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HomeMy WebLinkAboutReso 2002-109 - Employee Benefit Policiesl 0 r , RESOLUTION NO. 2002- /0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING THE EMPLOYEE BENEFIT POLICIES FOR UNREPRESENTED EMPLOYEES,EFFECTIVE JUNE 23, 2002. WHEREAS, the City Council has studied the current Employee Benefit Policies for unrepresented employees, as previously amended by Resolution No. 2000-124; and WHEREAS, the Administrative Services Director has recommended that said Employee Benefit Policies for unrepresented employees be amended as set forth in Exhibit A, effective June 23, 2002; and WHEREAS,the City Council deems it to be in the best interests of the City to adopt such recommendation; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council that the Employee Benefit Policies for unrepresented employees be amended, as set forth in Exhibit A, effective June 23, 2002. I HEREBY CERTIFY that the foregoing Resolution was introduced,read, and adopted at a regular meeting of the City Council of the City of Redding on the 2nd day of July, 2002, by the following vote: AYES: COUNCIL MEMBERS: Pohlmeyer, Stegall and Kight NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Cibula and McGeorge ABSTAIN: COUNCIL MEMBERS: None 4 PAT KIGHT, yor ATTEST: FORM APPROVED: CONNIE STROHMAYE >,C•ty Clerk W.LEONARD WIN TE, City Attorney D:\work\COUNCIL'7.2-02.employee benefit policies-res.wpd 1 ) 1 CITY OF REDDING EMPLOYEE BENEFIT POLICIES CITY OF REDDING EMPLOYEE BENEFIT POLICIES TABLE OF CONTENTS Article Page INTRODUCTION 3 EMPLOYEE STATUS 3 COMPENSATION AND CLASSIFICATIONS 6 HOURS AND OVERTIME 8 SICK LEAVE 10 VACATIONS 12 HOLIDAYS 14 ADMINISTRATIVE LEAVE 16 FUNERAL(BEREAVEMENT) LEAVE 17 JURY/WITNESS DUTY 18 LEAVES 19 INDUSTRIAL DISABILITY 21 EXPENSES 22 UNIFORM ALLOWANCE 24 GROUP INSURANCE 25 RETIREMENT PROGRAM 27 CONTINUING EDUCATION 28 GRIEVANCE PROCEDURE 29 DEFINITIONS 31 INTRODUCTION The following employment policies are applicable only those employees not covered under an existing Memorandum of Understanding negotiated with a recognized bargaining unit. EMPLOYEE STATUS 1. Employees will be designated as Council-Appointed, Administrative, Regular, Part-Time Regular, Part-Time,Temporary, or City Council Members, depending upon the purpose for which they are hired/elected and their length of continuous service with the City. 2. Council-Appointed employees include the City Manager and City Attorney and any others who may be appointed directly by the City Council and serve at the will of the Council. The employees shall be eligible for all benefits of a Regular employee with the exception of access to the grievance process. The benefits outlined in an employment contract will supercede when there is conflict with benefits outlined for Regular employees. 3. An Administrative employee is defined as an employee appointed by the City Manager, subsequent to July 1, 1997,to the position of Assistant City Manager,Deputy City Manager, Assistant City Attorney, Deputy City Attorney, or Director of any Department. A Regular employee serving in one of these positions prior to July 1, 1997, may become an Administrative employee only upon mutual agreement in writing. An Administrative employee shall be eligible for all the benefits of a Regular employee,except these employees do not have access to the grievance procedure, nor shall they serve a probationary period as they serve strictly at the will of the City Manager and the employment relationship may be ended at any time without cause. 4. A Regular employee is defined as an employee hired for a full-time position that has been regularly established as an authorized position and is of indeterminate duration. A Regular employee shall receive not less than the minimum rate for the job and shall be eligible for sick leave pay, vacation pay, holiday pay, retirement plan participation, insurance coverage and other benefits as outlined herein as the employee becomes eligible. 5. A Part-Time Regular employee is defined as an employee who has one(1)year, or more, of full-time service with the City as a Regular employee,and who subsequently moves,without a break in service, to work less than full-time. This status would also include employees involved in job share arrangements. Job share employees shall be required to sign a City approved contract stipulating the specific conditions and restrictions of the job share arrangement. A job share employee who has not served an official probationary period shall be subject to a one year probationary period. A Part-Time Regular employee shall receive not less than the minimum rate for the job, and shall be eligible for sick leave pay,vacation pay, holiday pay,retirement plan participation(as governed by the Public Employees'Retirement System),and seniority accrual,but shall not be eligible for supplemental benefits for industrial injury, bereavement leave pay,jury duty pay, o other benefits as outlined herein. Part-time Regular employees shall accrue holiday pay on a prorated basis at the rate of forty-eight-fifty-two thousandths (7048)-(.052) of an hour for each regular hour worked or on paid leave. Part-Time Regular employees are eligible for insurance coverage (pursuant to group insurance contract provisions) • • ••. • • • • •• • •' I • 4 EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 3 premiunrrate. If a Part-Time Regular employee elects insurance coverage,the premiums shall be shared by the City and the employee on a prorated basis at the same ratio to full-time employee benefits as the employee's work hours bear to full-time employees' work hours. If a Part-Time Regular employee moves to Regular status,the employee shall be credited with all continuous service in determining eligibility for such benefits as may accrue to the employee in the employee's new status. 6. A Part-Time employee is defined as an employee hired to work less than a full-time employee, but not more than 1560 hours in a fiscal year. A Part-Time employee will be limited to less than 1,000 hours per fiscal year unless approved by the fitzmarrikesaurces Personnel Manager. A Part-Time employee shall receive not less than the minimum rate for the job, but shall not be eligible for sick leave pay, holiday pay, and other benefits as outlined herein,nor shall the employee be eligible for insurance coverage. The employee may be eligible for participation in the retirement plan pursuant to the City's contract with PERS. After completion of twenty-four (24) months of continuous service, the employee will be entitled to vacation pay on the same basis as Regular employees. If a Part-Time employee is reclassified to Regular status, the employee shall be credited with the employee's service as a Part-Time employee in determining eligibility for benefits, if any, as may accrue to the employee in the employee's new status. 7. A Temporary employee is defined as an employee hired for temporary,occasional or seasonal work for a period not to exceed 1,000 hours in a fiscal year. A Temporary employee shall receive not less than the minimum rate for the job,but shall not be eligible for sick leave pay, holiday pay, vacation pay,or items of a similar nature,nor shall the employee be eligible for insurance coverage or retirement plan participation,nor shall the employee accrue seniority, or promotion and transfer rights,or leave of absence rights. If a Temporary employee moves to another status, the employee shall not be credited with the employee's service as a Temporary employee in determining eligibility for benefits. 8. A City Council member is defined as an elected officer elected by the citizens of the City of Redding. 