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HomeMy WebLinkAbout07-23-2025 Steering Committee Meeting Complete Agenda Packet SPECIAL NOTICE PUBLIC ATTENDANCE & PARTICIPATION AT PUBLIC MEETINGS Steering Committee Meeting Wednesday, July 23, 2025 5:00 p.m. Your participation is always welcome. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. IN-PERSON MEETING ATTENDANCE You may attend the meeting in-person at the following location: Orange County Sanitation District Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ONLINE MEETING PARTICIPATION You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Join the meeting now We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here. Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting. Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content. HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 667 318 649# All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by use *5, during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial-in to the Teams meeting again and wait in the Lobby for admittance. WATCH THE MEETING ONLINE The meeting will be available for online viewing at: https://ocsd.legistar.com/Calendar.aspx SUBMIT A COMMENT You may submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. For any questions and/or concerns, please contact the Clerk of the Board’s office at 714-593-7433. Thank you for your interest in OC San! July 16, 2025 NOTICE OF REGULAR MEETING STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, July 23, 2025 – 5:00 P.M. Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed on the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during this meeting: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. The Regular Meeting of the Steering Committee of the Orange County Sanitation District will be held at the above location and in the manner indicated on Wednesday, July 23, 2025 at 5:00 p.m. STEERING COMMITTEE & BOARD MEETING DATES August 27, 2025 September 24, 2025 October 22, 2025 November 19, 2025 * December 17, 2025 * January 28, 2026 February 25, 2026 March 25, 2026 April 22, 2026 May 27, 2026 June 24, 2026 July 22, 2026 * Meeting will be held on the third Wednesday of the month ROLL CALL STEERING COMMITTEE Meeting Date: July 23, 2025 Time: 5:00 p.m. COMMITTEE MEMBERS (7) Ryan Gallagher, Board Chair Jon Dumitru, Board Vice-Chair Pat Burns, Operations Committee Chair Christine Marick, Administration Committee Chair Glenn Grandis, Member-At-Large Chad Wanke, Member-At-Large John Withers, Member-At-Large OTHERS Scott Smith, General Counsel STAFF Rob Thompson, General Manager Lorenzo Tyner, Assistant General Manager Jennifer Cabral, Director of Communications Mike Dorman, Director of Engineering Laura Maravilla, Director of Human Resources Riaz Moinuddin, Director of Operations & Maintenance Wally Ritchie, Director of Finance Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 2/11/2025 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Carlos A. Leon Ryan Balius Brea Christine Marick Cecilia Hupp Buena Park Joyce Ahn Lamiya Hoque Cypress Scott Minikus Bonnie Peat Fountain Valley Glenn Grandis Ted Bui Fullerton Jamie Valencia Shana Charles Garden Grove Stephanie Klopfenstein Cindy Ngoc Tran Huntington Beach Pat Burns Gracey Van Der Mark Irvine Melinda Liu Kathleen Treseder La Habra Jose Medrano Rose Espinoza La Palma Debbie Baker Vikesh Patel Los Alamitos Jordan Nefulda Tanya Doby Newport Beach Erik Weigand Michelle Barto Orange Jon Dumitru John Gyllenhammer Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Jessie Lopez Seal Beach Lisa Landau Ben Wong Stanton David Shawver John D. Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Jordan Wu Kelly McBride Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Tyler Diep Irvine Ranch Water District John Withers Dan Ferons Yorba Linda Water District Tom Lindsey Gene Hernandez County Areas Board of Supervisors Doug Chaffee Janet Nguyen STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 - 5:00 PM Huntington Beach Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations, please contact the Orange County Sanitation District (OC San) 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 OC San's Headquarters located at 18480 Bandilier Circle, Fountain Valley, California, and on the OC San’s website at www.ocsan.gov not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including those distributed less than 72 hours prior to the meeting to a majority of the Board of Directors, are available for public inspection with the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING RECORDING: A recording of this meeting is available within 24 hours after adjournment of the meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14 days before the meeting. For any questions on the agenda, Board members may contact staff at: General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7110 Asst. General Manager: Lorenzo Tyner, ltyner@ocsan.gov / (714) 593-7550 Director of Communications: Jennifer Cabral, jcabral@ocsan.gov / (714) 593-7581 Director of Engineering: Mike Dorman, mdorman@ocsan.gov / (714) 593-7014 Director of Environmental Services: Lan Wiborg, lwiborg@ocsan.gov / (714) 593-7450 Director of Finance: Wally Ritchie, writchie@ocsan.gov / (714) 593-7570 Director of Human Resources: Laura Maravilla, lmaravilla@ocsan.gov / (714) 593-7007 Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269 STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 CALL TO ORDER ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.2025-4374APPROVAL OF MINUTES RECOMMENDATION: Approve minutes of the Regular meeting of the Steering Committee held June 25, 2025. Originator:Kelly Lore Agenda Report 06-25-2025 Steering Committee Meeting Minutes Attachments: NON-CONSENT: 2.2025-4407SUCCESSOR MEMORANDA OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-06, entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs) between the Orange County Sanitation District and the Orange County Employees Association (OCEA), for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; and Page 1 of 5 STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) OCEA bargaining units. Originator:Laura Maravilla Agenda Report Resolution No. OC SAN 25-06 (OCEA) OCEA Admin-Clerical MOU (Redlined) OCEA Tech MOU (Redlined) OCEA Eng MOU (Redlined) Attachments: 3.2025-4409SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS - LOCAL 501 RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-07, entitled “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding (MOU) between the Orange County Sanitation District and the International Union of Operating Engineers Local 501, for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; and B. Direct staff to finalize and sign the Memorandum of Understanding (MOU) between Orange County Sanitation District and the International Union of Operating Engineers Local 501 bargaining unit. Originator:Laura Maravilla Agenda Report Resolution No. OC SAN 25-07 (Local 501) LOCAL 501 MOU (Redlined) Attachments: 4.2025-4410SUCCESSOR MEMORANDA OF UNDERSTANDING FOR THE SUPERVISOR AND PROFESSIONAL MANAGEMENT GROUPS RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-08, entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs) between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; 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. Originator:Laura Maravilla Page 2 of 5 STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 Agenda Report Resolution No. OC SAN 25-08 (SPMG) Supervisor Group MOU (Redlined) Professional Group MOU (Redlined) Attachments: 5.2025-4385ACQUISITION OF RIGHTS-OF-WAY AND EASEMENTS RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 25-09 entitled, “A Resolution of the Board of Directors of Orange County Sanitation District Authorizing the General Manager to Acquire Project-Related Permanent Easements, Rights-of-Way, and Other Interests in Real Property of $150,000 or Less and to Acquire Temporary Construction Easements of Less than Five Years for Projects Approved by the Board of Directors; and Repealing Resolution No. OCSD 98-44.” Originator:Lorenzo Tyner Agenda Report Resolution No. OC SAN 25-09 Attachments: INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. CS-1 2025-4375CONFERENCE WITH LABOR NEGOTIATORS - GOVERNMENT CODE SECTION 54957.6 RECOMMENDATION: Convene in Closed Session: Designated Representatives: General Manager Robert Thompson, Assistant General Manager Lorenzo Tyner, and Director of Human Resources Laura Maravilla. Page 3 of 5 STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 Unrepresented Employees: Confidential Group, Manager Group, and Executive Managers Group. Agenda Report Steering CS Memo re Labor Negotiations 07-23-25 Attachments: CS-2 2025-4384PUBLIC EMPLOYEE PERFORMANCE EVALUATION 54957(b)(1) RECOMMENDATION: Convene in Closed Session: Public Employee Performance Evaluation Number of Employees: 1 ·General Manager Originator:Laura Maravilla Agenda Report Steering CS Memo re GM Performance Evaluation 07-23-25 Attachments: CS-3 2025-4412CONFERENCE WITH LABOR NEGOTIATORS - GOVERNMENT CODE SECTION 54957.6 RECOMMENDATION: Convene in Closed Session: Designated Representatives: Board Chairman Ryan Gallagher and Board Vice-Chairman Jon Dumitru Unrepresented Employee: General Manager Agenda Report Steering CS Memo re GM Labor Negotiations 07-23-25 Attachments: CS-4 2025-4383CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 3 A. Michael Oberly v. Orange County Sanitation District, Orange County Superior Court and Does 1-25, Orange County Superior Court Case No. 30-2025-01489491-CU-OE-CJC. B. Julie Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01484899-CU-WT-CJC. C. Joe Lara v. Orange County Sanitation District, Orange County Superior Court Page 4 of 5 STEERING COMMITTEE Regular Meeting Agenda Wednesday, July 23, 2025 Case No. 30-2025-01451615-CU-OE-CJC. Agenda Report Steering CS Memo re Existing Litigation 07-23-25 Attachments: 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 Directors may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Steering Committee on August 27, 2025 at 5:00 p.m. Page 5 of 5 STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4374 Agenda Date:7/23/2025 Agenda Item No:1. FROM:Robert Thompson, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve minutes of the Regular meeting of the Steering Committee held June 25, 2025. BACKGROUND In accordance with the Board of Directors Rules of Procedure,an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS ·Resolution No. OC SAN 24-09 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·June 25, 2025 Steering Committee meeting minutes Orange County Sanitation District Printed on 7/14/2025Page 1 of 1 powered by Legistar™ Orange County Sanitation District Minutes for the STEERING COMMITTEE Wednesday, June 25, 2025 5:00 PM Huntington Beach Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman Ryan Gallagher on Wednesday, June 25, 2025 at 5:00 p.m. in the Orange County Sanitation District Headquarters. ROLL CALL AND DECLARATION OF QUORUM: Assistant Clerk of the Board Jackie Castro declared a quorum present as follows: PRESENT:Ryan Gallagher, Jon Dumitru, Pat Burns, Glenn Grandis, Christine Marick, Chad Wanke and John Withers ABSENT:None STAFF PRESENT: Rob Thompson, General Manager; Lorenzo Tyner, Assistant General Manager; Jennifer Cabral, Director of Communications; Mike Dorman, Director of Engineering; Laura Maravilla, Director of Human Resources; Riaz Moinuddin, Director of Operations and Maintenance; Wally Ritchie, Director of Finance; Lan Wiborg, Director of Environmental Services; Jackie Castro, Assistant Clerk of the Board; Mo Abiodun; Marc Brown; Don Cutler; Thys DeVries; Justin Fenton; Tania Moore; Aldwin Ramirez; Kevin Work; and Ruth Zintzun were present in the Huntington Beach Room. OTHERS PRESENT: Scott Smith, General Counsel; Whitney Saraka, Associate Counsel; Laura Drottz Kalty, Special Counsel, Liebert Cassidy Whitmore; and Philip Lem, Special Counsel, Payne & Fears LLP, were present in the Huntington Beach Room. PUBLIC COMMENTS: None. REPORTS: Chair Gallagher and General Manager Rob Thompson did not provide reports. CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2025-4336 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 6 STEERING COMMITTEE Minutes June 25, 2025 Approve minutes of the Regular meeting of the Steering Committee held May 28, 2025. AYES:Ryan Gallagher, Jon Dumitru, Pat Burns, Glenn Grandis and Chad Wanke NOES:None ABSENT:Christine Marick and John Withers ABSTENTIONS:None 2.FOOD WASTE TIPPING FEE 2025-4354 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a tipping fee of $47 per wet ton of source separated organic food waste to provide to pre-processors for planning purposes. AYES:Ryan Gallagher, Jon Dumitru, Pat Burns, Glenn Grandis and Chad Wanke NOES:None ABSENT:Christine Marick and John Withers ABSTENTIONS:None NON-CONSENT: 3.GENERAL MANAGER’S FY 2024-2025 WORK PLAN YEAR-END REPORT 2025-4283 Originator: Rob Thompson Mr. Thompson provided a brief overview of the General Manager's FY2024-2025 Work Plan Year-End Report. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the General Manager’s FY 2024-2025 Work Plan Year-End Report. AYES:Ryan Gallagher, Jon Dumitru, Pat Burns, Glenn Grandis and Chad Wanke NOES:None ABSENT:Christine Marick and John Withers ABSTENTIONS:None Page 2 of 6 STEERING COMMITTEE Minutes June 25, 2025 4.GENERAL MANAGER’S FY 2025-2026 WORK PLAN 2025-4349 Originator: Rob Thompson Mr. Thompson provided an overview of the General Manager's FY 2025-2026 Work Plan. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the General Manager’s FY 2025-2026 Work Plan. AYES:Ryan Gallagher, Jon Dumitru, Pat Burns, Glenn Grandis and Chad Wanke NOES:None ABSENT:Christine Marick and John Withers ABSTENTIONS:None INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. Directors Christine Marick and John Withers arrived at the meeting during Closed Session . CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6, 54957(b)(1), 54956.9(d)(1) & 54956.8. The Committee convened in closed session at 5:04 p.m. 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. CS-1 CONFERENCE WITH LABOR NEGOTIATORS - GOVERNMENT CODE SECTION 54957.6 2025-4267 CONVENED IN CLOSED SESSION: Page 3 of 6 STEERING COMMITTEE Minutes June 25, 2025 Designated Representatives: General Manager Robert Thompson, Assistant General Manager Lorenzo Tyner, Director of Human Resources Laura Maravilla, and Chief Negotiator Laura Kalty. Employee Organizations: (3) International Union of Operating Engineers, Local 501; Orange County Employees Association; and the Supervisory and Professional Management Group. Unrepresented Employees: (3) Confidential Group, Manager Group, and Executive Managers Group. CS-2 PUBLIC EMPLOYEE PERFORMANCE EVALUATION 54957(b)(1)2025-4218 Originator: Laura Maravilla CONVENED IN CLOSED SESSION: Public Employee Performance Evaluation Number of Employees: 1 ·General Manager CS-3 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) 2025-4339 CONVENED IN CLOSED SESSION: Number of Cases: 1 Julia Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01484899-CU-WT-CJC CS-4 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) 2025-4340 CONVENED IN CLOSED SESSION: Number of Cases: 1 Joe Lara v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01451615-CU-OE-CJC Page 4 of 6 STEERING COMMITTEE Minutes June 25, 2025 CS-5 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) 2025-4341 CONVENED IN CLOSED SESSION: Number of Cases: 1 Danny Letner, Inc. dba Letner Roofing Company v. Orange County Sanitation District, et al, Orange County Superior Court Case No. 30-2025-01484794-CU-OR-CJC CS-6 CONFERENCE WITH REAL PROPERTY NEGOTIATORS - GOVERNMENT CODE SECTION 54956.8 2025-4352 CONVENED IN CLOSED SESSION: Property: 10700 Spencer Street, Fountain Valley, CA - APN No.156-154-07 and 156-163-16. Agency negotiators: General Manager Rob Thompson; Assistant General Manager Lorenzo Tyner; and Director of Finance Wally Ritchie. Negotiating parties: Shabtai Itzhak Tr Ins Tr Under negotiation: Terms of payment RECONVENED IN REGULAR SESSION. The Committee reconvened in regular session at 5:59 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Scott Smith stated there was no reportable action. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Gallagher declared the meeting adjourned at 5:59 p.m. to the next Regular Steering Committee meeting to be held on Wednesday, July 23, 2025 at 5:00 p.m. Page 5 of 6 STEERING COMMITTEE Minutes June 25, 2025 Submitted by: _____________________ Jackie Castro, CMC Assistant Clerk of the Board Page 6 of 6 STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4407 Agenda Date:7/23/2025 Agenda Item No:2. FROM:Laura Drottz Kalty, Chief Negotiator Originator: Laura Maravilla, Director of Human Resources SUBJECT: SUCCESSOR MEMORANDA OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION CHIEF NEGOTIATOR'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-06, entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs) between the Orange County Sanitation District and the Orange County Employees Association (OCEA), for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) OCEA bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (OC San)and the three (3)OCEA bargaining units that became effective on July 1,2022,expired on June 30,2025.On September 25, 2024,the Board of Directors selected Laura Drottz Kalty of Liebert Cassidy Whitmore to serve as its Chief Negotiator to negotiate successor agreements with all recognized employee organizations. Subsequently,on November 20,2024,the Steering Committee provided Ms.Kalty with negotiating parameters and authority to commence negotiations. OCEA submitted its initial proposal for successor MOUs on March 27,2025.OCEA and OC San have met and conferred in good faith seven (7) times since receiving the initial proposal. On June 4,2025,OC San and OCEA reached a Tentative Agreement on the terms and conditions of employment for the three (3)bargaining units represented by OCEA,as set forth in successor MOUs being presented for final approval and adoption by the OC San Board of Directors. On June 25,2025,the Board of Directors authorized Ms.Kalty to proceed with a three-year contract and salary increases for OCEA as follows:4.5%for the first year,4.5%for the second year,and 3.0% for the final year of the contract.This includes corresponding salary range adjustments effective the first full pay period in July for each year of the contract,with the first increase to commence in July 2025. Orange County Sanitation District Printed on 7/16/2025Page 1 of 5 powered by Legistar™ File #:2025-4407 Agenda Date:7/23/2025 Agenda Item No:2. 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 & development PROBLEM The MOUs between OC San and the three (3)OCEA bargaining units that became effective on July 1,2022,expired on June 30,2025.OC San has a legal duty to bargain in good faith and,upon reaching full and final agreement on successor MOUs with a bargaining group,approval must be obtained from its governing body. PROPOSED SOLUTION Adopt Resolution No.OC SAN 25-06,entitled,“A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs)between the Orange County Sanitation District and the Orange County Employees Association (OCEA),for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”. TIMING CONCERNS OC San and OCEA have bargained in good faith and have reached a tentative agreement on successor MOUs that shall go into effect July 2025, contingent on Board approval. RAMIFICATIONS OF NOT TAKING ACTION Some of the impacts of not approving successor labor agreements include labor instability,employee morale, and impasse. PRIOR COMMITTEE/BOARD ACTIONS On September 25,2024,the Board of Directors authorized staff to execute an agreement with Ms. Kalty of Liebert Cassidy Whitmore to serve as OC San’s Chief Negotiator.This action was taken pursuant to OC San’s Purchasing Ordinance No. OC SAN-61. In preparation for and during the meet and confer process,Ms.Kalty 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: ·March 26, 2025 - Steering Committee and Board Meeting ·April 23, 2025 - Steering Committee and Board Meeting Orange County Sanitation District Printed on 7/16/2025Page 2 of 5 powered by Legistar™ File #:2025-4407 Agenda Date:7/23/2025 Agenda Item No:2. ·May 28, 2025 - Steering Committee and Board Meeting ·June 25, 2025 - Steering Committee and Board Meeting ADDITIONAL INFORMATION OCEA is the recognized employee organization certified to provide exclusive representation over wages,hours of work,and other terms and conditions of employment for 92 non-exempt OC San 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. Based on Board authorization,OC San reached a full tentative agreement with OCEA on June 4, 2025,including a three-year contract with a 4.5%salary increase in the first year,a 4.5%salary increase in the second year,and a 3.0%salary increase for the final year of the contract.OCEA distributed the proposals to their membership for voting and OCEA’s membership ratified the proposals by majority vote in June 2025. Full redlined versions of each of the OCEA MOUs 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, 2025. 2.Article 2, Duration: Agreement terminates on June 30, 2028. 3.Article 10, Discipline and Dismissal. Revise language to align with policy: 10.9 Disciplinary actions will be recorded in employee performance reviews…Verbal reprimand documentation will be kept in the supervisor’s employee files. 4.Article 11, Grievance Procedure. Revise language to include: 11.4.6. The decision of the General Manager is final. 5.Article 13, Salary Adjustments and Compensation: 13.3.2 Development Pay: ·Education:Effective the first full pay period in July 2025,eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $25.00 per pay period for an associate degree and $50.00 per pay period for an undergraduate degree.The maximum amount of Education pay is fixed at $50.00 per pay period. ·13.3.2.1 Effective the first full pay period in July 2025,the overall maximum Development Pay for education,certification and/or licenses is fixed at $95.72 per pay period. 13.4 Salary Range Adjustments: 13.4.1 Effective the first pay period of July 2025, 4.5% salary range adjustment. 13.4.2 Effective the first pay period of July 2026, 4.5% salary range adjustment. 13.4.3 Effective the first pay period of July 2027, 3.0% salary range adjustment. 6.Article 15,Deferred Compensation:Effective the first full pay period in July 2025,employees covered by OCERS Plans B and U and who participate in the deferred compensation plan are eligible to receive up to $362 per month matching OC San contribution. 7.Article 18, Call Back Pay. Revise language to include: 18.1.When an employee is called back to work by OC San without prior notice,and the employee has completed his/her normal work shift and left the work site;when prior notice is given but the work begins on the same day at least three (3)hours after completion of the Orange County Sanitation District Printed on 7/16/2025Page 3 of 5 powered by Legistar™ File #:2025-4407 Agenda Date:7/23/2025 Agenda Item No:2. given but the work begins on the same day at least three (3)hours after completion of the regular shift;or when an employee assigned to standby is actually called to work,the employee will receive a minimum of three (3)hours of call back pay.The three (3)hour minimum,whether or not actually worked,will be paid at the rate of one and one half (1.5) times the regular hourly rate. 18.2.The call back period shall begin when the standby employee has been informed by OC San to return to work.The call back period shall end when either the employee arrives at his or her residence or the original destination;in either case,the employee shall inform OC San upon arrival. 18.3.If the call back period has ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe),a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4.If the call back period has not ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe),the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6 Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature. 8.Article 19, Standby Pay. Revise language to include: 19.1 Effective the first full pay period in July 2025,an employee placed on standby shall be compensated at the rate of six hundred (600) dollars per week. 9.Article 27, Leave-of-Absence with Pay: 27.6 Bereavement Leave. Revise language to align with changes in the law: 27.6.1 …any full-time employee,whether probationary or regular,shall receive up to five (5) days of bereavement leave,thirty-six (36)hours of which will be paid time,for the death or funeral of an immediate family member.An employee may use existing accruals (i.e.,sick, vacation,supplemental leave,compensatory time off)in order to be paid for up to five (5) days. 10.Article 29, Classification Studies. Revise language as follows: 29.2 Y-Rating: 29.2.1 Remove y-rating term table. 29.2.2 Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements,organizational structure or “bumping”associated with layoffs.Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay (unless otherwise authorized by the General Manager). 29.2.3 Remove reference to y-rating term table. 11.Article 44, Uniforms. Revise language to include: 44.2 OCEA employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE)are eligible to receive a safety boot allowance and/or upon supervisor request shall receive an annual or bi-annual voucher in the amount of $250, as applicable. In addition to the aforementioned changes,the proposed MOUs includes general housekeeping updates to certain articles for purposes of language clarification and to ensure alignment with changes in applicable laws, regulations, and internal administrative procedures. Orange County Sanitation District Printed on 7/16/2025Page 4 of 5 powered by Legistar™ File #:2025-4407 Agenda Date:7/23/2025 Agenda Item No:2. CEQA N/A FINANCIAL CONSIDERATIONS The total cost is $3,425,216 over the term of the agreement.This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 25-06 ·OCEA Administrative and Clerical MOU (Redlined) ·OCEA Technical Services MOU (Redlined) ·OCEA Engineering MOU (Redlined) Orange County Sanitation District Printed on 7/16/2025Page 5 of 5 powered by Legistar™ OC SAN 25-06-1 RESOLUTION NO. OC SAN 25-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING (MOUS) BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION (OCEA), FOR FISCAL YEARS 2025/2026, 2026/2027 & 2027/2028 WHEREAS, on July 27, 2022, the Board of Directors (“Directors”) of the Orange County Sanitation District (OC San) authorized the General Manager to sign the Memoranda of Understanding (MOUs) with the Orange County Employees Association (referred hereinafter as “OCEA”), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2022 through June 30, 2025 (“2022 MOUs”). WHEREAS, prior to the expiration of the 2022 MOUs, on February 25, 2025, OCEA requested to meet and confer regarding successor MOUs. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of OCEA have met and conferred with the representatives of OC San 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 for the current Fiscal Year would take effect the first full pay period in July 2025; and WHEREAS, the parties have modified the attached 2025 MOUs between OC San and OCEA to reflect the parties’ understanding regarding certain terms and conditions, which by this reference are made a part of this resolution as if set forth herein. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between OC San and OCEA for the contract period of July 1, 2025, through June 30, 2028, attached hereto as Exhibit A and are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with OCEA for the period of July 1, 2025, through June 30, 2028, in a form approved by General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 23, 2025. _______________________________________ Ryan P. Gallagher Board Chairman OC SAN 25-06-2 ATTEST: _______________________________________ Kelly A. Lore, MMC Clerk of the Board OC SAN 25-06-3 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. OC SAN 25-06 was passed and adopted at a regular meeting of said Board on the 23rd day of July 2025, 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 23rd day of July 2025. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT July 1, 20225 through June 30, 20258 OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page i OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. - OC SAN RIGHTS.............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY .......................................................................................................................... 9 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE ............................................................................................................................... 9 20.4 LIFE INSURANCE ...................................................................................................................................... 9 20.5 SHORT TERM DISABILITY ........................................................................................................................ 10 20.6 LONG TERM DISABILITY .......................................................................................................................... 10 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................ 10 20.9 RETIRING EMPLOYEES ........................................................................................................................... 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 10 21.2 GROUP INSURANCE PREMIUMS ............................................................................................................... 11 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ............................................................................................ 11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT .............................................................................................. 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD .......................................................................................................... 11 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 12 ARTICLE 25. - RETIREMENT ............................................................................................................................... 12 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 12 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 13 27.1 VACATION LEAVE ................................................................................................................................... 13 27.2 SICK LEAVE ........................................................................................................................................... 13 27.3 JURY DUTY LEAVE ................................................................................................................................. 15 27.4 WITNESS LEAVE .................................................................................................................................... 15 27.5 MILITARY LEAVE .................................................................................................................................... 15 27.6 BEREAVEMENT LEAVE ............................................................................................................................ 15 27.7 SUPPLEMENTAL LEAVE ........................................................................................................................... 16 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 16 28.3 SUBSTITUTION OF PAID LEAVE ................................................................................................................ 17 28.4 PERMISSIBLE USES ................................................................................................................................ 17 28.5 GENERAL LEAVE .................................................................................................................................... 18 28.6 RETURN TO WORK POLICY ..................................................................................................................... 18 28.7 COMPLIANCE WITH LAW ......................................................................................................................... 19 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 19 ARTICLE 30. - DRIVER'S LICENSE ..................................................................................................................... 20 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 20 ARTICLE 32. - LIGHT DUTY................................................................................................................................. 21 ARTICLE 33. - MEDICAL EXAMINATION ........................................................................................................... 21 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 21 ARTICLE 35. - ACTING PAY ................................................................................................................................ 21 OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page ii OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 36........................................................................................................................................................... 22 ARTICLE 37. - PERSONNEL FILES .................................................................................................................... 22 ARTICLE 38. - BULLETIN BOARDS .................................................................................................................... 22 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................... 22 ARTICLE 40. - USE OF OC SAN 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 ................................................................................................................... 24 ARTICLE 47........................................................................................................................................................... 24 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 24 ARTICLE 49........................................................................................................................................................... 24 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 24 ARTICLE 51. - RESIGNATION ............................................................................................................................. 24 ARTICLE 52........................................................................................................................................................... 24 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………24 SIGNATURE PAGE ............................................................................................................................................... 26 EXHIBIT A ............................................................................................................................................................. 27 ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. - OC SAN RIGHTS.............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY .......................................................................................................................... 9 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE ............................................................................................................................... 9 20.4 LIFE INSURANCE .................................................................................................................................... 10 20.5 SHORT TERM DISABILITY ........................................................................................................................ 10 20.6 LONG TERM DISABILITY .......................................................................................................................... 10 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................ 10 20.9 RETIRING EMPLOYEES ........................................................................................................................... 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 11 21.2 GROUP INSURANCE PREMIUMS ............................................................................................................... 11 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ............................................................................................ 11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT .............................................................................................. 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD .......................................................................................................... 12 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 12 ARTICLE 25. - RETIREMENT ............................................................................................................................... 13 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 13 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 13 27.1 VACATION LEAVE ................................................................................................................................... 13 27.2 SICK LEAVE ........................................................................................................................................... 14 OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page iii OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 27.3 JURY DUTY LEAVE ................................................................................................................................. 16 27.4 WITNESS LEAVE .................................................................................................................................... 16 27.5 MILITARY LEAVE .................................................................................................................................... 16 27.6 BEREAVEMENT LEAVE ............................................................................................................................ 16 27.7 SUPPLEMENTAL LEAVE ........................................................................................................................... 17 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 17 28.3 SUBSTITUTION OF PAID LEAVE ................................................................................................................ 18 28.4 PERMISSIBLE USES ............................................................................................................................ 1817 28.5 GENERAL LEAVE .................................................................................................................................... 19 28.6 RETURN TO WORK POLICY ..................................................................................................................... 19 28.7 COMPLIANCE WITH LAW ......................................................................................................................... 20 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 20 ARTICLE 30. - DRIVER'S LICENSE ................................................................................................................. 2220 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 21 ARTICLE 32. - LIGHT DUTY................................................................................................................................. 23 ARTICLE 33. - MEDICAL EXAMINATION ........................................................................................................... 23 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 22 ARTICLE 35. - ACTING PAY ................................................................................................................................ 22 ARTICLE 36........................................................................................................................................................... 22 ARTICLE 37. - PERSONNEL FILES .................................................................................................................... 22 ARTICLE 38. - BULLETIN BOARDS .................................................................................................................... 23 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................... 24 ARTICLE 40. - USE OF OC SAN FACILITIES ................................................................................................. 2422 ARTICLE 41. - SCOPE OF BARGAINING ........................................................................................................... 23 ARTICLE 42. - IMPASSE PROCEDURES ........................................................................................................... 23 ARTICLE 43. - SEVERABILITY ............................................................................................................................ 24 ARTICLE 44. - UNIFORMS ................................................................................................................................... 25 ARTICLE 45. - SUBSTANCE ABUSE POLICY .................................................................................................... 24 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS .................................................. 24 ARTICLE 47........................................................................................................................................................... 25 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 25 ARTICLE 49........................................................................................................................................................... 25 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 25 ARTICLE 51. - RESIGNATION ............................................................................................................................. 25 ARTICLE 52........................................................................................................................................................... 25 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………25 SIGNATURE PAGE ............................................................................................................................................... 28 EXHIBIT A ............................................................................................................................................................. 30 OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 1 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed, of the Orange County Sanitation District’s (OC San) Board of Directors, OC San's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA) for the Administrative and Clerical Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 20225, is entered into between the Orange County Sanitation District, referred to hereinafter as “OC San,” and the Orange County Employees Association, referred to hereinafter as “OCEA.” 1.2 OC San recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit “A” (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by OC San. ARTICLE 2. - DURATION 2.1 This Agreement shall be binding on OC San and OCEA when approved and adopted by OC San’s Board of Directors. This Agreement shall terminate on June 30, 20258. Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No. OC San 23-09, as a Resolution No. OCSD 18-18 has been repealed. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The GroupOCEA shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 4.1 An OCEA Representative shall have access to OC San’s facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of Human Resources, or designee, of any changes in that list. 4.3 OCEA access shall not interfere with OC San’s operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated as confidential or secure. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 2 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 5. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to OC San by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither OC San nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. – OC SAN RIGHTS 6.1 OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. OC San 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 OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, or military or veteran status, reproductive health decision making or any other lawfully protected class. To the extent required by law or by OC San’s rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 8.1 OC San 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 OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of OC San to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 3 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of OC San, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit: verbal reprimand, written reprimand, suspension without pay; reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee’s last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail, which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action;(3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to an OC San management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action, the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent; however, OC San may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies & Procedures Manual. 10.7 Dismissal shall be preceded by at least one (1) written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no call/no show” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.7.1 Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered "no call/no show" and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources, or designee, shall schedule a post disciplinary hearing with the General Manager or a OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 4 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary actions will be recorded in employee performance reviews. Disciplinary action documentation, except verbal reprimand documentation, shall be placed in an employee's personnel file in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor’s employee files. Documentation regarding verbal and written reprimands may be removed from a supervisor’s employee file and/or an employee’s personnel file twenty-four (24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee’s personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San’s proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of OC San by an individual employee within the Unit or by the OCEA. OC San 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 OC San and the OCEA, be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance, to discuss the issue with the Director of Human Resources, or designee, in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. OC San shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten (10) days of the occurrence of the event giving rise to the complaint, or within ten (10) days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within ten (10) days. 11.4.2 Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee, with a copy provided to the Director of Human Resources or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1 Identify the specific management act to be reviewed; 11.4.2.2 Specify how the employee was adversely affected; OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 5 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 11.4.2.3 List the specific provisions of the MOU that were allegedly violated and state how they were violated; 11.4.2.4 Specify the remedy requested; and 11.4.2.5 Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.13 The Division Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.34 Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the employee’s Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by OC San within five (5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The employee’s Department Director, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.45 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five (5) days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.56 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five (5) days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date of the grievance is received. The decision of the General Manager is final. 11.5 General Provisions: An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA, the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to OC San operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.5.16 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.27 Resolution may be agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of OC San managers through the Problem Solving Procedure. This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 6 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten (10) days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten (10) days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five (5) steps, with an approximate 5.0% difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay – Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2 Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program: The performance management program includes three (3) rating categories (exceeds, proficient, needs improvement) for performance appraisals. 13.3.2 Development Pay – Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types:  Education – Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $20.76 per pay period for an associate degree and $41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $41.53 per pay period. Effective the first full pay period in July 2025, eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $25.00 per pay period for an associate degree and $50.00 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.00 per pay period.  Certification/License – Eligible employees who obtain or who have obtained an OC San 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. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45.72 per pay period. 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at $87.25 per pay period. Effective the first full pay period in July 2025, the overall maximum Development Pay for education, certification and/or licenses is fixed at $95.72 per pay period. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 7 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. 13.4.2 Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.4.3 Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.5 One-Time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 2022 will receive a $1,500 one-time payment. ARTICLE 14. - SEVERANCE PAY 14.1 Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee shall be notified in writing two (2) weeks prior to the effective separation date. In the event OC San does not give such notification, the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time, regular employees shall be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees and employees who are separated for cause, are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in OC San’s approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. 15.2 Effective the first full pay period in July 2022, employees15.2 Employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to a $160 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $362 per month matching OC San contribution. ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by OC San as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half (1.5) times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 8 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 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 Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday (refer to Section 16.2) 16.2 Employees will be granted "Floating Holiday" hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours may be utilized in one quarter (.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3 Employees must use the “Floating Holiday” within the calendar year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. Every effort will be made to approve an employee's request for a "Floating Holiday" off providing sufficient notice is given. ARTICLE 17. – HOURS OF WORK 17.1 For record keeping and accounting purposes, the “workweek” for full-time employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80 schedule), five 8-hour days each workweek (10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4- hour day each workweek (7/80). The starting and ending times of individual employees’ workweeks may vary. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 9 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 OC San may, at its sole discretion, change an employee’s work schedule with thirty (30) days written notice to the affected employee. 17.4 OC San may provide the option of telecommuting, as set forth in the Telecommuting Policy. ARTICLE 18. - CALL-BACK PAY 18.1 When an employee is called back to work by OC San management without prior notice, and the employee has completed his or her normal work shift and left the work station, orworksite; 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 shall receive a minimum of three (3) hours of call back pay. The three hours(3) hour 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. 18.2 The call back period shall begin when the standby employee has been informed by OC San to return to work. The call back period shall end when either the employee arrives at his or her residence or the original destination; in either case, the employee shall inform OC San upon arrival. 18.3 If the call back period has ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4 If the call back period has not ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5 Call back pay is applied per call back and not per work assignment or work order. 18.6 Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature. 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, OC San 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 five hundred (500) dollars per week, and shall receive Call Back pay when they are actually called to work. Effective the first full pay period in July 2025, an employee placed on standby shall be compensated at the rate of six hundred (600) dollars per week. ARTICLE 20. – INSURANCE 20.1 OC San will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date. An open enrollment period shall be held annually. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 10 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 20.3 Medical Insurance 20.3.1 OC San will provide medical health insurance coverage through a Health Maintenance Organization (HMO) medical insurance plan and a Preferred Provider Organization (PPO) medical insurance plan. 20.3.2 Regular, full-time employees: 20.3.2.1 OC San 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. OC San will contribute 80% of the employee +1 dependent and full family premiums for the HMO and PPO medical plans. Any change in insurance rates shall be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San’s sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 OC San may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act (ACA), provided that no change may be made by OC San unless such change is either (1) mandated by the ACA, or (2) mutually agreed upon by the parties. 20.4 Group Insurance Premiums 20.4.1 Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.5 Life Insurance 20.5.1 OC San shall pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.56 Short Term Disability 20.6.1. OC San shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. 20.67 Long Term Disability 20.67.1 OC San shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.67.2 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 OC San’s long-term disability plan contract accession on the intranet. 20.67.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for OC San paid Long Term Disability may purchase such coverage at his or her own expense. 20.78 Dental Insurance 20.8.1 OC San will contribute 80% of employee only and 80% of full family premiums for dental insurance. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 11 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 20.89 Vision Insurance 20.9.1 OC San shall provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.910 Retiring Employees 20.9.1 OC San shall pay, for employees hired prior to July 1, 1988, two and one-half (2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under OC San’s medical plan. 20.9.2 In the event OC San adds additional optional insurance plans, OC San's share of the premium shall be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, OC San’s share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.320.10.1 OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by $10 per month for every full year of continuous service up to a maximum of 25 years or $250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. 20.9.410.2 Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefitted status shall not count toward continuous service. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts, employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account 21.2.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.43 Dependent Care Assistance Account 21.3.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself 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 OC San decides upon the need for overtime or additional work. OC San may require the performance of overtime. In the event no qualified employee wishes to work overtime, OC San’s management may select employees with the ability to perform the work by inverse seniority. OC San managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 12 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty (40) hours in a seven (7) day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following one year of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers' Compensation leave does not provide an opportunity to judge an employees' capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. 23.3 New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.4 An employee may be released during his or her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will” during his/her initial probationary period). Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. 23.5 Employees who are reassigned or, laterally transferred or have a voluntary job change will serve a probationary period of six months. The “probationary period” shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position shall be filled as an openexternal or promotional opportunity orinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. 24.2 A promoted employee shall serve a promotional probationary period lastingthat extends to at least until the first day of the pay period following twenty-six months after(26) weeks of employment without a break in service, beginning with the effective date of the promotion. OC San may extend an employee’s promotional probationary period for the length of any period during which an employee is on an extended leave of absence during the probationary period. 