Hillsborough City Council
January 13, 2025

Memorandum of Understanding
Public Works and Clerical Unit 2025-2027
The arbitrator shall conduct a hearing at which he/she will hear evidence and render a decision on the issue or issues submitted to him/her. If the parties cannot agree on the issue to submit, the arbitrator shall determine the issues.

The Town and the Union agree that the jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provisions or provision of this Memorandum and/or Department policy at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of this Memorandum or impose any limitations or obligations not specifically provided for under the terms of this Memorandum. The arbitrator shall be without power or authority to make any decision that requires the Town to do an act prohibited by law.

After a hearing and after both parties have had an opportunity to make written arguments, the arbitrator shall submit in writing to all parties his/her finding and recommended award.

The award of the arbitrator shall be final and binding on both parties and on any affected bargaining unit employee.

Either party may elect to have representation by legal counsel for the arbitration hearing.

Arbitration Costs
All expenses for the arbitration shall be paid equally by the Town and the Union, except that each party shall be responsible for the expenses of its own attorney, witnesses and transcripts.

Timeliness
All grievances must be presented at the proper steps in accordance with the time limitations herein and unless such grievances are so presented, the right to file such grievances shall be waived. Any grievance not appealed to the next succeeding step within the time limits specified will be considered withdrawn and not eligible for further appeal. If the Town fails to respond within the prescribed time limits of any one step, the last Town response shall be deemed to be the Town’s position for the next succeeding steps. Time limits can be extended by mutual consent, however that any mutual agreements to extend deadlines are not precedential.

56. Letters of Reprimand
A written reprimand may be removed from an employee’s personnel file 24 months after it is placed there, provided that the employee does not receive a written reprimand for a similar incident or offense during that 24 month period. If the employee receives a written reprimand for a similar incident or offense with the 24 month period, the initial written reprimand shall remain in the employee’s file for the duration of time the succeeding reprimand stays in the file.

57. No-Strike Clause
Both parties of this memorandum recognize the obligation of the Union and of the employees to refrain from engaging in any strike or slowdown of work. In fulfillment of -111-

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Public Works and Clerical Unit 2025-2027
that obligation, the parties recognize that there will be no strike, sympathy strike, slowdown, sick-ins, curtailment of work or interference with the Town’s operations on the part of either the Union or employees during the term of this Memorandum or anytime this Memorandum is continued by the express mutual consent of the parties. It is recognized that violation of this clause will result in discipline up to and including terminations.

58. Safety
Observance of Safety Rules and Regulations
Both the Town and the Union shall expend a reasonable effort to ensure that work is performed with a maximum degree of safety, consistent with the requirement to conduct efficient operations.

Each employee covered by this MOU agrees to comply with all safety rules and regulations in effect and any subsequent rules and regulations that may be adopted.

Employees further agree they will report all accidents and safety hazards to the appropriate management official immediately. Any employee having knowledge of or who is a witness to an accident shall give full and truthful testimony as to same.

Safety Program
The Town has established a Safety and Risk Management Committee. The Committee shall have an employee representative from both bargaining units.

59. Layoff
Whenever, in the judgment of the Town, it becomes necessary to abolish positions, the Town may abolish any position included in the bargaining unit and the employee holding such position may be laid off subject to any bumping rights he or she may have. The Town may lay off employees due to lack of work or funds.

In a reduction in force, employees with the least length of service in the classification shall be laid off first provided that, in the determination of the City Manager, the skill and qualifications of the remaining employees are equal to that of the laid off employee.

Employees to be laid off from a classification shall have a right to bump employees in a lower classification in accordance with seniority with the Town provided that, in the determination of the City Manager, they possess superior skill and qualifications.

Employees affected by a layoff shall retain employment rights in a position previously held in a lower classification and shall revert back to said position with full seniority rights and be integrated with the seniority ranking of employees in the lower classification.

60. Reinstatement
A regular employee who has resigned in good standing may be reinstated to a vacant position of the same classification as the previous position within a period of two (2) years from the effective date of resignation. Reinstatement will be made at the salary step determined by the City Manager. A reinstated employee will not be entitled to prior service credit in calculating Town benefits.
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Memorandum of Understanding
Public Works and Clerical Unit 2025-2027
V. TERM
This MOU shall be in full force and effect until midnight, December 31, 2027.

Town of Hillsborough Teamsters Local 856, IBT
_____________________________ ______________________________ Doug Davis, City Manager Mark Leach, Teamsters Local 856 _____________________________ ______________________________ Dated Dated
______________________________
Peter Finn,
Secretary-Treasurer/Principal Officer
______________________________
Dated
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Memorandum of Understanding
Public Works and Clerical Unit 2025-2027
Appendix A – Salary Schedules

A B C D E
PW/Clerical effective first full pay period of 2025 – Bi-weekly Accounting Technician 2025 3,338 3,505 3,680 3,864 4,057 2026 3,471 3,645 3,827 4,019 4,219
2027 3,610 3,791 3,981 4,180 4,388
Administrative Assistant 2025 2,979 3,128 3,284 3,449 3,621 2026 3,099 3,253 3,415 3,587 3,766
2027 3,223 3,383 3,552 3,730 3,917
Building Inspector I 2025 3,800 3,981 4,180 4,389 4,608 2026 3,952 4,140 4,347 4,564 4,792
2027 4,110 4,305 4,521 4,747 4,984
Building Inspector II 2025 4,180 4,389 4,608 4,838 5,081 2026 4,347 4,564 4,792 5,032 5,284
2027 4,521 4,747 4,984 5,233 5,495
Building and Planning Technician I 2025 2,979 3,128 3,284 3,449 3,622 2026 3,099 3,253 3,415 3,587 3,767
2027 3,223 3,383 3,552 3,730 3,918
Building and Planning Technician II 2025 3,278 3,441 3,613 3,794 3,984 2026 3,409 3,579 3,758 3,946 4,143
2027 3,545 3,722 3,908 4,104 4,309
Lead Facilities Worker 2025 3,689 3,873 4,067 4,270 4,483 2026 3,836 4,028 4,229 4,441 4,663
2027 3,990 4,189 4,399 4,619 4,849
Lead Maintenance Worker 2025 3,513 3,689 3,873 4,067 4,270 2026 3,654 3,836 4,028 4,229 4,441
2027 3,800 3,990 4,189 4,399 4,619
Maintenance Worker I 2025 2,707 2,836 2,978 3,127 3,283 2026 2,815 2,950 3,098 3,252 3,414
2027 2,928 3,068 3,221 3,382 3,551
Maintenance Worker II 2025 2,978 3,127 3,283 3,447 3,619 2026 3,098 3,252 3,414 3,585 3,764
2027 3,221 3,382 3,551 3,728 3,914
Office Assistant 2025 2,729 2,865 3,009 3,159 3,317
2026 2,838 2,980 3,129 3,286 3,450
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2027 2,951 3,099 3,254 3,417 3,588
Public Works Inspector I 2025 3,513 3,689 3,873 4,067 4,270 2026 3,654 3,836 4,028 4,229 4,441
2027 3,800 3,990 4,189 4,399 4,619
Public Works Inspector II 2025 3,864 4,058 4,260 4,474 4,697 2026 4,019 4,220 4,431 4,652 4,885
2027 4,180 4,389 4,608 4,839 5,081
Senior Accounting Technician 2025 3,671 3,855 4,047 4,250 4,463 2026 3,817 4,009 4,209 4,420 4,641
2027 3,970 4,169 4,378 4,596 4,827
Senior Building and Planning
Technician 2025 3,768 3,957 4,155 4,363 4,581
2026 3,919 4,115 4,321 4,537 4,764
2027 4,076 4,280 4,494 4,719 4,955
Senior Building Inspector/Plan
Checker 2025 4,715 4,950 5,198 5,457 5,730
2026 4,903 5,148 5,406 5,676 5,959
2027 5,099 5,354 5,622 5,903 6,197
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MEMORANDUM OF UNDERSTANDING

TOWN OF HILLSBOROUGH
AND
TEAMSTERS UNION LOCAL NO. 856 I.B.T.

Public Works and Clerical Unit
January 1, 20252 – December 31, 20274
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ATTACHMENT 2

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Public Works and Clerical Employees Unit
Memorandum of Understanding 20252-20274
Table of Contents
Section Subject Page
I. GENERAL

1. Bargaining Unit 4

2. Management Rights 4

3. Union Rights 5

4. Payroll Deduction 6

5. Union Representatives 6

6. Personnel Files 7

7. Separability 7

8. Maintenance of Benefits 7

9. Sole and Entire Agreement 7

10. No Discrimination 7

11. New Work 8

II. COMPENSATION

12. Salary 8

13. Overtime 9

14. Compensatory Time 9

15. Call Back Pay 10

16. On-Call Shifts 10

17. On-Call Vehicle 11

18. Stand-By Pay 11

19. Rest Periods 11

20. Uniforms 12

21. Out-of-Class Pay 12

22. Acting Pay 12

23. Incentive Pay 12

24. Bi-Lingual Pay 15

25. Notary Public Pay 15

26. Public Works Inspector Training 15
III. BENEFITS

27. Health Insurance 15

28. Retiree Medical Savings Account 17

29. Post Retirement Payments 17

30. Disability Income Protection 18

31. Dental and Orthodontia Plan 18

32. Vision Plan 18

33. Life Insurance 19
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34. Retirement 19

35. Wellness 19

36. Military and Spousal Military Leave 20

37. Leave of Absence without Pay 20

38. Jury Duty 20

39. Sick Leave 20

40. Death or Critical Illness Leave 22

41. Industrial Disability Leave 22

42. Family Medical Leave 22

43. Short Term Disability 23

44. Vacation 24

45. Vacation Buy-Back 25

46. Holidays 25

47. Tuition Reimbursement 26
IV. EMPLOYMENT

48. Notification of Examination Rights and Review of Papers 27

49. Probation 27

50. Attendance 28

51. Hours of Work 28

52. Discipline 28

53. Grievance 29

54. Letters of Reprimand 32

55. No Strike Clause 32

56. Safety 32

57. Layoff 32

58. Reinstatement 33
V. TERM 33
Appendix A – Salary Schedule 34
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024

The Memorandum of Understanding (“MOU”) between the
Town of Hillsborough (“Town”) and Teamsters Union Local No. 856, I.B.T. (“Union”) representing the Public Works and Clerical Employees Unit for the period of January 1, 20252 through December 31, 20274 shall read as follows:

I. GENERAL

1. Bargaining Unit
The bargaining units covered by this MOU shall include all allocated positions of:

Clerical Unit
 Accounting Technician
 Senior Accounting Technician
 Service Clerk I/II
 Office Assistant
 Administrative Assistant
 Sr. Bldg. Inspector/Plan Checker
 Building and Planning Support Technician
 Permit Technician
Maintenance Unit
 Building Inspector I/II
 Facilities Lead Worker
 Maintenance Worker I/II
 Maintenance Lead Worker
 Public Works Inspector I/II
 Water Quality Technician

2. Management Rights
Except as modified by this MOU, it is understood and agreed that the Town retains all of its rights, power and authority to direct, manage and control the Town to the full extent of the law. The exercise of powers, rights, authority, duties and responsibilities by the Town, the adoption of policies, rules, regulations and practices in furtherance thereof, the use of judgment and practices in furtherance thereof, and the use of judgment and discretion in connection therewith shall be limited only by the specific and express terms of this MOU and then only to the extent such specific and express terms are in conformance with the law.

Any of the rights, powers, authority and functions that the Town possessed prior to the execution of this MOU are retained by the Town except as specifically limited by this MOU.
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Nothing in this section shall be construed to excuse the Town from its obligation to meet and confer with the Union regarding any subject or matter not set forth in this section where required to do so by statute.

3. Union Rights
Communications with Employees
The Union shall be provided suitable space on a bulletin board at the work location for posting notices concerning official Union business.

The Town shall post the Memorandum of Understanding between the Town and Teamsters Local 856 on the Town’s website.

New Employee Orientation
The Town shall provide the Union access to its new employee orientation onboarding process, in which all employees new to the bargaining unit are advised of their employment status, rights, benefits, duties and responsibilities, or any other employmentrelated matters. The Union representative shall be provided at least 30 minutes to meet with the employee during this process. The Union shall receive not less than 10 days’ notice in advance of an orientation, except that a shorter notice may be provided in a specific instance where there is an urgent need critical to the employer’s operations that was not reasonably foreseeable.

Advance Notice
Except in cases of emergency as provided below in this subsection, the Union, if affected, shall be given reasonable advance written notice of any ordinance, resolution, rule or regulation directly relating to matters within the scope of representation proposed to be adopted by the Town and shall be given the opportunity to meet and confer with the appropriate management representatives prior to adoption.

In cases of emergency when the foregoing procedure is not practical or in the best public interest, the Town may adopt or put into practice immediately such measures as are required. At the earliest practicable date thereafter, the Union shall be provided with the notice described in the preceding paragraph and be given the opportunity to meet and confer with the appropriate management representatives. As used herein, “emergency” shall mean any situation in which proper management of the Town requires immediate action, or in which immediate action is necessary for the preservation of life or property.

List of Unit Employees
The Town shall furnish the Union with the names, current rate of pay; classifications; department; work location, work, home and personal cellular numbers; work and personal email addresses and home address that are on file with the Town. The Town shall notify the Union of the date of hire of each new, transferred or promoted employee appointed to a position covered by this memorandum. Notice shall be provided to the Union within thirty (30) calendar days of hire, or by the first pay period of the month following hire. The Town shall notify the Union when an employee leaves the unit. The Town shall provide -120-

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the Union with the above information for all employees in the bargaining unit every 120 days.

4. Payroll Deduction
The Town will make its reasonable and customary efforts to ensure that the entity processing Town payroll processes the payment obligations in the usual and customary manner and time frames.

The Town shall withhold Union dues from the salary of an employee and remit withholdings to the Union, provided that the Union certifies in writing to the Town that the Union has and will maintain each employee’s authorization for such deductions.

Leave without Pay/Temporary Assignment out of the Unit – Employees on an unpaid leave of absence or temporarily assigned out of the unit covered by this agreement for an entire pay period or more shall have Union dues suspended for the period of the leave or temporary assignment only and such an employee shall have Union dues reinstated upon return.