9. Probationary Periods: Regular and Part-Time employees shall serve a probationary period of one (1) year upon initial appointment to each status. Such probationary period is considered to be a continuation of the selection process and employees may be terminated for employment or demoted without recourse, pursuant to the grievance procedure. An employee's probationary period shall be extended by the duration of any unpaid absence of ten (10) or more consecutive days. Probationary employees shall be evaluated after six (6) months of sc,rvice and aS oftc►1 as&tomi alined by the employee's Supervisor. The probationary period will start over for any employee who transfers to another position during the probationary period. The probationary period may be extended in circumstances where further evaluation of the employee is necessary. Employees serving their initial probationary period shall not be eligible for leave of absence, supplemental benefits for industrial injury, nor be given preferential consideration for promotion or transfer. Temporary employees do not serve a probationary period, as the appointment is temporary by definition and can be terminated at any time. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002- ,EFFECTIVE JUNE 23,2002 Page 4 10. Re-employment: With the recommendation of a Department Director and approval of the Personnel Manager, a past employee who both passed the probationary period and resigned in good standing may be re-employed within two years of the effective date of resignation,to a vacant position in the same classification. Such re-employment shall, for all purposes, be considered as though it were an original appointment. The reinstated employee shall serve a new probationary period. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 5 COMPENSATION AND CLASSIFICATIONS 1. Consistent with principles of public accountability, employees shall be paid the salary or wage established for their classification. Upon initial appointment to a classification, an employee shall normally be paid the lowest salary or wage rate for that classification. An employee may,however,be paid a salary or wage rate above the lowest salary or wage rate if circumstances justify it. When an employee is appointed to a higher paid classification which has a salary or wage range overlapping the salary or wage range of the employee's previous classification, the employee shall be paid at the salary or wage rate of the classification to which the employee is being appointed,which is at least five percent(5%) more than the employee's present salary or wage rate, but not more than the top salary or wage rate of the classification to which the employee is appointed. Step increases require a satisfactory performance evaluation,Department Director and Personnel Manager approval and may be granted as follows: After twenty-six(26)full pay periods of employment at Step 1, and with an overall satisfactory or above performance rating, an employee shall be advanced to Step 2. After twenty-six(26)full pay periods of employment at each subsequent salary step, with an overall satisfactory or above work performance, an employee will be advanced to the next higher step. A full pay period as used herein is defined as one in which the employee works or is paid for time off for at least half of the regularly scheduled work hours. 2. The effective date of any salary rate shall be the first day of the pay period closest to the anniversary of an employee's employment date, following qualification for the new rate. Upon promotion, employees designated for Pay-for-Performance evaluations shall be reviewed after every twenty-six(26)full pay periods of employment in the employee's new classification pursuant to the City's Pay-for-Performance Policy. A full pay period as used herein is defined as one in which the employee works or is paid for at least half of the regularly scheduled work hours. 3. Wages shall be paid at bi-weekly intervals on Thursdays at the end of the employee's work period after 12:00 noon for a pay period ending no earlier than the preceding Saturday. If a pay day falls on a fixed holiday, payments shall be made on the preceding workday. 4. When an employee is temporarily assigned to work in a lower-paid classification than the employee's normal classification, the employee's rate of pay will not be reduced. 5. Whenever a Regular employee is assigned by the City to replace an absent employee in a higher-paid classification and the employee performs a substantial majority(greater than fifty percent[50%])of the absent employee's duties for a full work day,such employee shall have their compensation rate increased by five percent (5%),but not to exceed the range of the higher class. Department Director approval is required. 6. When an employee is assigned to fill a vacant position or replace an absent employee in a higher-paid classification and performs a substantial majority (greater than fifty percent [50%])of the duties of the higher classification for a period that extends beyond one full pay period, such employee shall be temporarily reclassified to the higher position. The employee's salary or wage shall be increased by at least five percent(5%),but not to exceed EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 6 the top of the range. Department Director and Personnel Manager approvals are required. 7. Except for those Regular employees whose shift ends on or before 6:00 p.m., employees shall receive shift differential pay of three and one-half percent (31/2 %) of the employee's regular pay rate for each hour worked between the hours of 4:00 p.m. and 12:00 midnight, in addition to the employee's regular compensation. Except for employees whose shift starts at 6:00 a.m.or later,for time worked between 12:00 midnight and 8:00 a.m.,shift differential pay shall be increased to five percent(5%). 8. POST and educational incentives shall be added to base pay as follows: 2.5%plus$100.00*-AA or AS degree,or sixty(60)semester units,or a POST Intermediate Certificate for Sworn Police Management Employees. 5.0% plus $100.00* - BA or BS degree, or one hundred twenty(120) semester units or a POST Advance Certificate for Sworn Police Management Employees. Effective June 23, 2002, 7.5% plus $100.00* - Master's degree for Sworn Police Management Employees. * The annual payment will be paid in the week following the second pay day in July. Eight hundred dollars($800.00)per year will be added to base pay for an AA degree in Fire Science or Fire Science Technology for Fire Safety management personnel. 9. Effective May 17, 1998,Battalion Chiefs assigned to a forty(40)hour workweek will receive a five percent(5%)pay differential. The differential will be paid on the base wage rate. 10. The City Manager may,based upon outstanding job performance,grant an exempt employee a one time salary increase up to ten percent (10%) above the top of the salary range for a period not to exceed one(1)year. This one time increase is not cumulative and the employee would revert to the employee's regular salary rate at the end of the one year period. 11. The City Manager, at his discretion, may provide severance pay not to exceed one year of salary to Administrative employees when it is deemed to be in the best interest of the City. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 7 HOURS AND OVERTIME 1. All Regular employees will receive full time employment for each workweek employed, provided they report for duty and are capable of performing their work. This is not to be interpreted that the City does not retain the right to lay off or release employees on account of lack of work or other valid reason at the end of the workweek. 2. A workweek is defined to consist of seven(7) consecutive calendar days, Sunday through Saturday,and except as otherwise provided,a basic workweek is normally defined to consist of five(5) consecutive workdays of eight(8)hours each. The basic workweek may begin on any day of the week or at any hour of the day during the workweek. Shift employees may be assigned any hour and/or days of work. The basic workweek indicated above may be modified by mutual agreement of the City and the affected employee(s)in those situations where such a modification serves the interest of both the City and its employees. 