below and as reflected in Article 28 of the MOUs: o Housekeeping changes. • Resignation has been modified as set forth below and as reflected in Article 51 of the MOUS: o The District may accept any verbal or written resignation at anytime and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and OCEA for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with OCEA for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. OCSD 19-09-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-09-3 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-09 was passed and adopted at a regular meeting of said Board on the 28th day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 281h day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-09-4 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT July 1, 20196 through June 30, 20223g 8M166.1 ORLd TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................I ARTICLE 2.-DURATION................... ...............................................................................................................I ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE 4.-OCEA ACCESS ................ _1 ARTICLE S.-OCEA RIGHTS... ... ... y ARTICLE 6.-DISTRICT RIGHTS....................................................................................................................2 ARTICLE].-NONDISCRIMINATION IN EMPLOYMENT 2 ARTICLE B.-SMOKE-FREE WORK ENVIRONMENT.......................................................................................2 ARTICLE9.-SAFETY....................................... .................................. 3 ARTICLE 10.-DISCIPLINE AND DISMISSAL .............................................. S ARTICLE 11.-GRIEVANCE PROCEDURE.._.._.._..._......._..._.._..._..._...._......................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE ........................................................... S ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 ARTICLE 14.-SEVERANCE PAY..................... .................................................. _7 ARTICLE 15.-DEFERRED COMPENSATION..................................................................................................7 ARTICLE16.-HOLIDAYS..................................................................................................................................7 ARTICLE 17.--HOURS OF WORK....................... ..8 ARTICLE 18.-CALL-BACK PAY 8 ARTICLE19.-STANDBY PAY.............................................................................................................. 9 ARTICLE 20.--INSURANCE.. .................................... A 20.34 MEDICAL INSURANCE............. ................ 9 20.45 LIFE INSURANCE ............. ....................................... .q 20.56 SHORI DISAEUTY.........................................................................................................................9 20.63 LONGTERM DIMBILI,.........................................................................................................................10 20.79 DENTAL INSURANCE...............................................................................................................................10 20,80 VISION INSURANCE................................................................................................................................10 20.9 RELSING EMPLOYEES...........................................................................................................................10 20.10 HEALTH RETIREMENTACCOUNT REOPENEIRL .......................... 10 ARTICLE 21.-REIMBURSEMENT ACCOUNT..................................................................................................To 21.2 Geoup INSURANCE PREMIUMS.............................................................................................................10 21.3 MEIDICALCAREREIMDURSEME TACCOUNT............................................................................................11 21.4 DEPENDENT CARE ASSISTANCE AcxSuw..............................................................................................11 ARTICLE 22.-OVERTIME...................................................................................................................................I I ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................I I ARTICLE U.-PROMOTIONS..............................................................................................................................I I ARTICLE 25.-RETIREMENT...............................................................................................................................12 ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE INITH PAY..............................................................................................12 27.1 VA.i.LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY L .................................................................................................................................15 27.4 WITNESS LEAVE....................................................................................................................................15 27.5 MILTARYLEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE ............. _15 27.7 SUPPLEMENTAL LEAVE..........................................................................................................................16 ARTICLE 29.-LEAVE,CIF-ABSENCIE MHOUT PAY.......................................................................................is 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................T7 28.4 PERMISSIBLE U.................................................................................................................................17 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLCY.....................................................................................................................la 28.7 COMPLIANCE WITH LAW.. ............. 19 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................Is ARTICLE30.-DRIVER'S LICENSE.....................................................................................................................n ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................20 ARTICLE 32.-LIGHT DUTY................................................................................................. 21 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE U.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Adrnlnimtndirve Clerical MOU July 1,20194 to June 30,202246 P.I 8MA6.1 ORM CR ARTICLE 35.-ACTING PAY................................................................................................................................21 ARTICLE 36 21 ARTICLE 37.-PERSONNEL FILES....................................................................................................................21 ARTICLE 38.—BULLETIN BOARDS 22 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................22 ARTICLE 40.-USE OF DISTRICT FACILITIES..................................................................................................22 ARTICLE 41.-SCOPE OF BARGAINING....................................................................................................._...22 ARTICLE 42.-IMPASSE PROCEDURES...........................................................................................................22 ARTICLE 43.-SEVERABILITY 23 ARTICLE 44.-UNIFORMS..................................................................................................................................23 ARTICLE 45.-SUBSTANCE ABUSE POLICY 23 ARTICLE 46.-DUES DEDUCTIONS...................................................................................................................23 ARTICLE47...........................................................................................................................................................23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES.............................................................................2324 ARTICLE 49. 2A ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY L ARTICLE 51.-RESIGNATION.............................................................................................................................24 ARTICLE 52 2A ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATURE PAGE...... .........................................................................................................25 EXHIBITA.............................................................................................................................................................26 OCEA—mininiet.tivelCl.d.1 MOU July 1,20194 to June 30.20224 Page li 8M166.1 ORe10080 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 District's authorized mpresentat'ne has met and confaned 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,boors,and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1.-RECOGNITION 1.1 This Agreement,effective July 1,20194,is entered into between the Orange County Sanitation District, retained to hereinafter as the"District'and the Orange County Employees Association,referred to hereinafter WOCEA." 12 The District recognizes tie Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications,as set forth In Exhibit"A'(attached hereto and incorporated by reference),as well as additional classes as may be added hereafter by the District. ARTICLE 2.-DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30,20221H. Any Issue regarding the question of exclusive representation of a moormized employee organization shall be brought pursuant to the Emobver-Employee Relations Resolution(EERRI.Resolution No.OCSD 99-24iAia.VereemeMegalt aspirated,This Agreement she"actas a harto the ras ng afthe quagen afroposentaten cuing is nuns?y(99)it.,-ma,m 1,wiped., ARTICLE 3.-SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement 60 days poor to the expiration data of this Agreement. ARTICLE 4.-OCEA ACCESS 4.1 An OCEA Representative shell have access m the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list of Representatives who are authorized]to request access under this article,and shall notRy the Director of any changes in that list. OCEA—AdministrefvelClersal MOU July 1,20194 to June 30,202249 Page 1 BYR166.1 mul 43 OCEA access shall not interfere with the Districts operations,or with the work of employees in any manner. The District reserves the right to restrict access In certain areas designated as confides lal or secure ARTICLE 5.-OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources,or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act In the absence of the regular representative. Employees not listed on the roster of representatives provided W the District by the OCFA may not act as representatives. 5,2 Representatives shall not perform non work related duties on work time without the prior approval of their mediate supervisor. Neither the District nor the OCEA shall interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exerolse of their rights to engage In OCEA activity. ARTICLE 6.-DISTRICT RIGHTS 6.1 District Inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management derision-making, except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider Me merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments, commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees; take disciplinary action for proper caused layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted determine the content of lob classifications;classify and reclassify positions,take all necessary actions to Cary out its mission in emergencies,and exercise complete control and discretion over its mganbal and the technology of performing its work. 6.2 District anin,all authority and rights conferred on it by law,or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and containing the practical consequences or impacts that Distinct decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7A There shall be no unlawful discrimination in the application of the provisions of this Agreement with regaM to actual or perceived race,color,religion,national origin,ancestry,sex,gender,gender ideal gender expression,sexual orientation,age,physical or mental disability,medical condition,genetic information, marital status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of the unit without regard M any protected classi radon. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 6.1 The District a sk rsss and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and the use of tobacco(cigarettes,cigars,e-cigarettes['daring]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only In areas posted for smoking. OCEA-Adminis taf Cledcal MOU July 1,20196 to June 30,2022ag page 2 B9I2166.1 meark m ARTICLE S.-SAFETY g.1 It is Me duty of the District to provide and maintain a safe place of employment. OCIA 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 Dial and to report any unsafe practices or conditions to their Immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10.-DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit:verbal reprimand,woman reprimand,suspension without pay;reduction In pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a non-probationary employee indeed by the DlsMct for just cause. 10.3 A Notice of Intent Is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent Is required and will be given to an employee whenever Me 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 M the employee's Iasi known address. Such personal delivery or mailing shall be presumed M provide actual notice to the affected employee. The Notice of Intent shall indicate the data on which it was personally delivered or deposited In the mail,which shall he the date of issuance. 10.5 The Notice of Intent shall contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)Me reasons for Me proposed actici a copy of the charges and materials upon which the action is based,and,(4)a statement of Me employee's right to respond,either verbally or in writing to Me person initially imposing Me discipline or to a District management representative with authority to make an effective recommendation on Me proposed action,the person to whom any response must be directed,and Me fact Mat such response must be received within ten(10)business days of the data of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Poor to Me effective date of the proposed disciplinary action,the employee shall be given an opportunity W respond either verbally or in writing to a management representative wit authority to make an concave mendation on Me proposed action. After review of an employee's response,the Dinner shall notify the employee in wining 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 Distract may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in Me District's Personnel Policies 8 Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)ended reprimand,except In those situations in which the employee knows or reasonably should have known that Me performance or conduct was unsatisfactory. Such performance or conduct may involve,but Is not limited to,dishonesty,possession,use,sale or being under Me Influence of drugs or alcohol,Melt or misappropriation of District property or funds,fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may subsfiWte dowmanled suspensions without pay for wdften reprimands. 10.8 If a Notice of Intent Is upheld and the disciplinary action is imposed,the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary action(for suspensions,Me effective date shall be the first business day following the final day of Me suspension).The Director of Human Resources,or designee,shall schedule a post disciplinary hearing with Me General Manager or a OCIl -AdministrativWClencal MOU July 1,20196 to June 30,2022U Page 3 emrae.r Okam.mo hearing officer selected by the General Manager. The hearing Officer may not bean employee of the District. The hearing officer will provide a winner,doll 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 fuller Notice of Intent The decision of the General Manager shall be final. 10.9 Disciplinary action documentation shall be placed in an employee's personnel file In the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24)months subsequent to the data of issuance,provided that there has been no recurrence of a similar Incident during Me period If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation from an employee's personnel file,such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed tliscipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement hrough the Problem Solving Procedure.Nothing in this artde shall be construed as a waiver of any stationary,or conatitutbnal rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grace that is not a result of performance deficiencies(for example,reclassifications,'bumping'associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11.-GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement,except Met,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bang a grievance through this procedure.Grievances brought by two(2) or more employees,and conceming the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the Distinct and the OCEA,be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,In an effort to bring about an informal resolution. 114 An employee may be set-represented or be represented by the OCFA at all steps of the Grievance Procedure,unless specifically agreed otherwise by the Di and the employee. The District shall provide a copy of all written grievance settlements to Me OCEA. Any reference to days in this article Implies business days. 11A.1 Step 1. An employee will submit his/her complaint In writing to his/her immediate supervisor or designee within ten 110)days of the occurrence of the event giving Has to the complaint,or within ten If 0)days from the time that the employee became aware of such event. The supervisor,or designee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11A.2 Step 2. If the grievance is not settled at Step 1,it may be submitted in writing to the employee's Division Manager,or designee.This request for formal review must be presented on a form provided by the Disbict within ten(10)days of the conclusion of Step 1.A copy of each written communicaton on a grievance will be filed with the Director of Human Resources,or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected; OCPA-Atlministret'welClencal MOU July 1,201%to June 30,2022a4 Page 4 inctue.1m i60U c) List the specific provisions of the MOU that were at leg eft violated and state how they were violated; d) Sprdfy,the remedy requested;and e) Provide the date of attempts at Informal resolution and the name of the supervisor or Individual involved. 11.4.2.1 The Divisbn Manager,or designee,shall respond in writing to the employee within ten H0)days after the data Me grievance is received. 11A.3 Step 3. I a grievance is not sanded under Step 1 or 2,it may be presented to the employee's Department Director,or designs%for review and written response.The request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1 or 2,and must contain Me Informal spodfied In Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respond In writing to the employee within ten(10)days after the date the grievance is received. 11A.4 Step 4. If the grievance cannot be resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within Ave(5)days from the date Me Step 3 finding was issued The Assistant General Manager,or designee,shall respond in writing to the employee within ten H0)days after the data Me grievance is received. 11.46 Step 5 Appeal b the General Manager,or designee,is Me final step in the Grievance Procedure. If Me grievance cannot be resolved under Step 4,It may be presented to the General Manager,or designee,within Me(5)days from the date the Step 4 finding was Issued The General Manager, or designee,shall respond In writing to Me employee within ten(10)days after Me data of the grevence Is receives. 11.5 General Provisions:An employee shall be given reasonable time off without loss of pay to present and pmcass a grievance. If an employee is represented by Me OCI A the OCEA may designate one employee M present and process the grievance. The employee representative shall be given reasonable time of without loss of pay to perform this responsibility. Absence from work shell be approved only flit does not cause disruption to District operations.However,if the time requested cannot be provided an alternate time shall be arranged. 11.5.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing fo 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 preparing response.The Director of Human Resources,or designee,may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.2 Resolution maybe agreed upon at any stage of the grievance process. However,the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12.-PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the abandon of District managers through the Problem Solving Procetlure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure,Any reference to days in this article Implies business days. 12.2 Empbyees should discuss concerns regarding Issues that are not grievants with their supervisor as soon as possible. The supervisor shall review the situation or decision,and provide a written response within five days from the date they were notified of the problem. OCEA-Adminisba ivelClerical MOU July 1,201%to June 30,20l Page 5 B9I96s.1 ren x.m. 12.3 If the problem is not resolved to the employee's satisfaction,Me employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten(10)days after his or her statement Is received Time limits may be extended for cause upon mutual consent of the Patties,and the decision of the Director of Human Resources,or designee,is final. ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade Is divided Into No(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of Implementation. Eligible employees will not receive retroactidty If active payroll status becomes effective after the date of implementation. 13.3 Merits t Pay 13.3.1 Step Increase Pay-Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of yearend performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible-Employees must have a proficient year-end performance apprelsal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2 Ini -Employees who are placed on a Performance Improvement Plan(PIP)due to needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the yearend appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Manaaemenl Program:The performance management program includes three(3)rating categories(exceeds,proficient,needs improvement)for performance appraisals. 13.3.2 Development Pay-Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient yearend performance appousal to be eligible for the following Development Pay types: • Education-Eligible employees who obtain or who have obtained a degree of approved subjects at an amredded college or university will receive$20.96 Per Pay period for an associate degree and$41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certificationfl-wrise-Eligible employees who obtain or who have obtained a District approved certification a license will receive$15_24Z per pay period per certificate a license with a maximum of three(3)certificates and/or licenses.The maximum amount of certiticationlllcense pay for any combination of certificates and/or licenses Is fixed an $45]222,@6 per pay pericd. 1312.1 The overall maximum Development Pay for education,certification andla licenses is fed at$6Y_256M130 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. OCEA-AdminishefrvelClerical MOU July 1,201N to June 30,202M Page 6 irI ua.1 muct.m. 13.3.2.3 Employees who are placed on a PIP due to needs Improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP Is satisfactorily completed The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effectivathe first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a Oat rate of 3.025%. 13A.2 Effective the first pay period in July 202044r,employees under this Agreement will receive salary range adjustments at a Oat rate of 3.02,5%. 13.4.3 Effective the first pay period in July 2021 Uk employees under this Agreement will receive salary range adjustments at a Oat rate of IM2,g%. ARTICLE 14.-SEVERANCE PAY 14.1 Employees are expected W give a minimum of two(2)weeks written nofifibetign 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 nofffied in writing two(2)weeks prior to the effective separation date.In the event the District doer not give such notificadon,the employee shall be enMetl to severance pay in accordance with the formula set forth below. 14.1.1 Full-time,regular employees shall he enWletl to eight(8)boom pay for each full calendar month of continuous employment not to exceed one hundred sixty(150)hours Pay. 14.1.2 Employees in limited term or pad-time positions,probationary employees and employees who are separated for cause,are not eligible for seaboards pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject W IRS requirements,and In accordance with all guidelines for voluntary participation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay H their argues scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utlllzed paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holitlay,the employee will be paid at the employee's regular rate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times their regular houry 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 requested by December 31 of the Prior Year on the Holiday Comp Cashout Form When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Yeah Day Uncaln a Birthday Presidents Day OCEA-Administrat'rvelClerical MOU July 1,20195 to June 30,202244 Page emtae.t oauac.mo Memorial Day Independence Day Labor Day Veteran Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2 Employees may elect one(1)day during each year as a'Floating Holiday'.New employees shall be granted a'Floating Holiday'on a pro ra s basis In the float mishear year of service per the following table: Hire Data Percent 1a Quarter(January-March) 100% 2^"Quarter(April-June) 75% 3b Quarter(July-September) 50% 4° Quarter(October-Demmber) 0% 16.3 Employees must use the'Floating Holiday'within the calendar year it is granted Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17.-HOURS OF WORK 17.1 For record keeping and accounting purposes,the'workweek"for full-time employees is 40 hours par 166- hour period,to be paid on a biweekly payroll basis of 80 boors worked Employee work periods may be scheduled in shifts of four 9-boor days and one 4-hour day each workweek(9I80 schedule),five 8-hour days each workweek(10/80).four 10-hour days ea&workweek(8180),or tree 12-hour days and one 4- hour day each workweek(7180). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift,and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shin. If an employee reports to work as scheduled and was not notified Met their hours had been changed,he or she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sole discretion,change an employee s work schedule with thirty(30)days wrinen notice to the affected employee. ARTICLE 18.-CALL-BACK PAY 18.1 Men an employee is pulled beck to work by District management without prior notice,and the employee has completed his or her normal work shift and left the wank 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 free hours dealt back pay. The More boom minimum,whether or net actually OCEA-AdministretweaOlericsl MOU July 1,20196 to June 30,2022U Page 8 in res.t oani worked,shall be paid at the rate of one and one half times the regular hourly rate.Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19.-STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work.Standby assignments shall first be made on a voluntary basis.A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced,In alphabetical order,on a rotating basis.In the event that no one volunteers,the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis.An employee placed on standby shall be compensated at the rate of ftseafive hundred body-five 34500)dollars per week,and shall receive Call Back pay when they are actually called ro work. ARTICLE 20.-INSURANCE 20.1 The District will provitle healthcare and welfare insurance benefits. 20.2 All Insurance coverage shall become effective on the fnY day of the month following data of hire, regardless of hire date.An open enrollment period shall be held annually. 20.3 Medical Insurance 20.3.1 The District will provitle medical health insurance coverage through a Health Maintenance Organization(HMO)medical Insurance plan and a Preferred Provider Organization(PPO)medical insurance plan. 20.3.2 popular,full-time employees: 20.3.2.1 The Distrld shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+l dependent and full family premiums for the HMO and PPO medical plans.Any change in insurance rates shall he 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 corder as t0 changes in the plan. 20.3.3 The District may reopen negofiations at anytime during the farm of the MOU to address fire impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change Is either(I i mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 Life Insurance The District shell pay fine full premium for$50,000 term life insurance on each employee. 20.5 Short Term Disability The District shell provide a non-work related,short-term disability indemnify plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twa ix(26)weeks following a fourteen(14)calentlar day waiting period. OCEA-AdministrafwelCIsn lMOU July 1,201%to June 30,20E24B Page 9 irchl r O ousm. 20.6 Long Term Dembiliy, 20.6.1 The District shall provide a non-work related,long-term disability indemnity plan that pays Iwo- Minds of Me employee's rate of pay in effect at to time of such disability,not to exceed $5,000 per month,up b age 65,following a 90-day waiting period of continuous disability,at such there that an employee completes has(5)Were of service. 20.6.2 For participants age 6e and younger,the maximum period of payment is based on the Social Security Act retirement age of 65.For participants age 65 and older,the maximum Period of payment is specified.The specified periods and additional information about coverage is Included In the District's long-term disability plan contract accession on Me Intranet. 20.6.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay.Employees may not receive short-tens and long-term disability bene@s at the me time.An employee who Is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.7 Dental Insurance The Distrid will contribute 80%of employee only and 80%of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision Insurance plan for regular,full-time employees and eligible dependents. 20.9 Retimm Employees 20.9.1 The District shall pay,for employees hired prior to July 1,1988,two and one-haR(2.5)months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the Districts medical plan. 20.9.2 In the event the District adds additional optional insurance plans,the Districts share of the premium shall be the same as for existing plans as no forth above.In the event the District changes underwritere for existing insurance plans,the District's share of Me premium shall be Me same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement Me retiree medical health premium offset program wherein Me oust of health premiums are oRcelby EfO per rnonM for everyfull hvear of ummenNa[eagaellem-wa se nmeiawaa lure came continuous service up to a maximum of 25 yeare or$250 per month.Employees M1ired an or mine,out we lave iodated thinlegool(deuee keepinalro after August 1.2011 shall not he eligible for the retiree medical health premium offset. ales corm,Cebu cumns Patti .An you oe wim m: ,Fasts? 20.10 He ith Retirement Account(HRA)Reopener: The Distrid and Me Group agree to reocen this Agreement to discuss HRA plan design and funding mechanism options.including Denied and/or emblem,funding. understanding the District is not making any commitment to DII funding ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cast of consols under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief ovemew of Me different options. For complete Information regarding Flexible Spending Accounts,employees mud refer to the plan booklet available in Me Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums Mat are paid by salary redirection can be made on a pre-tax basis. OCEA-AdministrefrvelClericel MOU July 1,201%to June 30,2022U Page 10 emtsxr oaaa.mp 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-bx funds In a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for Payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-bx funds In a Dependent Care Assistance Account for pumpses of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22.-OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides now the need for overtime or additional work.The District may require the performance of overeme. In the event no qualified employee wishes to work overtime,District's management may acted employees with the ability to perform the work by inverse seniority.District managers shall attempt to evenly distribute overeme among employees based upon an employee's ability to perform the ovedime work. 22.2 For the purposes of oveNme calculation,all time changed to unscheduled sick leave shall not be counted as time worked. Pay for oveNme time shall not occur until after actual work time of forty(40)hours In a seven(7)day workweek Is reached. ARTICLE 23.-PROBATIONARY PERIOD 23.1 All new employees some an Initial probationary period beginning with the date of hire and stranding to at least the first day of the pay period fallowing six months of employment without a break in service. Extended absence without pay,short-term and longterm disability and Workers'Compensation leave does not provide an opportunely to judge an employees'capability b most performance expectations for is position,and thus the time spent on such leaves shall not be inc uded towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break In service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the d'ocretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of six months. The .probationary penal"shall not divest an employee of hi oher property rights in hismar former position. Rejection of probation during this period shall result In the employee reverting to hislher former assignment end/or position. ARTICLE 24.-PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of Pay.The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment Whenever the District intends to fill a position by promotion,the District shall post the opportunity for a minimum of ten(10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intrenat. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective data of the promotion.At any time during the promotional probationary,period,an employee may be returned to his or her previous position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is prompted during his or her initial probationary period,the period shall be extended until at least the first day of the pay period six months after the adjective date of the promotion. OCEA-Administrafva101edcal MOU July 1,2019g to June 30,2022U Page 11 B9I2166.t impe- r, 24.3 Prompted employees will receive the equivalent of a step increase in pay,not to exceed the top of the range for the new classification or them In Import rate of the new classification whichever Is greater. ARTICLE 25.-RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System(OCERS), wherein all full-me employees are considered members. The following retirement program is in effect pursuant to the contact between OCERS and the District. 25.1.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%®55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average earnings,past and future service. elected to make,are I nom dep r an 1.berm tha Plain G 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward Me employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provide the 1.667%®57.5 benefit formula(Plan B)based on Me highest conseclIDve thirty-six(36)months average earnings,past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towa Ja the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average eamings,past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for Weapon purposes In accordance with Informal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 261 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6r00 p.m.and 6:00 a.m.and who actually work that shift shall receive a shift differential of$2.50 Par hour. ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-BlweaNy Hours-Annual OCEA-Administrat'rvelClami lMOU July 1,20196 to June 30,202248 Page 12 iurrtl 6t Omi6OU In years 0 through 1 3.08 80 In yearn 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year if 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year l] 6J7 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rota basis as set forth in District Policy. 27.1.3 ebeVe-sgerl-Vacation leave may only be utilized in increments of one-quarte balf hour or mom. Vacation leave is accrued for all paid hours,Including hours actually worked and hours In a paid- leave payroll status. 27.1.4 When unpaid absences occur,vacation leave accruals will be applied by straight pmretion of leave accruals based on the number of hours actually woked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the Iasi day of the final pay period in December of each year. In the event an employee accedes 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 that pay period in January at the employee's then current hourly rend,of compensation. 27.2 Sick Leave 27.2.1 Mention: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 offers work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury,or pregnancy,or to attend to the illness or injury of a family member as hereinafter defined;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes descnt ed in Labor Code sections 230(c)and 230lup Temporary employees shall receive sick leave benefits as required by State law. 2722 Method-Sick Leave AdrenalFull-time employees hired prior to November 27,1981.accede 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,secure paid sick leave an the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78)hours per year),beginning with the first day of employment. 27.2.3 Part-time employees access,sick leave on a pro-rasa basis asset forth inapplicable District Policy. 01-AdministrefnelClencal MOU July 1,20196 to June 30,2022ag Page 13 emcees oauaa.mo 27.2.4 When unpaid absences occur,sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked,and Is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued iM1rough the last Pay Period antler in er October at their current hou ly rate according to the following payoff sshedule or as specified in a Memoranda of Understanding. Apprised Sick Leave Hours Beta of Payoff 0100 0% 101-240 25% 241560 35% Over MOfarandatory) 50% 27.2.6 Employees who terminate for any reeves other then retirement or death shall be compensated for any accrued and unused sick leave spending to the above schedule.Employees who retire or decease with twenty(20)years or more of service shall be paid at the one hundred percent (100%)rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only W. A. Absence due to Illness,injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father father-in-law,mother,mother-in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to ajob-related injury. E. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in tabor Code sectors 230(c)and 230.1(a). 27.2.8 General Provisions-To qualify for sick leave pay,the employee must notify the District at or In advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account shall be one- ug arterkaR/_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 presented forms,stating expected date of return must be submitted to Human Resources. Upon return to work,a written doclor's release must be submitted to Human Resources. Far 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 Resource, OCEA-AdminivtrefrvelCledcal MOU July 1,201W to June 30,20E24g Page 14 turcher Oa0i6Om If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Ad("FML4")or the California Family Rights Act("CFRA"),the ceNficated requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time,including probationary,employee wino is called farjury duty shall,upon request on prescribed fortes,be entitled to his or her regular pay far those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service,each employee must complete a time off request through the District's tim ndand system and provide a copy of the summons to his or her supervisor.To be entitled to receive regular pay for such jury leave,the employee must report for work at the District for time not actually retained on jury unless there Is less than'A of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off 27.4 Witness Leave 27.4.1 Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly Issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time off request,be entitled the time necessary to comply with such subpoena,provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit in the Generel Fund of the District. 27A.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request forth 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 Me District for time not actually retained on witness evrvice of one hour or more prior to ancient upon completion of each day's service,exclusive of travel time. 27.5 Mllltary Leave 27.5.1 Arequest for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when 0 is desired M begin the leave-of-absence and Me date of anticipated return. A copy of the orders requiring such military service shell be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 shall govern military leave. In general,current law providee that an employee having one(1)year or more service with a public entity Is entitled to military leave wit pay not exceeding tiny(30)days per year if the employee is engaged In military duty ordered for purposes of active military ireining or encampment. An employee who is required to attend scheduled evrvice drill pedotls or perform ether inactive duty re a obligations is entitled to military leave without pay,not exceeding een sevent (17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time t0 attend the scheduled reams 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 Me required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system,any full-time employee,whether probationary or regular, shall receive a maximum d thirl six(36)hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be Jsed within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father. step-later,facer-In-law,mother,step mother,mother-in-law,brother,step brother sister,atep- OCEA-Administrative/Clerical MOU July 1,20196 to June 30,20224g Page 15 torch r muni6Om sister,husband,wife,domestic partner,biological child,adopted child,slap-child,child of a domestic partner,grandchild,grandparent,foster parent,foster child,legal guarder,or any family member with whom the employee resides. With reasonable cause.Kar l we may be mounted f mi M1 yid o f to to tM1 District f the family members death and me employee relationship to the deceased family member. Employees may submit reouests for bereavement leave after the six l61 months to the Director of Human Resources or torsional who has the discretion to arant or deny such requests. 2]] Suooleressiml Leave 27.7.1 Regular full-time employees In the bargaining unit shall he granted Supplemental Leave In acceptance with the following schedule in the fire(pay period!in July: Years of Servloe 1 5-9 10-14 15-19 20-24 25s SupplemeMal Leaye Hours 1 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in acceptance with the following guidelines: 2]].3.1 Supplemental Leave may be used in one-quarter(0.25)M1our increments. 21].3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.73.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7SS Employees who cease to be part of the bargaining unit for any reason will Well any unused Supplemental Leave. 27.T3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rate basis per the following schedule: Hire?ranafer Dab Percent July-September 100% Call-December 75% January-March ll Apol-June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 281 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and In accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leavini(Family and Medical Leave Acb/CFRA (California Family Rights Act)for heir own serious health condition. 