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CC Resolution No. 9896RESOLUTION NO. 98a0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CUPERTINO AND THE OPERATING ENGINEERS LOCAL NO. 3 WHEREAS, several discussions have been held over proposals concerning wages, hours, and other terms and conditions of employment between representatives of the City ~and of the ~)perating Engineers Local Union No. 3, the recognized majority representative of the Public Works Unit; and WHEREAS, the agreement mutually obtained through these discussions has been recorded in a Memorandum of Understanding signed by both parties, which memorandum has been submitted to the City Council for approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby adopt the attached Memorandum of Understanding between the City of Cupertino and the Operating Engineers Local No. 3. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7th day of July, 1997, by the following vote: Vote Members of the City Council AYES: Burnett, Chang, Dean, Sorensen, NOES: None ABSENT: None ABSTAIN: None Mayor Bautista ATTEST: APPROVED: MEMORANDUM OF UNDERSTANDING City of Cupertino and Operating Engineers Local No. 3 July 1, 1997 - June 30, 1999 OPERATING ENGINEERS Table of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 SECTION 6 SECTION 7 SECTION 8 SECTION 9 SECTION 10 SECTION 11 DEFINITIONS 1 1.1 City 1 1.2 Union 1 1.3 Employee 1 UNION RECOGNITION 1 NON-DISCRIMINATION 2 REPRESENTATION RIGHTS 2 EMPLOYEE RIGHTS 2 CITY RIGHTS 3 PERMANENT TRANSFERS 3 NOTIFICATION OF PROPOSED CHANGE 3 HOURS OF WORK: OVERTIME 3 9. I Hours of Work Defined 3 9.2 Schedules 3 9. 3 Rest Periods 4 9. 4 Overtime 4 9. 5 Payment of Overtime 4 9. 6 Compensatory Time Off 4 9. 7 Leave Accruals 4 COMPENSATION FOR SERVICES 5 10.1 1997-1998 Salary_ Ranges 5 10.2 1998-1999 Salary_ Ranges 5 10. 3 Out-Of-Class 5 10.4 Standby Compensation 6 10.5 Callback Pay 6 10.6 Mileage Reimbursement 6 10. 7 Probationary Period/Salary Advancement 6 10.8 Special Skills Compensation ~ Welding 6 PUBLIC EMPLOYEES RETIREMENT CONTRIBUTION 6 SECTION 12 SECTION 13 SECTION 14 SECTION 15 SECTION 16 SECTION 17 SECTION 18 SECTION 19 SECTION 20 SECTION 21 SECTION 22 SECTION 23 SECTION 24 HEALTH & WELFARE BENEFITS INSURANCE 13.1 Long Term Disability 13.2 Life Insurance PAID ABSENCES 14.1 Fixed Holidays 14.1.1 Holiday Pay 14.2 Floating Holiday Leave 14.3 Vacations 14.3.1 Vacation Accrual Rate 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 Sick Leave Personal Leave Bereavement Leave Military Leave Pregnancy Disability Leave Adoption Leave Absence Notification Catastrophic Leave Family Leave SICK LEAVE CONVERSION SAFETY EQUIPMENT TRAINING AND TUITION REIMBURSEMENT 17.1 Safety/Training Committee TEMPORARY DISABILITY BENEFITS 18.1 Use of Sick Leave to Supplement Temporary Disability Payments DISCIPLINARY ACTION LAYOFFS REINSTATEMENT MAINTENANCE WORKER III POSITION GRIEVANCE PROCEDURE IMPASSE PROCEDURE 24.1 Impasses 7 7 7 7 8 8 8 8 9 9 10 10 10 10 10 11 11 11 13 13 14 14 14 14 15 15 15 16 17 17 SECTION 25 SECTION 26 SECTION 27 SECTION 28 ATTACHMENT CONTINUATION OF BENEFITS SEPARABILITY RATIFICATION 2 7.1 Extended Benefits TERM ELMWOOD WORK FURLOUGH PROGRAM 18 18 18 20 25 MEMORANDUM OF UNDERSTANDING Between CITY OF CUPERTINO and OPERATING ENGINEERS LOCAL UNION NO. 3, AFL-CIO This agreement, entered into the 1st day of July, 1997 between the official representatives of the City of Cupertino, hereinafter referred to as "City", and the official representatives of the Operating Engineers Local Union No. 3, AFL-CIO, hereinafter referred to as "Union", sets forth the agreement resulting from the several discussions held between the two parties concerning the wages, hours, and other terms and conditions of employment for the employees of the Public Works Unit of the City, for which the Union is the recognized sole and exclusive majority representative. This agreement represents the entire and integrated agreement between the City and the Union and supersedes all prior representations and agreements, whether written or oral. General Provisions SECTION 1: DEFINITIONS 1.1 City - the City of Cupertino, a municipal corporation. 1.2 Union - the Operating Engineers Local Union No. 3 1.3 Employee - All employees whose positions are contained in the Public Works Unit recognized pursuant to Section 2.52.470 of the Cupertino Municipal Code. SECTION 2: UNION RECOGNITION Pursuant to Section 2.52.480 of the City Code and applicable State law, the Union is recognized by the City as majority representative of the employees within the Public Works Unit consisting of the following classifications as well as any new classifications which may be appropriate for this unit as determined by the Municipal Employee Relations Officer: Equipment Mechanic Maintenance Worker I Maintenance Worker II Maintenance Worker III Street Lighting Worker Water Utility Worker I Water Utility Worker II 2.1 The City shall promptly notify the Union of its decision to implement any and all new classifications pertaining to work of a nature performed by employees in the bargaining unit. SECTION 3: NON-DISCRIMINATION In accordance with the City of Cupertino Affirmative Action Plan, all employees shall have equal opportunity in employment without regard to race, religion, political affiliation, national origin, sex, handicap, sexual orientation or age. SECTION 4: REPRESENTATION RIGHTS 4.1 The City and Union shall not interfere with, intimidate, restrain, coerce or discriminate against employees of the City because of their exercise or representation right under Section 3502 of the Government Code. 4. 2 Business Representatives of the Union may have access to any employee or employees presenting a grievance and employees have the right to have the Union Business Representative represent him or her at all stages of disciplinary action. 4. 3 The Union may select one (1) employee for each location where employees covered by this Memorandum are normally assigned as Union Steward. 4. 4 In addition to his/her regularly assigned work, the Union Steward shall be permitted reasonable time during working hours to notify the Business Representative through the most rapid means appropriate and available of any alleged violations of this Memorandum. Employees are authorized to contact their Union Steward during working hours to report an alleged grievance or violation of this Memorandum. 