Indemnifications/Hold Harmless Clause – The Union agrees to fully indemnify, defend and hold harmless the Town and its officers, employees and agents against any and all claims, proceedings, settlements and/or liability regarding the legality of this Section or any action taken or not taken by or on behalf of the Town under this Section.

Teamsters D.R.I.V.E. Program – The Town will provide payroll deductions for those members who voluntarily elect to participate in the Teamsters D.R,I.V.E. program (civic engagement for voter registration and political education).

D.R.I.V.E. or Democrat, Republican, Independent Voter Education, is the Teamsters’ political action committee. D.R.I.V.E. is non-partisan and independent from any political party. D.R.I.V.E.is supported through voluntary contributions from Teamsters members.

Such donations are not U.S. Tax Deductible.

The Employer agrees to deduct from the paycheck of all employees covered by this agreement voluntary contributions to D.R.I.V.E. D.R.I.V.E. shall notify the employer of the amounts designated by each contributing employee that are to be deducted from their paycheck on a weekly basis for all weeks worked. The employer shall transmit to D.R.I.V.E. national headquarters on a monthly basis, in one (1) check the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee’s social security number and the amount deducted from that employee’s check.

The Union agrees to hold the Employer harmless from loss of any judgement of a court of competent jurisdiction and from any order of the Labor Commission or agency of -121-

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government in connection with or arising out or any deduction made pursuant to this Agreement.

5. Union Representatives
Union representatives may visit work locations where bargaining unit members are performing work provided, however, they shall not interfere with the normal conduct of work or duties of the employees as determined by the City Manager. The Union representative shall first advise the City Manager or his or her designated representative of his or her presence on the premises before contacting any employee covered by this MOU.

Activities such as the soliciting of membership, collection of dues, holding membership meetings, campaigning for office, conducting elections and distributing literature are strictly prohibited during working hours without the prior approval of the City Manager or his or her representative.

Except for the purpose of meeting and conferring for a new MOU, only one on-duty unit member designated as a steward shall be permitted to represent unit members or otherwise engage in activities on behalf of the unit at any time.

In the event the Town believes that the Union representatives are abusing the provisions of this Section, it shall contact the Union in writing to arrange a mutually acceptable time and place to investigate the Town’s complaint and to assure full compliance by the Union representative.

6. Personnel Files
An employee, or on presentation of written authorization from the employee an employee’s representative, shall have specific access to the employee’s personnel file upon request and reasonable convenience of the City Manager’s Office. Documentation in the personnel file relating to the investigation of a possible criminal offense, background information on the employee and letters of reference may be specifically excluded from the inspection and review by the employee and/or the employee’s representative.

Information which would be privileged under State law pursuant to the attorney-client privilege or the work product doctrine may also be excluded. Personnel files may only be reviewed in the presence of a designated employee of the City Manager’s Office. The Town will provide employees with copies of their personnel evaluations and warning letters, if any. Upon request, the employee may at his or her expense copy those portions of his or her personnel file not specifically excluded from review by this section.

7. Separability
If any section of the MOU should be found invalid, unlawful or unenforceable by reason of any existing or subsequently enacted legislation or by judicial authority, all other articles and sections of this MOU shall remain in full force and effect for the duration of the MOU. -122-

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In the event of invalidation of any article or section, the Town and the Union agree to meet within 30 days for the purpose of renegotiating said article or section.

8. Maintenance of Benefits
All rights, privileges and terms and conditions of employment in full force and effect prior to this MOU and not in conflict herewith shall become a part hereby and remain until thereby mutually modified by the parties hereto.

9. Sole and Entire Agreement
The parties acknowledge that during the negotiations which resulted in this MOU each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from this area of meeting and conferring, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this MOU. Except as provided below, for the life of this MOU each party voluntarily and unqualifiedly waives the right to, and each agrees that the other shall not be obligated to, meet and confer with respect to any subject or matter referred to or covered by this MOU.

10. No Discrimination
There shall be no discrimination by either Union or Town on any basis prohibited by State or Federal law or on account of any legitimate Union activity.

11. New Work
The Town agrees to meet and confer if required by State statutory or case law concerning the impact of new equipment or machinery on the bargaining unit.

II. COMPENSATION

12. Salary
o Effective the first full pay period in January 202522, the salaries of bargaining unit employees shall be increased by 3.725%.
o Effective the first full pay period in January 202623, the salaries of bargaining unit employees shall be increased by 4.03.75%.
o Effective the first full pay period in January 202724, the salaries of bargaining unit employees shall be increased by 4.03.75%.

The relationships between classes in a series will be maintained as follows:

Accounting Technician Series
 Senior Accounting Technician – Steps D and E shall be 5% and 10% respectively above Step E Accounting Technician
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Maintenance Worker Classes:
 Maintenance Worker I – Steps A and B shall be 10% and 5% respectively below Step A Maintenance Worker II
 Maintenance Leadworker – Step E will be 18% above Maintenance Worker II Step E
 Public Works Inspector – Step E will be 18% above Maintenance Worker II Step E
 Water Quality Technician – Step E will be 18% above Maintenance Worker II Step E
 Facilities Leadworker – Step E will be 5% above Maintenance Leadworker Step E
Clerical Classes:
 Service Clerk I – Steps A and B shall be 10% and 5% respectively below Step A Service Clerk II
 Service Clerk II – Step E will be 8.5% below Administrative Assistant Step E  Building and Planning Support Technician – Step E will be 9.7% more than Administrative Assistant Step E.

Building Inspector Classes:
 Building Inspector I – Steps A and B shall be 10% and 5% respectively below Step A Building Inspector II
New employees will be appointed at Step A. With the approval of the City Manager, Department Heads can recommend that candidates be appointed to a position at any step within the range.

Upon the employee’s successful completion of the probationary period, the Department Head shall recommend to the City Manager the advancement of the employee’s salary to Step B. Every 12 months thereafter following a performance evaluation, the Department Head shall make a recommendation regarding the employee’s advancement to the next step in the salary range.

In recognition of an exemplary performance evaluation, a Department Head can recommend that an employee’s salary be adjusted to the next step in the range at any time.

Upon the Department Head’s recommendation, employees who have served two years in an entry-level “I” position, and who receive average or above average evaluations shall be reclassified to a journey-level “II” classification.

13. Overtime
Hours worked in addition to an employee’s regularly scheduled shift of eight hours or more shall be compensated at an overtime rate of one and one-half hours times the employee’s base rate for each hour worked (e.g.: If an employee is normally scheduled -124-

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Public Works and Clerical Unit 2022-2024
to work eight hours in a day, the ninth hour will be paid at the overtime rate; if an employee is scheduled to work nine hours, the tenth hour will be paid at the overtime rate, etc.).

The employee can choose to receive overtime as compensation or as compensatory time off (CTO).

All members who work in excess of eighty (80) hours in a two (2) week work period shall also be eligible for overtime for each hour worked in excess of eighty.

Overtime work which becomes available at the end of an employee’s regularly scheduled shift on the identifiable project on which the employee is working shall be offered first to that employee.

14. Compensatory Time Off
The maximum amount of CTO that may be accrued is one hundred (100) hours. An employee who has reached the limit shall be paid overtime compensation in cash for any additional overtime worked.

If the POA maximum amount of compensatory time off (currently 100 hours) increases, then the maximum amount of compensatory time off for this bargaining unit will be modified to match the maximum amount of compensatory time off that the POA can accumulate. This provision will sunset on December 31, 2021.

15. Call Back Pay
Compensation for a call back shall be earned at a minimum of two (2) hours and shall be compensated either in pay or compensatory time at the overtime rate. In addition to the two (2) hour minimum call back compensation, employees will receive travel time and mileage as follows:

Employees that live more than 20 miles from the corporation yard:
 Shall be paid sixty (60) minutes travel time to work
 Shall receive $3020 in lieu of mileage and tolls.

Employees that live 20 miles or less from the corporation yard:
 Shall be paid thirty (30) minutes travel time to work  Shall receive $3010 in lieu of mileage and tolls
No compensation will be given for travel time away from work.

In an emergency where property may be damaged or there is a danger to public health or safety, the Town may call any employee to report back to work. -125-

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16. On-Call Shifts (This section applies only to the Maintenance Unit) Employees assigned to weekend or holiday on-call shifts shall be compensated for six (6) hours at the overtime rate. On-call shifts require that at minimum, an employee report to work to complete a check of the Town’s water pressure systems, check Vista Park and other work assigned by the Director. The employee will then be free to leave the Town’s worksites and will serve as the primary person to receive return-to-work calls throughout the day. While serving an on-call shift, employees must return to work within sixty (60) minutes of the call-back. Additional call backs will be administered per Section 15.

The On-Call policy in place at the time of the adoption of the MOU shall remain in place for the term of the MOU unless the parties mutually agree to modifications. The On-Call policy shall include providing assigned employees to the On-Call Shift a Town provided cell phone.

For each scheduled on call shift, employees that live more than 20 miles from the corporation yard shall receive $3020 in lieu of mileage and tolls. If an employee lives in a location that requires them to cross a toll bridge, the employee will receive $25 in lieu of mileage and tolls.

For each scheduled on call shift, employees that live 20 miles or less from the corporation yard will receive $3010 in lieu of mileage and tolls.

17. On-Call Vehicle (This section applies only to the Maintenance Unit) Employees who respond to a call will pick up the marked utility truck, which includes the necessary equipment to operate the Town provided cell phone hands free, at the Municipal Services Center.

The Town reserves its right to assign equipment and vehicles.

18. Stand-By Pay (This section applies only to the Maintenance Unit) Employees designated by the Director of Public Works to serve in a stand-by status for a twenty-four hour period starting at the completion of their regular work day shall receive two (2) hours of straight time in either cash or compensatory time off (at the employee’s option), at a rate equal to the employee’s base rate.

Employees assigned to stand-by duty will be provided Town issued cell phones and appropriate equipment that will allow for hands free use.

Employees who serve in stand-by status on Saturday or Sunday shall be compensated for three (3) hours of straight time in either cash or compensatory time off at the employee’s option, at a rate equal to the employee’s base rate.

Employees who serve in stand-by status on Town recognized holidays shall be compensated for four (4) hours of straight time in either cash or compensatory time off (at the employee’s discretion) at a rate equal to the employee’s base rate. -126-

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Employees who agree to serve in a stand-by status must be able to respond to a callback within one (1) hour. Employees who fail to respond to a notice of call-back will not be eligible for stand-by compensation.

A Labor/Management committee will be established to discuss, establish and maintain a procedure regarding on-call and stand-by. It is the intent to put into writing the selection, trade and notification process.

19. Rest Periods
If an employee works more than fourteen (14) hours in a consecutive twenty-four hour period, the employee will be provided with an eight (8) hour unpaid rest period from the time last worked prior to returning to duty.

If an eight hour rest period overlaps with the start time of the employee’s regularly scheduled shift, the employee will only be required to work the remainder of the shift after the rest period is completed. The employee will be compensated at the regular rate as if the employee had worked the entire regularly scheduled shift. For example, if an employee’s eight hour rest break started at 0330 hours, the employee would report for work at 1130 hours and would work until the end of the regularly scheduled shift at 1700 hours. The employee would be compensated for the entire regular shift of 0730 – 1700 hours as if he or she had worked the entire day. Similarly, if an employee responds to an emergency at 2300 hours and continuously works until 1300 hours, the employee will be released for the eight hour rest at 1300 hours and compensated for the remainder of the regularly scheduled shift. Employees who fail to report to work after the rest period are ineligible for this compensation.

If an employee cannot be assigned to a rest break at fourteen hours due to the nature of the emergency, the employee shall be released to a rest break after working eighteen (18) consecutive hours.

20. Uniforms
The Town will continue to provide special work clothing as needed and to repair and replace such clothing as needed with the approval of the Department Head, per the Department Policy.

21. Out-of-Class Pay
Unit employees assigned the duties of a higher position by the Director shall be eligible for out of class pay. Out of class assignments must last a minimum of two consecutive days. Out of class pay will begin on the first day. Assignments shall be based on seniority provided the senior employee’s performance is evaluated as average or above average performance.

Out of class pay shall equal 5% of the employee’s base rate, not to exceed the maximum of the higher position’s salary range.
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22. Acting Pay
Unit employees assigned by the Director to the duties of a higher classification that is vacant or the incumbent is on a long term leave of absence shall be eligible for Acting pay. Acting assignments must last a minimum of 30 consecutive days. Acting pay will begin on the first day of the assignment. Acting assignments for vacant positions without an incumbent shall not last more than 9 months unless mutually agreed upon by the Town and Union.

Acting pay shall be a minimum of 5% of the employee’s base rate or the pay step to which the employee would have been promoted to the position, whichever is higher. Acting pay shall not exceed the maximum of the higher position’s salary range.

23. Incentive pay
Employees who are assigned by their Director to duties where specialized trainings or certifications are mandated to perform the job are eligible to receive premium pay after completing the training/receiving certification as follows:

Water Division
Current Program Current Requirements/Incentives
D-1 Required
D-2 $100/month
D-3 Additional $ 50 - total $150/month
New employees* Requirements/ Incentives
D-1 Required within 12 month of hire for MW I
D-2 $100/month-Required with 24 months of hire/promotion for MW II
D-3 Additional $ 50 - total $150/month
*This requirement is for employees hired after 12/15/2015 Sewer Division
Current
Employees**
Requirements/ Incentives
CW-1 Required
CW-2 $100/month
CW-3 Additional $ 50 total $150/month
New employees* Requirements/ Incentives
CW-1 Required within 12 months of hire for MW I
CW-2 $100/month-Required with 24 months of hire/promotion for MW II
CW-3 Additional $ 50 - total $150/month
*This requirement is for employees hired after 12/15/2015 **Current employees (hired prior to 12/15/2015) are required to take the CW-1 certification test yearly until passed
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
The Street and Facilities Division staff has the option to obtain either the Water or Sewer certifications. The certifications will only be required if the Street and Facilities Division participate in the On-Call program.

Note: Maximum of $ 150 month incentive pay for the for the above division certifications.