28.2 Using the prescribed forms,approved by District management,any full-time,including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fay(1,250) hours of service,may be granted an FMIA or CFRA leave-of-absence without pay,not to exceed twelve (12)weeks in a rolling Model(12)month calendar period.A'rolling'Waive(12)month period is measured OCEA-AdministratipaWClerical MOU July 1,20196 to June 30,2022U Page 16 eiii oauaa.ms backward from the date the employee uses the leave.A request far leave of absence without pay must be made upon presorted forms In all Instances where an employee Is absent without pay for more than Me (5)consecutive working days,or for absences of ten(10)working days or more when using paid sick leave oduals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's awn serious health condition shall be required to use all accruals,before unpaid leave is granted. Paid time off will not acme during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may bat used for me care of the employee's father,step-father,fatber-in-law, mother,steP-motheq mother-In-law,brother,step-brother,sister,step-sister,husband,wife, domestic partner,biological child,adopted child,stepchild,foster child,legal ward,child a a domestic partner,grandchild,grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4 Permissible Uses 28A.1 FMIA Leave.FMLA leave maybe used for: 28.4.1.1 The birth of a child or to catenate newbom of an employee; 28.4.1.2 The placement of a child with an employee In connedion with the adoption or foster care of a child; 28.4.1.3 The care forma employee's father,step-father,father-in-law,mother,stepmother, mothehin-law,brother,step-brother,sister.step-sister,husband,wife,biological child,adopted child,stepcbllU,foster child,legal word,child of a domestic partner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined In the Act; 284.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5 A qualifying exgemy arising out of the fad that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member 28.4.1.6 The care for the employee's family member or"next of kin'service member of the United States Armed Forces cote has a serious Injury or illness incurred in the Tina of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve(12)month period. 28A.2 CFRA Leave.CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave,including the care of a domestic partner or child of domestic partner,and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for l)an employee s incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However,Incapacity due to pregnancy may enli0e an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. OCInk-Administret'welClerical MOU July 1,20196 to June 30,2022U Page 1] it mu.r mm i6OU 28A.3 General Provisions:Requests for FMIA and CFRA,Leave Where the need for Leave Is foreseeable,the District requests thirty(30)days advance notice. 28A.4 Medical Certification As a condition of FMLA or CFRA Leave because of a empire health condition,the District may require certification by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28A.5 Medical and Dental Premiums During FMLA and CFRA Leave,the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shell be required to pay his or her sham of medical and dental premiums.Failure to submit a monthly cc-payment,In full,within sixty(60)days of the Invoice date will result In loss ofgroup coverage.Coverage will be reinstated upon return to active employment. 28AS Reinstatement Upon expiration of FMLA or CFRA,Leave,me employee shall be careful to me same or a comparable position,unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave mg, layoff),in which case the District's obligation m continue health and dental or other benefls shall cease. 28.4.7 District Employment of 8ompaw/Domestic Farmers 28.4.7.1 FMLA Leave.Married employees shall be limited to a combined total of(waive(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar perind fort" care of a parent or newly born or placed child. 28.4.7.2 CFRA Leave.Marred employees and employees in domestic partnerships will be limited W a combined total of twelve(12)weeks CFRA leave in a milling Wave(12) month calendar period for the care of a mean-er-newly born or placed Philq _,. - Commented[Li Sauer,wn missed Mi¢cleanup 28.5 General Leave hrgoape in our dec asions. This is a benefit m CCEA ma ore.;Nry an only Wood to a—bin.d I wears or 28.5.1 Employees who have exhausted all aid time off accmals may request be rantetla eneral eve related to pooding,KOT cane cam of a pari Pleaee P Y P Y 9 9 9 condrm ne vroac is OK esn ni nxi, leave-of-absence by r the a management to attend to personal eve, or for FM LA or CFRA qualifying events after the expirations of previously aufhor¢etl leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure de submit a monthly co-payment,in full,within sixty(60)days of me Invoice date will result in loss of group coverage.Coverage will be minstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of to position last held by the employee are net compatible wit the employee's resmctbns(with reasonable accommodation K the employee Is disabled within me meaning of the ADAiFEHA)and the employee is willing W return to work, placement in an alternative position,if available,shall be considered. The employee shall be m- 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 me alternative job. OCEA-AdministrefwelClerical MOU July 1,20196 to June 30,20221g Page 18 emred.f real 28.6.3 If it is determined Mat the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated H the employee Is disabled within the meaning of ADAJFEHA)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 realasslBed as medically disqualified and not permitted to work. Thereafter,the employee shall be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridas of Service If an employee is dismissed per Section 28.6.3.and then is rehired to a position within the District wbin one(1)year,the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away form work to the employee's original date of hire. 28.6.5 Failure to Return to Work If,upon the expiration of FMLA or CFRA Leave,or any District improved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shall be considered to have automatically resigned from his or her position.In such cease,the employee will receive advance ratification of the District's intent to Implement an automatic resignation. 28.7 Gondolier.with Law These Leaveaf-Absence provisions shall be Interpreted and applied In a manner that Is consistent with to provisions of FMIA,CFRA,ADA and all other laws. In the event there is a direct conflict between these previsions,as written or applied,the provisions of law shall govern. ARTICLE 29.-CLASSIFICATION STUDIES 29.1 An employee who believes blather position Is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The DepaNnent Director will acknowledge the request in willing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consitleration and response. Classification studies wall only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1u for the November review and according to Me Finance budget schedule. District's management may also conduct classification studies at their discretion k ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2 Y 29.2.1 All classifcation 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 Book of Directors.The recommendations of the classification study shall be Implemented In the first pay period immediately Miming the completion of the study,unless the recemmendatons require action be taken by the Board of Directors prior to implementatpn. In such event,the recommendations shall be Implemented In the first pay period immediately following authorization by the Board. 29.2.2 In the event the duties and responsibilXles 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 I Term of V-Rate OCEA-AdministrefwelClerical MOU July 1,201%to June 30,2022a page 19 emres.r oamc.me 0-3 1 year 45 2Wem 5-10 3years 11-20 6yeare 20 or more Syeare 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's stalling requirements,organizational structure or"bumping associated with layoffs. Y- rating shall not apply in cases involving discipliner,actions or voluntary changes to a job classification with a lower maximum may of pay. 29.2.0 The Y-rate shall remain in effect until the salary range for Me new classification equals or exceeds the employee's Y-rated salary,or until the term of the Y-rate expires in accordance with Me table above.If the Y-rule expires before the employee's salary fells within Me range of the new dassuficalion,the employee shall be placed at the top of Me range. Employees become eligible for merit Increases and range adjustments when the Y-rale Is no lager in effect. 29.3 ZRl 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary aa result of the District's comprehensive Classification Study results implemented effective July 12, 2002 well have their salary remain unchanged(z-rated)until such time that the range maximum a their salary range exceeds or equals their current salary. 29.3.2 If a position Is allocated W a higher paid classification,and the Incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notgy their supervisor and Me Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Drivers License privileges. Failure to do so could result in discipliner,action up to and including separation. 30.2 If an employee whose license is suspended or revoked and Is unable to perform his a her regular duties and responsibilities notifies the District in a timely fashion,an attempt shall be made to place the employee In an equal or lower level position for which he or she is qualified Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to Pay the license renewals and physical examination costs of Class A&B licenses that are specifically required by the Dialmot. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the DisWct to fill vacant,budgeted patients nor to prohibit the District from eliminating vacant positions from the budget. The District reserves Me right W reassign staff W other positions In Instances involving job restructuring,reorganization or due W lack of work. 31.2 The layoff procedure ou0'med below shall be followed if Me District finds it necessary W layoff personnel Me were hired after January 1,2000 and for any layoffs which occur after November 1,2002. OCEA-AtlmenistrefwelClancel MOU July 1,201%to June 30,2022a11 Page 20 emtc r movelume 31.3 If,in the sole discretion of District management,personnel reductions are necessary,layoff abler and recall lists shall he developed based upon lob slasslfcatlon,prlodty,of function,lob performance,Individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at east two weeks notlfdecon in writing,whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in will to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged,except that it may not exceed rite maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions,and shall b r maintained for a period of two years from the date of layoff.Individuals shall be placed on the list in the invandes,order of layoff,ad that the last person lam 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 Me 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 ofere shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Cettifed Mail. It is Me 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 321 An employee who is released by a physician b perform limited duties because of a temporary disability may be assigned to light duty at Me discretion of the District. Light duty may consist of duties other than Moss normally performed by Me employee and that are within the employee's medical restrictions.An employee assigned to light duty wIII be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33.-MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety,or Mat of others,Me Distinct may require that employee th be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this prevision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regaoling Me 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 solving at a decision regarding the individual's continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall he reimbureed at the current IRS refs. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary increase,or Me first step of the range for the higher level classification,whichever Is greeter.The higher rate of pay begins with the hour eighi(81),and continues until the assignment ends or the six(6)month limitation has Wen reached at which time a determination will be made as to whether the position should or should not be posted Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour eligibility period may be waived at the discretion of Me General Manager. OCEA-Adminis ostive/Cle ical MOU July 1,20195 to June 30,20224g Page 21 B9I966.1 onei60q ARTICLE 36. (This Article Intentionally left blank.) ARTICLE 37.-PERSONNEL FILES 37.1 Employees have the right fo inspect their personnel Ole in Me Human Resources Department during the anal office hours crime Human Resources Department,by appointment Employees who wish to correct allegedly erroneous Information In their Ole,or request Mat items related to disciplinary matters be moved after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee 0 keep Me personal information in his or her Ole current,including home address,telephone number and person to contact in an emergency. ARTICLE 38.-BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees,provided!that:(a)no controversial matter which is chhcal 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 nodces after a reasonable length of rime;and(d)only a reasonable number of notices shall be posted. ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 Amaximum ofthree(3)employees covered bythis Agmemenland appointed bythe OCEA shall be granted reasonable release time for attending meet and writer sessions at me bargaining table. Release Oma shell net be compensated for any hours Mat exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and writer session. The release time shall be granted provided Mat the needs of Me District permits the time away from assigned work. ARTICLE 40.-USE OF DISTRICT FACILITIES 401 District facilities may be used by the Ci with prior notice to the Director of Human Resources or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41.-SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge Mat during Me negotiations,which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and Me OCEA for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not he obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process,the party an doctoring may Initiate the impasse procedure by providing the other party with a written request for an impasse meehng,together with a statement of its poshion on all issues. An impasse meeting shall be scheduled and held between Me parties within fourteen(14)calendar days or as soon as practicable to: OCEA-Adminis ourealClarical MOU July 1,201%to June 30,2022a1 Page 22 iun,uv.t O mki 42.2 Review the local of the parties in a final effort to reach agreement on a memorandum of understanding, and H the impasse Is not resolved,to discuss the immediate utilization of Impasse procedures outlined herein. 43.3 Impasse Procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. 43.3.2 Fad-Finding.If the parties fall b resolve the dispute through mediation,the parties may agree to submit the Impasse to fact finding as some as practicable. The cost of a fad finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Boats Actions:If the parfies 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 ask deems appropriate to the public interest. Any action taken by the Boats to resolve the impasse shall be final and binding. ARTICLE 43.-SEVERABILITY 43.1 Notwithdanding any other previsions in this Agreement,in the event that any article,section or subsection of this Agreement shall he declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and OCEA shall meet and confer on the affected article,section or subsectbn. In such event,all other ankles,sections or subsections of this Agreement not affected shall continue in full force and effect ARTICLE 44.-UNIFORMS 44.1 The District shall provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply th all unit members.The District may adopt or implement miss,regulations and policies to be In compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to Implementation. 45.2 Department of Transportation(DOT)Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial covers license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Dmg and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth In CFR Part 40. 45.3 District's Substance Abuse Policy OCEA-AdminishafwehClerical MOU July 1,201 gg to June 30,20E244 Page 23 eshi oama.me 45.3.1 Any employee may be subject M discipline,up to and including termination,for any alcohol screen test Mat Indicates an alcohol concentration level of 0.02%or greater. ARTICLE 49.-DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues,initiation fees and assessments for each employee who voluntarily authormas such deduction in writing. Such authorizations must be filed by the end of the pay period prior to Me period for which the deduction is requested. 46.2 The District shall provide Me OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition,the District shall provide the names and addresses of new employees and Me names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when Impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by Me parties,Me District agrees it shall not lockout employees in this bargaining unit.and OCEA agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from Me full,faithful and proper performance of their d Wes of employment. ARTICLE 49. (This Adlcle Intentionally left blank) ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Vidence and Weapons Policy will apply to all unit mambem. ARTICLE 51.-RESIGNATION 51.1 Voluntary wdften termination of employment with the Dlsthct Is automalically deemed Irrevocable after vent,two(T2)hours from the receipt of the resignation,except by approval of the Directors of Human Resources,or designee. The District may accept in writing m r written reciffination at anytime and deem such resignation Irrevocable. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53.-LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussion.to the time when a successor MOU is mieed. OCEA-AdministretiwelCledcal MOU July 1,201N to June 30,20224g Page 24 B9I2166.1 obi SIGNATURE PAGE 20196-2022i9 MEMORANDUM OF UNDERSTANDING BETWEENTHE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT Executed: OCEA ADMINISTRATIVE B CLERICAL UNIT ORANGE COUNTY SANITATION DISTRICT Be-6uN are zSal em Areoavq Labor Relations Laura DroOz Kalty,Lead6Hief Negotiator Representative dax 0F.,UUfRoad CAN,Administrative Cella Chandler,Director of Human Resources AsaistanlLead Storekeeper Beatrice Mitchell,Administrative Assistant Laura Marevilla Human Resources&Risk Mmaper Andmw-N u-Rdnsgel-kWmaa Andrew Nou.Human Rmumrces Supervisor Jeninek,nlarmvs Deyriaa,PF.m pa SenterPrincioal Human Resources Analyst LaudeKNngerSteohanle Barron,Senior Human Resoureea Analyst OCEA-AdministretiviuClencel MOU July 1,201%to June 30,2022a9 Page 25 emics.l oaaa.mp Exhibit A ADMINISTRATIVE AND CLERICAL UNIT TtionEll ERactiw ENec iw BSJUIiva-0f19e NIN MAX NIN NA% MIN MAX Exculira A¢¢clenl 6B I. ' '� $d632 i8 o Grath,oe¢mna. AS $9g.<] St, fat fsi $4949 $41 e] $'ng1 Acminiatretin Puiabm 67 Sgf.ZM1 " $$4F$ $.o- $4i .conAcumMeLg Anlelem 9] 9].58 Ent85$ 38.69 , $3.A5 3<3B $31-R G2iB $26EB cu.N S.6 . Pi TeMnHen W $3756 lung $3R 89 Si Si5 ueax $3f.2t u2 $31In S<32C ii d<o ..P, u c,Mlurol BG $3SE6 SW] f2f-Z3 S42,N S35N E93.36 leetl income 82 lgi I"i Si 'i ii $10.1M_ 11 11 ai. ] 35.za z. AuuoummBPa¢i¢bmll 59 t2J. $dd.]b] S26G9 S... $. $A"191 ] Smlo�SkttMepe� Sg I. i I. 97fi5 31.9B 38.i8$ W.18 d&]8 $iWP W.62 $28.1B . PRgnm Ae91s1am 58 $ ] $3N53 SNJ3 li $— Si ] 9. B 30.39 9 Accounting Mangum l N $724 A11 1,Ott U10 $2�4 x $ Slomkeeper 52 I. $2&iG3 I. $. 2i9 $3 1 25.9< 155 2672 .. 2].52 3. O mgi W .2282 39 $23dB $28<2 $2,B] $d8-W3] a. < � 1 OCEA-Atlminietret'melClencel MOU July 1,NI%Ie Ju.30,202248 Fog,26 B9I2166.I0R9iBmB MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT July 1, 20196 through June 30, 202239 emai�.�oawoow TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................I ARTICLE 2.-DURATION................... ...............................................................................................................I ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE 4.-OCEA ACCESS ................ _1 ARTICLE S.-OCEA RIGHTS... ... ... y ARTICLE 6.-DISTRICT RIGHTS....................................................................................................................2 ARTICLE].-NONDISCRIMINATION IN EMPLOYMENT 2 ARTICLE B.-SMOKE-FREE WORK ENVIRONMENT.......................................................................................2 ARTICLE9.-SAFETY....................................... .................................. 2 ARTICLE 10.-DISCIPLINE AND DISMISSAL .............................................. S ARTICLE 11.-GRIEVANCE PROCEDURE.._.._.._..._......._..._.._..._........._......................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE ........................................................... S ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 ARTICLE 14.-SEVERANCE PAY..................... .................................................. _7 ARTICLE 15.-DEFERRED COMPENSATION...................................................................................................7 ARTICLE 16.-HOLIDAYS..................................................................................................................................7 ARTICLE 17.--HOURS OF WORK....................... .......................8 ARTICLE 18.-CALL-BACK PAY 8 ARTICLE 19.-STANDBY PAY................................................................................................ ........................a ARTICLE 20.--INSURANCE.. .................................... ..............9 20.34 MEDICAL INSURANCE............. ................. 9 20.45 LIFE INSURANCE ............. .......................... ..............5 20.56 SHORTTEW DISAEUTY.........................................................................................................................9 20.63 LONGTERM DIMBILI,...........................................................................................................................9 20.79 DENTAL INSURANCE...............................................................................................................................10 20,89 VISION INSURANCE................................................................................................................................10 20.9 RELSING EMPLOYEES...........................................................................................................................10 20.10 HEeLTR RETIREMENTACCOUNT REOPENERL .......................... 10 ARTICLE 21.-REIMBURSEMENT ACCOUNT..................................................................................................To 21.2 GROUP INSURANCE PREMIUMS.............................................................................................................10 21.3 MEIDICALCAREREIMDURSEME TACCOUNT............................................................................................10 21.4 DEPENDENT CARE ASSISTANCE AcxSuw..............................................................................................10 ARTICLE 22.-OVERTIME...................................................................................................................................I I ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................I I ARTICLE U.-PROMOTIONS..............................................................................................................................I I ARTICLE 25.-RETIREMENT...............................................................................................................................I I ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE INITH PAY..............................................................................................12 27.1 VA.i.LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY L .................................................................................................................................14 27.4 WITNESS LEAVE....................................................................................................................................15 27.5 MILTARYLEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE ............. _15 27.7 SUPPLEMENTAL LEAVE..........................................................................................................................15 ARTICLE 29.-LEAVE,0E-ABSENCE VIRTHOUT PAY.......................................................................................is 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................Te 28.4 PERMISSIBLE USES................................................................................................................................17 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLCY.....................................................................................................................la 28.7 COMPLIANCE WITH LAW.. ............. 19 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................19 ARTICLE 30.-DRIVER'S LICENSE.....................................................................................................................20 ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................n ARTICLE32.-LIGHT DUTY.................................................................................................................................21 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE U.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Teo,hnic.1 SA,KSE.MOU July 1,20194 to June 30,202246 Pagel 89O1U.1... ARTICLE 35 -ACTING PAY................................................................................................................................21 ARTICLE36..........................................................................................................................................................21 ARTICLE 37..PERSONNEL FILES....................................................................................................................21 ARTICLE 38.--BULLETIN BOARDS.................................................................................................................22 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................22 ARTICLE 40.-USE OF DISTRICT FACILITIES 22 ARTICLE 41.-SCOPE OF BARGAINING........................................................................................................22 ARTICLE 42.-IMPASSE PROCEDURES.... - 22 ARTICLE 43.-SEVERABILITY .................................. ..................................23 ARTICLE 44.-UNIFORMS..................... -.1 ..- -.1.1............................................ ....23 ARTICLE 45.-SUBSTANCE ABUSE POLICY...................................................................................................23 ARTICLE 46.-DUES DEDUCTIONS..................................................................................................................23 ARTICLE 47 ... ...... .......... .... 23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES 24 ARTICLE 49. .............U ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY .............N ARTICLE 51.-RESIGNATION ..........................................................................................24 ARTICLE52...........................................................................................................................................................m ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATURE PAGE.... ............................................................................................25 EXHIBITA.............................................................................................................................................................26 OCEA-Ta&aical Sar,nu,ea MOU July 1,20196 to June 30.20223 Page li 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 fire Joint Board of Directors,the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association(OCEA)for the Technical Services Unit.These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,houra,and conditions of employment for the employees represented by OCEA as at forth in this Agreement. ARTICLE 1.-RECOGNITION 1.1 This Agreement,effective July 1,20195,is shared into between the Orange County Sanitation District, retail to hereinafter as the"District)and the Orange County Employees Association,referred to hereinafter as'OCEA." 12 The District recognizes me Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications,as set forth In Exhibit"A'(attached hereto and incorporated by reference),as well as additional classes as may be added hereafter by the District. ARTICLE 2.-DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30,20224 . Any Issue recording the question of exclusive representation of a recognized employee omanization shall be brought pursuant to the Emobver-Employee Relations Resolution(EERR).Resolution No.OCSD 99-24.Tfra Agreeawfi all act as a bar to the se 8.9 Of in 8 quest 0.Of he Pm s mat a.our.9 is tend except that the quest as a ap rat n, ARTICLE 3.-SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its iii proposal for a successor agreement 60 days Inch to the expiration date of this Agreement. ARTICLE 4.-OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facllltles during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list a Representatives who are authorized to request access under this article,and shall notRy the Director of any changes in mat list. 4.3 OCEA access shall not interfere with the District's operations,a with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or OCEA—Technical Services,MOU July 1,20194 to June 30,202244 Page 1 89R111.1 ORa00M ARTICLE S.-OCEA RIGHTS 5A The OCEA may designate employees to act as representatrvas for employees covered by Mis Agreement. The OCEA shall tumish the Director of Human Resources,or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may W designated to actin the absence attire regular representative. Employees not listed on the rosterof representatives provided to the District by the OCEA may not act as representatives. 52 Representatives shall not perform non work-related duties on work time without the poor approval of their mediate supervisor. Neither the District nor the OCEA shall interfere with,Intimidate,restrain,coerce or dlscdminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6.-DISTRICT RIGHTS 6A District Inherent rights,powers,functions,duties,responsibilities and authority misted to is managerial or administrative character are reserved to Me District In As exercise of management decision-making, except as specifically modified by Me express provisions of this Memorandum.District rights include,bat are net limited to,the esdiuslve right to consider Me merits,necessity or organization of any seNICG an activity provided by law,or administrative order;determine the mission of its constituent departments, commissions and Islands;set standards of serves,determine the procedures and standards of selection for employment and promotion;establish and Implement performance standards;direct Its employees; take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District emissions are to W conducted;tletermine Me content cited,classifications;classify and reclassify positions;take all necessary actions M carry out its mission in emergencies;and exemis, complete control and discretion over its organization and the technology of performing its work. 6.2 District etains all authority and rights conferred on It by law,or other legal sources,except to the extent Mat such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and conferral the practical consegaences or impacts Mat District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall W no unlawful discrimination in the application of Me previsions of this Agreement with regard to actual or perceived race,color,religion,national origin,ancestry,sex,gentler,gender identity.gender expression,sexual orientation,age,physical or mental disability,medical condition,garbed Internal marital status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of Me unit without regard!M any protected classifca6on. ARTICLE S.-SMOKE-FREE WORK ENVIRONMENT 6.1 The District endorses and supports the right of all employees to work In a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and Me use of tobacco(cigarettes,cigars,a Igarettes I"vaping-I and related tobacco products and technologies)Is not acceptable within Distinct facilities,and may occur only in areas posted for smoking. ARTICLE S.-SAFETY 9.1 It is the duty of the District to provide and maintain a safe place nt employment OCEAshallcooparataby encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees coveted by this Agreement,in the course of peffovming their assigned duties,to be OCEA-Technical Services MOU July i,20196 to June 30,2022J4 Page 2 si ut racks ms alert to unsafe practices,equipment,and conditons,and to follow the safety regulations and requirements of the Dismal,and to report any unsafe practices or conditions to their Immediate supervisors. An employee shall net be required to perform work that is unsafe. ARTICLE 10.-DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any ofthe following actions are taken for just cause with respect to any employee in Me unit:verbal reprimand,written reprimand,suspension without pay;reduction In pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a nan-probationary employee inNffied by the District for just cause. 10.3 A Notice of Intent Is not required when the disciplinary action Involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent Is required and will be given to an employee whenever the disciplinary action involves a suspension without pay,a reduction in pay,a demotion to a classification with a lower pay grade,o dismissal.The notice will be given to Me affected employee either by delivery in person or by Carte ed Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed provide actual notice M the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail,which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following'.(1)a description of Me disciplinary,action intended and the effective date of the action;(2)the reasons for the proposed actioq(3)a copy of the charges and materials upon which the action is based;and,(4)a statement of the employee's right ro respond,either verbally or In venting 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 recelved within ten(10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the pmposed disciplinary action,Me employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority ro make an effective recommendation on Me proposed action. After review of an employee's response,the District shall notify the employee in writing of the some that shall be taken. Such action may not Involve discipline more severe than that described In the Notice of Intent;however,the Disinct may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in Me Disbicfs Personnel Policies 8 Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that Me performance or conduct was unsatisfactory. Such performance or conduct may involve,but Is not limited to,dishonesty,possession,use,sale or being under the Influence of drugs or alcohol,theft or misappropriation of District property or funds,fighting on the job,insubordination,acts endangering people or property,or other serious misconduct The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent Is upheld and the dlsciplinary action Is Imposed,the employee may request a posl- disciplinary hearing. The request must be submitted to Me Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary bound(far suspensions,Me affective 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 Me General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the Disthct. The hearing officer will provide a written,advisory decision to Me General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of s further Notice of Intent. The decision of the General Manager shall be final. OCFA-Technical Services MOU July 1,MISS to June 30,2022ag Page 3 scri h. oa0ia.mo 10.9 Disciplinary action documentation shall be placed in an employee's personnel file In the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-lour(24)months subsequent to the date of Issuance,provided that Mere has been no recurrence of a similar Incident during the pence. If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation horn an employee's personnel file,such tlocumentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or In support of the District's proposed diseipllne. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article shall be construed as a waiver of any statutory or consMontserrat rights. 10.11 A reduction in pay or demotion to a classification wit a lower pay grode that is not a result of pertormance deficiencies(for example,reclassitications,'bumping'aashciated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11.•GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure, 112 A grievance may be brought tothe attention of the District by an individual employee within the Unit or by Me OCEA. The Distinct may not bring a grievance through this procedure.Grievances brought by two(2) or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of Me Disbict and the OCEA,be consolidated for the purchase of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance.to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4 An employee may be selt-represented or be represented by the OCEA at all steps of the Grievance procedure,unless specifically agreed otherwise by the OCEA and Me employee. The District shall provide a copy of all written grievance settlements to Me OCEA. Any reference to days in this article Implies business days. 11.4.1 Step 1. An employee will submit his/her complaint In writing to his/her immediate supervisor or designee within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten U0)days from the time that Me employee became aware of such event. The supervisor,or designee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten U0)days. 11.4.2 Step 2 If the grievance is not settled at Step 1,it may be submltletl in writing to Me employee's Division Manager,car designee.This request for formal review must be presented an a form provided by Me District within ten U0)days of Me conclusion of Step 1.A copy of each written communloetion on a grievance will be filetl with the Director M Human Resources,or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected; of List the specific provisions of the MOU that were allegedly violated and state how they ware violated; of Specify the remedy requested;and 0i-Technical Seoul MOU July 1,201%to June 30,2022U Page 4 schu 1.1 mater.m. a) Provide the date of attempts at informal resolution and the name of the supervisor or individual Involved. 11.4.2.1 The Division Manager,or designee,shall depend in writng to the employee within ten (10)days after the dale Me grievance is received. 11A.3 SStep3. If a grievance is not sefttad under Step 1 or 2,it may be presented to the employee's Department Director,or designee,for review and written response.The request for formal review must be presented on a farm provided by the District within five(5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respond in writing W the employee within ten(10)days after the date the grievance is received. 11AA Step al. If the grievance cannot to resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within five(5)days from the date Me Step 3 finding was issued. The Assistant General Manager,or designee,shall respond In wilting W the employee within ten (10)days after the date the grievance Is received. 11A.5 Said5.Appeal to Me General Manager,or designee,is the final step in Me Grievance Proeaten, If Me grievance cannot be resolved under Step 4,it may be presented to the Genarel Manager,or designee,within No(5)days from the date the Step 4 finding was Issued.The General Manager, or designee,shall respond in writing W Me employee within tan(10)days after Me date of Me grievance Is received. 11.5 General provisions An employee shall be given reasonable time off without Ions of pay to present antl process a grievance. If an employee is represented by Me OCEA,the OCEA may designate one employee W present and process the grievance. The employee representative shall be given reasonable time oft without loss of pay to perform this responsibility. Absence from work shall be approved only if it does net cause disrephon to District operations.However,If the time requested cannot be provided,an alternate area shall be arranged. 11.5.1 Failure of a management representative W respond within the appropriate time limit shall provide a basis for Me employee appealing W the next step.If a grievance is not presented car appealed within the time limits,it shall be considered resolved on the basis of the preceding response.The Director of Human Resources,or designee,may be yeti ro a d in vnNng to waive the step or tiros requirements provided sufficient cause exists. 11.5.2 Resolution may be agreed upon at any stage of the grievance prcecess. However,the OCEA shall be notified prior W the resolution of any formal grievance matter. ARTICLE 12.•PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to Me aftention of District managers through Me Problem Solving Procedure.This Procedure was developed to encourage and facilitate Me resolution of employee concerns in a responsive and fair manner,and may be used to attempt W resolve issues Mat may not be subjected to the Grievance procedure.Any reference to days in the article Implies business days. 12.2 Employees should discuss condoms regarding issues that are not grlevable with their supervisor as soon as possible. The supervisor shall review Me situation car decision,and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved t0 the employee's storehouse,Me employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the superviso(s decision. Upon request of either party,a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten(10)days after his or her statement Is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Director of Human Resources,or designee,is final. OCEA-Technical Services MOU July 1,20196j to June 30,2022U Page 5 xxpu r.1 O cround ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay Increases will only apply to eligible employees In an alive payroll status on the effective data of implementation. Eligible employees will not receive retmacfivity tlactive Payroll status becomes affective after the date of implementation. 13.3 enM 13.3.1 Step Increase Pay-Bargaining unit employees will be eligible for Step Increase Pay basetl upon ceipl of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Bill e-Employees must have a proficient year-and Performance appraisal to receive a one(1)step base-building salary increase used eaming placement at step five(5). 13.3A.2 Ineegible-Employees who are placed Dn a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the timer of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program:The performance management program Includes Ores(3)rating categories(exceeds,proficient,needs Improvement)for Performance appraisals. 13.3.2 Development Pay-Employees under this Agreement will be eligible for Development Pay. Development Pay is a nonbese building pay type that will be distributed In a lump-sum punt each pay period Employees must have a profcient yerai performance appraisal to be eligible for the following Development Pay types: • Education-Eligible employees who obtain or who have obtained a degree of approved subjects at an aaredited college or university will receive$20.76 Per pay period for an wrociate degree and$61.53 Par pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$a1.53 per gay period. • Certiecation/License-Eligible employees who obtain or who have obtained a District approved certification or license will receive$15 2AS62 Per Pay period per certificate or license with a maximum of three(3)cedmcates and/or licenses.The maximum amount of ceri ficaton/Iicense pay for any combination of cerffiicates and/or licenses is fixed at $65 7222-86 per pay period. 