4. 5 The City agrees to deduct on a bi-weekly basis the monthly Union membership dues from the earned wages of each employee within the bargaining unit upon receipt of signed authorization to do so from each employee concerned. The Union agrees to provide a monthly list of active membership desiring dues deductions to the City. Terminations and other personnel changes affecting dues payment will be provided to the Union by the City. 4. 6 The City and the Union desire to work towards a good working environment which includes productivity and respect for each individual regardless of classification or representation. SECTION 5: EMPLOYEE RIGHTS Employees of the City shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations including wages, hours, and other terms and conditions of employment. Employees of the City also shall have the right to refuse to join or participate in the activities of employee organizations and shall have the right to represent themselves individually in their employment relations with the City. No employee shall be interfered with, intimidated, restrained, coerced or discriminated against because of his/her exercise of these rights. 2 SECTION 6: CITY RIGHTS The rights of the City include, but are not limited to, the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of services; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of governmental operations; determine the content of job classifications; 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. The City shall give forty-five (45) days prior written notice to the Union of the intent and anticipated impact or proposed contracts for work now being done or new work that could be done by job classifications represented by the Union. SECTION 7: PERMANENT TRANSFERS Employees shall be notified in writing of any permanent transfer from one division to another five (5) days prior to the effective date. SECTION 8: NOTIFICATION OF PROPOSED CHANGE City agrees to serve written notice upon the Union of any intent to change or alter any ordinance, rule, resolution or regulation affecting the recognized employee organization on matters relating to the scope of representation. Upon receipt of the written notification of intended change, the parties will meet at a date not less than fifteen (15) days following receipt of intent. After notification, the parties may mutually agree that the Meet and Confer provisions are satisfied by the written notice. In cases of emergencies when the City determines that an ordinance, rule, resolution or regulation must be adopted immediately without prior notice of meeting with the Union, the City shall provide such notice and opportunity to meet at the earliest practical time following the adoption of such ordinance, rule, resolution regulation consistent with the agreement. SECTION 9: HOURS OF WORK: OVERTIME 9.1 Hours of Work Defined Hours worked shall include all time not under the control of the employee whether such hours are worked in the City's work place, or in some other place where the employee is carrying out the duties of the City. The normal work week shall be 40 hours in seven days with two consecutive days off. 9. 2 Schedules It will be a management responsibility to schedule the hours of work for each employee covered by this agreement. Except in unforeseen circumstances, changes in employee's hours of work will be made after ten days prior notice. No non-emergency work will be scheduled for weekends, when a holiday falls in conjunction with a weekend. Volunteers will be solicited for any shift which begins after 9:00 a.m. If there are no volunteers, the permanent employee with the least seniority will be assigned for a maximum period of twelve months. The City will endeavor to make four month assignments whenever possible. The City further agrees to review for implementation any proposal by the Union for non-traditional schedules commonly referred to as flex-time. Such a proposal must address the issues of fatigue, safety, traffic and neighborhood intrusion. 9. 3 Rest Periods Each employee shall be granted a rest period of fifteen minutes during each work period of more than three hours duration. No wage deduction shall be made nor time off charged against employees taking authorized rest periods, nor shall any rights or overtime be accrued for rest periods not taken. 9. 4 Overtime Overtime shall be defined as any work in excess of Section 9.1 above. Holidays and paid time off shall count toward the accumulation of the work week. Overtime work for the City by an employee shall be authorized in advance by the Department Head or their designee. In the event of unforeseen circumstances, overtime shall be approved after the work is completed. 9. 5 Payment of Overtime All approved overtime work performed by employees shall be paid at the rate of one and one-half (1 1/2) times the normal rate of pay. Work performed on regularly scheduled days off, City Holidays or during an employee's scheduled vacation shall be considered to be overtime and paid accordingly. 9. 6 Compensatory_ Time Off At the employee's discretion, compensatory time (CTO) may be granted for overtime worked at the rate of time and one-half for each hour worked in lieu of compensation in cash. Employees who have previously earned CTO, shall be allowed to schedule CTO at the employee's discretion provided (1) that prior supervisory approval has been obtained and (2) the request is made in writing. CTO may be accrued for up to 60 hours. Any CTO earned exceeding 60 hours will be paid at the rate of time and one-half. An employee may be paid for any or all accumulated CTO during the first pay period in December of each year. A request must be made in writing and submitted to Human Resources by December 1 identifying the number of hours of CTO for which payment is requested. 9. 