24.3 At any time during the promotional probationary period, an employee may be returned to his or her previous position. or an equivalent position. The promotional probation period may be extended by mutual agreement between the employee and OC San’sOC San management for up to ninety (90) days. 24.4 If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six months(26) weeks after the effective date of the promotion. 24.3 24.4.1 For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary period end before the promotional probationary period, the promoted employee shall remain OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 13 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 on the promotional probationary period for the remaining period until at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. 24.5 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 OC San 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 OC San. 25.1.1 Employees hired on or after September 21, 1979 and before August 1, 2011: OC San 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 OC San will continue to pay 3.5% of an eligible employee’s base salary toward the employee’s contributions to OCERS. 25.1.2 Employees hired on or after August 1, 2011 and before January 1, 2013: OC San 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 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.3 Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.4.1 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50% or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of $2.50 per hour for each hour worked between 6:00 p.m. and 6:00 a.m. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 14 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 OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 14 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in OC San Policy. 27.1.3 Vacation leave may only be utilized in increments of one-quarter (0.25) hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Annual Payoff. Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date,; all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.- Sick leave is an insurance or protection provided by OC San 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 or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method - Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five (3.5) hours for each biweekly pay period of continuous service (ninety-one (91) hours per year). Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service (seventy-eight (78) hours per year), beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable OC San Policy. 27.2.427.2.3 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. 27.2.54 Annual Payoff - Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending in October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 15 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560 (mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20) years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty (20) years of service will be paid at the seventy-five percent (75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses - Sick leave may be applied only to the following situations: 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; or designated person. A designated person is a person identified by the employee at the time the employee requests sick leave. The employee is limited to one designated person per rolling 12-month period. D. Absence due to a job-related injury. E. Absence related to an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 246.5, 230(c) and 230.1(a). F. 27.2.8 Bereavement Leave, as set forth in section 27.6.1, below. 27.2.8 Protected Sick Leave – As prescribed under California Labor Code section 233, employees may use up to one-half (1/2) of their annual sick leave accruals in any calendar year for qualifying reasons to care for eligible family members. 27.2.9 General Provisions - To qualify for sick leave pay, the employee must notify OC San 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-quarter (.25) hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. IfExcept for the first forty (40) hours or five (5) days of sick leave use as prescribed under the California Paid Sick Leave Law, if notified in advance by a manager or supervisor, 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. 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 Human Resources. Upon return to work, a written doctor's release 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. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 16 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two (22) working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through the OC San’s timesheet system and provide a copy of the summons to his or her supervisor. 27.3.2 To be entitled to receive regular pay for such jury leave, the employee must report for work at OC San for time not actually retained on jury unless there is less than one-half ½ of their 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 their supervisor with their 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 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 OC San for deposit in the General Fund of OC San. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 17 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 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 maximumup to five (5) days of bereavement leave, thirty-six (36) hours of which will be paid time, for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., sick, vacation, supplemental leave, compensatory time off) in order to be paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step- sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. With reasonable cause, employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5 - 9 10 - 14 15 - 19 20 - 24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.2 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.2.1 Supplemental Leave may be used in one-quarter (0.25) hour increments. 27.7.2.2 Any unused Supplemental Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.2.3 Any unused Supplemental 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 bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.2.5 Employees who are hired or transferred intobecome part of the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July – September 100% October – December 75% January – March 50% April – June 25% 27.7.2.6 Movement within and among the Administrative/Clerical, Engineering, and Technical Services Units will not be subject to pro-rata granting or forfeiture of Supplemental Leave. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 18 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of OC San to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2 Using the prescribed forms, approved by OC San 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A request for leaveLeave of absence without payAbsence Request 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one (1) day. 28.3.2 Paid time off accruals may be used for the care of the employee’s father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, or a child to whom the employee stands in loco parentis, 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, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4 The employee’s own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee’s family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 19 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 28.4.1.6 The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single twelve (12) month period. 28.4.2 CFRA Leave. CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and shall run concurrently with FMLA leave. 28.4.2.1.1 Employees are limited to one (1) “designated person” per rolling 12- month period. 28.4.2.2 CFRA may not be used for 1) an employee’s incapacity due to pregnancy, or, 2) to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four (4) months of pregnancy disability leave under California’s Pregnancy Disability Leave (PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, OC San requests thirty (30) days advance notice. 28.4.4 Medical Certification 28.4.4.1 As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.4.2 As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.5 Medical and Dental Premiums During FMLA and/or CFRA Leave, OC San shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA and/or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave (e.g., layoff), in which case the OC San’s obligation to continue health and dental or other benefits shall cease. 28.4.7 OC San Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve (12) weeks FMLA and/or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 20 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 28.5 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by OC San management to attend to personal matters or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both OC San’s and the employee’s share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3, and then is rehired to a position within OC San within one (1) year, OC San shall bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA and/or CFRA Leave, or any OC San approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of OC San’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 – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 21 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 29. - CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. OC San’s management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.1.1 The findings of the Human Resources Department and the decision by the General Manager are final and not subject to the appeal, problem-solving or grievance processes. 29.1.2 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 OC San’s Board of Directors. The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2 Y-Rating 29.2.1 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated) in accordance with the following table:. Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.2 Y-rating based on the above schedule shallwill be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements, organizational structure or “bumping” associated with layoffs. Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. (unless otherwise authorized by the General Manager). 29.2.3 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range.. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Rating 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of OC San’s comprehensive Classification Study results implemented effective July 12, OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 22 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. 29.4 Reopener: OC San and OCEA agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. ARTICLE 30. - DRIVER'S LICENSE 30.1 Employees who are required by OC San to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies OC San 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 OC San management’s discretion. 30.3 OC San will continue to pay the license renewals and physical examination costs of Class A &and B licenses that are specifically required by OC San. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require OC San to fill vacant, budgeted positions nor to prohibit OC San from eliminating vacant positions from the budget. OC San reserves the right to reassign staff to other positions in instances involving job restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if OC San finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2002. 31.331.2 If, in the sole discretion of OC San management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 31.43 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five (5) days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. 31.54 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers shall have their name removed from the list. 31.65 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. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 23 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, OC San may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on OC San time and at OC San expense. An employee may submit an independent medical opinion regarding the individual’s condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for OC San business shall be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1 Employees who are assigned by OC San management to perform the duties of a position at a higher level for a period of at least eighty (80) consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one (81), and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources, or designee. The eighty (80) hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. – BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2, which are designated for use by employee groups to post notices to OC San employees, provided that: (a) no controversial matter which is critical of or derogatory to OC San, its employees, officers or Directors may be posted; (b) nothing posted by OC San may be removed; (c) the OCEA shall remove its notices after a reasonable length of time; and (d) only a reasonable number of notices shall be posted. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 24 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three (3) employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of OC San permits the time away from assigned work. ARTICLE 40. - USE OF OC SAN FACILITIES 40.1 OC San 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 OC San operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1 OC San and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore, the OC San 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 OC San or OCEA declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by OC San and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to OC San’s Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. - SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation, or OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 25 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 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 OC San, OC San and OCEA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1 OC San shall provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and OC San’s seal, at no cost to employees whose duties require that they wear uniforms. OC San will also provide lab coats as required by the lab managermanagement. 44.2 Employees covered by this agreement shall receive OCEA employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) as eligible to receive a safety boot allowance and/or upon supervisor request shall receive an annual or bi-annual voucher in the amount of $225 at the beginning of each fiscal year250 as applicable. 44.3 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 OC San 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 OC San’s Substance Abuse Policy will apply to all unit members. OC San may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation (DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San’s Anti-Drug and Alcohol Program. OC San 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 OC San’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 4646.1 New Employee Orientation 46.1.1. OCEA will be allowed up to one half-hour each orientation session to communicate with OCEA-represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the OCEA representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new OCEA-represented classifications. If there are no new hires in the OCEA-represented classifications for a scheduled session, OC San will notify the OCEA as soon as possible in advance of the session. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 26 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 46.1.3. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new OCEA- represented employees within 30 days of hire. 46.1.4. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all OCEA-represented employees at least every 120 days. 46.2 Dues Deductions 46.2.1 OC San shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2.2 OC San shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition, OC San shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. 46.2.3 OCEA shall indemnify, defend and hold the OC San harmless against any liability from any claims, demands, or other action related to OC San’s deduction of Union Dues, including claims related to the Union’s use of monies collected under these provisions. 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, OC San agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all unit members. ARTICLE 51. - RESIGNATION 51.1 Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving . OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written termination of employment with OC San 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. ARTICLE 52. (This Article intentionally left blank) OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 27 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association (OCEA) and the Orange County Sanitation District (OC SAN) hereby agree to meet within two (2) months from the OC SAN Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OC SAN. 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 raisedhave established a Labor Management Committee; the Committee convenes on an as-needed basis. OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 28 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 SIGNATURE PAGE 2022 – 2025 – 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT Executed: ________________________________ OCEA ADMINISTRATIVE & CLERICAL UNIT ORANGE COUNTY SANITATION DISTRICT Alisha Greene, Labor Representative Laura Drottz Kalty, Lead Negotiator Veronica Rodarte, Operations ManagerAlisha Greene, Labor Representative Celia ChandlerLaura Maravilla, Director of Human Resources Danielle Chau, Labor Representative Carlos Rosales, Lead Organizer Laura MaravillaThys DeVries, Human Resources & Risk Manager Bobby Martinez, StorekeeperMaterials Management Clerk Janine Aguilar, Human Resources Supervisor Beatrice MitchellChristiana Richardson, Administrative Assistant Andrew Nau, Human Resources Supervisor Thys DeVries, Principal Human Resources Analyst OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 29 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 Mickey Whitney, Senior Construction Inspector Stephanie Barron, SeniorPrincipal Human Resources Analyst Dana Andrews, Senior Construction Inspector Dennis Dilliner, Lead Source Control Inspector David Mallonee, Environmental Technician OCEA – Administrative/Clerical MOU July 1, 20225 to June 30, 20258 Page 30 OR040\038\10068112.v412942305.2 OR040\038\10068112.v4-047 Exhibit A ADMINISTRATIVE AND CLERICAL UNIT Pay Effective Effective Effective 111-Jul-2225 1410-Jul-2326 129-Jul-2427 Classification Grade MIN MAX MIN MAX MIN MAX Graphics DesignerExecutive Assistant 69 $43.75 49.21 $53.205 9.85 $45.50 51.42 $55.33 62.54 $47.09 52.96 $57.276 4.42 Administrative AssistantGraphics Designer 6967 $43.75 46.85 $53.205 6.92 $45.50 48.96 $55.33 59.48 $47.09 50.43 $57.276 1.26 Administrative AssistantContracts/Purchasing Technician 67 $41.64 46.85 $50.615 6.92 $43.31 48.96 $52.63 59.48 $44.83 50.43 $54.476 1.26 Contracts/PurchasingPayroll Technician 67 $41.64 46.85 $50.615 6.92 $43.31 48.96 $52.63 59.48 $44.83 50.43 $54.476 1.26 PayrollRecords Management Technician 67 $41.64 46.85 $50.61$ 56.92 $43.31 48.96 $52.63 $59.48 $44.83 50.43 $54.47$ 61.26 RecordsMaterials Management Technician 6764 $41.64 43.50 $50.615 2.88 $43.31 45.46 $52.63 55.26 $44.83 46.82 $54.475 6.92 Lead Materials Management Clerk 62 $36.83 41.42 $44.75$ 50.34 $38.30 43.28 $46.54 $52.61 $39.64 44.58 $48.17$ 54.19 Accounting Technician 58 $33.34 37.49 $40.53$ 45.59 $34.67 39.18 $42.15 $47.64 $35.88 40.36 $43.63$ 49.07 Program Assistant 56 $31.76 35.73 $38.55$ 43.36 $33.03 37.34 $40.09 45.31 $34.19 38.46 $41.49$ 46.67 Materials Management Clerk 56 $31.76 35.73 $38.554 3.36 $33.03 37.34 $40.09 45.31 $34.19 38.46 $41.49$ 46.67 Office Assistant 50 $27.37 30.79 $33.26$ 37.41 $28.46 32.18 $34.59 $39.09 $29.46 33.15 $35.80$ 40.26 8972311.1 OR040-030 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT July 1, 20225 through June 30, 20258 OCEA – Technical Services MOU July 1, 2019 to June 30, 2022 Page i 8972311.1 OR040-030 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. - OC SAN RIGHTS.............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY .......................................................................................................................... 9 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE ............................................................................................................................... 9 20.4 LIFE INSURANCE ...................................................................................................................................... 9 20.5 SHORT TERM DISABILITY ........................................................................................................................ 10 20.6 LONG TERM DISABILITY .......................................................................................................................... 10 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................ 10 20.9 RETIRING EMPLOYEES ........................................................................................................................... 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 10 21.2 GROUP INSURANCE PREMIUMS ............................................................................................................... 11 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ............................................................................................ 11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT .............................................................................................. 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD .......................................................................................................... 11 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 12 ARTICLE 25. - RETIREMENT ............................................................................................................................... 12 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 12 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 13 27.1 VACATION LEAVE ................................................................................................................................... 13 27.2 SICK LEAVE ........................................................................................................................................... 13 27.3 JURY DUTY LEAVE ................................................................................................................................. 15 27.4 WITNESS LEAVE .................................................................................................................................... 15 27.5 MILITARY LEAVE .................................................................................................................................... 15 27.6 BEREAVEMENT LEAVE ............................................................................................................................ 15 27.7 SUPPLEMENTAL LEAVE ........................................................................................................................... 16 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 16 28.3 SUBSTITUTION OF PAID LEAVE ................................................................................................................ 17 28.4 PERMISSIBLE USES ................................................................................................................................ 17 28.5 GENERAL LEAVE .................................................................................................................................... 18 28.6 RETURN TO WORK POLICY ..................................................................................................................... 18 28.7 COMPLIANCE WITH LAW ......................................................................................................................... 19 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 19 ARTICLE 30. - DRIVER'S LICENSE ..................................................................................................................... 20 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 20 ARTICLE 32. - LIGHT DUTY................................................................................................................................. 21 ARTICLE 33. - MEDICAL EXAMINATION ........................................................................................................... 21 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 21 ARTICLE 35. - ACTING PAY ................................................................................................................................ 21 OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page ii 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 36........................................................................................................................................................... 22 ARTICLE 37. - PERSONNEL FILES .................................................................................................................... 22 ARTICLE 38. - BULLETIN BOARDS .................................................................................................................... 22 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................... 22 ARTICLE 40. - USE OF OC SAN 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 ................................................................................................................... 24 ARTICLE 47........................................................................................................................................................... 24 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 24 ARTICLE 49........................................................................................................................................................... 24 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 24 ARTICLE 51. - RESIGNATION ............................................................................................................................. 24 ARTICLE 52........................................................................................................................................................... 24 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………24 SIGNATURE PAGE ............................................................................................................................................... 26 EXHIBIT A ............................................................................................................................................................. 27 ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. - OC SAN RIGHTS.............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY .......................................................................................................................... 9 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE ............................................................................................................................... 9 20.4 LIFE INSURANCE .................................................................................................................................... 10 20.5 SHORT TERM DISABILITY ........................................................................................................................ 10 20.6 LONG TERM DISABILITY .......................................................................................................................... 10 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................ 10 20.9 RETIRING EMPLOYEES ........................................................................................................................... 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 11 21.2 GROUP INSURANCE PREMIUMS ............................................................................................................... 11 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ............................................................................................ 11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT .............................................................................................. 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD ...................................................................................................... 1211 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 12 ARTICLE 25. - RETIREMENT ........................................................................................................................... 1312 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 13 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 13 27.1 VACATION LEAVE ................................................................................................................................... 13 27.2 SICK LEAVE ........................................................................................................................................... 14 OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page iii 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 27.3 JURY DUTY LEAVE ............................................................................................................................. 1615 27.4 WITNESS LEAVE ................................................................................................................................ 1615 27.5 MILITARY LEAVE .................................................................................................................................... 16 27.6 BEREAVEMENT LEAVE ............................................................................................................................ 16 27.7 SUPPLEMENTAL LEAVE ....................................................................................................................... 1716 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 17 28.3 SUBSTITUTION OF PAID LEAVE ............................................................................................................ 1817 28.4 PERMISSIBLE USES ................................................................................................................................ 17 28.5 GENERAL LEAVE .................................................................................................................................... 19 28.6 RETURN TO WORK POLICY ..................................................................................................................... 19 28.7 COMPLIANCE WITH LAW ......................................................................................................................... 20 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 20 ARTICLE 30. - DRIVER'S LICENSE ..................................................................................................................... 20 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 21 ARTICLE 32. - LIGHT DUTY............................................................................................................................. 2321 ARTICLE 33. - MEDICAL EXAMINATION ....................................................................................................... 2321 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 22 ARTICLE 35. - ACTING PAY ................................................................................................................................ 22 ARTICLE 36........................................................................................................................................................... 22 ARTICLE 37. - PERSONNEL FILES .................................................................................................................... 22 ARTICLE 38. - BULLETIN BOARDS ................................................................................................................ 2322 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ....................................................... 2422 ARTICLE 40. - USE OF OC SAN FACILITIES ................................................................................................. 2422 ARTICLE 41. - SCOPE OF BARGAINING ............................................................................................................. 3 ARTICLE 42. - IMPASSE PROCEDURES ........................................................................................................... 23 ARTICLE 43. - SEVERABILITY ........................................................................................................................ 2423 ARTICLE 44. - UNIFORMS ............................................................................................................................... 2523 ARTICLE 45. - SUBSTANCE ABUSE POLICY ...................................................................................................... 4 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS .................................................. 25 ARTICLE 47........................................................................................................................................................... 25 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 25 ARTICLE 49........................................................................................................................................................... 25 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 25 ARTICLE 51. - RESIGNATION ............................................................................................................................. 25 ARTICLE 52........................................................................................................................................................... 25 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………25 SIGNATURE PAGE ........................................................................................................................................... 2826 EXHIBIT A ......................................................................................................................................................... 2927 OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 1 8972311.1 OR040-030 8972311.1 OR040-030 8972311.1 OR040-030 12942305.2 OR040-047 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed, of the Orange County Sanitation District’s (OC San) Board of Directors, OC San's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA) for the Technical Services Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 20225, is entered into between the Orange County Sanitation OC San, referred to hereinafter as the “OC San,” and the Orange County Employees Association, referred to hereinafter as “OCEA.” 1.2 OC San recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit “A” (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by OC San. ARTICLE 2. - DURATION 2.1 This Agreement shall be binding on OC San and OCEA when approved and adopted by OC San’s Board of Directors. This Agreement shall terminate on June 30, 20258. Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The GroupOCEA shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 4.1 An OCEA Representative shall have access to OC San’s facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of Human Resources, or designee, of any changes in that list. 4.3 OCEA access shall not interfere with OC San’s operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated as confidential or secure. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 2 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 5. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to OC San by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither OC San nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. – OC SAN RIGHTS 6.1 OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. OC San 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 OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, or military or veteran status, reproductive health decision making or any other lawfully protected class. To the extent required by law or by OC San’s rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 8.1 OC San 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 OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of OC San to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 3 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of OC San, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit: verbal reprimand, written reprimand, suspension without pay; reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee’s last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail, which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action;(3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to a OC San management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action, the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent; however, OC San may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies & Procedures Manual. 10.7 Dismissal shall be preceded by at least one (1) written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no call/no show” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.7.1 Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered "no call/no show" and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources, or designee, shall schedule a post disciplinary hearing with the General Manager or a OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 4 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary actions will be recorded in employee performance reviews. Disciplinary action documentation, except verbal reprimand documentation, shall be placed in an employee's personnel file in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor’s employee files. Documentation regarding verbal and written reprimands may be removed from a supervisor’s employee file and/or an employee’s personnel file twenty-four (24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee’s personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San’s proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of OC San by an individual employee within the Unit or by the OCEA. OC San 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 OC San and the OCEA, be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance, to discuss the issue with the Director of Human Resources, or designee, in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. OC San shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten (10) days of the occurrence of the event giving rise to the complaint, or within ten (10) days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within ten (10) days. 11.4.2 Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee, with a copy provided to the Director of Human Resources or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1 Identify the specific management act to be reviewed; 11.4.2.2 Specify how the employee was adversely affected; OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 5 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 11.4.2.3 List the specific provisions of the MOU that were allegedly violated and state how they were violated; 11.4.2.4 Specify the remedy requested; and 11.4.2.5 Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.13 The Division Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.34 Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the employee’s Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by OC San within five (5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The employee’s Department Director, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.45 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five (5) days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.56 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five (5) days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date of the grievance is received. The decision of the General Manager is final. 11.5 General Provisions: An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA, the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to OC San operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.5.16 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.27 Resolution may be agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of OC San managers through the Problem Solving Procedure. This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 6 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten (10) days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten (10) days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five (5) steps, with an approximate 5.0% difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay – Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2 Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program: The performance management program includes three (3) rating categories (exceeds, proficient, needs improvement) for performance appraisals. 13.3.2 Development Pay – Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types:  Education – Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $20.76 per pay period for an associate degree and $41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $41.53 per pay period. Effective the first full pay period in July 2025, eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $25.00 per pay period for an associate degree and $50.00 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.00 per pay period.  Certification/License – Eligible employees who obtain or who have obtained an OC San 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. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45.72 per pay period. 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at $87.25 per pay period. Effective the first full pay period in July 2025, the overall maximum Development Pay for education, certification and/or licenses is fixed at $95.72 per pay period. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 7 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. 13.4.2 Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.4.3 Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.5 One-Time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 2022 will receive a $1,500 one-time payment. ARTICLE 14. - SEVERANCE PAY 14.1 Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee shall be notified in writing two (2) weeks prior to the effective separation date. In the event OC San does not give such notification, the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time, regular employees shall be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees and employees who are separated for cause, are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in OC San’s approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. 15.2 Effective the first full pay period in July 2022, employees15.2 Employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to a $160 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $362 per month matching OC San contribution. ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by OC San as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half (1.5) times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 8 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 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 Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday** (refer to Section 16.2) 16.2 Employees will be granted "Floating Holiday" hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours may be utilized in one quarter (.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3 Employees must use the “Floating Holiday” within the calendar year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. Every effort will be made to approve an employee's request for a "Floating Holiday" off providing sufficient notice is given. ARTICLE 17. – HOURS OF WORK 17.1 For record keeping and accounting purposes, the “workweek” for full-time employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80 schedule), five 8-hour days each workweek (10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4- hour day each workweek (7/80). The starting and ending times of individual employees’ workweeks may vary. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 9 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 OC San may, at its sole discretion, change an employee’s work schedule with thirty (30) days written notice to the affected employee. 17.4 OC San may provide the option of telecommuting, as set forth in the Telecommuting Policy. ARTICLE 18. - CALL-BACK PAY 18.1 When an employee is called back to work by OC San management without prior notice, and the employee has completed his or her normal work shift and left the work station, orsite; 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 shall receive a minimum of three (3) hours of call back pay. The three hours(3) hour 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. 18.2 The call back period shall begin when the standby employee has been informed by OC San to return to work. The call back period shall end when either the employee arrives at his or her residence or the original destination; in either case, the employee shall inform OC San upon arrival. 18.3. If the call back period has ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4. If the call back period has not ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6. Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature. 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, OC San 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 five hundred (500) dollars per week, and shall receive Call Back pay when they are actually called to work. Effective the first full pay period in July 2025, an employee placed on standby shall be compensated at the rate of six hundred (600) dollars per week. ARTICLE 20. – INSURANCE 20.1 OC San will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date. An open enrollment period shall be held annually. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 10 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 20.3 Medical Insurance 20.3.1 OC San will provide medical health insurance coverage through a Health Maintenance Organization (HMO) medical insurance plan and a Preferred Provider Organization (PPO) medical insurance plan. 20.3.2 Regular, full-time employees: 20.3.2.1 OC San 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. OC San will contribute 80% of the employee +1 dependent and full family premiums for the HMO and PPO medical plans. Any change in insurance rates shall be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San’s sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 OC San may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act (ACA), provided that no change may be made by OC San unless such change is either (1) mandated by the ACA, or (2) mutually agreed upon by the parties. 20.4 Group Insurance Premiums 20.4.1 Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.5 Life Insurance 20.5.1 OC San shall pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.56 Short Term Disability 20.6.1 OC San shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. 20.67 Long Term Disability 20.67.1 OC San shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.67.2 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 OC San’s long-term disability plan contract accession on the intranet. 20.67.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for OC San paid Long Term Disability may purchase such coverage at his or her own expense. 20.78 Dental Insurance 20.8.1 OC San will contribute 80% of employee only and 80% of full family premiums for dental insurance. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 11 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 20.89 Vision Insurance 20.9.1 OC San shall provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.910 Retiring Employees 20.9.1 OC San shall pay, for employees hired prior to July 1, 1988, two and one-half (2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under OC San’s medical plan. 20.9.2 In the event OC San adds additional optional insurance plans, OC San's share of the premium shall be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, OC San’s share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.320.10.1 OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by $10 per month for every full year of continuous service up to a maximum of 25 years or $250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. 20.9.410.2 Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefited status shall not count toward continuous service. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts, employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account 21.2.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.43 Dependent Care Assistance Account 21.3.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself 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 OC San decides upon the need for overtime or additional work. OC San may require the performance of overtime. In the event no qualified employee wishes to work overtime, OC San’s management may select employees with the ability to perform the work by inverse seniority. OC San managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 12 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty (40) hours in a seven (7) day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following one year of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers' Compensation leave does not provide an opportunity to judge an employees' capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. 23.3 New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.4 An employee may be released during his or her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will during his/her initial probationary period. Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. 23.5 Employees who are reassigned or, laterally transferred or have a voluntary job change will serve a probationary period of six months. The “probationary period” shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position shall be filled as an openexternal or promotional opportunity orinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. 24.2 A promoted employee shall serve a promotional probationary period lastingthat extends to at least until the first day of the pay period following twenty-six months after(26) weeks of employment without a break in service, beginning with the effective date of the promotion. OC San may extend an employee’s promotional probationary period for the length of any period during which an employee is on an extended leave of absence during the probationary period. 24.3 At any time during the promotional probationary period, an employee may be returned to his or her previous position. or an equivalent position. The promotional probation period may be extended by mutual agreement between the employee and OC San’sOC San management for up to ninety (90) days. 24.4 If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six months(26) weeks after the effective date of the promotion. 24.3 24.4.1 For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary period end before the promotional probationary period, the promoted employee shall remain OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 13 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 on the promotional probationary period for the remaining period until at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. 24.5 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 OC San 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 OC San. 25.1.1 Employees hired on or after September 21, 1979 and before August 1, 2011: OC San 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. 25.1.1.1 OC San will continue to pay 3.5% of an eligible employee’s base salary toward the employee’s contributions to OCERS. 25.1.2 Employees hired on or after August 1, 2011 and before January 1, 2013: OC San 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. 25.1.2.1 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.3 Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.3.1 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50% or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of $2.50 per hour for each hour worked between 6:00 p.m. and 6:00 a.m. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 14 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 OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 14 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in OC San Policy. 27.1.3 Vacation leave may only be utilized in increments of one-quarter (0.25) hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Annual Payoff. Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.- Sick leave is an insurance or protection provided by OC San 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 or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method - Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five (3.5) hours for each biweekly pay period of continuous service (ninety-one (91) hours per year). Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service (seventy-eight (78) hours per year), beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable OC San Policy. 27.2.427.2.3 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. 27.2.54 Annual Payoff - Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending in October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 15 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560 (mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20) years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty (20) years of service will be paid at the seventy-five percent (75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses - Sick leave may be applied only to the following situations: 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; or designated person. A designated person is a person identified by the employee at the time the employee requests sick leave. The employee is limited to one designated person per rolling 12-month period. D. Absence due to a job-related injury. E. Absence related to an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 246.5, 230(c) and 230.1(a). F. 27.2.8 Bereavement Leave, as set forth in section 27.6.1, below. 27.2.8 Protected Sick Leave – As prescribed under California Labor Code section 233, employees may use up to one-half (1/2) of their annual sick leave accruals in any calendar year for qualifying reasons to care for eligible family members. 27.2.9 General Provisions - To qualify for sick leave pay, the employee must notify OC San 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-quarter hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. IfExcept for the first forty (40) hours or five (5) days of sick leave use as prescribed under the California Paid Sick leave Law, if notified in advance by a manager or supervisor, 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. 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 Human Resources. Upon return to work, a written doctor's release 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. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 16 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two (22) working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through OC San’s timesheet system and provide a copy of the summons to his or her supervisor. 27.3.2 To be entitled to receive regular pay for such jury leave, the employee must report for work at OC San for time not actually retained on jury unless there is less than one-half ½ of their 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 their supervisor with their 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 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 OC San for deposit in the General Fund of OC San. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 17 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 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 maximumup to five (5) days of bereavement leave, thirty-six (36) hours of which will be paid time for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., sick, vacation, supplemental leave, compensatory time off) in order to be paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step- sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. With reasonable cause, employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5 - 9 10 - 14 15 - 19 20 - 24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.2 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.2.1 Supplemental Leave may be used in one-quarter (0.25) hour increments. 27.7.2.2 Any unused Supplemental Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.2.3 Any unused Supplemental 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 bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.2.5 Employees who are hired or transferred intobecome part of the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July – September 100% October – December 75% January – March 50% April – June 25% 27.7.2.6 Movement within and among the Administrative/Clerical, Engineering, and Technical Services Units will not be subject to pro-rata granting or forfeiture of Supplemental Leave. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 18 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of OC San to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2 Using the prescribed forms, approved by OC San 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A request for leaveLeave of absence without payAbsence Request 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one (1) day. 28.3.2 Paid time off accruals may be used for the care of the employee’s father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, or a child to whom the employee stands in loco parentis, 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, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4 The employee’s own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee’s family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 19 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 28.4.1.6 The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single twelve (12) month period. 28.4.2 CFRA Leave. CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and shall run concurrently with FMLA leave. 28.4.2.1.1 Employees are limited to one (1) “designated person” per rolling 12- month period. 28.4.2.2 CFRA may not be used for 1) an employee’s incapacity due to pregnancy or,. 