3. Except as otherwise provided herein, overtime is defined as (a) time worked in excess of forty(40)hours in a workweek, (b)time worked in excess of eight (8), ten (10), or twelve (12) hours as applicable on a scheduled workday, (c) time worked on a non-workday, (d) time worked outside of regular hours on a workday, and (e) time worked on a holiday. Overtime shall be computed to the nearest one-quarter(1/4)hour. For Part-Time and Temporary employees, other than fire suppression or twenty-four (24) hour shift employees, overtime is defined as time worked in excess of forty(40)hours in a workweek. For Temporary and Part-Time fire suppression or twenty-four(24) hour shift employees overtime is defined as time worked in excess of two hundred forty(240)hours in an established 28-day work period. In cases where the basic workweek has been modified by mutual agreement,these overtime requirements may be waived pursuant to applicable law. 4. Overtime wages shall be paid to non-exempt employees at a rate equivalent to one and one- half(1 Y2)times the regular rate of pay,or at the employee's option,and with City approval, the employee may elect to receive time off with pay at the rate of one and one-half hours off for each overtime hour worked. Compensatory time off with pay shall be scheduled in the same manner as vacations are normally scheduled. The maximum accumulated compensatory time an employee may keep on the books at any time shall be limited to a maximum of two hundred forty(240)hours. 5. Exempt employees shall not receive any compensation for overtime work,except for exempt fire management employees who are eligible for pay in excess of their regular salary when: 1) assigned to state service on a non-work day, the exempt employee shall receive one and one-half(11/2)times their regular rate of pay;2)assigned to work for another Battalion Chief who is working in state service on a regularly scheduled workday,the exempt employee shall receive one and one-half(1'A) times the regular rate of pay; and 3) working to cover for a Battalion Chief absent from a regularly scheduled shift,the exempt employee shall be paid at one and one-half the regular rate of pay. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 8 6. Exempt employees, who as a result of their exempt status are not eligible for overtime pay or compensatory time off, will not have their leave balances (vacation, sick leave, etc.) reduced for absences of less than four hours. Department Director approval is required. 7. Employees who are entitled to overtime pay and who are required to report for work on their non-workdays, or on holidays they are entitled to have off, or outside of their regular hours on workdays, shall be paid overtime compensation for the actual time worked, but in no event for less than two (2) hours compensation. If an employee who is called out for such work outside of the employee's regular hours on a workday continues to work into the employee's regular hours, the employee shall be paid overtime compensation only for the actual time worked. If an employee performs overtime work immediately following the end of the employee's regular shift,the employee shall be paid overtime compensation only for the actual time worked. 8. At such time as a twenty-four(24) hour shift Fire Management employee moves between forty(40) and fifty-six (56) hour work schedules,vacation and sick leave balances will be adjusted. Specifically, when an employee moves from a forty(40)to a fifty-six (56)hour schedule,all leave balances will be multiplied by a factor of 1.4. When an employee moves from a fifty-six (56)to a forty(40)hour schedule,vacation and sick leave balances will be multiplied by a factor of 0.715. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-__,EFFECTIVE JUNE 23,2002 Page 9 • • SICK LEAVE 1. Sick leave with pay shall be accumulated for each Regular and Part-Time Regular employee at the rate of forty six thousandths(.046)of an hour for each regular hour worked,or on paid leave. (Accrual rate approximately one [1] day per month.) 2. Sick leave shall be allowed for a non-work related absence due to: (a) the inability of an employee to be present or perform the employee's duties because ofpersonal illness,off-duty injury, or confinement for medical treatment; (b)personal medical or dental appointments, which are impractical to schedule outside of regular working hours;(c)the need to be present during childbirth, surgery, critical illness or injury involving members of the immediate family for up to forty(40)hours per incident. Immediate family as used herein includes only the employee's spouse,children,grandchildren,brothers,sisters,parents or grandparents of spouse or employee,or other persons who are living in the employee's immediate household. Sick leave to include mental or physical illness. (d) family sick leave up to forty-eight(48) hours per calendar year for members of the immediate family. Notwithstanding the foregoing forty-eight (48) hour limitation, twenty-four (24) hour shift employees shall be allowed seventy-two (72)hours of family sick leave and ninety-six(96)hours per incident for childbirth,surgery,critical illness or injury involving members of the immediate family. 3. Management may require satisfactory evidence of sickness or disability before payment for sick leave will be made. The City may also require an employee requesting to return to work after sick leave or leave of absence for medical reasons to submit to a medical examination at City expense by a physician or physicians approved by City for the purpose of determining that such employee is fit and able to perform the duties of the employee's former position without hazard to the employee,fellow employees,or the employee's own permanent health. 4. If an employee is off on sick leave on a fixed holiday, the holiday credit will be used. However, if an employee is off on sick leave on a floating holiday,sick leave balances will be used and the holiday credit will be deferred. 5. In the event an employee exhausts all paid leave as a result of an illness or injury,and subject to the approval of the employee's Department Director and fiumairResources Personnel Manager, such employee may be advanced sick leave from his or her future accruals up to 80 hours. Twenty-four(24)hour shift employees maybe advanced up to one hundred twelve (112)hours. Once the employee returns to duty, sick leave accrual hours will be applied to the negative sick leave account until it is zero. Should the employee terminate City employment with a negative sick leave balance appropriate adjustments would be made to final paid leave cash pay-outs or other City monies owed the employee. If insufficient funds are due to the employee by the City, the employee shall directly reimburse the City for advanced sick leave in excess of the funds, if any, previously withheld. Such direct reimbursement will be waived for employees who are terminally ill or totally disabled (100%). 6. Any employee who after ten(10)years but less than fifteen(15)years of continuous service to the City terminates employment shall be paid at the employee's regular pay rate for thirty- three and one-third percent (331/3%) of the employee's accumulated sick leave hours. For EMPLOYEE BENEFIT POLICIES•RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 10 employees with fifteen(15)years but less than twenty(20)years of continuous service,the percentage set forth above shall be increased to forty-five percent (45%). For employees with twenty(20)years or more continuous service, the percentage set forth above shall be increased to sixty percent(60%). Upon retirement, an employee enrolled in Public Employees' Retirement System (PERS) may, elect to receive credit for all or part of any unused/uncompensated sick leave toward the employee's retirement benefit through Ca1PERS, pursuant to the contract between the City of Redding and Ca1PERS. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page I I VACATIONS 1. Regular and Part-Time Regular employees shall accrue vacations with pay up to 500 hours (Fire Management twenty four(24)hour shift employees shall accrue vacation pay up to 700 hours) as follows: A) At the rate of thirty-nine thousandths (.039) of an hour for each regular hour worked, or on paid leave, from the date of employment through the one hundred fourth(104th) full pay period of employment. (Accrual rate approximately two(2)weeks per year up to four(4)years of service.) B) At the rate of fifty-eight thousandths(.058)of an hour for each regular hour worked,or on paid leave, from the one hundred fourth (104th) full pay period through the two hundred thirty-fourth (234th) full pay period of employment. (Accrual rate approximately three(3) weeks per year after four(4)years of service.) C) At the rate of sixty-eight thousandths (.068) of an hour for each regular hour worked, or on paid leave,from the two hundred thirty-fourth(234th)full pay period through the three hundred sixty-fourth (364th) full pay period of employment. (Accrual rate approximately three and one-half(31/2)weeks per year after nine(9)years of service.) D) At the rate of seventy-seven thousandths(.077)of an hour for each regular hour worked, or on paid leave, from the three hundred sixty-fourth (364th) full pay period of employment through the four hundred ninety-fourth (494th) full pay period of employment. (Accrual rate approximately four(4) weeks per year after fourteen (14) years of service.) E) At the rate of eighty-seven thousandths(.087)of an hour for each regular hour worked, or on paid leave,from the four hundred ninety-fourth(494th)full pay period through the six hundred twenty-fourth (624th) full pay period of employment. (Accrual rate approximately four and one-half (4'A) weeks per year after nineteen (19) years of service.) F) At the rate of ninety-six thousandths(.096)of an hour for each regular hour worked,or on paid leave, from and after the six hundred twenty-fourth (624th) full pay period of employment. (Accrual rate approximately five(5)weeks per year after twenty-four(24) years of service.) G) A full pay period as used herein is defined as one in which the employee works or is paid for time off for at least half of the regularly scheduled work hours. H) The City Manager may authorize the accrual of vacation for a new Regular employee at a rate that exceeds the rate prescribed for the employee's actual years of service. I) In the event of departmental cancellation of a previously scheduled vacation or of a paid leave of absence due to industrial injury where such employee would exceed the maximum vacation accrual, the accumulation of vacation hours may exceed the EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 12 established vacation maximum. In the event of an absence due to an illness or injury that is not job related, the fitmrarr Resources Personnel Manager may approve the accumulation of vacation hours in excess of the established vacation maximum. The City Manager may also approve the accumulation of vacation hours in excess of the stated maximum for other extenuating circumstances. Whenever such excess accruals occur,the employee shall have one year from the date the vacation was canceled or from the date the employee returns to work from illness or injury to utilize the excess accrual. 2. It is City policy that employees take their normal vacation each year at such time or times as may be approved by the Department. 3. Vacation cannot be accrued while an employee is in a non-pay status. 4. Vacations will be scheduled throughout the calendar year. Employees with greater seniority will be given preference over those with less seniority in the selection of a vacation period, provided,however,that if the senior employee splits his/her vacation by requesting less than a full year's allowance to be scheduled on consecutive workdays,the employee's preferential rights shall only apply on one period in that calendar year prior to all other employees being given consideration in the selection of their first choice vacation period. 5. The City shall not require an employee to take vacation in lieu of sick leave or leave of absence on account of illness. 6. If an employee is off on vacation on a fixed holiday,the holiday credit will be used. If an employee is off on vacation on a defcrrcd floating holiday, vacation balances will be used and the holiday credit will be deferred. 7. Employees whose employment with the City is terminated for any reason shall, at the time of separation, receive pay for any unused vacation hours previously earned. 8. Whenever an employee has accrued one hundred twenty (120) hours or more vacation allowance,the City will,at the employee's option,compensate the employee for up to forty (40) hours of accumulated vacation during any fiscal year. Whenever an employee has accrued two hundred forty(240)hours or more of vacation allowance,the City will, at the employee's option, compensate the employee for up to eighty (80) hours of accumulated vacation during any fiscal year. For twenty-four(24)hour shift employees,an employee with one hundred sixty-eight(168)hours of accrued vacation may choose to be compensated for fifty-six(56)hours of that leave per fiscal year. Twenty-four(24)hour shift employees with three hundred thirty-six(336)hours of leave may choose to be compensated for one hundred twelve(112)hours accrued vacation leave. 9. Employees may contribute their vacation hours to an employee approved for the vacation donation program. Vacation credits are donated and granted on the basis of the dollar value of the vacation credits. See Leaves: Section 4. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 13 HOLIDAYS 1. Regular employees, except as otherwise provided herein, shall be entitled to have the following holidays off with pay: (A) January 1st j) The third Monday in January, known as Martin Luther King, Jr. Day (B C) Lincoln Day* (E D) The third Monday in February,known as President's Day (B E) The last Monday in May, known as Memorial Day (E F) July 4th (F G) First Monday in September, known as Labor Day (6 H) Employee's Birthday* (H I) The second Monday in October, known as Columbus Day* (f J) November 11th, known as Veteran's Day* (3 K) Thanksgiving (K L) Friday after Thanksgiving (E M) The last four(4) work hours before Christmas (Ibf N) December 25th * Observed as floating holidays 2. If any of the foregoing holidays falls on a Sunday, the Monday following shall be observed as the holiday, except by those employees who are regularly scheduled to work on Sunday other than on an overtime basis. Employees who are regularly scheduled to work on Sundays shall observe such holidays on Sunday. If any of the foregoing holidays falls on a Saturday, the preceding Friday shall be observed as the holiday, except by those employees who are regularly scheduled to work on Saturday other than on an overtime basis. Employees who are regularly scheduled to work on Saturdays shall observe such holidays on Saturday. If any of the foregoing holidays falls on any day from Monday through Friday,inclusive,and that day is a regularly scheduled non-workday for an employee, such employee shall be entitled to receive another workday off with pay, to be scheduled in the same manner as vacation days are normally scheduled. 3. An employee may observe the employee's birthday holiday on the employee's birthday or anytime during the pay period in which the birthday occurs, or the holiday may be deferred and scheduled as vacations are normally scheduled. Floating holidays shall be scheduled by employees and the employee's supervisors in the same manner as vacations are normally scheduled. When an employee is required to work on a floating holiday the employee shall receive pay at the straight time rate. Notwithstanding the foregoing, employees regularly assigned to work twelve (12) hour shifts shall not be entitled to observe the following holidays; Lincoln Day, Columbus Day, Veterans Day nor the employee's birthday. Employees assigned to work ten (10) hour shifts shall revert back to a normal eight hour work day during the weeks holidays occur. 4. Employees may be scheduled to work on fixed holidays, in which event an employee will, in addition to holiday pay, be compensated at the overtime rate of pay for all time worked — EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 14 on such days. An employee may,however, elect to observe that holiday at another time,to be scheduled in the same manner as vacation days are normally scheduled. In which event, the employee will only be compensated for time worked on that day at the overtime rate of pay and shall not receive holiday pay. 5. An employee must be in a paid status on both workdays immediately adjacent to the holiday in order to receive pay for the holiday. 