7 Leave Accruals An employee shall not accrue vacation or sick leave credits during a pay period if off without pay for more than 40 hours during said pay period. SECTION 10: COMPENSATION FOR SERVICES 10.1 1997-98 Salary_ Range The following approximate monthly salary ranges will apply for each classification effective at the beginning of the pay period in which July 1, 1997 occurs. Classification Equipment Mechanic Maintenance Worker I Maintenance Worker II Maintenance Worker III Street Lighting Worker Water Utility Worker I Water Utility Worker II Approximate Monthly Salary Range Pay Grade $3310-$4022 705 $2728-$3316 701 $2864-$3484 702 $3159-$3842 703 $3009-$3658 706 $2728-$3316 701 $3069-$3730 704 The City agrees to pay a 10% differential to employees assigned to lead responsibilities for the work furlough program. Other employees assigned to the work furlough program will receive a 5% pay differential. The City agrees to conduct a total compensation survey of all the cities in Santa Clara County. The City further agrees to make salary adjustments prior to any annual adjustment made prior to a successor agreement to ensure Cupertino employees' total compensation is within the highest four cities. 10.2 1998-99 Salary Ranges A total compensation adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers for San Francisco, Oakland, San Jose (Bay Area) for the May 1997/May 1998 period will be made effective at the beginning of the pay period in which July 1, 1998 occurs, providing said total compensation adjustment is not less than three percent (3.0%) and not more than five percent (5.0%) 10.3 Out-of-Class Temporary assignments to a position assigned to a classification in a higher pay grade shall be compensated at a rate seven and one half percent greater than that of the regular position, for the number of hours so assigned. The temporary assignment shall be authorized in writing by the Supervisor or Superintendent of Public Works. No employee shall work in a higher classification without written notice. A copy of the authorization shall be submitted with the timesheet for the affected pay period. No increase in the wage rates shall apply in instances of Maintenance Worker I positions temporarily assigned to positions of Maintenance Worker II classification. 10. 4 Standby Compensation Employees who are required to be available during their off-shift hours for possible recall for emergency service shall be compensated at the rate of $140 per employee per 128 hours so assigned. Minimum manning and skill qualifications for standby assignment shall be determined by the City. Assignment of such standby duty shall be rotated on an equal basis among all qualified employees who reside in an area that provides an acceptable response time as determined by the City. 10. 5 Callback Pay If any employee is called or required to report for assigned emergency or other duties during the period of the close of the regular work day and the start of the next following work day, compensation shall be paid at one and one-half (1 1/2) times the normal rate of the period the employee is required to be available at the work station, and for travel time in connection therewith to and from the employee's customary residence at one and one-half (1 1/2) times. Under such circumstances a minimum payment will be made equivalent to two hours at one and one-half (1 1/2) times the normal rate of pay. 10. 6 Mileage Reimbursement Employees who are required to use their personal vehicles for City Business shall be reimbursed for such use at the rate established by the IRS. 10. 7 Probationary Period/Salary Advancement Effective June 17, 1996, the probationary period will be twelve months of paid employment. Employees will advance to the next step of the salary range upon successful completion of the probationary period. Advancement to subsequent salary steps will be based on merit (satisfactory evaluation) and are scheduled annually thereafter. 10. 8 Special Skills Compensation - Welding An employee possessing a valid Certificate of Welding, qualified in mild steel, pipe, stainless steel, and aluminum, will be eligible for two and one half percent (2.5%) premium pay for each hour worked when assigned to perform welding on the following "public liability" and/or "public safety" tasks: a. Playground equipment d. Welding and installing cranes b. Trailer hitches e. Water tanks c. Trailers f. Other welding tasks assigned SECTION 11: PUBLIC EMPLOYEES RETIREMENT CONTRIBUTION The City agrees to pay the employee's contribution rate to the Public Employees Retirement System not to exceed 7.0% of applicable salary. SECTION 12: HEALTH AND WELFARE BENEFITS The City agrees to make available a plan of comprehensive health and welfare benefits for eligible employees, as well as those provided by the Operating Engineers Health and Welfare Trust Fund for Northern California. Any such benefits program must have the continued approval of the Board of Administration, Public Employees Retirement System. For each participating employee, the City shall contribute toward premium cost the amount of $462.50 per month during the term of this agreement. Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. In instances where the premium for the insurance plan selected is less than the City's maximum premium contribution, the City agrees to pay a sum equal to the difference to a deferred compensation plan in the employee's nalBe. SECTION 13: LONG TERM DISABILITY The City shall provide Long Term Disability (LTD) insurance for employees. LTD income protection coverage shall be up to $6,000 of covered monthly salary. Employees may use sick leave and/or vacation leave to supplement lost salary during the 60 day elimination period. 13.1 Life Insurance The City shall provide life insurance and accidental death and dismemberment coverage for each employee in the amount of five times annual salary to a maximum benefit of $250,000. Employees may be eligible to purchase additional life insurance subject to the provisions of the insurance policy. SECTION 14: PAID ABSENCES 14.1 Fixed Holidays The City shall provide the following fixed paid holidays for eligible employees covered by this agreement: 1. New Year's Day 2. Washington's Birthday 3. Memorial Day 4. Independence Day 5. Labor Day 6. Veteran's Day 7. Thanksgiving Day 8. Day Following Thanksgiving 9. Christmas Eve (1/2 shift) 10. Christmas Day 11. New Year's Eve (1/2 shift) 12. Martin Luther King Day When a holiday falls on a Sunday, the following Monday shall be observed as the non-work day. When a holiday falls on a Saturday, the previous Friday shall be observed as the non-work day. Nothing contained herein shall preclude the right of the department head, with the approval of the appointing authority, to reschedule work assignments or hours of work to meet emergency situations and other administrative necessities caused by the observance of a holiday or non-work day or period; provided, however, that all such affected employees are duly compensated for said rescheduled work assignments. 