Class A/B driver’s licenses
Current employees Requirements/ Incentives
Class B License $125/month
Class A License Additional $100 50 total $225175/month
Hired prior to 12/15/2015
Future employees Requirements/ Incentives
Class B License $125/month-Required with 24 months
Class A License Additional $100 50 - total $225175/month Hired after 12/15/2015
No maximum number of staff for the Class B or Class A licenses.

Backhoe Certification
Proposed Program Requirements/ Incentives
Backhoe operator A $100/month
Note: 1. Maximum of three operators

2. Rotating operator schedule (if we have more than 3 qualified operators, as determined by the PW
Director)

3. The operators are required to be available for emergency service.

4. Yearly review of qualifications, availability and need will be done by the PW Director for each operator. Operators can be dropped from the program if they do not meet the minimum standards or are consistently unavailable (exceptions: prescheduled time off, verified illness).

Public Works Inspector
Current
Employees
Requirements/ Incentives
APWA PW inspector or
equivalent, determined by PW
Director
Required
Approved ICC Cert $100/month
Additional approved ICC Cert Additional $ 50 – total max $150/month Future employees Requirements/ Incentives
APWA PW inspector or
equivalent, determined by PW
Director
Required within 12 months of hire/promotion
Approved ICC Cert $100/month
Additional approved ICC Cert Additional $ 50 – total max $150/month -129-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Up to two additional Public Works Department employees are eligible for APWA PW inspector or equivalent, or ICC certifications.

Employees hired after December 15, 2015, who are required to get certifications but do not obtain them within the required timeframe (the timeframe will include 2 opportunities to take the required tests), will be separated from employment with the Town.

Employees hired prior to December 15, 2015 must continue to retake the certification tests until passed.

Employees are eligible for incentive pay when all required documentation has been submitted to the department.

24. Bi-Lingual Pay
Any member of the bargaining unit approved by their Director who demonstrates proficiency in Spanish, Cantonese, Mandarin, American Sign Language or other language approved by the City Manager is eligible for an additional $10050 per pay period.

Proficiency shall be measured by the successful completion of a test administered by an agency selected by the Town. Employees are responsible for making arrangements for their test. Employees will not be compensated for the time spent scheduling, preparing for or taking a proficiency test. The Town shall provide the use of its facilities for the test and pay for the cost of the examination, if any. Employees shall recertify every two years.

25. Notary Public Pay
Any member of the bargaining unit approved by their Director who is an maintains their Notary Public Certification and is required to perform notary tasks for the Town is eligible for an additional $10050 per pay period.

26. Public Works Inspector Training
Maintenance Worker II’s who participate in the Public Works Inspector Training Program and are assigned Public Works Inspection duties by the Director for a minimum period of forty (40)/thirty-six (36) consecutive work hours shall be eligible for Public Works Inspectors Pay which is an additional 10% of base pay for such assignments.

27. Education Pay
Effective the first full pay period in January 2027, any member of the Clerical Bargaining Unit, who has a degree that exceeds the minimum qualifications of their classification, is eligible for education pay as follows:

Degree above MQ Amount per pay period
BA/BS Degree $50 per pay period
MA/MS Degree $75 per pay period
-130-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Education pay shall not be compounded. An employee shall receive the highest level of education pay they qualify for.

It is the employee’s responsibility to notify the Town of their eligibility for education pay.

Employees are required to provide Human Resources official copies of their college transcript or diploma as proof of eligibility.

Town will not make retroactive payments to employees.

Employees are not eligible for education pay until the completion of 12 months of employment with the Town.

III. BENEFITS
287. Health Insurance
Active Employees
The Town’s contribution towards the employee’s medical coverage shall be determined by the coverage level the employee selects. The Town’s contribution shall be as follows:
 Employee only – shall not exceed the Bay Area Blue Shield Access + Region 1 Health Plan Employee only
 Employee plus one – shall not exceed the Bay Area Blue Shield Access + Region 1 Health Plan Employee plus one
 Employee plus 2 or more - shall not exceed the Bay Area Blue Shield Access + Region 1 Health Plan Family
If, during the term of this MOU, the Blue Shield Access + plan is not available in CalPERS Region 1, then the Town’s medical premium contribution shall be set at the 2nd highest HMO offered in CalPERS Region 1.

If, during the term of this MOU, the 2nd highest HMO becomes the Town’s medical premium contribution, then future year increases shall be subject to the 15% increase cap as defined below.

Each January 1, during the term of this MOU, the Town’s medical contribution shall increase by up to 15% of the appropriate Blue Shield Access + rate. The 15% increase shall be applied to the current Town’s monthly contribution rate. Any increase over 15% would be the responsibility of the employee, to a maximum of $100 per month.

Under no circumstances shall the Town’s increased monthly contribution be used to offset the employee’s contribution rate effective on December 1st of the previous year.

In addition, if an employee selects a plan that exceeds the Town’s medical premium contribution, then the employee shall be responsible to pay the amount that exceeds the Town’s medical premium contribution via payroll deductions. -131-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Employees who have alternate coverage, such as coverage through a spouse’s employer’s plan (not individual coverage), are eligible to receive cash in lieu of medical insurance at the rate of 50% of the Kaiser premium of the employee’s actual enrollment level (single, employee + 1 or employee + 2 or more). Employees will be required to show proof of alternate coverage every year during open enrollment. Effective January 1, 2022, employees who have alternate coverage as of December 31, 2021 are eligible to receive cash in lieu of medical insurance in the following amounts:
 Single $384.13 per month
 Employee + 1 $768.25 per month
 Employee + 2 or more $998.73 per month
Employees who receive the cash in lieu of medical benefit and who opt out of the program will be treated as employees hired after January 1, 2022 for future cash in lieu benefits.

Employees who enroll in the cash in lieu of medical benefit after January 1, 2022, who have alternate coverage, such as coverage through a spouse’s employer’s plan (NOT individual coverage” are eligible to receive a contribution to the employee’s deferred compensation account in the amount of three hundred dollars ($300) per month, in lieu of receiving medical benefits.

PERS Contribution
In accordance with Resolution 02-01, the Town’s contribution to PERS is set at an amount not less than the amount required under Section 22825 of the Public Employee’s Medical and Hospital Care Act. PERS will determine the contribution amount annually.

Retirees
The Town does not provide post-retirement health benefits to employees hired after January 1, 2002.
298. Retiree Health Savings Plan
Employees hired after January 1, 2002 are eligible to receive a contribution to a Retiree Health Savings Plan. Employees must meet vesting requirements as determined by the Town.

Current employees
Months of Service Monthly Contribution
Hire to 60 months $75
61 months – thereafter $150
Employees must meet vesting requirements of the plan as follows:
 Year 1 – 20%
 Year 2 – 40%
 Year 3 – 60%
 Year 4 – 80%
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
 Year 5 – 100%
Current employees who qualify for the $150 contribution shall begin to receive that monthly amount upon adoption of this MOU. No retroactive payments shall be made.

Employees hired on or after January 1, 2022 shall receive a monthly contribution to a Retiree Health Savings Plan in the following amounts:

Months of Service Monthly Contribution
Hire to 60 months $75
61 months – thereafter $150
Employees must meet vesting requirements of the plan as follows:
 Year 5 – 100%
Effective the first full pay period in January 2025, employees hired on or after January 1, 2002 shall receive a monthly contribution to a Retiree Health Savings Account in accordance with the following:

Months of Service Monthly Contribution
Hire to 60 months 2.0% of base monthly salary
61 months – 239 months 3.0% of base monthly salary
240 months thereafter 4.0% of base monthly salary
Employees must meet vesting requirements of the plan as follows:
 Completion of:

Year 5 100% vested
3029. Post-Retirement Payments
To compensate those retirees and their survivors who were promised health benefits upon retirement and those employees hired prior to January 1, 2002 who bargained in good faith to eliminate the post-retirement health benefit in favor of implementing an improved retirement pension plan (PERS 3% @ 60), the Town shall provide postretirement payments in lieu of health insurance as set forth below.

The actual amount of the payments will be equal to the retired employee’s actual cost for health coverage up to a maximum of the one-party, two-party or three-party Public Employees Retirement System (PERS) basic rate for the Bay Area Blue Shield HMO health plan. Retirees after January 1, 2015 are subject to the same active employee contribution structure in place when they retired.

Employees must be enrolled in a PERS health plan at the time of retirement to be eligible for this benefit. Former employees who enroll in PERS health plans during an open enrollment period after separation from the Town’s service are not eligible for this benefit. -133-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Payments will continue until the retiree or survivor is no longer enrolled in the PERS health plan with the following exception: Retirees and survivors who were receiving retirement health benefits prior to January 1, 2002 will be permitted to select a health plan outside of PERS health plans if PERS rules do not permit their continued participation in the health plans.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for the post-retirement payments.

Retirees are responsible for keeping the Town notified of their current address. If payments are discontinued because no forwarding address is available, the Town will not be liable to provide retroactive payments. The Town will resume payments upon notification of an updated address if the former employee is otherwise qualified to receive the payments.
310. Disability Income Protection
The Town will provide Long Term Disability (LTD) Insurance which will provide 66 2/3% of salary to a maximum of $6,000 monthly and which will begin sixty calendar days after the first day of disability. The Town shall pay the entire premium for LTD. 321. Dental and Orthodontia Plan
Employees shall be included in the Town’s dental and orthodontia plans. The benefit maximum is $2,5002,000 per participant per year. Plan year is from January 1 – December 31.

Effective for employees hired after January 1, 2012: retirees are not allowed to participate in the Town’s dental benefit program.
332. Vision Plan
Employees shall be included in the Town’s vision plan. The maximum benefits shall be $500350 per participant per year. Plan year is from January 1 – December 31.

Effective for employees hired after January 1, 2012: retirees are not allowed to participate in the Town’s vision benefit program.
343. Life Insurance
The Town shall provide a group life insurance policy in the amount of $100,000 of coverage to each probationary and regular employee during the term of this MOU. 357. Retirement
PERS Classic Members
-134-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Employees that were hired before June 30, 2012 are considered Classic members and participate in the 3% @ 60 program. The employee will pay the member’s contribution to the Public Employees Retirement System (PERS), plus an additional 1%. .

Final retirement compensation for purposes of calculating retirement benefits shall be based upon the “single highest year” method under PERS.

Employees shall be able to have their contribution deferred pursuant to the provisions of §414 (h)(2) of the Internal Revenue Code.

Employees’ PERS contributions, although designated as employee contributions, are being paid by the Town in lieu of contributions by the employee in accordance with 414(h)(2) of the Internal Revenue Code.

The Town implemented the following retirement formula for all Classic employees hired after July 1, 2012. The new retirement formula is:

2.0% @ 60
36 month average for final compensation
The employee is required to pay the member’s contribution to PERS PERS New Members
Employees that are considered “New miscellaneous members” will participate in the 2% @ 62 retirement program. Employees will pay the employee share, which is 50% of the total normal cost, as determined by PERS.

The Town will contact CalPERS and arrange for an election to potentially implement the amendment to allow for employee contributions toward the employer portion of retirement to count as employee contributions (GCS 20516). 365. Wellness
Employees can be reimbursed up to $400300 per year for the following qualifying wellness activities:
 Gym fees
 Nutritional counseling
 Smoking cessation programs
 Chiropractic services
 Acupuncture services
 Weight loss programs
 Parks and Recreation sponsored fitness programs from other municipalities that are preapproved by the Human Resources Manager
 Equipment (home gym equipment: Bowflex, Pelaton, etc.; equipment for various classes:
yoga mat, boxing gloves, etc.)
 No clothing isor shoes are eligible for reimbursement -135-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
376. Military and Spousal Military Leave
Military and Spousal Military Leave shall be granted in accordance with the provisions of State and Federal law. All employees entitled to military and/or spousal military leave shall give the City Manager an opportunity within the limits of military regulations to determine when such leave shall be taken.
387. Leave of Absence Without Pay
The City Manager may, at his or her discretion, grant a regular or probationary employee Leave of Absence without pay or seniority for a period not to exceed six months for medical reasons, and three months for other types of leaves. No such leave shall be granted except upon written request of the employee setting forth the reason for the request, and the approval will be in writing.

Upon expiration of an approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted.

Failure on the part of an employee on leave to report promptly at its expiration or within a reasonable time after receiving notice to return to duty shall be cause for discharge. The depositing in the United States mail of a first-class letter postage paid and addressed to the employee’s last known place of address shall be reasonable notice. 398. Jury Duty
Employees who are required to serve as trial jurors shall be entitled to be absent from their duties with the Town during the period of such service or while necessarily being present in court as a result of such call. Employees shall be paid their full salary for such duty.
4039. Sick Leave
Sick leave with pay shall be granted to all probationary and regular employees who are assigned to allocated positions. Sick leave shall not be considered as a right which an employee may use at his or her discretion, but shall be allowed only in case of necessity and actual sickness or disability.

In order to receive compensation while absent on sick leave, the employee shall notify the on-duty supervisor as early as possible prior to the beginning of his or her shift, or as may be specified by the Department Head.

When absence is for more than one workday, the employee may be required to file a physician’s certificate or a personal affidavit with the City Manager’s Office, excusing the employee from work.

Sick leave shall be earned by full-time employees at the rate of 4.31 hours per bi-weekly pay period. This accrual shall be prorated for part-time personnel in allocated positions.

There is no maximum accrual limit for sick leave.
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Sick leave will not be accrued while an employee is on non-industrial disability or unpaid leave.

No person shall be entitled to sick leave with pay while absent from duty on account of any of the following causes:
 Sickness or disability sustained while on leave of absence, other than his or her regular vacation or holiday
 Disability received as a result of engaging in a gainful occupation outside Town employ
Not more than 104 hours of sick leave each calendar year may be taken in case an employee’s presence is required elsewhere because of sickness or disability of members of his or her immediate family. The immediate family shall consist of the spouse, children, parents, siblings, domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent. In each such case the City Manager shall grant such sick leave only when, in his or her opinion, the relationship of the sick or disabled person to the employee warrants such use of sick leave.

Employees who have exhausted said 104 hours of family sick leave may be permitted to use remaining sick days with the approval of the Director, provided they have used their balance of Compensatory Time Off first.