13.3.2.1 The overall maximum Development Pay for education,ceNfiraen and/or licenses is fixed at$87.256C3g per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP Is satisfactorily completed The return of Development Pay will not be retroactive. 13A Salary Range Adlustments 13A.1 Effective the first pay period in Judy 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3_01 OCEA-Technical Services MOD July 1,20196 t0 June 30,2022U Page 6 emv r.t oaaa.mg 134.2 Effective the first pay periotl In July 2021 employees under this Agreement will recoive salary range adjustments at a flat rate of 2026%. 13.4.3 Effective the first pay period in July 2021 U,employees under this Agreement will receive salary range adjustments at a flat rate of 3 01 ARTICLE id.•SEVERANCE PAY 14.1 Employees are reloaded W give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee shall be notdied in writing Me(2)weeks prior to the effective mis ation date.In the event me District does not give such notification,the employee shall be added to severance pay in accordance with the formula set forth below: 14.1.1 Full-time,regular employees shall be entitled to eight(8)boom pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1 2 Employees in limited term or part-time positions,probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the Districts approved deferred compensation plan subject to IRS requirements,and In accordance with all guidelines for voluntary partdpation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay t their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shits.When an employee's work schedule requires that they work on an observed holitlay,the employee will be paid at the employee's regular ate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times their regular hourly rate for all M1ours actually worked Employees may also elect to receive Holiday Cmpensaory Time Off on an hour for hour basis rather than receive holiday pay if requested by December 31 of the odor year on the Holiday Como Cashout Form.When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory rime off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending In October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Uni Birthday Prosldents Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving OCEA-Technical Seoul MOU July 1,201%to June 30,2022U Page] B9I2L 1.1m i60a Day before Christmas Chdstrnas Day Floating Holiday- 16.2 Employees may elect one(1)day during each year as a'Floating Holiday'.New employees shall be granted a'Floating Holiday'on a pro rats basis in the Met calendar year of service per Me following table: Hire Date Percent fa Quarter(January-March) 100% 2^^Quarter(AprilJune) 75% 3'Quarter(July-September) 60% 4^Quarter(October-December) 0% 16.3 Employees must use the'Floating Holiday'within the wlea3 n3�ear It Is granted.Every effort will be made to approve an employee's request for a"Floel'mg Holiday'oft providing sufficient notice is given. ARTICLE 17.—HOURS OF WORK 17.1 For record keeping and amounting purposes,the-workweek'for full-time employees is 40 hours per 16& hour parlor)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(9160 schedule),five 8-hour days each workweek(10/80),four 10-Iwur days each workweek Si or three 12-hour days and one 4- hour day each workweek(7180). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift,and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time oft or shortening the regular shift. If an employee reports to work as scheduled and was not ranked that their hours had been changed,he m she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sale Meta lon,change an employee's work schedule with thirty(30)days written notice to the affected employee. ARTICLE 18.-CALL-BACK PAY 18.1 Wren an employee is called back to work by District management without prior notice,and the employee has completed his or her normal work sli 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 18.-STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but Is required to be available for Immediate return to work.Standby assignments shall first be made on a voluntary basis.A volunteer standby list shall W established by classification and job location. OCEA-Technical Services MOU July 1,201%to June 30,2022U Page 8 emv h.r oaaa.mo 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 Met no one volunteers,the District shall assign standby by lob clesslficatlon and work location from employees who are competent and experienced on a radio al basis.An employee placed on standby shall be compensated at the rate of trome five hundred tegy-fr e 3 t500)dollars per week,and shall receive Call Back pay when they are actually called to work. ARTICLE 20.-INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the had day of the month following date a hire, regardless of hire area.An open enrollment period shall be held annually. 20.3 Metliral lnsumnco 20.3.1 The District will provide medical health insurance coverage through a Health Maintenance OManization(HMO)medical insurance plan and a Preferred Provider Organization(PRO)medical insurance plan. 20.3.2 Regular,full-time employees: 20.3.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The Disirlct will contribute 80%of the employee*1 dependent and full famlly premiums for the HMO and PPO medical plans.Any change in insurance rates shall be shared equally in same arid as the District and employees cumendy pay premiums. Before the renewal of any District's sponsored health insurance,plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 The District may reopen negotiators at any time during the term of the MOU to address the Impact of the Affordable Care Act(ACA),provided that no change may be made by me District unless such change Is either(1)mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 LHe Insurance The District shall pay the full premium for$50,000 term life Insurance on each employee. 20.5 Short Term Disability The District shall provide a non-work related short-term disability Indemnity plan that provides benefits for employees equal to California s State Disability Insurance(501)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.6 Long Term Disability 20.6.1 The Distict shall provitle a non-wmk related long-term disability indemnity plan that pays Nm- thiMs of the employee's rate of pay In effect at Me time of such disability,not to exceed $5,000 per month,up b age 65,following a 90-day waiting moral of continuous disability,at such time that an employee completes We(6)years of service. 20.6.2 For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 66.For participants age 65 and older,Me maximum"nod of payment is specified The specified periods and additional information about coverage is included in the District's long-term disability plan central accession on Me intranet. OCEA-Technical Services MOU July 1,201%to June 30,2022ag Page 9 scrt"1.1 O uff.m. 20.6.3 No combination of disability or sick leave pay shall result in more than an emplayee's regular rate of pay.Employees may not receive short-tens and king-term disability bene@s at the same time.An employee who Is otherwise not eligible for Di m ul paid Long To.Diseblllly may purchase such coverage sl his or her own expense. 20.7 Dental Insurance The District will contribute 80%of employee only and 80 h of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision Insurance plan for regular,full-time employees and eligible dependents. 20.9 Region Employees 20.9.1 The District shall pay,for employees hired poor to July 1,1988,two and one-half(2.5)months' premium for each year of continuous maraca&a retiring employee towards the premium costs ot coverage for the employee and eligible dependents under the District's medical plan. 20.9.2 In the event Me District adds additional optional insurance plans,the Dismi share of the premium shall be the same as for existing plans as set foot above.In the event the DiiMict changes underwriters for existing insurance plans,the District's share of Me premium shall be the same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement Me retiree medical health premium offset program wherein Me cost of health premiums are offset by$10 per month for every Yull bear of cwnmenree[Mi]:sale wauanmdicuscihcmme continuous service up to a maximum ot 25 years or$250 per month.Employees hired on or ode.w=have updated Mix la:Nuase lhore keepnalo after August 1,2011 shall not be eligible for the retiree medical health premium offset spawn,OcaD'e current Padiw.An you q(wifh this updab9 2010 Health Retirement Account(HRA)Reopen, The District and the Group agree to reopen this Agreement to discuss HRA Plan design and funding mechanism options.Includino District and/or employee funding, understanding the District is not making any commitment to District funding ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their potion of the cost of benefls under the Plan through salary redirection arrangements. The options available under Me flexible beneFds program are listed below. This is a brief oversew of the different options. For complete information regarding Flexible Spending Accounts,employees must refer to the plan booklet available In Me Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums Mal are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes ot reimbursing himself or herself for payment of health care costs not ol6envise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. OCEA-Technical Services MOU July 1,MIN to June 30,2022ag Page 10 xwI u1.1 mmuk-mv ARTICLE 22.-OVERTIME 22.1 Employees shall be note ed as soon as practicable after the District decide.upon the need for overtime or additional work.The District may require to performance of owbowns. In the event no qualified employee wishes to work overtime,District's management may select employees with the ability he perform the work by inverse seniority.District managers shall aftempt b evenly disthbute overdoes among employees based upon an employee's ability to perform the ovetlime work. 22.2 For the purposes of ovetlime calculation,all time charged to unscheduled sick leave shall not be counted as time worked. Pay for oaw me time shall not occur will after actual work time of forty(40)hours Ina seven(])day workweek is reached. ARTICLE 23.-PROBATIONARY PERIOD 23.1 Al new employees more an Initial probationary period beginning with the date of hire and extending to at least the first day of the pay period fallowing six months of employment without a break in service. Extended absence without pay,short-term and longterm disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for e position,and Thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are refused following a break in service must complete a new probationary period whether or not one was previously completed. M employee may be released during his or her Probationary Period at the discretion of the District without recourse W the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of six months. The .probationary period'shall not divest an employee of hisAler property,rights in histher former position. Rejection of probation during this period shall result In the employee reverting to Mather former assignment soldier position. ARTICLE 24.-PROMOTIONS 24.1 A promotion is the appointment of an employee to another classlfcation with a higher maximum rate of pay.The District will dateomin,whether a vacant position shall be filled as an open or promotional opportunity or recmitment.Whenever the District intends W fill a position by promotion,the District shall Post the opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a pmmotional probationary period lasting at least until the first day ofthe 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 Districts management for up to ninety(90)days.If an employee is promoted during his or her initial probationary Will the period shall be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25.-RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System(OCERS), wherein all full-time employees are considered members. The following retirement program is in effect Pursuant to the contract between OCERS and the District. OCEA-Technical Services MOU July 1,N196 to June 30,202244 Page 11 orn"1.t OROi6mm 25.1.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average earnings,past and future service. smears 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue W contract with OCERS W provide the 2.5%@ 55 benefit formula(Plan R)based on the highest consecutive thirty-six(36)months average comings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provide the 1 667%@ 57.5 benefit formula(Plan B)based on Me highest consecutive thirty-six(3fi)months average eamings,past and future service. 25.1S.1 The District will Pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The Distdct will contract with OCERS to provide the 2.5%@ 67 benef4 Tommie(Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average earnings,past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of50%or more of their hours between 6:00 p.m.and 6:00 a.m.and who actually word that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27.-LEAVEOF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours43iweeldy Hours-Annual In years 0 through 1 3.08 80 In yearn 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 OCEA-Technical Services MOU July 1,201%to June 30,2022a0 Page 12 xut2nu1 Oa usma In year 15 6.16 160 In year 16 SAS lair In year lT 6.P 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 no 27A.2 Part-time employees accrue vacation leave on a pro-aW basis as set fork In Distinct Policy. 27.1.3 a§eve-shad-Vacation leave may only be util¢ed in increments of one- ,,nem It hour or more. Vacation leave is accreed for all paid hours,Including hours actually worked and hours In a paid- leave payroll status. 27.1.4 When unpaid absences occur,vacation leave accruals will be applied by Malght subregions of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay perod 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 Me employee's then current hourly ale of compensation. 27.2 Sick Leave 27.2.1 Definition:Sick leave Is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee.It Is not an earned right to take time off from work. Sick leave Is defined as the absence from duty of an employee because of a bona fide illness,injury,or pregnancy,or to attend to the Illness or injury of a family member as hereinafter defined;or,for an employee who Is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). Temporary employees shall receive sick leave bene0ts as required by State law. 2722 Method-Sick Leave Accrual. Full-time employees hired prior W November 27,1981,accrue paid sick leave at Me rate of three point five(3.5)hours for each biweekly pay period of continuous servies(ninety-one(91)hours per year). Full-time employees hired on or after November 27, 1981,decide paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventyaight(78)hours per year),beginning with the first day of employment. 27.2.3 Part-time employees ai sick leave on a pro-rata basis as set forth In applicable District Policy. 27.2.4 When unfaitl absences occur,sick leave accruals will be applied by straight proration for leave accruals based on the number a hours actually worked,and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued througIn Me last Pay Period ani inef October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued!Sick Leave Hours Res,of PayoM 0.100 0 k OCEA-Technical Services MOU July 1,20195 to June 30,2022a9 Page 13 smvt.t oaaa.mP 101-240 25% 241560 35% Over bad(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accmed and unused sick leave according to the above schedule.Employees who rather or decease with twenty(20)years or more of service shall be paid at me one hundred percent (100%)rate far all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate far all accmed and unused sick leave. 27.27 Permissible Uses-Sick leave may be applied only W: 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 Me employee's supervisor. C. Absence for the care of the employee's father,father-in-law,mother,mother in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent, grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to a job-related injury. E. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.6 General Provisions-To quality for sick leave pay,Me employee must notity the District at or in advance of the time the employee is scheduled to report for duty.Minimum merger to the employee's sick leave account shall be one-hat hour� Increments. Human Resources and department management shall be responsible for central of abuse of the sick leave privilege.If notlfled In advance,the employee may be required,at any time,to fumlah a certificate issued by a licensed physician or nurse,or other satisfactory evidence of illness; however,far absences of ten consecutive working days or more,a request for leave and a medical statement,on presorted forms,stating expected date of return must be submitted to Human Resources. Upon return to work,a written declare 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 Ma need for leave Is due to the employee's serous health condition,as defined in the Family and Medical Leave Act(-FMW)or Me California Family Rights Act("Cl the ceNficalion requirement shall comply with the previsions of these Ards. 27.3 Jury Duty Leave 27.3.1 Any full-time,including probationary,employee who is called!perjury duty shall,upon request on prescribed farms,be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working tlays. 27.3.2 Prim to jury duty service,each employee must complete a time of request through the District's timesheet system and provide a copy of the summons to his or her supervisor.To be entitled to receive regular pay for such jury leave,the employee most report for work at the District for time OCEA-Technical Services MOU July 1,201%to June 30,20224g Page 14 xi cession not actually retainetl on jury unless there is less than%of their regular shift remaining. Employees are not compensated forjury duty occurring on scheduled days oft. 27.4 Witness Leave 27A.1 Any full-time,Including probationary,employee,who Is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time oft request,be entitled the time necessary to comply with such subpoena,provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit In the General Fund of the District- 2T.4.2 An employee s r subpoenaed must submit a copy of the subpoena b his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to andlor upon completion of each day's service,exclusive of travel time. 27.5 Mllllery Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is trained to begin the leave-of-absence and the data of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California,Sicilians 395395.5 shall govern military leave. In general,current law provides that an employee having one(1)year or r servics with a public entity is enttled to military leave wit pay not exceeding thirty(30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use coed leave time to attend the scheduled reserve drill pedatls or to perfarrn other inactive will period obligations. Employees who participate in weekend military doll duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time oft request system,any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six(36)hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member, Immediate family member is defined as the employee's father, step-father,famenin-law,mother,step-mother,mother-in-law,bother,step-brother,stater,all sister,husband,wife,domestic partner,biological child,adopted child,step-child,Mild of a domestic partner,grandchild,grandparent,foster parent,foster child,legal guardian,or any family member with whom the employee maides. With reasonable cause employees may be required to furnish evidence smustactury to the District of the family member s death and the employee's relationship to the deceased family member. Employees may submit equests for bereavement leave after the six(6)months to the Director of Human Resources or designee who has the discretion to grant or deny such rewards. 27.7 Supplemental Leave 27.7.1 Regular full-time employees In the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule In the first pay period In July: OCFA-Technical Services MOU July 1,20196 to June 30,2022a1 Page 15 it'i opet yearn of Service i 5-9 10-14 15-19 1 20-24 1 25. Supplemental Leave Hours 1 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.3.1 Supplemental Leave may be used In one-quarter(025)hour increments. 27.T3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over N the next fiscal year. 27.7.3.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.T3.5 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 2]].3.6 Employees who are hired or transferred Into the bargaining unit shall be granted Supplemental Leave on a pm+aN basis per the following schedule: HiMranaNr DeN Percent July-September IW% godfather-December 75% January-Merck 50% April-June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-ot-absences without pay under certain circumstances and In accordance with state and federal benefit entitlement laws. Exceptasstaledbelow, employees shall not receive compensation during an unpaid leaveobabsence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protedfed by PDL(Pregnancy Disability LeaveNFMIA(Family and Medical Leave ActbCFRA (California Family Rights Act)for their awn serious health condition. 28.2 Using the prescribed forms,approved by District management,any fulb6me,including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fMy(1,250) hours of service,may he granted an FMIA or CFRA IeaveMabsence without may.not to exceed twelve (12)weeks In a rolling twelve(12)month calendar period.A'calling'twelve(12)month period Is measured backwaM from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all Instances where an employee Is absent without pay for more than Me (5)comsecutive working days,or for absences often(10)working days or more when using paid sick leave accruals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals,before unpaid leave is granted. Paid time oRwill not acme during any pay period that an employee is absent without pay for more than one(1)day. OCEA-Technical Services MOU July 1,201%to June 30,2022U Page 16 tri oaaa.mo 28.3.2 Paid time on,accruals may be used for the care of the employee's father,step-father,father-in-law, mother,stepmother,mother-in-law,brother,step-brother,sister,step-sister,husband,wife, do real partner,biological child adopted child,stepchild,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent legal guardian,or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA larva.FMLA leave may be used for: 28.4.1.1 The birth of a cold or to care for a newbom of an employee: 28.4.1.2 The placement of a child with an employee in connedion with the adoption or foster care of a child 28.4.1.3 The care for the employee's father,step father,father-In-law,mother,stepmother, mother-iMaw,brother,step-brother,sister,stepsister,husband wife,biological child,adopted child stepchild foster child,legal ward,child of a domestic partner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined In the Act; 28.4.1A The employee's own serous health condition that renders the employee unable to geriorm the essential functions of his or her Position,including incapacity due to Pregnancy; 28.4.1.5 A qualifying segency arising out of the fad that an employee's family member is an covered active duty or called to covered active duty status in are Armed Forces.A qualifying exigency may Include activities such as making arrangements for childcare,attending counseling relating to the alive duty of the service member,or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or'next of kin'service member of the United States Arrned Forces who has a serious Injury or Illness Incurred In the line of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve(12)month fam od. 281 CFRA Leave,CFRA Leave may he used for: 28.4.2.1 The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3)to care fir a family member or next of kin with a serious injury or illness incurred in the line of duty. However,incapacity due to Pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28A.3 General Provisions:Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28A.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require cerdficatlon by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28A.5 Medical and Dental Premiums During Fl and CFRA Leave,the District shall pay for medical and dental benefits at the same level as coverage would have been provided H the employee was not on leave. The OCI1 -Technical Services MOU July 1,20196 to June 30,2022U Page 1] scrulur meal employee shell be required W pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment,in full,within sixty(60)days of Me Invoice date will result In loss of group coverage.Coverage will be reinstated upon return to active employment. 28AS Reinstatement Upon expiration of FMLA or CFRA Leave,Me employee shall be reinstated to the same or a comparable positon,unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,layoff,in which rase Me District's obligation W continue health and dental or other berg fts shall cease. 28A.7 District Employment of SoouadeDomestic Isar[nere 28A].1 FMLA Leave.Married employees shall be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar penod fort" care of a parent or newly born or placed child. 28.4.7,2 CFRA Leave.Mamed employees and employees in domesto partnerships will be limited W a combined total of twelve(12)weeks CFRA leave in a rolling twetre(12) month calendar period for the care of a 0asset or-newly born or placed pllil4 commented[Li sanam,wn mleeea the shonap 28.5 General Leave Imqumee in our discussions. This is a benefit to MbA nem[ers;may ran only lima dto a¢mbined 12 meek at 28.5.1 Employees who have exhausted all paid time off accruals may request to be ranted.general leave related to bondins.NOT the care of a panic passe P Y Y 9 9 9 Corson the grcupis ok son Ni share, leaved-absence fit District management to attend to personal matters or fix FMLA or CFRA qualifying events after the expiretions of previously authorized leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee s share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment,in full,within sixty(60)days of Me Invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.6 Return to Work Palicv 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluator. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible wit Me employee's restrictions(with reasonable accommodation if the employee Is disabled within the meaning of the ADAtFEHA)and the employee is willing to return to work, placement In an alternative position,If available,shall be considered. The employee shall be re. classified as medically disqualified while alternative positions are being considered Such time off shall be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation, Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If It is determined that the job demands of the position last held by the employee are not compatible with Me employee's restrictions(and cannot be reasonably accommodated g the employee Is disabled within the meaning of ADAFEHA)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 net permitted to work. Thereafter,the employee shall be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3,and then is rehired to a position within the District within one(1)year,the District shall bridge the employee's service date. Bridging of service OCEA-Technical Services MOU July 1,201W to June 30,2022U Page 18 fi9]2v IT obvia.mp procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure W Retum to Walk If,upon the expiration of FMLA or CFRA Leave,or any District approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shall be considered to have automatically resigned from his or her position.In such cases,the employee will receive advance notifcation of the District's intent to Implement an automatic resignation. 28.7 Compliance with Law These Leave-cif-Absence provisions shall be Interpreted and applied In a manner that Is consistent with me provisions of FMIA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied,the provisions of law shall govern. ARTICLE 29.-CLASSIFICATION STUDIES 29.1 An employee who believes hislher position is not properly classified may submit a written request W the Department Director asking that a classificedon study be conducted The Detainment Director will ackncro edge the request in writing and review the request far accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 111 for the November review and according to the Finance budget schedule. Dirdincts management may also conduct classification studies at their discretion 0 ensure that the dudes and responsibilities of all employees are appropriately allocated within the classification structure. 29.2 YY-Rdiin 29.2.1 All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the Districts Book of Directors.The recommendations of the classification amity shall be Implemented In the first pay period immediately following to 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 he Implemented In the fort pay period immediately following authorization by the Board. 29.2.2 In the event the dudes 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 2yeare 6-10 3yeare 11-20 4yeare 20 or more 5were 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes W the District's stet ing requirements,organizational structure or"bumping"associated with layoffs. Y- OCEA-Technical Semmes MOU July 1,20196 to June 30,2022U Page 19 B9I2L 1.1 o ctut.mp rating shall not apply in cases involving disciplinary actions or voluntary changes to a job dass0cedon with a lower maximum rate of pay. 29.2.4 The Y-rate shall remain in effect junk the salary range for Me new classification equals or exceeds the employee's Y-rated salary,or until the tern of the Y-rate expires in accordance with Me table above.If the Y-rate expires before the employee's salary falls within the range of the new classification,the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate Is no longer in effect. 29.3 Z-1pladma 29.3.1 Employees allocated to classifications wlM a owner range maximum than their curent salary as result of the District's comprehensive Classification Study books,implemented effective July 12, 2002 will have their salary remain unchanged(z-rated)until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position Is allocated to a higher paid classification,and the incumbent is promoted o that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by Me Dishict to drive must notky their supervisor and Me Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Drivers License privileges. Failure to do so could result in disciplinary action up to and incuding separation. 30.2 If an employee whose license is suspended or revoked and Is unable to perform his or her regular duties and responsibilities notifies the District In a timely fashion,an attempt shall be made to place the employee In an equal or lower level position for which he or she is qualified Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A&S licenses that are specifically required by the District. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions In Instances involving job restructuring,reorganization or due o lack of work. 31.2 The layoff procedure ou0'med below shall be followed if Me District finds it necessary to layoff personnel who were hired after January 1,2000 and for any layoffs which occur after November 1,2002. 31.3 If,in Me sole discretion of District management,personnel reductions are necessary,layoff order and recall lists shall be developed based upon job dassifcation,priority of function,lob performance,individual qualifications and seniorM1y. The OCEA and employees subject to layoff shall be provided with at least two weeks notifcatlon in writing,whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held Position for which they remain qualified. Such requests must be made in writing to the Human Resources Department all five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily decoders shall be unchanged,except Mat it may not exceed Me maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel retluctions,and shall be maintained for a period of two years from the date of layoff.Individuals shall be placed on the list In the OCEA-Technical Services MOU July 1,20195 to June 30,202244f Page 20 ew]ul It oa0ia.mo 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 topofthelist That individual must resmondto the offer within five days,or the offer shall be made to the next person on the list An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 NI notification and responses must he in writing and delivered eitherin person or by Certified Mail. Itis Me responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32.-LIGHT DUTY 32.1 An employee who Is released by a physician to perform limited tulles because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of dome other than Moss,normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be pad the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33.-MEDICAL EXAMINATION 33.1 Wren there is reasonable evidence to suggest that an employee is impaired in a manner that endangers Main own health or safety,or Mal 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 lob 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 Individuals condition and addressing his or her ability to competently perform the coal of the position. This informal shall be reviewed and considered by a competent medical authority in solving at a decision regarding the individual's continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall he reimburset at the current IRS rate. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary Increase,or the Arai step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the hour eight(81),and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether to position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour sill period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article Intentionally left blank.) ARTICLE 37.-PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department,by appointment Employees who wish to correct allegedly smoneous informafon in theirfile,or request Men items barretl to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information OCEA-Technical Services MOU July 1,20195 to June 30,20224rg Page 21 in his or her file current,including home address,telephone number and person to contact in an emergency. ARTICLE 38.-BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees,provke l 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;(of the OCEA shall remove its notices after a reasonable length of time;and(d)only a reasonable number of notices shall be posted. ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of these(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours Mat exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time In advance of the meet and confer session. The release time shall be granted provided Mat the needs of the District permits the time away from assigned work. ARTICLE 40.-USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal Distract operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41.-SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations,which resulted in this Agreement, each party had the unlimited right and opportunlry,to make demands and proposals with respect to all proper subjects wihin the scope of representation. Therefore,the District and the OCEA,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCFA declares that an Impasse exists In the meet and confer process,the any so declaring may initiate the impasse procedure,by providing the other parry with a written request for an impasse meeting,together with a statement of its position on all issues. An impasse meeting shall he scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.2 Review the position of the parties In a final effort to reach agreement on a memorandum of understanding, and R the impasse is not resolved,to discuss the immediate utilization of impasse procedures coined herein, 43.3 Impasse procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute tote Stale Mediator and Conciliation Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. OCEA-Technical Services MOU July 1,201%to June 30,2022U Page 22 ser"Ir maxi 43.3.2 Fact-Finding:If the parties fail to resolve the dispute Through mediation,the parties may agree to submit the Impasse to fact finding as soon as practicable. The cost ate fad finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions:If The parties fail to resolve The Impasse,the dispute shall be sent to the Parr a's Board of Directors for resolution. Each pant shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public Interest Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43.-SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement.in the event that any article,section or subsection of this Agreement shall be declared Invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish to amounts provided by MIS Agreement,or impose additional obligations on the District.the District and OCEA shall meet and confer on the affected article,section or subsection. In such event,all other oncea,sections or subsections of this Agreement not affected shall connote in full force and effect. ARTICLE 44.-UNIFORMS ".1 The District shall provide and maintain ten(10)uniform pants and Shirts,which may include the name of the employee and District's seal,at no cost W employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion,as determined by District management,may be wpm when attending business meetings. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members.The District may adopt m Implement miss,regulations and policies to be In compliance with federal and state laws.In such coaee,madfleatio0 will be provided to the bargaining unit prior to Implementation. 45.2 Department of Transportation(DOT)Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and All Program. The District will ensure that all alcohol or conimlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth In CFR Par 40. 45.3 District's Substance Abuse Policy 45.3.1 Any employee maybe subject to discipline,up band including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46.-DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues,initiation tees and assessments for each employee who voluntarily authorized such deduction in wrNng. Such authadrations must be filed by the end of the pay period prior to Me period for which the deduction Is requeded. OCEA-Technical Services MOU July 1,201%to June 30,2022411 Page 23 emuIr oaam.mo 46.2 The District shall provide the OCFA a quarterly list of the names of thoseemployees 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 whin the prevbus quarter. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when impasse resolution procedures are In progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it shall not lockout employees in this bargaining unit,and OCEA agrees that it shall neither advocate,encourage or participate In any strike,Including sympathy stake,or work stoppages,nor encourage employees to refrain In whole or In part from the full faithful and proper performance of their duties of employment. ARTICLE 49. (This Article Intentionally left blank) ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Vidence and Weapons Policy will apply to all unit members. ARTICLE 51.-RESIGNATION 51.1 Voluntary writlen termination of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the receipt of the resignation,except by approval of the Director of Human Resources,or designee. The District may accept in writing any employee's verbal or woman resignation at any time and deem such resignation Irrevocable. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53.-LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCFA-Technical Services MOU July 1,MIN to June 30,2022411 Page?A B9I2L ur meni60p SIGNATURE PAGE 20196-2022U MEMORANDUM OF UNDERSTANDING BETWEENTHE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT Exewted: OCEA TECHNICAL SERVICES UNIT ORANGE COUNTY SANITATION DISTRICT il.U I affezS.S.W.Area.,.,labor Reined.. Laura Dmulz Kalty,FAveLLead Negotlator Representa0ve Joe Vallone,Information Technology Cella Chandler,Director of Human Resources Technician II """' Fvmathtl Table Laura Maravilla.Human Resources B Risk Ma�Auld,w-W, .2u.si9aLMuwaF Resauree,AnaN'sASueePAser inn o --qftm - at Andrew Nau Human Resources Suoervsor SuaenrserMNa� JadneAgu4arThvs DeVries,Rriasgal &n4orPdncioal Human Resources Analyst Laurie-KNn@erSteohanie Barren,Senior Human Resources Analyst OCEA-Technical S.M.e MOU July 1,MIN to June 30,202248 Page 25 emvu oaaa.ms Exhibit A TECHNICAL SERVICES UNIT Effect- ERactlw Effect. lSJul-if19 AJuliZ30 63Ju1-HI1 Claelflutlon OraM NIN MA% NIN NA% MIN MAX Ie.a$.u.L ,1,,.r n w- sm. KS53 zi $5102 z2 pp MenegMrpp T.nflnlGenll 75 4576 SA3 4713 $7M $C443 $56615 05]8 583 0]13 5130 LB.Sf 902 Sw�COMol ln¢peclorll 73 4i 54 S2.93 44i 6 $45< �] S616 �eM MenepemauTechnli.n l 71 S. k6fG5 53BaG $6FR $.W2 k8905 0144 0.37 O2 fi3 5103 439fi 3M S9ww C..l lmp rl 69 9n5 u9 947 ]. 00.65 61. ] D 91 I.-.n T.hno"y .d3u ¢ABiy Sd36T $6H§ $dG33 $G2iy thni-n ll Eml—enlel Tmhnkkn 61 t3 ] $3]l9 $31A6 63®�29 .,V 937 333E 40.5 30.35 1]] lM-.n Tx6n."y 81 j$y3^ $9,3jt S33.Lr U06 $J935 Fgi]]S T.bnidenI 353® UuW 3it2 L.o:M.ywwww u uua Esz,9x s2zw Yssae Soso SSa.a3 OCEA-Te NN .l S.m.c MOU July 1,911961e June 30,202248 P,E 26 B9I2)ILI OROf0O0 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT July 1, 20196 through June 30, 202239 emziz.�oawoow TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................I ARTICLE2.-DURATION................... .............................................................................................................I ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE 4.-OCEA ACCESS.. ................ _1 ARTICLE S.-OCEA RIGHTS................ y ARTICLE 6.-DISTRICT RIGHTS......................................................................................................................2 ARTICLE].-NONDISCRIMINATION IN EMPLOYMENT 2 ARTICLE B.-SMOKE-FREE WORK ENVIRONMENT.......................................................................................2 ARTICLE9.-SAFETY....................................... .................................. 2 ARTICLE 10.-DISCIPLINE AND DISMISSAL .............................................. S ARTICLE 11.-GRIEVANCE PROCEDURE.._.._.._..._......._..._.._..._..._...._......................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE ........................................................... S ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 ARTICLE 14.-SEVERANCE PAY..................... .................................................. _7 ARTICLE 15.-DEFERRED COMPENSATION..................................................................................................7 ARTICLE16.-HOLIDAYS..................................................................................................................................7 ARTICLE 17.-HOURS OF WORK....................... .......................8 ARTICLE 18.-CALL-BACK PAY .......................... ............................8 ARTICLE 19.-STANDBY PAY................................................................................................ ........................a ARTICLE 20.--INSURANCE.. .................................... ..............9 20.34 MEDICAL INSURANCE............. ................. 9 20.45 LIFE INSURANCE ............. .......................... ..............5 20.56 SHORTTEM DISASUI.........................................................................................................................9 20.11 LONGTERM DIMBILT,...........................................................................................................................9 20.79 DENTAL INSURANCE...............................................................................................................................10 20,89 VISION INSURANCE................................................................................................................................10 20.9 RELSING EMPLOYEES...........................................................................................................................10 20.10 HELTN RETIREMENTACCOUNT REOPENEIRRE;NO 6 Rolm ;mPRA .........................10 ARTICLE 21.