14.1.1 Holiday Pay In order for an employee to receive his/her regular pay for a holiday or designated non-work day, work must be performed on the regular scheduled day before and the regular scheduled day after the holiday or designated non- work day. Employees on vacation, injury leave, approved short term leave of absence, with or without pay, or who submit satisfactory evidence of personal illness shall be considered as working their regular schedule for pay purposes. 14.2 Floating Holiday Leave In addition to the foregoing paid holidays, eligible employees shall be allowed to schedule 20 hours as additional holiday leave be taken in increments of not less than one (1) hour. This floating holiday leave shall be taken at dates of the employee's election provided: 1) that prior supervisor approval be obtained, and 2) be taken before the end of the second pay period in December of each calendar year. For new employees, floating holiday leave will be prorated in the following manner: 1. 2. 3. Employees hired after January 1 but before April 1 shall be entitled to 20 hours floating holiday leave in that calendar year. Employees hired after April 1 but before September 30 will be entitled to 10 hours of floating holiday leave that calendar year. Employees hired after October 1 but before December 31 will not be entitled to floating holiday leave in that calendar year. ! 4. 3 Vacations All employees, other than those holding temporary status, whose work assignment is of a recurring nature of not less than a normal work week shall accrue vacation credits during the calendar year. Accrued vacation may be taken with prior supervisory approval. An employee may accrue no more vacation credit than twice the annual rate being earned. Upon termination of employment, unused vacation may not be used to extend final employment date beyond the annual rate of vacation being earned. Represented employees may convert, on a once per calendar year basis, unused vacation time for payment subject to the following conditions: 1. The employee must have accrued vacation of at least 15 days. 2. Any payments made for unused vacation will be subject to all appropriate taxes. 3. Minimum exchange will be one day, maximum exchange will be five days. All changes are irrevocable. 14. 3.1 Vacation Accrual Rate During the first three years of employment, an employee shall earn vacation credit on the basis of 5/6 workday or the hourly equivalent for each complete month of continuing service. During the fourth calendar year of employment, an employee shall earn vacation credit on the basis of one and one-fourth (1 1/4) work days or the hourly equivalent for each complete month of continuing service. During the tenth year of employment and thereafter, an employee shall earn vacation credits at the rate of one and five-twelfths (1 5/12) work day or the hourly equivalent for each month of completed continuous service. During the fifteenth year of employment and thereafter, an employee shall earn vacation credits at the rate of one and two-thirds (1 2/3) work day or the hourly equivalent for each month of completed continuous service. During the twentieth year of employment and thereafter, an employee shall earn vacation credits at the rate of one and five sixths (1 5/6) work day or the hourly equivalent for each month of completed continuous service. An employee may carry over to the next year any portion of vacation credit but shall be limited to not more than that which was earned during the previous year. 14. 3.2 Full vacation leave shall be taken at one time by any one employee whenever possible. The time during the calendar year at which an employee shall take his/her vacation shall be determined with due regard for the wishes of the employee and particular regard for the needs of the service. Vacation leave of less than the full amount earned may be taken with the approval of the department head. 14. 3.3 On termination of employment or on receiving a leave of absence of more than three (3) months, an employee who has completed 12 months of continuous service with the City shall be entitled to receive compensation for all earned but unused vacation accrued at the time of termination or at the start of said leave of absence. 14.3.4 The accrual of vacation credits for those employees whose normal work week is of not less than one-half (1/2) time shall be prorated according to the time of the recurring work assignment as to the normal work week. 14. 4 Sick Leave All full time employees, other than those holding temporary status, shall earn eight (8) hours per month sick leave time without limit on accumulation. Those permanent employees working less than full time (at least 20 hours per week) shall earn in one month the number of hours of sick leave they would normally work in one day or the equivalent without limit on accumulation. Employees absent without pay for any reason for more than forty (40) hours during a calendar month shall not earn sick leave benefits for that month. With proper notice and approval of the supervisor, sick leave shall be taken in periods of no less than one-half (1/2) hour increments. 14.5 Personal Leave The City shall allow accumulated sick leave to be used for conducting personal business which cannot be conducted outside regular working hours or for family medical emergencies. 14. 6 Bereavement Leave Employees shall be granted paid bereavement leave not to exceed three (3) work days upon the occasion of death of a close relative. Close relatives are defined as mother, father, sister, brother, wife, husband, child, grandparent, grandchildren, mother-in-law and father-in-law. 14. 7 Military Leave Military leave shall be granted in accordance with the provisions of state law. All employees entitled to military leave shall give their supervisor an opportunity, within the limits of military requirements, to determine when such leave shall be taken. 14. 