Unused Sick Leave Upon Retirement
Any full-time employee of the Town with ten years of continuous service at the time of retirement can choose to be paid in cash for accumulated sick leave, up to the equivalent of one month’s pay, upon separation from service with the Town of Hillsborough.

Retirement, for the purpose of this rule, shall be construed to mean the termination of employment in order to accept service or disability retirement under PERS.

All remaining sick leave shall be converted to service credit under PERS.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for this benefit. 410. Bereavement Leave
With the consent of the Department Head, a regular employee may be allowed to be absent from the duties of his or her position and to receive full compensation during such absence for a period not to exceed fivethree (53) consecutive scheduled shifts in the case of death or of critical illness where death appears imminent of the employee’s spouse, children, parents, siblings, in-laws, grandparents domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent. Where such a death or critical illness has occurred, the employee shall furnish satisfactory evidence of such death or critical illness to his or her Department Head. -137-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
421. Industrial Disability Leave
Any regular employee of the Town who has suffered any disability arising out of or in the course of employment as defined by the Workers’ Compensation laws of the State of California may be entitled to disability leave while disabled without loss of compensation for the period of such disability to a maximum of ninety (90) days. Such disability with pay may be extended at the discretion the City Manager not to exceed one year.

The Town may call for medical examinations as frequently as would be reasonably necessary given the nature and extent of the injury and the degree of change of condition within a given period of time, but shall not schedule examinations so frequently as to constitute harassment of the employee.

The Town may terminate industrial disability leave if a disability retirement is initiated. 432. Family Medical Leave
The Town will grant Family Medical Leave in accordance with the requirements of applicable State and Federal laws in effect at the time the leave is granted. No greater or lesser leave benefits will be granted than those set forth in such State or Federal laws.

In certain situations, the Federal law requires that provisions of State law apply.

Employees will be eligible for the most liberal benefits available under either law.

Family Medical Leave is unpaid. In a case where an employee is taking leave for his or her own health condition or to take care of a spouse, child or parent who has a serious health condition, the Town requires the employee to substitute any of the employee’s accrued vacation, holiday, CTO or sick leave for an unpaid period of leave.

In a case where an employee is taking leave for birth or placement of a child, including for bonding purposes, the Town requires the employee to substitute any of the employee’s accrued vacation, holiday or CTO for an unpaid period of leave. 443. Short Term Disability (This Section applies only to the Maintenance Unit) If an Eligible full-time or part-time Employee is disabled for more than five consecutive business days, the employee may be eligible for State Short-Term Disability Leave (“SDI”). The following summarizes Short-Term Disability Leave:
 There is a five-day waiting period for SDI benefits. The first five consecutive business days absent will be charged to Sick Leave. If the disabled employee does not have enough Sick time to cover the absence, the time not covered by Sick Leave will be charged to any accrued, but unused Vacation, Holiday Leave -138-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
or Comp Time. If the employee does not have enough accrued time to cover the absence, those remaining hours will be unpaid.
 To apply for SDI benefits, the employee must provide Human Resources with acceptable medical certification from his/her attending physician certifying that the employee is disabled from performing the essential functions of his/her position due to illness or injury. Medical certification must be submitted as the employee’s medical circumstances evolve, or at a minimum at the end of the first, second, and third months of disability, verifying the continued disability and stating the estimated date of return to work. If the employee also qualifies for Family and Medical Leave (FML), the medical certification required for FML will suffice for SDI.  Once an employee’s application for SDI benefits has been approved, their absence will be charged to disability.
 While on SDI, the disabled employee will receive his/her full salary through a combination of payments from the Town (using accrued leaves) and State Disability Insurance. If the employee does not have any accrued leave to draw on, those hours will be unpaid. If an employee qualifies for state disability benefits, he/she is required to apply for them. Upon receiving your state disability check you must notify Human Resources and we will reduce your paycheck by the amount you receive from SDI. Payroll may call SDI to confirm the amount of the disbursement.
 If the disabled employee also qualifies for Family and Medical Leave (“FML”), SDI will run concurrently with FML.
 Health, Dental, and Vision benefits will continue during SDI, subject to continued payment of any employee contribution toward health insurance premium and continued availability of accrued leave benefits to draw on.  Eligibility for Life, Accidental Death and Dismemberment, and Long Term Disability insurance will continue during SDI.
 Vacation and Sick Leave do not accrue after the first 14 days of SDI.  After the first 14 days of SDI, the disabled employee is not eligible for paid Holidays.
 SDI may continue for up to 90 consecutive days, provided disability continues and appropriate medical certification is provided.
 Upon returning from leave, an employee will be reinstated to the same position held at the time of the leave. An employee has no greater right to reinstatement than if she/he had been continuously employed. For example, if an employee would have been laid off had she/he not gone on leave, or if his/her position has been eliminated during the leave, then she/he will not be entitled to reinstatement.  If a disabled employee returns to work from SDI for 30 days, and is subsequently disabled due to the same serious health condition that caused the first disability, the employee will be required to satisfy a new five-day waiting period and the disability will be treated as a new claim for SDI benefits. -139-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
 Claims for SDI benefits are limited to one 90 day disability in a 12 month period.

45. State Disability Insurance
The Town will contact the Employment Development Department of the State of California to begin the process for implementing the SDI benefit for the Clerical Unit, upon a written request from Teamsters Local 856.
464. Vacation
Vacation may be taken in increments as determined by the employee. Employees will give seven (7) days’ notice of their intent to take vacation to their Supervisor. The Supervisor shall approve the scheduling of the vacation prior to the employee taking the time off. In unforeseen circumstances, an employee can request vacation with less than 7 days’ notice at the discretion and approval of the Department Head.

The purpose of vacation leave is to enable each eligible employee annually to return to his or her work refreshed. All regular and probationary employees shall be entitled to vacation leave with pay.

The progressive vacation accrual schedule is as follows:

Years of
Service
Completed
Bi-Weekly
Accrual Rate
Hours per
Year
Start date to
end of the 4th
year

3.08 80
Beg. of the 5th –
end of the 9th

4.62 120
Beg. of the 10th 4.92 128
Beg. of the 11th 5.23 136
Beg. of the 12th 5.54 144
Beg. of the 13th 5.85 152
Beg. of the 14th
and over

6.15 160
This schedule shall be prorated for part-time employees in allocated positions.

If the requirements of the service are such that an employee is not allowed to take part or all of his or her accrued scheduled vacation in a particular calendar year, such vacation may be taken during the following calendar year or paid for at the discretion of the employee.

The maximum accumulation of vacation leave may not exceed two times the employee’s annual earned vacation. Once the maximum vacation accumulation is reached vacation leave will cease to accrue.
-140-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
In the event one or more municipal holidays fall within a vacation leave, such holidays shall not be charged as vacation leave.

Vacation will not be accrued while an employee is on a non-industrial or unpaid leave.

Employees who terminate employment shall be paid in a lump sum for all accrued vacation leave earned prior to the effective date of termination. 475. Vacation Buy-Back
Employees have the ability to cash out between 20 and 60 hours of accrued vacation leave each year:
 Employee must have taken a minimum of 40 hours of accrued vacation during the election year to be eligible to sell back vacation. Vacation hours sold back do not count as vacation hours used for this purpose.
 Employee must have a balance of 100 hours at the time of election to cash out vacation hours.
 The employee must designate between December 1 and December 10 of each year the amount of vacation hours to be cashed out in the following year.  Payment of vacation hours elected for cash out will be made in the first pay period in August of the year following the election.
 Vacation hours cashed out applies only to hours earned in the year following the election.
 Elections are irrevocable.
486. Holidays
A holiday equals eight (8) hours leave. Thus employees shall receive a total of 96 hours of leave for twelve eight-hour holidays.

If a holiday falls on an employee’s scheduled day off, the employee will have the option of receiving eight hours compensatory time off or eight hours of compensation paid at the regular hourly rate.

The recognized holidays to be observed by the Town for unit employees are as follows:

Date Holiday
January First New Year’s Day
Third Monday in January Martin Luther King’s
birthday
Third Monday in February Presidents’ Day
Last Monday in May Memorial Day
July Fourth Independence Day
First Monday in September Labor Day
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
November Eleventh Veteran’s Day
Fourth Thursday in
November
Thanksgiving Holiday
Friday after Thanksgiving Friday after Thanksgiving
December Twenty-fourth Christmas Eve
December Twenty-fifth Christmas Day
Employees will accrue eight hours of floating holiday leave on January 1st of each year.

If a new employee’s hire date is prior to June 30, that employee’s will receive eight hours of floating holiday. If the employee’s hire date is July 1 or later that employee will receive 4 hours of floating holiday for that calendar year. Thereafter, accrual shall be consistent with continuing employees. No more than eight hours of floating holiday may be accrued at one time.

Every day appointed by the President of the United States or the Governor of this State for a public fast, Thanksgiving or holiday and every day pronounced as a National Day of Mourning is a holiday when also approved by the City Council.

Regular and probationary employees shall not be required to be on duty on holidays unless the employee’s services are required in the interests of the public health, safety or general welfare.

When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, the preceding Friday shall be observed.

Floating holiday hours may be taken in any increment with the advance approval of the Department Head.

If an employee is requested to work on a holiday, he or she shall be compensated at the overtime rate, in addition to receiving holiday compensation.

Effective January 1, 2025, Tthe recognized holidays to be observed by the Town for unit employees are as follows:

Date Holiday
January First New Year’s Day
Third Monday in January Martin Luther King’s
birthday
Third Monday in February Presidents’ Day
Last Monday in May Memorial Day
July Fourth Independence Day
First Monday in September Labor Day
November Eleventh Veteran’s Day
Fourth Thursday in
November
Thanksgiving Holiday
Friday after Thanksgiving Friday after Thanksgiving
December Twenty-fourth Christmas Eve
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
December Twenty-fifth Christmas Day
Floating Holiday (8 hours)
Floating Holiday (8 hours)
Day of Reflection (8 hours)
Employees will accrue sixteen (16)eight hours of floating holiday leave and eight (8) hours of leave for a Day of Reflection on January 1st of each year. If a new employee’s hire date is prior to June 30, that employee’s will receive twenty-four (24) eight hours of floating holiday/Day of Reflection. If the employee’s hire date is July 1 or later that employee will receive twelve (12)4 hours of floating holiday/Day of Reflection for that calendar year.

Thereafter, accrual shall be consistent with continuing employees. No more than eight hours of floating holiday may be accrued at one time. Floating Holiday/Day of Reflection leave may not be carried over into the next calendar year.

Day of Reflection is in recognition of holidays of individual and community importance, including Juneteenth, Cesar Chavez Day, Indigenous Peoples’ Day.

Every day appointed by the President of the United States or the Governor of this State for a public fast, Thanksgiving or holiday and every day pronounced as a National Day of Mourning is a holiday when also approved by the City Council.

Regular and probationary employees shall not be required to be on duty on holidays unless the employee’s services are required in the interests of the public health, safety or general welfare.

When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, the preceding Friday shall be observed.

Floating holiday hours may be taken in any increment with the advance approval of the Department Head.

If an employee is requested to work on a holiday, he or she shall be compensated at the overtime rate, in addition to receiving holiday compensation. 497. Tuition Reimbursement
College Reimbursement
Subject to budget constraints, the Town will reimburse an employee’s tuition dependent on the following conditions:

1. Employees should attain approval for reimbursement from their Department Head prior to the beginning of the semester.

2. Tuition reimbursement will be based on local community college or California State University fee structures and limited to $1,500 per employee per calendar year.

The City Manager may approve additional reimbursement for expenses when an employee participates in an accelerated college degree program.

3. Employees must attain a grade of C or better in order to be eligible for reimbursement as follows:
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Grade % of Reimbursement
A 100%
B 80%
C 50%

4. Reimbursement will be approved after the employee submits proof of payment and receives his or her grade.

Building Inspector Licenses and Certifications
The Town will reimburse Building Inspectors for their costs to take examinations for professional licenses or certifications. To be eligible for reimbursement the Building Inspector must obtain the Department Head’s approval prior to taking the examination and must receive a passing score or rating.

Additionally, the Town will reimburse the Building Inspectors for the costs associated with maintaining their professional licenses or certificates, such as required continuing education or license renewal costs.

Facilities Lead Worker Licenses
The Town will reimburse Facilities Lead Workers for their costs to take examinations for the State Contractors license. Additionally, the Town will reimburse the Facilities Lead Workers for required continuing education or license renewal costs.

IV. EMPLOYMENT
5048. Notification of Job Openings
All openings for full-time or part-time allocated positions in this unit shall be posted on the Department bulletin board, and/or sent out by email.
5149. Probation
All unit employees shall serve a probationary period of 12 months.

Upon successful completion of the probationary period, an employee shall attain a regular employment status.

Anyone serving in a probationary period may be rejected at any time without cause and without notice. Rejection during a probationary period will not be subject to the grievance procedure. If serving an initial probation with the Town, rejection during a probationary period will result in termination.

If an employee is rejected during probation as a result of a promotion, they will have bumping rights to their former classification where they attained regular status. -144-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
5250. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves. Failure on the part of an employee, absent without authorized leave, to return to duty within 24 hours after receiving notice to return shall be cause for immediate discharge and such employee automatically waives all rights under the personnel ordinance and these rules. The depositing in the United States mail of a first-class letter postage paid, addressed to the employee’s last known place of address, shall be reasonable notice.
531. Hours of Work
Employees shall be scheduled to work for 80 hours over each bi-weekly pay period and be compensated at the regular rate of pay for the same. Subject to the needs of Town, employees may be assigned to one of the following working shifts:
 8 hours per day, 5 days per week
 9 hours per day for 8 shifts, and one 8 hour shift
 9 hours per day for 8 shifts, and 4 hours per day for 2 shifts  10 hours per day, 4 days per week
Variations of schedules will be permitted by agreement between the Department Head and employees.
542. Discipline
The Town may discharge, suspend, demote, reduce salary or otherwise discipline any employee for cause including, but not limited to:
 Dishonesty
 Insubordination
 Use, possession or being under the influence of alcohol or drugs  Incompetence
 Willful negligence
 Inability to meet minimum licensing or bonding requirements of the employee’s regularly assigned position
 Fighting
 Discourteous treatment of coworkers or residents
 Unexcused absenteeism
 Tardiness when reporting to work or returning from breaks  Misuse of Town property
 Violation of Town policies
 Failure to perform work as required
 Failure to comply with or violation of the Town’s reasonable rules regarding safety conduct and operations
 Willful damage to public property
 The commitment or conviction of any criminal act that would directly affect work duties
Any regular employee who has been subject to such discipline shall be notified of the reasons for such action in writing with a copy of such letter furnished to the Union. A -145-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
letter sent by first-class mail to the employee’s last known address shall be considered adequate notice.