2)) to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four (4) months of pregnancy disability leave under California’s Pregnancy Disability Leave (PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, OC San requests thirty (30) days advance notice. 28.4.4 Medical Certification 28.4.4.1 As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.4.2 As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.5 Medical and Dental Premiums During FMLA and/or CFRA Leave, OC San shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA and/or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave (e.g., layoff), in which case OC San’s obligation to continue health and dental or other benefits shall cease. 28.4.7 OC San Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve (12) weeks FMLA and/or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 20 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 28.5 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by OC San management to attend to personal matters or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both OC San’s and the employee’s share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3, and then is rehired to a position within OC San within one (1) year, OC San shall bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA and/or CFRA Leave, or any OC San approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of OC San’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 – Technical Services MOU July 1, 20225 to June 30, 20258 Page 21 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 29. - CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. OC San’s management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.1.1 The findings of the Human Resources Department and the decision by the General Manager are final and not subject to the appeal, problem-solving or grievance processes. 29.1.2 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 OC San’s Board of Directors. The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2 Y-Rating 29.2.1 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated) in accordance with the following table:. Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.2 Y-rating based on the above schedule shallwill be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements, organizational structure or “bumping” associated with layoffs. Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. (unless otherwise authorized by the General Manager). 29.2.3 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range.. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Rating 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of OC San’s comprehensive Classification Study results implemented effective July 12, OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 22 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. 29.4 Reopener: OC San and OCEA agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. ARTICLE 30. - DRIVER'S LICENSE 30.1 Employees who are required by OC San to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies OC San 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 OC San management’s discretion. 30.3 OC San will continue to pay the license renewals and physical examination costs of Class A &and B licenses that are specifically required by OC San. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require OC San to fill vacant, budgeted positions nor to prohibit OC San from eliminating vacant positions from the budget. OC San reserves the right to reassign staff to other positions in instances involving job restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if OC San finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2002. 31.331.2 If, in the sole discretion of OC San management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 31.43 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five (5) days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. 31.54 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers shall have their name removed from the list. 31.65 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. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 23 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, OC San may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on OC San time and at OC San expense. An employee may submit an independent medical opinion regarding the individual’s condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for OC San business shall be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1 Employees who are assigned by OC San management to perform the duties of a position at a higher level for a period of at least eighty (80) consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one (81), and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources, or designee. The eighty (80) hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. - BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2, which are designated for use by employee groups to post notices to OC San employees, provided that: (a) no controversial matter which is critical of or derogatory to OC San, its employees, officers or Directors may be posted; (b) nothing posted by OC San may be removed; (c) the OCEA shall remove its notices after a reasonable length of time; and (d) only a reasonable number of notices shall be posted. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 24 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three (3) employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of OC San permits the time away from assigned work. ARTICLE 40. - USE OF OC SAN FACILITIES 40.1 OC San 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 OC San operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1 OC San and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore, OC San 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 OC San or OCEA declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by OC San and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to OC San’s Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. - SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation, or OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 25 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 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 OC San, OC San and OCEA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1 OC San shall provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and OC San’s seal, at no cost to employees whose duties require that they wear uniforms. OC San will also provide lab coats as required by the lab managermanagement. 44.2 Employees covered by this agreement shall receive OCEA employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) as eligible to receive a safety boot allowance and/or upon supervisor request shall receive an annual or bi-annual voucher in the amount of $225 at the beginning of each fiscal year250 as applicable. 44.3 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 OC San 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 OC San’s Substance Abuse Policy will apply to all unit members. OC San may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation (DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San’s Anti-Drug and Alcohol Program. OC San 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 OC San’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 4646.1 New Employee Orientation 46.1.1. OCEA will be allowed up to one half-hour each orientation session to communicate with OCEA-represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the OCEA representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new OCEA-represented classifications. If there are no new hires in the OCEA-represented classifications for a scheduled session, OC San will notify the OCEA as soon as possible in advance of the session. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 26 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 46.1.3. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new OCEA- represented employees within 30 days of hire. 46.1.4. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all OCEA-represented employees at least every 120 days. 46.2 Dues Deductions 46.2.1 OC San shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2.2 OC San shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition, OC San shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. 46.2.3 OCEA shall indemnify, defend and hold the OC San harmless against any liability from any claims, demands, or other action related to OC San’s deduction of Union Dues, including claims related to the Union’s use of monies collected under these provisions. 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, OC San agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all unit members. ARTICLE 51. - RESIGNATION 51.1 Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving. OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written termination of employment with OC San 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 ARTICLE 52. (This Article intentionally left blank) OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 27 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association (OCEA) and the Orange County Sanitation District (OC San) hereby agree to meet within two (2) months from the OC San Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OC San. 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 raisedhave established a Labor Management Committee; the Committee convenes on an as-needed basis. OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 28 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 SIGNATURE PAGE 2022 – 2025 – 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT Executed: ________________________________ OCEA TECHNICAL SERVICES UNIT ORANGE COUNTY SANITATION OC SANDISTRICT Danielle ChauAlisha Greene, Labor Representative Laura Drottz Kalty, Lead Negotiator Alisha Greene, Labor Representative Veronica Rodarte, Operations Manager Celia ChandlerLaura Maravilla, Director of Human Resources Jose Juan Ambriz, Environmental Technician Carlos Rosales, Lead Organizer Laura MaravillaThys DeVries, Human Resources & Risk Manager Bobby Martinez, Materials Management Clerk Janine Aguilar, Human Resources Supervisor Christiana Richardson, Administrative Assistant Andrew Nau, Human Resources Supervisor Thys DeVries, Principal Human Resources Analyst OCEA – Technical Services MOU July 1, 20225 to June 30, 20258 Page 29 8972311.1 OR040-030 8972311.112942305.2 OR040-030 047 Mickey Whitney, Senior Construction Inspector Stephanie Barron, SeniorPrincipal Human Resources Analyst Dana Andrews, Senior Construction Inspector Dennis Dilliner, Lead Source Control Inspector David Mallonee, Environmental Technician Exhibit A TECHNICAL SERVICES UNIT Pay Effective Effective Effective 111-Jul-2225 1410-Jul-2326 129-Jul-2427 Classification Grade MIN MAX MIN MAX MIN MAX Lead Source Control Inspector 77 $53.32 59.97 $64.817 2.90 $55.45 62.67 $67.40 76.18 $57.39 64.55 $69.767 8.47 Data Management Technician II 75 $50.72 57.06 $61.686 9.39 $52.75 59.63 $64.15 72.51 $54.60 61.42 $66.407 4.69 Source Control Inspector II 73 $48.28 54.31 $58.696 6.02 $50.21 56.75 $61.04 68.99 $51.97 58.45 $63.187 1.06 Data Management Technician I 71 $45.94 51.68 $55.846 2.80 $47.78 54.01 $58.07 65.63 $49.45 55.63 $67.60. 10 Source Control Inspector I 69 $43.75 49.21 $53.205 9.85 $45.50 51.42 $55.33 62.54 $47.09 52.96 $57.276 4.42 Information Technology Technician 65 $39.64 44.59 $48.165 4.17 $41.23 46.60 $50.09 56.61 $42.67 48.00 $51.845 8.31 Environmental Technician 61 $35.90 40.39 $43.654 9.10 $37.34 42.21 $45.40 51.31 $38.65 43.48 $46.995 2.85 8972312.1 OR040-030 8972312.112942305.2 OR040-030 047 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT July 1, 20225 through June 30, 20258 OCEA – Engineering MOU July 1, 20225 to June 30, 20258 Page i 8972312.1 OR040-030 8972312.1 OR040-030 8972312.1 OR040-030 12942305.2 OR040-047 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. – OC SAN RIGHTS ............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY .......................................................................................................................... 8 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE .............................................................................................................................. 9 20.4 LIFE INSURANCE ..................................................................................................................................... 9 20.5 SHORT TERM DISABILITY ........................................................................................................................ 9 20.6 LONG TERM DISABILITY .......................................................................................................................... 9 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................. 10 20.9 RETIRING EMPLOYEES ............................................................................................................................ 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 10 21.2 GROUP INSURANCE PREMIUMS .................................................................................................. 10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ................................................................................. 10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT ................................................................................... 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD .......................................................................................................... 11 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 11 ARTICLE 25. - RETIREMENT ............................................................................................................................... 12 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 12 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 12 27.1 VACATION LEAVE .................................................................................................................... 12 27.2 SICK LEAVE ........................................................................................................................... 13 27.3 JURY DUTY LEAVE .................................................................................................................. 14 27.4 WITNESS LEAVE ..................................................................................................................... 15 27.5 MILITARY LEAVE ..................................................................................................................... 15 27.6 BEREAVEMENT LEAVE .............................................................................................................. 15 27.7 SUPPLEMENTAL LEAVE ............................................................................................................. 15 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 16 28.3 SUBSTITUTION OF PAID LEAVE ................................................................................................... 16 28.4 PERMISSIBLE USES ................................................................................................................. 17 28.5 GENERAL LEAVE ..................................................................................................................... 18 28.6 RETURN TO WORK POLICY ........................................................................................................ 18 28.7 COMPLIANCE WITH LAW ............................................................................................................ 19 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 19 ARTICLE 30. - DRIVER'S LICENSE ..................................................................................................................... 20 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 20 ARTICLE 32. - LIGHT DUTY................................................................................................................................. 21 ARTICLE 33. - MEDICAL EXAMINATION ........................................................................................................... 21 OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page ii 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 21 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 OC SAN 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 ARTICLE 47........................................................................................................................................................... 24 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 24 ARTICLE 49........................................................................................................................................................... 24 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 24 ARTICLE 51. - RESIGNATION ............................................................................................................................. 24 ARTICLE 52........................................................................................................................................................... 24 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………24 SIGNATURE PAGE ............................................................................................................................................... 25 EXHIBIT A ............................................................................................................................................................. 26 ARTICLE 1. - RECOGNITION ................................................................................................................................. 1 ARTICLE 2. - DURATION ....................................................................................................................................... 1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................... 1 ARTICLE 4. - OCEA ACCESS ................................................................................................................................ 1 ARTICLE 5. - OCEA RIGHTS ................................................................................................................................. 2 ARTICLE 6. – OC SAN RIGHTS ............................................................................................................................. 2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT ..................................................................................... 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT .......................................................................................... 2 ARTICLE 9. - SAFETY ............................................................................................................................................ 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL ...................................................................................................... 3 ARTICLE 11. - GRIEVANCE PROCEDURE ........................................................................................................... 4 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ............................................................................................. 5 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ...................................................................... 6 ARTICLE 14. - SEVERANCE PAY ......................................................................................................................... 7 ARTICLE 15. - DEFERRED COMPENSATION ...................................................................................................... 7 ARTICLE 16. - HOLIDAYS ...................................................................................................................................... 7 ARTICLE 17. - HOURS OF WORK ......................................................................................................................... 8 ARTICLE 18. - CALL-BACK PAY ........................................................................................................................ 98 ARTICLE 19. - STANDBY PAY .............................................................................................................................. 9 ARTICLE 20. - INSURANCE ................................................................................................................................... 9 20.3 MEDICAL INSURANCE .............................................................................................................................. 9 20.4 LIFE INSURANCE ..................................................................................................................................... 10 20.5 SHORT TERM DISABILITY ........................................................................................................................ 10 20.6 LONG TERM DISABILITY .......................................................................................................................... 10 20.7 DENTAL INSURANCE ............................................................................................................................... 10 20.8 VISION INSURANCE ................................................................................................................................. 10 20.9 RETIRING EMPLOYEES ............................................................................................................................ 10 ARTICLE 21. - REIMBURSEMENT ACCOUNT ................................................................................................... 11 21.2 GROUP INSURANCE PREMIUMS .................................................................................................. 11 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT ................................................................................. 11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT ................................................................................... 11 ARTICLE 22. - OVERTIME ................................................................................................................................... 11 ARTICLE 23. - PROBATIONARY PERIOD ...................................................................................................... 1211 ARTICLE 24. - PROMOTIONS.............................................................................................................................. 12 ARTICLE 25. - RETIREMENT ........................................................................................................................... 1312 ARTICLE 26. - SHIFT DIFFERENTIAL ................................................................................................................. 13 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY .............................................................................................. 13 27.1 VACATION LEAVE .................................................................................................................... 13 OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page iii 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 27.2 SICK LEAVE ........................................................................................................................... 14 27.3 JURY DUTY LEAVE .................................................................................................................. 15 27.4 WITNESS LEAVE ......................................................................................................................................... 16 15 27.5 MILITARY LEAVE ..................................................................................................................... 16 27.6 BEREAVEMENT LEAVE .............................................................................................................. 16 27.7 SUPPLEMENTAL LEAVE ............................................................................................................. 16 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY ....................................................................................... 17 28.3 SUBSTITUTION OF PAID LEAVE ................................................................................................... 17 28.4 PERMISSIBLE USES .......................................................................................................................................... 18 17 28.5 GENERAL LEAVE ..................................................................................................................... 19 28.6 RETURN TO WORK POLICY ........................................................................................................ 19 28.7 COMPLIANCE WITH LAW ............................................................................................................ 20 ARTICLE 29. - CLASSIFICATION STUDIES ....................................................................................................... 20 ARTICLE 30. - DRIVER'S LICENSE ................................................................................................................. 2120 ARTICLE 31. - LAYOFF PROCEDURE ................................................................................................................ 21 ARTICLE 32. - LIGHT DUTY............................................................................................................................. 2221 ARTICLE 33. - MEDICAL EXAMINATION ....................................................................................................... 2221 ARTICLE 34. - MILEAGE ALLOWANCE ............................................................................................................. 22 ARTICLE 35. - ACTING PAY ................................................................................................................................ 22 ARTICLE 36........................................................................................................................................................... 22 ARTICLE 37. - PERSONNEL FILES .................................................................................................................... 22 ARTICLE 38. - BULLETIN BOARDS ................................................................................................................ 2322 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ....................................................... 2322 ARTICLE 40. - USE OF OC SAN FACILITIES ................................................................................................. 2322 ARTICLE 41. - SCOPE OF BARGAINING ........................................................................................................... 23 ARTICLE 42. - IMPASSE PROCEDURES ........................................................................................................... 23 ARTICLE 43. - SEVERABILITY ........................................................................................................................ 2423 ARTICLE 44. - UNIFORMS ............................................................................................................................... 2423 ARTICLE 45. - SUBSTANCE ABUSE POLICY .................................................................................................... 24 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS .................................................. 24 ARTICLE 47........................................................................................................................................................... 25 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES ................................................................................. 25 ARTICLE 49........................................................................................................................................................... 25 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ................................................................ 25 ARTICLE 51. - RESIGNATION ............................................................................................................................. 25 ARTICLE 52........................................................................................................................................................... 25 ARTICLE 53. - LABOR MANAGEMENT COMMITTEE………………………………………………….……………25 SIGNATURE PAGE ............................................................................................................................................... 26 EXHIBIT A ............................................................................................................................................................. 27 OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page iv 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 OCEA – Engineering MOU July 1, 20225 to June 30, 20258 Page 1 8972312.1 OR040-030 8972312.1 OR040-030 8972312.1 OR040-030 12942305.2 OR040-047 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed, of the Orange County Sanitation District’s (OC San) Board of Directors, OC San's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA) for the Engineering Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 20225, is entered into between the Orange County Sanitation OC San, referred to hereinafter as the “OC San,” and the Orange County Employees Association, referred to hereinafter as “OCEA.” 1.2 OC San recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit “A” (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by OC San. ARTICLE 2. - DURATION 2.1 This Agreement shall be binding on OC San and OCEA when approved and adopted by OC San’s Board of Directors. This Agreement shall terminate on June 30, 20258. Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The GroupOCEA shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 4.1 An OCEA Representative shall have access to OC San’s facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of Human Resources, or designee, of any changes in that list. 4.3 OCEA access shall not interfere with OC San’s operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated as confidential or secure. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 2 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 ARTICLE 5. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to OC San by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither OC San nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. – OC SAN RIGHTS 6.1 OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. OC San 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 OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, or military or veteran status, reproductive health decision making or any other lawfully protected class. To the extent required by law or by OC San’s rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 8.1 OC San 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 OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of OC San to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 3 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 of OC San, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit: verbal reprimand, written reprimand, suspension without pay; reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee’s last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail, which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action;(3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to a OC San management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action, the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent; however, OC San may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies & Procedures Manual. 10.7 Dismissal shall be preceded by at least one (1) written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no call/no show” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.7.1 Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered "no call/no show" and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources, or designee, shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. The hearing officer will provide a written, advisory decision to the General Manager. The General OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 4 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary actions will be recorded in employee performance reviews. Disciplinary action documentation, except verbal reprimand documentation, shall be placed in an employee's personnel file in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor’s employee files. Documentation regarding verbal and written reprimands may be removed from a supervisor’s employee file and/or an employee’s personnel file twenty-four (24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee’s personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San’s proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of OC San by an individual employee within the Unit or by the OCEA. OC San 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 OC San and the OCEA, be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance, to discuss the issue with the Director of Human Resources, or designee, in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. OC San shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten (10) days of the occurrence of the event giving rise to the complaint, or within ten (10) days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within ten (10) days. 11.4.2 Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee, with a copy provided to the Director of Human Resources or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1 Identify the specific management act to be reviewed; 11.4.2.2 Specify how the employee was adversely affected; OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 5 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 11.4.2.3 List the specific provisions of the MOU that were allegedly violated and state how they were violated; 11.4.2.4 Specify the remedy requested; and 11.4.2.5 Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.13 The Division Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.34 Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the employee’s Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by OC San within five (5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The employee’s Department Director, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.45 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five (5) days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.56 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five (5) days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date of the grievance is received. The decision of the General Manager is final. 11.5 General Provisions: An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA, the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to OC San operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.5.16 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.27 Resolution may be agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of OC San managers through the Problem Solving Procedure. This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 6 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten (10) days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten (10) days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five (5) steps, with an approximate 5.0% difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay – Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2 Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program: The performance management program includes three (3) rating categories (exceeds, proficient, needs improvement) for performance appraisals. 13.3.2 Development Pay – Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types:  Education – Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $20.76 per pay period for an associate degree and $41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $41.53 per pay period. Effective the first full pay period in July 2025, eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $25.00 per pay period for an associate degree and $50.00 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.00 per pay period.  Certification/License – Eligible employees who obtain or who have obtained an OC San 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. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45.72 per pay period. 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at $87.25 per pay period. Effective the first full pay period in July 2025, the overall maximum Development Pay for education, certification and/or licenses is fixed at $95.72 per pay period. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 7 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. 13.4.2 Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.4.3 Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.5 One-Time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 2022 will receive a $1,500 one-time payment. ARTICLE 14. - SEVERANCE PAY 14.1 Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee shall be notified in writing two (2) weeks prior to the effective separation date. In the event OC San does not give such notification, the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time, regular employees shall be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees and employees who are separated for cause, are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in OC San’s approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. 15.2 Effective the first full pay period in July 2022, employees15.2 Employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to a $160 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $362 per month matching OC San contribution. ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by OC San as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half (1.5) times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off, the employee will accrue compensatory time off for the OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 8 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 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 Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday** (refer to Section 16.2) 16.2 Employees will be granted "Floating Holiday" hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours may be utilized in one quarter (.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3 Employees must use the “Floating Holiday” within the calendar year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. Every effort will be made to approve an employee's request for a "Floating Holiday" off providing sufficient notice is given. ARTICLE 17. – HOURS OF WORK 17.1 For record keeping and accounting purposes, the “workweek” for full-time employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80 schedule), five 8-hour days each workweek (10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4- hour day each workweek (7/80). The starting and ending times of individual employees’ workweeks may vary. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 9 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 OC San may, at its sole discretion, change an employee’s work schedule with thirty (30) days written notice to the affected employee. 17.4 OC San may provide the option of telecommuting, as set forth in the Telecommuting Policy. ARTICLE 18. - CALL-BACK PAY 18.1 When an employee is called back to work by OC San management without prior notice, and the employee has completed his or her normal work shift and left the work station, orsite, 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 shall receive a minimum of three (3) hours of call back pay. The three hours(3) hour 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. 18.2 The call back period shall begin when the standby employee has been informed by OC San to return to work. The call back period shall end when either the employee arrives at his or her residence or the original destination; in either case, the employee shall inform OC San upon arrival. 18.3. If the call back period has ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4. If the call back period has not ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6. Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature. 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, OC San 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 five hundred (500) dollars per week, and shall receive Call Back pay when they are actually called to work. Effective the first full pay period in July 2025, an employee placed on standby shall be compensated at the rate of six hundred (600) dollars per week. ARTICLE 20. – INSURANCE 20.1 OC San will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date. An open enrollment period shall be held annually. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 10 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 20.3 Medical Insurance 20.3.1 OC San will provide medical health insurance coverage through a Health Maintenance Organization (HMO) medical insurance plan and a Preferred Provider Organization (PPO) medical insurance plan. 20.3.2 Regular, full-time employees: 20.3.2.1 OC San 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. OC San will contribute 80% of the employee +1 dependent and full family premiums for the HMO and PPO medical plans. Any change in insurance rates shall be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San’s sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 OC San may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act (ACA), provided that no change may be made by OC San unless such change is either (1) mandated by the ACA, or (2) mutually agreed upon by the parties. 20.4 Group Insurance Premiums 20.4.1 Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.5 Life Insurance 20.5.1 OC San shall pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.56 Short Term Disability 20.6.1 OC San shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. 20.67 Long Term Disability 20.67.1 OC San shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.67.2 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 OC San’s long-term disability plan contract accession on the intranet. 20.67.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for OC San paid Long Term Disability may purchase such coverage at his or her own expense. 20.78 Dental Insurance 20.8.1 OC San will contribute 80% of employee only and 80% of full family premiums for dental insurance. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 11 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 20.89 Vision Insurance 20.9.1 OC San shall provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.910 Retiring Employees 20.9.1 OC San shall pay, for employees hired prior to July 1, 1988, two and one-half (2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under OC San’s medical plan. 20.9.2 In the event OC San adds additional optional insurance plans, OC San's share of the premium shall be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, OC San’s share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.320.10.1 OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by $10 per month for every full year of continuous service up to a maximum of 25 years or $250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. 20.9.410.2 Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefited status shall not count toward continuous service. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts, employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account 21.2.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.43 Dependent Care Assistance Account 21.3.1 The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself 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 OC San decides upon the need for overtime or additional work. OC San may require the performance of overtime. In the event no qualified employee wishes to work overtime, OC San’s management may select employees with the ability to perform the work by inverse seniority. OC San managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 12 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty (40) hours in a seven (7) day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following one year of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers' Compensation leave does not provide an opportunity to judge an employees' capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. 23.3 New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.4 An employee may be released during his or her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will” during his/her initial probationary period). Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. 23.5 Employees who are reassigned or, laterally transferred or have a voluntary job change will serve a probationary period of six months. The “probationary period” shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position shall be filled as an openexternal or promotional opportunity orinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. 24.2 A promoted employee shall serve a promotional probationary period lastingthat extends to at least until the first day of the pay period following twenty-six months after(26) weeks of employment without a break in service, beginning with the effective date of the promotion. OC San may extend an employee’s promotional probationary period for the length of any period during which an employee is on an extended leave of absence during the probationary period. 24.3 At any time during the promotional probationary period, an employee may be returned to his or her previous position. or an equivalent position. The promotional probation period may be extended by mutual agreement between the employee and OC San’sOC San management for up to ninety (90) days. 24.4 If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six months(26) weeks after the effective date of the promotion. 24.324.4.1 For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary period end before the promotional probationary period, the promoted employee shall remain on the promotional probationary period for the remaining period until at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 13 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 24.5 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 OC San 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 OC San. 25.1.1 Employees hired on or after September 21, 1979 and before August 1, 2011: OC San 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. 25.1.1.1 OC San will continue to pay 3.5% of an eligible employee’s base salary toward the employee’s contributions to OCERS. 25.1.2 Employees hired on or after August 1, 2011 and before January 1, 2013: OC San 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. 25.1.2.1 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.3 Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.3.1 OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50% or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of $2.50 per hour for each hour worked between 6:00 p.m. and 6:00 a.m. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 14 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 14 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in OC San Policy. 27.1.3 Vacation leave may only be utilized in increments of one-quarter (0.25) hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Annual Payoff. Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date,; all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.- Sick leave is an insurance or protection provided by OC San 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 or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method - Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five (3.5) hours for each biweekly pay period of continuous service (ninety-one (91) hours per year). Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service (seventy-eight (78) hours per year), beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable OC San Policy. 27.2.427.2.3 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. 27.2.54 Annual Payoff - Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending in October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 15 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 241-560 35% Over 560 (mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20) years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty (20) years of service will be paid at the seventy-five percent (75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses - Sick leave may be applied only to the following situations: 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; or designated person. A designated person is a person identified by the employee at the time the employee requests sick leave. The employee is limited to one designated person per rolling 12-month period. D. Absence due to a job-related injury. E. Absence related to an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 246.5, 230(c) and 230.1(a). F. 27.2.8 Bereavement Leave, as set forth in section 27.6.1, below. 27.2.8 Protected Sick Leave – As prescribed under California Labor Code section 233, employees may use up to one-half (1/2) of their annual sick leave accruals in any calendar year for qualifying reasons to care for eligible family members. 27.2.9 General Provisions - To qualify for sick leave pay, the employee must notify OC San 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-quarter hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. IfExcept for the first forty (40) hours or five (5) days of sick leave use as prescribed under the California Paid Sick Leave Law, if notified in advance by a manager or supervisor, 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. 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 Human Resources. Upon return to work, a written doctor's release 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. If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement shall comply with the provisions of these Acts. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 16 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two (22) working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through OC San’s timesheet system and provide a copy of the summons to his or her supervisor. 27.3.2 To be entitled to receive regular pay for such jury leave, the employee must report for work at OC San for time not actually retained on jury unless there is less than one-half ½ of their 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 their supervisor with their 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 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 OC San for deposit in the General Fund of OC San. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system, any full-time employee, whether probationary or regular, shall receive a maximumup to five (5) days of bereavement leave, thirty-six (36) hours of which will be paid time for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., sick, vacation, supplemental leave, compensatory time off) in order to be OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 17 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step- sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. With reasonable cause, employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5 - 9 10 - 14 15 - 19 20 - 24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.2 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.2.1 Supplemental Leave may be used in one-quarter (0.25) hour increments. 27.7.2.2 Any unused Supplemental Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.2.3 Any unused Supplemental 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 bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.2.5 Employees who are hired or transferred intobecome part of the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July – September 100% October – December 75% January – March 50% April – June 25% 27.7.2.6 Movement within and among the Administrative/Clerical, Engineering, and Technical Services Units will not be subject to pro-rata granting or forfeiture of Supplemental Leave. ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of OC San 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 OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 18 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2 Using the prescribed forms, approved by OC San 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A request for leaveLeave of absence without payAbsence Request 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one (1) day. 28.3.2 Paid time off accruals may be used for the care of the employee’s father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, or a child to whom the employee stands in loco parentis, 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, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4 The employee’s own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee’s family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single twelve (12) month period. 28.4.2 CFRA Leave. CFRA Leave may be used for: OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 19 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 28.4.2.1 The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and shall run concurrently with FMLA leave. 28.4.2.1.1 Employees are limited to one (1) “designated person” per rolling 12- month period. 28.4.2.2 CFRA may not be used for 1) an employee’s incapacity due to pregnancy or, 2)) to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four (4) months of pregnancy disability leave under California’s Pregnancy Disability Leave (PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, OC San requests thirty (30) days advance notice. 28.4.4 Medical Certification 28.4.4.1 As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.4.2 As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’s attending physician in accordance with Department of Labor (DOL) regulations. 28.4.5 Medical and Dental Premiums During FMLA and/or CFRA Leave, OC San shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA and/or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave (e.g., layoff), in which case OC San’s obligation to continue health and dental or other benefits shall cease. 28.4.7 OC San Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve (12) weeks FMLA and/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 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by OC San management to attend to personal matters or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both OC San’s and the employee’s share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 20 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3, and then is rehired to a position within OC San within one (1) year, OC San shall bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA and/or CFRA Leave, or any OC San approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of OC San’s intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law shall govern. ARTICLE 29. - CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. OC San’s management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.1.1 The findings of the Human Resources Department and the decision by the General Manager are final and not subject to the appeal, problem-solving or grievance processes. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 21 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 29.1.2 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 OC San’s Board of Directors. The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2 Y-Rating 29.2.1 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated) in accordance with the following table:. Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.2 Y-rating based on the above schedule shallwill be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements, organizational structure or “bumping” associated with layoffs. Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. (unless otherwise authorized by the General Manager). 29.2.3 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range.. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Rating 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of OC San’s comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. 29.4 Reopener: OC San and OCEA agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. ARTICLE 30. - DRIVER'S LICENSE 30.1 Employees who are required by OC San to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 22 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies OC San 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 OC San management’s discretion. 30.3 OC San will continue to pay the license renewals and physical examination costs of Class A &and B licenses that are specifically required by OC San. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require OC San to fill vacant, budgeted positions nor to prohibit OC San from eliminating vacant positions from the budget. OC San reserves the right to reassign staff to other positions in instances involving job restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if OC San finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2002. 31.331.2 If, in the sole discretion of OC San management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 31.43 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five (5) days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. 31.54 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers shall have their name removed from the list. 31.65 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, OC San may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on OC San time and at OC San expense. An employee may submit an independent medical opinion regarding the individual’s condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 23 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for OC San business shall be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1 Employees who are assigned by OC San management to perform the duties of a position at a higher level for a period of at least eighty (80) consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one (81), and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources, or designee. The eighty (80) hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. – BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2, which are designated for use by employee groups to post notices to OC San employees, provided that: (a) no controversial matter which is critical of or derogatory to OC San, its employees, officers or Directors may be posted; (b) nothing posted by OC San may be removed; (c) the OCEA shall remove its notices after a reasonable length of time; and (d) only a reasonable number of notices shall be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three (3) employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of OC San permits the time away from assigned work. ARTICLE 40. - USE OF OC SAN FACILITIES 40.1 OC San 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 OC San operations. The OCEA agrees to pay for the cost of any additional custodial or security services. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 24 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 ARTICLE 41. - SCOPE OF BARGAINING 41.1 OC San and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore, OC San 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 OC San or OCEA declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by OC San and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to OC San’s Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. - SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on OC San, OC San and OCEA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1 OC SanOC San shall provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and OC San’s seal, at no cost to employees whose duties require that they wear uniforms. OC San will also provide lab coats as required by the lab managermanagement. 44.2 Employees covered by this agreement shall receive OCEA employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) as eligible to receive a safety boot allowance and/or upon supervisor request shall receive an annual or bi-annual voucher in the amount of $225 at the beginning of each fiscal year250 as applicable. 44.3 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 OC San management, may be worn when OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 25 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 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 OC San’s Substance Abuse Policy will apply to all unit members. OC San may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation (DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San’s Anti-Drug and Alcohol Program. OC San 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 OC San’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 4646.1 New Employee Orientation 46.1.1. OCEA will be allowed up to one half-hour each orientation session to communicate with OCEA-represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the OCEA representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new OCEA-represented classifications. If there are no new hires in the OCEA-represented classifications for a scheduled session, OC San will notify the OCEA as soon as possible in advance of the session. 46.1.3. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new OCEA- represented employees within 30 days of hire. 46.1.4. Human Resources staff will provide the OCEA with an electronic copy of the name, home address, personal email address, and personal cell phone number of all OCEA-represented employees at least every 120 days. 46.2 Dues Deductions 46.2.1 OC San shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2.2 OC San shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition, OC San shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 26 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 46.2.3 OCEA shall indemnify, defend and hold the OC San harmless against any liability from any claims, demands, or other action related to OC San’s deduction of Union Dues, including claims related to the Union’s use of monies collected under these provisions. 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, OC San agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all unit members. ARTICLE 51. - RESIGNATION 51.1 Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving. OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written termination of employment with OC San 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. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association (OCEA) and the Orange County Sanitation OC San (OC San) hereby agree to meet within two (2) months from the OC San Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OC San. 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 raisedSAN) have established a Labor Management Committee; the Committee convenes on an as-needed basis. OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 27 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 SIGNATURE PAGE 2022 – 2025 – 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT Executed: ________________________________ OCEA ENGINEERING UNIT ORANGE COUNTY SANITATION DISTRICT Danielle ChauAlisha Greene, Labor Representative Laura Drottz Kalty, Lead Negotiator Alisha Greene, Labor Representative Veronica Rodarte, Operations Manager Celia ChandlerLaura Maravilla, Director of Human Resources Robert (Mickey) Whitney, Senior Construction Inspector Carlos Rosales, Lead Organizer Laura MaravillaThys DeVries, Human Resources & Risk Manager Bobby Martinez, Materials Management ClerkDana Andrews, Senior Construction Inspector Janine Aguilar, Human Resources Supervisor Christiana Richardson, Administrative Assistant Andrew Nau, Human Resources Supervisor Thys DeVries, Principal Human Resources Analyst OCEA –Engineering MOU July 1, 20225 to June 30, 20258 Page 28 8972312.1 OR040-030 8972312.1 OR040-0308972312.1 OR040-030 12942305.2 OR040-047 Mickey Whitney, Senior Construction Inspector Stephanie Barron, SeniorPrincipal Human Resources Analyst Dana Andrews, Senior Construction Inspector Dennis Dilliner, Lead Source Control Inspector David Mallonee, Environmental Technician Exhibit A ENGINEERING UNIT Pay Effective Effective Effective 111-Jul-2225 1410-Jul-2326 129-Jul-2427 Classification Grade MIN MAX MIN MAX MIN MAX Safety Inspector 78 $54.6361.4 6 $66.4074.7 0 $56.8264.2 3 $6978.06 $58.8166.1 6 $71.4880.4 0 Senior Construction Inspector 78 $54.6361.4 6 $66.4074.7 0 $56.8264.2 3 $6978.06 $58.8166.1 6 $71.4880.4 0 Engineering Associate 76 $51.99 $63.21 $54.07 $65.74 $55.96 $68.04 Construction Inspector 74 $49.5155.6 9 $60.1767.6 8 $51.4958.2 0 $62.5870.7 3 $53.2959.9 5 $64.7772.8 5 Engineering Technician 70 $50.44.85 $54.5261.3 2 $46.6452.7 1 $56.7064.0 8 $48.2754.2 9 $58.6866.0 0 STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4409 Agenda Date:7/23/2025 Agenda Item No:3. FROM:Laura Drottz Kalty, Chief Negotiator Originator: Laura Maravilla, Director of Human Resources SUBJECT: SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS - LOCAL 501 CHIEF NEGOTIATOR’S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-07, entitled “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding (MOU) between the Orange County Sanitation District and the International Union of Operating Engineers Local 501, for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; and B. Direct staff to finalize and sign the Memorandum of Understanding (MOU) between Orange County Sanitation District and the International Union of Operating Engineers Local 501 bargaining unit. BACKGROUND The MOU between the Orange County Sanitation District (OC San)and the International Union of Operating Engineers Local 501 (Local 501)that became effective on July 1,2022,expired on June 30,2025.On September 25,2024,the Board of Directors selected Laura Drottz Kalty of Liebert Cassidy Whitmore to serve as its Chief Negotiator to negotiate successor agreements with all recognized employee organizations.Subsequently,on November 20,2024,the Steering Committee provided Ms. Kalty with negotiating parameters and authority to commence negotiations. Local 501 submitted its initial proposal for a successor MOU on April 8,2025.Local 501 and OC San have met and conferred in good faith nine (9) times since receiving the initial proposal. On June 25,2025,OC San and Local 501 reached a Tentative Agreement on the terms and conditions of employment for employees represented by Local 501,as set forth in the successor MOU being presented for final approval and adoption by the OC San Board of Directors. On June 25,2025,the Board of Directors authorized the Chief Negotiator to proceed with a three- year contract and salary increases for Local 501 as follows:4.5%for the first year,4.5%for the second year,and 3.0%for the final year of the contract.This includes corresponding salary range adjustments effective the first full pay period in July for each year of the contract,with the first Orange County Sanitation District Printed on 7/16/2025Page 1 of 5 powered by Legistar™ File #:2025-4409 Agenda Date:7/23/2025 Agenda Item No:3. adjustments effective the first full pay period in July for each year of the contract,with the first increase to commence in July 2025. 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 & development PROBLEM The MOU between OC San and Local 501 that became effective on July 1,2022,expired on June 30,2025.OC San has a legal duty to bargain in good faith and,upon reaching full and final agreement on a successor MOU with a bargaining group,approval must be obtained from its governing body. PROPOSED SOLUTION Adopt Resolution No.OC SAN 25-07,entitled “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding (MOU)between the Orange County Sanitation District and the International Union of Operating Engineers Local 501,for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”. TIMING CONCERNS OC San and Local 501 have bargained in good faith and have reached a tentative agreement on a successor MOU that shall go into effect July 2025, contingent on Board approval. RAMIFICATIONS OF NOT TAKING ACTION Some of the impacts of not approving successor labor agreements include labor instability,employee morale, and impasse. PRIOR COMMITTEE/BOARD ACTIONS On September 25,2024,the Board of Directors authorized staff to execute an agreement with Ms. Kalty of Liebert Cassidy Whitmore to serve as OC San’s Chief Negotiator.This action was taken pursuant to OC San’s Purchasing Ordinance No. OC SAN-61. 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: Orange County Sanitation District Printed on 7/16/2025Page 2 of 5 powered by Legistar™ File #:2025-4409 Agenda Date:7/23/2025 Agenda Item No:3. ·March 26, 2025 - Steering Committee and Board Meeting ·April 23, 2025 - Steering Committee and Board Meeting ·May 28, 2025 - Steering Committee and Board Meeting ·June 25, 2025 - Steering Committee and Board Meeting ADDITIONAL INFORMATION Local 501 is the recognized employee organization certified to provide exclusive representation over wages,hours of work,and other terms and conditions of employment for 193 non-exempt OC San employees in the trades.These employees perform skilled labor within the trades across the Operations & Maintenance Department and Administrative Services Department. Based on Board authorization,OC San reached a full tentative agreement with Local 501 on June 25,2025,including a three-year contract with a 4.5%salary increase in the first year,a 4.5%salary increase in the second year,and a 3.0%salary increase for the final year of the contract.Local 501 distributed the proposal to their membership for voting,and Local 501’s membership ratified the proposal by majority vote on July 9, 2025. The full redlined version of the Local 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, 2025. 2.Article 2, Duration: Agreement terminates on June 30, 2028. 3.Article 12, Problem Solving Procedure. Revise language to include: 12.1 Counseling and performance appraisals are not subject to the problem solving procedure. 4.Article 13, Salary Adjustments and Compensation: 13.3 Salary Range Adjustments: 13.3.1 Effective the first pay period of July 2025, 4.5% salary range adjustment. 13.3.2 Effective the first pay period of July 2026, 4.5% salary range adjustment. 13.3.3 Effective the first pay period of July 2027, 3.0% salary range adjustment. 13.3.4 One Time Lump Sum Payment -Employees hired or promoted into the Group as of the first full pay period in July 2025 will receive a $1000 one-time payment. The payment shall not apply to employees hired after the first full pay period following approval and adoption of the Agreement. 5.Article 15,Deferred Compensation:Effective the first full pay period in July 2025,employees covered by OCERS Plans B and U and who participate in the deferred compensation plan,are eligible to receive up to $335.37 per month matching OC San contribution.Effective the first full pay period in July 2026,employees covered by OCERS Plans B and U and who participate in the deferred compensation plan,are eligible to receive up to $383.64 per month matching OC San contribution. 6.Article 18, Call-Back Pay. Revise language to include: 18.7 Fatigue Time:The intent of fatigue time is to provide eight (8)hours of rest between the end of an employee’s overtime/call-back work and the start of the next regularly scheduled work shift,by replacing regular scheduled straight time hours with paid rest time.Fatigue time shall not be considered unscheduled time off,and consistent with OC San Non-Base Building Pay policy,fatigue time will be considered scheduled leave for purposes of calculating Orange County Sanitation District Printed on 7/16/2025Page 3 of 5 powered by Legistar™ File #:2025-4409 Agenda Date:7/23/2025 Agenda Item No:3. Pay policy,fatigue time will be considered scheduled leave for purposes of calculating overtime Pay.Employees are responsible for obtaining supervisor approval in advance and accurately reporting fatigue time in the timekeeping system. If an employee is required to perform sixteen (16)hours or more of work in a rolling twenty- four (24)hour period and the completion of the work results in less than eight (8)hours of rest prior to the start of the employee’s next regularly scheduled shift,the following options will be made available: 18.7.1 Nearby hotel options,as identified in the Standby Process Guidelines:OM-SOP- 03-002,will be made available to employees to reduce travel time returning to their home, as well as returning to work for their next scheduled shift; and/or 18.7.2 The employee will be given the option to delay the start time of their next shift for up to eight (8)hours and will be compensated with fatigue time at their straight time rate of pay.For example,an employee in maintenance who is regularly scheduled to work from 6:00 am to 4:30 pm,who is held over to work until midnight,would be given the option to delay their 6:00 am.Start time until 8:00 am.The employee would receive two (2) hours of fatigue time at straight time pay. 18.7.3 If upon completion of fatigue time,there are two (2)hours or less remaining in the employee’s regularly scheduled shift for that day,the employee may elect to use accrued leave time and shall not be considered unscheduled time off,subject to supervisor approval.If the supervisor determines there is a legitimate business necessity,an employee may be required to report for the remainder of their regularly scheduled shift. 7.Article 19, Standby Pay. Revise language to include: 19.4 Effective the first full pay period in July 2025,employees on standby will be compensated at the rate of $600 dollars per week. 8.Article 27, Leave of Absence with Pay: 27.11 Bereavement Leave. Revise language to align with changes in the law: 27.11.1 Any full-time employee,whether probationary or regular,will receive up to five (5)days of bereavement leave,thirty-six (36)hours of which will be paid time,for the death or funeral of an immediate family member.An employee may use existing accruals (i.e.,personal leave or compensatory time off)in order to be paid for up to five (5) days. 9.Article 44, Uniforms. Revise language to include: 44.4.Classifications designated in SOP-102 Personal Protective Equipment (PPE)shall receive an annual voucher for a safety boot allowance in the amount of $250 at the beginning of each fiscal year. In addition to the aforementioned changes,the proposed MOU includes general housekeeping updates to certain articles for purposes of language clarification and to ensure alignment with changes in applicable laws, regulations, and internal administrative procedures. CEQA N/A Orange County Sanitation District Printed on 7/16/2025Page 4 of 5 powered by Legistar™ File #:2025-4409 Agenda Date:7/23/2025 Agenda Item No:3. FINANCIAL CONSIDERATIONS The total cost is $8,030,814 over the term of the agreement.This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 25-07 ·Local 501 MOU (Redlined) Orange County Sanitation District Printed on 7/16/2025Page 5 of 5 powered by Legistar™ OC SAN 25-07-1 RESOLUTION NO. OC SAN 25-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501, FOR FISCAL YEARS 2025/2026, 2026/2027 & 2027/2028 WHEREAS, on September 28, 2022, the Board of Directors (“Directors”) of the Orange County Sanitation District (OC San) authorized the General Manager to sign the Memorandum of Understanding with the International Union of Operating Engineers (referred hereinafter as “Local 501”), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2022 through June 30, 2025 (“2022 MOU”). WHEREAS, prior to the expiration of the 2022 MOU, on December 13, 2024, 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 OC San 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 the first full pay period in July 2025; and WHEREAS, the parties have modified the 2025 MOU between OC San and Local 501 to reflect the parties’ understanding regarding certain terms and conditions, which by this reference are made a part of this resolution as if set forth herein. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOU between OC San and Local 501 for the contract period of July 1, 2025, through June 30, 2028, attached hereto as Exhibit A and is hereby approved. Section 2. The General Manager is authorized to sign the Memorandum of Understanding with Local 501 for the period of July 1, 2025, through June 30, 2028, in a form approved by General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 23, 2025. _______________________________________ Ryan P. Gallagher Board Chairman OC SAN 25-07-2 ATTEST: _______________________________________ Kelly A. Lore Clerk of the Board OC SAN 25-07-3 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. OC SAN 25-07 was passed and adopted at a regular meeting of said Board on the 23rd day of July 2025, 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 23rd day of July 2025. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District 12959983.4 OR040-046 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, 20225 through June 30, 20258 Local 501 MOU July 1, 2025 to June 30, 2028 Page 2 12959983.4 OR040-046 TABLE OF CONTENTS ARTICLE 1. RECOGNITION ............................................................................................................................. 4 ARTICLE 2. DURATION .................................................................................................................................... 4 ARTICLE 3. SUCCESSOR AGREEMENT ........................................................................................................ 4 ARTICLE 4. LOCAL 501 ACCESS ................................................................................................................... 4 ARTICLE 5. LOCAL 501 RIGHTS ..................................................................................................................... 5 ARTICLE 6. OC SAN RIGHTS .......................................................................................................................... 5 ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT.................................................................................. 5 ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT ....................................................................................... 5 ARTICLE 9. SAFETY ......................................................................................................................................... 6 ARTICLE 10. DISCIPLINE AND DISMISSAL ..................................................................................................... 6 ARTICLE 11. GRIEVANCE PROCEDURE ......................................................................................................... 7 ARTICLE 12. PROBLEM SOLVING PROCEDURE .........................................................................................98 ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION………………………………………………...9 ARTICLE 14. SEVERANCE PAY .................................................................................................................. 1110 ARTICLE 15. DEFERRED COMPENSATION .............................................................................................. 1110 ARTICLE 16. HOLIDAYS .............................................................................................................................. 1110 ARTICLE 17. HOURS OF WORK ..................................................................................................................... 12 ARTICLE 18. CALL-BACK PAY ................................................................................................................... 1413 ARTICLE 19. STANDBY PAY ........................................................................................................................... 14 ARTICLE 20. INSURANCE ............................................................................................................................... 15 ARTICLE 21. REIMBURSEMENT ACCOUNT .............................................................................................. 1716 ARTICLE 22. OVERTIME .............................................................................................................................. 1716 ARTICLE 23. PROBATIONARY PERIOD ..................................................................................................... 1716 ARTICLE 24. PROMOTIONS ........................................................................................................................ 1817 ARTICLE 25. RETIREMENT ......................................................................................................................... 1817 ARTICLE 26. SHIFT DIFFERENTIAL ........................................................................................................... 1918 ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY .........................................................................................1918 ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY .................................................................................2221 ARTICLE 29. CLASSIFICATION STUDIES .................................................................................................. 2524 ARTICLE 30. DRIVER'S LICENSE ............................................................................................................... 2625 ARTICLE 31. LAYOFF PROCEDURE .......................................................................................................... 2725 ARTICLE 32. LIGHT DUTY ........................................................................................................................... 2725 ARTICLE 33. MEDICAL EXAMINATION ...................................................................................................... 2726 ARTICLE 34. MILEAGE ALLOWANCE ........................................................................................................ 2726 ARTICLE 35. ACTING PAY ........................................................................................................................... 2826 ARTICLE 36. PERFORMANCE REVIEWS ................................................................................................... 2826 ARTICLE 37. PERSONNEL FILES. .............................................................................................................. 2826 ARTICLE 38. BULLETIN BOARDS .............................................................................................................. 2827 ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS29………………………………………….27 ARTICLE 40. USE OF OC SAN FACILITIES ................................................................................................ 2927 ARTICLE 41. SCOPE OF BARGAINING ...................................................................................................... 2927 ARTICLE 42. IMPASSE PROCEDURES ...................................................................................................... 2927 ARTICLE 43. SEVERABILITY ....................................................................................................................... 3028 ARTICLE 44. UNIFORMS .............................................................................................................................. 3028 ARTICLE 45. SUBSTANCE ABUSE POLICY .............................................................................................. 3028 ARTICLE 46. NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS ............................................ 3128 Local 501 MOU July 1, 2025 to June 30, 2028 Page 3 Local 501 MOU July 1, 2022 to June 30, 2025 Page 3 12959983.4 OR040-046 ARTICLE 47. UNION DUES .......................................................................................................................... 3129 ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES ........................................................................... 3130 ARTICLE 49. SHIFT CHANGES ................................................................................................................... 3230 ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY........................................................... 3331 ARTICLE 51. RESIGNATION ........................................................................................................................ 3331 ARTICLE 52. OPERATOR CERTIFICATION ............................................................................................... 3331 ARTICLE 53. OPERATOR ROTATIONS ...................................................................................................... 3432 SIGNATURE PAGE .......................................................................................................................................... 3533 EXHIBIT A ......................................................................................................................................................... 3634 Local 501 MOU July 1, 2025 to June 30, 2028 Page 4 Local 501 MOU July 1, 2022 to June 30, 2025 Page 4 12959983.4 OR040-046 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution OC SAN 22-31 of the Joint Board of Directors, OC San’s authorized representatives have met and conferred in good faith with representatives of the International Union of Operating Engineers, Local 501, for OC San’s Operations and Maintenance Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by Local 501 accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by Local 501 as set forth in this Agreement. ARTICLE 1. RECOGNITION 1.1. This Agreement is entered into between the Orange County Sanitation District, referred to hereinafter as OC San, and the International Union of Operating Engineers, Local 501, AFL-CIO, referred to hereinafter as Local 501, as a mutual recommendation to the Board of Directors of OC San 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, 20225. 1.2. OC San 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 OC San. ARTICLE 2. DURATION 2.1. This Agreement will be binding on OC San and Local 501 when approved and adopted by OC San’s Board of Directors. This Agreement will terminate on June 30, 20258. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No. OCSD 99-24. ARTICLE 3. SUCCESSOR AGREEMENT 3.1. Local 501 will submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. LOCAL 501 ACCESS 4.1. The Local 501 representative will have access to OC San’s facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The Local 501 representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2. Local 501 will provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this Article, and will notify the Director of Human Resources, or designee, of any changes in that list. Local 501 MOU July 1, 2025 to June 30, 2028 Page 5 Local 501 MOU July 1, 2022 to June 30, 2025 Page 5 12959983.4 OR040-046 4.3. Local 501 access will not interfere with OC San operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated confidential or secure. ARTICLE 5. LOCAL 501 RIGHTS 5.1. Local 501 may designate fourteen (14) employees to act as Shop Stewards for employees covered by this Agreement. Local 501 will furnish the Director of Human Resources, or designee, with the names of employees selected as Shop Stewards and will update the list as necessary. An alternate Shop Steward may be designated to act in the absence of the regular Shop Steward. Employees not listed on the roster of Shop Stewards provided to OC San by Local 501 may not act as representatives. 5.2. For purposes of meeting and conferring, Local 501 will be allowed to designate two (2) Shop Stewards to attend (additional Shop Stewards may be added by mutual agreement of the parties). An additional employee, who may or may not be a designated Shop Steward, may be invited to attend to provide subject matter knowledge. 5.3. Shop Stewards will not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither OC San nor Local 501 will interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Local 501 activity. ARTICLE 6. OC SAN RIGHTS 6.1. OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2. OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this Agreement. OC San exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude Local 501 from appealing or meeting and conferring the practical consequences or impacts that OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT 7.1. There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, military or veteran status, reproductive health decision making, or any other lawfully protected class. To the extent required by law or by OC San’s rules or regulations, this provision of the Agreement will be applied to all members of the Unit without regard to any protected classification. Local 501 MOU July 1, 2025 to June 30, 2028 Page 6 Local 501 MOU July 1, 2022 to June 30, 2025 Page 6 12959983.4 OR040-046 ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT 8.1. OC San 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 OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. SAFETY 9.1. It is the duty of OC San to provide and maintain a safe place of employment. Local 501 will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of OC San, and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. 9.2. OC San has a Safety Committee that includes up to six (6) members of Local 501. The committee’s recommendations are advisory. The committee will meet at least quarterly; however, additional meetings may be scheduled by either Local 501 or OC San. ARTICLE 10. DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Unit: verbal reprimand; written reprimand; suspension without pay; reduction in pay, demotion to a classification with a lower pay grade, or dismissal. 10.2. Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay, reduction in pay, demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail, which will be the date of issuance. 10.5. The Notice of Intent will contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action; (3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline, or to an OC San management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action, the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San 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, OC San may reduce Local 501 MOU July 1, 2025 to June 30, 2028 Page 7 Local 501 MOU July 1, 2022 to June 30, 2025 Page 7 12959983.4 OR040-046 discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies and Procedures Manual. 10.7. Dismissal will be preceded by at least one (1) written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no-call/no-show,” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post-disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date will be the first business day following the final day of the suspension). The Director of Human Resources, or designee, will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager will be final. 10.9. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action documentation, except verbal reprimand documentation, will be maintained in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be maintained in the supervisor’s employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four (24) months from implementation, there have been no recurrences of similar incidents; supervisors shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee’s personnel file twenty-four (24) months subsequent to the date of the issuance if there has been no recurrence of a similar incident during the period. If managementIf the Human Resources Department agrees to remove the disciplinary action documentation from an employee’s personnel file, such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this Article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or a demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) will not be considered discipline. ARTICLE 11. GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline, which requires a Notice of Intent, may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought to the attention of OC San by an individual employee within the Unit or by Local 501. OC San 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 OC San and 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 Local 501 MOU July 1, 2025 to June 30, 2028 Page 8 Local 501 MOU July 1, 2022 to June 30, 2025 Page 8 12959983.4 OR040-046 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 Local 501 at all steps of the Grievance Procedure unless specifically agreed otherwise by Local 501 and the employee. OC San will provide a copy of all written grievance settlements to Local 501. Any reference to days in this Article means business days, Monday through Friday, excluding recognized holidays. 11.4.1. Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor, or designee, within ten (10) days of the occurrence of the event giving rise to the complaint, or within ten (10) days from the time that the employee became aware of such event. The supervisor, or designee, will attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within ten (10) days. 11.4.2. Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee, with a copy provided to the Director of Human Resources, or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of the MOU that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested; and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.6. The Division Manager, or designee, will respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.3. Step 3. If a grievance is not settled under Step 1 or Step 2, it may be presented to the employee’s Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by the OC San within five (5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The Department Director, or designee, will respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.4. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to anthe Assistant General Manager, or designee, within five (5) days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, will respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.5. Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five (5) days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. The decision of the General Manager, or designee, is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by a Local 501 Shop Steward, the employee representative will be given reasonable time off without loss of pay to perform this responsibility. Absence from work will be approved only if it does not cause disruption to OC San operations. Local 501 MOU July 1, 2025 to June 30, 2028 Page 9 Local 501 MOU July 1, 2022 to June 30, 2025 Page 9 12959983.4 OR040-046 However, if the time requested cannot be provided, an alternate time will be arranged. 11.6. Failure of a management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it will be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the parties. 11.7. Resolution may be agreed upon at any stage of the grievance process. However, the Local 501 will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of OC San 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. Counseling and performance appraisals are not subject to the problem solving process. Any reference to days in this Article means business days. 12.2. Step 1: An employee will submit his/her issue that is not subject to the Grievance Procedure in writing to his/her supervisor, or designee, within ten (10) days of the occurrence of the event giving rise to the complaint or within ten (10) days from the time that the employee became aware of such event. The supervisor, or designee, will review the situation or decision, and provide a written response within five (5) days from the date they were notified of the problem. 12.3. Step 2: If the problem is not resolved to the employee's satisfaction, a written statement concerning the problem may be filed with the employee’s Division Manager or designee, within ten (10) days of receipt of the supervisor's decision. The employee raising the issue will be provided a written response from the Division Manager, or designee, within ten (10) days after their statement is received. 12.4. Step 3: If a problem is not settled under Step 1 or Step 2, it may be presented within ten (10) days to the Director of Human Resources, or designee, who, at their discretion, may form a Work Issues Committee, comprised of the employee’s Department Director, or designee, another management representative and two (2) Local 501 representatives. The Work Issues Committee may convene to cooperatively review and develop recommendations for solution(s) to the problem. The Director of Human Resources, or designee, may utilize the committee’s recommendation(s) to respond in writing to the employee within fifteen (15) days after the date the problem is received. 12.5. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION 13.1. Merit Pay Step System 13.1.1. Each pay grade is divided into five (5) steps, with an approximate 5.0% difference between each step. 13.1.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.2. Merit Pay 13.2.1. Step Increase Pay – Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned Local 501 MOU July 1, 2025 to June 30, 2028 Page 10 Local 501 MOU July 1, 2022 to June 30, 2025 Page 10 12959983.4 OR040-046 supervisor. Step Increase Pay will be paid according to the following: 13.2.1.1. Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.2.1.2. Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.2.1.3. Performance Management Program: The performance management program includes three (3) rating categories (exceeds, proficient, and needs improvement) for performance appraisals. 13.2.2. Development Pay – Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump- sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.2.2.1. Education – Eligible employees who have completed a degree of approved subjects at an accredited college or university will receive $25.00 per pay period for an associate degree and $50.00 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.00 per pay period. 13.2.2.2. Certification/License – Eligible employees who obtain an OC San 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. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45.72 per pay period. 13.2.2.2.1. The overall maximum Development Pay for any combination of education, certification and/or licenses is fixed at $95.72 per pay period. 13.2.2.2.2. Grade V Pay – Employees who receive Grade V pay in accordance with the applicable OC San 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. 13.2.2.2.3. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.2.2.2.4. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.3. Salary Range Adjustments 13.3.1. Effective the first pay period in July 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. Local 501 MOU July 1, 2025 to June 30, 2028 Page 11 Local 501 MOU July 1, 2022 to June 30, 2025 Page 11 12959983.4 OR040-046 13.3.2. Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.3.3. Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.3.4. One-time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 20225 will receive a $20001,000 one-time payment. The payment shall not apply to employees hired after the first full pay period following approval and adoption of the Agreement. ARTICLE 14. SEVERANCE PAY 14.1. Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee will be notified in writing two (2) weeks prior to the effective separation date. In the event OC San does not give such notification, the employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time, regular employees will be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2. Employees in limited term or part-time positions, probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. DEFERRED COMPENSATION 15.1. Employees may participate in OC San approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. 15.2. Effective the first full pay period in July 2022, employees covered by OCERS Plans B and U who participate in the deferred compensation plan, are eligible to receive up to $98 per month matching OC San contribution. Effective the first full pay period in July 2023, employees covered by OCERS Plans B and UEmployees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $168 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $335.37 per month matching OC San contribution. Effective the first full pay period in July 2026, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $383.64 per month matching OC San contribution. ARTICLE 16. HOLIDAYS 16.1. For the purpose of OC San’s business calendar, the days listed below are observed by OC San as holidays. Employees who are assigned to eight (8), nine (9) or ten (10) hour shifts, Monday through Friday, will observe the holidays listed in Schedule A. Employees who are assigned to twelve (12) hour shifts will observe the holidays as listed in Schedule B. Employees shall receive holiday pay if their entire scheduled work shifts immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee’s work schedule requires that they work on an observed holiday, the employee shall be paid at his/her regular rate of pay for the holiday, or receive an equivalent amount of Holiday Compensatory Time Off if requested by December 31 of the prior year on the Holiday Comp Cashout Form. Employees shall also receive premium pay at the rate of one and one half (1.5) times their regular hourly rate for all hours actually worked. Employees with a compensatory time off Local 501 MOU July 1, 2025 to June 30, 2028 Page 12 Local 501 MOU July 1, 2022 to June 30, 2025 Page 12 12959983.4 OR040-046 balance in excess of fifty (50) hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty (50). SCHEDULE A HOLIDAYS 20236 20247 20258 New Year's Day January 21 January 1 January 1December 31 Martin Luther King, Jr. Day January 1619 January 1518 January 2017 President's Day February 2016 February 1915 February 1721 Memorial Day May 2925 May 2731 May 2629 Independence Day July 43 July 45 July 4 Labor Day September 47 September 26 September 14 Veteran's Day November 1011 November 11 November 1110 Thanksgiving Day November 2326 November 2825 November 2723 Day after Thanksgiving November 27 November 26 November 24 Day before Christmas December 24 December 23 December 25 Christmas December 25 December 24 December 26 Local 501 MOU July 1, 2025 to June 30, 2028 Page 13 Local 501 MOU July 1, 2022 to June 30, 2025 Page 13 12959983.4 OR040-046 SCHEDULE A HOLIDAY 2023 2024 2025 Day after Thanksgiving November 24 November 29 November 28 Day before Christmas December 25 December 24 December 24 Christmas December 26 December 25 December 25 Floating Holiday See 16.2 See 16.2 See 16.2 SCHEDULE B HOLIDAY 20236 20247 20258 New Year's Day January 1 January 1 January 1 Martin Luther King, Jr. Day January 1619 January 1518 January 2017 President's Day February 2016 February 1915 February 1721 Memorial Day May 2925 May 2731 May 2629 Independence Day July 4 July 4 July 4 Labor Day September 47 September 26 September 14 Veteran's Day November 11 November 11 November 11 Thanksgiving Day November 2326 November 2825 November 2723 Day after Thanksgiving November 2227 November 2926 November 2824 Day before Christmas December 24 December 24 December 24 Christmas December 25 December 25 December 25 Floating Holiday See 16.2 See 16.2 See 16.2 16.2. Floating Holiday: Employees will be granted "Floating Holiday" hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours may be utilized in one-quarter (0.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro-rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3. Employees must use the “Floating Holiday” within the calendar year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. 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 Local 501 MOU July 1, 2025 to June 30, 2028 Page 14 Local 501 MOU July 1, 2022 to June 30, 2025 Page 14 12959983.4 OR040-046 17.1. For record keeping and accounting purposes, the “workweek” for full-time employees is forty (40) hours per 168-hour period, to be paid on a biweekly payroll basis of eighty (80) hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80), five 8-hour days each workweek (10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4-hour day each workweek (7/80). The starting and ending times of employees’ workweeks may vary but will be subject to a bid agreement based on seniority. The regular hours of work for each shift will be consecutive and will be posted. Current practices regarding hours of work for Maintenance personnel and meals for Operations personnel will continue. The regular hours of work for each shift will be consecutive, divided only by normal breaks or rest periods. Work schedule and shift start and stop times will not be adjusted to avoid payment of overtime. 17.2. OC San may, in accordance with Article 6 – OC San Rights, change an employee’s work schedule and/or work location with a thirty (30) day written notice to the affected employee. The change will not be made as a disciplinary action or to avoid payment of overtime. The thirty (30) day written notice will not apply to shift changes pursuant to Article 49. 17.3. The last fifteen (15) minutes of an Eemployee’s work shift will be designated as their cleanup period. If the employee’s work shift is extended, the fifteen (15) minute cleanup period shall occur at the end of the extended period. Employees may not avoid the cleanup period and end their shift before its scheduled ending time. 17.4. Employees will receive paid rest periods not to exceed ten (10) minutes no more than twice in an eight (8), nine (9) or ten (10) hour shift or three (3) times for a shift of more than ten (10) hours. Each shift will contain a minimum thirty (30) minute meal period for every six (6) hours of work. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that his/her hours had been changed, he/she will receive two (2) hours pay at the overtime rate. 17.4.1. When employees from the Collections Division are assigned to line cleaning (gravity crew) as part of a road crew and actively working an assignment, the supervisor may authorize a paid thirty (30) minute meal period, understanding employees may be required to perform work and work through lunch as necessary. 17.5. Operations 17.5.1. For purposes of this Article, the day shift is defined as an assigned work shift of at least seven (7) consecutive hours, between 0600 hours and 1800 hours. The night shift is defined as an assigned work shift of at least seven (7) consecutive hours, between 1800 and 0600 hours. 17.5.2. Any employee who declares that an individual hardship exists should submit a request, to be excluded from the twelve (12) hour workweek, to the Human Resources Department. Human Resources will determine if there is a valid employee hardship, on a case-by-case basis, and notify the Local 501 representative of the decision. 17.6. Maintenance 17.6.1. Maintenance: Except where otherwise provided below, the official workweek for full-time represented personnel in Maintenance will be forty (40) hours per week. The workweek will consist of a four (4) consecutive day work schedule with ten (10) consecutive daily hours in a workday with a one-half (½) hour unpaid lunch. 17.6.2. The workday will be 6:00 a.m. to 4:30 p.m. The workweek will begin on a Monday or a Tuesday and end on the corresponding Thursday or Friday. All hours greater than 40- hours in an individual’s assigned workweek will be considered overtime and paid at one and one- half (1.5) times the regular rate of pay. 17.6.3. Disputes over days off will be handled on the basis of seniority except when OC San can demonstrate a business necessity. Local 501 MOU July 1, 2025 to June 30, 2028 Page 15 Local 501 MOU July 1, 2022 to June 30, 2025 Page 15 12959983.4 OR040-046 17.6.4. Co-Generation: For purposes of this Article, the day shift is defined as an assigned work shift of at least seven (7) consecutive hours, between 10:00 a.m. and 10:00 p.m., which is inclusive of the Passdown period. The night shift is defined as an assigned work shift of at least seven (7) consecutive hours, between 10:00 p.m. and 10:00 a.m., which is inclusive of the Passdown period. In exigent circumstances where an employee is required to be present outside of the regular shift, overtime may be authorized by management. 17.7. Any employee who declares that individual hardship exists based on their assigned schedule, should submit a request to the Human Resources Department. Human Resources will determine if there is a valid employee hardship, on a case-by-case basis, and notify the Local 501 representative of the decision. ARTICLE 18. CALL-BACK PAY 18.1. When an employee is called back to work by OC San management without prior notice, and the employee has completed his/her normal work shift and left the work station; when prior notice is given but the work begins on the same day at least three (3) hours after completion of the regular shift; or when an employee assigned to standby is actually called to work, the employee will receive a minimum of three (3) hours of call back pay. The three (3) hour minimum, whether or not actually worked, will be paid at the rate of one and one half (1.5) times the regular hourly rate. 18.2. The call back period shall begin when the standby employee has been informed by OC San to return to work. The call back period shall end when either the employee arrives at his or her residence or the original destination; in either case, the employee must inform OC San upon arrival. 18.3. If the call back period has ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4. If the call back period has not ended and the employee is called back to work (whether within or outside of the 3-hour minimum timeframe), the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6. Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature, as determined by the applicable on-duty Operations Supervisor or designee. 18.6.1. In some instances, if call back work can be postponed for several hours, the Operations Supervisor or designee will do so as a courtesy to the employee and to allow for the work to be performed during daylight or day shift. For instance, a breakdown occurs at 3:00 a.m. but work can be postponed a few hours so the standby employee can be called in at 6:00 a.m. 18.7. Fatigue Time: The intent of fatigue time is to provide eight (8) hours of rest between the end of an employee's overtime/call-back work and the start of the next regularly scheduled work shift, by replacing regular scheduled straight time hours with paid rest time. Fatigue time shall not be considered unscheduled time off, and consistent with OC San Non-Base Building Pay policy, fatigue time will be considered scheduled leave for purposes of calculating overtime pay. Employees are responsible for obtaining supervisor approval in advance and accurately reporting fatigue time in the timekeeping system. If an employee is required to perform sixteen (16) hours or more of work in a rolling twenty-four (24) hour period and the completion of the work results in less than eight (8) hours of rest prior to the start of the employee's next regularly scheduled shift, the following options will be made available: Local 501 MOU July 1, 2025 to June 30, 2028 Page 16 Local 501 MOU July 1, 2022 to June 30, 2025 Page 16 12959983.4 OR040-046 18.7.1. Nearby hotel options, as identified in the Standby Process Guidelines: OM - SOP-03-002, will be made available to employees to reduce travel time returning to their home, as well as returning to work for their next scheduled shift; and/or, 18.7.2. The employee will be given the option to delay the start time of their next shift for up to eight (8) hours, and will be compensated with fatigue time at their straight time rate of pay. For example, for an employee in maintenance who is regularly scheduled to work from 6:00 am to 4:30 p.m., who is held over to work until midnight, would be given the option to delay their 6:00 a.m. start time until 8:00 a.m. The employee would receive two (2) hours of fatigue time at straight time pay; 18.7.3. If upon completion of fatigue time, there are two (2) hours or less remaining in the employee's regularly scheduled shift for that day, the employee may elect to use accrued leave time and shall not be considered unscheduled time off, subject to supervisor approval. If the supervisor determines there is a legitimate business necessity, an employee may be required to report for the remainder of their regularly scheduled shift. ARTICLE 19. STANDBY PAY 19.1. Treatment Plant: 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. Each plant maintenance craft may create a standby list of a minimum of three (3) employees. Standby lists shall first be populated by volunteers. If, after allowing for volunteers, the standby list still does not meet the three (3) employee minimum, OC San shall populate the remaining vacant slots of the standby list by means of reverse seniority within the division. Employees who volunteer or are mandated to be on the standby list shall be competent, experienced, journey level employees. Employees who are on their initial probation shall be eligible for standby the first day of the pay period following six (6) months of employment without a break in service. 19.1.1. Each craft may create additional standby lists if anticipated work requires a specific skill set that may not be readily available on the existing standby list. If additional standby lists are required, affected employees will be notified. 19.2. Collections System: Standby is time during which an employee is not required to be at the work location or at the employee’s residence but is required to be available for immediate return to work. The standby list for the Collections division will contain a minimum of six (6) employees; three (3) employees for primary standby and three (3) employees for secondary standby. The standby list shall first be populated by volunteers. If, after allowing for volunteers, the standby list still does not meet the six (6) employee minimum, OC San shall populate the remaining vacant slots of the standby list by means of reverse seniority within the division. Employees who volunteer or are mandated to be on the standby list shall be competent and experienced, having one (1) of the following: a. at least eighteen (18) months of experience within the Collection Division, and be at a Mechanic job classification level; or b. at least four (4) years of experience within the Collections Division. 19.2.1. Employees who are on their initial probation shall be eligible for standby the first day of the pay period following six (6) months of employment without a break in service. 19.3. Employees shall not complete more than two (2) consecutive weeks of standby without a seven (7) day break between standby assignments. 19.4. Employees on standby will be compensated at the rate of $550 per week. Effective the first full pay period in July 2025, employees on standby will be compensated at the rate of $600 per week. 19.4.1. Employees whose standby assignment include an OC San recognized Holiday will be compensated with two (2) hours of straight time pay. Local 501 MOU July 1, 2025 to June 30, 2028 Page 17 Local 501 MOU July 1, 2022 to June 30, 2025 Page 17 12959983.4 OR040-046 19.5. Special Risk Standby: In the event of a “special risk,” (e.g., based on seismic, weather, high-flow, and/or high impact events), the Director of Operations & Maintenance or his/her designee may designate specific additional classifications to be on “Special Risk” standby. Employees on Special Risk standby will be compensated on a pro-rated, daily basis, $78.57 for each day on Special Risk standby. ARTICLE 20. INSURANCE 20.1. OC San 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. OC San 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: 20.4.1. OC San will contribute 90% of employee only premiums for the HMO medical health plans and 80% of employee only premiums for the PPO and HDHP medical health plans. OC San will contribute 80% for employee +1 dependent and full family premiums for the HMO or, PPO or HDHP medical plans. Any change in insurance rates will be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.4.2. The HDHP will be accompanied by a Health Savings Account (HSA) to pay for qualified medical expenses. OC San 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 OC San’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 OC San's aforementioned annual premium cost savings. 20.4.3. OC San may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act (ACA), provided that no change may be made by OC San Local 501 MOU July 1, 2022 to June 30, 2025 Page 5 Page 5 unless such change is either (1) mandated by the ACA or, (2) mutually agreed upon by the parties. 20.5. Group Insurance Premiums 20.5.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.6. Life Insurance 20.6.1. OC San will pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.7. Short Term Disability 20.7.1. OC San will provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. 20.8. Long Term Disability 20.8.1. OC San will provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.8.2. For participants age 64 and younger, the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older, the maximum period of payment is specified. The specified periods and additional information about coverage is included in OC San’s long-term disability plan contract accession on the intranet. 20.8.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for OC San paid Long Term Disability may purchase such coverage at his or her own expense. 20.9. Dental Insurance 20.9.1. OC San will contribute 80% of employee only and 80% of full family premiums for dental insurance. 20.10. Vision Insurance 20.10.1. OC San will provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.11. Retiring Employees 20.11.1. OC San 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 OC San’s medical plan. 20.11.2. In the event OC San adds additional optional insurance plans, OC San’s share of the premium will be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, the OC San’s share of the premium will be the same as for existing insurance plans as set forth above. 