6. Regular Fire Safety Management personnel assigned to twenty-four (24) hour shifts shall receive compensation for holidays without regard for when holidays occur nor whether or not an employee actually works on any holidays and regardless of the number of holidays other City employees observe. Such holiday compensation shall be one hundred three and one-half(103.5) hours at the employee's regular pay rate in June and forty-eight(48)hours at the employee's regular pay rate in December. For those employees who are assigned to fifty-six (56) hour work weeks the full six (6) months prior to the payment due date, such holiday compensation shall be prorated. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002- ,EFFECTIVE JUNE 23,2002 Page 15 ADMINISTRATIVE LEAVE In recognition of the inapplicability of additional compensation, specifically overtime and compensatory time off, exempt employees, with the exception of 24-hour shift fire management employees,may be eligible for up to forty(40)hours paid administrative leave per calendar year with Department Director approval and up to eighty(80)hours paid administrative leave per calendar year with City Manager approval. Fire management employees working 24-hour shifts may be eligible for up to fifty-six(56)hours paid administrative leave per calendar year with Department Director approval and up to one hundred twelve(112)hours paid administrative leave per calendar year with City Manager approval. Administrative leave is granted on the payroll period closest to January 1 and must be used by the end of the last pay period in December of each year or time is forfeited without compensation. Employees are to schedule administrative leave in the same manner as vacation with the approval of the Department Director. Employees appointed to an exempt position after the first of the year may be granted leave on a prorated basis. Administrative leave balances may be adjusted when employees separate employment prior to the end of the calendar year. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 16 • FUNERAL (BEREAVEMENT) LEAVE 1. Regular employees who are absent from work due to the death of a member of the employee's immediate family shall receive compensation at the regular rate of pay for the time necessary to be absent from work, but not to exceed forty (40) working hours. Immediate family as used herein includes only employee's spouse; children,grandchildren, brothers,sisters,parents,or grandparents of either employee or spouse;or other persons who are living in the employee's immediate household. The relationships included herein shall apply whether by blood or marriage. Notwithstanding the foregoing,bereavement leave with pay shall be granted to twenty-four(24)hour shift employees for the time necessary to be absent for up to a maximum of fifty-six(56)hours. 2. Regular employees who are absent from work to attend the funeral of a person other than an immediate family member shall receive compensation at the regular rate of pay for the time necessary to be absent from work,but not to exceed one(1)regularly scheduled work day. A maximum of twenty-four(24)hours may be utilized for this type of leave in a calendar year. Twenty-four(24)hour shift employees shall receive compensation at the regular rate of pay for the time necessary to be absent from work, but not to exceed one (1) regularly scheduled work day. A maximum of seventy-two(72)hours may be utilized for this type of leave in a calendar year. 3. If an employee is in a non-paid status on either workday immediately adjacent to the funeral (bereavement) leave, the employee shall not receive pay for funeral (bereavement) leave. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 17 JURY/WITNESS DUTY 1. A Regular employee who is summoned for jury duty and thus absent from the work place will be paid for the time lost at the employee's regular rate of pay. If an employee is in a non-paid status on either workday immediately adjacent to the jury duty leave,the employee shall not receive jury duty pay. 2. Whenever any employee is subpoenaed to testify in court as a result of the employee's employment and the employee is not an opposing party to the City, the employee shall be paid for all regular time lost. Employees subpoenaed by the Court for matters unrelated to City business must utilize vacation or appropriate leave balances. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 18 LEAVES 1. A leave of absence may be granted to employees by the City Manager for urgent and substantial reasons,up to a maximum of one year,providing satisfactory arrangements can be made to perform the employee's duties without undue interference with the normal routine of work. Employees in an initial probationary period,Part-Time or Temporary status are not eligible for leave of absence. A. A leave will commence on and include the first workday on which the employee is absent and terminates with and includes the workday preceding the day the employee returns to work. B. All applications for leave of absence shall be made in writing except when the employee is unable to do so. The conditions under which an employee will be restored to employment on the termination of leave of absence shall be clearly stated by the City in conjunction with the granting of a leave of absence. An employee is required to submit medical certifications as to the conditions necessitating the leave if the leave is a result of exhaustion of sick leave. If the leave should exceed the initial request, the employee is responsible for requesting additional time off and providing current medical certifications and return to work dates. Upon an employee's return to work after a leave of absence, the employee will be reinstated to the employee's former position and working conditions, providing that the employee is capable of performing the duties of the employee's former position, except that if there has been a reduction of forces or the employee's position has been eliminated during said leave, the employee will be returned to the position the employee would be in, had the employee not been on a leave of absence. C. An employee's status as a Regular employee will not be impaired by a leave of absence and the employee's seniority will accrue. D. If an employee fails to return immediately on the expiration of the employee's leave of absence or if the employee accepts other employment without prior City approval while on leave, the employee will thereby forfeit the leave of absence and employment with the City may be terminated. E. An employee on a leave of absence as provided herein shall not accrue vacation or sick leave benefits nor maintain group insurance coverage. An employee may, if eligible,maintain group insurance coverage at the employee's expense providing the full monthly premium is received by the City Treasurer on or before the first day of the month for which the premium is intended. Notwithstanding the above,however, if the leave of absence is as a result of exhaustion of sick leave benefits an employee's group insurance may be maintained for up to three(3) calendar months on the normal premium-sharing formula, providing the employee pays the employee's share of the premium on a timely basis. 2. Family and medical leave for employees shall be administered in accordance with the provisions of the Federal Family and Medical Leave Act (FMLA), 29 USC Section 2601 EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 19 et seq.,and the provisions of the California Family Rights Act(CFRA),Code ofRegulations, Title 2, Division 4, Section 7297.0 et seq., as may be amended from time to time. 3. Pregnancy Disability Leave shall be administered in accordance with the provisions of California Code of Regulations, Title 2, Division 4, Section 7291.2 et seq. 4. Vacation Donation Program A. This program has been established to allow employees to donate accrued vacation hours to an eligible employee in need. The purpose of this program is to provide a means by which the eligible employee may obtain authorized paid time off. Employees eligible for the program must: 1. Be a Regular or Part-Time Regular employee already having completed an initial probationary period; 2. Have a verifiable long-term illness or injury (non-work related). For this program, long term is defined as no less than four(4) weeks in duration. It is the employee's responsibility to complete and return a Request for Donation form to the Personnel Division and attach to it a letter from a - licensed physician certifying that the employee has a long-term illness or disabling injury of at least a four week duration; 3. Have exhausted all accrued leaves, resulting in the employee being in an unpaid status if on approved leave; and 4. Have requested and exhausted sick leave advance. 