8 Pregnancy Disability Leave A pregnant employee is entitled to up to four months leave of absence without pay for temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Employees shall take unpaid leave of absence during such leave except that accrued vacation pay and sick leave may be taken at the option of the employee. As with all other temporary disabilities, a physician's certificate is required to verify the extent and duration of the temporary disability. An employee who plans to take a pregnancy leave must give a reasonable notice (not less than 4 weeks) before the date she expects to take the leave and the estimated duration of the leave until the employee is released by her physician to return to work or for sixty (60) days, whichever comes first. 14. 9 Adoption Leave Upon request, a leave of absence without pay for up to four (4) weeks will be granted to adoptive parents. Accrued vacation pay and sick leave may be taken at the option of the employee during this leave time. The City will pay health and welfare benefits at the same rate as prior to the leave. 14.10 Absence Notification An employee is expected not to absent herself/himself from work for any reason, other than personal illness, without making prior arrangements with his/her supervisor. Unless prior arrangements are made, and employee who, for any reason, fails to report for work must make a sincere effort to immediately notify his/her supervisor or office personnel of his/her reason for being absent. If the absence, whether for personal illness or otherwise, is to continue beyond the first day, the employee must notify the supervisor or office personnel on a daily basis unless otherwise arranged with his/her supervisor. In proper cases, exceptions will be made. Any unauthorized absence of an employee from duty shall be deemed to be an absence without pay and will be grounds for disciplinary action by the department head. In the absence of such disciplinary action, any employee who absents herself/himself for three (3) days or more without authorized leave shall be deemed to have resigned. Such absence may be covered, however, by the department head by 10 a following grant of leave with or without pay when extenuating circumstances are found to have existed. 14.11 Catastrophic Leave 1. The City's catastrophic leave committee will establish a definition of catastrophic or life-threatening illness. This committee will evaluate each individual case when it is submitted to qualify to receive financial assistance. The only limitation is that the employee must be the one facing the illness. The committee has the right to ask the applicant to submit further documentation from their physician to determine the applicant does suffer a catastrophic or life-threatening illness. 2. Vacation hours and compensatory time off (CTO) hours are the only leave of absence credits which may be donated in any pay period. A leave of absence transfer drive will be held whenever necessary to provide for a minimum catastrophic leave bank balance of 40 hours. 3. All benefited employees who have passed initial probation with the City will be eligible to receive assistance. An employee does not have to be a contributor to be eligible. An employee or their representative must complete a prescribed application form together with supporting medical documentation to the Personnel Officer when applying for funds. 4. A recipient must have used all of their available leave hours before he/she is eligible. 5. The minimum time an employee could receive funds would be one week. The maximum amount is two months (LTD becomes available at this time). 14.12 Family Leave The City of Cupertino will comply with State and Federal Family Leave Laws. SECTION 15: SICK LEAVE CONVERSION 15.1 Sick Leave is not vested under California statutory law. 15. 2 At the time of termination, the value of non-vested hours is converted to an incentive compensation bank equal to the employee's base hourly rate averaged over the immediate past 60 complete months of employment multiplied by the total number of non-vested hours. 15.3 If upon retirement an employee has a minimum of 320 non-vested hours, payment shall be made for eighty-five percent (85%) of the value of the incentive compensation bank. 15.4 If upon resignation an employee has a minimum of 320 non-vested hours, payment shall be made for seventy percent (70%) of the value of the incentive compensation bank. 11 15. 5 Represented employees will have the option, subject to approval, of converting sick leave to vacation leave on a two-to-one basis. The maximum allowable exchange will be 96 hours of sick time for 48 hours of vacation leave per calendar year. Minimum exchange will be eight hours sick leave for four hours of vacation. An employee may convert sick leave in excess of 320 hours to vacation leave on a one-to-one basis to a maximum of 48 hours and a minimum of four hours. As a condition of converting sick leave to vacation, all employees will be required to use at least one-half (1/2) of vacation accrued during the previous twelve (12) months. Such conversion, either to exchange sick leave for vacation or vice versa shall be subject to the following conditions: a. All requests to exchange sick leave for vacation time shall be submitted in writing to the department head at least 60 calendar days in advance of intended vacation utilization. b. The granting of such exchange and subsequent use will be at the discretion of the department head. c. If twelve (12) months have elapsed since approval of the exchange of sick leave for vacation, and the employee has not been permitted the use of the converted vacation time, (after submitting at least one written request for utilization) the employee will have the right to re-convert the vacation time to sick leave in reverse ratio to the original exchange. This exchange will be allowed only for previously converted sick time to vacation and will not be permitted for regularly accrued vacation time. d. If an employee after converting sick leave to vacation time, exhausts all of his/her remaining sick leave due to injury or illness, he/she may make a written request to the department head to re-convert vacation time to sick leave on a reverse ratio basis. Approval will be subject to an assessment by the department head as to the validity of the illness/injury and whether or not a written physician's statement attesting to the illness/injury is required will be at the sole option of the department head. e. If the employee's vacation accrual exceeds the maximum allowable accrual, he/she will have the option to re-convert vacation time back to sick leave on a reverse ratio basis. Such re-conversion shall be limited to previously converted sick leave/vacation and may not exceed the amount necessary to reduce the accrued vacation to the maximum allowable. Regularly accrued vacation time will not be eligible for this re- conversion to sick leave and any regularly accrued vacation time accrued in excess of the maximum allowable will be disallowed and not subject to utilization by the employee. NOTE: As used in this document, "reverse ration" is intended to mean that the ration of sick leave to vacation will revert to the original ratio at the time the initial exchange was implemented. 