20.11.3.20.11.1. OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by ten dollars ($10) per month for every full year of continuous service up to a maximum of 25 years or two hundred fifty dollars ($250) per month. 20.11.4.20.11.2. Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefitted status shall not count toward continuous service. ARTICLE 21. REIMBURSEMENT ACCOUNT Local 501 MOU July 1, 2022 to June 30, 2025 Page 6 Page 6 21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department. 21.2. Medical Care Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. OVERTIME 22.1. Employees will be notified as soon as practicable after OC San decides upon the need for overtime or additional work. OC San may require the performance of overtime. In the event no qualified employee wishes to work overtime, OC San's management may select employees with the ability to perform the work by inreverse seniority. OC San managers will attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation, all time charged to unscheduled 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. ARTICLE 23. PROBATIONARY PERIOD 23.1. All new employees and employees who are reassigned or laterally transferred serve an initial probationary period beginning with the date of hire, reassignment or transfer and extending to at least the first day of the pay period following one-year of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers' Compensation leave does not provide an opportunity to judge an employee’s capability to meet performance expectations for a position, and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. All new employees who are hired in apprenticeship and/or trainee positions shall serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following the complete period of training for the position, without a break in service. Extended absence without pay, short-term and long-term disability and Workers' Compensation leave does not provide an opportunity to judge an employee’s capability to meet performance expectations for a position, and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.3. Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. 23.4. New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.5. An employee may be released during his/her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will” during his/her initial Probationary Period). Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. Local 501 MOU July 1, 2022 to June 30, 2025 Page 7 Page 7 ARTICLE 24. PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position will be filled as an openexternal or promotional opportunity orinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. If the promotion is for a classification that is subject to Department of Transportation requirements, the employee selected for promotion must successfully complete alcohol and controlled substances testing in order to be promoted. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six (6) months after the effective date of the promotion. At any time during the promotional probationary period, an employee may be returned to his/her previous position. If the employee does not pass the probationary period, OC San shall return the employee to his or her previous position or an equivalent position. The promotional probation period may be extended by mutual agreement between the employee and OC San’s management for up to ninety (90) days. If an employee is promoted during his/her initial probationary period, the period will be extended until at least the first day of the pay period six (6) months after the effective date of the promotion. 24.3. Promoted employees will receive the equivalent of a one (1) step increase in pay, not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. RETIREMENT 25.1. OC San will continue participation in the Orange County Employees Retirement System (OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and OC San. 25.1.1. Employees hired on or after September 21, 1979 and before July 1, 2011: OC San 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. 25.1.1.1. OC San will continue to pay 3.5% of an eligible employee’s base salary towards the employee’s contributions to OCERS. 25.1.2. Employees hired on or after July 1, 2011 and before January 1, 2013: The OC San 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. 25.1.2.1. OC San will pay 0% of an eligible employee’s base salary towards the employee’s contributions to OCERS. 25.1.3. Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.3.1. OC San will pay 0% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.4. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of fifty percent (50%) or more of the hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift will receive a shift differential of $3.00 per hour. Local 501 MOU July 1, 2022 to June 30, 2025 Page 8 Page 8 ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY 27.1. Personal Leave 27.1.1. Personal leave is provided to allow employees time off with pay for vacation, personal business and illness or injury. Personal leave is accrued by full-time employees for all paid hours, including hours actually worked and hours in a paid-leave payroll status, on a biweekly basis as follows: Years of Service Hours- Biweekly Hours- Annual In years 0 through 1 3.08 80 In years 2 through 4 5.38 140 In years 5 through 10 6.92 180 In year 11 7.23 188 In year 12 7.54 196 In year 13 7.85 204 In year 14 8.15 212 In year 15 8.46 220 In year 16 8.69 226 In year 17 8.92 232 In year 18 9.15 238 In year 19 9.38 244 In year 20 and over 9.62 250 27.1.2. When unpaid absences occur, personal leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.2. Scheduled Time Off 27.2.1. Management will make reasonable effort, considering the operational needs of OC San, to accommodate all employee requests for time off. Scheduled time off should normally be requested at least two (2) weeks in advance to increase the likelihood of those dates being approved. 27.2.2. Employees with at least one (1) year’s service must request and take at least forty (40) hours off each year. 27.2.3. Supervisor absences will not affect an employee’s ability to schedule time off unless the time off request is submitted within two (2) weeks of the date requested. 27.2.4. Requests for time off that are submitted beyond six (6) months shall not be approved unless the request is for at least one (1) week in duration. These requests shall be approved based on seniority. Requests for time off that are less than one (1) week in duration must be submitted within six (6) months of the date requested. Time off requests that are submitted within six (6) months shall be approved on a first-come, first-serve basis based on staffing requirements. Excessive single or partial day requests for time off may be cause for denial if the absence(s) is found to negatively impact the effectiveness of work teams, scheduling of work, training, and the ability to take multiple days off by other staff. 27.2.5. Full-day time off requests with less than twenty-three (23) hours’ notice shall be considered unscheduled. All other time off requests, including partial day time off requests, must be requested in accordance with the provisions of this Article and may be considered scheduled at management’s discretion based on business needs. 27.3. Unscheduled Time Off 27.3.1. Personal leave provides income protection to an employee unable to work due to illness, injury or pregnancy, caring for an ill or injured member of his/her immediate family or other personal emergency. Unscheduled time off Local 501 MOU July 1, 2022 to June 30, 2025 Page 9 Page 9 must be accounted for by completion of an Unscheduled Time Off Report upon the employee’s return to work. It is the responsibility of OC San’s management to control the potential abuse of unscheduled time off privileges. Tardiness less than fifteen (15) minutes will not be deducted from the employees pay, but numerous occurrences will be addressed through the progressive discipline procedures. Employees who are more than fifteen (15) minutes tardy to work must use accrued time off to offset the time away from work. Tardiness of more than fifteen (15) minutes may be considered unscheduled time off based on excessive occurrences. 27.3.2. Employees must notify their supervisor prior to the start time of their shift when they are unable to report to work. Any absence that is requested within twenty-three (23) hours of the start of an employee’s work schedule, excluding protected leaves of absence and bereavement leave, shall be considered unscheduled time off. 27.3.2.1 Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered “no call/no show” and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 27.3.3. An employee’s attendance record will be reviewed with an employee after five (5) separate occurrences of unscheduled time off to provide an opportunity to assess problems that could potentially lead to disciplinary action. The accumulation of the sixth (6th) and seventh (7th) occurrence within a twelve (12) month period will result in a verbal warning. The eighth (8th) occurrence will result in a written warning. Employees who are charged with ten (10) occurrences of unscheduled time off within a calendar twelve (12) month period will be subject to termination. A rolling (12) month calendar period will be utilized to measure absence occurrences. A “rolling” twelve (12) month calendar period is measured backward from the date the employee uses the leave. Absences of multiple consecutive days involving the same injury or illness will be considered a single occurrence. OC San also has the right to discipline employees on the basis of total absences away from work. 27.3.4. Employees returning from an extended leave should notify their supervisor as soon as possible to facilitate personnel scheduling. 27.3.5. The employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for unscheduled absences of ten (10) consecutive days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. For absences of one (1) or more working days in an unpaid status, a request for leave and a medical statement on prescribed forms, stating expected date of return must be submitted to Human Resources. 27.4. Personal Leave and Workers’ Compensation Leave 27.4.1. Employees who are injured in the course of their employment are placed on Workers’ Compensation Leave, and receive wage loss benefits to which they are entitled under the Workers’ Compensation Act. Employees may request to receive prorated Personal Leave pay to supplement their Workers’ Compensation payments in an amount such that the sum of both is equal to the employee’s regular base pay. 27.5. Personal Leave Payoff 27.5.1. Employees who terminate, retire or decease will be paid in full at their current rate of pay for all Personal Leave hours accrued. 27.6. Maximum Accrual 27.6.1. Employees may have a maximum accumulation of four hundred forty (440) hours of personal leave as of the last day of the final pay period in December of each year. In the event an employee accrues personal leave in excess of four hundred forty (440) hours, it must be used prior to said December date. All other remaining hours in excess of four hundred forty (440) will be paid to the employee in the first pay period in January at the employee’s then current hourly rate of compensation. 27.7. Sick Leave Bank 27.7.1. Employees who elected to bankhave banked sick leave that was accrued prior to being part of the implementation of Personal Leave provisionsLocal 501 Unit may elect to use such time off for absence due to a bona fide illness, Local 501 MOU July 1, 2022 to June 30, 2025 Page 10 Page 10 injury or pregnancy; to attend to the illness or injury of an immediate family member; or, for an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Employees who retire or decease will be paid at the fifty percent (50%) rate for all banked sick leave hours; an employee who terminates will be compensated for banked sick leave as follows: Banked Sick Leave Hours Rate of Payoff 0 – 100 0 percent 101 – 240 25 percent 241 – 560 35 percent Over 560 50 percent 27.7.2. If the need for leave is due to the employee’s own serious health condition, as defined in the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA), the certification requirement will comply with the provisions of these Acts. 27.8. Jury Duty Leave 27.8.1. Any full-time employee, including probationary, who is called for jury duty shall be entitled to his or her regular pay for those hours of absence due to performance of jury duty for a period up to twenty-two (22) working days. 27.8.2. Prior to An employee serving jury duty service, each employee must complete a time off request through OC San’s timesheet system and provide a copy of obtain an attendance slip from the summonscourt to be submitted to his or hertheir supervisor with their timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.8.3. Employees who work other than the day shift who are called for jury duty will be considered on day shift for the duration of their jury service for purposes of this provision. If a portion of that shift should fall on a weekend or other day the employee is not required to be present in court, the employee will be expected to work. 27.8.4. A copy of the jury notice must be provided to the employee’s supervisor. Employees must report for work during their regularly scheduled work shift when they are relieved from jury duty, unless there is less than one-half (½) of their regular shift remaining. 27.9. Witness Leave 27.9.1. Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses, which subpoena compels his/her presence as a witness, except in a 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 to the time necessary to comply with such subpoena, provided any fees received for such service, exclusive of mileage, are submitted to OC San for deposit in the General Fund of OC San. 27.9.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one (1) hour or more prior to and/or upon completion of each day’s service, exclusive of travel time. 27.10. Military Leave 27.10.1.A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave- of-absence and the date of anticipated return. A copy of the orders requiring such military service will be submitted with the request. 27.10.2.Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity Local 501 MOU July 1, 2022 to June 30, 2025 Page 11 Page 11 is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.11. Bereavement Leave 27.11.1. Any full-time employee, whether probationary or regular, will receive a maximumup to five (5) days of bereavement leave, thirty-six (36) hours of which will be paid time, for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., personal leave, compensatory time off) in order to be paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee’s father, step-father, father- in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six (6) months is not grievable or otherwise subject to appeal. ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of OC San to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees will not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2. Using the prescribed forms, approved by OC San 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A request for leaveLeave of absence without payAbsence Request 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition will be required to use all accruals before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one (1) day. 28.3.2. Personal leave accruals may be used for the care of the employee’s father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, or a child to whom the employee stands in loco parentis, 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: Local 501 MOU July 1, 2022 to June 30, 2025 Page 12 Page 12 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee’s father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, registered domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild, grandparent, foster parent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4. The employee’s own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee’s family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and will run concurrently with FMLA Leave. 28.4.2.1.1 Employees are limited to one (1) “designated person” per rolling 12-month period. 28.4.2.2 CFRA Leave may not be used for 1) an employee’s incapacity due to pregnancy, or 2) 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, OC San requests thirty (30) days’ advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with the Department of Labor (DOL) regulations. 28.5.2.2. As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’s attending physician in accordance with Department of Labor (DOL) regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMLA and/or CFRA Leave, OC San 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 Local 501 MOU July 1, 2022 to June 30, 2025 Page 13 Page 13 28.5.4.1. Upon expiration of FMLA and/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 OC San’s obligation to continue health and dental or other benefits will cease. 28.5.5. OC San Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave. Married employees will be limited to a combined total of twelve (12) weeks FMLA or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28.5.6.28.5.5. General Leave 28.5.6.1.28.5.5.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by OC San management to attend to personal matters or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2.28.5.5.2. During a general leave-of-absence, the employee will be required to pay both OC San’s and the employee’s share of medical and dental premiums. 28.5.6.3.28.5.5.3. 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. 28.5.7.28.5.6. Return to Work Policy 28.5.7.1.28.5.6.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2.28.5.6.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3.28.5.6.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee will be re-classified as medically disqualified and not permitted to work. Thereafter, the employee will be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.5.8.28.5.7. Bridge of Service 28.5.8.1.28.5.7.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within OC San within one (1) year, OC San will bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.5.9.28.5.8. Failure to Return to Work 28.5.9.1.28.5.8.1. If, upon the expiration of FMLA and/or CFRA Leave, or any OC San-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 OC San’s intent to implement an Local 501 MOU July 1, 2022 to June 30, 2025 Page 14 Page 14 automatic resignation. 28.5.10.28.5.9. Compliance with Law 28.5.10.1.28.5.9.1. These leave-of-absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law will govern. ARTICLE 29. CLASSIFICATION STUDIES 29.1. An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. OC San’s management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.1.1. The findings of the Human Resources Department are final and not subject to the appeal, problem-solving or grievance process. 29.1.2. 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 OC San’s Board of Directors. The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action by the Board of Directors prior to implementation. In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.2. Y-Rating 29.2.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position will remain unchanged. 29.2.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay. 29.2.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.2.4. Career Change – Operator-in-Training: Y-rating will occur when an existing employee is selected as a candidate for an Operator-in-Training classification when the employee’s hourly rate is higher than the applicable hourly rate for the Operator-in-Training classification. The Y-rating shall begin with the effective date of the new classification and continue for eighteen (18) months. The employee must obtain a Grade I Plant Operator certificate within this eighteen (18) month period. The employee will serve a probationary period for the first six (6) months of this eighteen (18) month period. If the employee does not obtain a Grade I Plant Operator certificate or does not pass probation, the employee will be returned to his/her prior position or an equivalent position. 29.2.5. Career Change – Power Plant Operator I: Y-rating will occur when an existing employee is selected as a candidate for a Power Plant Operator I classification when the employee’s hourly rate is higher than the applicable hourly rate for the Power Plant Operator I classification. The Y-rating shall begin with the effective date of the new classification and continue for twenty-four (24) months. The employee will serve a probationary period for the first six (6) months of this twenty-four (24) month period. If the employee does not pass probation, the employee will be returned to his/her prior position or an equivalent position. 29.3. Reopener: OC San and Local 501 agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. Local 501 MOU July 1, 2022 to June 30, 2025 Page 15 Page 15 ARTICLE 30. DRIVER'S LICENSE 30.1. Employees who are required by OC San to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is thus unable to perform his/her regular duties and responsibilities notifies OC San 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 OC San’s management discretion. 30.3. OC San will continue to pay the license renewals and physical examination costs of Class A &and B licenses that are specifically required by OC San. ARTICLE 31. LAYOFF PROCEDURE 31.1. Nothing herein will be construed to require OC San to fill vacant, budgeted positions nor to prohibit OC San from eliminating vacant positions from the budget. OC San 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 OC San’s management, personnel reductions are necessary, layoff order and recall lists will be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. Local 501 and employees subject to layoff will be provided with at least two (2) weeks notification in writing whenever possible. 31.3. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resources Department within five (5) days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged, except that it may not exceed the top of the range for the lower level classification. 31.4. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two (2) years from the date of layoff. Individuals will be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer will be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers will have his/her name removed from the list. 31.5. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety, or that of others, OC San 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 OC San’s time and at OC San’s expense. An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position. This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment Local 501 MOU July 1, 2022 to June 30, 2025 Page 16 Page 16 in the position. ARTICLE 34. MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for OC San business will be reimbursed at the current IRS rate. ARTICLE 35. ACTING PAY 35.1. Employees who are assigned by OC San’s management to perform the duties of a budgeted position at a higher level for a period of at least forty (40) consecutive hours in a pay period will be eligible for a one (1) step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with hour forty-one (41) and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the pre- approval of the employee’s Department Director and the Director of Human Resources, or designee(s). The forty (40) hour eligibility period may be waived at the discretion of the General Manager. 35.2. Substitution Pay 35.2.1. Employees in the Operations and Maintenance Departments who are assigned by OC San’s management to perform the duties of an absent Supervisor shall be eligible for Substitution Pay which shall begin with the first hour of assignment. 35.3. Operations 35.3.1. If a Lead Plant Operator or Senior Plant Operator is assigned to perform the work of an Operations Supervisor because of the absence of the regularly assigned Operations Supervisor and the unavailability of an alternate Operations Supervisor for an entire shift, the Lead Plant Operator or Senior Plant Operator will be paid equal to a one (1) step salary increase or the first step of the Operations Supervisor pay range, whichever is greater. 35.4. Maintenance 35.4.1. If an employee in any of the “Lead” classifications is assigned to perform the work of a Maintenance Supervisor because of the absence of the regularly assigned Maintenance Supervisor and the unavailability of an alternate Maintenance Supervisor for a period of at least two (2) weeks, the “Lead” worker will be paid equal to a one (1) step salary increase or the first step of the Maintenance Supervisor pay range, whichever is greater. ARTICLE 36. PERFORMANCE REVIEWS (This Article intentionally left blank. Information related to performance reviews is included in Article 13.) ARTICLE 37. PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his/her file current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. BULLETIN BOARDS 38.1. Local 501 may use the bulletin boards located at Plant 1 (10844 Ellis Avenue, Fountain Valley, CA 92708) and Plant 2 (22212 Brookhurst Street, Huntington Beach, CA 92646) which are designated for use by employee groups to post notices to OC San employees provided that: (a) no controversial matter which is critical or derogatory of OC San, its employees, officers or Directors may be posted; Local 501 MOU July 1, 2022 to June 30, 2025 Page 17 Page 17 (b) nothing posted by OC San may be removed; (c) Local 501 will remove its notices after a reasonable length of time; and (d) only a reasonable number of notices will be posted. ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of six (6) employees covered by this Agreement and appointed by 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. Local 501 will provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer process. Release time will be limited exclusively to the six (6) employees. The release time will be granted provided that the needs of OC San permit the time away from assigned work. ARTICLE 40. USE OF OC SAN FACILITIES 40.1. OC San facilities may be used by Local 501 with prior notice to the Director of Human Resources, or designee, for the purpose of holding meetings, to the extent that such use does not interfere with normal OC San operations. Local 501 agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. SCOPE OF BARGAINING 41.1. OC San and Local 501 acknowledge that during the negotiations which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore, the OC San and Local 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 OC San or Local 501 declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting will be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.2. Review the position of the parties in a final effort to reach agreement on a memoranda of understanding, and 42.3. If the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 42.4. Impasse procedures are: 42.4.1. Mediation: If the parties mutually agree to submit the dispute to the State Mediation and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation, nor take any public position at any time concerning the issues. 42.4.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, Local 501 may request that the parties’ differences be submitted to a factfinding panel as soon as practicable. The cost of a fact finder and other mutually incurred costs will be mutually shared by OC San and Local 501. 42.4.3. Board Actions: If the parties fail to resolve the impasse, the dispute will be sent to OC San’s Board of Directors for resolution. Each party will submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. SEVERABILITY Local 501 MOU July 1, 2022 to June 30, 2025 Page 18 Page 18 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 OC San, OC San and Local 501 will meet and confer on the affected Article, Section or Subsection. In such event, all other Articles, Sections or Subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. UNIFORMS 44.1. OC San will provide and maintain twelve (12) uniform pants and shirts, which may include the name of the employee and OC San’s seal, at no cost to appropriate personnel. 44.2. OC San will also provide each field employee with one (1) jacket. OC San will provide for the cleaning of the jacket, and will determine when the jacket needs to be replaced. 44.3. OC San’s management may establish specific appearance guidelines. All employees who are issued uniforms must wear them during the performance of their regular duties. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. 44.4. Employees covered by this AgreementClassifications designated in SOP-102 Personal Protective Equipment (PPE) shall receive an annual voucher for a safety boot allowance in the amount of $2250 at the beginning of each fiscal year. ARTICLE 45. SUBSTANCE ABUSE POLICY 45.1. OC San’s Drug and Alcohol Policy will apply to all Unit members. OC San may adopt or implement rules, regulations and policies to be in compliance with Federal and State laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2. Department of Transportation (DOT) Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San’s Anti- Drug and Alcohol Program. OC San 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. 45.2.2. Any employee promoted, reassigned or transferred into a classification subject to DOT requirements will be required to successfully complete alcohol and controlled substances testing prior to assuming the position. 45.3. OC San’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 46.1. New Employee Orientation 46.1.1. Local 501 will be allowed up to one half-hour each orientation session to communicate with Local 501- represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the Local 501 representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new Local 501-represented classifications. If there are no new hires in the Local 501-represented classifications for a scheduled session, OC San will notify Local 501 as soon as possible in advance of the session. Local 501 MOU July 1, 2022 to June 30, 2025 Page 19 Page 19 46.1.3. Human Resources staff will provide Local 501 with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new Local 501-represented employees within 30 days of hire. 46.1.4. Human Resources staff will provide Local 501 with an electronic copy of the name, home address, personal email address, and personal cell phone number of all Local 501-represented employees at least every 120 days. 46.2. Dues Deductions 46.2.1. OC San will deduct from each regular paycheck and remit to Local 501 the dues, initiation fees and assessments for each employee who authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2.2. OC San will provide Local 501 a quarterly list of the names of employees for whom it has made deductions, the names of new employees, and the names of employees who have terminated. ARTICLE 47. UNION DUES 47.1. Legislative Authority 47.1.1. The parties mutually understand and agree that in accordance with California Government Code Sections 3500, et.seq., all full-time Unit employees represented by the International Union of Operating Engineers, Local 501 (hereinafter “Union”) have the right to join or not join the Union. 47.2. Union Dues 47.2.1. The Human Resources Department shall provide all current employees and any employees hired thereafter with notice advising them that OC San has entered into a memorandum of understanding with the Union, and that all employees within the Bargaining Unit are subject to the Agreement. 47.2.2. The Union shall submit to OC San a certified list of employees of whom to deduct monthly Union Dues from. If an employee’s membership status changes, the Union shall notify OC San via amendment to the certified list. The effective date of Union dues shall begin no later than the first full pay period after receipt of the certified list from the Union. The monetary amount of Union Dues shall be set by the Union. In the event of a change to Union Dues, the Union shall notify OC San of the adjusted amount. 47.2.3. The employee’s earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues authorized. When an employee is in a non-pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In the case of an employee in a non-pay status only during part of the pay period, whose salary is not sufficient to cover the full withholding, no deduction shall be made. In the case of an employee who is receiving catastrophic leave benefits during a pay period, no deductions shall be made. In this connection, all other legal and required deductions (including health care and insurance deductions) have priority over Union dues and services fees. 47.3. Indemnification 47.3.1. The Union shall indemnify, defend and hold OC San harmless against any liability arising from any claims, demands, or other action relating to OC San’s deduction of Union Dues, including claims relating to the Union’s use of monies collected under these provisions. OC San reserves the right to select and direct legal counsel in the case of any challenge to OC San’s deduction of Union Dues, and the Union agrees to pay any attorney, arbitrator or court fees related thereto. ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, OC San agrees it shall not lockout employees in this Unit, and Local 501 agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, Local 501 MOU July 1, 2022 to June 30, 2025 Page 20 Page 20 nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. SHIFT CHANGES 49.1. The shift change provision is intended to provide an opportunity for employees to bid for open positions based on their job knowledge, experience and seniority. An open position is considered an unencumbered position, or vacancy, resulting from a transfer, promotion, separation, or retirement. Shift changes will be handled on the basis of seniority except when OC San can demonstrate a business necessity. 49.2. Relief Operator 49.2.1. When Plant Operators, Senior Plant Operators or Power Plant Operator series are assigned to Relief Operator positions, they will be entitled to $1.75 per hour premium. 49.2.2. Except in emergencies, an employee will be notified of a change in his/her work schedule at least forty-eight (48) hours in advance of such change, preferably seven (7) calendar days in advance of such change. In the event that notice is under forty-eight (48) hours, management will first try to fill vacancy from the overtime list. Failure to fill from the overtime list will result in payment equivalent to call back pay in addition to any pay received from the shift worked for the Relief Operator. 49.2.3. It will be the intent of Management that relief employees will receive two (2) consecutive days off and will only be subject to split days off when schedule changes occur. 49.3. Shift change-bidding procedure 49.3.1. OC San will mail (email is acceptable) a Shift Change Request Form to employees in appropriate classifications every six (6) months. Any employee who wishes to be assigned to the same or a different shift, and who is qualified for that shift, may indicate his/her preference for reassignment on the Shift Change Request Form. The Shift Change Request Form must be returned within thirty (30) days for an employee to be placed on a shift bid list. The list of requests will be used for a period of six (6) months to fill vacant positions. A new employee or a promoted employee may request through the Human Resources Department to be added to the current list within two (2) weeks of his/her start date (new employee) or of being notified of the promotion. 49.3.2. When OC San intends to fill an open position, the following steps will be followed: 49.3.2.1. OC San will notify the most senior employee on the Shift Change Request list of the availability of the open position; however, OC San may also notify the employee that his/her work location may not be changed in accordance with Section 17.2. OC San agrees that it will verbally notify the employee about the plant connected with the shift. 49.3.2.2. Within two (2) business days of the shift change offer, the employee must notify OC San in writing (email is acceptable) of his/her decision to accept or reject the position. 49.3.2.3. If the most senior employee rejects the position, the position will be offered to the next most senior employee on the list. 49.3.2.4. The process will be repeated until the position is filled or the list is exhausted. 49.3.3. If an employee declines a shift change offer, or does not notify the Human Resources Department within the two (2) business days, his/her name will remain on the list unless they request in writing to have it removed. An employee who accepts a shift change offer will be notified of the effective date of the shift change within seven (7) business days. 49.3.4. When an employee is awarded a shift bid, the employee shall begin the new shift within 30 days of accepting the bid. The 30 days may be extended if the shift change would interfere with the initial training of a newly hired Power Plant Operator. Local 501 MOU July 1, 2022 to June 30, 2025 Page 21 Page 21 49.4. Requests for urgency transfer 49.4.1. On occasion, an employee may wish to initiate a transfer to a different shift or plant in response to a personal situation beyond his/her immediate control. Management will make a reasonable effort to accommodate such requests, considering the operational needs of OC San, 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 OC San, the employee will have the option of remaining in the position unless his/her presence would pose a threat to the safety and welfare of others. 49.4.3. Transfer requests for non-medically related reasons will be considered only when the health or well being of the employee or a member of his/her immediate family is involved. In such events, the transfer would normally be of a temporary nature and limited to the duration of the emergency. 49.4.4. Employees who wish to submit a Request for Transfer must do so in writing to their supervisor. The request should contain sufficient information to allow full consideration of the nature of the emergency or medical condition, and include medical documentation. ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all Unit members. ARTICLE 51. RESIGNATION 51.1. Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving. OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written termination of employment with OC San 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. ARTICLE 52. OPERATOR CERTIFICATION 52.1. All employees assigned to the Lead Plant Operator, Senior Plant Operator, Plant Operator or Operator- in-Training classifications will comply with the certification requirements of Chapter 4, Title 23, Subchapter 14 of the California Administrative Code. Failure to maintain a valid certificate will be grounds for dismissal. This provision will not be subject to the Grievance Procedure. 52.2. OC San will notify the Office of Operator Certification in writing within thirty (30) days of a final disciplinary action resulting in suspension, demotion or discharge of a certified operator if the discipline is the result of commission of any of the acts defined as grounds for discipline within the Operator Certification Regulations. 52.3. As a condition of employment, newly hired Operator-in-Training employees who do not possess a Certificate of Competence will apply for an Operator-in-Training Certificate and pay any applicable fee to the State Water Resources Control Board and submit proof of such application to the Human Resources Department within ten (10) business days of employment. Operators-in-Training who do not receive their Grade I Certificate within three (3) years from their date of hire will be released from 52.3. OC San’s employment. OC San agrees to continue its current policy of reimbursing Operations and Maintenance employees for required certifications upon receiving a passing score. ARTICLE 53. OPERATOR ROTATIONS 53.1 All employees assigned to the Lead Plant Operator, Senior Plant Operator, Plant Operator or Operator-in-Training classifications will be subject to Plant Operator Process Area and Plant Rotation Programs as developed. Local 501 MOU July 1, 2022 to June 30, 2025 Page 22 Page 22 SIGNATURE PAGE 2025 - 2028 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:____________________________ 2022 - 2025 - 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE GROUP Executed: _ _ LOCAL 501 ORANGE COUNTY SANITATION DISTRICT Edward J. Curly, Business Manager and General Vice President Laura Drottz Kalty, Lead Negotiator Thomas O’Mahar, President Celia ChandlerLaura Maravilla, Director of Human Resources Deric Barnes, Business RepresentativeVice President, Director of Public Employees Laura MaravillaThys DeVries, Human Resources & Risk Manager Richard BartowReisee Salamero, Business Representative Andrew Nau, Human Resources Supervisor Local 501 MOU July 1, 2022 to June 30, 2025 Page 23 Page 23 _ _ David Collett Luis Gasca, Shop Steward _ _ Janine Aguilar, Human Resources Supervisor Rick Mirolla, Shop Steward Thys DeVriesStephanie Barron, Principal Human Resources Analyst Lia TogiaBrett Beutler, Shop Steward Stephanie Barron, Senior Human Resources Analyst Tim Hopkins, Shop Steward Jason Biedermann, Shop Steward Tracey MurphyMike Rose, Shop Steward Robert Solis, Shop Steward Luis Gasca, Shop Steward Local 501 MOU July 1, 2022 to June 30, 2025 Page 24 Page 24 EXHIBIT A LOCAL 501 - OPERATIONS AND MAINTENANCE UNIT Effective Effective Effective 1-Jul-22 14-Jul-23 12-Jul-24 Classification Pay Grade MIN MAX MIN MAX MIN MAX Automotive/Heavy Equipmt Technician LOC67 Electrical Technician I LOC65 Electrical Technician II LOC71 Facilities Worker LOC62 Instrumentation Technician I LOC65 Instrumentation Technician II LOC71 Lead Electrical Technician LOC75 Lead Facilities Worker LOC66 Lead Instrumentation Technician LOC75 Lead Mechanic LOC72 Lead Plant Operator LOC75 Lead Power Plant Operator LOC75 Machinist LOC68 Maintenance Worker LOC60 Mechanic LOC62 Mobile Crane Operator LOC67 Operator-In-Training LOC58 Plant Operator LOC66 Power Plant Operator I LOC66 Power Plant Operator II LOC71 Reliability Maintenance Technician LOC75 Senior Mechanic LOC68 Senior Plant Operator LOC71 Welder/Fabricator LOC67 $42.25 $51.36 $40.23 $48.87 $46.61 $56.67 $37.36 $45.41 $40.23 $48.87 $46.61 $56.67 $51.48 $62.55 $41.24 $50.13 $51.48 $62.55 $47.78 $58.09 $51.48 $62.55 $51.48 $62.55 $43.28 $52.62 $35.56 $43.22 $37.36 $45.41 $42.25 $51.36 $33.82 $41.12 $41.24 $50.13 $41.24 $50.13 $46.61 $56.67 $51.48 $62.55 $43.28 $52.62 $46.61 $56.67 $42.25 $51.36 $43.94 $53.41 $45.48 $55.28 $41.84 $50.82 $43.30 $52.60 $48.47 $58.94 $50.17 $61.00 $38.85 $47.23 $40.21 $48.88 $41.84 $50.82 $43.30 $52.60 $48.47 $58.94 $50.17 $61.00 $53.54 $65.05 $55.41 $67.33 $42.89 $52.14 $44.39 $53.96 $53.54 $65.05 $55.41 $67.33 $49.69 $60.41 $51.43 $62.52 $53.54 $65.05 $55.41 $67.33 $53.54 $65.05 $55.41 $67.33 $45.01 $54.72 $46.59 $56.64 $36.98 $44.95 $38.27 $46.52 $38.85 $47.23 $40.21 $48.88 $43.94 $53.41 $45.48 $55.28 $35.17 42.76 $36.40 $44.26 $42.89 $52.14 $44.39 $53.96 $42.89 $52.14 $44.39 $53.96 $48.47 $58.94 $50.17 $61.00 $53.54 $65.05 $55.41 $67.33 $45.01 $54.72 $46.59 $56.64 $48.47 $58.94 $50.17 $61.00 $43.94 $53.41 $45.48 $55.28 Local 501 MOU July 1, 2022 to June 30, 2025 Page 25 Page 25 STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4410 Agenda Date:7/23/2025 Agenda Item No:4. FROM:Laura Drottz Kalty, Chief Negotiator Originator: Laura Maravilla, Director of Human Resources SUBJECT: SUCCESSOR MEMORANDA OF UNDERSTANDING FOR THE SUPERVISOR AND PROFESSIONAL MANAGEMENT GROUPS ..end CHIEF NEGOTIATOR'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-08, entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs) between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the two (2) Supervisory and Professional Management Group bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (OC San)and the Supervisory and Professional Management Group bargaining units that became effective on July 1,2022,expired on June 30,2025.On September 25,2024,the Board of Directors selected Laura Drottz Kalty of Liebert Cassidy Whitmore to serve as its Chief Negotiator to negotiate successor agreements with all recognized employee organizations.Subsequently,on November 20,2024,the Steering Committee provided Ms. Kalty with negotiating parameters and authority to commence negotiations. The Supervisory and Professional Management Group (SPMG)submitted its initial proposals for successor MOUs on March 17,2025.SPMG and OC San have met and conferred in good faith eight (8) times since receiving the initial proposal. On June 24,2025,OC San and SPMG reached a Tentative Agreement on the terms and conditions of employment for employees represented by SPMG,as set forth in the successor MOUs being presented for final approval and adoption by the OC San Board of Directors. On June 25,2025,the Board of Directors authorized Ms.Kalty to proceed with a three-year contract and salary increases for both SPMG units as follows:4.5%for the first year,4.5%for the second year,and 3.0%for the final year of the contract.This includes corresponding salary range Orange County Sanitation District Printed on 7/16/2025Page 1 of 4 powered by Legistar™ File #:2025-4410 Agenda Date:7/23/2025 Agenda Item No:4. year,and 3.0%for the final year of the contract.This includes corresponding salary range adjustments effective the first full pay period in July for each year of the contract,with the first increase to commence in July 2025. 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 & development PROBLEM The MOUs between OC San and SPMG bargaining units that became effective on July 1,2022, expired on June 30,2025.OC San has a legal duty to bargain in good faith and,upon reaching full and final agreement on successor MOUs with a bargaining group,approval must be obtained from its governing body. PROPOSED SOLUTION Adopt Resolution OC SAN 25-08,entitled,“A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding (MOUs)between the Orange County Sanitation District and the Supervisory and Professional Management Group,for Fiscal Years 2025/2026, 2026/2027 & 2027/2028”. TIMING CONCERNS OC San and SPMG have bargained in good faith and have reached tentative agreement on successor MOUs that shall go into effect July 2025, contingent on Board approval. RAMIFICATIONS OF NOT TAKING ACTION Some of the impacts of not approving successor labor agreements include labor instability,employee morale, and impasse. PRIOR COMMITTEE/BOARD ACTIONS On September 25,2024,the Board of Directors authorized staff to execute an agreement with Ms. Kalty of Liebert Cassidy Whitmore to serve as OC San’s Chief Negotiator.This action was taken pursuant to OC San’s Purchasing Ordinance No. OC SAN-61. In preparation for and during the meet and confer process,the Ms.Kalty 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 Orange County Sanitation District Printed on 7/16/2025Page 2 of 4 powered by Legistar™ File #:2025-4410 Agenda Date:7/23/2025 Agenda Item No:4. The SPMG meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: •March 26, 2025 - Steering Committee and Board Meeting •April 23, 2025 - Steering Committee and Board Meeting •May 28, 2025 - Steering Committee and Board Meeting •June 25, 2025 - Steering Committee and Board Meeting ADDITIONAL INFORMATION The SPMG is the recognized employee organization certified to provide exclusive representation over wages,hours of work,and other terms and conditions of employment for exempt employees in the Supervisor Group and Professional Group bargaining units. There are 301 exempt employees represented by SPMG.The Supervisor Group consists of 64 employees,and the Professional Group consists of 237 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 authorization,OC San reached a full tentative agreement with SPMG on June 24, 2025,including a three-year contract with a 4.5%salary increase in the first year,a 4.5%salary increase in the second year,and a 3.0%salary increase for the final year of the contract.SPMG distributed the proposals to their membership for voting and SPMG’s membership ratified the proposals by majority vote in June 2025. 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, 2025. 2.Article 2, Duration: Agreement terminates on June 30, 2028. 3.Article 10, Discipline and Dismissal. Revise language to align with policy: 10.9 Disciplinary actions will be recorded in employee performance reviews. 4.Article 12, Problem Solving Procedure. Revise language to include: 12.1 Counseling and performance appraisals are not subject to the problem solving procedure. 5.Article 13, Salary Adjustments and Compensation: 13.8 Salary Range Adjustments: 13.8.1 Effective the first pay period of July 2025, 4.5% salary range adjustment. 13.8.2 Effective the first pay period of July 2026, 4.5% salary range adjustment. 13.8.3 Effective the first pay period of July 2027, 3.0% salary range adjustment. 13.10 One-Time Lump Sum Payment -Employees hired or promoted into the Group as of the last day of the first full pay period in July 2025 will receive a $1000 one-time lump sum payment.The payment shall not apply to employees hired after the first full pay period following approval and adoption of the agreement. 6.Article 15, Deferred Compensation: 15.1.1 OC San will make a 401(a)plan available to eligible employees to allow for applicable matching OC San contributions.Participating employees shall be responsible for anyOrange County Sanitation District Printed on 7/16/2025Page 3 of 4 powered by Legistar™ File #:2025-4410 Agenda Date:7/23/2025 Agenda Item No:4. matching OC San contributions.Participating employees shall be responsible for any administrative fees associated with this plan. 15.2 Effective the first full pay period in July 2025,employees covered by OCERS Plans B and U and who participate in the deferred compensation plan,are eligible to receive up to a $445 per month OC San matching contribution. 7.Article 27, Leave of Absence with Pay: 27.6 Bereavement Leave. Revise language to align with changes in the law: 27.6.1 Any full-time employee,whether probationary or regular,shall receive up to five (5)days of bereavement leave,thirty-six (36)hours of which will be paid,for the death or funeral of an immediate family member.An employee may use existing accruals (i.e.,sick,vacation,administrative leave,compensatory time off)in order to be paid for up to five (5) days. 27.7 Administrative Leave. 27.7.1 Administrative Leave is provided to FLSA exempt employees who are not eligible for overtime in an effort to recognize that based on the nature of the work and classification, the job and duties may extend beyond regularly scheduled work hours. 27.7.2 Effective the first pay period in July,regular full-time employees in the Group shall be granted sixty (60) hours of Administrative Leave. 8.Article 44, Uniforms. Revise language to include: 44.3 Employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) are eligible to receive a safety boot allowance and shall receive either an annual or bi- annual voucher in the amount of $250 as applicable. In addition to the aforementioned changes,the proposed MOUs include general housekeeping updates to certain articles for purposes of language clarification and to ensure alignment with changes in applicable laws, regulations, and internal administrative procedures. CEQA N/A FINANCIAL CONSIDERATIONS The total cost is $16,108,651 over the term of the agreement. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 25-08 ·Supervisor Group MOU (Redlined) ·Professional Group MOU (Redlined) Orange County Sanitation District Printed on 7/16/2025Page 4 of 4 powered by Legistar™ OC SAN 25-08-1 RESOLUTION NO. OC SAN 25-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING (MOUS) BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE SUPERVISORY AND PROFESSIONAL MANAGEMENT GROUP, FOR FISCAL YEARS 2025/2026, 2026/2027 & 2027/2028 WHEREAS, on July 27, 2022, the Board of Directors (“Directors”) of the Orange County Sanitation District (OC San) 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, 2022 through June 30, 2025 (“2022 MOUs”). WHEREAS, prior to the expiration of the 2022 MOUs, on February 17, 2025, SPMG requested to meet and confer regarding successor MOUs. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of SPMG have met and conferred with the representatives of OC San 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 during the first full pay period in July 2025; and WHEREAS, the parties have modified the 2025 MOUs between OC San and SPMG to reflect the parties’ understanding regarding certain terms and conditions, which by this reference are made a part of this resolution as if set forth herein. 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 OC San and SPMG for the contract period of July 1, 2025 through June 30, 2028, attached hereto as Exhibit A is hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with SPMG for the period of July 1, 2025, through June 30, 2028, in a form approved by General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 23, 2025. _______________________________________ Ryan P. Gallagher Board Chairman OC SAN 25-08-2 ATTEST: _______________________________________ Kelly A. Lore, MMC Clerk of the Board OC SAN 25-08-3 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. OC SAN 25-08 was passed and adopted at a regular meeting of said Board on the 23rd day of July 2025, 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 23rd day of July 2025. Kelly A. Lore. MMC Clerk of the Board of Directors Orange County Sanitation District 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP July 1, 20225 through June 30, 20258 Page ii 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION .............................................................................................................................1 ARTICLE 2. - DURATION....................................................................................................................................1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................1 ARTICLE 4. - GROUP ACCESS .........................................................................................................................1 ARTICLE 5. - GROUP RIGHTS ...........................................................................................................................2 ARTICLE 6. - OC SAN RIGHTS ..........................................................................................................................2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT .................................................................................2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT ......................................................................................2 ARTICLE 9. - SAFETY ........................................................................................................................................3 ARTICLE 10. - DISCIPLINE AND DISMISSAL .....................................................................................................3 ARTICLE 11. - GRIEVANCE PROCEDURE .........................................................................................................5 11.4.1. STEP 1 ..................................................................................................................................................... 5 11.4.2. STEP 2 ..................................................................................................................................................... 5 11.4.4. STEP 3 ..................................................................................................................................................... 5 11.4.5. STEP 4 ..................................................................................................................................................... 6 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ...........................................................................................6 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ....................................................................6 13.3. MERIT PAY ............................................................................................................................................... 7 13.4. PERFORMANCE MANAGEMENT PROGRAM ................................................................................................... 7 13.5. DEVELOPMENT PAY ................................................................................................................................... 7 13.8. SALARY RANGE ADJUSTMENTS .................................................................................................................. 8 13.9. INVESTMENT INCENTIVE SALARY (IIS) ........................................................................................................ 8 13.10. ONE-TIME LUMP SUM PAYMENT ................................................................................................................ 8 ARTICLE 14. - SEVERANCE PAY ........................................................................................................................8 ARTICLE 15. - DEFERRED COMPENSATION ....................................................................................................8 ARTICLE 16. - HOLIDAYS ....................................................................................................................................9 16.2. FLOATING HOLIDAY ................................................................................................................................... 9 ARTICLE 17. - HOURS OF WORK .................................................................................................................... 10 ARTICLE 18. ...................................................................................................................................................... 10 ARTICLE 19. ................................................................................................................................................... 10 ARTICLE 20. - INSURANCE .............................................................................................................................. 10 20.3. MEDICAL INSURANCE ............................................................................................................................... 11 20.8. GROUP INSURANCE PREMIUMS ................................................................................................................ 11 20.9. LIFE INSURANCE...................................................................................................................................... 11 20.10 SHORT TERM DISABILITY ………………………………………………………………………………………..11 20.11. LONG TERM DISABILITY ........................................................................................................................... 11 20.12. DENTAL INSURANCE ................................................................................................................................ 12 20.13. VISION INSURANCE .................................................................................................................................. 