-REIMBURSEMENT ACCOUNT..................................................................................................To 21.2 Geoup INSURANCE PREMIUMS.............................................................................................................10 21.3 MEDICALCAREREIMSURSEIME TACCOUNT............................................................................................10 21.4 DEPENDEW CARE ASSISTANCE AcxSuw..............................................................................................10 ARTICLE 22.-OVERTIME...................................................................................................................................10 ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................I I ARTICLE U.-PROMOTIONS..............................................................................................................................I I ARTICLE 25.-RETIREMENT...............................................................................................................................I I ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE VIRTH PAY..............................................................................................12 27.1 VACATim LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY L .................................................................................................................................14 27.4 WITNESS LEAVE....................................................................................................................................14 27.5 MILTARYLEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE ............. _15 27.7 SUPPLEMENTAL LEAVE..........................................................................................................................15 ARTICLE 29.-LEAVE,0E-ABSENCAE MHOUT PAY.......................................................................................is 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................Te 28.4 PERMISSIBLE U.................................................................................................................................16 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLCY.....................................................................................................................la 28.7 COMPLIANCE WITH LAW.. ............. 18 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................Is ARTICLE30.-DRIVER'S LICENSE.....................................................................................................................n ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................22 ARTICLE32.-LIGHT DUTY.................................................................................................................................20 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE U.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Engineering MOU July 1,20194 to June 30,201 Pagel ARTICLE 35 -ACTING PAY................................................................................................................................21 ARTICLE36..........................................................................................................................................................21 ARTICLE 37.-PERSONNEL FILES....................................................................................................................21 ARTICLE 38.—BULLETIN BOARDS..................................................................................................................21 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS._..._.._..._......._..._......._..._......._.....21 ARTICLE 40.-USE OF DISTRICT FACILITIES 22 ARTICLE 41.-SCOPE OF BARGAINING........................................................................................................22 ARTICLE 42.-IMPASSE PROCEDURES.... - 22 ARTICLE 43.-SEVERABILITY .................................. ..................................22 ARTICLE 44.-UNIFORMS..................... -.1.......................................................- 23 ARTICLE 45.-SUBSTANCE ABUSE POLICY...................................................................................................23 ARTICLE 46.-DUES DEDUCTIONS..................................................................................................................23 ARTICLE 47 23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES 23 ARTICLE 49................................I................... 23 ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY ..................24 ARTICLE 51.-RESIGNATION........................ ................................................................................ 24 ARTICLE52...........................................................................................................................................................24 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATURE PAGE...... - I.................................................................................. 25 EXHIBIT .............................................................................................................................................................26 OCEA MOU July 1,20196 to June 30,20221 Page li 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 Case 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 Me Engineering Unit.These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept Mesa terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to Me wages,hours,and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1.-RECOGNITION 1.1 This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District, Warned to hereinafter as Me"District,"and the Orange County Employees Association,referred to hereinafter as"OCEA." 12 The Disrld recognizes Me Orange County Employees Association as Me exclusive recognized employee organization for matters within the scope of representation for Me following classifications,as set form 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 2A This Agreement shall be binding on the District and OCEA when approved and adopted by the Disi Board of Directors. This Agreement shall terminate on June 30,202218.Any issue retention the question of exclusive representation of a recognized emplovee organization shall be brought Pursuant to the Employer EmployeeRelations Resolution IEERRI Resolution No.OCSD 99-24.TAia.AgreameMchagaH r8pe8i OR maybe is fied our he the Pat ad INAWSWOR IWAY(69)8141 R Rai days IF or to is exii,orrF ARTICLE 3.-SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its inital proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4.-OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for Me purpose of assisting Unit employees in processing grievances or investigating mothers arising out of Me application of provisions of this Agreement. The OCEA Representative must obtain authormarlon for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list of Representatives who are authorizetl to request access under this article,and shall notify Me Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations,or with the work of employees in any manner. The District reserves the fight to restrict access In certain areas designated as confidential or secure. OCEA—Engineering MOU July 1,20196 to June 30,202218 Page 1 ARTICLE S.-OCEA RIGHTS 5A The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall famish the Director of Human Resources,or designee wit 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 repres a ta0ve. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 52 Representatives shall not perform non work-related duties on work time without the poor approval a their mediate supervisor Neither the District nor the OCEA shell interfere with,'intimidate,restrain,coerce or discfimin um against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6.-DISTRICT RIGHTS 6.1 District Inherent rights,powers,functions,duties,responsibilities and authority related to is managerial or administratve character are reserved to the District in as exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive fight to consider the meats,necessity or organization a any service or activity provided by law,or administrative order,determine the mission of Its constituent departments, commissions and theme;set standards of s myce,determine the procerance and standards of selend on for employment and promotion;establish and Implement performance standards;direct Its employees; take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;mainain the efficiency of District operations;determine the methods,means and personnel by wblob District operations are to W conducted;determine the content adjoin clasaigcations;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over Its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law,or other legal sources,except to the extent tat such authority is explicitly waived by the express terms of this agreement.District exercise of Its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall W no unlawful discrimination in the application of to previsions of this Agreement with regard to actual or perceived race,color,religion,national origin,ancestry,sex,gentler,gender identity,gender expression,sexual orenafon,age,physical or mental disability,medical condition,gadded mormagon, maoal status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of the unit without regard a any protected classifsafion. ARTICLE S.-SMOKE-FREE WORK ENVIRONMENT 6.1 The District endorses and supports the right of all employees to work In a healthy and safe environment Mae of messenger!hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of Distrkt employees and their families,smoking and the use of tobacco(cigarettes,cigars,e-cigarettes I"vaping-I and related tobacco products and technologies)is not acceptable within Distrkt facilities,and may occur only in areas posted for smoking. ARTICLE S.-SAFETY 9.1 It is the tluty of the District a provitle antl mainain 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 handsome,and to follow the safety regulations and requirements OCEA-Engineering MOD July 1,20196 to June 30,20221g Page 2 struts 1 ross a of the District,and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10.-DISCIPLINE AND DISMISSAL 10.1 Discipline may occurwhen any Dfthefollowing actions am taken forjuslcausewth connector any employee in the unit verbal reprimand,written reprimand,suspension without pay;reduction in pay, demotion to a classification with a lower maximum pate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent Is not required when the disciplinary action Involves a verbal reprimand or written reprimand. 104 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves 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 employees 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 we. personally delivered or deposited in the mail,which shall be the dale of issuance. 10.5 The Notice of Intent shall contain the following:(1)a description of the disciplinary action intended and the effective date of site action;(2)the reasons for the proposed adiom(3)a copy of the charges and materials upon which the action is based;and,(A)a statement of she employee's right to regains,ether wool or in writing W the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action,the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the data of Issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Poor to the effective date of the proposed tllsciplinary action,she 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 natty the employee In writing ofthe action that shall be taken. Such action may not Involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies 8 Procedures Manual. 10.7 Dismissal shall be preceded by at least one 11)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 Didnot property or funds,fighting on the job,insubordination,ads endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action Is imposed,the employee may request is post- disciplinary hearing. The request must be submitted to she Director of Human Resources,or designee, within ten(10)business days following the affective 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 past 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 session of the General Manager shall be flnal. 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removes from an employee's personnel file twenty-four(24)months subsequent to the date of issuance,provided that there OCEA-Engineering MOU July 1,20198 to June 30,2022U Page 3 truni oaac.mo has been no recurrence of a similar incident during the period If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation hem an employee's personnel file,such documental shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grace that is not a result of performance deficiencies(for example,reclassifications,-bumping associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11.-GRIEVANCE PROCEDURE 11.1 A grievance Is any complaint that management has violated a spedbc provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not he reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure.Grievances brought by two(2) or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the OCEA,be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to ranging forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure,unless specifically agreed otherwise by the OCEA and to 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. 11A.1 Step 1. An employee will submit hisTer complaint In venting to his/her immediate supervisor or designee within ten(10)days of the occurrence of the event giving Has to the complaint,or within ten(10)days from the time that the employee became aware of such event. The superviso,or tlesignee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11A.2 Stra 2. If the grievance is not settled at Step 1,it maybe submitted in writing to the employee. Division Manager,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the contusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The writer grievance must: a) Identify the specific management act to be reviewed; b) Spsdfy how the employee was adversely affected; c) List the specl(m provisions of the MOU that were allegedlyviolated and state how they were violated; d) Simply the remedy requested;and a) Provide the date of attempts at informal resolution and the name of the supervisor or individual Involved. OCEA-Engineering MOU July 1,201%to June 30,2022U Page 4 ist,lu.t manan-me 11.4.2.1 The Division Manager,or designee,shall respond in venting to the employee within tan (10)days after Me dale the grievance Is received. 11A.3 Step 3. If grievance is not settled under Step 1 or 2,it may be presented to the employees Department Director,or designee,fro review and written response.The request for formal review must be presented on a form provided by the Distinct within five(5)days of the conclusion of Step 1 or 2,and must contain the information specified In Step 2 above. A copy of each written communication on a grievance will he filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respontl in writing b Me employee within ten(10)days after the date the presence Is received. 11AA Step4. If the grievance cannot be resolved under Step 3,it may the presented to an Assistant General Manager,or designee,within five(5)days from the date Me Step 3 finding was issued. The Assistant General Manager,or designee,shall respond in writing to the employee within tan (10)days after the date the grievance is received. 11.4.5 Sleo 5.Appeal to the General Manager,or designee,is Me final step in the Grievance procedure. If the grievance cannot be resolved under Step 4,it may be presented M the General Manager,or designee,within Me(5)days from the date the Step 4 finding was Issued.The General Manager, or designee,shall respond in writing to the employee within ten(10)days after Me date of the grievance Is received. 11.5 General provisional 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 or,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 Me time requested cannot be provided,an alternate time shall be arranged. 11.5.1 Failure of a management representative M respond wlMln the appropriate time limit shall provide a basis for Me employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it shall be considered resolved on the basis of the preceding response.The Director of Human Resources,or designee,may be petitioned in wrong to waive the step or time requirements provided sufficient cause exists. 11.5.2 Resolution may be agreed upon at any stage of the grievance process. However,the OCEA shall be notified poor M the resolution of any formal grievance matter. ARTICLE 12.-PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed M 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 Me Grievance procedure.Any reference to days in this article Implies business days. 12.2 Employees should discuss concerns regarding Issues that are not gricvable with their supervisor as soon as possible. The supervisor shall review Me situation or decision,and provide a written response within five days from the date they were ranked of the problem. 12.3 If the problem is not resolved M the employee's satisfactson,Me employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the supervisors tlecision. Upon request of either party,a meeting shall be held M define issues and establish the remedies sough. The employee shall be provided a wnden response within ben(10)days after his or her statement Is received. Time limits may be extended for cause upon mutual consent of the pelves,and the decision of the Director of Human Resources,or designee,is final. OCEA-Engineering MOU July 1,MISS to June 30,20224fg Page 5 xxI apr ranksk e ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay Increases will only apply to eligible employees In an alive payroll status on the effective data of implementation. Eligible employees will not receive retmwbvity g active Payroll status becomes effective after the date of implementation. 13.3 enM 13.3.1 Step Increase Pay-Bargaining unit employees will be eligible for Step Increase Pay based upon ceipl of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Bill e-Employees must have a proficient year-and Performance appraisal to receive a one(1)step base-building salary increase used eaming placement at step five(5). 13.3A.2 Iniible-Employees who are placed cm a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the 6me of the year-end appraisal period will remain at their current step one the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program:The performance management program Includes three(3)rating categories(exceeds,proficient,needs Improvement)for Performance appraisals. 13.3.2 Development Pay-Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed In a lump-sum cunt each pay period. Employees must have a profcient yearend performance appraisal to be eligible for the following Development Pay types: • Education-Eligible employees who obtain or who have obtained a degree of approved subjects at an aarediled college or university will receive$20.76 Per pay period br an asociate degree and$41.53 per Pay period for an undergraduate degree. The maximum amount of Education pay Is fixed at$41.53 per pay period. • Certiecation/License-Eligible employees who obtain or who have obtained a District approved certification or license will receive$15245 Per Pay period per certificateor license with a maximum of three(3)cedmcates and/or licenses.The maximum amount of ceteficston/license pay for any combination of ced'Rmates and/or licenses is fixed at $45 7222-86 per pay period. 13.3.2.1 The overall maximum Development Pay for education,certification and/or licenses is fixed at$87 256C3g per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP Is satiafactonly completed. The return of Development Pay will not be retroactive. 13A Salary Range Adlustments 13A.1 Effective the fimt pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3_01 OCEA-Engineering MOU July 1,20196 t0 June 30,2022a Page 6 emvz.t oaaa.mo 134.2 Efechve the first pay period In July 2021 employees under this Agreement will receive salary range adjustments at a flat rate of 2026%. 13.4.3 Efectve the first pay period in July 2021 U,employees under this Agreement will receive salary range adjustments at a flat rate of 3A1 ARTICLE id.•SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks mean nofiMatan when terminating employment with the District. Except for disciplinary cause,when afull-time employee is terminated by addon of the District,the employee shall be subject in will hand(2)weeks prior to the adjective sepaation date.In the event Me District does not give such notificaton,the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time,regular employees shall be entitled to eight(8)boom pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1 2 Employees in limited term or part-time positions,probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the Districts approved deferred compensation plan subject to l RS requirements,and In accordance with all guidelines for voluntary partdpation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay If their enter scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid tlme of in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holitlay,the employee will be paid a[ the employee's regular ate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times Moir regular hourly rate for all M1ours actually worked Employees may also elect to receive Holiday Compensatory Time Of on an hour for hour basis rather than receive holiday pai if requested by December 31 of the odor year on the Holiday Como Cashout Form.When a holiday occurs on an employee's regular scheduled day of,the employee will accrue compensatory tlme of for the amount of hours normally scheduled for that day Employees with a compensatory time of balance in excess of fifty(50)hours as of Me last pay period ending In October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Uni Birthday Prosldents Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas OCEA-Engineering MOU July 1,MIN to June 30,2022a4 Page a9 will ORni60a Chrisharm Day Floating Holiday" 16.2 Employees may elect one(1)day during each year as a'Floating Holiday".New employees shall be granted a!Floating Holiday'on a pro ads basis in the first calendar year of service per the following table: Him Date peasant Is Quarter(January-March) 100% 2^^Quarter(Apol-June) 75% 3b Dueler(July-September) 50% 4t Quarter(October-December) 0% 16.3 Employees must use the'Floating Holiday within the calendar year it is granted Every effort will be made W approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17.-HOURS OF WORK 17.1 For award keeping and accounting purposes,the'workweek"for full-time employees is 40 hours per 188- hour period,W 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 8-1-our days each workweek(10/80),four 10-hour days each workweek(8180),or twee 12-hour days and one 4- hour day each workweek(7180), The starting and ending times of individual employees workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice In a nine-hour shift,and three times for a shift of room than ten hours. Meal and rest periotla may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports W work as scheduled and was not marked! Our their hours had been changed,he car she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sole discretion,change an employee's work schedule with thirty(30)days will space to the affected employee. ARTICLE 18.-CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice,and the employee has completed his or her normal work ant and left the work station,or when poor nonce is given but the work begins an the same day at least three boors after completion of the regular shift,the employee shall receive a minimum of three M1ours of call back pay. The three M1ours 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 191 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 immoral meant to work.Standby assignments shall had be made on a voluntary basis.A volunteer standby list shall he 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 volunteere,the District shall assign standby by job classlfcation and work location from employees who are competent and experienced on a OCEA-Engineering MOU July 1,20196 to June 30,2022U Page 8 iii r oa0io.mo seasonal basis.An employee placed on standby shall be compensated at the rate of ihreafive hundred fall five 34500)dollars per week,and shall receive Call Back pay when they are actually called to work. ARTICLE 20.-INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 NI Insurance coverage shall become effective on the first day of the month following data of hire, regardless of hire date.An open enmirm nt period shall be held annually. 20.3 Medical Insurance 20.3.1 The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan and a Preferred Provider Organization(PPO)medical insurance plan. 20.3.2 Regular,full-time employees: 20.3.2A The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee ai dependent and full family premiums for the HMO and PPO matlical plans.Any change in insurance rates shall be shared equally in same ratio as the District and employees currendy pay premiums. Before the renewal of any District's sponsored health insurance plan, the paNes agree to meet and confer as to changes in the plan. 20.3.3 The District may reopen negotiations at anytime during the farm of the MOU fo address the impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 Life Insurance The District shall pay the full premium for$50,00D term life insurance on each employee. 20.5 Short Tenn Disability The District shall provide a non-work related smart-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twerr ix(26)weeks following a fourteen(14)calendar day waiting period. 20.6 Long Term Disability 20.6.1 The District shall provide a non-work related long-term disability indemnity plan that pays ti trials of the employee's rate of pay In effect at the time of such disability,not to exceed $5,000 per month,up to age 65,fallowing a 90-day waiting period of continuous disability,at such time that an employee completes five(5)years of service. Mull For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65.For participants age 65 and alder,the maximum period of payment is specified.The specified periods and additional information about coverage is included In the District's long-term disability plan contract accession on the intranet, 20.6.3 No combli atlon of disability or sick leave pay shall result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 01-Engineering MOU July 1,20196 to June 30,2022U Page 9 imIm .1 twout-Oa 20.7 Dental tnsu The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision Insurance plan for regular,full-time employees and eligible dependents. 20.9 Retinna Employees 20.9.1 The District shall pay,for employees hired poor to July 1,1988,two and one-half(2.5)months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.9.2 In the event the District adds additional aptional insurance plans,the Disorder share of the premium shall be the same as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the District's share of Me premium shall be Me same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are oftsel by$lO per month for everyfull hear of documented ORq:salem-we dd nomiscuss this at fee continuous service up to a maximum of 25 years or$250 per month.Employees M1ired on or tone.cut we have updated this larguoga w align uflh after August 1.2011 shall not be eligible for the retiree medical health premium offset. fri scurrent practice(house awarg).Are you o8 unh mis updxtee 20.10 Health Retirement Account(HRA)Reopener TM1e District and the Group agree to reopen this Agreement to discuss funding M1 n funding,understanding the District Is not making any commitment to District funding. ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of Me 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 radial Flexible Spending Accounts,employees must refer to the plan booklet available in Me Human Resources Department. 21.2 Group Insurance Premiums Group Insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds In a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for Payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is M provide a method through which the employee can accumulate pre-tax funds In a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22.-OVERTIME 22.1 Employees shall be Played as soon as practicable after Me District decides upon the need for overtime or additional work.The District may require Me performance of overtime. In Me event no qualified employee wishes to work oveNme,District's management may select employees with the ability b perform Me work OCRA-Engineering MOU July 1,201%to June 30,2022U Page 10 e xi r moose-do, by inverse seniority.District managers shall attempt W evenly disthbua overtime among employees based upon an employee's ability to perform the oveNme work. 22.2 For the purposes of oveNme calculation,all time changed to unscheduled sick leave shall not be counted as time worked. Pay for oveNme time shall not occur until after actual work time of forty(40)hours in a seven(])day workweek is reached. ARTICLE 23.-PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period fallowing six months of employment without a break in seoAce. Extended absence without pay,short-term and long-term disability and Workers Compensation leave does not provide an opportunity to judge an employees'capability b meet performance expectations for a Poston,and thus the tlme spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired fallowing 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 fine discretion of the Distinct without recourse W the Grievance Procedure, 23.3 Employees who are reassigned or laterally transferred will serve a probationary period a six months. The 'probationary period*shall not divest an employee of hisdrer property rights in hislher former position. Rejection of probation during this period shall result in the employee reverting to hisrher former assignment andlor position. ARTICLE 24.-PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position shall be filed as an open or promotional opportunity or recruitment.Whenever the District intends W fill a position by promotion,the District shall post the opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices small be posted on the District's intrenet. 24.2 A promoted employee shall serve a promotional probationary period lasting of least until the first day of the Pay period six months after the effective data of the promotion.At any time during the promotional probationary period.an employee may be returned to his or her previous position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is promptetl during his or her initial probationary period,the period shall be extended until at least the first day of the pay period six months after the effective date of me promotion. 24.3 Promoted employees will receive the equivalent of a step Increase In pay,not to exceed the top of the range for the new classification or the minimum rate of the new dassification whichever is greater. ARTICLE 25.-RETIREMENT 25.1 The District shall continue participation In the Orange County Employees Retirement Syslem(OCERS), wherein all full-time employees are considered members. The fallowing retirement program is in effect pursuant to the contact between OCERS and the District. 25A.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average a anings,past and future service. Pagan, OCEA-Engineering MOU July 1,201%to June 30,2022U Page 11 icc2ll2.1 mani60e 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue to contract with OCERS to provide the 2.5%Q 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provitle the 1.667%®57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(W)months average earnings,past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The District will contract with OCERS to provitle the 2.5%Q 67 benefit formula(Plan U-PEPPA)based on the highest consecutive thirty-six(36) months average comings,past and future service. 25.1A.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes In accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their boom between 6:00 p.m.and 6:00 a.m.and who actually work that shift shall receive a shift differential of$2.50 Par hour. ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as othervise provided,regular full-time employees same vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Serelce Hours4$IweeNy Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 1" In year 14 5.85 152 In year 15 6.16 160 In year 16 6A6 168 In year 17 6.77 176 In year 18 TM 184 In year 19 7.39 192 In year 20 and over 7.89 200 27.1.2 Part-time employees accrue vacation leave on a pro-mW basis as set font In District Policy. OCEA-Engineering MOU July 1,20196 to June 30,2022U Page 12 xl I u .1 Ogni6OU 271.3 ,bays-sgaq-Vacation 1=may only be utilized in increments of one-,,,herbalt hour or more. Vacation leave is accrued for all paid hours,Including hours actually worked and hours In a paid- leave payroll status. 2.1.4 When unpaid absences occur,vacation leave accruals will be applied by siralght proration of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 boors 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 boom,it must be used prior to said December date,all other remaining M1ours in excess of 200 will be paid to the employee in the that pay period in January at the employee's then current hourly rete of compensation. 27.2 Sick Legg 27.2.1 Deflnitlon:Sick leave Is an Insurance or protection provided by the District to be granted!to employee,in circumstances of advereity 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 a a family member as hereinafter defined;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 2301(a). Temporary employees shall receive sick leave benefits as required by State law. 2722 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)M1ours for each biweekly pay period of continuous service,(ninety-one(91)form 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)boors per year),beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a prewar,basis as set forth in applicable District Policy. 27.2.4 When unpaid absence,occur,sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked,and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued lM1rough the last Pay Period ands inef October at their current houdy rate according to the following payoff achedule or a,specified in a Memoranda of Understanding. Accrued Sick Leave Roura Rah of Payoff 0-100 0% 101-240 25% 241560 36% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule.Employees who retire or decease with twenty(20)years or more of service shall be paid at the one hundred percent (100%)rate for all accrued and unused sick leave.Employees who refire or decease with less OCEA-Engineering MOU July 1,201 of to June 30,2022U Page 13 emvz.t oama.mP than twenty(20)years of service will be paid at the seventy-five percent(75 k)rate for all accrued and unused sick leave. 27.2.7 Pmmiiumble Uses-Sick leave may be applied only to: A. Absence due to Illness,injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by Me employee's supervisor. C. Absence for the care of the employee's father,father-in-law,mother,mother-in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent, grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to a jobrelated injury. E. Absence all to an employee who is a victim of domesfic violence,sexual assault,or stalking,for the purposes described In Labor Code sections 230(c)and 230.1(a). 27.2.8 General Prov s-To qualify for sick leave pay,me employee must noddy the District at or In advance of the time the employee is scheduled to report for tlury.Minimum charge to the employee's sick leave account shall be one- uaderhour� increments. Human Resources and department management shall be responsible for coMol of abuse of the sick leave privilege.If notified in advance,the employee may be required.at any time,to furnish a cordials Issued by a licensed physician or nurse,or other satisfactory evidence of illness; however,for absences often 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 dodoes 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 smious heats condition,as defined in the Family and Medical Leave Act(-FMLA")or Me California Family Rights Act("CFRA'),the ceNticffilon requirement shall comply with the provisions of these Ads. 27.3 Jury DUN Leave 2.3.1 Any full-time,Including probationary,employee who is called hall duly shall,upon request on prescribed farms,be entitled to his or her regular pay for those hours of absence due to performance of Mejury duty for a period up to twenty-two(22)working days. 27.3.2 Prim to jury tlury service,each employee must complete a time oR request through the District's timesheel system and provide a copy of the summons to his or her supervisor.To be entitled to twelve 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%of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27A.1 Any full-time,including probationary,employee,who is required to be absent from work by subpoena properly issued by a court,agency or commission legally empoweretl to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time off request.be entitled the time necessary to comply with such subpoena,provided any fees reserved for such service,exclusive of mileage,are submitted to Me District for deposit in the General Fund of the District. OCEA-Engineming MOU July 1,201%to June 30,2022U Page 14 B9I2L2.1 OROi6Om 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request torn in order to be eligible for pay for such absence. To be doubled 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 days service,exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approval by the Human Resources Department and shall state the date when it is assured W begin the leave-of-absence and the data of anticipated return. A copy of the optem requiring such military service shall be submitted whir the request. 27.6.2 Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 shall govern military leave. In general,current law provitles that an employee having one(1)year or more service with a public entity Is shifted to military leave with pay not exceeding thirty(30)days par year if tie employee is engaged in military duty ordered for purposes of arrive military training or encampment An employee who is required to attend scheduled service drill periods or perform other Inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time to attend the scheduled reserve drill penods or to perform other Inactive poll period obligations. Employees who anticipate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed W accommodate the required time off. 276 Bereavement Leave 27.6.1 Using the online time oft request system,any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six(36)hours of paid time for the death or funeral of an Immediate family member. Bereavement leave shall be used within six(fi)months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father,father-in-law,mother,step-mother,mother-in-law,brother,step-brother,sister,step- sister husband,wife,domestic partner,biological child,adopted child,step-child,child of a central partner.grandchild.grandparent faster parent taster child.legal guardian,or any family member with whom to employee resides. With reasonable cause employees may be required to famish evidence satisfactory W the District of the family member death and the emplovee's relationship W the deceased family member. Employees may submit requests far bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny Such reguestS. 21] Social.me.hil Leave 27.7.1 Regular full-time empbyees In the bargaining unit shall be granted Supplemental Leave In accordance with the fallowing schedule in the first pay period in July: Years MServlge 5-9 10-14 15-19 20-24 25e Supplemental Leave Hi urn 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in acceptance with the following guidelines: 2]].3.1 Supplemental Leave may be used in one-quarter(0.25)hour increments. 27.1.3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 2]].3.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash OCEA-Engineering MOU July 1,20196 to June 30,202244f Page 15 emvz.t oauaa.mp out or eligible for any mandatory payout. 21].3.5 Employees who cease to be part of Me bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.T3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rota basis per Me following schedule: HlreRranaler Dace Percent July-September 100% Odober-December 75% January-March 50% April-June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It lathe policy of the Dial grant employees leave-M-absences without pay under certain circumstances and in accordance wit state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-al-absence.Employees will not be granted an unpaid leave of absence prior to exhaus0ng all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Dial Leave)IFMLA(Family and Matlical Leave Pd)ICFRA (California Family Rights Ad)for their own serious health condition, 28.2 Using the prescribed forms,approved by District management,any full-time,including probationary,or part-fume employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250) hours of service,may be granted an FMLA or CFRA leaveat-absence without pay,not to exceed twelve (12)weeks in a rolling twelve(12)month calendar period A'rolling'beelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forma in all instances where an employee is absent without pay for more than Me (5)consecutive working days,or for absences often(10)working days or more when using paid sick leave acmals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying pumoses other than to employee's own serious health condition shall be required to use all accou ls,before unpaid leave Is granted. Paid time off will not acme during any pay period that an employee is absent without pay for more than one(1)My. 28.3.2 Paid time oR accruals may be used for Me care of the employee's father,step-father,father-In-law, mother,at,mother,mother-in-law,brother,step-brother,sister,step-sister,husband,wife, domestic partner,biological child adopted child,stepchild,foster child,legal wal child M a counsel partner,grandchild,grandparent,foster parent,legal guardian,or any family member with whom to employee resides. 28.4 Permissible Uses 28A.1 FMIA Leave.FMLA leave may be used for: 28.4.1.1 The birth ofa child onto carefora newborn ofan employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child; OCE t-Engineering MOU July 1,MISS to June 30,20E244 Page 16 vmqu . oaaa.mo 28.4A,3 The care for the employee's father,step-father,father-in-law,mother,slap-mother, mother-in-law,brother,step-brattial sister,step deter,husband,wife,biological child,adopted cold,stepaolU,foster child,legal word,child of a domestic padner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined In the Act, 28AAA The employee's own serous health condition Mat renders the employee unable to perform the essenfial functions of his or her position,including incapacity due W pregnancy: 28.4.1.5 A qualifying exgency arising out of the fact that an employee's family member is on covered active duty or called W covered active duty status In the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or amval arrangements for the service member. 28.4.1.6 The care for the employee's family member or"nut of Mn*service member of the United States Arrant Forces who has a serious Injury or Illness incurred in the line of duty while on a,Om military duty.This leave may consist of up to twentysix(26) weeks of unpaid leave during a single hvalve(12)month Wood 28A.2 CFRA Leave.CFRA Leave may be used for. 28.4.2.1 The same purposes as FMIA Leave,including the care of a domestic partner or child of a domestic partner,and shall run concurrently with FMIA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness Incurred In Me line of duty. Howevep Incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28A.3 General Provisions:Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28A.