12 SECTION 16: SAFETY EQUIPMENT The City will pay $325.00 to employees for the purchase of safety equipment during the term of this agreement: a) rain gear b) hard hats c) vests d) safety shoes e) goggles/safety glasses f) gloves g) ear plugs The City shall retain the right to establish minimum safety and quality standards for the clothing and safety equipment to be used while performing assigned tasks. For new employees the $325.00 safety and equipment allowance will be prorated from the date of employment through the end of the fiscal year in which appointed (June 30). Any employee who, for whatever reason, terminates his/her employment with the City before the beginning of the next fiscal year, shall return to the City the prorated value of said safety equipment allowance. The City will provide and launder shirts or overalls which shall be worn while carrying out the duties of the City. It will be the responsibility of the employee to have the required clothing and/or safety equipment needed for the tasks assigned. If an employee should be at work without the required clothing or safety equipment, that employee will not be paid until he/she is at the work site with the required clothing and/or safety equipment. SECTION 17: TRAINING AND TUITION REIMBURSEMENT It is the intent of the City to recognize the value of training to its employees and to adopt a training policy which will encourage employees to avail themselves of job related educational opportunities that will advance their knowledge and interests in the direction of their career with the City and by doing so to improve the Municipal Service. Employees who wish to seek reimbursement from the City for training program costs shall provide a written request for reimbursement to their immediate supervisor. The request shall include the type of program, sponsoring organization or institution, meeting times and costs for such program. A copy of the supervisor & superintendent's recommendation to the department head shall also be provided to the employee. The employee will initial supervisor's comments and the superintendent's recommendation prior to going to the department head for approval or denial. Once a training program has been approved, any employee covered by this agreement will be eligible for reimbursement. However, an employee shall not receive any reimbursement until providing satisfactory proof of successful completion of the program. 13 17.1 Safety/Training Committee The City and the Union agree to form a committee to jointly develop a safety/training program to include, but not limited to: CPR, first aid, safe work habits and emergency response roles. The City and the Union shall each have two (2) members on the committee. SECTION 18: TEMPORARY DISABILITY BENEFITS Any employee sustaining an injury arising out of, or in the course of, the performance of his job and who cannot work at the duties and responsibilities normally assigned to that job is entitled to receive temporary disability payments as prescribed by state law. 18.1 Use of Sick Leave to_ Supplement Temporary_ Disability Payments Any employee entitled to receive temporary disability payments may elect to supplement such payments with an amount not to exceed that which is the employee's weekly earnings or weekly earning capacity by use of sick leave payments to the extent that such sick leave has been accrued to the employee's account. Sick leave hours used will subsequently be credited to the employee's account by dividing the employee's base hourly rate into the amount that the employee would have received in industrial injury pay. SECTION 19: DISCIPLINARY ACTION The City has a policy of progressive discipline. When the need for discipline arises, the minimum disciplinary action will be taken commensurate with the seriousness of the offense which has resulted in such discipline. The severity of the discipline will increase if corrective action is not taken. The first and/or most modest step of progressive discipline in the case of minor breaches of the rules, regulations or policy is a verbal warning by the supervisor in charge. If the breach continues, or the offense is more than minor, in the judgment of the supervisor, the employee shall be notified through the issuance of an infraction notice. Such infraction notices shall remain in the supervisor's file and be destroyed after twelve months. Should the offense, in the judgment of the supervisor, be so serious or be of a continuous nature, the supervisor shall recommend more serious reprimand measures or disciplinary action to the Superintendent. These measures would include, but not be limited to, written reprimands, suspensions and termination. When the disciplinary action recommended by the supervisor, and with the concurrence of the Superintendent, would impact "property rights" of the employee as defined by the courts of California, it shall be referred to the Director of Public Works. A written notice from the Director of Public Works to the employee at least five days prior to any action, shall state the proposed disciplinary action. contain: 1. 2. 3. 