12 20.14 RETIRING EMPLOYEES …………………………………………………………………………………………12 20.15. HEALTH REIMBURSEMENT ARRANGEMENT ................................................................................................ 12 Page iii 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 21. - REIMBURSEMENT ACCOUNT................................................................................................. 13 21.2. MEDICAL REIMBURSEMENT ACCOUNT ...................................................................................................... 13 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT ............................................................................................... 13 ARTICLE 22. - EXTRAORDINARY SERVICES COMPENSATION .................................................................. 14 ARTICLE 23. - PROBATIONARY PERIOD ....................................................................................................... 14 ARTICLE 24. - PROMOTIONS ........................................................................................................................... 15 ARTICLE 25. - RETIREMENT ............................................................................................................................ 15 25.1.1. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21, 1979 AND BEFORE OCTOBER 1, 2010 ........................... 16 25.1.2. EMPLOYEES HIRED ON OR AFTER OCTOBER 1, 2010 AND BEFORE JANUARY 1, 2013 .................................. 16 25.1.3. EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 .................................................................................. 16 ARTICLE 26. - SHIFT DIFFERENTIAL .............................................................................................................. 16 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY ............................................................................................ 16 27.1. VACATION LEAVE .................................................................................................................................... 16 27.2. SICK LEAVE ............................................................................................................................................ 17 27.3. JURY DUTY LEAVE .................................................................................................................................. 19 27.4. WITNESS LEAVE ...................................................................................................................................... 19 27.5. MILITARY LEAVE ...................................................................................................................................... 20 27.6. BEREAVEMENT LEAVE ............................................................................................................................. 20 27.7. ADMINISTRATIVE LEAVE ........................................................................................................................... 21 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY .................................................................................... 21 28.3. SUBSTITUTION OF PAID LEAVE. ................................................................................................................ 22 28.4. PERMISSIBLE USES ................................................................................................................................. 22 28.5. GENERAL PROVISIONS ............................................................................................................................ 23 ARTICLE 29. - CLASSIFICATION STUDIES ..................................................................................................... 25 29.3. Y-RATING ............................................................................................................................................... 25 ARTICLE 30. - DRIVER’S LICENSE .................................................................................................................. 26 ARTICLE 31. - LAYOFF PROCEDURE ............................................................................................................. 26 ARTICLE 32. - LIGHT DUTY .............................................................................................................................. 27 ARTICLE 33. - MEDICAL EXAMINATION ......................................................................................................... 27 ARTICLE 34. - MILEAGE ALLOWANCE ........................................................................................................... 27 ARTICLE 35. - ACTING PAY ............................................................................................................................. 27 ARTICLE 36. ...................................................................................................................................................... 27 ARTICLE 37. - PERSONNEL FILES .................................................................................................................. 27 ARTICLE 38. - BULLETIN BOARDS ................................................................................................................. 28 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................ 28 ARTICLE 40. - USE OF OC SAN FACILITIES .................................................................................................. 28 ARTICLE 41. - SCOPE OF BARGAINING ......................................................................................................... 28 ARTICLE 42. - IMPASSE PROCEDURES ......................................................................................................... 28 42.2. IMPASSE PROCEDURES ........................................................................................................................... 28 ARTICLE 43. - SEVERABILITY ......................................................................................................................... 29 ARTICLE 44. - UNIFORMS ................................................................................................................................ 29 Page iv 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 45. - SUBSTANCE ABUSE POLICY ................................................................................................. 29 45.2. DEPARTMENT OF TRANSPORTATION (DOT) REGULATIONS ........................................................................ 29 45.3. OC SAN'S SUBSTANCE ABUSE POLICY ..................................................................................................... 30 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS ............................................... 30 ARTICLE 47. - MAINTENANCE OF MEMBERSHIP ......................................................................................... 30 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES .............................................................................. 31 ARTICLE 49. ...................................................................................................................................................... 31 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ............................................................. 31 ARTICLE 51. - RESIGNATION .......................................................................................................................... 31 ARTICLE 52. ...................................................................................................................................................... 31 SIGNATURE PAGE .............................................................................................................................................. 32 ARTICLE 1. - RECOGNITION .............................................................................................................................1 ARTICLE 2. - DURATION....................................................................................................................................1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................1 ARTICLE 4. - GROUP ACCESS .........................................................................................................................1 ARTICLE 5. - GROUP RIGHTS ...........................................................................................................................2 ARTICLE 6. - OC SAN RIGHTS ..........................................................................................................................2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT .................................................................................2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT ......................................................................................2 ARTICLE 9. - SAFETY ........................................................................................................................................3 ARTICLE 10. - DISCIPLINE AND DISMISSAL .....................................................................................................3 ARTICLE 11. - GRIEVANCE PROCEDURE .........................................................................................................5 11.4.1. STEP 1 ..................................................................................................................................................... 5 11.4.2. STEP 2 ..................................................................................................................................................... 5 11.4.4. STEP 3 ..................................................................................................................................................... 5 11.4.5. STEP 4 ..................................................................................................................................................... 6 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ...........................................................................................6 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ....................................................................7 13.3. MERIT PAY ............................................................................................................................................... 7 13.4. PERFORMANCE MANAGEMENT PROGRAM ................................................................................................... 7 13.5. DEVELOPMENT PAY ................................................................................................................................... 7 13.8. SALARY RANGE ADJUSTMENTS .................................................................................................................. 8 13.9. INVESTMENT INCENTIVE SALARY (IIS) ........................................................................................................ 8 13.10. ONE-TIME LUMP SUM PAYMENT ................................................................................................................ 8 ARTICLE 14. - SEVERANCE PAY ........................................................................................................................8 ARTICLE 15. - DEFERRED COMPENSATION ....................................................................................................8 ARTICLE 16. - HOLIDAYS ....................................................................................................................................9 16.2. FLOATING HOLIDAY ................................................................................................................................... 9 ARTICLE 17. - HOURS OF WORK .................................................................................................................... 10 ARTICLE 18. ...................................................................................................................................................... 10 ARTICLE 19. ............................................................................................................................................... 1110 ARTICLE 20. - INSURANCE .......................................................................................................................... 1110 Page v 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 20.3. MEDICAL INSURANCE ............................................................................................................................... 11 20.8. GROUP INSURANCE PREMIUMS ................................................................................................................ 11 20.9. LIFE INSURANCE...................................................................................................................................... 11 20.10 SHORT TERM DISABILITY ………………………………………………………………………………………..11 20.11. LONG TERM DISABILITY ....................................................................................................................... 1211 20.12. DENTAL INSURANCE ................................................................................................................................ 12 20.13. VISION INSURANCE .................................................................................................................................. 12 20.14 RETIRING EMPLOYEES …………………………………………………………………………………………12 20.15. HEALTH REIMBURSEMENT ARRANGEMENT ................................................................................................ 12 ARTICLE 21. - REIMBURSEMENT ACCOUNT................................................................................................. 13 21.2. MEDICAL REIMBURSEMENT ACCOUNT .................................................................................................. 1413 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT ........................................................................................... 1413 ARTICLE 22. - EXTRAORDINARY SERVICES COMPENSATION .............................................................. 1413 ARTICLE 23. - PROBATIONARY PERIOD ................................................................................................... 1514 ARTICLE 24. - PROMOTIONS ........................................................................................................................... 15 ARTICLE 25. - RETIREMENT ........................................................................................................................ 1615 25.1.1. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21, 1979 AND BEFORE OCTOBER 1, 2010 ........................... 16 25.1.2. EMPLOYEES HIRED ON OR AFTER OCTOBER 1, 2010 AND BEFORE JANUARY 1, 2013 .................................. 16 25.1.3. EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 .................................................................................. 16 ARTICLE 26. - SHIFT DIFFERENTIAL .......................................................................................................... 1716 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY ........................................................................................ 1716 27.1. VACATION LEAVE ................................................................................................................................ 1716 27.2. SICK LEAVE ........................................................................................................................................ 1817 27.3. JURY DUTY LEAVE .............................................................................................................................. 2019 27.4. WITNESS LEAVE ...................................................................................................................................... 20 27.5. MILITARY LEAVE .................................................................................................................................. 2120 27.6. BEREAVEMENT LEAVE ......................................................................................................................... 2120 27.7. ADMINISTRATIVE LEAVE ........................................................................................................................... 21 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY .................................................................................... 22 28.3. SUBSTITUTION OF PAID LEAVE. ................................................................................................................ 22 28.4. PERMISSIBLE USES ............................................................................................................................. 2322 28.5. GENERAL PROVISIONS ............................................................................................................................ 23 ARTICLE 29. - CLASSIFICATION STUDIES ................................................................................................. 2625 29.3. Y-RATING ........................................................................................................................................... 2726 ARTICLE 30. - DRIVER’S LICENSE .............................................................................................................. 2726 ARTICLE 31. - LAYOFF PROCEDURE ............................................................................................................. 27 ARTICLE 32. - LIGHT DUTY .......................................................................................................................... 2827 ARTICLE 33. - MEDICAL EXAMINATION ..................................................................................................... 2827 ARTICLE 34. - MILEAGE ALLOWANCE ....................................................................................................... 2827 ARTICLE 35. - ACTING PAY ............................................................................................................................. 28 ARTICLE 36. .................................................................................................................................................. 2928 Page vi 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 37. - PERSONNEL FILES .............................................................................................................. 2928 ARTICLE 38. - BULLETIN BOARDS ............................................................................................................. 2928 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS .................................................... 2928 ARTICLE 40. - USE OF OC SAN FACILITIES .............................................................................................. 2928 ARTICLE 41. - SCOPE OF BARGAINING ......................................................................................................... 29 ARTICLE 42. - IMPASSE PROCEDURES ..................................................................................................... 3029 42.2. IMPASSE PROCEDURES ....................................................................................................................... 3029 ARTICLE 43. - SEVERABILITY ..................................................................................................................... 3029 ARTICLE 44. - UNIFORMS ................................................................................................................................ 30 ARTICLE 45. - SUBSTANCE ABUSE POLICY ............................................................................................. 3130 45.2. DEPARTMENT OF TRANSPORTATION (DOT) REGULATIONS ........................................................................ 29 45.3. OC SAN'S SUBSTANCE ABUSE POLICY ..................................................................................................... 30 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS ........................................... 3130 ARTICLE 47. - MAINTENANCE OF MEMBERSHIP ..................................................................................... 3231 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES .......................................................................... 3231 ARTICLE 49. .................................................................................................................................................. 3231 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ......................................................... 3231 ARTICLE 51. - RESIGNATION .......................................................................................................................... 32 ARTICLE 52. .................................................................................................................................................. 3332 SIGNATURE PAGE .......................................................................................................................................... 3433 APPENDIX A ..................................................................................................................................................... 33 Supervisor Group MOU Page 1 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed, of the Orange County Sanitation District’s (OC San) Boards of Directors, OC San's authorized representatives have met and conferred in good faith with representatives of the Supervisor Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Supervisor Group accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by the Supervisor Group as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1. This Agreement, effective July 1, 20225, is entered into between the Orange County Sanitation District, referred to hereinafter as the "OC San", and the Supervisor Group, referred to hereinafter as "Group”, as a mutual recommendation to the Board of Directors of OC San of those wages, hours of work, and terms and conditions of employment. ARTICLE 2. - DURATION 2.1. This Agreement will be binding on OC San and the Group when approved and adopted by OC San’s Board of Directors. This Agreement will terminate on June 30, 20258. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions (EERR), Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1. The Group will submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. - GROUP ACCESS 4.1. A Group representative will have access to OC San 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 OC San operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated confidential or secure. Supervisor Group MOU Page 2 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 5. - GROUP RIGHTS 5.1. The Group may designate up to five (5) employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to OC San 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 OC San nor the Group will interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 6. – OC SAN RIGHTS 6.1. OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2. OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. OC San exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude the Group from appealing or meeting and conferring the practical consequences or impacts that OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1. There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, or military or veteran status, reproductive health decision making or any other lawfully protected class. To the extent required by law or by OC San's rules or regulations, this provision of the Agreement will be applied to all members of the Group without regard to any protected classification. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 8.1. OC San 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 Supervisor Group MOU Page 3 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 smoking and the potentially harmful effect it has on the health and well being of OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1. It is the duty of OC San 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 OC San, and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Group: verbal reprimand; written reprimand; suspension without pay; reduction in pay; demotion to a classification with a lower pay grade, or dismissal. 10.2. Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay, reduction in pay, demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail, which will be the date of issuance. 10.5. The Notice of Intent will contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action; (3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline, or to an OC San management representative with authority to make an effective recommendation on the proposed action; the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action, the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San 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, OC San may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies & Procedures Manual. Supervisor Group MOU Page 4 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no-call/no- show” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.7.1. Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered “no call/no show” and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post-disciplinary hearing. The request must be submitted to the Assistant General Manager or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date will be the first business day following the final day of the suspension). The Director of Human Resources, or designee, will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. 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. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action documentation, except verbal reprimand documentation, will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor’s employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four (24) months from implementation there have been no recurrences of similar incidents, the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee’s personnel file twenty-four (24) months subsequent to the date of the issuance, provided that there has been no recurrence of a similar incident during the period. If the Human Resources Department agrees to remove the written reprimand documentation from an employee’s personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) shall not be considered discipline. Supervisor Group MOU Page 5 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 OC San by an individual employee within the Group or by the Group. OC San 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 OC San and the Group, be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance, to discuss the issue with the Director of Human Resources, or designee, in an effort to bring about an informal resolution. 11.4. An employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. OC San 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, with a copy provided to the Director of Human Resources or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested; and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Assistant General Manager, or designee, for review and written response. The request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance shall be filed with the Assistant Supervisor Group MOU Page 6 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 (10five (5) days from the date the Step 3 finding was issued. The General Manager, or designee, will respond in writing to the employee within fifteen (15ten (10) days after the date the grievance is received. The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the Group, the Group may designate one (1) employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility. Absence from work will be approved only if it does not cause disruption to OC San operations. However, if the time requested cannot be provided, an alternate time will be arranged. 11.6. Failure of a supervisor, Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it will be considered resolved on the basis of the preceding response. The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the parties. OC San agrees to meet face-to-face with the employee at each step of the grievance procedure at the request of the employee. 11.7. Resolution may be agreed upon at any stage of the grievance process. However, the Group will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of OC San 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. Counseling and performance appraisals are not subject to the problem solving procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor will review the situation or decision, and provide a written response within five (5) days from the date they were notified of the problem. 12.3. If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Human Resources Department within ten (10) days of receipt of the supervisor's decision. Upon request of either party, a meeting will be held to define issues and establish the remedies sought. The employee will be provided a written response within ten (10) days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Human Resources Department is final. Supervisor Group MOU Page 7 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1. Each pay grade is divided into five (5) steps, with an approximate 5.0% difference between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3. Merit Pay 13.3.1. Step Increase Pay – Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2. Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program: The performance management program includes two (2) rating categories (proficient and needs improvement) for performance appraisals. 13.5. Development Pay – Employees under this Agreement are eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education –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 –Eligible employees who obtain or who have obtained an OC San approved certification or license will receive $15.24 per pay period per certificate or license with a maximum of three (3) certificates and/or licenses. 13.5.3. Grade V Pay – Employees who receive Grade V pay in accordance with the applicable OC San 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 Supervisor Group MOU Page 8 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. 13.8.2. Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.8.3. Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.9. Investment Incentive Salary (IIS) 13.9.1. An additional amount of 4% of base salary will be paid to employees hired or promoted into the Group on or before October 16, 2003 in a lump-sum amount each pay period. This provision continues to make employees whole as a result of the Ventura decision. The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In addition, employees hired or promoted into the Group on or before October 16, 2003 will be paid $1250 annually or $48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual, retirement, and termination leave payouts for eligible employees. 13.10. One-Time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 20225 will receive a $1,5000 one-time payment. The payment shall not apply to employees hired after the first full pay period following approval and adoption of the Agreement. ARTICLE 14. - SEVERANCE PAY 14.1. Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee will be notified in writing two (2) weeks prior to the effective separation date. The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time, regular employees will be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2. Employees in limited term or part-time positions, probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION 15.1. Employees may participate in OC San approved deferred compensation plans, subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. Supervisor Group MOU Page 9 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 15.1.1. Effective the first full pay period in July 2022, employeesOC San will make a 401(a) plan available to eligible employees to allow for applicable matching OC San contributions. Participating employees shall be responsible for any administrative fees associated with this plan. 15.2. Employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to a $235 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $445 per month matching OC San contribution. ARTICLE 16. - HOLIDAYS 16.1. The days listed below are observed by OC San 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 employee will be paid at the employee's regular rate of pay for the holiday, and will also receive pay at the rate of one and one half (1.5) times his/her regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay, if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off, the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance in excess of fifty (50) hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty (50). The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.4. Holidays New Year’s Day Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday (refer to section 16.2) 16.2. Floating Holiday: Employees will be granted “Floating Holiday” hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours Supervisor Group MOU Page 10 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 may be utilized in one quarter (.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3. Employees must use the “Floating Holiday” within the year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. Every effort will be made to approve an employee's request for a "Floating Holiday" off providing sufficient notice is given. 16.4. Part-time employees are eligible for holiday benefits on a pro-rata basis as set forth in applicable OC San Policy. ARTICLE 17. - HOURS OF WORK 17.1. The work schedule for full-time employees will be eighty (80) hours per biweekly pay period, normally scheduled in shifts of five (5) eight 8-hour days each week, four (4) nine 9-hour days each week and one (1) additional 8-hour day on alternate weeks (9/80), four (4) ten 10-hour days each week (8/80), or three (3) twelve 12-hour days each week and one (1) additional 8-hour day on alternate weeks (7/80). However, with the approval of the employee’s supervisor, employees may be allowed to flex their schedule within the pay period provided that the business needs, work flow, and customer service needs of OC San 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 OC San premises and perform any work as necessary. 17.2. OC San 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. 17.3. OC San may provide the option of telecommuting, as set forth in the Telecommuting Policy. ARTICLE 18. (This article intentionally left blank) Supervisor Group MOU Page 11 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 ARTICLE 19. (This article intentionally left blank) ARTICLE 20. - INSURANCE 20.1. OC San 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. OC San 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 OC San will contribute 90% of employee only premiums for the HMO medical health plans and 80% of employee only premiums for the PPO and HDHP medical plans. OC San will contribute 80% of the employee +1 dependent and full family premiums for the HMO or, PPO or HDHP medical plans. Any change in insurance rates will be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.5. Regular, part-time employees Part-time employees are eligible for medical insurance benefits on a pro-rata basis as set forth in the applicable OC San Policy. 20.6. The HDHP will be accompanied by a Health Savings Account (HSA) to pay for qualified medical expenses. OC San 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 OC San’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 OC San's aforementioned annual premium cost savings. 20.7. OC San may reopen negotiations at any time during the term of this agreement to address the impact of the Affordable Care Act (ACA). 20.8.20.7. Group Insurance Premiums 20.8.1.20.7.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9.20.8. Life Insurance 20.9.1.20.8.1. OC San will pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.10.20.9. Short Term Disability 20.10.1.20.9.1. OC San will provide a non-work related, short-term disability Supervisor Group MOU Page 12 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. 20.11.20.10. Long Term Disability 20.11.1.20.10.1. OC San will provide a non-work related, long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.11.2.20.10.2. 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 OC San’s long term disability plan contract accessible on the intranet. 20.11.3.20.10.3. 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 OC San paid Long Term Disability may purchase such coverage at their own expense. 20.12.20.11. Dental Insurance 20.12.1.20.11.1. OC San will contribute 80% of employee only and full family premiums for dental insurance. 20.13.20.12. Vision Insurance 20.13.1.20.12.1. OC San will provide a vision insurance plan for regular, full-time employees and eligible dependents. Part-time employees are eligible for vision insurance benefits on a pro-rata basis as set forth in applicable OC San Policy. 20.14.20.13. Retiring Employees 20.14.1. OC San 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 OC San medical plan. 20.14.2. In the event OC San adds additional optional insurance plans, OC San's share of the premium will be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, OC San's share of the premium will be the same as for existing insurance plans as set forth above. 20.14.3.20.13.1. OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by $10 per month for every full year of continuous service up to a maximum of 25 years or $250 per month. Supervisor Group MOU Page 13 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 20.14.4.20.13.2. Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefitted status shall not count toward continuous service. 20.15.20.14. Health Reimbursement Arrangement: OC San will establish a Health Reimbursement Arrangement (HRA) for all employees in the Group, per Internal Revenue Guidance Rev. Rul. 2002-41 and Rev. No.Code Sections 105 and 106 and IRS Notice 2002-45. 20.15.1.20.14.1. All employees of the Group shall be required to contribute uniformly to the HRA according to the following plan design and may not opt out. 20.15.2.20.14.2. All mandatory sick leave payouts shall be contributed to the employee’s HRA according to the provisions in Article 27 – Leave of Absence with Pay, Sections 27.2.5 and 27.2.11. 20.15.3.20.14.3. All mandatory vacation payouts shall be contributed to the employee’s HRA in accordance with Article 27 – Leave of Absence with Pay, Section 27.1.5. 20.15.4.20.14.4. All mandatory compensatory payouts shall be contributed to the employee’s HRA in accordance with Article 16 - Holidays, Section 16.1. 20.15.5.20.14.5. In the event of death while employed at OC San, any compensation as a result of any accrued and unused sick leave, vacation leave, and compensatory leave payouts shall be paid to the employee’s designated beneficiaries. 20.15.6.20.14.6. In the event of death, the employee’s HRA account and all remaining monies within the account shall be transferred to the qualified dependent of record. The qualified dependent of record is a designation defined by IRS rules rather than an employee-chosen beneficiary. In the event there is no qualified dependent of record, all assets in the HRA shall be forfeited and distributed on a non-discriminatory basis to remaining plan participants. 20.15.7.20.14.7. In the event of termination by OC San, any compensation as a result of accrued and unused sick leave, vacation leave, and compensatory leave payouts shall be paid directly to the employee. 20.15.8.20.14.8. OC San shall pay the administrative costs of the HRA plan up to a maximum of $30 per year per employee. Employees shall be responsible for any asset management fees. 20.15.9.20.14.9. Effective the last full pay period in October 2022, OC San will contribute $50 per month to each employee’s HRA account. 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. Supervisor Group MOU Page 14 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 21.2. Medical Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. – EXTRAORDINARY SERVICES COMPENSATION 22.1. Employees in the Group are exempt from the overtime provisions of the Fair Labor Standards Act. However, when services are required beyond what is normally expected of a position in this Group, employees will be eligible to receive additional compensation, as defined herein, for performing extraordinary services. Extraordinary services shall be defined as: 22.1.1. The General Manager declares an emergency. A declaration of an emergency is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11 – Grievance Procedure or Article 12 – Problem Solving Procedure. 22.1.2. The General Manager determines that there exists a critical event. A critical event is defined as work of a prolonged nature; involving non- emergency related services; major special projects; or when a substantial effort must be expended to meet a compliance date or scheduled deadline. The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11 – Grievance Procedure or Article 12 – Problem Solving Procedure. 22.1.3. Written approval of a critical event must be obtained in advance of the work to be performed. The authorization shall set forth the work to be accomplished, the anticipated start and end date and those employees expected to participate in the work. The Department Head, or designee, will be responsible for determining the actual start and end date as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a critical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event, independent from which department they are assigned. 22.2.2. For emergencies, compensation will occur for all hours outside the employee’s regularly scheduled work shift. For critical events, compensation will occur for all hours after an initial 10 hours of Supervisor Group MOU Page 15 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 one-year 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. 23.3. New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.4. An employee may be released during his/her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will” during his/her probationary period). Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. 23.5. Employees who are reassigned or, laterally transferred or have a voluntary job change will serve a probationary period of six months. The “probationary period” shall not divest an employee of his/her property right in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. – PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position will be filled as an openexternal or promotionalinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. 24.2. A promoted employee will serve a promotional probationary period lastingthat extends to at least until the first day of the pay period following twenty-six months after(26) weeks of employment without a break in service, beginning with the effective date of the promotion. OC San may extend an employee's promotional probationary period for the length of any period during which an employee is on an extended leave of absence during the probationary period. 24.3. If the promotion is for a classification that is subject to Department of Transportation requirements, the employee selected for promotion will be required to successfully complete alcohol and controlled substances testing prior to assuming the position. Supervisor Group MOU Page 16 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 24.3.24.4. At any time during the promotional probationary period, an employee may be returned to his/her previous position. or an equivalent position. The promotional probationary period may be extended by mutual agreement between the employee and OC San management for up to ninety (90) days. 24.4.24.5. If an employee is promoted during his/her initial probationary period, the period will be extended until at least the first day of the pay period twenty-six months(26) weeks after the effective date of the promotion. 24.5.1. For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary period end before the promotional probationary period, the promoted employee shall remain on the promotional probationary period for the remaining period until at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. 24.5.24.6. 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. OC San 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 OC San. 25.1.1. Employees hired on or after September 21, 1979 and before October 1, 2010: OC San 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. 25.1.1.1. OC San will continue to pay 3.5% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.2. Employees hired on or after October 1, 2010 and before January 1, 2013: OC San 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. 25.1.2.1. OC San will pay 0% of an eligible employee’s base salary towards the employee’s contributions to OCERS. 25.1.3. Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.3.1. OC San 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 Supervisor Group MOU Page 17 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 Revenue Code provisions. ARTICLE 26. – SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of 50% or more of the hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift will receive a shift differential of $3.00 per hour. for each hour worked between 6:00 p.m. and 6:00 a.m. ARTICLE 27. – LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable OC San Policy. 27.1.3. Vacation leave may only be utilized in increments of one-quarter (0.25) hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4. When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period, and is applicable to all types of leave, whether legally protected or not. 27.1.5. Annual Payoff. Employees may have a maximum accumulation of two hundred (200) hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred (200) hours, it must be used prior to said December date,; all other remaining hours in excess of two hundred (200) will be contributed into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.3. This will occur in the first pay period in January at the employee's then Supervisor Group MOU Page 18 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 current hourly rate of compensation. 27.2. Sick Leave 27.2.1. Definition. Sick leave is an insurance or protection provided by OC San to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy: to attend to the illness or injury of a family member as hereinafter defined: or, for an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2. Method. - Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three and one- half (3.5) hours for each biweekly pay period of continuous service; ninety-one (91) hours per year. Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service; (seventy-eight (78) hours per year), beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable OC San Policy. 27.2.4. When unpaid absences occur, sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period, and is applicable to all types of leave, whether legally protected or not. 27.2.5. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending in October at their current hourly rate according to the following payoff schedule. The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.2: Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560 (mandatory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20) years or more of service will be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty (20) years of service will be paid at the seventy-five percent (75%) rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to the following Supervisor Group MOU Page 19 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 situations: 27.2.7.1. Absence due to illness, injury or pregnancy of an employee. 27.2.7.2. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. 27.2.7.3 Absence for the care of the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband, wife, domestic partner, child, child of domestic partner, grandparent, grandchild, legal guardian, or family member with whom the employee resides; or designated person. A designated person is a person identified by the employee at the time the employee requests sick leave. The employee is limited to one designated person per rolling 12-month period. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 246.5, 230(c) and 230.1(a). 27.2.7.6. Bereavement Leave, as set forth in section 27.6.1, below. 27.2.8. Protected Sick Leave. As prescribed under California Labor Code section 233, employees may use up to one-half (1/2) of their annual sick leave accruals in any calendar year for qualifying reasons to care for eligible family members. 27.2.8.27.2.9. General Provisions. To qualify for sick leave pay, the employee must notify OC San at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee’s sick leave account will be one-quarter (0.25) hour increments. 27.2.9.27.2.10. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege. Except for the first forty (40) hours or five (5) days of sick leave use as prescribed under the California Paid Sick Leave Law, if notified in advance by a manager or supervisor, the employee may be required to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness. For absences of ten (10) consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to the Human Resources Department. Upon return to work, a written doctor's release must be submitted to the Human Resources Department. For absences of one (1) or more working days in an unpaid status, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to the Human Resources Department. 27.2.10.27.2.11. 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. Supervisor Group MOU Page 20 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 27.2.11.27.2.12. 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 in the chart below. The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.2: 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 (½) of a regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3 An employee serving jury duty must obtain an attendance slip from the court to be submitted to his/her supervisor with his/her timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4 Witness Leave 27.4.1 Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses, which subpoena compels his/her presence as a witness, except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness, will, upon approval of an online time off request, be entitled the time necessary to comply with such subpoena. An employee’s regular pay will be reduced by the amount of witness leave pay received, exclusive of mileage. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one (1) hour or Supervisor Group MOU Page 21 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service will be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use vacation, administrative leave, or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Any full-time employee, whether probationary or regular, shall receive a maximumup to five (5) days of bereavement leave, thirty-six (36) hours off with payof which will be paid, for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., sick, vacation, administrative leave, compensatory time off) in order to be paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step- sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six (6) months is not grievable or otherwise subject to appeal. 27.6.2 Part-time employees are eligible for paid bereavement leave on a pro- rata basis as set forth in applicable OC San Policy. 27.7 Administrative Leave Supervisor Group MOU Page 22 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 27.7.1 Administrative Leave is provided to FLSA exempt employees who are not eligible for overtime in an effort to recognize that based on the nature of the work and classification, the job and duties may extend beyond regularly scheduled work hours. 27.7.127.7.2 Effective the first pay period in July, regular full-time employees in the Group shall be granted forty (40sixty (60) hours of Administrative Leave. Employees who are hired or promoted intobecome part of the Group shall be granted Administrative Leave on a pro-rata basis per the following schedule: Hire Date Percent July - September 100% October - December 75% January - March 50% April - June 0% 27.7.227.7.3 Administrative Leave will be administered in accordance with the following guidelines: 27.7.2.127.7.3.1 Administrative Leave may be used in one- quarter-( (0.25) hour increments. 27.7.2.227.7.3.2 Any unused Administrative Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.2.327.7.3.3 Any unused Administrative Leave, within the fiscal year granted, is not subject to cash out or eligible for any mandatory payout. 27.7.2.427.7.3.4 Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. 27.7.3.5 Movement within the Supervisory and Professional Groups will not be subject to pro-rata granting, or forfeiture of Administrative Leave. ARTICLE 28. – LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of OC San to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees will not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2. Using the prescribed forms, approved by OC San management, any full-time, Supervisor Group MOU Page 23 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A request for leaveLeave of absence without payAbsence Request must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5) consecutiveone (1) 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition will be required to use all accruals before unpaid leave is granted. 28.3.2. Vacation, sick leave, 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, or a child to whom the employee stands in loco parentis, 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, 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, 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; Supervisor Group MOU Page 24 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 28.4.1.6. The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to 26 weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and will run concurrently with FMLA leave. 28.4.2.1.1. Employees are limited to one (1) “designated person” per rolling 12-month period. 28.4.2.2. CFRA Leave may not be used for 1) an employee’s incapacity due to pregnancy, or 2) 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, OC San requests thirty (30) days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with the Department of Labor (DOL) regulations. 28.5.2.2. As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’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/or CFRA Leave, OC San 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 Supervisor Group MOU Page 25 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 28.5.4.1. Upon expiration of FMLA and/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 OC San's obligation to continue health and dental or other benefits will cease. 28.5.5. OC San Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave Married employees will be limited to a combined total of twelve (12) weeks FMLA or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28.5.6.28.5.5. General Leave 28.5.6.1.28.5.5.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of- absence by OC San management to attend to personal matters, or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2.28.5.5.2. During a general leave-of-absence, the employee will be required to pay both OC San's and the employee’s share of medical and dental premiums. 28.5.6.3.28.5.5.3. 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. 28.5.7.28.5.6. Return to Work Policy 28.5.7.1.28.5.6.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2.28.5.6.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3.28.5.6.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the Supervisor Group MOU Page 26 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee will be re-classified as medically disqualified and not permitted to work. Thereafter, the employee will be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.5.8.28.5.7. Bridge of Service 28.5.8.1.28.5.7.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within OC San within one (1) year, OC San will bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.5.9.28.5.8. Failure to Return to Work 28.5.9.1.28.5.8.1. If, upon the expiration of FMLA and/or CFRA Leave, or any OC San-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 OC San’s intent to implement an automatic resignation. 28.5.10.28.5.9. Compliance with Law 28.5.10.1.28.5.9.1. These Leave-of-Absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law will govern. ARTICLE 29. - CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages, hours, and terms and conditions of employment; OC San is committed to complying with the law. 29.2. An employee who believes his/her position is not properly classified may submit a written request to the Department Head asking that a classification study be conducted. The Department Head will acknowledge the request in writing and review the request for accuracy, and forward it to the Human Resources Department for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule which normally requests all information by the end of February. OC San 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. The findings of the Human Resources Department are final and not subject to the appeal, problem-solving or grievance processes. 29.2.2. All classification study findings regarding existing classifications are Supervisor Group MOU Page 27 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 subject to approval by the General Manager; findings recommending a new job classification range are subject to approval by OC San's Board of Directors. The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action to be taken by the Board of Directors prior to implementation. In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.3. Y-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position will remain unchanged. 29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements, organizational structure or “bumping” associated with layoffs. Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay (unless otherwise authorized by the General Manager). 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.4. Reopener: OC San and SPMG agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. ARTICLE 30. - DRIVER’S LICENSE 30.1. Employees who are required by OC San to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform his/her regular duties and responsibilities notifies OC San 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 OC San's management discretion. 