A progressive discipline process shall be followed, except when the safety and well-being of the employee, co-workers, members of the public or public property is endangered.

Pre-Disciplinary Hearings
No regular employee shall be demoted, suspended or discharged for a disciplinary purpose except in accordance with the provisions of this section; provided, however, that this section shall not apply to suspensions of less than 840 hours.

Whenever the Town proposes to demote, suspend or discharge a regular employee in a case in which this section is applicable, the Town shall provide the employee with written notice of the proposed action. The notice shall state the proposed disciplinary action and the reasons for it. The notice shall also include a copy of the charges and materials upon which the proposed action is based.

The employee shall have the right to present an oral or written response to the proposed action. Thereafter the Town shall determine, based upon such response and the materials upon which the proposed action was based, whether to impose the action initially proposed, a lesser action or to take no action. The Town shall promptly notify the employee in writing of such decision.

Employees who decide to appeal the decision of the pre-disciplinary hearing shall file a grievance at Step 2 Department level.
553. Grievance Procedure
Grievances subject to arbitration shall be only such grievances which involve the interpretation, application, or compliance with the provisions of this Memorandum or Departmental policies, or a dispute or disagreement concerning whether or not discipline, including discharge, was for just cause.

Step I - Informal Level
An employee who has a grievance shall first discuss the grievance on an informal basis with his or her supervisor within fifteen (15) calendar days of the alleged violation or within fifteen (15) calendar days of the time the grievant knew of or could have reasonably discovered such action or occurrence. Within fourteen (14) calendar days of receipt of the grievance, the supervisor shall investigate the matter, if necessary. Every effort will be made by the parties to resolve the grievance at this level and may include a conference among the Union, supervisor or other administrative staff. The supervisor will provide the employee with a written response to the grievance.

Grievances by the Town shall be discussed with the Union within fifteen (15) calendar days of the alleged violation. If the parties are not able to resolve the issue, within fifteen (15) days after the last communication with the Union the Town may submit a request for arbitration pursuant to Step 4.
-146-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Step 2 – Department Level
If the grievance is not resolved at Step 1 or involves the termination or suspension of more than 8 hours and has not been resolved at the Pre-Disciplinary Hearing, the employee may submit the grievance in writing to the Department Head within fifteen (15) calendar days after the presentation of the supervisor’s reply. The written grievance shall:
• Fully describe the grievance and how the grievant was adversely affected • Set forth the section(s) of this Memorandum or Department policy allegedly violated • Indicate the date(s) of the incident grieved
• Specify the remedy or solution to the grievance sought It shall be the responsibility of the employee to submit a copy of the grievance to the Union. The Department Head or his/her designee, if necessary, may investigate the matter. The Department Head or his/her designee shall also schedule a meeting with the grievant and shall provide a written response to the grievant after holding the meeting with the grievant. The meeting and provision of the written response shall occur within fifteen (15) calendar days after receipt of the grievance.

Whenever the immediate supervisor and the Department Head is one and the same person, this step in the procedure shall be omitted.

Step 3 - City Manager Review
If the grievance is not resolved at Step 2 a written grievance may be filed with the City Manager or his or her designee within fifteen (15) business days after the presentation of the Department Head’s reply.

The City Manager or his/her designee will review the written grievance and may, at his/her discretion, meet with the employee to discuss the grievance. The City Manager or his/her designee shall reply in writing to the grievance within fifteen (15) calendar days of the meeting with the employee or, if no meeting occurs, within his/her receipt of the Step 2 grievance; provided, however, that in the event that the City Manager or his/her designee is away from the Town during this period, his/her time to reply shall be extended by and equal number of days that he/she is absent to a maximum of twenty (20) days.

Step 4 – Mediation
At the Union’s request, the matter may be referred to mediation. The Town and the Union may mutually agree to the selection of a mediator or a request may be made to the State Mediation and Conciliation Service for the assistance of a mediator to evaluate and assist the parties to reach resolution.

Step 54 - Arbitration
If the grievance is unresolved at Step 3 or Step 4 if utilized, either the Union or the Town may, within fifteen (15) calendar days, request in writing arbitration and the parties shall attempt to mutually agree upon an arbitrator. In the event the parties are unable to agree -147-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
upon an arbitrator, after thirty (30) days either party may request a list of sevennine (97)) names from the California Conciliation and Mediation Service. Each party shall alternately strike one (1) name until an arbitrator is selected. The right to strike the first name shall be determined by lot and the parties shall alternately strike one (1) name from the list until only one (1) name remains. The remaining panel member shall be the arbitrator.

The arbitrator shall conduct a hearing at which he/she will hear evidence and render a decision on the issue or issues submitted to him/her. If the parties cannot agree on the issue to submit, the arbitrator shall determine the issues.

The Town and the Union agree that the jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provisions or provision of this Memorandum and/or Department policy at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of this Memorandum or impose any limitations or obligations not specifically provided for under the terms of this Memorandum. The arbitrator shall be without power or authority to make any decision that requires the Town to do an act prohibited by law.

After a hearing and after both parties have had an opportunity to make written arguments, the arbitrator shall submit in writing to all parties his/her finding and recommended award.

The award of the arbitrator shall be final and binding on both parties and on any affected bargaining unit employee.

Either party may elect to have representation by legal counsel for the arbitration hearing.

Arbitration Costs
All expenses for the arbitration shall be paid equally by the Town and the Union, except that each party shall be responsible for the expenses of its own attorney, witnesses and transcripts.

Timeliness
All grievances must be presented at the proper steps in accordance with the time limitations herein and unless such grievances are so presented, the right to file such grievances shall be waived. Any grievance not appealed to the next succeeding step within the time limits specified will be considered withdrawn and not eligible for further appeal. If the Town fails to respond within the prescribed time limits of any one step, the last Town response shall be deemed to be the Town’s position for the next succeeding steps. Time limits can be extended by mutual consent, however that any mutual agreements to extend deadlines are not precedential.

56. Letters of Reprimand
A written reprimand may be removed from an employee’s personnel file 24 months after it is placed there, provided that the employee does not receive a written reprimand for a similar incident or offense during that 24 month period. If the employee receives a written -148-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
reprimand for a similar incident or offense with the 24 month period, the initial written reprimand shall remain in the employee’s file for the duration of time the succeeding reprimand stays in the file.
575. No-Strike Clause
Both parties of this memorandum recognize the obligation of the Union and of the employees to refrain from engaging in any strike or slowdown of work. In fulfillment of that obligation, the parties recognize that there will be no strike, sympathy strike, slowdown, sick-ins, curtailment of work or interference with the Town’s operations on the part of either the Union or employees during the term of this Memorandum or anytime this Memorandum is continued by the express mutual consent of the parties. It is recognized that violation of this clause will result in discipline up to and including terminations. 586. Safety
Observance of Safety Rules and Regulations
Both the Town and the Union shall expend a reasonable effort to ensure that work is performed with a maximum degree of safety, consistent with the requirement to conduct efficient operations.

Each employee covered by this MOU agrees to comply with all safety rules and regulations in effect and any subsequent rules and regulations that may be adopted.

Employees further agree they will report all accidents and safety hazards to the appropriate management official immediately. Any employee having knowledge of or who is a witness to an accident shall give full and truthful testimony as to same.

Safety Program
The Town has established a Safety and Risk Management Committee. The Committee shall have an employee representative from both bargaining units. 597. Layoff
Whenever, in the judgment of the Town, it becomes necessary to abolish positions, the Town may abolish any position included in the bargaining unit and the employee holding such position may be laid off subject to any bumping rights he or she may have. The Town may lay off employees due to lack of work or funds.

In a reduction in force, employees with the least length of service in the classification shall be laid off first provided that, in the determination of the City Manager, the skill and qualifications of the remaining employees are equal to that of the laid off employee.

Employees to be laid off from a classification shall have a right to bump employees in a lower classification in accordance with seniority with the Town provided that, in the determination of the City Manager, they possess superior skill and qualifications.

Employees affected by a layoff shall retain employment rights in a position previously held in a lower classification and shall revert back to said position with full seniority rights and be integrated with the seniority ranking of employees in the lower classification. -149-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
6058. Reinstatement
A regular employee who has resigned in good standing may be reinstated to a vacant position of the same classification as the previous position within a period of two (2) years from the effective date of resignation. Reinstatement will be made at the salary step determined by the City Manager. A reinstated employee will not be entitled to prior service credit in calculating Town benefits.

V. TERM
This MOU shall be in full force and effect until midnight, December 31, 20272024.

Town of Hillsborough Teamsters Local 856, IBT
_____________________________ ______________________________ Doug Davis, City Manager Mark Leach, Teamsters Local 856 _____________________________ ______________________________ Dated Dated

-150-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Appendix A – Salary Schedules

A B C D E

PW/Clerical effective first full pay period of 2022
Accounting Technician
Biweekly

2,989

3,138

3,295

3,460

3,633
Monthly

6,476

6,799

7,139

7,497

7,872
Annually

77,714

81,588

85,670

89,960

94,458

Administrative Assistant
Biweekly
2,669

2,802

2,942

3,089

3,243
Monthly

5,783

6,071

6,374

6,693

7,027
Annually

69,394

72,852

76,492

80,314

84,318

Building Inspector I
Biweekly

3,403

3,565

3,743

3,930

4,127
Monthly

7,373

7,724

8,110

8,515

8,942
Annually

88,478

92,690

97,318

102,180

107,302

Building Inspector II
Biweekly

3,743

3,930

4,126

4,332

4,549
Monthly

8,110

8,515

8,940

9,386

9,856
Annually

97,318

102,180

107,276

112,632

118,274

Building and Planning Technician I
Biweekly
2,668

2,801

2,941

3,088

3,243
Monthly

5,781

6,069

6,372

6,691

7,026
Annually

69,368

72,826

76,466

80,288

84,311

Building and Planning Technician II
Biweekly

2,934

3,081

3,235

3,397

3,567
Monthly

6,357

6,676

7,009

7,360

7,729
Annually

76,284

80,106

84,110

88,322

92,742

Lead Facilities Worker
Biweekly
3,303

3,468

3,641

3,823

4,014
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Monthly

7,157

7,514

7,889

8,283

8,697
Annually

85,878

90,168

94,666

99,398

104,364

Lead Maintenance Worker
Biweekly

3,146

3,303

3,468

3,641

3,823
Monthly

6,816

7,157

7,514

7,889

8,283
Annually

81,796

85,878

90,168

94,666

99,398

Maintenance Worker I
Biweekly
2,424

2,539

2,666

2,799

2,939
Monthly

5,252

5,501

5,776

6,065

6,368
Annually

63,024

66,014

69,316

72,774

76,414

Maintenance Worker II
Biweekly

2,666

2,799

2,939

3,086

3,240
Monthly

5,776

6,065

6,368

6,686

7,020
Annually

69,316

72,774

76,414

80,236

84,240
Office Assistant
Biweekly
2,426

2,547

2,674

2,808

2,948
Monthly

5,256

5,519

5,794

6,084

6,387
Annually

63,076

66,222

69,524

73,008

76,648

Public Works Inspector I
Biweekly

3,146

3,303

3,468

3,641

3,823
Monthly

6,816

7,157

7,514

7,889

8,283
Annually

81,796

85,878

90,168

94,666

99,398

Public Works Inspector II
Biweekly

3,459

3,632

3,814

4,005

4,205
Monthly

7,495

7,869

8,264

8,678

9,112
Annually

89,934

94,432

99,164

104,130

109,338

Senior Accounting Technician
Biweekly
3,288

3,452

3,625

3,806

3,996
Monthly

7,124

7,479

7,854

8,246

8,659
Annually

85,488

89,752

94,250

98,956

103,904

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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Senior Building and Planning
Technician
Biweekly

3,375

3,544

3,721

3,907

4,102
Monthly

7,313

7,679

8,062

8,465

8,888
Annually

87,750

92,144

96,746

101,582

106,653

Senior Building Inspector/Plan
Checker
Biweekly
4,220

4,431

4,653

4,886

5,130
Monthly

9,143

9,601

10,082

10,586

11,115
Annually

109,720

115,206

120,978

127,036

133,380
PW/Clerical effective first full pay period of 2023
Accounting Technician
Biweekly

3,101

3,256

3,419

3,590

3,769
Monthly

6,719

7,055

7,408

7,778

8,166
Annually

80,626

84,656

88,894

93,340

97,994

Administrative Assistant
Biweekly
2,768

2,906

3,051

3,204

3,364
Monthly

5,997

6,296

6,611

6,942

7,289
Annually

71,968

75,556

79,326

83,304

87,464

Building Inspector I
Biweekly

3,530

3,698

3,883

4,077

4,281
Monthly

7,648

8,012

8,413

8,834

9,276
Annually

91,780

96,148

100,958

106,002

111,306

Building Inspector II
Biweekly

3,883

4,077

4,281

4,495

4,720
Monthly

8,413

8,834

9,276

9,739

10,227
Annually

100,958

106,002

111,306

116,870

122,720

Building and Planning Technician I
Biweekly

2,768

2,906

3,051

3,204

3,365
Monthly

5,997

6,296

6,611

6,942

7,290
Annually

71,968

75,556

79,326

83,304

87,478

Building and Planning Technician II
Biweekly

3,045

3,197

3,357

3,525

3,701
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Monthly

6,598

6,927

7,274

7,638

8,019
Annually

79,170

83,122

87,282

91,650

96,226

Lead Facilities Worker
Biweekly

3,427

3,598

3,778

3,967

4,165
Monthly

7,425

7,796

8,186

8,595

9,024
Annually

89,102

93,548

98,228

103,142

108,290

Lead Maintenance Worker
Biweekly
3,264

3,427

3,598

3,778

3,967
Monthly

7,072

7,425

7,796

8,186

8,595
Annually

84,864

89,102

93,548

98,228

103,142

Maintenance Worker I
Biweekly

2,515

2,635

2,767

2,905

3,050
Monthly

5,449

5,709

5,995

6,294

6,608
Annually

65,390

68,510

71,942

75,530

79,300

Maintenance Worker II
Biweekly
2,767

2,905

3,050

3,202

3,362
Monthly

5,995

6,294

6,608

6,938

7,284
Annually

71,942

75,530

79,300

83,252

87,412

Office Assistant
Biweekly

2,515

2,641

2,773

2,912

3,058
Monthly

5,449

5,722

6,008

6,309

6,626
Annually

65,390

68,666

72,098

75,712

79,508

Public Works Inspector I
Biweekly

3,264

3,427

3,598

3,778

3,967
Monthly

7,072

7,425

7,796

8,186

8,595
Annually

84,864

89,102

93,548

98,228

103,142

Public Works Inspector II
Biweekly
3,590

3,770

3,958

4,156

4,364
Monthly

7,778

8,168

8,576

9,005

9,455
Annually

93,340

98,020

102,908

108,056

113,456

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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Senior Accounting Technician
Biweekly