4. The notice shall also effective date and time of the proposed action the alleged reason for the proposed action the acts or omission which support the allegation the materials upon which the allegation(s) are based and access to any other 14 related items 5. a "Skelly" pre-disciplinary statement as to the rights of the employee to respond either orally or in writing to the Director of Public Works prior to the effective date of the proposed action; and the employee's right of appeal 6. a statement that the action will become final if the employee fails to respond to the notice within the specified time It is understood that an employee's request for a Skelly meeting will postpone the effective date of action until the Skelly has been heard and the City has responded to issues raised in the Skelly meeting. In this case the effective date will be five (5) days from the Director's response. SECTION 20: LAYOFFS Layoffs of employees may be made by the appointing authority for lack of funds, lack of work or for other similar and just cause. The order of layoff shall be that which, in the opinion of the appointing authority, will cause the least disruption of service to the City; taking into consideration seniority, performance or whether the employee's skills can be replaced by the existing work force. However, within any given position classification employees whose salaries or wages are funded in part or whole by Federal employment grants shall be laid off first before employees holding certified status and who occupy positions funded from sources other than Federal employment grants. The names of employees affected by layoff shall be placed on a recall list for a period of two years in the reverse order of layoff and shall have the first opportunity for reinstatement. Failure to respond within ten days to a written notice of such opportunity shall cause that name to be removed from the recall list. SECTION 21: REINSTATEMENT With the approval of the appointing authority, a permanent or probationary employee who has resigned with a good record or been recalled from a layoff action may be reinstated within twenty-four months of the effective date of resignation to a vacant position in the same or comparable classification they previously occupied. Upon reinstatement, the employee, for all purposes, shall be considered as though they had received an original appointment. SECTION 22: MAINTENANCE WORKER III POSITIONS The City agrees that an acting Maintenance Worker III will be assigned to lead a crew whenever asphalt work is done. 15 SECTION 23: GRIEVANCE PROCEDURES Definition and Procedure: a grievance is a dispute or difference of opinion raised by an employee against the City involving the meaning, interpretation or application of the express provisions of this Agreement or the Rules on Conditions of Employment or existing work rules. A grievance shall be processed in the following manner: Step 1: Any employee who has a grievance shall submit it designated as a grievance to the employee's immediate supervisor, who is designated for this purpose by the City. The supervisor shall give the employee an oral answer within five (5) calendar days after such presentation. Step 2: If the grievance is not settled in Step 1 and the employee wishes to advance the grievance to Step 2 of the grievance procedure, it shall be referred in writing to the employee's next highest supervisor within five (5) calendar days after the supervisor's oral answer, or answer due in Step 1, and shall be signed by both the aggrieved employee and the Union Representative or Union Business Agent. The written grievance shall contain a complete statement of the facts, the provisions or provisions of this Agreement or work rules which the City is alleged to have violated and the relief requested. The supervisor or other person designated for this purpose shall discuss the grievance within five (5) calendar days with the employee and the Union Representative at a time mutually agreeable to the parties. If no settlement is reached, the supervisor or other person designated for this purpose shall provide the employee a written answer within five (5) calendar days following their meeting. Step 3: If the grievance is not settled in Step 2 and the employee wishes to appeal the grievance to Step 3 of the grievance procedure, it shall be referred in writing to the employee's department head within five (5) calendar days after the supervisor's answer in Step 2 and shall be signed by both the aggrieved employee and the Union Representative or Union Business Agent. The department head shall discuss the grievance within five (5) calendar days with the employee and the Union Steward at a time mutually agreeable to the parties. If no settlement is reached, the department head shall give the City's written answer to the employee within five (5) calendar days following their meeting. Step 4: If the grievance is not settled in Step 3 and the employee wishes to appeal the grievance to Step 4 of the grievance procedure, the Union may refer the grievance to advisory mediation as described below within fourteen (14) calendar days after the decision is provided at the third step. (1) The parties shall attempt to agree upon an advisory arbitrator within seven (7) calendar days after receipt of the notice of referral. In the event that parties are unable to agree upon an advisory arbitrator within said seven (7) day period, the parties shall immediately jointly request the State Mediation and Conciliation Service to submit a panel of five (5) advisory arbitrators. Each party retains the right to reject one panel in its entirety and request that a new panel be submitted. Both the Union and the City 16 shall have the right to strike two (2) names from the panel. The person remaining shall be the advisory arbitrator. (2) The advisory arbitrator shall be notified of his/her selection and shall be requested to set a time and place for the hearing, subject to the availability of Union and City representatives. (3) The City or the Union shall have the right to request the arbitrator to require the presence of witnesses or documents. The City and the Union retain the right to employ legal counsel. (4) The advisory arbitrator shall submit his/her recommendation in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever is later. (5) More than one grievance may be submitted to the same advisory arbitrator if both parties mutually agree in writing. (6) The fees and expenses of the advisory arbitrator and the cost of a written transcript shall be divided equally between the City and the Union; provided, however, that each party shall be responsible for compensating its own representatives and witnesses. Limitations on Authority of Advisory Arbitrator: The advisory arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the provisions of this Agreement. The advisory arbitrator shall consider and decide only the question of fact as to whether there has been a violation, misinterpretation, or misapplication of the specific provisions of this Agreement. The advisory arbitrator shall be empowered to determine