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28A.5 Medical and Dental Premiums During FMIA and CFRA Leave,the District shall pay for medical and dental benefits at the me level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-psyment,in full,whin sixty(0)days of the invoice date will result in Idea of group coverage.Coverage will be reinstated upon return to active employment. 28A.6 Reinstatement Upon expiation of FMLA or CFRA Leave,the employee shall be reinstated to the same or a comparable Wagon,unless the employee would not otherwise have been entited to that position for reasons unrelated to such leave(e.g.,lapi in which case the District's obligation to continue health and dental or other benefits shall cease. 28A.7 District Emplovmentof SoouseslDometi PaMem 28.4.7.1 FMIA Leave.Married employees shall be limited to a combined WWI of twelve(12) eeks FMLA or CFRA Leave in a mlling N ive(12)month calendar period far the care of a parent or newly born or placed child. OCEA-Engineering MOU July 1,M1 Of to June 30,2022U Page 1] Btht,u .1 uni6Oq 28.4.7.2 CFRA Leave.Manned employees and employees in domestic partnerships will he limited to a combined total of twelve(12)weeks CFRA leave in a rolling deal month calendar period for the rare of a parent oFnewly born or placetl ph11111 _,_.--- casm rentad Dx27:salmon,we numednis avant, 28.5 General Leave laryaage it car abmcc'mm misla a cards tp MPe mantem May are only IImMtl b e smbineE 12.of 28.5.1 Employees who have exhausted all d time off accruals may st to be general me meant to Ladmg,NOT me care d a parent please P Y paid yreque 9 C assume me group le ON all she merge. leave-of-absence after r District management to attend to personal merles or for FMLA or CFRA qualifying events after Me expirations of previously authorized leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure W submit a monthly co-payreenq in full,within sixty(60)days of Me Invoice date will result In loss of group coverage.Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policv 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Relurould-Work medical evaluation. 28.6.2 If It is determined that the job demands of the position last held by the employee are not compatible with Me employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADAFEHA)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 placementmedical evaluation for the alternative job. 28.6.3 If it is determined that the jab demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated H the employee Is disabled within Me meaning of ADNFEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or Me employee is not willing to return to work,the employee shall be,re-clasaged as medically disqualified and not permitleltowork. 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 Me employee left for personal reasons. 28.6.4 Bridae of Service If an employee is dismissed par Section 28.6.3,and then is rehired to a Position within the District within one(1)year,the District shall bridge the employee's sernce date. Bridging of sarnc s procedures involve adding the total number of days away from work to the employee's original date of hire, 28.6.5 Failure to Return to War, If,upon the expiration of FMLA or CFRA Leave,or any District approvetl extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shell he considered to have automatically resigned from his or her position.In such cases,the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA.ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied the provisions of law shall govern. OCEA-Engineering MOU July 1,20196 to June 30,202244 Page 18 torru .t Oa0i6Op ARTICLE 29.-CLASSIFICATION STUDIES 29.1 An employee who believes hiffiher position is not properly classified may submit a written request fo the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request In writing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be concuded twice a year in November and during the budget process;therefore,classification study requests shall be submitted October Vt 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 dudes and responsibilities of all employees are appropriately allocated within fine classification structure. 29.2 YY-Ridin 29.2.1 All classification study findings regarding existing classifications are subject fo 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 classifiw0on study shall be Implemented In the that pay period immediately following the completion of the study,unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event,the recommendations shall be Implemented In the fund pay period immediately following authorization by the Board. 29.2.2 In the event the close and responsibllXles of a position are allocated to a laver paid dassification, 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 rear 45 2years fi-10 3 eam 11-20 4years 20 or more 5yeam 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staling requirements,organizational stradom or"bumping"associated with layoffs. Y- rall shall not api in cases involving disciplinary actions or voluntary changes to a job dassification with a lower maximum rate of pay. 29.2.4 The Y-ate shall remain In effect until the salary ange for the new classification equals or exceeds the employee's Y-rated salary,or until the tern of fine 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 dassmcation,the employee shall be placed at the lop of the range. Employees become eligible for merit increases and range adjustments when the Y-ate Is no longer in effect. 29.3 ZZ-Reono 29.3.1 Employees allocated to classificetions with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study resuts Implemented effective July 12, 2002 will have their salary remain unchanged(z-rated)until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification,and the incumbent is promoted fo that level, his or her salary will be placed at the step of the new range that Is nearest a one-step Increase, not fo exceed the maximum rate of pay. OCEA-Engineering MOU July 1,201 of to June 30,2022U Page 19 fi9]2L2.1 mar i60a ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notify their supervisor and Me Human Resources Risk Management Division Immediately upon recelpt of any suspension or revocation of their California Drivers License privileges. Failure to do so could result in disciplinary action up to and including separetiism 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion,an attempt shall be made to place the empbyee in n equal or lower level position for which he or she is qualified Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A&B licenses that are specifically enquired!by the District. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant,budgeted posdons 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 lob restructuring,reorganizatktn or due M lack of work. 31.2 The layoff procedure outlined below shall be followed if Me District finds it necessary to layoff personnel who were hired after January 1,2000 and for any layoffs which occur after November 1,2002. 31.3 If,in Me sole discretion of District management,personnel reductions are necessary,layoff abler and recall lists shall be developed based upon job cassifcation,priority of function,lob performance,Individual qualifications and majority. The OOEA and employees subject M layoff shall be provided with at least two weeks nomcetion in writing,whenever possible. 31.4 Employees in classifications subject W layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to Me Human Resources Department within five(5)days of receipt of the Layoff Notice. Thesalaryofanemployeewbovoluntadly demotes shall be unchanged,except that it may not exceed Me maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencng personnel reductions,and shall he maintained for a period of two years from the date of layoff.Individuals shall be placed on the list in the inverem order of layoff,sc 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 by of the list That individual must respond to the offer within five days,or the offer shall be made to the next person on the list An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department Informed of their current address,or where they may be contacted. ARTICLE 32.-LIGHT DUTY 32.1 An employee who Is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at Me discretion of the District. Light duty may consist of duties other than Moss normally performed by Me employee antl that are within Me employee's medical restrictions.An employee assigned to light duty wall be pad the regular wage rate for the job classification to which he or she was assigned poor being temporarily disabled. OCEA-Engineering MOU July 1,WIN to June 30,20E244 Page 20 emvz.t makumn ARTICLE 33.-MEDICAL EXAMINATION 33.1 When there Is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety,or Mat of others,the District may require that employee to be examined or evaluated by a health care provide, The purpose of such examination must be lob 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'a condition and addressing his or her ability to competently perfomn the duties of the position. This Information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individuals continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall he relmbursed at Me current IRS ate. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform to duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the hour elghl(81),and continues until the assignment ends or the six(6)month limitation has been reacted at which time a determination will be made as to whether Me posMon should or should not he posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour eligibility period may be waived at the discretion of Me General Manager. ARTICLE 36. (This Article mentlonall,left blank.) ARTICLE 37.-PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in Me Human Resources Department during the normal office hours of the Human Resources Department,by appointment Employees who wish to correct allegedly erroneous information in their file,or request Mat items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request In wall to the Director of Human Resources,or designee. It is the responsibility of each employee to keep Me personal Information in his or her file current including home address,telephone number and person to contact in an emergency. ARTICLE 38.—BULLETIN BOARDS 38.1 The OCEA may use the bulletln 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 compilory to the District,its employees,oficem or Directors may he posted;do)nothing Posted by the District may be removed;(c)the OCEA shall remove its notices after a reasonable length of rime;and(d)only a reasonable number of notices shall be posted. ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 Amaximum ofthme(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meat and canter sessions at Me bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. OCEA-Engineering MOU July 1,20195 to June 30,2022U Page 21 iferdu.t owaa-me 39.2 The OCEA shall provide the Director of Human Responses,or designee,with the names of employees requiring meet and confer release time In advance of the meet and confer session. The release time shall be granted provided that the needs of Me Dial permits the time away from assigned week. ARTICLE 40.-USE OF DISTRICT FACILITIES 401 District facilities may be used by the OCEA with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41.-SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge Met during the negotiations,which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects will the scope of representation. Therefore,the District and the OCEA,for the term of this Agreement,except as otherv'ise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an Impasse exists In the meet and writer process,the party ee 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 mceling shall be scheduled and held between the parties within fourteen(14)opentlar days or as soon es practicable to: 422 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not rewlved,to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute to Me State Mediator and Concillatlon Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. 43.3.2 Fact-Fin limmu If the paNes fail 0 resolve the dispute through mediation,the parties may agree to submit the Impasse to fact finding as seen as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions:If the paNes fall to resolvable Impasse,the dispute shall be single the District's Beard 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 Me Spend to resolve the impasse shall be final and binding. ARTICLE 43.-SEVERABILITV 431 Notwithstanding any other provisions in this Agreement,in the event that any article,section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and OCEA shall meet and confer on the affected price,section or subsection. In such event,all other phinea,sections or subsections of this Agreement not affected shall continue In full force and effect. OCEA-Engineering MOU July 1,MISS to June 30,2022U Page 22 surd" .1 Oave-me ARTICLE 44.-UNIFORMS 44.1 The District shall provide and maintain ten(10)di ifOmn pants and shirts,which may ideal the name of the employee and Districts seal,at no seat to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 NI employees who are issued uniforms must wear them during the performance of their regular duties. Met clothing appropriate to the occasion,as detemined by District management,may be wpm when attending business meetings. Faturetowear required clothing,shoes and safely equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members.The District may adopt or Implement miss,regulations and policies to be In compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation(DOT)populations 452.1 Every driver who operates a cummemlel mot"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 Antii-Dmg 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 tote in CFR Part 40. 45.3 District's Substance Abuse Policy 45.3.1 Any employee may be subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 65.•DUES DEDUCTIONS 45.1 The District shall deduct from each regular paycheck and remit to OCFJ the dues,initiation fees and assessments for each employee who voluntarily authol 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. 462 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition,the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally teh blank) ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the Distinct agrees it shall not lockout employees in this bargaining unit,and OCEA agrees that it shall neither advocate,encourage or participate In any strike,Including sympathy strike,or work stoppages,nor amoral employees to refrain in whole or In part from the full,faithful and proper performance of their duties of employment. ARTICLE 48. (This Article Intentionally left blank) OCEA-Engineering MOU July 1,201%to June 30,2022ag Page 23 emvzt oaao.mo ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51.-RESIGNATION 51.1 Voluntary wriften termination of employment with the District Is automatically deemed imewwable after venty-Mro Q2)hours from the receipt of the resignation,except by approval of Me Dlracim of Human Resources,or designee. The District may accept wr Cng any emDlovee's verbal or wrften resignation at any time and deam such resignation irrevocable. ARTICLE 52. (This Article Intentlonally left blank) ARTICLE 53.-LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two,(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a III Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCEA-Engineering MOU July 1,MISS to June 30,2022a11 Page 24 B9I uL meni60e SIGNATURE PAGE 20196-2022U MEMORANDUM OF UNDERSTANDING BETWEENTHE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT Executed: OCEA ENGINEERING UNIT ORANGE COUNTY SANITATION DISTRICT @e-6uNaffezSal eon Areoave,Labor Relatlons Laura Drottz Kalty,Lead6Hief Negotiator Representative Robert(Mickey)Macy,Senior Construction Cella Chandler,Director of Human Resources Inspector X Orma Andrawsdan9rel,Adminisbative Laura Maravilla.Human Resources&Risk AssistoMConstruclion Inspector M�Andmw4Ww4msga4Wman Reseuron AnalyatSaeewiser Andrew Nau Human Resources Supervisor SuaewiaerAlana� daxim.AguilarThvs DeVries,lcH.-ryal SesxmiRaaisioelPrincioal Human Resources Analyst Larma4cingerSteohanie Barron,Senior Human Resources Analyst OCEA-Engineering MOU July 1,201%to June 30,20224B Page 25 it vu . ..r.me FahlbN A ENGINEERING UNIT M.Uee Efto EReu1M yy 8 UI- 19 n4ul-0 o Q4uM21 GlaaYullon Gretle MIN NW( MIN MW( YIN MRII BentC u...nlnap. d70 SSS35 $Ki]rO.Z S SOFb0.SL2 SSiJ543.4 Engineenng Psecaale SGi d39g@$ Bs2s9iZ4 Sµ61u CoeE on lnagalor §6Wgp Q0 $ WAf 2 $62AB08.0 EFAg55.9 W.dB< 3 $G1Ag5].5 ] 0 0 0 B En0lnaenng Aulslon111 SBzaeagag B<472 ] Engineenng Asslslanl l 59dE636.5] �"1 $dN2ilZZ fGR29d.�.9 Sgs.2so?2 OCE -Engineering MOU July 1,MI%fU Jum 30,2022a Page 26 09]2)12.I OROi0O0 STEERING COMMITTEE Melting Dat2 TOBE.Or Dir. 08/28/19 08/28/19 AGENDA REPORT Item Item Number 7 14 Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS — LOCAL 501 CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Loral 501,for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. BACKGROUND The MOU between the Orange County Sanitation District (Sanitation District) and the International Union of Operating Engineers Local 501 (Local 501) bargaining unit that became effective on July 1, 2016 expired on June 30, 2019. Local 501 submitted its initial proposal for a successor MOU on February 27, 2019. Local 501 and the Sanitation District have met and conferred in good faith twelve (12) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items proposed, except salary and wages, had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to Local 501 including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counter proposal to Local 501 on July 15, 2019. Local 501's membership ratified the proposal by majority vote on July 24, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent. • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements • Maintain positive employer-employee relations • Provide professional growth and development Page 1 of 4 PROBLEM The MOU between the Sanitation District and the Local 501 bargaining unit that became effective on July 1, 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to Local 501 on July 15, 2019, including three-year contracts with a 3.0% salary increase for each year of the contract. Local 501 distributed the proposal to its membership for voting and Local 501's membership ratified the proposals by majority vote July 24, 2019. RAMIFICATIONS OF NOT TAKING ACTION Labor instability Possible impacts to morale • Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with Local 501 from the Steering Committee and the Board of Directors. The Local 501 meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019— Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION Local 501 is the recognized employee organization certified to provide exclusive representation overwages, hours of work, and otherterms and conditions of employment for the Sanitation District's 200 non-exempt Operations and Maintenance employees. The MOU between the Sanitation District and Local 501 expired on June 30, 2019. Based on Board direction, the Sanitation District issued a counter proposal to Local 501 on July 15, 2019, including three-year contracts with a 3.0% salary increase for each year of the contract. Local 501 distributed the proposal to their membership for voting and Local 501's membership ratified the proposals by majority vote on July 24, 2019. A full redlined version of the Local 501 MOU is attached for review. A summary of the key changes to the MOU are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022. 3. Article 13, Salary Adjustments and Compensation: Salary: Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3.0% Salary Increase, effective the first pay period of July 2020; Year 3—3.0%Salary Increase, effective the first pay period of July 2021. Development Pay: Associate degree - $25.00 per pay period; Undergraduate degree - $50.00 per pay period; Certification/License - $15.24 per pay period per certificate/license with a maximum of three (3). 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 3181 of prior year. 5. Article 17, Hours of Work: Employees' cleanup period designated as last fifteen (15) minutes of shift. Power Plant Operators grouped under Operations for Hours of Work. Reopener to discuss Power Plant Operator job family and staffing of Central Generation. 6. Article 19, Standby Pay: Standby Pay increased to five hundred (500) dollars per week. Side Letter language incorporated regarding standby requirements for Collections System staff. 7. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA)for all employees. 8. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. 9. Article 29, Classification Studies: Reopener to discuss Mechanic series pay grade. 10.Article 44, Uniforms: Boot allowance increased from $170 to $200 annually. 11.Article 46, Dues Deductions: Language cleanup to align with current law. 12.Article 47, Agency Shop: Language cleanup to align with current law; article title changed to "Union Dues". Page 3 of 4 13.Article 49, Shift Changes: Shift bidding process updated to allow employees to bid on any shift including their current shift. Employees will be verbally notified of shift location before accepting shift bid; OCSD may inform employee that their work location will not be changed. 14.Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. 15. Article 52, Operator Certification: The District will reimburse Operations and Maintenance employees for required certifications upon receiving a passing score. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 16— Holidays Article 25— Retirement Article 27— Leave-of-Absence With Pay Article 28 — Leave-of-Absence Without Pay FINANCIAL CONSIDERATIONS The total cost is $4,309,281 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Resolution No. OCSD 19-10 • Local 501 MOU (redlined version) Page 4 of 4 RESOLUTION NO. OCSD 19-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 501, FOR FISCAL YEARS 2019/2020, 2020/2021 & 2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors') of the Orange County Sanitation District (the "District') authorized the General Manager to sign the Memoranda of Understanding with the International Union of Operating Engineers Local 501 (referred hereinafter as"Local 501"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOU"). WHEREAS, prior to the expiration of the 2016 MOU on June 30, 2019, Local 501 requested to meet and confer regarding a successor MOU. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of LOCAL 501 have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS, the parties have modified the 2019 MOU between the District and Local 501 to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOU has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOU. • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOU: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2— 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3— 3.0% Salary Increase, effective the first pay period of July 2021. o Development Pay: • Associate Degree: $25.00 per pay period • Undergraduate Degree: $50.00 per pay period • Certification/License: $15.24 per pay period per certification/license with a maximum of three (3). • Holidays has been modified as set forth below and as reflected in Article 16 of the MOU: OCSD 19-10-1 o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31 st of prior year; housekeeping changes. • Hours of Work has been modified as set forth below and as reflected in Article 17 of the MOU: o Employees' cleanup period designated as last fifteen (15) minutes of shift. Language cleanup to reflect that Power Plant Operators are grouped under Operations for Hours of Work. o Reopener to discuss Power Plant Operator job family and staffing of Central Generation. • Standby Pay has been modified asset forth below and as reflected in Article 19 of the MOU: o Standby Pay increased to five hundred (500) dollars per week. o Side Letter language incorporated regarding standby requirements for Collections System staff. • Insurance has been modified as set forth below and as reflected in Article 20 of the MOU: o Reopener to discuss establishment of Health Retirement Account (HRA)for all employees. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOU: o Housekeeping changes to remove outdated language. • Leave-of-Absence With Pay has been modified as set forth below and as reflected in Article 27 of the MOU: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pa v has been modified asset forth below and as reflected in Article 28 of the MOU: o Housekeeping changes. • Classification Studies has been modified as set forth below and as reflected in Article 29 of the MOU: o Reopener to discuss Mechanic series pay grade. • Uniforms has been modified as set forth below and as reflected in Article 44 of the MOU: o Boot allowance increased from $170 to $200 annually. OCSD 19-10-2 • Dues Deductions has been modified as set forth below and as reflected in Article 46 of the MOU: o Language cleanup to align with current law. • Agency Shop has been modified as set forth below and as reflected in Article 47 of the MOU: o Language cleanup to align with current law; article title changed to "Union Dues". • Shift Changes has been modified as set forth below and as reflected in Article 49 of the MOU: o Shift bidding process updated to allow employees to bid on any shift including their current shift. Employees will be verbally notified of shift location before accepting shift bid; District may inform employee that their work location will not be changed. • Resignation has been modified as set forth below and as reflected in Article 51 of the MOU: o The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. • Operator Certification has been modified as set forth below and as reflected in Article 52 of the MOU: o The District will reimburse Operations and Maintenance employees for required certifications upon receiving a passing score. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and Local 501 for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with Local 501 for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. OCSD 19-10-3 PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-10-4 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-10 was passed and adopted at a regular meeting of said Board on the 28th day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 281h day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-10-5 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT July 1, 20196through June 30, 2022U 89715511 ORW 032 TABLE OF CONTENTS ARTICLE 1. RECOGNITION............................................................................................................................3 ARTICLE 2. DURATION... ......................................................................................................................3 ARTICLE 3. SUCCESSOR AGREEMENT.......................................................................................................3 ARTICLE 4. LOCAL 01 ACCESS...................................................................................................................3 ARTICLE 5. LOCAL W1 RIGHTS....................................................................................................................4 ARTICLE6. DISTRICT RIGHTS.......................................................................................................................4 ARTICLE T. NONDISCRIMINATION IN EMPLOYMENT.................................................................................4 ARTICLE B. SMOKE-FREE WORK ENVIRONMENT......................................................................................5 ARTICLE9. SAFETY........................................................................................................................................5 ARTICLE 10. DISCIPLINE AND DISMISSAL....................................................................................................5 ARTICLE 11. GRIEVANCE PROCEDURE.........................................................................................................6 ARTICLE 12. PROBLEM SOLVING PROCEDURE...........................................................................................8 ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION....................................................................a ARTICLE 14. SEVERENCE PAY..................................................................................................................1010 ARTICLE 15. DEFERRED COMPENSATION..................................................................................................10 ARTICLE 16. HOLIDAYS..................................................................................................................................10 ARTICLE 17. HOURSOFWORK.....................................................................................................................12 ARTICLE 18. CALL-BACK PAY.......................................................................................................................13 ARTICLE19. STANDBY PAY..........................................................................................................................14 ARTICLE20. INSURANCE...............................................................................................................................14 ARTICLE 21. REIMBURSEMENT ACCOUNT.................................................................................................Is ARTICLE 22. OVERTIME.................................................................................................................................16 ARTICLE 23. PROBATIONARY PERIOD........................................................................................................17 ARTICLE 24. PROMOTIONS ......................................................................................................................17 ARTICLE 25. RETIREMENT... .....................................................................................................................17 ARTICLE 26. SHIFT DIFFERENTIAL...............................................................................................................18 ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY............................................................................................IS ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY.....................................................................................n ARTICLE 29. CLASSIFICATION STUDIES.....................................................................................................25 ARTICLE 30. DRIVER'S LICENSE...................................................................................................................26 ARTICLE 31. LAYOFF PROCEDURE..............................................................................................................26 ARTICLE 32. LIGHT DUTY...............................................................................................................................27 ARTICLE 33. MEDICAL EXAMINATION.........................................................................................................v ARTICLE 34. MILEAGE ALLOWANCE...........................................................................................................27 ARTICLE 35. ACTING PAY..............................................................................................................................27 ARTICLE 36. PERFORMANCE REVIEWS......................................................................................................28 ARTICLE 37. PERSONNEL FILES...................................................................................................................28 ARTICLE38, BULLETIN BOARDS..................................................................................................................28 ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS.........................................................28 ARTICLE 40. USE OF DISTRICT FACILITIES................................................................................................28 ARTICLE 41. SCOPE OF BARGAINING.........................................................................................................28 ARTICLE 42. IMPASSE PROCEDURES.........................................................................................................29 ARTICLE 43. SEVERUJBILITY..........................................................................................................................n ARTICLE44. UNIFORMS.................................................................................................................................29 ARTICLE 46. SUBSTANCE ABUSE POLICY..................................................................................................30 L.1 01 mou July 1,201%0 Jum 30. 2022U Pag.1 ARTICLE 48. DUES DEDUCTIONS.................................................................................................................30 ARTICLE 47. UNION DUES-a-NCY SHO ...................................................................................................Jo ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES...............................................................................32 ARTICLE 49. SHIFTCHANGES.................. ..............................................................................................m ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY..............................................................m ARTICLE 51. RESIGNATION...........................................................................................................................m ARTICLE 52. OPERATOR CERTIFICATION...................................................................................................U SIGNATUREPAGE..............................................................................................................................................36 EXHIBITA.............................................................................................................................................................U L.1 01 MOU July 1.201%0 Jum 30. 202240 Page 2 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT In accordance with the provisions of Collation Govemment Code Sections 3500,at seq.,and Resolution No.99- 24 of the Joint Good!of Directors,Me Districts authorized representatives have met and conferred in good faith with representatives of Me International Union of Operating Engineers,Local 501,for the Disbict's Operations and Maintenance Unit These meetings have resulted in an agreement and understanding to recommend that Me employees represented by Local 501 accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to Me wages,hours,and conditions of employment for to employees represented by Local 501 as set forth in this Agreement. ARTICLE 1. RECOGNITION 1.1.This Agreement is entered into between the Orange County Sanitation Distiicp refered to hereinafteres the District,and the International Union of Operating Engineers,Local 501,AFL-CIO,slashed to hereinafter as Local 501,as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms of conditions of employment which are to be In effect at 12:01 a.m.on July 1,20195. 12.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 to District. ARTICLE 2. DURATION 2.1.This Agreement will be binding on to Distinct and Local 501 when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,2022U. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No.OCSD 99-24. ARTICLE 3. SUCCESSOR AGREEMENT 3.1.Local 501 will submit in writing its initial proposal fare successor agreemenl80 days priorlo Me expiration data of Mls Agreement. ARTICLE 4. LOCAL 501 ACCESS 4.1.The Local 501 representativewill have access to the Districts facilidesduring working hours forthe Noticed of assisting Unilemployees in processing grievances or investigating matters arising out of the application Local Wl MOU July 1.201%to Jun.30. 2022U Page 3 of provisions of this Agreement. The Local 501 representative must obtain authorization for each visit in advance from the Director of Human Resoumes,or designee. 4.2.Local 501 will provide Me Director of Human Resources,or designee,with a list of Representatives who are authorized to request access under this Article, and will notify the Director of Human Resources, or designee,of any changes in that IisL 4.3.Local 501 access will net 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 51,Local 501 may designate fourteen(14)employees to act as stewards for employees covered by this Agreement. I-ocal 501 will furnish to Director of Human Resources,or designee,with the names of employees selected as stewards and will update Me list as necessary. An alternate steward may be designated to act in Me absence of the regular steward. Employees not listed on the roster of stewards provided M Me District by the Local 501 may not act as representatives. 5.2.For purposes of meeting and conferring,Local 501 will be allowed to designate two(2)stewards to attend (addiOonal stewards may be added by mutual agreement ofthe parties).An additional employee,who may or may not be a designated shavers,may be invited to attend to provide subject matter knowledge. 5.3.Stewards will not perform non work-related duties on work time without the prior approval oftheir immediate supervisor. Neither the District nor the Local 501 will interfere with, irumidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights M engage in Local Sol activity. ARTICLE 6. DISTRICT RIGHTS 6.1.District inherent rights,powers,fundion3,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District In Its exercise of management decision-making,except as specifically modified by Me express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits, necessity or organization of any service or activity provided by law,or administrative order;determine Me mission of Its examinant departments,commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain Me efficiency of District o berations:determine the methods,means and personnel by which District operations are to be conducted;determine the content of job classifications;classify and reclassify positions;Mks all necessary actions to carryout its mission in emergencies;and exercise complete control and dementia over its organization and the technology of performing its work. 6.2.District retains all authority and rights conferred an it by law,or other legal sources,except to Me extent that such authority is explicitly waived by the express terms of this Agreement. District exercise of its management rights hereunder shall not be subject M appeal or meeting and mnfering,however,that the exercise of such rights does not preclude Local 501 from appealing or meeting and confering the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT 7.1.There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color, religion, national origin,ancestry, sex,gender, gender identity,gender expression,s ual orientation,age,physical or mental disability,medical condition,genefic information, marital statuseor military or veteran status,or any other lawfully protected class. To the extent required by Local 501 MOD July 1,201%to June 30, 21)l Page 4 091155 Lr mons R law or by the Disidct's rules or regulations,this provision of the Agreement will W applied Wall members of the Unit without regard!W any protected classification. ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT 8.1.The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized haunts. In view of the hazards associated with smoking,and the potentially harmful effect d has on the health and well being of District employees and their families,smoking and the use of tobacco (cigarettes,cigars,e-cigamftrm yriming']and related tobacco products and tecM1nologiiii is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9. SAFETY 9.1.It is the duty of the District to provide and maintain a safe place of employment. Locril N1 will cooperate by encouraging all employees covered by this Agreement to perform theirwork in a safe manner. Il 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 ofthe District,and forego"any unsafe practices or conditions to their immediate supery sor.An employeewill not be required to perform work Nat is unsafe. 9 2.The OieWctwWesfekkaPhas a Safety Committee Natwillincludes uptosix t6)members of Local 501. nhe .— cimmnrrotl[M]:cols wec upaetea anm tlw si committee's recommendations are advisory.The committee will meet at least qumarly,however,addXional commlme has all Been cream Poueekeagnel meetings may be scheduled by either Local 501 or the District. ARTICLE 10. DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken fair just cause with respect to any employee in the Unit:verbal reprimand wriflen reprimand;suspension without pay;reduction in pay, demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given W 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 orby Call Mail sent W the employee's last known address. Such personal delivery or mailing will be presumed to tonal 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 data of issuance. 10.5. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the imposed 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 wham any response must be directed,and the fact that such response must be received within ten (10)business days of the date of Issuance of the notice. The Notice will also advise the employee of the right W representation. 10.6. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity to remand either verbally or In venting to a management representative with authonty W make an effective recommendation on the proposed scram After review,of an employee's response,the DIBTct Local 501 MOU July 1.201%W June 30. 29124e Page 5 ilnI"ut Odc"i will notify the employee in writing of Me action that will be taken. Such action may not involve discipline more severe than Mat desctlbad in the Notice of Intent;however,Me District may reduce discipline without further notice.Furtherclarification offer disciplinary policies and procedures arecovere l in the District's Personnel Policies and Procedures Manual. 10.7. Dismissalwill be preceded by at leastone(Uwritten reprimand,except in Mesa situations in which Me employee knows orreasonably should have known Matthe performance orconductwasum a isfactory. Such performance or conduct may involve,but is not limited W.dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funs, fighting on the job.insubordination,acts endangering people or property,or other serious misconduct. The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent Is upheld and Me disciplinary action Is Imposed,Me employee may request a post- tlisciplinary hearing.The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days fallowing Me effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day ofthe suspension). The Directorof Human Resources,or designee,will schedule a post disciplinary hearing with Me General Manager ors heading officer selected by Me General Manager.The hearing officer may not be an employee of the District.The hearing officer will provide a written, advisory decision to the General Manager.The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent.The decision of the General Manager will be final. 10.8. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action documentation,except verbal reprimand documentation,will be maintained in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be maintained in the supervisors employee files. Supervisors shall inform management staff when a verbal reprimand is to beimplemented. IfafferWenty-four(24)monthsfromImplementation,Merehavebeennorecuv nces of similar incidents;supervisors shall destroy the verbal handful documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four(24) months subsequent to the date of the Issuance If there has been no recurrence of a similar Incident during the period. If management agrees to remove the disciplinary action documentation from an employee's personnel file, such documentation will be retained In a separate file by Me Human Resources Department for the purpose of showing that progressive discipline has been followed or In support of District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this Made will be constaued as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or a demotion to a classification with a lower pay grade Mat is not a result of performance deficiencies(forexample,reclassi cations.'bumping'associatedwith layoffs,reasonable accommodation)will not be considered discipline. ARTICLE 11. GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific prevision of this Agreement, except that,In accordance with Article 10 above,discipline,which requires a Notice of Intent,may not be reviewed under this Grievance Procedure. 