3,410

3,581

3,760

3,948

4,146
Monthly

7,388

7,759

8,147

8,554

8,983
Annually

88,660

93,106

97,760

102,648

107,793

Senior Building and Planning
Technician
Biweekly

3,501

3,676

3,860

4,053

4,256
Monthly

7,586

7,965

8,363

8,782

9,222
Annually

91,026

95,576

100,360

105,378

110,660

Senior Building Inspector/Plan
Checker
Biweekly
4,380

4,599

4,829

5,070

5,323
Monthly

9,490

9,965

10,463

10,985

11,533
Annually

113,880

119,574

125,554

131,820

138,398
PW/Clerical effective first full pay period 2024
Accounting Technician
Biweekly

3,218

3,379

3,548

3,725

3,911
Monthly

6,972

7,321

7,687

8,071

8,474
Annually

83,668

87,854

92,248

96,850

101,686

Administrative Assistant
Biweekly
2,871

3,015

3,166

3,324

3,490
Monthly

6,221

6,533

6,860

7,202

7,562
Annually

74,646

78,390

82,316

86,424

90,740

Building Inspector I
Biweekly

3,663

3,837

4,029

4,230

4,442
Monthly

7,937

8,314

8,730

9,165

9,624
Annually

95,238

99,762

104,754

109,980

115,492

Building Inspector II
Biweekly

4,029

4,230

4,442

4,664

4,897
Monthly

8,730

9,165

9,624

10,105

10,610
Annually

104,754

109,980

115,492

121,264

127,322

Building and Planning Technician I
Biweekly

2,872

3,016

3,167

3,325

3,491
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Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Monthly

6,223

6,535

6,862

7,204

7,564
Annually

74,672

78,416

82,342

86,450

90,764

Building and Planning Technician II
Biweekly

3,159

3,317

3,483

3,657

3,840
Monthly

6,845

7,187

7,547

7,924

8,320
Annually

82,134

86,242

90,558

95,082

99,840

Lead Facilities Worker
Biweekly
3,555

3,733

3,920

4,116

4,322
Monthly

7,703

8,088

8,493

8,918

9,364
Annually

92,430

97,058

101,920

107,016

112,372

Lead Maintenance Worker
Biweekly

3,386

3,555

3,733

3,920

4,116
Monthly

7,336

7,703

8,088

8,493

8,918
Annually

88,036

92,430

97,058

101,920

107,016

Maintenance Worker I
Biweekly
2,609

2,733

2,870

3,014

3,165
Monthly

5,653

5,922

6,218

6,530

6,858
Annually

67,834

71,058

74,620

78,364

82,290

Maintenance Worker II
Biweekly

2,870

3,013

3,164

3,322

3,488
Monthly

6,218

6,528

6,855

7,198

7,557
Annually

74,620

78,338

82,264

86,372

90,688

Office Assistant
Biweekly

2,610

2,741

2,878

3,022

3,173
Monthly

5,655

5,939

6,236

6,548

6,875
Annually

67,860

71,266

74,828

78,572

82,498

Public Works Inspector I
Biweekly
3,386

3,555

3,733

3,920

4,116
Monthly

7,336

7,703

8,088

8,493

8,918
Annually

88,036

92,430

97,058

101,920

107,016

-156-

Memorandum of Understanding
Public Works and Clerical Unit 2022-2024
Public Works Inspector II
Biweekly

3,725

3,911

4,107

4,312

4,528
Monthly

8,071

8,474

8,899

9,343

9,810
Annually

96,850

101,686

106,782

112,112

117,718

Senior Accounting Technician
Biweekly

3,539

3,716

3,902

4,097

4,302
Monthly

7,668

8,051

8,454

8,877

9,321
Annually

92,014

96,616

101,452

106,522

111,855

Senior Building and Planning
Technician
Biweekly
3,633

3,815

4,006

4,206

4,416
Monthly

7,872

8,266

8,680

9,113

9,568
Annually

94,458

99,190

104,156

109,356

114,816

Senior Building Inspector/Plan
Checker
Biweekly

4,544

4,771

5,010

5,260

5,523
Monthly

9,845

10,337

10,855

11,397

11,967
Annually

118,144

124,046

130,260

136,760

143,598
-157-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
8 CONSENT CALENDAR

CITY COUNCIL MEETING
JANUARY 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF HILLSBOROUGH AND THE TEAMSTERS LOCAL NO. 350, I.B.T. – PUBLIC WORKS

SUPERVISORS UNIT EMPLOYEES
SUMMARY: The Town has completed negotiations for a successor Memorandum of Understanding (MOU) with the Public Works Supervisor Unit, represented by the Teamsters Local No. 350 union. The MOU provides a wage and benefit structure for the next three years. Some of the benefits include compensation adjustments, an increase to incentive pay, and two additional floating holidays. A copy of the redlined MOU is included in the City Council agenda packet, and also includes clarification language for current processes.

FISCAL IMPACT: The annual cost is estimated at $53,915.00 and there is a $15,000.00 increase to the adopted FY 2024-25 budget. The total cost of the three-year contract is estimated to be $247,092.00.

ENVIRONMENTAL ISSUES: The City Council’s adoption of the resolution is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15378 as it constitutes an organizational or administrative activity of the Town that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS:

1. Resolution

2. Memorandum of Understanding (Redline)
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute the Memorandum of Understanding between the Town of Hillsborough and the Teamsters Local No. 350 I.B.T.
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE

MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF
HILLSBOROUGH AND THE TEAMSTERS LOCAL NO. 350, I.B.T. – PUBLIC WORKS SUPERVISORS UNIT EMPLOYEES PURSUANT TO CEQA GUIDELINE 15378 WHEREAS, the Town of Hillsborough (“Town”) has recognized Teamsters Local No. 350 I.B.T. (Union) as the representative for employees in the Public Works Supervisors unit; and
WHEREAS, the Town has completed bargaining in good faith with the Union resulting in a 3-year Memorandum of Understanding (Exhibit A), which outlines salary and benefit changes; and
WHEREAS, the Town desires to provide a competitive compensation package to the employees of the Public Works Supervisors unit.

NOW, THEREFORE BE IT RESOLVED that the City Council of the Town of Hillsborough does hereby approve and authorize the City Manager to execute the Memorandum of Understanding between the Town and Teamsters Local No. 350 I.B.T. – Public Works Supervisors.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of January 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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ATTACHMENT 1

MEMORANDUM OF UNDERSTANDING

TOWN OF HILLSBOROUGH
AND
TEAMSTERS UNION LOCAL NO. 350 I.B.T.

January 1, 2025 – December 31, 2027
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EXHIBIT A

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
Public Works Supervisor Unit
Memorandum of Understanding 2025 - 2027
Table of Contents
I. GENERAL 4

1. Bargaining Unit 4

2. Management Rights 4

3. Union Rights 4

4. Maintenance of Membership 6

5. Teamsters D.R.I.V.E. Program 6

6. Union Representatives 7

7. Town Communications to Unit Employees concerning Union Rights 7

8. Personnel Files 7

9. Separability 8

10. Maintenance of Benefits 8

11. Sole and Entire Agreement 8

12. No Discrimination 8

13. New Work 8
II. COMPENSATION 8

14. Salary 8

15. On-Call Vehicle 9

16. Uniforms 9

17. Out-of-Class Pay 9

18. Incentive pay 9

19. Emergency Health Crisis 11

20. Training Time 11

21. Emergency Response 11
III. BENEFITS 11

22. Health Insurance 11

23. Employee Wellness 13

24. Retiree Health Savings Accounts 13

25. Post-Retirement Payments 14

26. Disability Income Protection 14

27. Dental and Orthodontia Plan 14

28. Vision Plan 14
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

29. Life Insurance 14

30. Retirement 15

31. Military Leave 15

32. Leave of Absence Without Pay 15

33. Jury Duty 15

34. Sick Leave 16

35. Death or Critical Illness Leave 17

36. Industrial Disability Leave 17

37. Family Medical Leave 17

38. Vacation 18

39. Vacation Buy-Back 19

40. Holidays 19

41. Paid Administrative Leave 20

42. Tuition Reimbursement 20

43. Mileage Reimbursement 21
IV. EMPLOYMENT 21

44. Notification of Vacant Positions 21

45. Probation 21

46. Attendance 22

47. Hours of Work 22

48. Discipline 22

49. Letters of Reprimand 23

50. Grievance and Arbitration Procedure 23

51. No-Strike Clause 25

52. Safety 26

53. Layoff 26

54. Reinstatement 26
V. TERM 26
Appendix A – Salary Schedule – Effective January 2025 28 -163-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

The Memorandum of Understanding (“MOU”) between the
Town of Hillsborough (“Town”) and Teamsters Union Local No. 350, I.B.T. (“Union”) representing the Public Works Supervisors Unit for the period of January 1, 2025 through December 31, 2027 shall read as follows:

I. GENERAL

1. Bargaining Unit
The bargaining unit shall include all allocated positions of:
• Public Works Supervisor
• Assistant Superintendent

2. Management Rights
Except as modified by this MOU, it is understood and agreed that the Town retains all of its rights, power and authority to direct, manage and control the Town to the full extent of the law. The exercise of powers, rights, authority, duties and responsibilities by the Town, the adoption of policies, rules, regulations and practices in furtherance thereof, the use of judgment and practices in furtherance thereof, and the use of judgment and discretion in connection therewith shall be limited only by the specific and express terms of this MOU and then only to the extent such specific and express terms are in conformance with the law.

Any of the rights, powers, authority and functions that the Town possessed prior to the execution of this MOU are retained by the Town except as specifically limited by this MOU.

Nothing in this section shall be construed to excuse the Town from its obligation to meet and confer with the Union regarding any subject or matter not set forth in this section where required to do so by statute.

3. Union Rights
Communications with Employees
The Union shall be provided suitable space on a bulletin board at the work location for posting notices concerning official Union business.

Advance Notice
Except in cases of emergency as provided below in this subsection, the Union, if affected, shall be given reasonable advance written notice of any ordinance, resolution, rule or regulation directly relating to matters within the scope of representation proposed to be adopted by the Town and shall be given the opportunity to meet and confer with the appropriate management representatives prior to adoption.

In cases of emergency when the foregoing procedure is not practical or in the best public interest, the Town may adopt or put into practice immediately such measures as are required. At the earliest -164-

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Public Works Supervisors Unit 2025-2026
practicable date thereafter, the Union shall be provided with the notice described in the preceding paragraph and be given the opportunity to meet and confer with the appropriate management representatives. As used herein, “emergency” shall mean any situation in which proper management of the Town requires immediate action, or in which immediate action is necessary for the preservation of life or property.

Notification & Access
A. The Town will notify the Union, in writing, via fax, no less than 10 business days in advance of any new employee orientation, (same as first day of work at the Town) who joins the bargaining unit. Email notification may also be made but will not substitute notification by fax.

The 10-business day advance notice for new employee orientation may be shortened only when there is an urgent need critical to the Town’s operations that was not reasonably foreseeable in which case the Town will provide as much advance notice as practicable.

B. During the 10-business days’ notice, one Union representative shall schedule, through the Town’s Human Resources representative, a day and time to meet with the new employee(s) at the Town Office whether during new employee orientation or shortly thereafter. It is anticipated that this meeting would require approximately 1 hour and would be scheduled following the Town’s Human Resources representative providing the new employee(s) with information on benefits and Town’s policies. It is understood that employees attending such Union orientation shall be held during paid time schedule. Management representatives will excuse themselves during the Union portion of the orientation.

C. The Town agrees that it will not disclose the date, time, or place of any such employee orientation described in B and C above to anyone other than the employees who are to attend the orientation, the employee’s supervisor and/or Department Head, the Union, or a vendor that is contracted to provide a service for purposes of the orientation.

The Union will be responsible for providing a copy of the current MOU and any Union information to the new employee.

List of Unit Employees
A. Pursuant to AB 119, the Town will provide the Union by fax a list including the name, job title, department, work location, work phone number, home phone number, and home address of any newly hired employee within 30 days of the date of hire or by the first pay period of the month following the employee joining the bargaining unit, whichever is sooner. The Town will also provide cellular phone numbers and personal email address if on file with the Town.

An employee may request in writing to the Town that the Town not disclose their home address, home telephone number, personal cellular number, or personal email address.

The Town agrees that personal contact information of unit employees (e.g., home address, personal phone number, personal email address) is private information not to be disclosed except in the manner authorized by law, to any private (non-governmental) person or entity, -165-

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Public Works Supervisors Unit 2025-2026
other than the Union. The Town further agrees to give the Union notice of receiving the information of request(s) from any such person or entity.

B. The Town will provide the same information to the Union in the same format, outlined above in section A, regarding all employees within the classifications covered by the MOU, every 120 days, which will be established as every September, January and May. Any contact information updates provided to the Town, since the last Employee Data sheet was sent, will be reflected in the next scheduled update.