5. Have the concurrence of the Department Director and Personnel Manager. B. Once an employee is determined eligible,a posting will be distributed and use of the donated hours will start as soon as possible. Under no circumstances will total eligibility extend beyond thirteen(13)pay periods. C. When utilizing the donation program, recipients shall receive their regular rate of pay, as if being on paid leave status. The benefit shall be payable on regularly scheduled pay days. A minimum of twenty(20) hours per week must be utilized when there are available balances. Employees using donated vacation time will not accrue holiday,vacation or sick leave benefits. As with paid leave status,recipients shall continue to be eligible to participate in the group health and related benefits provided by the City. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 20 INDUSTRIAL DISABILITY 1. A Regular employee who becomes disabled as a result of a work-related injury or illness and is deemed eligible for benefits under the Workers'Compensation and Insurance Chapters of the State Labor Code, shall receive compensation at the rate of eighty-five percent(85%)of the employee's regular pay. This payment shall be made in lieu of temporary disability payments,which would be paid under the State Labor Code, for the period of disability not to exceed six (6)months. At the conclusion of six (6)months of supplemental benefits at the eighty-five percent (85%) rate, benefits are reduced to seventy percent (70%) of the employee's regular pay for an additional six(6)month period. At any time the employee's injury/illness is determined to be permanent and stationary or the employee is retired on a disability pension through PERS,eligibility under this provision ceases. Employees who are covered under the provisions of California Labor Code, Section 4850 and those employees in their initial probationary period are excluded from this benefit. In exchange for this benefit,the employee shall pay over to the City compensation received as a result of the disability, whether from Workers' Compensation, SDI, employee group insurance benefits or unemployment compensation benefits. Privately secured insurance is excluded. The employee shall affirmatively assist the City in obtaining any such benefits to which the employee may be entitled,but has not yet received arising out of the disability. In no event shall such payment from the employee to the City from such sources exceed the amount of the supplemental benefits paid to the employee by the City in accordance with the provisions of the above paragraph. 2. An employee who is absent by reason of industrial disability may be returned to work by the City and given temporary light duties within the employee's ability to perform,pursuant to the City's Modified Duty Policy. 3. If a third party is found to be responsible for the employee's industrial injury and the employee recovers a judgment in damages from said third party, then all supplemental benefits received as provided for in Section 1 not already repaid from the other sources mentioned in Section 1 shall be repaid to the City by the employee. 4. Vacation and sick leave shall accrue while an employee is absent from work and receiving the supplemental benefits as set forth in Section 1 or the benefits of Section 4850 of the Labor Code of the State of California. Regular and Part-Time Regular employees while receiving Workers' Compensation temporary disability benefits, may, at their option, maintain their group insurance coverage for up to a maximum of a cumulative total of five (5)years,provided the employee pays his or her normal share of the group medical insurance program premium, if any. Holidays which occur during the period for which an employee is receiving temporary disability compensation shall not be recognized for compensation purposes. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 21 EXPENSES 1. The following provisions allow for a fair and equitable means of reimbursing expenses incurred while conducting City business, i.e., traveling to authorized meetings, seminars, training sessions, luncheons and other events approved by the Department Director. 2. Transportation-Related Expenses: A. When City business requires that an employee commute to or from work in a City owned or leased vehicle, that employer provided vehicle can not be used for any personal purposes. The value of this benefit is to be included in the assigned employee's gross wages at a rate established by the Internal Revenue Service(IRS). B. Whenever employees use their personal vehicles for City business at the City's convenience,reimbursement will be at the rate of thirty-four cents($.30)($.34)per mile. C. Whenever employees use their personal vehicle for the employee's convenience for out of City travel on official City business,the total allowance for transportation shall in no case exceed the cost of coach-class air passage if such service is available. (This would include any additional expenses that would be incurred for lodging, meals and other expenses.) D. The City is not responsible for any loss or damage,operating maintenance or repair expenses to personal vehicles used on City business. E. Travel time will be allowed on the same basis as if the employee had traveled by air. The employee will charge to the City only the time that would have been required to make the trip using airline transportation. All time in excess of air travel time will be charged to the employee. Exceptions may be authorized by the Finance Officer in cases where it is beneficial to the City for the employee to use their personal vehicle. 3. Lodging and Meal Related Expenses: A. Employees who have a temporary work assignment at such distance that it is impractical for them to return to their regular residence will be allowed actual personal expenses for board and lodging for the duration of such assignment provided they board and lodge at places to be approved by the City. The time spent by such employees in traveling to such temporary assignment at its beginning,to and from home on holidays and weekends, and from such temporary assignment at its conclusion and any reasonable expense incurred thereby will be paid by the City. B. Lodging expenses shall be reimbursed at actual and reasonable costs as approved by the Department Director, or designee. Receipts are required to support expenses. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 22 C. Meals shall be reimbursed up to the following maximum rates. An employee may choose to be paid a meal allowance as follows: Dinner $17.50 Lunch $75.6 9.50 Breakfast 6:96 7.00 Meal allowances are included in an individual's gross wages as determined by the Internal Revenue Service (IRS). D. • . . .. .. Whenever a meal is provided as an official part of a program in which an employee participates,regardless of whether the City pays a registration fee, a meal allowance or reimbursement will not be made. It is intended that employees be reimbursed for out-of-pocket expenses only. E. Any request for reimbursement in excess of the normal meal allowance must be accompanied by a written explanation as to the reason for the excess and will be subject to City approval by the Finance Officer. Alcoholic beverages are not a reimbursable expense. Receipts for meals must be provided in order to obtain reimbursement. F. Reimbursement of meal expenses for other than employees incurred while conducting business on behalf of the City shall be allowed provided itemized receipts are submitted detailing the guest's name,position,and organization. Such expenses shall be subject to City approval. 