11.2. A gnevance may be brought M Me attention of the District by an indivitlual employee within the Unit or by Me Local 501.The District may not bring a grievance through this procedure.Grievances brought by Me(2)or mere employees,and concerning Me same incident,issue,or course of conduct,or multiple graveness brought by the same employee may,upon mutual agreement of Me District and the Local 501,be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee in an effort to bring about an informal resolution. Local W1 MOU July 1.20126 to June 30. 210i Page 6 smut muser" i 11.4. An employee may be seMtepresented or be represented by the Local 501 at all steps ofthe Grievance Procedure unless specifically agreed otherwise by Oe Local 501 and the employee. The District will provide a copy of all within grievance settlements to the Local 501. Any reference to days in this Article means business days,Monday through Friday,excluding racogn¢ed holidays. 11.4A. Sled 1. An employee will submit his/her complaint in wrNng to his/her immediate supervisor,or designee,within ten(10)days of the occurrence of the event giving rise to the complaint or within ten(10)days from the time that the employee became aware of suchevent. The supervisor,or designee,will attempt to resole Me issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11.4.2. Step 2. If Me grievance is not seltied at Step 1,it may be submitted in wiling to the employee's Division Manager, or designee. This request for formal review must be presented on a loam provided by the Distructwithin ten(10)days of the conclusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or tlesignee. The written grievance must: 11.4.2.1. Ideality the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected 11.4.2.3. List the specific provisions ofthe MOU Nat were allegedlyviolated and stale how they were violated; 11.4.2.4. Specify the remedy requested;and 11 4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Division Manager,or designee,will respond in writing to the employee within ten(10) days after the date the gnewance Is received. 11.4.4. Step 3, If a grievance Is not settled under Step 1 or Step 2,it may be presented to the employee's Department Director, or tlesignee,for review and written response. The request for formal review must be presented on a forth provided by the District within five (5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The Department Director,or designee,will respond in writing to the employee whin ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within five(5)days from the date the Step 3 findingwasissued. The Assistant General Manager,or designee,will respond in writing to Me employee within ten(10)days after the data the grievance is received. 11.4b. Step 5.Appeal to the General Manager,or designee,is the final step in Me Grievance Procedure.If the gnevance cannot be resolved under Step 4,It may be presented to the General Manager,or designee,whin five(5)days from Me date the Step 4 finding was Issued.The General Manager,or designee,shall respond In writing to the employee within tan (10) days after the date the grievance is received. The decision of the General Manager,or designee,is final. 11.5. Goal Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance. If an employee Is represented by a Local 501 steward, the employee representative will be given reasonable time off without Ions of pay to perform this responsibility Absence from work will be approved only if it does not cause disruption to District opeations.However, tl the time requested cannot be provided an alternate time will bra arranged. Local 501 MOU July 1.20196to June 30. 201249 Page i1i it dficp OR 11.6. Failure ofa managementrepresentative to respond within the appropriate time limit will provide a basis for the employee appealing W the next step. he grievance is not presented orappealed within the time limits,it will be considered resolved on the basis of the preceding response. The Director of Human Resources,or designee,may be Ile itioned 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 ofthe padies. 117. Resolution may be agreed upon at any stage of the grievance process. Howeventhe Local 501 will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This procedure was developed to encourage and facilitate the resolution of employee concerns In a responsive and fair manner,and maybe used to at emptto resolve issues thst may not be subjected to the Grievance Procedure. Any reference to days in this Article means business days. 12.2. Stop l:An employee will submit his/her issue that is not subject W the Grievance Procedure in writing to his/her supervisor,or designee,within ten(10)days of the occurrence of the event giving rise to the complaint or within ten(10)days from the time that the employee became aware of such event. The supervisor,ordesignee,will reviewthe situation ordecision,and provide a written response within five (5)days from the data they were notified of the problem. 12.3. St�lfthe problem is not resolved to the employee's satisfaction,a written statement concerning the problem may be filed with the employee s Division Manager or designee,within ten(10)days of receipt of fine supervisors decision. The employee musing the Issue will be provided a written response from the Division Manager,or designee,within ten(10)days after their statement is received. 12.4. Step 3:if a problem is not settled under Step 1 or Step 2,it may be presented within ten(10)days to the Director of Human Resources, or designee,who, at their discretion, may form a Worth Issues Committee,comprised of the employee's Department Director, or designee,another management representative and two(2)Local 501 representatives. The Work Issues Committee may convene to cooperatively review and develop recommendations for solutions)to the problem.The Director of Human Resources,ordesignee,may utilizethe committee's recommendaeon(s)Wmspond inwrifing b the employee within fifteen(15)days after the date the problem Is received. 12.5. Time limits may be extended for cause upon mutual consent of the parties,and the deleltion of the Director of Human Resources,or designee,is final. ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION 13.1. Merit Pay Step System 13.1.1. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.12 Pay Increases will only apply to eligible employees in an active payroll status on the eftuve date of implementation. Eligible employees will not receive abroactivity if active payroll status becomes effective after the date of implementation. 13.2. Merit Pay 13.2.1. Step Increase Pav—Bargaining unit employees will be eligible for Step Increase Pay Mixed upon receipt of year-end pedotmance appreisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: Local 501 MOu July 1.201N ro June 30. 20i Page 8 al ll Lt Oa09ULR 13.2.1.1. Eligible Employees must have a proficientyear-and performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.2.1.2. Inelinible-Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement Performance review on the yearend appraisal or who are on a PIP at the dme of the yearend appraisal par will remain at their current step until the PIP is satisfactorily completed. 13.2.1.3. Performance Management Program:The performance management program Includes three (3) rating categories (exceeds, proficient, and needs improvement)for performance appraisals. 13.2.2. Development Pay-Employees under this Agreement will be eligible for Development Pay. Development Pay Is a non-base building pay type that will be distributed In a lump sum amount each pay period. Employees must have a proficient yearend performance appraisal to be eligible for the following Development Pay types: 13.2.2.1. Education-Eligible employees who have completed a degree of approved subjects at an accredited college or university will receive$250003 per pay period for an associate degree and $50_O04b53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.004453 Per pay Period. 13.2.2.2. CertificationlLicense-Eligible employees who obtain a District approved certification or license will receive$15 243G2 per pay period per certficate or license with a maximum ofthre,(3)certificates and/or licenses.The maximum amount of certhicatlonllicense pay for any combination of certlAcates andlor licenses is fixed at$45 722 per pay"nod. 13.2.2.2.1. The overall maximum Development Pay for any combination of education,cerdficatlon and/or licenses is fixed at$95]26,l par pay period. 13.2.2.2.2. Grade V Pay - Employees who re mil Grade V pay in accordance with the applicable District pollcy are Ineligible to receive Development Pay for their Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possessa Grade V Caroficate and do not meet are criminal for Grade V Pay am eligible for Development Pay in accordance with the Development Pay Progam Guidelines, 13.2.2.2.3. Employees who are placed on a PIP due to a needs improvement performance review an the yearend performance appraisal are not eligible for Development Pay until are PIP Is satisfactory completed. 13.2.2.2.4. Employees who are placed on a PIP due to needs improvement performance outside one year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.3. Salary Panne Adiustments 13.3.1. Effective the first pay Period in July 20195,employees under this Agreement will receive salary range adjustments at a flat ate of 3.0%. Local 501 MOU July 1.201N to June 30. 2Dl Page 9 0i it had di 13.3.2. Effective the first pay period in July 202W,employees under this Agreement will receive salary range adjustments at a fiat data of 3.0%. 13.3.3. Effective the first pay period in July 2021U,employees under this Agreement will receive salary range adjustments at a flat data of 3.0%. ARTICLE 14. SEVERENCE PAY 14.1. Employees are expected to glue a minimum of two(2)weeks written notification when terminating employment with the DisVicL Exceptfor disciplinary cause,when afull-time employee isterminated by action of the District, the employee will be notified in wilting two(2)weeks prior to the effective separation dale. In the event fine District does not give such notification,the employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will he entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred silly(160)hours pay. 14.1.2. Employees in limited term or part-time positions.probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan subject to IRS requirements,and In accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. HOLIDAYS 16.1. For the purpose of the District's business calendar,thedayslated belowaraobservedbytha Districtas holidays. Employees who are assigned to eight(8),nine(9)or ten(10)hour shifts,Monday through Friday,will observe the holidays listed in Schedule A. Employees who are assigned btwelve(I2)hour shifts will observe the holidays as listed in Schedule B. Employees shall receive holiday pay ff their entire scheduled work shifts Immediately preceding and following the holiday are in a pad payroll status,meaning the employee worked those shifts or utilized paid time off in lieu ofwmkirg those shifts. When an employee's work schedule requires that they wont on an observed holiday,the employee shall be paid at his/her regular rate of pay forme holiday,or receive an equivalent amount of Holiday Compensatory Time Off if requested by December 31 of the odor year on the Holiday Comp Ci shout Form. Employees shall also receive premium pay at the eta of one and one half(1.5)times their regular hourly rate for all hours actually worked.Employees with a compensatory time off balance In excess of fifty(50)hours as ofthe last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). SLHEBBLEA HOLIDAY gala 2022i6W JanuaryDecember Ni vases De 1 31 FebruaryFebruary Llndi Blond 12 11 FewFebruery Presidents Da 1] 21 Memorial De Ma 2 M Local 501 MOu July 1.20126 to June 30. 2022i8 Page 10 091I55L1 rRn9pOR SCHEDULE A HOLIDAY 2020201E 1 20212016 20122446 Independence Day Jul JUI Jul 3e lem`er e� lemrber S, mn be Labor o November November November Veteran's Day 111BbvewYea46 11Nevee0wH2 1 Neva ker-14 November November November Thanksgiving Day 24evember-23 2514evembec22 24NevemPaF2a November Novemko Npvvorm,e Day eflar Thanks 'ry Neww4er-24 Nevewkart+i 25Waaw6ecU8 December December December Day before ChnsVnes 24DecembeF25 236ecem0er24 23gewmber-24 D "nb,r De...ktc D,,mI,, ChnsMaa 25Besemhe06 24Besembec2§ 26M—mlh ar § Floalln Holds See 162 See 16.2 See 162 SCHEDULEB HOLIDAY 2620261E 20212610 26222618 January Janus rY J.mm, New Years Da 1 1 1 Few Few February Umwln§Birthday 1 1 12 Febmary Few Forms Prealdents[3ay 17Fal 1 21 Memorial Day Ma 2 May 31 May 3 Inde ndenceD J,Iv 4 Ju Jul Sew Sew Sam Labor D November November November Veteran's Da 11Nm:.e:r:1 11"""—""' 11Naawberll November November November Thanks "m Do 25Nevambac22 24Nevaekx-10 November November November Oa A-Thanks Ivin 21November-24 2fiNevembeF23 25Wewem�F2g Q cember December QySgDLttg Da de h 2r hdsvnas 24i2ewmber-z4 z4seaambe.za z4Dee.roe.z4 December December December ChnsMas Desembw-2s Fl0amn H.d See 16.2 Sea 1fi.2 See 162 16.2. Floating Holiday:Employee,may elect one(1)day during each year as a'Floating Holiday'.New employees shall be granted a"Floating Holidayon a pro-rata basis In Me 0rst calendar year of service per Me following table: Hire Dete Percent ld Quarter(January-March) 100% 2^ QuartOr(Apol-June) 75% V Quarter(July-September) 60% 4° Quarter(October-December) 0% Local 501 MOU July 1.201N to June 30. 26324Q Page 11 vllI111'10hu.0 16.3. Employees must use the'Floating Holiday'within the calendar year it is funded.Every effort will be made to approve an employee's request for a'Floating Holiday"oft providing sufficient notice is given. ARTICLE 17. HOURS OF WORK 17.1. For record keeping and accounting purposes,the lvorkweek'forfull-fime employees isforly(40)houre per 1684hourpedod,to be paid on a bhveeky payroll basis ofelghty(80)hourswoMed.Employeework periods may be scheduled in shifts of four9-hour days and one 4-hourday each workweek(9I80),five 8-hour days each workweek(lull four 10-hour days each workweek(8I80),or three 12-hour days and one 4-hour day each workweek(7180). The staining and ending times of employeesworkweeks may vary but will be subject a bid agreement based on seniority.The regular hours of work for each shift will be consecutive and will be posted. Current practices regaMing hours of workfor Maintenance personnel and meals for Operators personnel will continue. The regular ficure of work for each shift will be consecutive,divided only by normal breaks or rest periods. Work schedule and shift start and stop times will not be adjusted to avoid payment of overtime. 17.2. The District may,in accordance with Article 6—District Rights,change an employee's work schedule and/or work location with a thirty(30)day written notice to me affected employee. The change will not be made as a disciplinary action or to avoid payment of overtime. The thirty(30)day written notice will not apply to shift changes pursuant to Article 49. 17.3. Empleyeeswilt§eaPewedaTM1e last fifteen(15)minutes of an Employee's work shift will be designated astheircleanuppanod prate the end ofeach work an . If the employee's work shift is extended the fifteen in 5)minute cleanup period shall occur at the end of the extended period. Employees may not avoid the cleanup period and end their shift before its scheduled ending time. 17.4. Employees will receive paid rest periods not to exceed ten(10)minutes no more than twice in an eight (8),nine(9)or ten(10)hour shift orthme(3)limes for a shift of more than ten(10)hours. Eachsbift will consul a minimum thirty(30)minute meal period for every six(6)hours of work. Mal and rest periods may not be avoided or acomed for the purpose of obtaining fime oft or shortening the regular shift. If an employee reports to work as scheduled and was not notified that his/her hours had been changed he/she will receive two(2)hours pay at the overtime rate. 17.5. Operators 17.5.1. Far purposes of this Article,me day shift is defined as an assigned work shift of at least seven(7)consecutive house,between 0600 hours and 1800 hours.The nightshift Is defined as an assigned work shift of at least seven(7)consecutive hours,between 1800 and 0600 hours. 17.52. Any employee who declares that an individual hardship exists should submit a request,to be excluded from the twelve(12)hour workweek,tithe 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. 175.3. For the Purposes of this Article Cen-Gen Operators are Included in this unit. 475.,2-17.5.4, Rommener: The District and me Group some to reopen this Ameementlo discuss the answer Pearl Oeperator lob family and District proposals regarding Article 17, 17.6. Maintenance 17.6.1. Maintenance: Except where otherwise provided below,the offidal workweek for fuMme represented personnel in Maintenance will be forty(40)hours per week. Theworkweek will consist of a four(4)consecutive day work schedule with ten(10)consecutive daily hours in a workday with a one-half(hi)hour unpaid lunch. Local 501 MOU July 1.201N to Jura 30. 20224e Page 12 991I55Lt often R 1 T.6.2. The workday will be 6:00 a.m.to 4:30 p.m. The workweek will begin on a Monday or a Tuesday and and on the corresponding Thursday or Friday. All hours gmaterthan 40-hours in an indiodual's assigned workweek will be considered overtime and paid at one and ones half(1.5)times the regular rate of pay. 17.6.3. Any employee who declares that an indwidual hardship exists should submit a request,W be excluded from the 4110 workweek,to the Human Resource Department Human Resources will determine if there is a valid employee hardship,on a case-byaase basis,and notihi the Local 501 representative of the decisionof r li,xi—iah(7)rame,Amk­ b rus,Ir at ep a.GROG suit I ROO he,., Tin,,ghl xh A x defined as an ass gmed work Gh R of at'last Given(7)GGR61G tul himm,imWei 1809 and 0600-kalxs 1744, At,e mislo)as h a do sablis that a. dual h obtain r i se should sub.I a he ques'to be d fill.8 f th fire a a via-d i eye a habeir in,or a eas s by ease beas Ih or d mat fi,the It to 4Z6.417.6.4. Disputes ever days o8 will be handled on the basis of seniority except when the District can demonstrate a business necessity. ARTICLE 18. CALL-BACK PAY 18.1. When an employee is called back W work by District management without prior notice, and the employee has completed blether normal work shift and leg the work station;when prior notice is given but the work begins on the same day at least three(3)hours after completion of the regular shift;or when an employee assigned to standby is actually called to work,the employee will receive a minimum of three(3)hours of cell back pay. The three(3)hour minimum,whether or not actually worked,will be paid at the rate of one and one half(1.5)times are regular hourly rate. 18.2. The call back period shall begin when the standby employee has been informed by the DisticlW return towork. The call back period shall end when artherthe employee arrives at his or her residence orthe original destination;in either case,the employee must inform the District upon arrival. 18.3. lithe call back period has ended and the employee is called back W work(whetherwithin oroulside of the 3-hourminimum timerrl a new call back period will bestarted and theemployeswill be eligible for at least the 3-hour minimum call back pay. 18.4. If the call back period has not ended and the employee is called back W work(whether within or outside of the 3-hour minimum tlmeframe),the call back period and associated pay will continue but the employee will not be eligible far another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6. Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature,as determined by the applicable on-duty Operations Supervisor or designee. 18.6.1. In some instances,if call back work can be postponed for several hours.the Operations Supervisor or designee will do so as a courtesy to the employee and to slow for the work W be performed during daylight or day shift. Forinstanm,abmakdownmcumat3:00a.m.but work can be postponed a few hours so the standby employee can be called in at 6:00 a.m. Local W1 MOU July 1.201N to June 30. 201249 Page 13 ARTICLE 19. STANDBY PAY 19.1, Treatment Plant. Standby is time during which an employee is not required to beat the work location or at the employee's residence but Is required to be available for immediate datum to work. Each plant maintenance craft may create a standby list of a minimum of those(3)employees. Standby lists shall first be populated by volunteers. If,after allowing for volunteers,the standby list still does not meal the three(3)employee minimum,OCSD shell populate the remaining vacant slots of the standby list by means of reverse seniority withln the division. Employees who volunteeror are mandated to be on the standby list shall he competent,experienced journey level employees. Employees who are on their Initial probation shall not be eligible for standby. 19.1.1. Each craft may create additional standby lists lt anticipated work requires a specific skill set that may not be readily available on the existing standby list. If sartorial standby lists are required affected employees will be notified. 19.2. Collections System Standby is time doing which an employee Is not required to be at the work location or at to employee's residence but Is required to be available for Immediate realm to work.The standby list forth¢Collections division will contain a minimum ofsix(6)employees;three(3)employees for primary standby and three(3)employees for secondary stantlby. The standby list shall first be populated by volunteers. If,after allowing for volunteers,the standby list still does not meet the six(6) employee minimum,OCSD shall populate the remaining vacant slots of the standby list by means of reverse ontywithin the division, Employees who volunteer or are mandated to be on the standby list shall be competent and experienced,having one of the follovi nv a. at least IS months of experience within the Collection Division and be at a Mechanic ob classification level:a b. at least four veers of experience fee(2)years Of dim within the Collections Division. IA s192.1. Employees who are on their initial probation shall not be eligible for standby. -082.19.3. Employees shall not complete more tan two(2)consecutive weeks of standby without a eased(]) day break between standby assignments. 4 .19.4. Employees on standby will be compensated at the rate of$5400 per week. 483-L194 t. Employees whose standby assignment Include an OCSD recognized Holiday will be compensated with two(2)boom of straight time payf fammenrtl[W3]:Pdeea sine Leaerla�quage ARTICLE 20. INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance covamge will become effeclrva on the firet day of the month following date of hire, regardless of hire date. An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health Insurance coverage through a Health Maintenance Organization (HMO) medical insurance plan, a Preferred Provider Organization (PPO) medical Insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular,full-time employees: Local 501 MOU July 1.201N W Jura 30. 21)l Pape 14 09165Lt court R 20.4.1. The District will contribute 90%of employee only premiums for the HMO medical health plans and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%for employee+1 dependent and full family premiums for the HMO or Pi medical plans. Any change in insurance rates will be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal ofany District's sponsored health insurance plan,the paides agree to meet and confer as to changes in the plan. 20.4.2. The HDHP will be accompanied by a Health Savings Account(HSA)to pay for qualified me iical expenses.OCSD will use a Portion of the cast savings in premiums to fund the HSA accounts during active employment only.The HSA will be funded with the savings generated annually by calculating the difference between the District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles, not to exceed me Districts aforementioned annual premium cost savings. 20.4.3. The District may reopen negotiations at any time during the term of the MOU to address the impact ofthe Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA or,(2)mutually agreed upon by the parties. 20.5. Group Insurance Premiums 20.5.1. San,insurance premiums that are paid by salary reflection can be made on a pre-tax basis. 20.6. Life Insurance 20.6.1. The District will pay the full premium for$50,000 term life insurance on each employee. 20.7. Short Term DlsablllN 20.7.1. The District will provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting psued. 20.8. Lana Term Disability 20.8.1. The District will provide a non-work related.long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability,not exceed$5,000 per month,up to age 65,following a 90,my waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.8.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment is specified. The armored!Before and additional information about coverage is included in the District's long-term disability plan contract accession on be Intranet. 20.8.3. No combination ofdlsabllity or sick leave pay will result in more than an employees regular note of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.9. Dental Insurance 20.9.1. The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. Local Will MOU July 1.201N to June 30. 202249 Page 15 e91I55Lt Oa09ULR 20.10. Vision Insurance 20.10.1. The Distlictwill provide a vision insurance plan forregular,full-timeemployees and eligible dependents. 213.11. Retlrin Employees 20.11.1. The District will pay,for employees hired prior to July 1, 1988,two and one-half(2.5) months premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under me District's medical plan. 20.11.2. Inthe eventthe District adds additional Optional Insurance plans.the Districts share ofthe premium will be the same as for existing plans as set form above. In the event the District changes underwriters for existing insurance plans,the District's share of the premium will be the same as for existing insurance plans as set forth above. 20.11.3. The District will continue to implement the same medical health premium offset or ram wherein the cost of health premiums are offset by ten dollars($10)per month forevery ull ear do-o'" e[M]:dexo-we die not elecuss this at of continuous service up to a maximum of 25 years or two hundred fifty dollars($2501 per him.,b dwe hem updmed this Imguage Nouse Money)tomonth. ellga.recent.humor pnwi M you 0.wXh one p]arei 20.12. Health Retirement Account(HRA)Reopener' The District and the Group agree to reopen this Armament t discuss HRA plantl n funding mechanism porous, din District andlar employee funding,understanding the Distinct Is not making any commitment to District funding. ARTICLE 21. REIMBURSEMENT ACCOUNT 21.1. $edon 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 btlafoverviewarthedifterent options. For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department, 21.2. Medical Care Reimbursement Account 21.2.1. The purpose of this account Is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himselflberselffor paymentaf health carecosts n[omerwisecoveretl by hislher medical Insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himselflherself for childcare expenses or day care for a disabled dependent. ARTICLE 22. OVERTIME 22.1. Employees will be notified as soon as practicable after the District decides upon the need for overtime or additional work. The District may require the performance of overtime. In the event no combined employee wishes to work overtime,Distrul management may select employees with the ability to perform the work by inverse whionty. District managers will attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. For the purposes of overtime calculation,all time charged to unscheduled leave will not be counted as time worked Pay for overtime will not occur until after work time(which includes scheduled leave) of forty(40)hours In a seven(7)day workweek is reached. Local 501 MOu July 1.20126 to June 30. 20i Page 16 wl1 ll lr prow di ARTICLE 23. PROBATIONARY PERIOD 23.1. All new employees and employees who are reassigned or laterally transferred serve an Initial probationary period beginning with the date of hire,reassignment or transfer and extending to at least Me first day of the pay period following six months of employment without a break In service. Extended absence without Pay,shod tests and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employee's capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. All new employees who are hired in apprenticeship burger trainee positions shall serve an initial probationary period beginning with the date of hire and extending to at least the that day of the pay period following the complete period of training for the position,without a break in service. Extended absence without Pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employee's capability W meet performance expectations for a position,and thus the time spent on such leaves will net be included towards completion of the probationary period and may result in an extension. 23.3. Employees ward are rehiretl fellowing a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during hlslher Probationary Period at the discredon of the District without recourse to the Grievance Procedure. ARTICLE 24. PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum mte of pay. The District will determine whether a vacant position will be filled as an open or promotional opportunity or recruitment Whenever Me District intends to fil l a position by promotion,the District will post Me opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices will be posted on the District's intrenet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective data of the promotion. At any time during the promotional probationary periotl,an employee may be returned to his/her previous Position. If the employee does not pass the probationary period.Me District shall return Me employee to his or her previous position or an equivalent position.The promotional probation period may be extended by mutual agreement between Me employee and Districts management for up to ninety(90)days.If an employee is promoted during his/her initial probationary pained,the period will be extended until at least Me first day of the pay period six months after the effective data of the promotion. 24.3. Promoted employees will receive Me equivalent of a one(1)step increase in pay,not to exceed Me top of Me range for Me new classification or the minimum rate of the new classification whichever is greater ARTICLE 25. RETIREMENT 25.1. The District will continue participator,in Me Orange County Employees Retirement System (OCERS),wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired before September 21,1979:The District will continue to contract will CCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve (12)months average earnings,past and future service. Local 501 MOU July 1.201N to June 30. 20 2U Page 1] w1I55Lt ORmi 26.1,1 1. The D stomew 11 cent nue to pay 4,61;toward the employ cc a Gone harass be OnWR 25.1.2. Employees hired on or after Seolember 21 1979 and before July 1 2011:The District will continue by contractwith OCERS to pro ride the 2.5%®55 beneftformula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.3. Emoloveas hiretl on orafts JUIv 1.2011 and before January 1.2013:The Distr'mtwill contract with OCERS to provide the 1.667%@ 67.6 benefit formula(Plan B)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.3A. The District will pay 0% of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1A Employees hired on orafter January 1,2013:The Dlstrlctwill comout with OCERS to provide the 2.5%®67 benerRformula(Plan U-PEPRA)based on the highest consecutive thirty six (36)months average earnings,past and future service. 25.1.4.1. The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.5. All monies actually contributed into the retirement system by an employee will be deducted from gross salaryfor taxation purposes in acwh ancewith Internal Revenue Code provisions. ARTICLE 26. SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of fifty percent(50%)or more of the hours between 6:00 p.m.and 6:00 a in.and who actually work that shift will receive a shift differential of$3.00 per hour. ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY 27.1. Personal Leave 27.1.1. Personal leave is provided to allow employees time oftwith payfor vacation,personal business and illness or injury. Personal leave is accrued by full-lime employees for all paid hours, including boom actuallywarketl and hours in a paid-leave payroll status,on a biweekly basis as follows: Years of Samoa HOprs- Hours- Bhroetl Annual In years 0 through 1 3.08 80' In yea.2 throw h 4 5.38 140 In years 5 through 10 6.92 180 In year 11 T23 188 In year 12 TU 196 In year 13 7.85 204 In year 14 8.15 212 In year 15 8.46 220 In year 16 8.69 226 In year 17 8.92 232 In year 18 9.15 238 Local Wi MOU July 1.201N to June 30. 202249 Page 18 091I55Lt Oari Years of Sam Hours. Hours- Blweekl Annual In ear 19 1 9.38 244 In year 20 and over 1 9.62 1 250 27.1.2. When unpaid absences Dour,personal leave accruals will be applied by straight proretion of leave accruals based on the number of boors actually worked,and is applicable to all types of leave,whether legally protected or not. 27.2. Scheduled Time Off 27.2.1. Management will make reasonable effort,conaidenng the operational needs of the District,to accommodate all employee requests for Joe off. Scheduled time off should normally be requested at least two(2)weeks in advance to increase the likelihood of those case being appmved. 27.2.2. Employees with at least one(1)year's service must request and take at east forty(40)boom off each year. 27.2.3. Supervisor absences will not affect an employee's ability to schedule Ome off unless the time off request is submitted within two(2)weeks of the dale requested. 27.2.4. Requests for time off that are submitted beyond six(6)months shall not be approved unless the request is for at least one week in duration. These requests shall be approved based on seniority. Requests for time off that are less than one weak in duration must be submitted within six(6)months ofthe date requested. Time off requests that are submitted within six(6) months shall be approved on a first-come,first-serve basis based on staling requirements. Excessive single or partia l day requests for time of f may be cause for denial If the absences)Is found W negatively impact the effectiveness of work teams,scheduling of work,training,and the ability to take neuritic days off by other staff. 2726. Full-day time off requests with less than twenty-three(23)hours notice shall be considered unscheduled. All other time off requests, including partial day One off requests, must be requested In acceptance with the provisions of this Article and maybe considered scheduled at management's discretion based on business needs. 27.3. Unscheduled Time Off 27.3.1. Personal leave provides income protection to an employee unable towork dueto illness,injury or pregnancy,Wong bran III or Injured member of his/her Immediate family or other personal emergency. Unscheduled time off must be accounted for by completion of an Unscheduled Time Off Report upon the employee's return to work. It is the responsibility of District's management b control the potential abuse of unscheduled time off privileges. Taptiness less than fifteen (15) minutes will not be deducted from the employees pay, bull numerous occumances will be addressed through the progressive discipline procedures.Employeeswho are re than fifteen(15)minutes body to work must use accrued One onto offset the er e away fromwork.Ta d ine d,of more than Ntsan(15)minutes maybe considered unscheduled time off based on excessive occurrences. 27.3.2. Employees must notify their supervisor prior to the start One oftheir shift when they are unable to report to wont.Any absence that is requested within twenty-three(23)hours ofthe start often employee's work schedule,excluding protected leaves of absence and bereavement leave, shall be considered unscheduled time off. 27.3.3. An employee's attendance recopt will be reviewed with an employee after five(6)separate occurrences of unscheduled time off to provide an opportunity to assess problems that could potentially lead to disciplinary action. The accumulation ofthe sixth and seventh occurrence will a twelve(12)month period will result in a verbal warning. The eighth occurrence will Local Will MOU July 1.201W to June 30. 20i Page 19 091I55Lr Oa0bei resultinawriftenwaming. Employees who are charged with ten occurrences of unscheduled time oft within a calendar twelve(12)month penod will be subject to termination.A mlling(12) month calendar period will be utilized to measure absence occurrences.A'rolling'Nrelve(12) month calendar period is measured backward from the date the employee uses the leave. Absences of multiple consecutive days involving the same Injury or illness will be considered a single occurrence.The District also has the right to discipline employees on the basis of betel absences away from work. 27.3.4. Employees morning from an extended leave should codify their supervise ras soon as possible to facilitate personnel scheduling. 27.3.5. The employee may be required at any time, to furbish a cauldrons issued by a licensed physician or nurse, or other satisfactory evidence of Illness; however, for unscheduled absences of ten 110)consecutive days or more,a request for leave and a medical statement, on inscribed!forms,siding expected date of return must be submitted to Human Resources. For absences of one(1)or more working days in an unpaid status,a request for leave and a medical statement on prescribed forms,stating expected date of return must be submitted to Human Resources. 27.4. Personal Leave and Workers'Compensation Leave 27.4.1. Employees who are injured in the course of their employment are placed on Workers' Compensation Leave,and receive wage loss benefits to which they are armed under the Workers'Compensatlon Act Employees may request to receive proceed Personal Leave pay to supplement their Workers'Compensation payments in an amount such mat the sum of both Is equal to the employee's regular base pay. 27.5. Personal Leave Payoff 27.5.1. Employees who terminate,retire or decease will be paid in full at their current rate of pay for all Personal Leave hours ambled. 27.6. Maximum Accrual 27.6.1. Employees may have a maximum accumulation dfour hundred forty("Oh hours ofWmonal leave as of the last day of the final pay period in December of each year. In the event an employee ambles personal leave in excess of Mur hundred forty(440)hours,it must be used prior to said December date. Nl other remaining hours in excess of four hundred forty(440) will be paid to the employee in the first pay period in January at Me employee's then current bounty rate of compensation. 27.7. Sick Leave Bank 27.7.1. Employees who elected to bank sick leave accrued prior to the implementation of Personal Leave provisions may all use suchtime ofiforaball duetoa bona fide illness,injury or pregnancy;to attend to Me Illness or Injury of an immediate family member,or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for Me purposes described in Labor Code sections 230(c)and 230.1(a). Employees who retire or decease will be paid at Me fifty percent(50%)rate for all banked sick leave hours;an employee who terminates will be compensated for banked sick leave as follows: Banked Sick Leave laid.of Payoff Hours 0-100 0 percent 101-240 25 percent 241-560 35 percent Over 560 50 percent Local 501 MOU July 1.201N to June 30. 20 249 Page 20 0i LI Oa0l 27].2. If the need for leave is due W the employee's own serious health condition,as defned in the Family and Medical Leave Act (FIALA) or the Cathode Family Rights Act (CFRA), the ceNOralbn requirement will comply with the provisions of these Acts. 27.8. Jury Duty Leave 27.8.1. Any full-time employee,Including probationary,who is called forjurytluty shall be entitled to his or her regular pay for those hours of absence due to performance afjury all a period up to twenty-two(22)working days. 27.8.2. Prior tojury,duty service,each employee mustcomplete atime offrequesphrough the District's tinnesheet system and provide a copy of the summons to his or her supervisor. 27.8.3. Employees who work otherthan the day shgtwbo are called forjury duty will be considered on day shift for the duration of their jury service for purposes of this provision. If a portion of that shift should fall on a weekend or other day the employee is not required to be present in court, the employee will be expected to work. 27.8.4. A copy of the jury notice must be provided to the employee's supervisor. Employees must repair for work during their regularly scheduled work shift when they are relieved from jury duty, unless there is less than one-half(h)of their regular shift remaining. 27.9. Witness Leave 27.9.1. Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly Issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels hisfier presence as a witness,except in a mafterwhereln he/she is named as a defendant or plaintiff or as an expert witness,will,upon approval of an online time of request, be entitled to the time necessary to comply with such subpoena, provided any fees received for such semce,exclusive of mileage,are submitted to the District for deposit in the General Fund of the District. 27.9.2. An employee so subpoenaed must submit a copy of the subpoena to hiedrer supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retainetl on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive all time. 27.10. Miliery Leave 27.10.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the data when it is desired to begin the leave-of- absence and the date of anticipated return.Ampy ofthe orders requiring such military service will be submitted with the request. 27.10.2. Provisions of the Military and Veterans Code of the State of Galdornia,Sections 395.395.6 will govern military leave. In general,current law provides that an employee having one(1) year or more service with a public entity is sma le l to military leave with pay trot exceeding thirty (30)days per year if the employee Is engaged!In military duty ordered for purposes of active military training or encampment An employee who Is required o attend scheduled ski drill periods or perform other inactive duty reserve obligations is enMed to military leave without pay,not exceeding seventeen(17)calendar days peryear,although me employee may,at his orheroption,elect o use accrued leave time o attend the scheduled reserve drill periods orto 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 W accommodate the required time off, 27.11. Bereavement Leave Local 501 MOU July 1.20126 to June 30. 20234E Page 21 0 m"it pkkmmvs1 27.11.1. My Nil-time employee,whether probationary or regular,will make amaximumofthirly- six (36) hours of paid time for to death or turret of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member.Immediate family mamberis defined as dire employee sterner,step-father,father-in- law,matter,stepmother,mother-In-law,brother,step-brother,sister,step sister,husband, wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner, grandchild,grandparent,foster parent,foster child,legal guardian,or any family inemberwgh whom the employee resides. Employees may be required to furnish evidence satisfactory to the District of the familv member's death and the employees relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources who has me discretion W orent or deny such mousses. Any denial of a request for the use of bereavement leave after the designated six(6)months is not mievable or otherwise sub'ect to appeal ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain arcurristances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not receive compensation during an unpaid leave-off-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL(Pregnancy Disability Leav,fili(Family and Medical Leave MtyCFRA(California Family Figure Act)for their own serious health condition. 