4. Maintenance of Membership
The Town agrees that it shall deduct dues and fees from unit employee paychecks per employee authorizations employees provide to the Union. The authorizations need only be in a form acceptable to the Union. The Union shall not be obligated to provide the Town with a copy of an employee’s dues deduction authorization unless a dispute arises about the existence or terms of the authorization.

Any request to begin dues deductions or cancel dues deductions must be made to the Union.

The Union shall notify the Town of the designated amount of dues and fees to be deducted for each employee, and the Town shall deduct the amounts so designated. The Town shall not be required to collect any special assessments or similar short-term changes in rate. Initiation fees will not be considered a special assessment.

The Union shall indemnify and hold the Town, its officers and employee harmless from any cost of liability resulting from any and all claims, demands, suits or any other action arising from the operation of this provision or from the use of the moneys remitted to the Union, including the costs of defending against any such actions or claims. The Union agrees to refund to the Town any amounts paid to it in error.

5. Teamsters D.R.I.V.E. Program
The Town will provide payroll deductions for those members who voluntarily elect to participate in the Teamsters D.R,I.V.E. program (civic engagement for voter registration and political education).

D.R.I.V.E. or Democrat, Republican, Independent Voter Education, is the Teamsters’ political action committee. D.R.I.V.E. is non-partisan and independent from any political party.

D.R.I.V.E.is supported through voluntary contributions from Teamsters members. Such donations are not U.S. Tax Deductible.

The Employer agrees to deduct from the paycheck of all employees covered by this agreement voluntary contributions to D.R.I.V.E. D.R.I.V.E. shall notify the employer of the amounts designated by each contributing employee that are to be deducted from their paycheck on a weekly basis for all weeks worked. The employer shall transmit to D.R.I.V.E. national headquarters on a monthly basis, in one (1) check the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee’s social security number and the amount deducted from that employee’s check.
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
The Union agrees to hold the Employer harmless from loss of any judgement of a court of competent jurisdiction and from any order of the Labor Commission or agency of government in connection with or arising out or any deduction made pursuant to this Agreement.

6. Union Representatives
Union representatives may visit work locations where bargaining unit members are performing work provided, however, they shall not interfere with the normal conduct of work or duties of the employees as determined by the City Manager or his or her designee. The Union representative shall first advise the City Manager or his or her designated representative of his or her presence on the premises before contacting any employee covered by this MOU.

Activities such as the soliciting of membership, collection of dues, holding membership meetings, campaigning for office, conducting elections and distributing literature are strictly prohibited during working hours without the prior approval of the City Manager or his or her representative.

Except for the purpose of meeting and conferring for a new MOU, only one on-duty unit member designated as a steward shall be permitted to represent unit members or otherwise engage in activities on behalf of the unit at any time.

In the event the Town believes that the Union representatives are abusing the provisions of this Section, it shall contact the Union in writing to arrange a mutually acceptable time and place to investigate the Town’s complaint and to assure full compliance by the Union representative.

7. Town Communications to Unit Employees concerning Union Rights If the Town chooses to disseminate a communication to unit employees or applicants to be unit employees concerning public employees’ rights to join or support an employee organization, or to refrain from joining or supporting an employee organization, the Town shall meet and confer with the Union concerning the content of communication before dissemination.

If the Town and the Union cannot reach agreement and the Town elects to proceed with its proposed mass communication, the Town must include with its own communication, a communication of reasonable length provided by the Union.

8. Personnel Files
An employee, or on presentation of written authorization from the employee an employee’s representative, shall have specific access to the employee’s personnel file upon request and reasonable convenience of the City Manager’s Office. Documentation in the personnel file relating to the investigation of a possible criminal offense, background information on the employee and letters of reference may be specifically excluded from the inspection and review by the employee and/or the employee’s representative. Information which would be privileged under State law pursuant to the attorney-client privilege or the work product doctrine may also be excluded. Personnel files may only be reviewed in the presence of a designated employee of the City Manager’s Office. The Town will provide employees with copies of their personnel evaluations and warning letters, if any. Upon request, the employee may at his or her expense copy those portions of his or her personnel file not specifically excluded from review by this section.
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

9. Separability
If any section of the MOU should be found invalid, unlawful or unenforceable by reason of any existing or subsequently enacted legislation or by judicial authority, all other articles and sections of this MOU shall remain in full force and effect for the duration of the MOU. In the event of invalidation of any article or section, the Town and the Union agree to meet within 30 days for the purpose of renegotiating said article or section.

10. Maintenance of Benefits
All rights, privileges and terms and conditions of employment in full force and effect prior to this MOU and not in conflict herewith shall become a part hereby and remain until thereby mutually modified by the parties hereto.

11. Sole and Entire Agreement
The parties acknowledge that during the negotiations which resulted in this MOU each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from this area of meeting and conferring, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this MOU. Except as provided below, for the life of this MOU each party voluntarily and unqualifiedly waives the right to, and each agrees that the other shall not be obligated to, meet and confer with respect to any subject or matter referred to or covered by this MOU.

12. No Discrimination
There shall be no discrimination by either Union or Town on any basis prohibited by State or Federal law or on account of any legitimate Union activity.

13. New Work
The Town agrees to meet and confer if required by State statutory or case law concerning the impact of new equipment or machinery on the bargaining unit.

II. COMPENSATION

14. Salary
Salaries for the unit are displayed in Appendix A. Appendix A will be available on the Town’s website.

Effective with the first full pay period in January 2025, salaries of unit employees shall be increased by 3.75%.

Effective with the first full pay period in January 2026, salaries of unit employees shall be increased by 4.0 %
Effective with the first full pay period in January 2027, salaries of unit employees shall be increased by 4.0%
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
New employees will be appointed at Step A. With the approval of the City Manager, the Department Head can recommend that candidates be appointed to a position at any step within the range.

Upon the employee’s successful completion of the probationary period, the Department Head shall recommend to the City Manager the advancement of the employee’s salary to Step B. Every 12 months thereafter following a performance evaluation, the Department Head shall make a recommendation regarding the employee’s advancement to the next step in the salary range.

In recognition of an exemplary performance evaluation, a Department Head can recommend that an employee’s salary be adjusted to the next step in the range at any time.

If a vacancy occurs in the Public Works Superintendent classification, employees in the classification of Public Works Supervisor shall have the opportunity to compete in an internal promotional examination for the position prior to the Town opening recruitment to the outside.

15. On-Call Vehicle
Employees who respond to a call will pick up the marked utility truck at the Municipal Services Center.

The Town reserves its right to assign equipment and vehicles.

Employees who are assigned on-call shifts for weekends and holidays, at the employee’s discretion, may take home a Town utility truck in order to respond to calls.

16. Uniforms
The Town will continue to provide special work clothing as needed and to repair and replace such clothing as needed with the approval of the Department Head, per the department policy.

17. Out-of-Class Pay
Public Works employees assigned the duties of a higher position by the Director or his/her designee shall be eligible for out-of-class pay commencing on a full-day basis immediately on the third day. The assignment must extend a minimum of forty hours for the covering employee to be eligible for out-of-class pay. Assignments shall be based on seniority provided the senior employee’s performance is evaluated as average or above average performance.

Out of class pay shall equal 10% of the employee’s regular hourly rate, not to exceed the maximum of the higher position’s salary range.

18. Incentive pay
Employees who are assigned by the Director to duties where specialized trainings or certifications are mandated to perform the job are eligible to receive premium pay after completing the training/receiving certification as follows:
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
Current Program Current Requirements/Incentives
D-1 Required
D-2 Required
D-3 $100 per month
D-4 Additional $200 per month (for a total of $300 per month) Current
Program
Requirements/ Incentives
CW-1 Required
CW-2 Required
CW-3 $100 per month
CW-4 Additional $200 per month (for a total of $300 per month) Current Program Incentives
T-1 $50 per month
T-2 Additional $75 per month
Current Program Incentives
Cross Connection Specialist $300 per month
Note: Maximum of $ 750 per month incentive pay for the above certifications.

Effective upon the implementation of the new certification pay program the monthly salaries of the Public Works Supervisor and the Assistant Superintendent classifications shall be increased by $100 per month, due to the elimination of the compensation for the D2 and CW2 certificate pays.

Class A/B driver’s licenses
Current employees Requirements/ Incentives
Class B License w/
Tanker Endorsement
$100/month
Class A License w/
Tanker Endorsement
Additional $125 - total of $225/month
Future employees Requirements/ Incentives
Class B License w/
Tanker Endorsement
$100/month-Required with 24 months
Class A License w/
Tanker Endorsement
Additional $125 - total of $225/month
No maximum number of staff for the Class B or Class A licenses.

The Town will meet with Local 350, if the Town determines to add the General Contractor or Facilities Department certifications to the minimum qualifications to either of the classifications in the bargaining unit.
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

19. Emergency Health Crisis
The Town proposes that if follows all appropriate Federal, State, or Local statutes, polices and procedures regarding the declaration of an emergency health crisis.

Any employee with extenuating circumstances may discuss those directly with their Department Head or the City Manager.

20. Training Time
During the term of this MOU, the Department will meet with Local 350 to discuss the following regarding Continuing Education courses:
• The best way for employees to participate in the CE courses without interruption; • Taking CE courses at home
• Preparing the staff for the employee’s absence during a CE course

21. Emergency Response
The Director of Public Works, as designated by the City Manager, may authorize compensation up to $500 for 8 hours or less, $750 for 8 hours but less than 12 hours or $1,000 for 12 hours or more when a Public Works Supervisors who, at the request of the Director, provide services on a day when not regularly scheduled to work in response to extreme emergency situations.

Whether a situation constitutes an “extreme emergency” and whether compensation is payable is within the exclusive discretion of the City Manager and is not subject to any appeal process.

An employee, at his/her option, may decline the Emergency Response cash payment and receive instead 9 hours of paid time off, which will be added to the employee’s time off bank.

An employee’s time off bank cannot exceed 100 hours (which includes emergency response hours as well as holiday time off hours). If an employee’s time off bank would exceed 100 hours with the deposited hours, the employee must take cash for their emergency response or holiday time off.

III. BENEFITS

22. Health Insurance
Active Employees
The Town’s contribution towards the employee’s medical coverage shall be determined by the coverage level the employee selects. The Town’s contribution shall be as follows:

• Employee only – shall not exceed the Blue Shield Access + Region 1 Health Plan Employee only
• Employee plus one – shall not exceed the Blue Shield Access + Region 1 Health Plan Employee plus one
• Employee plus 2 or more - shall not exceed the Blue Shield Access + Region 1 Health Plan Family
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
If, during the term of this MOU, the Blue Shield Access + plan is not available in CalPERS Region 1, then the Town’s medical premium contribution shall be set at the 2nd highest HMO offered in CalPERS Region 1.

Each January 1, during the term of this MOU, the Town’s medical contribution shall increase by up to 15% of the appropriate coverage level of Blue Shield rate. The 15% increase shall be applied to the current Town’s monthly contribution rate. Any increase over 15% would be the responsibility of the employee, to a maximum of $100 per month.

If, during the term of this MOU, the 2nd highest HMO becomes the Town’s medical premium contribution, then future year increases shall be subject to the 15% increase cap as defined above.

Under no circumstances shall the Town’s increased monthly contribution be used to offset the employee’s contribution rate effective on December 1st of the previous year.

In addition, if an employee selects a plan that exceeds the Town’s medical premium contribution, then the employee shall be responsible to pay the amount that exceeds the Town’s medical premium contribution via payroll deductions.

Employees who have alternate coverage such as coverage through a spouse’s employer’s plan (NOT individual coverage) are eligible to receive cash in lieu of medical insurance at the employee’s actual enrollment level (single, employee + 1 or employee + 2 or more).

Employees will be required to show proof of alternate coverage every year during open enrollment. Effective January 1, 2021, employees who have alternate coverage as of December 31, 2020 as described above are eligible to receive cash in lieu of medical insurance in the following amounts:
- Employee only $384.13 per month
- Employee + 1 $768.25 per month
- Employee + 2 or more $998.73 per month
Employees who receive the cash in lieu of medical benefit and who opt out of the program will be treated as employees hired after January 1, 2021 for future cash in lieu benefits.

Employees who enroll in the cash in lieu of medical benefit after January 1, 2021, who have alternate coverage as described above, are eligible to receive a contribution to the employee’s deferred compensation account in the amount of three hundred dollars ($300) per month in lieu of receiving medical benefits.

An employee who retires after January 1, 2014, and who is eligible for retiree medical contributions, shall continue to be subject to the 15% maximum increase described above.

Any amounts over the 15% cap that occurred while said employee was still active shall continue to be paid by the employee in retirement, to a maximum of $100 per month.

PERS Contribution
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
In accordance with Resolution 02-01, the Town’s contribution to PERS is set at an amount not less than the amount required under Section 22825 of the Public Employee’s Medical and Hospital Care Act. PERS will determine the contribution amount annually.

Retirees
The Town does not provide post-retirement health benefits to employees hired after January 1, 2002.

23. Employee Wellness
Employees can be reimbursed up to $500 per year for the following qualifying wellness activities:
- Gym fees
- Nutritional counseling
- Lifestyle assessments
- Chiropractic services
- Acupuncture service
- Smoking cessation programs
- Weight loss programs
- Town approved Parks and Recreation sponsored fitness programs - Equipment (home gym equipment): Bowflex, Peloton, etc.; equipment for various classes: yoga mat, boxing gloves, etc. No clothing is eligible for reimbursement.

24. Retiree Health Savings Accounts
Employees hired after January 1, 2002 are eligible to receive a contribution to a Retiree Health Savings Account of $75 per month. Employees must meet vesting requirements of the plan as follows:
- Year 1 20%
- Year 2 40%
- Year 3 60%
- Year 4 80%
- Year 5 100%
Effective the first full pay period in January 2025, employees hired on or after January 1, 2002 shall receive a monthly contribution to a Retiree Health Savings Account in accordance with the following:

Months of Service Monthly Contribution
Hire to 60 months 2.0% of base monthly salary
61 months – 239 months 3.0% of base monthly salary
240 months thereafter 4.0% of base monthly salary
Employees must meet vesting requirements of the plan as follows:

Completion of:

Year 5 100% vested
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

25. Post-Retirement Payments
To compensate those retirees and their survivors who were promised health benefits upon retirement and those employees hired prior to January 1, 2002 who bargained in good faith to eliminate the post-retirement health benefit in favor of implementing an improved retirement pension plan (PERS 3% @ 60), the Town shall provide post-retirement payments in lieu of health insurance as set forth below.