the issue raised by the grievance as submitted in writing at the Second Step. The advisory arbitrator shall have no authority to make a recommendation on any issue not so submitted or raised. The advisory arbitrator shall be without power to make recommendations contrary to or inconsistent with, in any way, applicable laws or rules and regulations of administrative bodies that have the force and effect of law. The advisory arbitrator shall not in any way limit or interfere with the powers, duties and responsibilities of the City under law and applicable court decisions. The recommendation shall be advisory only. SECTION 24: IMPASSE PROCEDURE The following procedures, extracted from the Municipal Code (Section 2.52.410), shall apply in the event the parties are unable to resolve and impasse satisfactorily: 24.1 Impasses A. Impasse procedures may be invoked only after the possibility of settlement by direct discussion has been exhausted. The impasse procedures are as follows: 1. Mediation (or conciliation). (Defined in Section 2.52.290) All mediation proceedings shall be private. The mediator shall make no public recommendation nor take any public position concerning the issue. 2. A determination by the City Council after a hearing on the merits of this dispute. 3. Any other dispute resolving procedures to which the parties mutually agree or which the City Council may order. 17 Any party may initiate the impasse procedure by filing with the other party (or parties) affected a written request for an impasse meeting together with a statement of its position on all disputed issues. An impasse meeting shall then be scheduled by the municipal employee relations officer forthwith after the date of filing of the written request for such meeting, with written notice to all parties affected. The purpose of such impasse meeting is twofold: a) To permit a review of the position of all parties in a final effort to reach agreement on the disputed issues, and b) If agreement is not concluded, to mutually select the specific impasse procedure to which the dispute shall be submitted; in the absence of agreement between the parties on this point, the matter shall be referred to the City Council. B. The fees and expenses, if any, of mediators or of any other impasse procedure, shall be payable one-half of the City and one-half by the employee organization or employee organizations. SECTION 25: CONTINUATION OF BENEFITS All terms and conditions of employment not otherwise maintained at the standards in effect at the time of execution. contained herein shall be SECTION 26: SEPARABILITY In the event any provisions of this agreement is finally held to be illegal by a court of competent jurisdiction or void as being in contravention of any law, rule or regulation of any government agency having jurisdiction over the subject set forth, then the remainder of the agreement shall continue in full force and effect unless the parts so found to be void are held inseparable from the remaining portion of the agreement. SECTION 27: RATIFICATION Nothing contained in this memorandum shall be binding upon either the City or the Union following signing of this memorandum by the parties until it has been ratified by the Union's membership and presented and approved by the City Council of the City. 27. I Extended Benefits It is understood and agreed that any more costly total compensation package agreed to by the City with any other bargaining unit of employees during the life of this agreement will be extended to the Union. The more favorable terms will be incorporated into this agreement. SECTION 28: TERM This agreement shall have effectively commencing at 12:01 a.m. July 1, 1997 and ending at 11:59 p.m. June 30, 1999. 18 OPERATING ENGINEERS LOCAL UNION NO. 3 CITY OF CUPERTINO Michael Drake Donald D. Brown Robert A. Hook Carol A. Atwood Daniel A. Lorenz Bert Viskovich Karl R. Olsen William J. Woska John E. Records Date: Richard S. Burmss Date: Reviewed by City Attorney Charles Kilian Date 19 ATTACHMENT ELMWOOD WORK FURLOUGH PROGRAM Purpose: To provide a public service for local government through the availability of individuals in a sentencing alternative program, to perform clean-up type duties. Affected Employees 1. All employees hired on or after January 1, 1995 may be required to participate in the Elmwood Work Furlough Program (EWFP). 2. Participants by employees hired prior to January 1, 1995 will be on a voluntary basis. Participation: 1. An Administrative Crew Leader will be responsible for daily activities related to the EWFP. 2. Assistant Crew Leader will be assigned as necessary to the EWFP. 3. The Administrative Crew Leader will be the employee with the most seniority. 4. Employees will be provided ten (10) calendar days notice prior to permanent assignment with the EWFP. 5. With the exception of volunteers, employees with the least seniority who have received EWFP training will be assigned to participate as staffing is requiredl Compensation: 1. Administrative Crew Leader -- 10% above base pay. 2. Assistant Crew Leader -- 5% above base pay. Responsibility: The following responsibilities/tasks are assigned to participants in the EWFP. Administrative Crew Leader: a. Knowledge of EWFP policies, rules, and regulations. b. Daily administration of the EWFP. c. Assignment of inmates consistent with direction of the responsible Public Works Supervisor d. Conduct an 8:00 am roll call at the beginning of each day. e. Notify Elmwood if an inmate does not arrive on time. f. Assign tools and safety equipment to inmates g. Supervise inmates consistent with the provisions of the "Satellite Crew Supervisor Manual." h. Conduct a 4:00 p.m. roll call at the end of each day. 20 An Administrative Crew Leader will not perform manual work that will distract from fully monitoring the EWFP crew. 2. Assistant Crew Leader a. Knowledge of EWFP policies, rules, and regulations. b. Supervise inmates consistent with the provisions of the "Satellite Crew Supervisor Manual. c. Contact the Administrative Crew Leader concerning EWFP issues. d. Lock and secure Corporation Yard at the end of the day. An Assistant Crew Leader will not perform manual work that will distract from fully monitoring the EWFP crew. Liability: An employee assigned to EWFP is covered for liability purposes by the City of Cupertino while performing duties within the scope of his/her job. 21