28.2. Using the proscribed forms,approved by Distinct management,any full-time,including probationary, or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty (1,250)hours of service,may be granted an FMIA or CFRA leave-of-absence without pay,not to exceed twelve(12)weeks in a rolling twelve d2)month calendar period A Polling-hvelva(12) month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five(5)consecutive working days,or for absences of ten(10) working days or more when using paid sick leave accruals. 28.3. Bubstitntion of Paid Leave 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required to use all accruals before unpaid leave is granted. Paid time oftwill not accrue during any pay period that an employee is absent without Pay for more than one(I I day. 28.3.2. Personal leave accruals may be used for the care of the employee's father,stepfather,farher- in-law,mother,step-mother,mother-in-law,brother,stepbrother,sister,step-sister,husband, wte,domestic patter,blological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,gandchild,grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMIA Leave. FMIA Leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,stepfather,father-in-law,mother,step-mother, mother-in-law, brother,stePbrotheq sister,step-sister,husband,wife,registered normal partner,biological child,adopted child,step-child,foster child,legal ward, child of a domestic partner,grandchild,grandparent,foster parent,legal guardian,or Local W1 MOU July 1.201W to June 30. 21)l Page 22 091I55 it can pOR any family member with whom the employee resides who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status In the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee's family member or'next of kin'service member of the United States Armed Forces who has a serious injury or illness incurred In the line of duty while on active military duty.This leave may consist of up o twenty-six(26) weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave.CFRA,Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and will tun concurrently with FMIA Leave. 28.4.2.2. CFRA Leave may not be used for 1)an employee'a incapacity,due to pregnancy,2) leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty.However,Incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.5. General Provisions 28.5.1. Requests for FMLA and CFRA Leave 28.5.1.1. Where the need for Leave is foreseeable,the District requests thirty(30) days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with the Department of Labor(DOL)regulators. 28.6.3. Mee l and Dental Premiums 28.5.3.1. During FMLA and CFRA Leave,the District will pay for medical and dental benefits alike same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment.in full,within forty-five(45)days of the involce data will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same ora comparable position unless the employee would notableness have been entitled to that position for reasons unrelated to such leave(e.g.,lay-of),In which case the Distinct obligation to continue health and dental or other benefits will cease. Local W1 MOU July 1.201N to June 30. 20i Page 23 011J11 Lt Ooseri 28S.5. District Employment of SoouseslDomestic Painters 28.5.5.1. FMIA Leave.Manned employees will be limited to a combined teal of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.6.5.2. CFRA Leave. Married employees and employees in domestic partnerships will be limited to a combined total ofte elve(12)weeks CFRA Leave in a telling twelve(12) month calendar period for the care of a parent er-newly born or placed child. 28S.6. General Leave 28.5.6.1. Employeeswho have exhausted all paid time offaccruals may requestto begranted a general leaveof-absence by District managementto attend to personal mattes or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.6.3. Failure to submit a monthly ce-payment, in full,within forty-five(45)days of the immider date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2. If it is determined that thejob 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 whin the meaning ofthe ADA/FEHA)and the employee is Wiling to return a work,placement in an alternative position, if available,will be considered. The employee will be re-clasedled as medically disqualified while alternative positions are being considered Such time off will be without pay; however,the employee may elect to use seemed 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 to alternative job. 28.5.7.3. If it is determined that the job demands ofthe 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 ADNFEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an altemative position,or Me employee Is not willing to return to work,the employee will be re-classified as metlieally 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. Ifrequested,theemployee's file will indicate the employee left for oar onal reasons. MS.& B ll of Service 28.5.8.1. If an employee Is dismissed per Section 28.5.7.3 and then Is rehlred to a position within the District within one(1)year,the Distristwill bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original data of hire. 28.5.9. Failure to Return to Work Local Sift MOu July 1.201N to June 30. 20i Page 24 0"J"L1 ca0900R 28.5.9.1. It upon the expiration of FMIA or CFRA Leave,or any District-approved extension thereof including General Leave, an employee fails to return W wort, and no additional leave has been authorized, the employee will be considered to have automatically resigned from his/her position. In such cases,the employee will receive advance notification of the District's Intent to Implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10.1.These leaveof-absence provisions will be interested and applied in a manner that's consistent with the previsions of FMLA,CFRA,ADA and all other laws. In the event there is a direct concoct between these provisions, as written or applied the previsions of law will govern. ARTICLE 29. CLASSIFICATION STUDIES 29.1. An employee who believes hislus r position is not properly classifed may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy,and forward it to Me Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process therefore, classification study requests shall be submitted October 1w 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 responslblldles of all employees are appropriately allocated within the classification structure. 29.1.1. All classification study findings regarding existing classifications are subject to approval by the General Manager; findings recommending a newjob classification range are subject to approval by the District's Boats of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following me 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 authortraton by the Board. 29.2. YY-RV acing 29.2.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.2.2. Y-rating will be granted for all reds sstications where employees are working in a job classification with a lower maximum rate of pay. 29.2.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.2.4. Career Change-Oceator-n-Tra n no- Y-rating will occur when an existing employee is selected as a candidate for an Operator-in-Training classification when the employee's hourly rate Is higher than the applicable hourly rate for the Opeator-In-Tralning classification. The P- rating shall begin with the affective date ofthe new classification and continue for eighteen(18) months. The employee must obtain a Grade I Plant Operator certifcate within this eighteen (18)month period.The employee will serve a probationary period for the firsO,bvAW F2)sl%(81 months of this eighteen(18)month period. If Me employee does not obtain a Grade I Plant_.- fbmmenM[B54]:Upama m elignwM amm Operator CaNficate or does not pass probation,the employee will be returned to his/her prior pwfetianary panty. Loom of ed mrem ifissmluapind position or an equivalent position. 29.2.5. Career Change-Power Plant Operator I;Y-ating will occur when an existing employee is selected as a candidate for a Power Plant Operator I classification when the employee's hourly Local 501 MOu July 1.201N to June 30. 20 249 Page 25 xllIll Lt ofix R rate is higher than the applicable hourly rate for the Power Plant Operator I classification. The Y-mting shall begin with the effective date ofthe new classification and central for twenty-four (24)months. The employee will serve a probationary period for the fired'weWe-six(4J�_.-- commended[ess]:Upeeme to align wan wnem months of this twenty-four(24)month period If the employee does not pass probation,the pmmaane:p pe:bl lengM ar atr monna tnouaeivapingl employee will be returned to his/her prior postion or an equivalent position. 29 3 Classification Ad ustment Reaching, The District and the Group agree to reopen this Agreement to discuss the salary range for the Mechanic series and if it should be adjusted consistent with the salary range for lnstrumentationlElectrical Technician l and ll. ARTICLE 30. DRIVER'S LICENSE 30.1. Employees wfm are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Drivers License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is thus unable to perform his/her regular duties and responsibilities notifies the District in a timely Mahlon,an attempt will be matte to place the employee in an equal or lower level position far which henshe is qualified. Placement in the range of the new classification Is subject to District's management discretion. 30.3. The District will continue to pay the license renewals and physical examination ceata of Class A&E licenses that are specifically required by the District. ARTICLE 31. LAYOFF PROCEDURE 31.1. holding herein will be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions In Instances involving job restructuring,reorganization or due to lack of work. 31.2. If,In the sole discretion of District's management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,prbrXy,of function,job performance, individual qualifications and seniority. The Local 501 and employees subject to lay off will be prwdtled with at lead two(2)weeks notification in writing whenever possible. 31.3. Employees in classifications subject to layoff may request a vo untary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged,except that it may not exceed the top of the range for the lower level classification. 31.4. Recall lists will be developed for all classifications experiencing personnel reductions,and will be maintained for a period of two(2)years from the date of layoff. Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the individual on the top of the list That individual must respond W the offer within five(5)days,or the offer will be made to the next person on the list. An individual who either does not respond or refuses three(3)consecutive offers will have his/her name removed from the list. 31.5. All notification and responses must be in writing and delivered either in person or by Certified Mail. It Is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. Local 501 MOU July 1.20126 to June 30. 21)l Page 26 0s1I55 it meal ARTICLE 32. LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporory 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(hat are within the employee's medical restncfions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest Mat an employee is impaired in a manner that endangers his/her own health or safety,or that of others,the District may require Mat empkiyee to be examined or evaluated by a health care provided The purpose of such examination must be jab related. Any examination under this provision will be conducted on Olctdct's time and at District's expense. An employee may submit an independent medical opinion regarding his/her condition and addressing hisMer ability he competently perform the codes 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 Me position. ARTICLE 34. MILEAGE ALLOWANCE 34.1. Approved use of a personal vehide far District business will be reimbursed at the current IRS rate. ARTICLE 35. ACTING PAY 35.1. Employees w1m are assigned by District's management M perform the duties of a budgeted position at a higher level for a period of at least forty(40)consecutive hours In a pay period will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with hour forty-one(41)and continues until the assignment ends or Me six(6)month limitation has been reached at which time a determination will be made as to whether Me position should or should not be posted Requests for acting pay require the pre-approval of Me employee's Department Director and the Director of Human Resources,or designee(s). The(arty(40)hour eligibility period maybe waived at the discretion of the General Manage, 35.2. SubstRutlon Print 35.2.1. Employees in the Operations and Maintenance Departments who are assigned by District's anagementhe perform the Mass of an absent Supersocrshall beeligible for SubWMtion Pay which shall begin with the first hour of assignment. 35.3. Operators 35.3.1. If a Lead Plant Operator or Senior Plant Operator is assigned to perform the work of an Operations Supervisor because of the absence ofhe regularly assigned Operations Supernaor and the unavailability of an alternate Operations Supervisor for an entire shift,the Lead Plant Operator or Senior Plant Operator will be paid equal to a one(1)step salary Increase or the first step of the Operations Supervisor pay range,whichever is greater. 35.4. Maintenance 35.4.1. If an employee in any of the 'Lead' classifications is assigned to perform the work of a Maintenance Supervisor because of the absence of the regularly assigned Maintenance Supervisor and the unavailability of an alternate Maintenance Supervisor bra period ofat least Local 501 MOU July 1.201W to June 30. 20i Page 27 kh1ll Lt moss R Me(2)weeks,the'Lead"worker will be paid equal to a one step salary increase or the first step of the Maintenance Supemsor pay range,whichever is greater. ARTICLE 36. PERFORMANCE REVIEWS (This Article intentionally left blank.Information related to performance reviews is included in Artice 13.) ARTICLE 37. PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours ofthe Human Resources Department by appointment. Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information in hisRrer file current,including home address,telephone number and person to contact In an emergency. ARTICLE 38. BULLETIN BOARDS 38.1. The Local 501 may use the bulletin boards located at Plant 1(10844 Ellis Avenue,Fountain Valley, CA 92708)and Plant 2(22212 Brockhurst Street,Huntington Beach,CA 92646)which are designated for use by employee groups to post notices to the Dlstriet 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 Distant may be removed,(c)the Local 501 will remove its notices after a reasonable length of One;and(d)only a reasonable number of notices will be Posted. ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of six(6)employees covered by this Agreement and appointetl by the Local 501 will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Local 501 will provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and writer process. Release time will be limited exclusively to the six(6)employees. The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Local 501 with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does net interfere with normal District operations. The Local 501 agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. SCOPE OF BARGAINING 41.1. The District and Local 501 acknowledge that during the negotiations which resulted in this Agreement,each party had the unlimited night and opportunity to make demands and proposals with respect b all proper subjects within the scope of representation.Therefore,the District and Local Local Will MOu July 1.20196 to June 30. 202249 Page 28 501,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained In this Agreement. ARTICLE 42. IMPASSE PROCEDURES 42.1. If either the District or Local 501 declares that an Impasse exists In the meet and co for process, the party so declaring may initiate the impasse procedure by providing the other parry 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 partes within fourteen(14)calendar days or as soon as practicable to: 42.2. Review the position of the parties in a final effort to reach agreement on a memoranda of understanding,and 42.3. If the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.4. Impasse procedures are: 42.4.1. Mediation, If the parties mutually agree to submit the dispute to the State Mediation and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation, nor take any public position at any time concerning the issues. 42.4.2. Fact Finding: Whether the parties submit the dispute to mediation or not, Local 501 may request that the parties differences be submitted too factfinding panel as soon as practicable. The costof a factfinder and other mutually incurred costs will be mutually sbared bythe District and Local MI. 42.4.3. Board Actions: Ifthe peruse fail to resolve the impasse,the dispute will be sent to the Disbict's Board d Directomfor 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 tome publlcinterest. My action taken by the Board to resolve the Impasse will be final and binding. ARTICLE 43. SEVERABILITY 43.1. Notwithstanding any other provisions In this Agreement,in the event that any Article,Section or Subsection of this Agreement will be declared invalid by any court or by any State or Federal law or regulation,or should a decision by any court or any State or Federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and Local 501 will meet and confer on the affected Article,Section or Subsection. In such event,all other Articles,Sections or Subsections of this Agreement not affected will continue in full force and e4ect. ARTICLE 44. UNIFORMS 44.1. The District will provide and maintain twelve(12)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to appropriate personnel. 44.2. The District will also provide each field employee with one The District will provideforthe cleaning of the jacket and will determine when the jacket needs to he replaced. Local W1 MOU July 1.201N to June 30. 21 Page 29 44.3, Distill management may establish specific appearance guidelines. NI employees who are issued uniforms must wearthem during the performance oftheir regular duties. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. 444. Employee's covered by this agreement shall receive a safely boot allowance in the a mount of$225 monce4yat the beginning of each fiscal year. ARTICLE 45. SUBSTANCE ABUSE POLICY 45.1. The Districts Drug and Alcohol Policy will apply to all unit members.The District may adopt or Implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit poor to implementation. 45.2. Department of Transportation DOT)Regulations 45.2.1. Every driverwho operates a commercial motor vehicle in interstate or intrastate commeme,and Is subject to the commercial driver's license requirements of the Department of Transponal Federal Highway Administration CFR Pan 362 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3. Districts Substance Abuse Policy: 45.3.1. Any employee may be subject to discipline,up to and Including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. DUES DEDUCTIONS 461. The District will deduct from each regular aych ,no rem tto Loca1501 the dues.i baton fees and assessments' foreach pymmne"gil :Remowa ma bneueymayn w'Ni employee who authorizes such deduction in writing. Such authorizations must be filed by the and of crude 41 bemw(bweebepugl the pay period than to the period for which the deduction is requested. 46.2. The District will provide the Local501 a quarterly list of the names of employees for wham it has made deductions,the names of new employees,and the names of employees who have terminated. ARTICLE 47. eGENCwOeUNION DUES 47.1. Legislative Authority 47.1.1. The parties mutually understand and agree that in accordance with California Government Code Sections 3500,etseq.,all full-time Unit employees represented by the International Union of Operating Engineers,Loco1501(hereinafter"Union')have the right to join or not join the Union. 47.2. Union DueslSewoeFees 47.2.1. The Human Resources Department shall provide all current employees and any employees hired thereafter with aaaetperteeNeanotice advising them thatthe District has entered into a memorandum of understanding with the Union, and that all Load 501 MOU July 1.20126 to June 30. 21022,19 Page 30 ilm"L1 prom R employees within the barca n n,un t are subjectto the Agreement must a Maria n the on, piry—i'viaha.l.thawrim as nodu do a form for*a employees a groom concha ng thefORRAWN"y8i tamdoemAn its the''areas Resources nemmears. 47.2.2. Thecertified list of am Io ees of whom to dad t monthly union dues from. If an employee's membership status chances.Me Union shall notifv the District via amendment to the cerlRlad list .tF`.ala.- aa�a:apa:.ya," e won a foulness (14) calendar days ins D dF at ims" GOMMIRG8 and customs R Payed Theeilecdve date of Union due shall begin no later Man the first full pay smorl after mcelpt of the eoMerizatien-feancertifietl list from the Union. The monetary amount of union dues shall be set by the Union. In Me event of a change to union dues the Union shall notify Me District of the adjusted amount. 4Z2,Z—The employee's earnings must be sufflclent after Me other legal and required deductions are made to coverthe amount ofthe dues arteesauthor¢ed, When an employee is in a non-pay status for an entire pay period,no wXhholding will be made to cover Me pay pariotl 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 sufficienttu cover the full withholding,no reduction shall be made. In Me case of an employee who is receiving catastrophic leave benefits during a pay period,no deductions shall be made. In Mis connection,all other legal and required reductions(including health care and Insurance deduclons)have priority over Union dues and services fees. Relic ous Exemption Ory employs a who a a in a me or of a b a no f do to I g on, a a dy, or a a at that has h star cally he'd -an g m A at nu .hj..t...be I...9.'f r an.ally smicipaul rg P bi 9 employee Organ 7d ORE mall rd he sets Fed an to R or from,ally sups ad any push is amp'eye a organ act on as a a a n d I on of a anplayme nt, The a me a a me),b a a qu re d in I a u a fees 1. . rural 0- . R.Rlidbi char bans hRd weelpt ban ave OR India�Sd OR 501(1)(2) It in' I mass Rimeru a Go da,chose.by th a employs a from a I at of at-east thm a of 0,use No ds des gross it .a eyearmand .of funds. then 'a ary such hard chose. by the employee Char table color but Ore Shall b 8 by he emir Pays" red fare only ladiah,q,eJy.6,..mhmm... A"word"#.R the our.morms do...a d 9uppmet W Me An erThe Agency Shop or, an .th,harmai as of derstand ng mai be rose need by a major ry vote of all the Ressissiea amploya 0 a n the UP The'as say-searetHauaF The vote may be tems at say t ara dur he the term Ofthe anummemdUrs of defendant ing,but in no event she"them he .or.the. dr. (1) no.Jesse our up that Wma `kAwd.Pmd.gda have bwDMb.I.rdthmU.m may negotiate,aM by mutual agreement provide for,an alsonallve procedure or procedures regarding a vote on an efiimay shop _ Local 501 MOU July 1.201%to June 30. 2p124g Page 31 0vl6"it mu..O 472447 2.3. It a'rose as an sts' a approved by on t members; Jur ng the term of a noted P low,this wo am are,,act 1.P al I to far car-.1,so...y Shop firms actual current-Moll `7 Reaaraa A7 3 1 The Old or smal'uses or adequate had ead record of is gains a-fincoust as add chat make reports 47.447.3. Indemnification 4Z4 44].3.1. The Union shall indemnify.defend and hold the District harmless against any liability arising from any claims,demands,or otberaction relating to the District's deduction of Union Due ,including claims relating to the Union's use of monies collected under these provisions. The District reserves the right b select and direct legal counsel in the case of any challenge to the DlstdcBsanni since will Agencsy-Shop-fees eBllgetientleduction of Union Dues, and the Union agrees to pay any attorney,arbitrator or court fees related thereto. ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES 48.1. During the tens ofthis Memorandum,orany 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 UnR,and Local 501 agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in pan from the full, faithful and proper performance of their dotes of employment. ARTICLE 49. SHIFT CHANGES 49.1. The shift change provision is intended to provide an opportunity fro employees to bid for open positions based on their lob knowledge,experience and seniority. An open position's 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 Me District can demonstrate a business necessity. 49.2. Relief Onsetsr 49.2.1. When PlantOperators,Senior Plant Operators or Power Plant Operator series are assigned to Relief Operator positions,they will be entitled to$1 75 per hour premium. 49.2.2. Except In emergencies,an employee will be notified of a change In his/her work schedule at least forty-eight(48)hours In advance of such change,preferably seven(7)calendar days in advance of such change. In the event that notice is under forty-eight 148)hours,management will first try to fill vacancy from Me overtime list. Failure to fill from the overtime list will result in payment equivalent to call back pay in addition to any pay received from the shift worked for the Relief Operator. Local 501 MOU July 1.201N to June 30. 2012U Page 32 ism's ut OR09pLR 49.2.3. It will be the intent of Management that relief employees will receive No(2)consecutive days off and will only be subject to split days off when schedule changes occur. 49.3. Shift change-bidding Procedure 49.3.1. The District will mail(e-mail Is acceptable)a Shift Change Request Form W employees In appropriate classifications every six 16)months. Any employee who wishes to be assigned to the same ora different shut,and who is qualified for that shift,may indicate his4rer preference for reassignment on the Shift Change Request Fogs.The Shift Change Request Form must be returned within thirty(30)days for an employee to be placed on a shift bid list The list of requests will be used for a period of six(6)months to fill vacant positions. A new employee or a promoted employee may request through the Human Resources Department to be added to the current list within two(2)weeks of hlsdar start date(new employee)or of being notified of the promotion. 49.3.2. When the District intends to fill an open position,the following steps will be followed: 49.3.2.1. The District will no0ythe most senior employee on the Shift Change Request list of the availability of the open position, however, the District may also notify the €mploves thathislherwork location may not be changed in accomancewitll Section 17.2. The District somas that it will verbally notify the employee about the Plant connected with the shift. 49.3.2.2. Within We(2)business days ofthe shift change offer,the employee must notify the District in writing her-mail is acceptable)of hisher decision to accept or reject the position. 49.3.2.3. If the most senior employee rejects the position,the position will be offered to the next most senior employee on me list. 49.3.2.4. The process will be repeated until We position Is filled or the list is exhausted. 49.3.3. If an employee declines a shift change offer, or does not notify the Human Resources Department within the two(2)business days,his/her name will remain on the list unless they request in will to have it removed An employee who accepts a shift change offer will be notified of the effective date of the shift change within seven(7)business days. 49.3.4. When an employee is awarded a shift bid,the employee shall begin tie new shift within 30 days of accepting the bid. 49.4. Repuests for bore cv transfer 49.4.1. On occasion,an employee may wish to Initiate a transfer to a different shift or plant in response toapereonalsM1 ationbeyondhis erimmediaWwntrol. Management will make a reasonable effort to accommodate such requests,considering We operational needs of the District,in accordance with the following guidelines: 49.4.2. The requirement to work any shift is considered an essential job function. An employee who requests a transfer due to health reasons that are supported by competent medical findings will be considered disabled and an effort will be made to explore reasonable accommodations. If such accommodations cannot be made,or if the accommodation would result in an undue business hardship on the District,theemployes will have the option of remaining In the position unless his/her presence would pose a threat to the safety and welfare of others. 49.4.3. Transfer requests for non-medically related reasons will be considered only when the health or well being of the employee or a member of maker Immediate family Is Involved. In such vents,the transfer would normally be of a temporary nature and limited W the duration of the emergency. Loca1501 MOU July 1.201N to June 30. 202249 Pape 33 0"I"ur brom OR 49.4.4. Employees who wish to submit a Request for Transfer must do so in writing to their supervisor. The requeatahould contain sufficient information to allow full consideration of to nature ofthe emergency or medical condition,and Include medical documentation. ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. The Districts Workplace Violence and Weapons Policy will apply Wall unit members. ARTICLE 51. RESIGNATION 51.1. Voluntary when termination of employment wph the District Is automatically deemed Inevoceble after seventy-two(72)hours from the receipt of the resignation except by approval of the Director of Human Resources,or designee. The District may accept In writing any verbal or written reslanatlon at any time and deem such resignation irrevocable. ARTICLE 52. OPERATOR CERTIFICATION 52.1. All employees assigned to the Lead Plant Operator,Senior Plant Operatgr,Plant Operator or Operatm-in-Training classifications will comply with the oeNfication requirements of Chapter 4,Title 23,Subchapter 14 of the California Administrative Code. Failure to maintain a willd certificate will be grounds for dismissal, This provision will not be subject W the Grievance Procedure, 52.2. The District will notify the Office of Operator Codification in writing within thirty(30)days of a final disciplinary action resulting In suspension,demotion or discharge of a ceddied operator If the discipline is the result of commission of any of the acts defined as grounds for discipline within the Operator Certification Regulations. 52.3. As a condition of empoyment,newly hired Operator4n-Training employees who do not possess a Certificate of Competence will apply far an Opamtor-in-Training Certificate and pay any applicable fee to the State Water Resources Control Brand and submit proof of such application to the Human Resources Department within ten(10)business days of employment. Operators-imTraining who do not receive their Grade I Certificate within three(3)years from their date of hire will be released from Districts employment. The District agrees to continue its current polity of reimbursing Operations and Maintenance employees far mounted certifications upon receiving a passing arms. Laos 501 MOU July 1.201N to June 30. 20i Pape 34 091I55 if orm POR SIGNATURE PAGE 20196.2022U MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS,LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE GROUP Executed: LOCAL Sol ORANGE COUNTY SANITATION DISTRICT Deric Barnes,Business Representative Leine Drath Ka0y,LeadCblel Nego0etur Thomas 6Ma11.0,, mBuereaThomes Celia Chandler,Director d Human O'Mahar,President Resources Sid DownerE�. Lauer Maravilla Human Resources&Risk Stewart Menaaer Aadrew-Naa-GiasipeFHumaa Resawse%AaMYst I�awiSfrf Erik Stratmoen6badeaFAeae,Sleward, w@M Andrew Nau.Human Reaourcea Sum sup ODls0 Jason Biederman,Steward daaine4,olarThys DeVnes,Pdnaipal Sm4orPrinc pal Human Resources Analyst Luis Gasca,Steward LauaeKliagerS hhanle Barron,Senior Human Resources Analyst Gilbert BareladergeAlenesal,Steward Pemn-Saarez-Steward Peron Suarez Steward Local Sol MOU July 1,201%to June 30,2022i8 Pegs 35 89)ISSLI Omor.m3 i i Loml Wl MOU July 1,20195IO June 30,2U22i Page 36 89)ISSLI ORW0033 EXHIBIT A LOCAL 501-OPERATIONS AND MAINTENANCE UNIT ERxtlw EIe"ve ERa[tlw per, adWi6l.�Ll-1y JUNuo i]Jul-1B({ CYsaMcetlon 4reM MIN M/1 MIX M/S MIX MNI Automotive/Hea E ui mt Assistant L0053 S1oaa32 $t L $aaea35 %z $az 4 vY 9 P si >a le re ref n Automotive/Heavy Equlpmt Technician LOC67 Saaazg5 Sese23B $taefiSZ Sassaq NseNB. pA3Ja Control Center TeWX iaPQpg or LPL &z8i''2 1're g 42ai6g3 Sea%B5 SJ 1a6elgy 60 a M 9± 1S <23 15 Electrical Technician l LOCOS Saa2p35 $m 4 Ili N1se95 1"c'�za SaxwaL Electrical Techniclan ll LOC]1 SaaAN2 N63ie1 I. Sw.si62 Ii Ym.Saai. Facilities WaAerlBuilder LOC62 N 33 eta Si $s8ai Naia3 sell. ]0 re it 1a 175 de Facilities Worker/Painter LOC62 N°s°''a Saswsgq $z1'95 lrra-° Sa¢se92 Sa 2 Sae'593, Instrumentation Technician LOCO 39.28$i <.OBN 3]30N SA1N ,10% 8]]N a.ze all sea less asxa zss Instrumentation Technician II LOC71 a; 2Ra&t 5N a; 3anfa 5; asSa a; aoS ;u233a 6A6 izZ a83 a-u 4082 B83 Lead Electrical Technician LOC75 a ele Lead Facilities Worker LOC66 Ns 7 S4>JSas $ua6ae 2lzaeie Sasai3 41awa7. 1s .12 ]1 5) s. W Lead Instrumentation Technician LOC75 °m6 ° 6 N92et 4591016 2sa iAa a.18 a-w 4590 9-u Lead Mechanic LOC71 =Iiset 1495¢i ...,,N see 6.4n esa ass max Bsa Lead Plant Operator LOC75 a; aaa8a 5S aass5 a�@_afa 5; eI2Ss a$ za8 ;5essolus ikB iAi aaB a.is abs9 4.1e Lead Power Plant Operator LOC75 iMs,UN Us 3�c s6 °2-j f6 55 6 11KJi Lead Welder/Fabricstor LOC]i 12.MN t12" ia.aaiz a2.fi544 tm% N23N B.JB fi.F£ 9.ea eu aB.82 Bea Machinist LOCfiB $36]a1 54aIGdi S3t21 SNse 5a142 3<64654. M AB 21 Be 1A2 35 LOG]$ SC2.SB SSSA1 si la is si E50.]➢ Maintenance Woi LOCO $21 NfieBee Si SaciNR SM.4] Niva1. M an ai 1e 4o3 a8 Mechanic LOC61 S41 N 11 $ iii 3aissg3 Li Saii 487 Mobile Crane Operator LOC67 ., ats MULL44 saz zee see ass as.aa sea Oparator-In-Training LOCSB S3i-ei3R $ 17 St6.zs31 g3sc sa S2aa13 $469135. oe nz 2 zee 3s Plant Operator LOC66 H ff.5Z6a29aPower Plant Operator I LOCe6 aneN s.12N issiNzwPower Plant Operator ll LOC]1sSis iReliability Maintenance Technician LOC]5 S16NN L55.S3is5@.12461, saeSenior Mechanic LOC6] 3 ,,Is 0$ 33N ].]2NAai 23safi8Senior Plant Operator LOC]1 i2.W$d 51.12N olm5 <.fia$ N23N Lora1501 MOU July 1,201%to June 30,20224e Page 37 69i155L1 ORWem3 a�a � �,a aeax abaa WeldarlFabnc r ww 11 a.a J °�8 -�6 au aae asa ase area ass Loml Wl MOU July 1,20195IO June 30,2022i Page 30 a9]ISSLI ORW0033 BOARD OF DIRECTORS Meeting Date TOBE.Of Dir. -- 08/28/19 AGENDA REPORT Nu Item Item Nu Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: STRATEGIC PLAN DEVELOPMENT GENERAL MANAGER'S RECOMMENDATION Provide input to staff on the development of the Strategic Plan. BACKGROUND The Orange County Sanitation District(Sanitation District)is developing its Strategic Plan. The strategic plan is a policy level roadmap which defines the future desired state of the agency and lays out initiatives to move toward that desired state. Staff has offered 14 individual policy areas which, when fully developed, will comprise the overall Strategic Plan. Preliminary policy statements have been developed by the Executive Management team based on survey input previously provided by Board Members and staff. Board of Director input is critical to the development of the Strategic Plan. In order to properly review and receive input,the items will be presented individually over three Board of Directors' meetings as follows: August 28 • Budget Control and Fiscal Discipline • Energy Independence • Asset Management • Chemical Sustainability • Climate and Catastrophic Event Resiliency September 18 • Biosolids Management • Compounds of Emerging Concern • Food Waste Treatment • Environmental Water Quality, Stormwater Management and Urban Runoff • Water Reuse September 25 • Resilient Staffing • Safety and Physical Security • Cyber Security • Property Management Page 1 of 2 Staff intends to finalize the items and compile them into a draft plan for formal adoption in October or November of this year. The adopted Strategic Plan will be the basis of Fiscal Year 2020-21 and 2021-22 budget development. RELEVANT STANDARDS • Engage the Board of Directors in setting public policy • Build brand, trust, and support with policy makers and community leaders PROBLEM The Strategic Plan needs to be updated. PROPOSED SOLUTION Solicit and incorporate the Board of Directors' input in the development of the proposed Strategic Plan document. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Proposed Orange County Sanitation District Budget Control & Fiscal Discipline Policy Statement • Proposed Orange County Sanitation District Energy Independence Policy Statement • Proposed Orange County Sanitation District Asset Management Policy Statement • Proposed Orange County Sanitation District Chemical Sustainability Policy Statement • Proposed Orange County Sanitation District Climate and Catastrophic Event Resiliency Policy Statement RCT:gc Page 2 d 2 Proposed Orange County Sanitation District Budget Control and Fiscal Discipline Policy Summary Policy Statement The Sanitation District will prudently manage the public funds that it collects. It will take a long- term planning approach to its facilities and rate setting that provides a stable setting program, prudent reserves and pay as you go philosophyfor operating and replacement capital expenses. Background The Sanitation District manages nearly$500 million annually. These funds support the Sanitation District's Operating,Capital and Debt expenditures. The Sanitation District focuses its fiscal policy around three distinct areas, (1) Revenues, (2) Portfolio Management and (3) Debt Management and these areas are described in the Budget, Investment Policy and Debt policy all of which are updated annually. Current Situation 1) REVENUES The majority of the Sanitation District's revenue is generated by user fees and charges. Currently, the Sanitation District fees are in the lower third of its comparison agencies'. The Sanitation District's revenues come from three general areas: Fees and Charges (74%), Property Taxes (21%) and other smaller revenue sources(5%). Fees and Charges: User fees are ongoing fees for services paid by Single Family and Multifamily customers connected to the sewer system. Also included in this category are Permit Fees (User fees paid by large industrial and commercial business owners connected to the sewer system and Capital Facility Capacity Charges (CFCC) (a one-time charge imposed at the time a newly constructed building or structure is connected to the Sanitation District system. The Sanitation District policy has been to focus on cost recovery while keeps fees as low as possible. Property Taxes: The Sanitation District receives a share of the basic property tax levy proportionate to what was received in the 1976 to 1978 period less $3.5 million allocated to school districts. These funds are dedicated to the payment of debt service. Other Revenue: Other Revenue includes Interest Earnings, Intra-District Transfers and small revenue sources. Budget Control and Fiscal Discipline Policy Page 1 2) PORTFOLIO MANAGEMENT The Sanitation District Investment Policy is governed by three tenets: A. Safety: The safety and preservation of principal is the foremost objective of the investment program. Investments shall be selected in a manner that seeks to ensure the preservation of capital in the overall portfolio. This will be accomplished through a program of diversification and maturity limitations. B. Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for the Sanitation District to meet its reasonably anticipated operating expenditure needs. C. Return on Investments:The Sanitation District's investment portfolio will be structured and managed with the objective of achieving a rate of return throughout budgetary and economic cycles, commensurate with legal, safety,and liquidity considerations. The Sanitation District's investments are separated into two distinct portfolios, Long-term and Short-term,with a primary focus on the Long-term portfolio. The Long-Term portfolio always focuses on four elements, duration, sector allocation, term structure, and security selection. Duration • Typically,the Sanitation District keeps the duration of a portfolio'close'to the benchmark duration as we feel the benchmark duration is consistent with the risk tolerance of the strategy. • The investment policy of the District stipulates the average duration must not exceed 60 months and be within 80-120%of the benchmark. • Historically the deviation of the long-term portfolio versus the benchmark is close to 5%. Large deviations in the duration of the portfolio compared to the benchmark are an anomaly. Sector Allocation • The Sanitation District takes an active approach to asset allocation, differentiating our holdings versus the benchmark,with typically a modestly higher risk exposure compared to the benchmark. • Some of the asset classes we find more attractive in the current investing environment include Corporate notes, Asset Backed Securities, and Treasury notes relative to the Agency and Supranational sectors. Budget Control and Fiscal Discipline Policy Page 2 • The sector allocation of the portfolio will evolve over time as our outlook for the various eligible investment options changes. Term Structure • The Sanitation District manages the term structure of the portfolio by focusing on either a bullet, ladder or barbell structure, relative to the benchmark. • For most of 2018 the structure was gravitating towards more of a bullet structure in light of the change in the sharp of the yield curve,with short term interest rates moving higher at a greater velocity than longer maturity securities. • Currently, with the yield curve very flat, we are migrating back towards more of a barbell structure, with new purchases focused at the short and long end of the eligible maturity distribution. We also find the middle to the maturity distribution, near the three-year maturity point,to be the most expensive from an absolute and relative value perspective, further supporting the barbell structure. Security Selection • Within the Corporate and Asset Backed sector, the Chandler team focuses on adding stable to improving credits to be consistent with the overall investment objective of safety, liquidity and return. o As a Corporate holding becomes more seasoned, with a short maturity, it is often utilized as a 'source of funds'to facilitate new holdings in the portfolio. o Typically, Asset Backed securities are held to maturity, but in the event of a liquidity need and/or a deteriorating credit situation we would look to reduce the exposure. • The Sanitation District allocates to the Agency and Supranational asset classes when we find the spread over a like maturity Treasury notes to be attractive. o Considering the lack of issuance in the Agency sector since the financial crisis,the relative value of the sector has become more challenging. o The Sanitation District has a core view the Supranational Asset class should offer a modest spread concession to the Agency sector, and the team is typically active in the sector when the additional spread pick-up is compelling. • Across all asset classes, the Sanitation District will remove exposure to a security that is faced with a deteriorating credit situation and/or trading at an irrational valuation where Budget Control and Fiscal Discipline Policy Page 3 a swap into an alternative security will be beneficial to the portfolio over a reasonable investment time horizon. 