4. Reimbursement for reasonable costs other than meals and lodging incurred for the following incidental expenses shall be permitted providing such expenses are justified and itemized: Registration Tips and other gratuities Taxi,bus, parking and other transportation expenses Business telephone calls and faxes Other justifiable incidental expenses 5. Employees will be reimbursed for actual expenses only. Any savings realized by employees by ride sharing, lower accommodation costs, etc., shall accrue to the City. 6. The City shall pay the reasonable cost of repair or a prorated replacement of uniforms, glasses,watches or other personal property up to two hundred dollars($200.00)damaged in the course of employment. This provision does not apply to items lost or damaged as a result of negligence of the employee. 7. An employee who is required to change residence to accommodate employment with the City maybe compensated for moving expenses,under special circumstances,subject to approval by the City Manager. Refer to Personnel Policy Manual. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002- ,EFFECTIVE JUNE 23,2002 Page 23 UNIFORM ALLOWANCE A uniform allowance shall be granted to those miscellaneous sworn and non-sworn employees required to wear a uniform as part of their normal job duties as opposed to occasional ceremonial functions, as follows: Fire Chief $550 Deputy Fire Chief $550 Battalion Chief $550 Assistant Fire Marshal (Safety) $550 Police Chief $700 $800 The uniform allowance for Fire Management employees will increase to$575 effective July 1, 1998, and $625 effective July 1, 1999. The uniform allowance is normally paid in the week following the second pay day in July of each year and is for the purpose of maintenance and replacement of uniforms for the ensuing fiscal year. The allowance is not a reimbursement for the prior year. The first clothing allowance shall be a prorated amount for that period of time from the employee's date of employment to the following July 1. Upon separation,a pro-rated amount will be deducted from the employee's pay-outs to offset allowance forwarded at the beginning of the fiscal year. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 24 GROUP INSURANCE 1. Regular and Part-Time Regular employees are eligible to participate in a group insurance benefit program effective the first day of employment. City Council members may participate in the City's group health insurance program in the same manner as Regular employees. The City shall pay the full cost of the program for both employees and dependents for Regular employees, and o.ic=iialfthc pleinialin.ost for Pa1t-Ti,ne-RsulaL If a Part-Time Regular employee elects insurance coverage, the premiums shall be shared by the City and the employee on a prorated basis at the same ratio to full-time employee benefits as the employee's work hours bear to full-time employees' work hours. Coverage highlights include: 1) Life Insurance: Twice annual salary for employee, $3,000 for employee's dependents. 2) Health Benefits: $100 deductible per person per year; 80%payable for first$5,000 of eligible charges, except for hospital charges which are 100% payable; 100% thereafter up to one-two million dollars lifetime limit;professional fees based upon UCR; typical exclusions and limitations. The City will pay the cost of the first twelve(12)out-patient visits per calendar year for treatment related to alcohol or substance abuse and mental health disorders at 100%,with no deductible,and an additional twenty-four(24)visits per calendar year payable at eighty percent(80%) subject to the annual deductible. 3) Prescription Drug Card: No deductible; a $5.00 employee co-payment for generic prescriptions;an$8.50 employee co-payment for brand name prescription.Effective January 1, 2001, the employee co-payment will increase to $15.00 for brand name prescriptions if there is a generic equivalent available. There is also a provision for mail prescriptions. 4) Dental Benefits: No deductible and 100%of UCR for prevention;no deductible and 50%up to $2,000 per lifetime per person for orthodontia; $25 deductible and 80% of UCR (90`h percentile) up to $2,000 per person per year for all other eligible charges. 5) Long Term Disability: After three (3) months 60% of employee's salary to a maximum of$5,000 per month (effective July 1, 1998) integrated with all other income benefits payable to age 65. The City will pay for sworn Police management employees the same amount toward long term disability benefits as is paid for miscellaneous employees. 6) Vision Care: This plan shall be equivalent to Plan A available from the California Vision Service Plan. This plan has a $25 deductible, provides for an examination every twelve(12)months, lenses every twenty-four(24)months, and frames every twenty-four(24)months. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 25 2. The City will pay fifty percent (50%) of the group medical insurance program premium for each retiree including dependents,if any,presently enrolled and for each retiree in the future who goes directly from active status to retirement and continues the group medical insurance without a break in coverage. Following the death of a retiree, a surviving spouse may continue the insurance. Effective July 1, 1998,prospective retiree may continue dental and vision insurance coverage as a package under the fifty percent (50%) cost sharing basis provided the retiree also maintains the medical insurance. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 26 RETIREMENT PROGRAM 1. All Regular,Part-Time Regular and qualified Part-Time employees are covered by the State of California Public Employees' Retirement System (Ca1PERS) program pursuant to an existing contract. Elected officers may elect membership with Ca1PERS pursuant to Government Code Section 20361. 2. For enrolled employees and elected officials,the City pays the employee's contribution(7%) to the Public Employees' Retirement System at the 2% at 55 formula; one (1) year's compensation in formula; third level 1959 Survivors Benefits; Survivor Continuance allowance; credit for unused sick leave; and military service credit buy back option. For Police and Fire Management Employees: the City provides the two percent(2%)at age fifty (50) benefit formula; one (1) year's compensation in formula; fourth level 1959 Survivors Benefits; Survivor Continuance allowance; credit for unused sick leave; fifty percent (50%) ordinary disability benefit; City pays the employee's contribution of nine percent (9%); and military service credit buy back option. Additionally, Police and Fire Management employees are credited with employer-paid member contributions effective June 1, 1997. For Police and Fire Management employees, the City will begin providing the Ca1PERS 3%@ 50 retirement plan on December 8,2002,or as close to that date as is practicable and/or legally permissible. 3. Upon retirement and with City approval,employees may choose to have any accrued benefit payout due,all or in part,paid in up to three equal installments in a period not to exceed three calendar years. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 27 -, CONTINUING EDUCATION Regular, non-probationary,employees who complete City approved courses taken for credit with a passing grade may,upon application,be reimbursed for the folliwing expeasts: (1)tuition;ander cost of required textbooks and required materials, including but not limited to computer softwares calculators, videos,but not to include incidentals such as paper, pens and pencils. Employees must obtain prior approval from their Department Director. Reimbursement under this program shall be limited to two hundred dollars ($200.00)per course(semester/quarter). EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-__,EFFECTIVE JUNE 23,2002 Page 28 GRIEVANCE PROCEDURE Any grievance which may arise between a Regular or Part-Time employee and the City with respect to the interpretation or application of any of the terms and conditions of employment, including discharge, demotion or discipline of an individual employee, shall be determined by the provisions of this procedure,except that such matters which are included in the definition of impasse as set forth in Resolution No. 4217 are not grievable. Establishment of employee pay schedules are excluded from this procedure. Probationary employees shall not be entitled to invoke the Grievance Procedure with regard to matters of discharge or demotion. This shall not, however, prevent Probationary employee from exercising any other rights under this procedure. Every employee designated by the City to hear grievances shall have the authority to settle them. Step 1: The initial step in the resolution of a grievance shall be a discussion between the employee and the immediate Supervisor directly involved,who will answer within ten (10) days. This step shall be started within thirty(30) days of the date of the action complained of or the date the grievant became aware of the incident which is the basis for the grievance. This step may be taken during the working hours of the employee. Step 2: If a grievance is not resolved in the initial step, the second step shall be the presentation of the grievance, in writing, to the Division Head, who will answer, in writing,within ten(10)days.This step shall be taken within ten(10)days of the date of the immediate supervisor's answer to Step One. Step 3: If a grievance is not resolved in the second step,the third step shall be the presentation of the grievance,in writing,to the Department Director,who will answer,in writing, within ten(10) days. This step shall be taken within ten(10) days of the date of the Division Head's answer to Step Two. Step 4: If a grievance is not resolved in the third step,the fourth step shall be the presentation of the grievance, in writing, to the City's designated labor relations representative, who shall conduct an investigation and attempt to resolve the grievance. If no resolution of the grievance is achieved, the City's designated labor relations representative shall provide the employee with the City's answer to the grievance in writing. This step shall be taken within ten(10) days of the date of the Department Director's answer to Step Three. Step 5: If the grievance is not resolved in the fourth step, the fifth step shall be the presentation of the grievance, in writing,to the City Manager or designee,who shall answer, in writing,within ten(10)days. The fifth step shall be taken within ten(10) days of the date of the answer to Step Four. Step 6: If a grievance is not resolved in the fifth step,the sixth step shall be the referral of the matter to mediation by either party within twenty(20)calendar days of the answer to Step Five. Whenever a grievance is referred to mediation,either the employee or the City may request that the California State Mediation and Conciliation Service refer a state mediator. The mediator shall assist the parties in the resolution of the grievance in the same manner as that which is normally used in the mediation of EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 29 interest disputes. Referral to Step Seven shall not occur until the mediator has released the parties from the mediation process. Step 7: If a grievance is not resolved in the sixth step of this procedure,the seventh step shall be referral by either the City or the employee to arbitration. The seventh step shall be taken within twenty(20) days of the date of the answer to Step Six. ( a) An Arbitrator shall be appointed on each occasion that a grievance is submitted to arbitration. The arbitrator shall be chosen by mutual agreement of the City and employee. In the event that City and the employee or their representative are unable to agree on the selection of an Arbitrator,they shall request the State of California Mediation and Conciliation Service to nominate five (5) persons to be the Arbitrator. The City and the employee or their representative each will alternately challenge two (2) of such nominees, the party having the first challenge to be determined by lot. The remaining nominee shall be accepted as the Arbitrator and their compensation and expenses shall be borne equally by the City and the employee. Notwithstanding the foregoing, the City and the employee may, by mutual consent, agree on a single arbitrator to hear grievances, on the same cost sharing basis. The City and the employee shall pay the compensation and expenses of their respective witnesses. At the employee's or their representative's request, the City shall release employees from duty to participate in arbitration proceedings. (b) The Arbitrator shall hold such hearings and shall consider such evidence as to the Arbitrator appears necessary and proper. The decision of the Arbitrator shall be final and binding on City and the employee , provided that such decision does not in any way add to,disregard or modify any of the provisions of City policies, resolutions or ordinances. Failure by the employee to meet any of the aforementioned time limits as set forth in Steps 1, 2, 3, 4, 5, 6, and 7 will result in forfeiture. If the City fails to answer a grievance on a timely basis, the grievance may be advanced to the next step. Except,however, that the aforementioned time limits may be extended by mutual agreement. Grievances settled by forfeiture shall not bind either party to an interpretation of City policies,practices,resolutions or ordinances,nor shall such settlements be cited by either party as evidence in the settlement of subsequent grievances. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 30 DEFINITIONS "ACTUAL SERVICE"means paid service on the City payroll in a position in the City service. "ALLOCATION" describes an individual position for which funds have been budgeted to cover salary and related costs. "CALENDAR YEAR" means a year starting on January 1 and terminating at the close of the following December 31. "CITY"means the City of Redding in the State of California. "CLASS"or"CLASSIFICATION"defines a grouping of positions on the basis of the nature of the tasks, duties and responsibilities performed so as positions are sufficiently similar that the same descriptive title, the same requirements as to education, experience, knowledge and ability may be demanded of incumbents,and so that the same schedule of compensation may be made to apply with equity. "COMPENSATION" means the salary, wage, allowances and all other forms of valuable consideration earned by, or paid to, any employee by reason of service in any position,but does not include any allowances authorized and incurred as incidents to employment. "CONTINUOUS SERVICE" means service uninterrupted from date of appointment except for authorized absence. "DAY"means calendar day unless specified as a working day. "DEPARTMENT"includes office, and"office"includes department. "DEPARTMENT DIRECTOR" means the head of an established office or department having supervision of such department and office. "EMPLOYEE"means a person legally occupying a position in City service. "EXEMPT EMPLOYEE"means an employee in a position not covered by the provisions of the Fair Labor Standards Act, includes most professional, supervisory, managerial and executive positions. "MONTH" means a period from a particular calendar date in a month to and including the immediately preceding date of the following month. "NON-EXEMPT EMPLOYEE"means an employee in a position covered under the provisions of the Fair Labor Standards Act. "POSITION" means a collection of duties and responsibilities which require the full- or part-time services and employment of one person. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 31 "SENIORITY"means total length of continuous service with the City. Continuity of service will not be broken and seniority will accrue when an employee is: called to active duty in the Armed Forces of the United States;on active duty with the National Guard;absent due to industrial injury;on leave of absence; or on excused leave. "TITLE"means the designation given to,or name applied to,a classification to the legally appointed incumbent of each position allocated to the class. "YEAR" means a period from a particular calendar month and date of a year to and including the immediately preceding date of the same month in the following year. EMPLOYEE BENEFIT POLICIES-RESOLUTION NO.2002-_,EFFECTIVE JUNE 23,2002 Page 32