30.3. OC San will continue to pay the license renewals and physical examination costs of Class A and B licenses that are specifically required by OC San. ARTICLE 31. - LAYOFF PROCEDURE 31.1. If, in the sole discretion of OC San's management, personnel reductions are necessary, layoff order and recall lists will be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. The Group and employees subject to lay off will be provided with at least Supervisor Group MOU Page 28 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 two (2) weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resources Department within five (5) days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged, except that it may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two (2) years from the date of layoff. Individuals will be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer will be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers will have his/her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety, or that of others, OC San 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 OC San time and at OC San expense. An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position. This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for OC San business will be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1. Employees who are assigned by OC San management to perform the duties of an open, budgeted position at a higher level for a period of at least one hundred (100eighty (80) 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 8101st hour, and continues until the Supervisor Group MOU Page 29 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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 (100eighty (80)-hour eligibility period may be waived at the discretion of the General Manager. Time served in higher level assignments shall be credited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Human Resources Department. It is the responsibility of each employee to keep the personal information in his/her files current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. - BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post notices to OC San employees provided that: (a) no controversial matter which is critical or derogatory of OC San, its employees, officers or Directors may be posted; (b) nothing posted by OC San may be removed; (c) the Group will remove its notices after a reasonable length of time; and (d) only a reasonable number of notices will be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of three (3) employees covered by this Agreement and appointed by the Group will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time will be granted provided that the needs of OC San permit the time away from assigned work. ARTICLE 40. - USE OF OC SAN FACILITIES 40.1. OC San 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 OC San operations. The Group agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1. OC San and the Group acknowledge that during the negotiations which resulted in Supervisor Group MOU Page 30 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 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, OC San 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 OC San or Group declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting will be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation, nor take any public position at any time concerning the issues. 42.2.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties’ differences be submitted to a factfinding panel as soon as practicable. The cost of a fact finder and other mutually incurred costs will be mutually shared by OC San and Group. 42.2.3. Board Actions: If the parties fail to resolve the impasse, the dispute will be sent to OC San Board of Directors for resolution. Each party will submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. - SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement will be declared invalid by any court or by any state or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on OC San, OC San and the Group will meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1. OC San will provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and OC San seal, at no cost to employees whose Supervisor Group MOU Page 31 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 duties require that they wear uniforms. OC San will also provide lab coats as required by the lab managermanagement. 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 OC San management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. 44.3. Employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) asre eligible to receive a safety boot allowance shall receive either an annual or bi-annual voucher in the amount of $250 as applicable. ARTICLE 45. - SUBSTANCE ABUSE POLICY 45.1. OC San’s Substance Abuse Policy will apply to all Group members. OC San and the Group agree to meet and confer for any proposed revisions to the policy. OC San may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the Group prior to implementation. 45.2. Department of Transportation (DOT) Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San's Anti-Drug and Alcohol Program. OC San 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. OC San’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 46.1. New Employee Orientation 46.1.1. The Group will be allowed up to one half-hour each orientation session to communicate with Group-represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the Group representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new Group-represented classifications. If there are no new hires in the Group-represented classifications for a scheduled session, OC San will notify the Group as soon as possible in advance of the session. Supervisor Group MOU Page 32 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 46.1.3. Human Resources staff will provide the Group with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new Group-represented employees within 30 days of hire. 46.1.4. Human Resources staff will provide the Group with an electronic copy of the name, home address, personal email address, and personal cell phone number of all Group-represented employees at least every 120 days. 46.2. Dues Deductions 46.2.1. Remittance of the aggregate amount of all dues and other proper deductions made from the salaries of employees covered hereunder shall be made to AFSCME along with an electronic report detailing the employee's name, employee number, bargaining unit, classification title, work location, work phone, work e-mail, hire date, home address, home phone, home e-mail, cell phone, , and deduction amount(s) and type(s). 46.2.2. The Group shall indemnify, defend and hold the OC San harmless against any liability from any claims, demands, or other action related to OC San’s deduction of Union Dues, including claims related to the Union’s use of monies collected under these provisions. ARTICLE 47. – MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group, or who become members of the Group, shall remain members of the Group, except that any employee may withdraw his/her membership by written notice to the Group and OC San during the ten day period between ninety (90) and one hundred (100) days preceding the expiration of this agreement. ARTICLE 48. – PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, OC San agrees it will not lockout employees in this Group, and Group agrees that it will neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all Group members. OC San and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. - RESIGNATION Supervisor Group MOU Page 33 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 51.1. Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving. OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written resignation of employment with OC San is automatically deemed irrevocable after seventy-two (72) hours from OC San’s receipt of the resignation except by approval of the Human Resources Department. ARTICLE 52. (This article intentionally left blank) Supervisor Group MOU Page 34 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 SIGNATURE PAGE 2022 – 2025 – 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE SUPERVISOR GROUP Executed: ________________________________ SUPERVISOR GROUP ORANGE COUNTY SANITATION DISTRICT Russell Maitland, Business Representative, AFSCME Council 36 (Affiliate of SPMG) Laura Drottz Kalty, Lead Negotiator Larry Roberson, Senior Contracts Administrator Celia ChandlerLaura Maravilla, Director of Human Resources Marc Brown, Principal StaffIT Analyst Laura MaravillaThys DeVries, Human Resources & Risk Manager Angela Brandt, AccountingBen Bewley, Maintenance Supervisor Andrew Nau, Human Resources Supervisor Nick OswaldMike Oberly, Maintenance SupervisorSpecialist Janine Aguilar, Human Resources Supervisor Dickie Fernandez, Senior Engineer Stephanie Barron, Principal Human Resources Analyst Brian Finkelstein, Senior Engineer Dickie Fernandez, Engineer Thys DeVriesStephanie Barron, Principal Human Resources Analyst Supervisor Group MOU Page 35 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 Brian Finkelstein, Senior Engineer Stephanie Barron, Senior Human Resources Analyst Supervisor Group MOU Page 36 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 APPENDIX A Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component PPO High Deductible Health Plan In-Network Non-Network In-Network Non-Network Deductible $150 / $450 $1,400 / $2,800650 / $3,300 Annual Out-of- Pocket Max/Member $2,000 $3,000 $2,5003,400 $5,000 Annual Out-of- Pocket Max/Family $4,000 $6,000 $5,000 $10,000 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 Not Covered Inpatient Hospitalization 10% 30% + $500 10% 30% (up to $600/day, non-emergency) Outpatient Hospitalization/Surgery 10% 30% 10% 30% (up to $350/admit) Emergency Room $100 / Visit + 10% (copay waived if admitted) $100 / Visit + 10% (copay waived if admitted) Infertility Benefits Not Covered Not Covered Urgent Care $15/Visit 30% 10% 30% Chiropractic $15 / Visit (30 visits/year) 30% (30 visits/year) 10% / Visit (30 visits/year) 30% / Visit (30 visits/year) Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic / Brand / Non-Preferred Brand Generic / Brand/ Non-Preferred Brand Generic / Brand / Non-Preferred Brand Retail $5 / $20 / $35 (30-day supply) 50% of the prescription drug maximum allowed amount & costs in excess up to $250 per prescription $10 / $25 / $40 after deductible (30-day supply) $10 plus 25% / $25 plus 25% / $40 plus 25% (30-day supply) Mail Order $5 / $40 / $70 (90-day supply) Not Covered $20 / $50 / $80 after deductible (90-day supply) Not Covered 1 Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions. The information contained in Summary Plan Descriptions (SPDs) and Evidence of Coverage (EOC) booklets prevails. Supervisor Group MOU Page 37 of 356 12829516.10 OR040-04812829516.10 OR040\039\10130397.v1-048 Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component Anthem HMO Kaiser HMO Kaiser Bronze Deductible None None $5,000 Individual $10,000 Family Annual Out-of- Pocket Max/Member $1,500 $1,500 $6,250 Annual Out-of- Pocket Max/Family $3,000 $3,000 $12,500 Major Medical Physician Office Visit $15 / Visit $15/ Visit $60/ Visit Specialist Office Visit $15 / Visit $15/ Visit $70/ Visit Preventive Care No Charge No Charge No Charge Inpatient Hospitalization $100 Admit $100 Admit 30% Outpatient Hospitalization/Surgery $50 Admit $15 Co-pay (per procedure) 30% Emergency Room $100 / Visit (waived if admitted) $100 / Visit (waived if admitted) $300 / Visit (waived if admitted) Infertility Benefits Status Quo Status Quo Not Covered Urgent Care $15 / Visit $15 / Visit $60 / Visit Chiropractic $15 / Visit (60 visits/year) * $10 / Visit (30 visits/year) Not Covered Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic / Brand/ Non- Preferred Brand Generic / Brand Generic / Brand Retail $5 / $20 / $35 (30-day supply) $5 / $20 (30-day supply) $15 / $50 medical deductible applies (30-day supply) Mail Order $5 / $40 / $70 (90-day supply) $5 / $20 (100-day supply) $30 / $100 medical deductible applies (100-day supply) 1 Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions. The information contained in Summary Plan Descriptions (SPDs) and Evidence of Coverage (EOC) booklets prevails. * For chiropractic services through the American Specialty Health (ASH) Network, the copay is $10 with a maximum of 30 visits in a calendar year for covered services. 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP July 1, 20225 through June 30, 20258 Page ii 8971409.1 OR040-031 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION .............................................................................................................................1 ARTICLE 2. - DURATION....................................................................................................................................1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................1 ARTICLE 4. - GROUP ACCESS .........................................................................................................................1 ARTICLE 5. - GROUP RIGHTS ...........................................................................................................................2 ARTICLE 6. - OC SAN RIGHTS ..........................................................................................................................2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT .................................................................................2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT ......................................................................................2 ARTICLE 9. - SAFETY ........................................................................................................................................3 ARTICLE 10. - DISCIPLINE AND DISMISSAL .....................................................................................................3 ARTICLE 11. - GRIEVANCE PROCEDURE .........................................................................................................5 11.4.1. STEP 1 ..................................................................................................................................................... 5 11.4.2. STEP 2 ..................................................................................................................................................... 5 11.4.4. STEP 3 ..................................................................................................................................................... 5 11.4.5. STEP 4 ..................................................................................................................................................... 6 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ...........................................................................................6 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ....................................................................6 13.3. MERIT PAY ............................................................................................................................................... 7 13.4. PERFORMANCE MANAGEMENT PROGRAM ................................................................................................... 7 13.5. DEVELOPMENT PAY ................................................................................................................................... 7 13.8. SALARY RANGE ADJUSTMENTS .................................................................................................................. 8 13.9. INVESTMENT INCENTIVE SALARY (IIS) ........................................................................................................ 8 13.10. ONE-TIME LUMP SUM PAYMENT ................................................................................................................ 8 ARTICLE 14. - SEVERANCE PAY ........................................................................................................................8 ARTICLE 15. - DEFERRED COMPENSATION ....................................................................................................8 ARTICLE 16. - HOLIDAYS ....................................................................................................................................9 16.2. FLOATING HOLIDAY ................................................................................................................................... 9 ARTICLE 17. - HOURS OF WORK .................................................................................................................... 10 ARTICLE 18. ……….. ........................................................................................................................................... 10 ARTICLE 19. ……….. ........................................................................................................................................... 10 ARTICLE 20. - INSURANCE .............................................................................................................................. 10 20.3. MEDICAL INSURANCE ............................................................................................................................... 10 20.8. GROUP INSURANCE PREMIUMS ................................................................................................................ 11 20.9. LIFE INSURANCE...................................................................................................................................... 11 20.10 SHORT TERM DISABILITY………………………………………………………………………………………. 11 20.11. LONG TERM DISABILITY ........................................................................................................................... 11 20.12. DENTAL INSURANCE ................................................................................................................................ 12 20.13. VISION INSURANCE .................................................................................................................................. 12 20.14 RETIRING EMPLOYEES ............................................................................................................................. 12 20.15 HEALTH REIMBURSEMENT ARRANGEMENT ..………………………………………………………………….12 Page iii 8971409.1 OR040-031 ARTICLE 21. - REIMBURSEMENT ACCOUNT................................................................................................. 13 21.2. MEDICAL REIMBURSEMENT ACCOUNT ...................................................................................................... 13 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT ............................................................................................... 13 ARTICLE 22. - EXTRAORDINARY SERVICES COMPENSATION .................................................................. 13 ARTICLE 23. - PROBATIONARY PERIOD ....................................................................................................... 14 ARTICLE 24. - PROMOTIONS ........................................................................................................................... 15 ARTICLE 25. - RETIREMENT ............................................................................................................................ 15 25.1.1. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21, 1979 AND BEFORE OCTOBER 1, 2010 ........................... 15 25.1.2. EMPLOYEES HIRED ON OR AFTER OCTOBER 1, 2010 AND BEFORE JANUARY 1, 2013 .................................. 16 25.1.3. EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 .................................................................................. 16 ARTICLE 26. - SHIFT DIFFERENTIAL .............................................................................................................. 16 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY ............................................................................................ 16 27.1. VACATION LEAVE .................................................................................................................................... 16 27.2. SICK LEAVE ............................................................................................................................................ 17 27.3. JURY DUTY LEAVE .................................................................................................................................. 19 27.4. WITNESS LEAVE ...................................................................................................................................... 19 27.5. MILITARY LEAVE ...................................................................................................................................... 20 27.6. BEREAVEMENT LEAVE ............................................................................................................................. 20 27.7. ADMINISTRATIVE LEAVE ........................................................................................................................... 20 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY .................................................................................... 21 28.3. SUBSTITUTION OF PAID LEAVE. ................................................................................................................ 21 28.4. PERMISSIBLE USES ................................................................................................................................. 22 28.5. GENERAL PROVISIONS ............................................................................................................................ 23 ARTICLE 29. - CLASSIFICATION STUDIES ..................................................................................................... 25 29.3. Y-RATING ............................................................................................................................................... 25 ARTICLE 30. - DRIVER’S LICENSE .................................................................................................................. 26 ARTICLE 31. - LAYOFF PROCEDURE ............................................................................................................. 26 ARTICLE 32. - LIGHT DUTY .............................................................................................................................. 26 ARTICLE 33. - MEDICAL EXAMINATION ......................................................................................................... 27 ARTICLE 34. - MILEAGE ALLOWANCE ........................................................................................................... 27 ARTICLE 35. - ACTING PAY ............................................................................................................................. 27 ARTICLE 36. ……………………………………………………………………………………………………………..27 ARTICLE 37. - PERSONNEL FILES .................................................................................................................. 27 ARTICLE 38. - BULLETIN BOARDS ................................................................................................................. 27 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................ 28 ARTICLE 40. - USE OF OC SAN FACILITIES .................................................................................................. 28 ARTICLE 41. - SCOPE OF BARGAINING ......................................................................................................... 28 ARTICLE 42. - IMPASSE PROCEDURES ......................................................................................................... 28 42.2. IMPASSE PROCEDURES ........................................................................................................................... 28 ARTICLE 43. - SEVERABILITY ......................................................................................................................... 29 ARTICLE 44. - UNIFORMS ................................................................................................................................ 29 Page iv 8971409.1 OR040-031 ARTICLE 45. - SUBSTANCE ABUSE POLICY ................................................................................................. 29 45.2. DEPARTMENT OF TRANSPORTATION (DOT) REGULATIONS ........................................................................ 29 45.3. OC SAN'S SUBSTANCE ABUSE POLICY ..................................................................................................... 29 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS ............................................... 30 ARTICLE 47. - MAINTENANCE OF MEMBERSHIP ......................................................................................... 30 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES .............................................................................. 30 ARTICLE 49. ……………………………………………………………………………………………………………..31 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ............................................................. 31 ARTICLE 51. - RESIGNATION .......................................................................................................................... 31 ARTICLE 52. ……………………………………………………………………………………………………………..31 SIGNATURE PAGE .............................................................................................................................................. 32 ARTICLE 1. - RECOGNITION .............................................................................................................................1 ARTICLE 2. - DURATION....................................................................................................................................1 ARTICLE 3. - SUCCESSOR AGREEMENT ........................................................................................................1 ARTICLE 4. - GROUP ACCESS .........................................................................................................................1 ARTICLE 5. - GROUP RIGHTS ...........................................................................................................................2 ARTICLE 6. - OC SAN RIGHTS ..........................................................................................................................2 ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT .................................................................................2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT ......................................................................................2 ARTICLE 9. - SAFETY ........................................................................................................................................3 ARTICLE 10. - DISCIPLINE AND DISMISSAL .....................................................................................................3 ARTICLE 11. - GRIEVANCE PROCEDURE .........................................................................................................5 11.4.1. STEP 1 ..................................................................................................................................................... 5 11.4.2. STEP 2 ..................................................................................................................................................... 5 11.4.4. STEP 3 ..................................................................................................................................................... 5 11.4.5. STEP 4 ..................................................................................................................................................... 6 ARTICLE 12. - PROBLEM SOLVING PROCEDURE ...........................................................................................6 ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION ....................................................................7 13.3. MERIT PAY ............................................................................................................................................... 7 13.4. PERFORMANCE MANAGEMENT PROGRAM ................................................................................................... 7 13.5. DEVELOPMENT PAY ................................................................................................................................... 7 13.8. SALARY RANGE ADJUSTMENTS .................................................................................................................. 8 13.9. INVESTMENT INCENTIVE SALARY (IIS) ........................................................................................................ 8 13.10. ONE-TIME LUMP SUM PAYMENT ................................................................................................................ 8 ARTICLE 14. - SEVERANCE PAY ........................................................................................................................8 ARTICLE 15. - DEFERRED COMPENSATION ....................................................................................................8 ARTICLE 16. - HOLIDAYS ....................................................................................................................................9 16.2. FLOATING HOLIDAY ............................................................................................................................... 109 ARTICLE 17. - HOURS OF WORK .................................................................................................................... 10 ARTICLE 18. ……….. ........................................................................................................................................... 10 ARTICLE 19. ……….. ........................................................................................................................................... 10 ARTICLE 20. - INSURANCE .......................................................................................................................... 1110 Page v 8971409.1 OR040-031 20.3. MEDICAL INSURANCE ........................................................................................................................... 1111 20.8. GROUP INSURANCE PREMIUMS ................................................................................................................ 11 20.9. LIFE INSURANCE...................................................................................................................................... 11 20.10 SHORT TERM DISABILITY………………………………………………………………………………………. 11 20.11. LONG TERM DISABILITY ....................................................................................................................... 1211 20.12. DENTAL INSURANCE ................................................................................................................................ 12 20.13. VISION INSURANCE .................................................................................................................................. 12 20.14 RETIRING EMPLOYEES ............................................................................................................................. 12 20.15 HEALTH REIMBURSEMENT ARRANGEMENT ..………………………………………………………………….12 ARTICLE 21. - REIMBURSEMENT ACCOUNT................................................................................................. 13 21.2. MEDICAL REIMBURSEMENT ACCOUNT ...................................................................................................... 13 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT ........................................................................................... 1413 ARTICLE 22. - EXTRAORDINARY SERVICES COMPENSATION .............................................................. 1413 ARTICLE 23. - PROBATIONARY PERIOD ................................................................................................... 1514 ARTICLE 24. - PROMOTIONS ........................................................................................................................... 15 ARTICLE 25. - RETIREMENT ........................................................................................................................ 1615 25.1.1. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21, 1979 AND BEFORE OCTOBER 1, 2010 ....................... 1615 25.1.2. EMPLOYEES HIRED ON OR AFTER OCTOBER 1, 2010 AND BEFORE JANUARY 1, 2013 .................................. 16 25.1.3. EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 .................................................................................. 16 ARTICLE 26. - SHIFT DIFFERENTIAL .............................................................................................................. 16 ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY ........................................................................................ 1716 27.1. VACATION LEAVE ................................................................................................................................ 1716 27.2. SICK LEAVE ............................................................................................................................................ 17 27.3. JURY DUTY LEAVE .............................................................................................................................. 2019 27.4. WITNESS LEAVE ...................................................................................................................................... 20 27.5. MILITARY LEAVE ...................................................................................................................................... 20 27.6. BEREAVEMENT LEAVE ......................................................................................................................... 2120 27.7. ADMINISTRATIVE LEAVE ........................................................................................................................... 21 ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY .................................................................................... 22 28.3. SUBSTITUTION OF PAID LEAVE. ............................................................................................................ 2322 28.4. PERMISSIBLE USES ............................................................................................................................. 2322 28.5. GENERAL PROVISIONS ............................................................................................................................ 23 ARTICLE 29. - CLASSIFICATION STUDIES ................................................................................................. 2625 29.3. Y-RATING ............................................................................................................................................... 26 ARTICLE 30. - DRIVER’S LICENSE .............................................................................................................. 2726 ARTICLE 31. - LAYOFF PROCEDURE ......................................................................................................... 2727 ARTICLE 32. - LIGHT DUTY .......................................................................................................................... 2827 ARTICLE 33. - MEDICAL EXAMINATION ..................................................................................................... 2827 ARTICLE 34. - MILEAGE ALLOWANCE ....................................................................................................... 2827 ARTICLE 35. - ACTING PAY ......................................................................................................................... 2828 ARTICLE 36. ……………………………………………………………………………………………………………..28 Page vi 8971409.1 OR040-031 ARTICLE 37. - PERSONNEL FILES .................................................................................................................. 28 ARTICLE 38. - BULLETIN BOARDS ................................................................................................................. 28 ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS ........................................................ 28 ARTICLE 40. - USE OF OC SAN FACILITIES .............................................................................................. 2928 ARTICLE 41. - SCOPE OF BARGAINING ......................................................................................................... 29 ARTICLE 42. - IMPASSE PROCEDURES ......................................................................................................... 29 42.2. IMPASSE PROCEDURES ........................................................................................................................... 29 ARTICLE 43. - SEVERABILITY ..................................................................................................................... 3029 ARTICLE 44. - UNIFORMS ................................................................................................................................ 30 ARTICLE 45. - SUBSTANCE ABUSE POLICY ................................................................................................. 30 45.2. DEPARTMENT OF TRANSPORTATION (DOT) REGULATIONS ........................................................................ 30 45.3. OC SAN'S SUBSTANCE ABUSE POLICY ..................................................................................................... 30 ARTICLE 46. - NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS ........................................... 3130 ARTICLE 47. - MAINTENANCE OF MEMBERSHIP ......................................................................................... 31 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES .............................................................................. 31 ARTICLE 49. ……………………………………………………………………………………………………………..3231 ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY ......................................................... 3231 ARTICLE 51. - RESIGNATION .......................................................................................................................... 32 ARTICLE 52. ……………………………………………………………………………………………………………..32 SIGNATURE PAGE .............................................................................................................................................. 33 APPENDIX A ..................................................................................................................................................... 33 Professional Group MOU Page 1 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed, of the Orange County Sanitation District’s (OC San) Boards of Directors, OC San's authorized representatives have met and conferred in good faith with representatives of the Professional Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Professional Group accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by the Professional Group as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1. This Agreement, effective July 1, 20225, is entered into between the Orange County Sanitation District, referred to hereinafter as the "OC San", and the Professional Group, referred to hereinafter as "Group”, as a mutual recommendation to the Board of Directors of OC San of those wages, hours of work, and terms and conditions of employment. ARTICLE 2. - DURATION 2.1. This Agreement will be binding on OC San and the Group when approved and adopted by OC San’s Board of Directors. This Agreement will terminate on June 30, 20258. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions (EERR), Resolution No. OC San 23-09, as Resolution No. OCSD 18-18 has been repealed. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1. The Group will submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. - GROUP ACCESS 4.1. A Group representative will have access to OC San 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 OC San operations, or with the work of employees in any manner. OC San reserves the right to restrict access in certain areas designated confidential or secure. Professional Group MOU Page 2 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 ARTICLE 5. - GROUP RIGHTS 5.1. The Group may designate up to five (5) employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to OC San 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 OC San nor the Group will interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 6. – OC SAN RIGHTS 6.1. OC San inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to OC San in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. OC San 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 OC San operations; determine the methods, means and personnel by which OC San operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2. OC San retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. OC San exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude the Group from appealing or meeting and conferring the practical consequences or impacts that OC San decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1. There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, physical or mental disability, medical condition, genetic information, marital status, or military or veteran status, reproductive health decision making or any other lawfully protected class. To the extent required by law or by OC San's rules or regulations, this provision of the Agreement will be applied to all members of the Group without regard to any protected classification. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 8.1. OC San 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 Professional Group MOU Page 3 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 smoking and the potentially harmful effect it has on the health and well being of OC San employees and their families, smoking and the use of tobacco (cigarettes, cigars, e-cigarettes [“vaping”] and related tobacco products and technologies) is not acceptable within OC San facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1. It is the duty of OC San 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 OC San, and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Group: verbal reprimand; written reprimand; suspension without pay; reduction in pay; demotion to a classification with a lower pay grade, or dismissal. 10.2. Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by OC San for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay, reduction in pay, demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail, which will be the date of issuance. 10.5. The Notice of Intent will contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2) the reasons for the proposed action; (3) a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline, or to an OC San management representative with authority to make an effective recommendation on the proposed action; the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action, the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, OC San 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, OC San may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in OC San’s Personnel Policies & Procedures Manual. Professional Group MOU Page 4 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 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 OC San property or funds, fighting on the job, insubordination, acts endangering people or property, “no-call/no- show” or other serious misconduct. OC San may substitute documented suspensions without pay for written reprimands. 10.7.1. Employees who fail to provide any notice to their supervisor and fail to report to work as scheduled shall be considered “no call/no show” and shall be subject to discipline, up to and including termination. Employees who fail to provide any notice to their supervisor and fail to report to work for three (3) or more consecutive days will be considered to have abandoned their job and shall be subject to discipline up to and including termination. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post-disciplinary hearing. The request must be submitted to the Assistant General Manager or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date will be the first business day following the final day of the suspension). The Director of Human Resources, or designee, will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of OC San. 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. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action documentation, except verbal reprimand documentation, will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor’s employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four (24) months from implementation there have been no recurrences of similar incidents, the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee’s personnel file twenty-four (24) months subsequent to the date of the issuance, provided that there has been no recurrence of a similar incident during the period. If the Human Resources Department agrees to remove the written reprimand documentation from an employee’s personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of OC San proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, “bumping” associated with layoffs, reasonable accommodation) shall not be considered discipline. Professional Group MOU Page 5 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 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 OC San by an individual employee within the Group or by the Group. OC San 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 OC San and the Group, be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance, to discuss the issue with the Director of Human Resources, or designee, in an effort to bring about an informal resolution. 11.4. An employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. OC San 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, with a copy provided to the Director of Human Resources or designee. This request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested; and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten (10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Assistant General Manager, or designee, for review and written response. The request for formal review must be presented on a form provided by OC San within ten (10) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance shall be filed with the Assistant Professional Group MOU Page 6 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 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 (10five (5) days from the date the Step 3 finding was issued. The General Manager, or designee, will respond in writing to the employee within fifteen (15ten (10) days after the date the grievance is received. The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the Group, the Group may designate one (1) employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility. Absence from work will be approved only if it does not cause disruption to OC San operations. However, if the time requested cannot be provided, an alternate time will be arranged. 11.6. Failure of a supervisor, Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it will be considered resolved on the basis of the preceding response. The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the parties. OC San agrees to meet face-to-face with the employee at each step of the grievance procedure at the request of the employee. 11.7. Resolution may be agreed upon at any stage of the grievance process. However, the Group will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of OC San 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. Counseling and performance appraisals are not subject to the problem solving procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor will review the situation or decision, and provide a written response within five (5) days from the date they were notified of the problem. 12.3. If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Human Resources Department within ten (10) days of receipt of the supervisor's decision. Upon request of either party, a meeting will be held to define issues and establish the remedies sought. The employee will be provided a written response within ten (10) days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Human Resources Department is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1. Each pay grade is divided into five (5) steps, with an approximate 5.0% difference Professional Group MOU Page 7 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3. Merit Pay 13.3.1. Step Increase Pay – Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible - Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2. Ineligible - Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program: The performance management program includes two (2) rating categories (proficient and needs improvement) for performance appraisals. 13.5. Development Pay – Employees under this Agreement are eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education –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 –Eligible employees who obtain or who have obtained an OC San approved certification or license will receive $15.24 per pay period per certificate or license with a maximum of three (3) certificates and/or licenses. 13.5.3. Grade V Pay – Employees who receive Grade V pay in accordance with the applicable OC San 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. Professional Group MOU Page 8 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 13.8. Salary Range Adjustments 13.8.1. Effective the first pay period in July 20225, employees under this Agreement will receive salary range adjustments at a flat rate of 4.5%. 13.8.2. Effective the first pay period in July 20236, employees under this Agreement will receive salary range adjustments at a flat rate of 4.05%. 13.8.3. Effective the first pay period in July 20247, employees under this Agreement will receive salary range adjustments at a flat rate of 3.50%. 13.9. Investment Incentive Salary (IIS) 13.9.1. An additional amount of 4% of base salary will be paid to employees hired or promoted into the Group on or before October 16, 2003 in a lump-sum amount each pay period. This provision continues to make employees whole as a result of the Ventura decision. The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In addition, employees hired or promoted into the Group on or before October 16, 2003 will be paid $1250 annually or $48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual, retirement, and termination leave payouts for eligible employees. 13.10. One-Time Lump Sum Payment – Employees hired or promoted into the Group as of the last day of the first full pay period in July 20225 will receive a $1,5000 one-time payment. The payment shall not apply to employees hired after the first full pay period following approval and adoption of the Agreement. ARTICLE 14. - SEVERANCE PAY 14.1. Except for disciplinary cause or release from probation, when a full-time employee is terminated by action of OC San, the employee will be notified in writing two (2) weeks prior to the effective separation date. The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time, regular employees will be entitled to eight (8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2. Employees in limited term or part-time positions, probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION 15.1. Employees may participate in OC San approved deferred compensation plans, subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by OC San management. Professional Group MOU Page 9 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 15.1. 15.1.1. Effective the first full pay period in July 2022, employeesOC San will make a 401(a) plan available to eligible employees to allow for applicable matching OC San contributions. Participating employees shall be responsible for any administrative fees associated with this plan. 15.2. Employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to a $235 per month matching OC San contribution. Effective the first full pay period in July 2025, employees covered by OCERS Plans B and U and who participate in the deferred compensation plan, are eligible to receive up to $445 per month matching OC San contribution. ARTICLE 16. - HOLIDAYS 16.1. The days listed below are observed by OC San 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 employee will be paid at the employee's regular rate of pay for the holiday, and will also receive pay at the rate of one and one half (1.5) times his/her regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay, if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off, the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance in excess of fifty (50) hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty (50). The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.4. Holidays New Year’s Day Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday (refer to section 16.2) Professional Group MOU Page 10 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 16.2. Floating Holiday: Employees will be granted “Floating Holiday” hours equal to and no less than one (1) regular workday during each calendar year. Floating Holiday hours may be utilized in one quarter (.25) hour increments. New employees shall be granted a “Floating Holiday” on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter (January-March) 100% 2nd Quarter (April-June) 75% 3rd Quarter (July-September) 50% 4th Quarter (October-December) 0% 16.3. Employees must use the “Floating Holiday” within the year it is granted, and it is not subject to cash out or eligible for any mandatory payout regardless of reason. Every effort will be made to approve an employee's request for a "Floating Holiday" off providing sufficient notice is given. 16.4. Part-time employees are eligible for holiday benefits on a pro-rata basis as set forth in applicable OC San Policy. ARTICLE 17. - HOURS OF WORK 17.1. The work schedule for full-time employees will be eighty (80) hours per biweekly pay period, normally scheduled in shifts of five (5) eight 8-hour days each week, four (4) nine 9-hour days each week and one (1) additional 8-hour day on alternate weeks (9/80), four (4) ten 10-hour days each week (8/80), or three (3) twelve 12-hour days each week and one (1) additional 8-hour day on alternate weeks (7/80). However, with the approval of the employee’s supervisor, employees may be allowed to flex their schedule within the pay period provided that the business needs, work flow, and customer service needs of OC San are met. 17.2. OC San 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. 17.3. OC San may provide the option of telecommuting, as set forth in the Telecommuting Policy. ARTICLE 18. (This article intentionally left blank) ARTICLE 19. (This article intentionally left blank) Professional Group MOU Page 11 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 ARTICLE 20. - INSURANCE 20.1. OC San 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. OC San 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 OC San will contribute 90% of employee only premiums for the HMO medical health plans and 80% of employee only premiums for the PPO and HDHP medical plans. OC San will contribute 80% of the employee +1 dependent and full family premiums for the HMO, PPO, or PPOHDHP medical plans. Any change in insurance rates will be shared equally in same ratio as OC San and employees currently pay premiums. Before the renewal of any OC San sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.5. Regular, part-time employees Part-time employees are eligible for medical insurance benefits on a pro-rata basis as set forth in the applicable OC San Policy. 20.6. The HDHP will be accompanied by a Health Savings Account (HSA) to pay for qualified medical expenses. OC San 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 OC San’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 OC San's aforementioned annual premium cost savings. 20.7. OC San may reopen negotiations at any time during the term of this agreement to address the impact of the Affordable Care Act (ACA). 20.8.20.7. Group Insurance Premiums 20.8.1.20.7.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9.20.8. Life Insurance 20.9.1.20.8.1. OC San will pay up to the full premium for $50,000 term life insurance on each employee according to the plan terms, which provide for reductions at specific ages. 20.10.20.9. Short Term Disability 20.10.1.20.9.1. OC San will provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California’s State Disability Insurance (SDI) program for up to twenty-six (26) weeks following a fourteen (14) calendar day waiting period. Professional Group MOU Page 12 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 20.11.20.10. Long Term Disability 20.11.1.20.10.1. OC San will provide a non-work related, long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, following a 90-day waiting period of continuous disability, at such time that an employee completes five (5) years of service. 20.11.2.20.10.2. 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 OC San’s long term disability plan contract accessible on the intranet. 20.11.3.20.10.3. 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 OC San paid Long Term Disability may purchase such coverage at their own expense. 20.12.20.11. Dental Insurance 20.12.1.20.11.1. OC San will contribute 80% of employee only and full family premiums for dental insurance. 20.13.20.12. Vision Insurance 20.13.1.20.12.1. OC San will provide a vision insurance plan for regular, full-time employees and eligible dependents. Part-time employees are eligible for vision insurance benefits on a pro-rata basis as set forth in applicable OC San Policy. 20.14.20.13. Retiring Employees 20.14.1. OC San 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 OC San medical plan. 20.14.2. In the event OC San adds additional optional insurance plans, OC San's share of the premium will be the same as for existing plans as set forth above. In the event OC San changes underwriters for existing insurance plans, OC San's share of the premium will be the same as for existing insurance plans as set forth above. 20.14.3.20.13.1. OC San will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by $10 per month for every full year of continuous service up to a maximum of 25 years or $250 per month. 20.14.4.20.13.2. Continuous service is calculated based on benefitted employment. Time as an intern or in non-benefitted status shall not count toward continuous service. 20.15.20.14. Health Reimbursement Arrangement: OC San will establish a Health Professional Group MOU Page 13 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 Reimbursement Arrangement (HRA) for all employees in the Group, per Internal Revenue Guidance Rev. Rul. 2002-41Code Sections 105 and Rev. No.106 and IRS Notice 2002-45. 20.15.1.20.14.1. All employees of the Group shall be required to contribute uniformly to the HRA according to the following plan design and may not opt out. 20.15.2.20.14.2. All mandatory sick leave payouts shall be contributed to the employee’s HRA according to the provisions in Article 27 – Leave of Absence with Pay, Sections 27.2.5 and 27.2.11. 20.15.3.20.14.3. All mandatory vacation payouts shall be contributed to the employee’s HRA in accordance with Article 27 – Leave of Absence with Pay, Section 27.1.5. 20.15.4.20.14.4. All mandatory compensatory payouts shall be contributed to the employee’s HRA in accordance with Article 16 - Holidays, Section 16.1. 