3) DEBT MANAGEMENT Due to the magnitude of the capital improvement program, the Sanitation District has utilized a combination of user fees, property taxes and debt to meet its total obligations and maintain generational equity. It is the Sanitation District's policy not to issue any new additional debt for any existing obligations. However, the Sanitation District will actively review opportunities to refinance existing debt where possible provided the new refinancing results in a lower total cost and/or shortens the length of the obligations. The primary debt financing mechanism used is Certificates of Participation (COP) COPS are a repayment obligation based on lease or installment sale agreements. As of July 1, 2019,thetotal outstanding COP indebtedness was $973 million with a blended interest rate of 3.05%. It is anticipated that the debt will be paid off by 2044. Budget Control and Fiscal Discipline Policy Page 4 Proposed Orange County Sanitation District Energy Independence Policy Summary Policy Statement The Orange County Sanitation District(Sanitation District)will strive to be a net energy exporter. Electrical, thermal, and methane gas generation will be maximized. Energy utilization will be minimized using sound engineering and financial principles. Background The Orange County Sanitation District (Sanitation District) is a regional governmental agency principally chartered to protect the public health through collection and treatment of wastewater. The governing Board of Directors has defined this role to include the recovery and utilization of resources from wastewater for the public good as a part of that mission. The environmental impact mitigation of the human activity of 2.6 million people and the natural drainage of the 471 square miles the Sanitation District serves is our principal concern. Environmental impacts can be broadly separated into impacts to land, air, and water. The Sanitation District owns and operates facilities that are capable of shifting the impacts of this human activity between land, air, and water through the use of natural processes and energy. For example, as a water focused utility, the Sanitation District seeks to produce the cleanest water possible to minimize the impacts of human activity on waterways and the ocean, as well as to renew freshwater resources for further domestic and commercial use. A natural result of cleaning this water is the separation and concentration of constituent solid and gaseous materials. These solid and gaseous products will impact land and air. The balance of impact on land,air, and water are shifted by application or creation of energy through chemical, biological, or thermal conversion technics. The Sanitation District is also committed to be a good neighbor. As such, significant amounts of energy are spent capturing and converting odorous air and vapor streams. The Sanitation District has pursued a comprehensive program to cover and seal its liquid and solid processes. Air streams are ducted to large fans which move thousands of cubic feet of foul air per minute through chemical, biological, and activated carbon beds to scrub the air of odorants that are regulated or may be perceived as a nuisance by the community. The Sanitation District has utilized an anaerobic digestion process that relies on biological conversion of solid organic material to methane and carbon dioxide gas. The methane is converted to electrical and heat energy in power plants for internal use. The Sanitation District's secondary treatment system is another example of using energy to convert water impacts to air emissions. Approximately 23% of the Sanitation District's energy usage within the treatment process is devoted to aerating water so biological agents can convert soluble organic material to nitrogen and carbon dioxide. The generation of energy itself creates an impact on the environment in air and thermal emissions. Energy Independence Policy Page 1 Current Situation The potential exists to further shift environmental impacts between land, air, and water through the utilization of energy. The Sanitation District is an environmental steward that seeks to balance and minimize overall impact by efficiently utilizing the energy inputs to its processes and maximizing the harvesting of energy available in the incoming wastewater. On the energy use side of the ledger, the Sanitation District invests prudently in lifecycle energy efficiency to minimize the use of energy to achieve its mission. Pumping systems to lift water and move material are premium efficiency. Thermal energy is harvested from power production for use in the process and to heat and cool occupied buildings. Aeration compressors and diffusers are selected by overall efficiency. Lighting systems are upgraded over time to more efficient technologies and lighting levels are balanced between safety and security needs versus energy utilization and light pollution concerns. Facility designers and operators make careful choices regarding the utilization of every watt of electricity, BTU of heat, and therm of gas consumed. On the energy generation side of the ledger,the Sanitation District seeks to maximize the internal creation of energy. The primary source of energy creation is in digester gas, also called biogas, which is mostly methane. Organic solids collected and concentrated in the water treatment processes are converted biologically to biogas composed of 65% methane, 34% carbon dioxide, and other trace constituents. The Sanitation District has been using this technology since the 1950s. Research has been ongoing since that time to maximize the production of digester gas. Some of the areas of research include improved mixing and heating; improved feeding; chemical addition to limit trace pollutant production; introduction of food waste;injection of fats,oils,and grease; and cell lysing. The Sanitation District cleans the biogas and converts this biogas into electricity, heat, and exhaust gas. The exhaust gas is regulated ever more tightly for nitrogen compounds, carbon monoxide, particulates, and volatile organic compounds which require costly and performance degrading engine control technologies. This is another example of an air impact/energy trade off. These internal systems of energy harvesting provide roughly 66%of the Sanitation District's electrical demand and 92% of the Sanitation District's thermal demand in the treatment plants. The Sanitation District can shift the digester gas between treatment plants via an interplant pipeline and has roughly 8 MW of additional generation capacity if more gas is produced. In addition,the Sanitation District is installing electrical battery storage capacity. This system is primarily in place to lower operating cost by importing electricity for charging during low-cost nighttime hours and discharging that energy for process use during peak-cost hours. The slight energy loss due to system inefficiencies is outweighed by the cost savings and benefit to the region by lowering the peak demand of the Sanitation District by up to five megawatts. Energy Independence Policy Page 2 Future Policy Statement The Sanitation District seeks to be energy independent by self-generating all the electrical and thermal energy necessary to sustain its operations. This will be accomplished by economically minimizing its utilization requirements and maximizing energy harvested from the wastewater it receives. The Sanitation District will also study and use photovoltaic cells in non-process areas where it makes economic sense. Energy independence will improve the Sanitation District's environmental impact and improve its operational reliability and resiliency. When the Sanitation District has achieved energy independence, it will seek to make excess biogenic or green energy available to external users via gas sales, the power grid exports, or transportation fuels. The State of California has set goals for renewable energy utilization for electrical production and hydrogen transportation fuels. The Sanitation District's biogas is viewed favorably in these industries to meet the State of California targets. The Sanitation District is working very diligently and creatively to maximize the production of gas and reduce its own energy needs, but energy independence is the first goal which has not yet been met. Staff recommends that innovative research continue to maximize energy harvesting and to minimize energy inputs first to make the Sanitation District energy independent in the most basic mission of protecting the public health and the environment. Once this has been achieved, excess energy can be made available for meeting the State of California's goals for the electrical grid and transportation fuels. Initiatives to Support Progress Toward the Policy Goal: Initiative: Maximize the anaerobic digestion conversion of organics to methane through receipt of food waste and operational techniques. Initiative: Investigate and install energy storage and photovoltaic systems where practical to achieve energy independence/resilience. Initiative:Continue to support the conversion of biomethane into electricity and heat for process use. Improve systems as necessary to comply with air regulations. Energy Independence Policy Page 3 Proposed Orange County Sanitation District Asset Management Policy Summary Policy Statement The Orange County Sanitation District (Sanitation District)will assess and manage the collection system and treatment plant systems and assets to improve resilience and reliability while lowering lifecycle costs. This will be accomplished through adaptive operation, coordinated maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability and efficiency. Background The Sanitation District is a regional governmental agency principally chartered to protect the public health through collection and treatment of wastewater. The governing Board of Directors has defined this role to include the recovery and utilization of resources from wastewater for the public good as a part of that mission. The environmental impact mitigation of the human activity of 2.6 million people and the natural drainage of the 471 square miles the Sanitation District serves is our principal concern. The Sanitation District owns and operates extensive facilities to achieve its mission. The Sanitation District estimates the replacement value of the civil, mechanical, and electrical assets in its collection system, Plant No 1 in Fountain Valley, and Plant No. 2 in Huntington Beach to be nearly$11 billion. The Sanitation District has been building the piping, pumping, and treatment infrastructure it utilizes for more than sixty-five years. It is necessary to expand, renew, replace, demolish, and rebuild components of the system to deal with wear and tear and meet new challenges. The early years for the Sanitation District were characterized mostly by capacity expansion to meet the challenges of increased flows as the county grew. The late 1970s to the 2000s were more defined by improved levels of treatment. The last ten years have been focused on increasing the level of resource reuse. One of the key success factors for the Sanitation District has been the ability to upgrade and repurpose its operating facilities to accomplish high levels of treatment and reuse. Current Situation The Sanitation District is a highly planned, forward-looking organization. The collection system and each of the treatment plants are broken down into granular functional parts. Each part is well defined and future requirements are estimated. The Sanitation District has a detailed understanding of what is owned, what condition it is in, and how it is capable of performing. The collection system is made up of independent pipe networks that were installed by the former independent sanitation districts to deliver flow to the joint treatment works. Generally speaking, Asset Management Policy Page 1 the natural watershed drainages in the service area are served by major trunk sewer systems. The Sanitation District has worked with member city and agency staff to understand future development plans, flow estimates, and has collected historical inflow and infiltration rates during wet weather events to assure adequate flow carrying capability exists in each trunk sewer system. The Sanitation District also factors in the effects of drought and lower domestic water usage rates to make sure the sewers operate properly at low-flow rates. The treatment plants are broken down into the discrete process units that make up the whole. Each plant has a headworks unit that brings in flow and does preliminary treatment, a primary treatment unit which does gravity settling, multiple biological secondary treatment systems, solids handling and dewatering,power generation and distribution utilities,water and air system utilities, and an outfall system to release treated water to the ocean. Each plant can treat 320 million gallons per day of wet weather flow, but only 185 million gallons total on average is treated. The Sanitation District must always maintain the ability to treat both the average flow and peak wet weather flow. The Sanitation District understands that every asset has an expected life. Electrical systems are generally limited by component obsolescence to 20 years of life. Mechanical and coating systems are also generally limited by erosion, corrosion, and wear to 20 years of life. Civil structures and pipes are generally limited to 60 to 80 years of life if maintained on a regular basis. With this in mind,the Sanitation District has created a facilities master plan that plans to renew or replace facilities on this regular basis. Collection system projects are driven by growth projections or condition findings. Pipes are upsized or renewed based on flow projections, corrosion observation, coating system failure, or the ability to increase reclamation. The 15 regional pump stations are renewed on a more frequent basis due to the mechanical wear and tear and electrical component obsolescence needs, about every 25 years. The master plan for the treatment plants is much more dynamic. In addition to the electrical, mechanical,and civil asset considerations,there is also the need to meet new requirements. The new requirements are driven by regulatory agencies or by the Board of Directors to change a discretionary level of service. Examples include: capacity demands (more water, more solids), lower discharge requirements(lower BOD/TSS to the outfall, lower nutrients to the ocean), more water for reclamation, better energy conversion of solids, and many more. The 2017 Facilities Master Plan took a snapshot in time looking at the anticipated needs and levels of service to lay out a detailed project plan to morph the Sanitation District infrastructure over time to meet the expectation. Renewal or replacement projects with costs and schedules were laid out for each individual unit of the treatment plants to address capacity, condition, level of service, and anticipated new regulatory drivers. Future Policy Statement The Sanitation District will continue to invest in the infrastructure necessary to meet its mission. The Sanitation District will seek to provide its required level of service at the minimum lifecycle Asset Management Policy Page 2 cost for its collection and treatment systems. The 2017 Master Plan was the snapshot basis of the Capital Improvement Plan, but the Asset Management Plan is the means to update and modifythe Capital Improvement Plan to meet new requirements and conditions astime goes by. The Sanitation District will understand in a transparent way: what it owns,the condition of those assets, the capacity of collections and treatment required, the level of service required by its regulators and Board of Directors and will anticipate new regulations that may require system improvement. This understanding will drive coherent operations, targeted maintenance, and capital investment strategies to assure resilient, lowest lifecycle cost compliance with the requirements. Operations is committed to optimizing the operation of the systems to extend equipment life and minimize energy and chemical utilization, while meeting all regulatory and level-of-service requirement. Maintenance is committed to maintain the installed assets in a ready state for operations. Maintenance will seek to balance individual component preventive maintenance, repair, and renewal in harmony with the Capital Program. The Capital Improvement Program is based on the Master Plan, modified by the annual Asset Management Plan,and will execute the projects to install, renew, or replace trunk sewers or treatment plant units on a scheduled basis. Asset Management at the Sanitation District is the living management of the operation strategies, maintenance plans,and implementation of the Capital Improvement Plan. The Sanitation District will find creative ways to maximize asset life or meet new capacity or level of service goals through operations and maintenance. The Sanitation District will annually reassess its condition, capacity, level of service, and regulatory conditions to drive operations and maintenance practices and modify the Capital Improvement Plan projects. Initiatives to Support Progress Toward the Policy Goal: Initiative:Create an annual Asset Management plan documenting the condition of the collection system and treatment plants, and upcoming maintenance or capital projects. Initiative: Coordinate the efforts of operations, collections, mechanical maintenance, electrical maintenance, instrument maintenance and engineering through process teams to assure the Sanitation District's resources are focused on the high priority work functions. Initiative: Maintain a 20-year forecast of all CIP projects needed to maintain or upgrade the Sanitation District's nearly $11 billion in assets on a prioritized risk basis to establish rate structures. Asset Management Policy Page 3 Proposed Orange County Sanitation District Chemical Sustainability Policy Summary Policy Statement The Sanitation District has a need to use chemicals in its treatment process to improve plant performance, reduce odor and corrosion potential, and meet its regulatory requirements. These commodity chemicals are provided by outside vendors through the purchasing process. Some of these chemicals are subject to price swings due to market condition changes such as energy cost impacts, raw material cost changes, commercial competition changes, and transportation cost changes. The Sanitation District will identify chemicals key to its operation, investigate the market risks for those chemicals and devise strategies to mitigate identified risks to availability and pricing. Background The Orange County Sanitation District(Sanitation District)treatment plants and collection system use several bulk chemicals. A sustainable supply of these chemicals is critical to maintaining an acceptable level of treatment and for ensuring compliance with all regulatory requirements. The Sanitation District spends about$13 million annually on the procurement of eight key chemicals which generally can be broken down into four categories: coagulants, odor/corrosion control, disinfection, and boiler water treatment. Boiler water treatment chemicals are low volume and readily available and will not be considered here. Coagulant Chemicals Coagulant chemicals include ferric chloride, anionic polymer, and cationic polymer. These chemicals are the workhorses of the sewage treatment process. Coagulant chemicals work to clump together organic material so it can more readily be separated from water. Ferric chloride is the first chemical added in the treatment process. It is a powerful settling agent that causes organics to clump together and settle to the bottom of primary basins. It is a double-duty chemical in that it also controls the formation of hydrogen sulfide gas,which is a major odorant, by binding to suspended sulphur compounds and causing them to settle before they can be converted by natural bacterial processes to hydrogen sulfide. Ferric chloride is an iron salt that is produced by reacting iron with hydrochloric acid. It is generally a byproduct of steel treatment, a leftover pickling agent. Ferric chloride is commonly used in the water and wastewater industries. Historically, this chemical has been the subject of a limited supplier base in Southern California. The Sanitation District has been actively splitting supply contracts to multiple vendors to ensure multiple vendors are available. On-site generation Chemical Sustainability Policy Page 1 of the chemical is impractical due to the hazardous nature of the manufacturing process and acid handling,the bulk steel handing logistics, and waste products disposal. Anionic polymer works with ferric chloride to further aid in the coagulation or settling of organic compounds in the primary treatment process. These long-chain molecules are designed to be negatively charged to attract or collect positively charged ferric chloride induced organic clumps or flocculant. The use of ferric chloride and anionic polymer is called Chemically Enhanced Primary Treatment or CEPT. The Sanitation District has been using CEPT for more than thirty years. Anionic polymers are specially designed chains with many potential variants and multiple vendors. Part of the purchasing process for polymers involves polymer trials to document the efficacy of different products from different vendors to get the best cost-performance balance. Cationic polymer is generally used to thicken sludge or biosolids in centrifuges or dissolved air floatation thickeners (DAFT). These long-chained, positively charged molecules are essential to the proper operation of centrifuges and DAFT units. Part of the purchasing process for these polymers also involves polymer trials to document the efficacy of different products from different vendors to get the best cost-performance balance. It is important to note that it is entirely possible that four different cationic polymers will be used to optimize the performance of Plant No. 1 dewatering centrifuges, Plant No. 1 thickening centrifuges, Plant No. 2 dewater centrifuges, and Plant No. 2 DAFTs, because the performance can vary greatly depending on the equipment or process. Each process will have its own polymer trial to determine the cost- performance balance for each application. Odor Control Chemicals The Sanitation District uses several chemicals in the collection system and the treatment plant to reduce the odors normally attributed to sewage and sewage treatment. These chemicals can either prevent the formation of odor causing compound, called odorants, or they can destroy odorants that already exist. Chemicals that prevent the formation of odorants include ferrous chloride, calcium nitrate, magnesium hydroxide, and caustic. Chemicals used in the collection systems tend to be more benign than chemicals used in the treatment plants due to their proximity to the public. Ferrous chloride is closely related to Ferric chloride as described above. It is a powerful settling agent that prevents the formation of hydrogen sulfide by tying up and settling sulfide compounds in the collection system. It is a preferred chemical because of its dual role, but it isn't as benign as other choices. Calcium nitrate is another choice for collection system odor control. It works in a different way. Calcium nitrate alters the biological equilibrium in sewage. Generally, bacteria that live by respirating oxygen are the most robust organisms,followed by nitrogen respirating bacteria, and Chemical Sustainability Policy Page 2 finally sulfur respirating bacteria. Adding calcium nitrate to sewage creates an environment where sulfur loving bacterial don't thrive or create hydrogen sulfide. Magnesium hydroxide is a third choice for collection system odor control. It works primarily by raising the pH of sewage to a point that is not conducive for odor causing bacteria to thrive. Magnesium hydroxide is the most benign of the chemical choices as itis the main ingredient in Milk of Magnesia. All three of these chemicals are continuously fed into sewer systems at different points to consistently control the formation of odorants in the system. Where the Sanitation District doesn't have the ability to site a chemical dosing station and persistent odors are being experienced, the Sanitation District has the ability to utilize caustic slug dosing. Caustic slug dosing involves using tanker trucks to discharge up to 6,000 gallons of sodium hydroxide into a sewer manhole structure. The very high pH has the effect of killing the bio slime layer on sewer pipes that creates hydrogen sulfide. This treatment has an instant benefit that reduces hydrogen sulfide production for days to weeks depending on system conditions. The final major odor fighting chemical is bleach. Bleach is used in treatment plant chemical scrubbers to oxidize odorants in air scrubber units. Bleach is an effective neutralizer of hydrogen sulfide, methyl mercaptan, methyl disulfide, dimethyl disulfide, and many others. Disinfection The Sanitation District successfully discontinued disinfection of its effluent to the long outfall. This means that thousands of gallons of bleach and sodium bisulfate are no longer required to be purchased or discharged to the ocean. However, in the event of a discharge to the short outfall or river overflow, disinfection by bleach will be required. Significant on-site storage of bleach and dichlorination chemical, sodium bisulfite, is necessary for this emergency contingency. Bleach does have a shelf life of about six months. The Sanitation District rotates its disinfection supply to its odor control and plant water treatment systems to prevent product waste. Process specific Chemicals The Sanitation District uses pure oxygen to support its activated sludge secondary treatment process for Plant No. 2. The Sanitation District previously self-generated pure oxygen using a cryogenic oxygen plant rated at 70 tons per day. This plant was removed because it was inefficient at its current average utilization of 35 tons per day and was at the end of its useful life. The Sanitation District contracts for delivery of liquid oxygen and uses a vaporization system to deliver pure gaseous oxygen to the activated sludge process. Chemical Sustainability Policy Page 3 Chemical Supply—Purchase vs. Make The Sanitation District has relied on purchasing bulk commodity chemicals to its treatment plant and collection system. This has proven to be an effective strategy for operational flexibility and to allow concentration on core business. Operationally, the types and volume of chemicals change over time. Over time the types of polymers that are most efficient change. There is a need for more or less volume of chemicals based on sewage flow, sewage quantity, and flow splits between plants. Managing the generation of specialized chemicals using hazardous materials imposes a significant training burden on staff, increases the regulatory oversight and requirements, and increases overall risk to the organization. The Sanitation District has maintained a policy to split the volume of orders between two vendors to assure competition exists in the marketplace for ferric chloride. While the Sanitation District generally cooperates with other public agencies to pool purchasing power to secure the lowest possible cost through high volume purchasing, some specialty chemicals like ferric chloride require split orders to maintain competitive market forces. Current Situation The Sanitation District is constantly changing and improving its facilities to meet new challenges. Each of the facility changes offer new opportunities to reconsider how the Sanitation District operates its processes and how chemicals are used. The best chemical stability outcome is to cost-effectively eliminate the use of the chemical. This is the strategy behind cessation of bleach disinfection of the outfall effluent. Staff are in the process of studying the potential to operate the treatment plants differently to minimize or eliminate use of selected chemicals. Facilities like centrifuge sludge thickening provide new opportunities to adjust ferric chloride and anionic polymer usage. Opportunities for substitute chemicals will be explored to understand overall cost and efficiency savings potential. This includes iron vs. aluminum coagulant studies, anionic polymer trials, and cationic polymer trials. Staff will also reevaluate operating parameters such as in-basin sludge co-thickening, primary basin sludge blanket level parameters, as well as the greater loading of the secondary treatment systems. When optimized chemical types and dosages are confirmed, staff will review the market conditions for each important chemical. This will serve as the basis for a procurement strategy for each chemical. Future Policy Statement The Sanitation District will thoroughly understand its treatment processes, the potential modes of operation, and the benefit and cost of chemicals to improve or stabilize its process. The Sanitation District will create a list of necessary chemicals for optimal treatment operations which will consider chemical cost, chemical availability, treatment stability, energy utilization, energy Chemical Sustainability Policy Page 4 creation, nuisance odor control, biosolids generation/cost, and regulatory permit compliance risks. Chemicals that are deemed most beneficial will be procured at the lowest overall cost from market providers to the extent possible. Where there are market stability concerns, the purchasing division will devise procurement strategies to mitigate procurement risks. Where procurement risk can not be satisfactorily mitigated,technical staff will evaluate alternatives such as alternate operating methods,substitute chemical usage, or on-site generation of a chemical if feasible. Initiatives to Support Progress Toward the Policy Goal: Initiative: Reduce reliance on any particular chemical or vendor and establish flexibility to utilize other chemicals/processes to accomplish the same operational objectives. Initiative: Update the Sanitation District's Chemical Sustainability Study and incorporate the results in future procurement recommendations. Chemical 5ustainability Policy Page 5 Proposed Orange County Sanitation District Climate and Catastrophic Event Resilience Policy Summary Policy Statement The Orange County Sanitation District (Sanitation District) will design systems and operations to withstand or adapt to adverse conditions that can reasonably be expected. These adverse events include earthquake, atmospheric river storm events, flooding, sea level rise, or electrical grid collapse. Background The Sanitation District is a regional governmental agency principally chartered to protect the public health through collection and treatment of wastewater. The governing Board of Directors has defined this role to include the recovery and utilization of resources from wastewater for the public good as a part of that mission. The environmental impact mitigation of the human activity of 2.6 million people and the natural drainage of the 471 square miles the Sanitation District serves is our principal concern. The Sanitation District owns and operates extensive facilities within its service area to achieve its mission. The service area faces special challenges because of the geographic location of its facilities. These challenges include: its position on and near seismic risk factors, its proximity to the pacific coast, adjacency of its treatment facilities to the Santa Ana River, and being served by increasingly fragile energy utilities. The Sanitation District's facilities are situated on or near several seismic risk factors. Plant No. 2 is located directly on top of the Newport-Inglewood fault. Both plants and the collection system are influenced by many adjacent major and minor faults capable of delivering damaging energy. Both of our treatment plants and the majority of our collection system sit on top of silty, alluvial soils that can have the effect of amplifying the earth motion and risk liquefaction during a seismic event. The Sanitation District has invested significantly in the last 50 years to improve the soils, foundations, and structures to resist these seismic risks. As geotechnical and structural knowledge and building codes progress, upgrades and facility replacements will be necessary. Another seismic risk associated with having a treatment plant and several pump stations located on the Pacific Coast, is the risk of tsunami inundation. The Sanitation District has been working with and reviewing the plans of the City of Huntington Beach and the City of Newport Beach to understand and quantify this risk. The American Society of Civil Engineers (ASCE) has created a new standard, ASCE 7-16, to layout design parameters for lateral forces and inundation zone associated with potential tsunamis. The Sanitation District understands that climactic factors we face change widely over time. The Sanitation District's systems must perform in extreme wet weather situations (atmospheric rivers),extreme dry weather conditions(drought),extreme tidal conditions(king tides, rising sea levels), as well as high and low temperature extremes. The Sanitation District generally designs Climate and Catastrophic Event Resiliency Policy Page 1 for historical and expected "average conditions" for optimal performance but must also assure operations for extreme weather events. The Sanitation District serves a critical public health role. Its operations must be reliable 24 hours perday,365 days a year. Electricity,and to a lesser extent natural gas,are necessary for pumping and treatment operations. Both electricity and natural gas supplies have become increasingly vulnerable to interruption. Electricity deliveries are more vulnerable due to wildfire outage criteria,loss of local generation assets,aging infrastructure and extreme weatherevents. Natural gas supplies are more vulnerable due to the loss of local storage capacity, aging infrastructure, line corrosion, and more stringent regulatory requirements. The Sanitation District has significant capacity to self-supply critical energy requirement for extended periods. Current Situation The Sanitation District has spent considerable effort quantifying its seismic, climate, and utility supply risks. Several key studies have been initiated and will be completed in the next two years. The most acute risk factor faced by the Sanitation District is seismic risk. Climate and utility supply risks are more accurately described as chronic risks. Seismic risk factors include ground shaking, liquefaction, lateral spreading, and fault rupture. Both treatment plants are situated in historic riverbed with poor soil conditions. The collection system is vulnerable to failures during seismic events. The state of the art for seismic design has changed greatly over the Sanitation District's history and will continue to do so. Many of our critical structures were designed or installed prior to the great learning that occurred in the earthquakes of the 1990s. Significant effort has been expended to better characterize the soil conditions under our treatment plants and pump stations. Projects to refurbish or replace existing unit processes are, or soon will be, scoped and budgeted to provide enhanced seismic resilience. These measures include soil mixing to stiffen the soil,various foundation designs and building structure improvements. Tsunami resilience and rising sea level protection can go hand in hand. To a great extent, these two risk factors can be mitigated in the same way. The Tsunami guidelines for inundation in ASCE 7-16 are a reasonable peer reviewed standard. By complying with this standard for Huntington Beach and Newport Beach, the Sanitation District will be reasonably prepared for conservative sea level rise estimates at Plant No. 2 and pump stations in the City of Newport Beach. The Sanitation District has also spent significant effort to prepare for the effects of weather extremes on its operations. Extreme wet weather impacts operations. Inflow and infiltration during intense storm activity have multiplied average dry weather flow rate by up to three times in recent years. The Sanitation District has significant wet weather capacity and will continue to maintain a 640 million gallon per day influent and outfall capacity which is roughly 3.5 times our average dry weather flow. Historically high rains as seen in 1863 and 1938 will push our systems to the limit. Climate and Catastrophic Event Resiliency Policy Page 2 The Sanitation District has also adapted its systems to perform in extreme dry weather. The Sanitation District in cooperation with OCWD operates the largest potable water reuse system in the world. This is made possible by replumbing our treatment plants and adding new smaller pump stations to deal with extreme low outfall flow rates in the morning hours. The Sanitation District also has, and continues to grow, the ability to shift influent flow between its treatment plants which creates additional resilience for risk factors. Finally, on the topic of utility supply, the Sanitation District built redundant supplies for it most critical needs: electricity, natural gas and water. The Sanitation District has maintained three sources of electricity supply for more than 25 years. The treatment plants can be supplied with powerfrom Southern California Edison,the Sanitation District's Central Generation Plants or on- site diesel generation systems to maintain basic operation to protect public health. In terms of natural gas,the Sanitation District has been producing bio-methane through anaerobic digestion since the 1950s with enough capacity to provide electricity and necessary process heat. Future Policy Statement The Sanitation District will continue to build and improve its facilities to meet the seismic,climate and energy infrastructure risksthat itfaces with a long-term, planned approach. Acute life-safety type issues that are identified or facilities that are damaged or fail in a catastrophic event will be addressed very quickly. However, it is not practical to update $11 billion in facilities every time a code is updated or new climate change estimate is released. The Sanitation District will stay abreast of code and climate change estimates as they occur and will implement improvements or replacements to facilities on a long-term basis in line with its asset management practices. The Sanitation District generally plans to refurbish or replace its mechanical and electrical assets every 20 to 25 years with an average capital improvement investment of$250 million per year. The Sanitation District facilities meet industry codes at the time they are designed. As time goes on and codes are updated, it is not required to upgrade existing facilities to meet those latest codes unless there is a mandate to do so, or a risk in not doing so is recognized. The Sanitation District will accept some incremental risk in having some facilities that are not necessarily compliant with latest building codes or subject to incrementally greater risks until the next project comes along. All of the Sanitation District's facilities have a planned life span with two to three refurbishment cycles. Identified seismic or flooding vulnerabilities may drive a replacement versus refurbishment decision in the normal capital planning process. The Sanitation District will continue to aspire to energy independence which will help mitigate vulnerabilities to loss of electrical and gas utilities. In addition, the Sanitation District will continue to maintain third level, diesel generator, electrical supply capability for critical loads. On-site diesel storage will provide up to three days of power to run the plants. Pump stations diesel generation will be site specific in its design based on flow risks, hydraulic storage capacity, and site constraints. Either on-site generation or quickly deployable mobile generators will provide emergency power for up to days at a time. Climate and Catastrophic Event Resiliency Policy Page 3 Initiatives to Support Progress Toward the Policy Goal: Initiative: Complete an engineering study of the seismic vulnerabilities of the treatment plants. Incorporate necessary upgrades into future capital improvement projects. Initiative: Complete the biannual high flow exercise to assure readiness for a high flow event. Maintain a higher level of readiness October 15 through March 15 and in advance of predicted significant rain events. Initiative: Study the potential impact of tsunami and changing climate conditions including flooding due to high tides and heavy rain events. Climate and Catastrophic Event Resiliency Policy Page 4 WOODRUFF, SPRADLIN&SMART CLOSED SESSION 1 555 ANION BOULEVARD, BUTTE 1200 COSTA M.s A, CA 92626-9670 (714)559-9000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session on August 28, 2019 for the purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and circumstances reflect a significant exposure to litigation against the District. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(2). The facts and circumstances are as follows: on July 18,2019 former District employee Jose Cruz filed a claim against the District alleging wrongful termination,retaliation,and gender discrimination. Respectfully submitted, By Bradlo R. Hogin, eneral Counsel 14344]4.1 (t... CLOSED SESSION 2 WOODRUFF $PRADllN 6$MAKi 555 ANION BOULEVARD, SUITE 1200 COS1A M.s A, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on August 28,2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Confidential Group: Assistant Clerk of the Board, Clerk of the Board,Human Resources Analyst, Human Resources Assistant,Human Resources Supervisor, Principal HR Analyst, Secretary to the General Manager, and Senior Human Resources Analyst. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respect fij)#y submitted, Bradley . Hogin, Go eral Counsel 1434467.1 �... CLOSED SESSION 3 WOODRUFF $PRADllN 6$MAKi 555 ANION BOULEVARD, SUITE 1200 COSTA M.s A, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on August 28, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Managers Group: Administration Manager, Controller,Engineering Manager,Environmental Laboratory&Ocean Monitoring Manager,Human Resources&Risk Manager, IT Systems &Operations Manager, Maintenance Manager, Operations Manager, and Purchasing and Contracts Manager. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respect fij)#y submitted, Bradley . Hogin, Go eral Counsel 1434470.1 WOODRUFF, SPRADLIN&SMART CLOSED SESSION 4 555 ANION BOULEVARD, BUTTE 1200 COSTA M.s A, CA 92626-7670 (714)559-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on August 28, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Executive Managers Group: Assistant General Manager, Director of Engineering, Director of Environmental Services, and Director of Human Resources. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respec submitted, By: Bradley . Hogin, Ga end Counsel 1434472.1 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California LAFCO Local Agency Formation RWQCB Regional Water Quality Water Agencies Commission Control Board APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood Association Protection Agency AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River District Interceptor ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water Engineers Understanding Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed Water Agencies Project Authority California Air Resources National Environmental Supervisory Control And CARB Board NEPA Policy Act SCADA Data Acquisition California Association of Non-Governmental Southern California CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality Elimination System Management District CEQA California Environmental NWRI National Water Research SOCWA South Orange County Quality Act Institute Wastewater Authority CIP Capital Improvement O&M Operations&Maintenance SRF Clean Water State Program Revolving Fund California Regional Water Orange County Council of Sewer System CRWQCe Quality Control Board OCCOG Governments SSMP Management Plan CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Agency California Water Environment Orange County Sanitation State Water Resources CWEA Association OCSD District SWRCe Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team COBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection OSHA Occupational Safety and 7S5 Total Suspended Solids Agency Health Administration Professional Waste Discharge FOG Fats,Oils,and Grease PCSA Consultant/Construction WDR Wastee Discharge Services Agreement gpd gallons per day PDSA Professional Design Services WEE Water Environment Agreement Federation GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERE Water Environment& System Works Reuse Foundation ICS Incident Command System ppm pans per million WIFIA Water Infrastructure Finance and Innovation Act Integrated Emergency Professional Services Water Infrastructure IERP Response Plan PSA Agreement WIIN Improvements for the Nation Act JPA Joint Powers Authority REP Request For Proposal WRDA Water Resources Develo ment Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements,additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere,used as indicators of sewage pollution. E.call are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (DFr)—The dilution at which the majority of people detect the odor becomes the DR for that air sample. GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming("greenhouse stil . GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service area is in the Santa Ana River Watershed.