20.15.5.20.14.5. In the event of death while employed at OC San, any compensation as a result of any accrued and unused sick leave, vacation leave, and compensatory leave payouts shall be paid to the employee’s designated beneficiaries. 20.15.6.20.14.6. In the event of death, the employee’s HRA account and all remaining monies within the account shall be transferred to the qualified dependent of record. The qualified dependent of record is a designation defined by IRS rules rather than an employee-chosen beneficiary. In the event there is no qualified dependent of record, all assets in the HRA shall be forfeited and distributed on a non-discriminatory basis to remaining plan participants. 20.15.7.20.14.7. In the event of termination by OC San, any compensation as a result of accrued and unused sick leave, vacation leave, and compensatory leave payouts shall be paid directly to the employee. 20.15.8.20.14.8. OC San shall pay the administrative costs of the HRA plan up to a maximum of $30 per year per employee. Employees shall be responsible for any asset management fees. 20.15.9.20.14.9. Effective the last full pay period in October 2022, OC San will contribute $50 per month to each employee’s HRA account. 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 Professional Group MOU Page 14 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. – EXTRAORDINARY SERVICES COMPENSATION 22.1. Employees in the Group are exempt from the overtime provisions of the Fair Labor Standards Act. However, when services are required beyond what is normally expected of a position in this Group, employees will be eligible to receive additional compensation, as defined herein, for performing extraordinary services. Extraordinary services shall be defined as: 22.1.1. The General Manager declares an emergency. A declaration of an emergency is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11 – Grievance Procedure or Article 12 – Problem Solving Procedure. 22.1.2. The General Manager determines that there exists a critical event. A critical event is defined as work of a prolonged nature; involving non- emergency related services; major special projects; or when a substantial effort must be expended to meet a compliance date or scheduled deadline. The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11 – Grievance Procedure or Article 12 – Problem Solving Procedure. 22.1.3. Written approval of a critical event must be obtained in advance of the work to be performed. The authorization shall set forth the work to be accomplished, the anticipated start and end date and those employees expected to participate in the work. The Department Head, or designee, will be responsible for determining the actual start and end date as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a critical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event, independent from which department they are assigned. 22.2.2. For emergencies, compensation will occur for all hours outside the employee’s regularly scheduled work shift. For critical events, compensation will occur for all hours after an initial 10 hours of uncompensated time has elapsed. 22.2.3. Employees in the Operations Supervisor classification will receive additional compensation at one and one-half (1.5) times their regular rate of pay. All other classifications shall receive straight time compensation. Professional Group MOU Page 15 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 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 one-year 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. 23.3. New employees serving their initial probationary period shall be eligible for Development Pay and/or certification/license reimbursement the first day of the pay period following six months of employment without a break in service. 23.4. An employee may be released during his/her initial probationary period at the discretion of OC San without recourse to the Grievance, Discipline or Appeal Procedure (i.e., an employee is “at-will” during his/her initial probationary period). Employees within the initial probationary period do not have any property rights in their job during probation and may be separated with or without cause. 23.5. Employees who are reassigned, or laterally transferred or have a voluntary job change will serve a probationary period of six months. The “probationary period” shall not divest an employee of his/her property right in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. – PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. OC San will determine whether a vacant position will be filled as an openexternal or promotionalinternal recruitment. Whenever OC San intends to fill a position by promotion, OC San 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 OC San’s intranet. 24.2. A promoted employee will serve a promotional probationary period lastingthat extends to at least until the first day of the pay period following twenty-six months after(26) weeks of employment without a break in service, beginning with the effective date of the promotion. OC San may extend an employee's promotional probationary period for the length of any period during which an employee is on an extended leave of absence during the probationary period. 24.3. If the promotion is for a classification that is subject to Department of Transportation requirements, the employee selected for promotion will be required to successfully complete alcohol and controlled substances testing prior to assuming the position. 24.3.24.4. At any time during the promotional probationary period, an employee may be returned to his/her previous position. or an equivalent position. The promotional probationary period may be extended by mutual agreement between the employee and OC San management for up to ninety (90) days. 24.4.24.5. If an employee is promoted during his/her initial probationary period, the period Professional Group MOU Page 16 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 will be extended until at least the first day of the pay period twenty-six months(26) weeks after the effective date of the promotion. 24.5.1. For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary period end before the promotional probationary period, the promoted employee shall remain on the promotional probationary period for the remaining period until at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. 24.5.24.6. 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. OC San 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 OC San. 25.1.1. Employees hired on or after September 21, 1979 and before October 1, 2010: OC San 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. 25.1.1.1. OC San will continue to pay 3.5% of an eligible employee’s base salary towards the employee’s contribution to OCERS. 25.1.2. Employees hired on or after October 1, 2010 and before January 1, 2013: OC San 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. 25.1.2.1. OC San will pay 0% of an eligible employee’s base salary towards the employee’s contributions to OCERS. 25.1.3. Employees hired on or after January 1, 2013: OC San will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. 25.1.3.1. OC San 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 Professional Group MOU Page 17 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift will receive a shift differential of $3.00 per hour. for each hour worked between 6:00 p.m. and 6:00 a.m. ARTICLE 27. – LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable OC San Policy. 27.1.3. Vacation leave may only be utilized in increments of one-quarter (0.25) hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4. When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period, and is applicable to all types of leave, whether legally protected or not. 27.1.5. Annual Payoff. Employees may have a maximum accumulation of two hundred (200) hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred (200) hours, it must be used prior to said December date;, all other remaining hours in excess of two hundred (200) will be contributed into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.3. This will occur 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 OC San Professional Group MOU Page 18 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy: to attend to the illness or injury of a family member as hereinafter defined: or, for an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2. Method. - Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three and one- half (3.5) hours for each biweekly pay period of continuous service; ninety-one (91) hours per year. Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service; (seventy-eight (78) hours per year), beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable OC San Policy. 27.2.4. When unpaid absences occur, sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period, and is applicable to all types of leave, whether legally protected or not. 27.2.5. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending in October at their current hourly rate according to the following payoff schedule. The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.2: Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560 (mandatory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20) years or more of service will be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty (20) years of service will be paid at the seventy-five percent (75%) rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to the following situations: 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 Professional Group MOU Page 19 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 employee when approved by the employee's supervisor. 27.2.7.3. Absence for the care of the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband, wife, domestic partner, child, child of domestic partner, grandparent, grandchild, legal guardian, or family member with whom the employee resides;. or designated person. A designated person is a person identified by the employee at the time the employee requests sick leave. The employee is limited to one designated person per rolling 12-month period.. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee or family member who is a victim of violence, domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 246.5, 230(c) and 230.1(a). 27.2.7.6. Bereavement Leave, as set forth in section 27.6.1, below. 27.2.8. Protected Sick Leave. As prescribed under California Labor Code section 233, employees may use up to one-half (1/2) of their annual sick leave accruals in any calendar year for qualifying reasons to care for eligible family members. 27.2.8.27.2.9. General Provisions. To qualify for sick leave pay, the employee must notify OC San at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee’s sick leave account will be one-quarter (0.25) hour increments. 27.2.9.27.2.10. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege. Except for the first forty (40) hours or five (5) days of sick leave use as prescribed under the California Paid Sick Leave Law, if notified in advance by a manager or supervisor, the employee may be required to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness. For absences of ten (10) consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to the Human Resources Department. Upon return to work, a written doctor's release must be submitted to the Human Resources Department. For absences of one (1) or more working days in an unpaid status, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to the Human Resources Department. 27.2.10.27.2.11. If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement will comply with the provisions of these Acts. 27.2.11.27.2.12. 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 Professional Group MOU Page 20 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 injury leave in excess of eighty (80) hours, the annual payoff for unused sick leave will be as follows in the chart below. The mandatory payout shall be made in the form of a contribution into the employee’s HRA according to Article 20 – Insurance, Health Reimbursement Arrangement, Section 20.15.2: 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 (½) of a regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3. An employee serving jury duty must obtain an attendance slip from the court to be submitted to his/her supervisor with his/her timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4. Witness Leave 27.4.1. Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses, which subpoena compels his/her presence as a witness, except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness, will, upon approval of an online time off request, be entitled the time necessary to comply with such subpoena. An employee’s regular pay will be reduced by the amount of witness leave pay received, exclusive of mileage. 27.4.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OC San for time not actually retained on witness service of one (1) hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5. Military Leave Professional Group MOU Page 21 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 27.5.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service will be submitted with the request. 27.5.2. Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave. In general, current law provides that an employee having one (1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option, elect to use vacation, administrative leave, or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6. Bereavement Leave 27.6.1. Any full-time employee, whether probationary or regular, shall receive a maximumreceive up to five (5) days of bereavement leave, thirty-six (36) hours off with payof which will be paid, for the death or funeral of an immediate family member. An employee may use existing accruals (i.e., sick, vacation, administrative leave, compensatory time off) in order to be paid for up to five (5) days. Bereavement leave shall be used within six (6) months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father, father-in- law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furnish evidence satisfactory to OC San of the family member’s death and the employee’s relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee, who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six (6) months is not grievable or otherwise subject to appeal. 27.6.2. Part-time employees are eligible for paid bereavement leave on a pro- rata basis as set forth in applicable OC San Policy. 27.7. Administrative Leave 27.7.1. Administrative Leave is provided to FLSA exempt employees who are not eligible for overtime in an effort to recognize that based on the nature of the work and classification, the job and duties may extend beyond regularly scheduled work hours. Professional Group MOU Page 22 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 27.7.1.27.7.2. Effective the first pay period in July, regular full-time employees in the Group shall be granted forty (40sixty (60) hours of Administrative Leave. Employees who are hired or promoted intobecome part of the Group shall be granted Administrative Leave on a pro-rata basis per the following schedule: Hire Date Percent July - September 100% October - December 75% January - March 50% April - June 0% 27.7.2.27.7.3. Administrative Leave will be administered in accordance with the following guidelines: 27.7.2.1.27.7.3.1. Administrative Leave may be used in one- quarter-(0.25) hour increments. 27.7.2.2.27.7.3.2. Any unused Administrative Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.2.3.27.7.3.3. Any unused Administrative Leave, within the fiscal year granted, is not subject to cash out or eligible for any mandatory payout. 27.7.2.4.27.7.3.4. Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. 27.7.3.5. Movement within the Supervisory and Professional Groups will not be subject to pro-rata granting, or forfeiture of Administrative Leave. ARTICLE 28. – LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of OC San to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees will not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL (Pregnancy Disability Leave)/FMLA (Family and Medical Leave Act)/CFRA (California Family Rights Act) for their own serious health condition. 28.2. Using the prescribed forms, approved by OC San 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 and/or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve (12) month calendar period. A “rolling” twelve (12) month period is measured backward from the date the employee uses the leave. A Leave of Absence Professional Group MOU Page 23 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 Rrequest 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) consecutiveone (1) 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 and/or CFRA Leave for qualifying purposes other than the employee’s own serious health condition will be required to use all accruals before unpaid leave is granted. 28.3.2. Vacation, sick leave, 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, or a child to whom the employee stands in loco parentis, 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, 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, who has a serious health condition, as defined in the Act; 28.4.1.4. The employee’s own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee’s family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee’s family member or “next of kin” service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to 26 weeks of unpaid leave during a single 12-month period. Professional Group MOU Page 24 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 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 partnerdesignated person identified by the employee at the time the employee requests leave to care for that person, and will run concurrently with FMLA leave. 28.4.2.1.1. Employees are limited to one (1) “designated person” per rolling 12-month period. 28.4.2.2. CFRA Leave may not be used for 1) an employee’s incapacity due to pregnancy, or 2) 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, OC San requests thirty (30) days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA and/or CFRA Leave because of a serious health condition, OC San may require certification by the employee’s attending physician in accordance with the Department of Labor (DOL) regulations. 28.5.2.2. As a condition of FMLA and/or CFRA Leave because of an eligible family member’s serious health condition, OC San may require certification by the eligible family member’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/or CFRA Leave, OC San 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 and/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 OC San's obligation to continue health and dental Professional Group MOU Page 25 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 or other benefits will cease. 28.5.5. OC San Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave Married employees will be limited to a combined total of twelve (12) weeks FMLA or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28.5.6.28.5.5. General Leave 28.5.6.1.28.5.5.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of- absence by OC San management to attend to personal matters, or for FMLA and/or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2.28.5.5.2. During a general leave-of-absence, the employee will be required to pay both OC San's and the employee’s share of medical and dental premiums. 28.5.6.3.28.5.5.3. 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. 28.5.7.28.5.6. Return to Work Policy 28.5.7.1.28.5.6.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2.28.5.6.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3.28.5.6.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee’s restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee’s restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee will be re-classified as medically disqualified and not permitted to work. Thereafter, the employee will be retired for disability, if eligible, or dismissed. Such dismissal will not imply Professional Group MOU Page 26 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 disciplinary action for cause. If requested, the employee’s file will indicate the employee left for personal reasons. 28.5.8.28.5.7. Bridge of Service 28.5.8.1.28.5.7.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within OC San within one (1) year, OC San will bridge the employee’s service date. Bridging of service procedures involve adding the total number of days away from work to the employee’s original date of hire. 28.5.9.28.5.8. Failure to Return to Work 28.5.9.1.28.5.8.1. If, upon the expiration of FMLA and/or CFRA Leave, or any OC San-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 OC San’s intent to implement an automatic resignation. 28.5.10.28.5.9. Compliance with Law 28.5.10.1.28.5.9.1. These Leave-of-Absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law will govern. ARTICLE 29. - CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages, hours, and terms and conditions of employment; OC San is committed to complying with the law. 29.2. An employee who believes his/her position is not properly classified may submit a written request to the Department Head asking that a classification study be conducted. The Department Head will acknowledge the request in writing and review the request for accuracy, and forward it to the Human Resources Department for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule which normally requests all information by the end of February. OC San 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. The findings of the Human Resources Department are final and not subject to the appeal, problem-solving or grievance processes. 29.2.2. 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 OC San'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 Professional Group MOU Page 27 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 the Board of Directors prior to implementation. In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.3. Y-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position will remain unchanged. 29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to OC San’s staffing requirements, organizational structure or “bumping” associated with layoffs. Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay (unless otherwise authorized by the General Manager). 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.4. Reopener: OC San and SPMG agree to reopen this Agreement to meet and confer regarding the comparison agencies used for any classification and compensation studies. ARTICLE 30. - DRIVER’S LICENSE 30.1. Employees who are required by OC San to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any status changes, including but not limited to a suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform his/her regular duties and responsibilities notifies OC San 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 OC San's management discretion. 30.3. OC San will continue to pay the license renewals and physical examination costs of Class A and B licenses that are specifically required by OC San. ARTICLE 31. - LAYOFF PROCEDURE 31.1. If, in the sole discretion of OC San's management, personnel reductions are necessary, layoff order and recall lists will be developed based upon job classification, priority of function, job performance, individual qualifications and seniority. The Group and employees subject to lay off will be provided with at least two (2) weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resources Department within five (5) days of receipt of Professional Group MOU Page 28 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged, except that it may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two (2) years from the date of layoff. Individuals will be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five (5) days, or the offer will be made to the next person on the list. An individual who either does not respond or refuses three (3) consecutive offers will have his/her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of OC San. Light duty may consist of duties other than those normally performed by the employee and that are within the employee’s medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety, or that of others, OC San 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 OC San time and at OC San expense. An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position. This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for OC San business will be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1. Employees who are assigned by OC San management to perform the duties of an open, budgeted position at a higher level for a period of at least one hundred (100eighty (80) 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 8101st hour, and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Head and the Human Resources Department. The one hundred (100eighty (80)-hour eligibility period may be waived at the discretion of the General Manager. Time served in Professional Group MOU Page 29 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 higher level assignments shall be credited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Human Resources Department. It is the responsibility of each employee to keep the personal information in his/her files current, including home address, telephone number and person to contact in an emergency. ARTICLE 38. - BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post notices to OC San employees provided that: (a) no controversial matter which is critical or derogatory of OC San, its employees, officers or Directors may be posted; (b) nothing posted by OC San may be removed; (c) the Group will remove its notices after a reasonable length of time; and (d) only a reasonable number of notices will be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of three (3) employees covered by this Agreement and appointed by the Group will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time will be granted provided that the needs of OC San permit the time away from assigned work. ARTICLE 40. - USE OF OC SAN FACILITIES 40.1. OC San 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 OC San operations. The Group agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1. OC San 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, OC San 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 Professional Group MOU Page 30 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 any subject or matter contained in this Agreement. ARTICLE 42. - IMPASSE PROCEDURES 42.1. If either OC San or Group declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting will be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation, nor take any public position at any time concerning the issues. 42.2.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties’ differences be submitted to a factfinding panel as soon as practicable. The cost of a fact finder and other mutually incurred costs will be mutually shared by OC San and Group. 42.2.3. Board Actions: If the parties fail to resolve the impasse, the dispute will be sent to OC San Board of Directors for resolution. Each party will submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. - SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement will be declared invalid by any court or by any state or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on OC San, OC San and the Group will meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1. OC San will provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and OC San seal, at no cost to employees whose duties require that they wear uniforms. OC San will also provide lab coats as required by the lab managermanagement. 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 OC Professional Group MOU Page 31 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 San management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. 44.3. Employees working in divisions designated in SOP-102 Personal Protective Equipment (PPE) as eligible to receive a safety boot allowance shall receive either an annual or bi-annual voucher in the amount of $250 as applicable. ARTICLE 45. - SUBSTANCE ABUSE POLICY 45.1. OC San’s Substance Abuse Policy will apply to all Group members. OC San and the Group agree to meet and confer for any proposed revisions to the policy. OC San may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the Group prior to implementation. 45.2. Department of Transportation (DOT) Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver’s license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to OC San's Anti-Drug and Alcohol Program. OC San 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. OC San’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 46.1. New Employee Orientation 46.1.1. The Group will be allowed up to one half-hour each orientation session to communicate with Group-represented classifications to explain the rights and benefits as set forth in this Agreement. Human Resources staff will send to the Group representative, or designee, a notice of each new employee orientation session. The notice will be provided at least 10 days prior to the session, or as soon as practicable, and will include pertinent session details. 46.1.2. OC San will hold new employee orientation sessions on a regular basis or at least on a quarterly basis, given there are new Group-represented classifications. If there are no new hires in the Group-represented classifications for a scheduled session, OC San will notify the Group as soon as possible in advance of the session. 46.1.3. Human Resources staff will provide the Group with an electronic copy of the name, home address, personal email address, and personal cell phone number of all new Group-represented employees within 30 days of hire. Professional Group MOU Page 32 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 46.1.4. Human Resources staff will provide the Group with an electronic copy of the name, home address, personal email address, and personal cell phone number of all Group-represented employees at least every 120 days. 46.2. Dues Deductions 46.2.1. Remittance of the aggregate amount of all dues and other proper deductions made from the salaries of employees covered hereunder shall be made to AFSCME along with an electronic report detailing the employee's name, employee number, bargaining unit, classification title, work location, work phone, work e-mail, hire date, home address, home phone, home e-mail, cell phone, , and deduction amount(s) and type(s). 46.2.2. The Group shall indemnify, defend and hold the OC San harmless against any liability from any claims, demands, or other action related to OC San’s deduction of Union Dues, including claims related to the Union’s use of monies collected under these provisions. ARTICLE 47. – MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group, or who become members of the Group, shall remain members of the Group, except that any employee may withdraw his/her membership by written notice to the Group and OC San during the ten day period between ninety (90) and one hundred (100) days preceding the expiration of this agreement. ARTICLE 48. – PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, OC San agrees it will not lockout employees in this Group, and Group agrees that it will neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. OC San’s Workplace Violence and Weapons Policy will applyand Workplace Violence Prevention & Security SOP applies to all Group members. OC San and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. - RESIGNATION 51.1 Employees resigning from OC San are expected to give a minimum of two (2) weeks advanced written notice prior to leaving. OC San may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. Voluntary written resignation of employment with OC San is automatically deemed irrevocable after seventy-two (72) hours from OC San’s receipt of the resignation except by approval of the Human Resources Department. Professional Group MOU Page 33 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 ARTICLE 52. (This article intentionally left blank) Professional Group MOU Page 34 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 SIGNATURE PAGE 2022 – 2025 – 2028 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE PROFESSIONAL GROUP Executed: ________________________________ PROFESSIONAL GROUP ORANGE COUNTY SANITATION DISTRICT Russell Maitland, Business Representative, AFSCME Council 36 (Affiliate of SPMG) Laura Drottz Kalty, Lead Negotiator Larry Roberson, Senior Contracts Administrator Celia ChandlerLaura Maravilla, Director of Human Resources Marc Brown, Principal StaffIT Analyst Laura MaravillaThys DeVries, Human Resources & Risk Manager Angela Brandt, AccountingBen Bewley, Maintenance Supervisor Andrew Nau, Human Resources Supervisor Nick OswaldMike Oberly, Maintenance SupervisorSpecialist Janine Aguilar, Human Resources Supervisor Dickie Fernandez, Senior Engineer Thys DeVriesStephanie Barron, Principal Human Resources Analyst Stephanie Barron, Senior Human Resources Analyst Brian Finkelstein, Senior Engineer Professional Group MOU Page 35 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 APPENDIX A Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component PPO High Deductible Health Plan In-Network Non-Network In-Network Non-Network Deductible $150 / $450 $1,400 / $2,800 650 / $3,300 Annual Out-of- Pocket Max/Member $2,000 $3,000 $2,500 3,400 $5,000 Annual Out-of- Pocket Max/Family $4,000 $6,000 $5,000 $10,000 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 Not Covered Inpatient Hospitalization 10% 30% + $500 10% 30% (up to $600/day, non-emergency) Outpatient Hospitalization/Surgery 10% 30% 10% 30% (up to $350/admit) Emergency Room $100 / Visit + 10% (copay waived if admitted) $100 / Visit + 10% (copay waived if admitted) Infertility Benefits Not Covered Not Covered Urgent Care $15/Visit 30% 10% 30% Chiropractic $15 / Visit (30 visits/year) 30% (30 visits/year) 10% / Visit (30 visits/year) 30% / Visit (30 visits/year) Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic / Brand / Non-Preferred Brand Generic / Brand/ Non-Preferred Brand Generic / Brand / Non-Preferred Brand Retail $5 / $20 / $35 (30-day supply) 50% of the prescription drug maximum allowed amount & costs in excess up to $250 per prescription $10 / $25 / $40 after deductible (30-day supply) $10 plus 25% / $25 plus 25% / $40 plus 25% (30-day supply) Mail Order $5 / $40 / $70 (90-day supply) Not Covered $20 / $50 / $80 after deductible (90-day supply) Not Covered Professional Group MOU Page 36 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 1 Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions. The information contained in Summary Plan Descriptions (SPDs) and Evidence of Coverage (EOC) booklets prevails. Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component Anthem HMO Kaiser HMO Kaiser Bronze Deductible None None $5,000 Individual $10,000 Family Annual Out-of- Pocket Max/Member $1,500 $1,500 $6,250 Annual Out-of- Pocket Max/Family $3,000 $3,000 $12,500 Major Medical Physician Office Visit $15 / Visit $15/ Visit $60/ Visit Specialist Office Visit $15 / Visit $15/ Visit $70/ Visit Preventive Care No Charge No Charge No Charge Inpatient Hospitalization $100 Admit $100 Admit 30% Outpatient Hospitalization/Surgery $50 Admit $15 Co-pay (per procedure) 30% Emergency Room $100 / Visit (waived if admitted) $100 / Visit (waived if admitted) $300 / Visit (waived if admitted) Infertility Benefits Status Quo Status Quo Not Covered Urgent Care $15 / Visit $15 / Visit $60 / Visit Chiropractic $15 / Visit (60 visits/year) * $10 / Visit (30 visits/year) Not Covered Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic / Brand/ Non- Preferred Brand Generic / Brand Generic / Brand Retail $5 / $20 / $35 (30-day supply) $5 / $20 (30-day supply) $15 / $50 medical deductible applies (30-day supply) Mail Order $5 / $40 / $70 (90-day supply) $5 / $20 (100-day supply) $30 / $100 medical deductible applies (100-day supply) 1 Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions. The information contained in Summary Plan Descriptions (SPDs) and Evidence of Coverage (EOC) booklets prevails. * For chiropractic services through the American Specialty Health (ASH) Network, the copay is $10 with a maximum of 30 visits in a calendar year for covered services. Professional Group MOU Page 37 of 356 8971409.1 OR040-031 8971409.112829516.10 OR040-031 048 STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4385 Agenda Date:7/23/2025 Agenda Item No:5. FROM:Rob Thompson, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: ACQUISITION OF RIGHTS-OF-WAY AND EASEMENTS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No.OC SAN 25-09 entitled,“A Resolution of the Board of Directors of Orange County Sanitation District Authorizing the General Manager to Acquire Project-Related Permanent Easements,Rights-of-Way,and Other Interests in Real Property of $150,000 or Less and to Acquire Temporary Construction Easements of Less than Five Years for Projects Approved by the Board of Directors; and Repealing Resolution No. OCSD 98-44.” BACKGROUND The Orange County Sanitation District (“OC San”)may acquire any interest in real property necessary or convenient for the construction,maintenance,and operation of a sewerage system as a sanitation district pursuant to the California Health and Safety Code section 4740.Additionally, Government Code Section 27281 permits public agencies,by resolution,to authorize one or more officers or agents to accept and consent to deeds or grants of interests in real property or easements on its behalf. Resolution No.OCSD 98-44 was adopted on August 26,1998,updating authority provided to the General Manager to acquire right-of-way and easements.Ordinance No.OC SAN-61 passed and adopted by the Board on July 26,2023,authorized the General Manager (“GM”)to approve and execute non-real estate contracts and applicable renewals for budgeted procurements that cost One Hundred Fifty Thousand Dollars ($150,000) or less (“Contract Threshold”). Since 1998,OC San has undergone organizational changes as well as operational changes that make the current Resolution outdated.Staff proposes to update the Resolution to reflect these organizational changes,project costs,and the delegation of authority changes with respect to the acquisition of easements,right-of-way,and other real property interests,especially where temporary construction easements are concerned,for project development.Specifically,staff finds that it is in the best interest of OC San to increase the authority of the GM to acquire permanent easements, right-of-way,and other real estate interests costing One Hundred Fifty Thousand Dollars ($150,000) or less,consistent with the Contract Threshold for non-real estate contracts.Staff proposes to delegate the General Manager authority to acquire temporary construction easements of any value Orange County Sanitation District Printed on 7/16/2025Page 1 of 3 powered by Legistar™ File #:2025-4385 Agenda Date:7/23/2025 Agenda Item No:5. delegate the General Manager authority to acquire temporary construction easements of any value with terms of five (5) years or less in connection with Board-approved projects. RELEVANT STANDARDS ·Comply with Resolution No. OCSD 98-44 ·Comply with Ordinance No. OC SAN-61 (Purchasing Ordinance) ·Comply with California Health and Safety Code Section 4740 ·Comply with Government Code Section 27281 PROBLEM Resolution No.OCSD 98-44 limits the GM’s authority to purchase rights-of-way and easements to $100,000,which no longer reflects current project costs or operational realities.Additionally, Resolution No.OCSD 98-44 subjects OC San’s acquisition of temporary construction easements to the same constraints.These constraints can delay projects causing inefficiencies when timely acceptance of easements is needed to support construction schedules and continuity of OC San operations. As an example,for each easement exceeding the GM’s purchasing limit,staff must prepare a staff report and other exhibits for placement on an upcoming Board agenda.Depending on the Board meeting schedule,it can take up to three weeks (if not more)when a staff report and Board authorization are required.Increasing the purchase limits and authorizing acquisition of temporary easements and interests in real estate will place OC San in a much-improved position to ensure operational continuity. PROPOSED SOLUTION Adopt the attached Resolution which authorizes the GM to (1)acquire easements,right-of-way,and other interests in real property for One Hundred Fifty Thousand ($150,000)Dollars or less where necessary for projects approved by the Board of Directors,where related to the construction, installation,operation,maintenance,repair,or replacement of OC San facilities or infrastructure, without prior submittal of such acquisitions to the Board of Directors for approval,and (2)acquire OC San temporary construction easements that are (a)necessary for the construction of projects approved by the Board of Directors for the construction,installation,operation,maintenance,repair, or replacement of OC San facilities or infrastructure and (b) have a term not exceeding five (5) years. Delegating this authority to the General Manager conforms real estate acquisition limits to OC San’s other contract limits and significantly enhances the agency’s ability to advance projects requiring temporary construction easements.To promote transparency and accountability,the Resolution also requires the GM to provide quarterly reports to the Board identifying all acquired easements,rights-of -way, or other real estate interests and their material terms. TIMING CONCERNS Major 2025-26 projects will require 2-3 additional months to bring into effect if Board approval of each temporary construction easement is required. Orange County Sanitation District Printed on 7/16/2025Page 2 of 3 powered by Legistar™ File #:2025-4385 Agenda Date:7/23/2025 Agenda Item No:5. RAMIFICATIONS OF NOT TAKING ACTION Without an updated resolution,the GM lacks clearly defined preauthorization to acquire temporary easements or other real property interests on behalf of OC San without Board of Director approval. Requiring the GM to seek Board approval for such offers delays time-sensitive project activities, complicates project delivery,and has the potential to interfere with the continuity of OC San operations.Updating the delegation to authorize purchases up to $150,000 for Board-approved projects will further streamline property acquisition processes and reduce administrative obstacles that could otherwise hinder project schedules. PRIOR COMMITTEE/BOARD ACTIONS August 1998 -Adopted Resolution No.OCSD 98-44 Authorizing the District’s General Manager to purchase Rights-Of-Way and Easements Costing $100,000.00 or Less for Projects Approved by the Board of Directors CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) FINDINGS This Resolution is not subject to CEQA pursuant to Sections 15060(c)(2)(the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment)and 15060(c)(3)(the activity is not a project as defined in Section 15378)of the CEQA Guidelines (Chapter 3 to Title 14 of the California Code of Regulations)because it has no potential for resulting in physical change to the environment, directly or indirectly. FINANCIAL CONSIDERATIONS There is no direct fiscal impact by amending the authority levels of OC San’s Purchasing Ordinance as it pertains to Easements.Amending the GM’s authority is intended to make the acquisition and purchasing protocols more streamlined and efficient,thereby saving administrative staff time. Delaying projects pending the acquisition of temporary construction easements almost inevitably leads to an escalation in contract pricing. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 25-09 Orange County Sanitation District Printed on 7/16/2025Page 3 of 3 powered by Legistar™ OC SAN 25-09-1 RESOLUTION NO. OC SAN 25-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL MANAGER TO ACQUIRE PROJECT-RELATED PERMANENT EASEMENTS, RIGHT- OF-WAY, AND OTHER INTERESTS IN REAL PROPERTY FOR $150,000 OR LESS AND TO ACQUIRE TEMPORARY CONSTRUCTION EASEMENTS OF LESS THAN FIVE YEARS FOR PROJECTS APPROVED BY THE BOARD OF DIRECTORS, AND REPEALING RESOLUTION NO. OCSD 98-44 WHEREAS, the Orange County Sanitation District (“OC San”) is a governmental agency formally organized under the laws of the State of California (Government Code §§ 6500 et seq.); WHEREAS, OC San may acquire any interest in real property necessary or convenient for the construction, maintenance, and operation of a sewerage system as a sanitation district pursuant to the California Health and Safety Code section 4740; WHEREAS, California Government Code section 27281 provides that a governmental agency may, by resolution, authorize one or more of its officers or agents to acquire, accept, and consent to deeds or grants conveying an interest in or easement upon real estate for public purposes; WHEREAS, OC San has heretofore authorized the General Manager to purchase, without approval by the Board, supplies, services and equipment to carry out Board policy; WHEREAS, Resolution No. OCSD 98-44 passed and adopted by the Board on August 26, 1998, specifically authorized the General Manager (or his designee) to purchase easements that cost One Hundred Thousand Dollars ($100,000) or less which are necessary for projects approved by the Board without prior submittal of such purchases to the Board for approval; WHEREAS, Ordinance No. OC-SAN-61 passed and adopted by the Board on July 26, 2023, authorized the General Manager to approve and execute non-real estate contracts and applicable renewals for budgeted procurements for One Hundred Fifty Thousand Dollars ($150,000) or less (“Contract Threshold”); WHEREAS, it is frequently necessary to acquire rights-of-way and easements to facilitate construction projects which have been approved by the Board of Directors, sometimes with very little time to avoid project delays; OC SAN 25-09-2 WHEREAS, requiring formal action from OC San’s Board of Directors for each conveyance for project construction can result in administrative delays and inefficiencies that impede timely project delivery; WHEREAS, the Board of Directors finds that the acquisition of permanent easements, right-of-way, and other real estate interests costing One Hundred Fifty Thousand Dollars ($150,000.00) or less should be left to the discretion of the General Manager for the timely completion of OC San projects; WHEREAS, the Board of Directors finds that the acquisition of temporary construction easements of any value with a term of five (5) years or less should be left to the discretion of the General Manager; WHEREAS, the Board of Directors has reviewed this Resolution and now desires to (i) authorize the General Manager to consent to the acquisition of permanent easements, right-of-way, and other real property interests costing One Hundred Fifty Thousand Dollars ($150,000) or less, consistent with the Contract Threshold, and (ii) to authorize the General Manager to acquire temporary construction easements of any value with a term of five (5) years or less, in order to facilitate efficient construction activities for projects approved by the Board of Directors. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The above recitals are true and correct and are hereby incorporated as findings. Section 2. Authorization to Acquire Easements and Right-of-Way. That the General Manager, or the General Manager’s designee, is hereby authorized to acquire easements, right-of-way, and other interests in real property that cost One Hundred Fifty Thousand ($150,000.00) Dollars or less, necessary for projects approved by the Board of Directors related to the construction, installation, operation, maintenance, repair, or replacement of OC San facilities or infrastructure, without prior submittal of such purchases to the Board of Directors for approval. All such acquisitions shall be executed in a form approved by General Counsel. Section 3. Authorization to Acquire Temporary Construction Easements. That the General Manager, or the General Manager’s designee, is hereby authorized to acquire deeds or grants conveying to OC San temporary construction easements that are (i) necessary for the construction of projects approved by the Board of Directors for the construction, installation, operation, maintenance, repair, or replacement of OC San facilities or infrastructure and (ii) have a term not exceeding five (5) years. Such acquisitions may be made without prior submittal to the Board of Directors for approval. This delegation further authorizes the General Manager, or their designee, to take any actions reasonably necessary, including execution of any related OC SAN 25-09-3 documentation, to facilitate recordation consistent with Government Code section 27281. All such documentation shall be executed in a form approved by General Counsel. Section 4. Reporting of Easements. The General Manager shall report to the Board of Directors all right-of-way, easements, and other interests purchased or accepted pursuant to this delegation of authority no less than on a quarterly basis. This report shall include the location, purpose, and relevant terms of the purchase or acceptance. Section 5. Severability. If any section, subsection, sentence, clause, or phrase in this Resolution is for any reason held invalid, the validity of the remainder of this Resolution shall not be affected thereby. The Board of Directors hereby declares that it would have approved this Resolution, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, or the application thereof, are held invalid. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption. Section 7. California Environmental Quality Act (“CEQA”). The Board finds that this Resolution is not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines (Chapter 3 to Title 14 of the California Code of Regulations) because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 8. Conflicting Resolutions. This Resolution shall supersede and rescind any prior resolutions or portions thereof only to the extent they conflict with or are contrary with the provisions set forth herein. To this end, Resolution No. OCSD 98- 44 is hereby repealed. OC SAN 25-09-4 PASSED AND ADOPTED at a Regular meeting of the Board of Directors held July 23, 2025. ______________________________ Ryan P. Gallagher Board Chairman ATTEST: ______________________________ Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: ______________________________ Scott C. Smith General Counsel OC SAN 25-09-5 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. OC SAN 25-09 was passed and adopted at a regular meeting of said Board on the 23rd day of July 2025, 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 23rd day of July 2025. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4375 Agenda Date:7/23/2025 Agenda Item No:CS-1 FROM:Robert Thompson, General Manager SUBJECT: CONFERENCE WITH LABOR NEGOTIATORS - GOVERNMENT CODE SECTION 54957.6 RECOMMENDATION: Convene in Closed Session: Designated Representatives:General Manager Robert Thompson,Assistant General Manager Lorenzo Tyner, and Director of Human Resources Laura Maravilla. Unrepresented Employees: Confidential Group, Manager Group, and Executive Managers Group. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board,the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. 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. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 7/15/2025Page 1 of 1 powered by Legistar™ Scott C. Smith (949) 263-6561 scott.smith@bbklaw.com 18101 Von Karman Avenue.Suite 1000.Irvine, CA 92612 Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum To: Honorable Chair and Members of the Orange County Sanitation District Steering Committee From: General Counsel Date: July 23, 2025 Re: Closed Session Items The Steering Committee will hold a closed session on July 23, 2025, for the purpose of holding a conference with its labor negotiators regarding employee compensation, terms of employment, and benefits. The closed session will be held pursuant to the authority of California Government Code section 54957.6. Respectfully submitted, SCOTT C. SMITH STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4384 Agenda Date:7/23/2025 Agenda Item No:CS-2 FROM:Laura Maravilla, Director of Human Resources SUBJECT: PUBLIC EMPLOYEE PERFORMANCE EVALUATION 54957(B)(1) RECOMMENDATION: Convene in Closed Session: Public Employee Performance Evaluation Number of Employees: 1 ·General Manager BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board,the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. 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. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 7/15/2025Page 1 of 1 powered by Legistar™ Scott C. Smith (949) 263-6561 scott.smith@bbklaw.com 18101 Von Karman Avenue.Suite 1000.Irvine, CA 92612 Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum To: Honorable Chair and Members of the Orange County Sanitation District Steering Committee From: General Counsel Date: July 23, 2025 Re: Closed Session Items The Steering Committee will hold a closed session on July 23, 2025, for the purpose of considering the performance evaluation of the General Manager of the Orange County Sanitation District. The closed session will be held pursuant to the authority of California Government Code section 54957(b)(1). Respectfully submitted, SCOTT C. SMITH STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4412 Agenda Date:7/23/2025 Agenda Item No:CS-3 FROM:Ryan P. Gallagher, Board Chairman SUBJECT: CONFERENCE WITH LABOR NEGOTIATORS - GOVERNMENT CODE SECTION 54957.6 RECOMMENDATION: Convene in Closed Session: Designated Representatives:Board Chairman Ryan Gallagher and Board Vice-Chairman Jon Dumitru Unrepresented Employee: General Manager BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board,the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. 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. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 7/16/2025Page 1 of 1 powered by Legistar™ Scott C. Smith (949) 263-6561 scott.smith@bbklaw.com 18101 Von Karman Avenue.Suite 1000.Irvine, CA 92612 Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum To: Honorable Chair and Members of the Orange County Sanitation District Steering Committee From: General Counsel Date: July 23, 2025 Re: Closed Session Items The Steering Committee will hold a closed session on July 23, 2025, for the purpose of holding a conference with its labor negotiators regarding employee compensation, terms of employment, and benefits for the Orange County Sanitation District’s General Manager. The closed session will be held pursuant to the authority of California Government Code section 54957.6. Respectfully submitted, SCOTT C. SMITH STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4383 Agenda Date:7/23/2025 Agenda Item No:CS-4 FROM:Robert Thompson, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 3 A. Michael Oberly v. Orange County Sanitation District, Orange County Superior Court and Does 1-25, Orange County Superior Court Case No. 30-2025-01489491-CU-OE-CJC. B. Julie Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30- 2025-01484899-CU-WT-CJC. C. Joe Lara v. Orange County Sanitation District, Orange County Superior Court Case No. 30- 2025-01451615-CU-OE-CJC. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board,the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. 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. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 7/15/2025Page 1 of 1 powered by Legistar™ Scott C. Smith (949) 263-6561 scott.smith@bbklaw.com 18101 Von Karman Avenue.Suite 1000.Irvine, CA 92612 Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum To: Honorable Chair and Members of the Orange County Sanitation District Steering Committee From: General Counsel Date: July 23, 2025 Re: Closed Session Items The Steering Committee will hold a closed session on July 23, 2025, for the purpose of conferring with its legal counsel regarding existing litigation to which the Orange County Sanitation District is a party. The titles of the three cases to be discussed are: 1. Michael Oberly v. Orange County Sanitation District and Does 1-25, Orange County Superior Court Case No. 30-2025-01489491-CU-OE-CJC; 2. Julie Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01484899-CU-WT-CJC; and 3. Joe Lara v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01451615-CU-OE-CJC. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, SCOTT C. SMITH ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LOS Level Of Service RFP Request For Proposal APWA American Public Works Association MGD Million Gallons Per Day RWQCB Regional Water Quality Control Board AQMD Air Quality Management District MOU Memorandum of Understanding SARFPA Santa Ana River Flood Protection Agency ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy Act SARWQCB Santa Ana Regional Water Quality Control Board CARB California Air Resources Board NGOs Non-Governmental Organizations SAWPA Santa Ana Watershed Project Authority CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCADA Supervisory Control And Data Acquisition CCTV Closed Circuit Television NWRI National Water Research Institute SCAP Southern California Alliance of Publicly Owned Treatment Works CEQA California Environmental Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality Management District CIP Capital Improvement Program OCCOG Orange County Council of Governments SOCWA South Orange County Wastewater Authority CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SRF Clean Water State Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and Health Administration TDS Total Dissolved Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction Services Agreement TMDL Total Maximum Daily Load FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement TSS Total Suspended Solids gpd gallons per day PFAS Per- and Polyfluoroalkyl Substances WDR Waste Discharge Requirements GWRS Groundwater Replenishment System PFOA Perfluorooctanoic Acid WEF Water Environment Federation ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation IERP Integrated Emergency Response Plan POTW Publicly Owned Treatment Works WIFIA Water Infrastructure Finance and Innovation Act JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the Nation Act LAFCO Local Agency Formation Commission PSA Professional Services Agreement WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint 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 OCSD 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 GWRS process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. 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. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. 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. 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. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS 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. OCSD’s service area is in the Santa Ana River Watershed.