The actual amount of the payments will be equal to the retired employee’s actual cost for health coverage up to a maximum of the one-party, two-party or three-party Public Employees Retirement System (PERS) basic rate for the Blue Shield HMO health plan, subject to the conditions listed in Section 21 – Active Employees above.

Employees must be enrolled in a PERS health plan at the time of retirement to be eligible for this benefit. Former employees who enroll in PERS health plans during an open enrollment period after separation from the Town’s service are not eligible for this benefit.

Payments will continue until the retiree or survivor is no longer enrolled in the PERS health plan with the following exception: Retirees and survivors who were receiving retirement health benefits prior to January 1, 2002 will be permitted to select a health plan outside of PERS health plans if PERS rules do not permit their continued participation in the health plans.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for the post-retirement payments.

Retirees are responsible for keeping the Town notified of their current address. If payments are discontinued because no forwarding address is available, the Town will not be liable to provide retroactive payments. The Town will resume payments upon notification of an updated address if the former employee is otherwise qualified to receive the payments.

26. Disability Income Protection
The Town will provide Long Term Disability (LTD) Insurance which will provide 66 2/3% of salary to a maximum of $6,000 monthly and which will begin sixty calendar days after the first day of disability. The Town shall pay the entire premium for LTD.

27. Dental and Orthodontia Plan
Employees shall be included in the Town’s self-funded dental and orthodontia plans. The benefit maximum is $2,500 per person per year. Plan year is from January 1 – December 31.

28. Vision Plan
Employees shall be included in the Town’s self-funded vision plan. The maximum benefit shall be $500 per person per year. Plan year is from January 1 – December 31.

29. Life Insurance
The Town shall provide a group life insurance policy in the amount of $100,000 of coverage to each probationary and regular employee during the term of this MOU. -174-

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Public Works Supervisors Unit 2025-2026

30. Retirement
Employees hired prior to 7/1/2012:

Employees receive the 3% @ 60 retirement formula with a single highest year method of calculation. Employees will pay the Employee’s Contribution (8% of salary) to PERS, plus 1% of the employer’s cost.

Employees hired between 7/1/12 and 12/31/12:

Employees hired during this period receive the 2% @ 60 retirement formula with a three-year final average method of calculation. Employees will pay the Employee’s Contribution (7% of salary) to PERS.

Employees hired 1/1/13 or after:

If an employee is considered a “classic member” with PERS, the employee will receive the retirement formula in place as of 12/31/12.

If an employee is considered a “new member” with PERS, the employee will receive the PEPRA mandated retirement plan of 2% @ 62 with a three-year final average method of calculation.

Employees will pay the Employee’s Contribution of 50% of the normal cost, as determined by PERS.

Employees’ PERS contributions, although designated as employee contributions, are being paid by the Town in lieu of contributions by the employee in accordance with §414(h)(2) of the Internal Revenue Code.

31. Military Leave
Military Leave shall be granted in accordance with the provisions of State and Federal law. All employees entitled to military leave shall give the City Manager an opportunity within the limits of military regulations to determine when such leave shall be taken.

32. Leave of Absence Without Pay
The City Manager may, at his or her discretion, grant a regular or probationary employee Leave of Absence without pay or seniority for a period not to exceed six months for medical reasons, and three months for other types of leaves. No such leave shall be granted except upon written request of the employee setting forth the reason for the request, and the approval will be in writing.

Upon expiration of an approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted.

Failure on the part of an employee on leave to report promptly at its expiration or within a reasonable time after receiving notice to return to duty shall be cause for discharge. The depositing in the United States mail of a first-class letter postage paid and addressed to the employee’s last known place of address shall be reasonable notice.

33. Jury Duty
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Memorandum of Understanding
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Employees who are called or required to serve as trial jurors shall be entitled to be absent from their duties with the Town during the period of such service or while necessarily being present in court as a result of such call. Employees shall be paid their full salary for such duty.

34. Sick Leave
Sick leave with pay shall be granted to all probationary and regular employees who are assigned to allocated positions. An employee may only use sick leave in cases of actual sickness, medical/dental/vision appointments or disability.

In order to receive compensation while absent on sick leave, the employee shall notify the Superintendent or designee prior to or within four hours after the time set for beginning his or her daily duties, or as may be specified by the Department Head.

When absence is for more than three (3) workdays, the employee may be required to file a physician’s certificate or a personal affidavit with the City Manager’s Office, excusing the employee from work.

Sick leave shall be earned by full-time employees at the rate of 3.69 hours per bi-weekly pay period. This accrual shall be prorated for part-time personnel in allocated positions. There is no maximum accrual limit for sick leave.

Sick leave will not be accrued while an employee is on non-industrial disability or unpaid leave.

No person shall be entitled to sick leave with pay while absent from duty on account of any of the following causes:
• Sickness or disability sustained while on leave of absence, other than his or her regular vacation or holiday;
• Disability received as a result of engaging in a gainful occupation outside Town employ.

Not more than 56 hours of sick leave each calendar year may be taken in case an employee’s presence is required elsewhere because of sickness or disability of members of his or her immediate family. The immediate family shall consist of the spouse, children, parents, siblings, domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent. In each such case the City Manager shall grant such sick leave only when, in his or her opinion, the relationship of the sick or disabled person to the employee warrants such use of sick leave.

Employees who have exhausted said 56 hours of family sick leave may be permitted to use remaining accrued sick days with the approval of the Director, provided they have used their balance of Compensatory Time Off first.

Annual Sick Leave Payouts
All employees in this bargaining unit have the ability to cash out up to 25% of their unused annual sick leave accrual for the previous calendar year. Payment will be made generally in the first full pay period in January. Employees must have a minimum sick leave balance of 300 hours in order -176-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
to eligible for the annual sick leave payout. The Annual Sick Leave Payout provision will be suspended until the City Council reinstates it for Unrepresented employees.

Unused Sick Leave Upon Retirement
Any full-time employee in the Unit with ten years of continuous service at the time of retirement can choose to be paid in cash for accumulated sick leave, up to the equivalent of one month’s pay upon separation from service with the Town of Hillsborough.

Retirement, for the purpose of this rule, shall be construed to mean the termination of employment in order to accept service or disability retirement under PERS.

All remaining sick leave shall be converted to service credit under PERS.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for this benefit.

35. Death or Critical Illness Leave
With the consent of the Department Head or his/her designee, a regular employee may be allowed to be absent from the duties of his or her position and to receive full compensation during such absence for a period not to exceed five (5) scheduled shifts in the case of death or of critical illness where death appears imminent of the employee’s spouse, children, parents, siblings, in-laws, grandparents, domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent within 120 calendar days of the event. Where such a death or critical illness has occurred, the employee shall furnish satisfactory evidence of such death or critical illness to his or her Department Head or designee. The Department Head may allow an employee to take accrued vacation, floating holiday, non-compensated time off or CTO in order to provide additional bereavement time off.

36. Industrial Disability Leave
Any regular employee of the Town who has suffered any disability arising out of or in the course of employment as defined by the Workers’ Compensation laws of the State of California may be entitled to disability leave while disabled without loss of compensation for the period of such disability to a maximum of ninety (90) days. Such disability with pay may be extended at the discretion the City Manager not to exceed one year.

The Town may call for medical examinations as frequently as would be reasonably necessary given the nature and extent of the injury and the degree of change of condition within a given period of time but shall not schedule examinations so frequently as to constitute harassment of the employee.

The Town may terminate industrial disability leave if a disability retirement is initiated.

37. Family Medical Leave
The Town will grant Family Medical Leave in accordance with the requirements of applicable State and Federal laws in effect at the time the leave is granted. No greater or lesser leave benefits -177-

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Public Works Supervisors Unit 2025-2026
will be granted than those set forth in such State or Federal laws. In certain situations, the Federal law requires that provisions of State law apply. Employees will be eligible for the most liberal benefits available under either law.

Family Medical Leave is unpaid. In a case where an employee is taking leave for his or her own health condition or to take care of a spouse, child or parent who has a serious health condition, the employee may elect, or the Town may require the employee, to substitute any of the employee’s vacation, holiday, CTO or sick leave for an unpaid period of leave.

In a case where an employee is taking leave for birth or placement of a child, the employee may elect, or the Town may require the employee, to substitute any of the employee’s vacation leave for an unpaid period of leave.

38. Vacation
The purpose of vacation leave is to enable each eligible employee annually to return to his or her work refreshed. All regular and probationary employees shall be entitled to vacation leave with pay.

The progressive vacation accrual schedule is as follows:

Years of Service
Completed
Bi-Weekly
Accrual Rate
Hours per
Year
Less than 4 3.08 80
4-9 4.62 120
10 4.92 128
11 5.23 136
12 5.54 144
13 5.85 152
14-15 6.15 160
16 6.46 168
17 6.77 176
18 7.08 184
19 7.38 192
20 7.69 200
This schedule shall be prorated for part-time employees in allocated positions.

If the requirements of the service are such that an employee is not allowed to take part or all of his or her accrued vacation in a particular calendar year, such vacation either shall be taken during the following calendar year or paid for at the discretion of the employee.

Vacation may be taken in increments as determined by the employee. Employees will give 48 hours’ notice of intent to take 3 days or less of vacation, and seven (7) days’ notice of intent to take 4 days or more of vacation to their Department Head. The Department Head shall approve the scheduling of the vacation prior to the employee taking the time off. In exigent circumstances, -178-

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Public Works Supervisors Unit 2025-2026
an employee can request 4 days or more of vacation with less than 7 days’ notice at the discretion and approval of the Department Head.

The maximum accumulation of vacation leave may not exceed 2 times annual accrual. Once the maximum vacation accumulation is reached vacation leave will cease to accrue.

In the event one or more municipal holidays fall within a vacation leave, such holidays shall not be charged as vacation leave.

Employees who terminate employment shall be paid in a lump sum for all accrued vacation leave earned prior to the effective date of termination.

An employee who is placed on a re-employment list due to their layoff from Town employment, and who is reinstated to Town employment, shall have his/her years of service with the Town prior to the layoff used when determining years of service for vacation accrual.

39. Vacation Buy-Back
An employee in this unit may elect to convert vacation hours to cash. The requirements to participate in the program are:

A. Must have used 40 hours of vacation in the current year B. Must have a balance of 300 hours as of December 1 of the current year Election forms must be filled out by each member of the unit between December 1 and 10 of each year. An employee may elect between 40 and 80 hours to cash out. Vacation hours cashed out applies only to hours earned in the year following the election. Payment of vacation hours elected for cash out will be made on the first pay period in August of the year following the election.

Vacation that is used is understood to be on a first-earned basis. Elections are irrevocable.

40. Holidays
A holiday equals eight (8) hours leave. Thus employees shall receive a total of 96 hours of leave for twelve eight-hour holidays.

If a holiday falls on an employee’s scheduled day off, the employee will have the option of receiving eight hours compensatory time off or eight hours of compensation, paid at the regular hourly rate.

Effective January 1, 2025, the recognized holidays to be observed by the Town for unit employees are as follows:

Date Holiday
January First New Year’s Day
Third Monday in January Martin Luther King’s birthday
Third Monday in February Presidents’ Day
Last Monday in May Memorial Day
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
July Fourth Independence Day
First Monday in September Labor Day
November Eleventh Veteran’s Day
Fourth Thursday in November Thanksgiving Holiday
Friday after Thanksgiving Friday after Thanksgiving
December Twenty-fourth Christmas Eve
December Twenty-fifth Christmas Day
Floating Holiday (8 hours)
Floating Holiday (8 hours)
Day of Reflection (8 hours)
Employees will accrue sixteen (16) hours of floating holiday leave and eight (8) hours of leave for a Day of Reflection on January 1st of each year. If a new employee’s hire date is prior to June 30, that employee’s will receive twenty-four (24) hours of floating holiday/Day of Reflection. If the employee’s hire date is July 1 or later that employee will receive twelve (12) hours of floating holiday/Day of Reflection for that calendar year. Thereafter, accrual shall be consistent with continuing employees. Floating Holiday/Day of Reflection leave may not be carried over into the next calendar year.

Day of Reflection is in recognition of holidays of individual and community importance, including Juneteenth, Cesar Chavez Day, Indigenous Peoples’ Day.

Every day appointed by the President of the United States or the Governor of this State for a public fast, Thanksgiving or holiday and every day pronounced as a National Day of Mourning is a holiday when also approved by the City Council.

Regular and probationary employees shall not be required to be on duty on holidays unless the employee’s services are required in the interests of the public health, safety or general welfare.

When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, the preceding Friday shall be observed.

Floating holiday hours may be taken in any increment with the advance approval of the Department Head.

41. Paid Administrative Leave
Beginning January 1, 2017, Administrative Leave with pay shall be granted to all regular employees in this unit who are assigned to allocated positions. Employees shall be provided with 40 hours of Administrative Leave on January 1st of each year. Administrative Leave must be taken in the year that it is earned and cannot be carried over from one year to the next.

42. Tuition Reimbursement
College Reimbursement
Subject to budget constraints, the Town will reimburse an employee’s tuition dependent on the following conditions:
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

1. Employees should attain approval for reimbursement from their Department Head prior to the beginning of the semester.

2. Tuition reimbursement will be based on local community college or California State University fee structures and limited to $1,500 per employee per calendar year. The City Manager may approve additional reimbursement for expenses when an employee participates in an accelerated college degree program.

3. Employees must attain a grade of C or better in order to be eligible for reimbursement as follows:

Grade % of Reimbursement
A 100%
B 80%
C 50%

4. Reimbursement will be approved after the employee submits proof of payment and receives his or her grade.

Licenses and Certifications
The Town will reimburse employees for their costs to take approved examinations for professional licenses or certifications.

43. Mileage Reimbursement
Employees responding to a call can request reimbursement for mileage to work at the current federal approved rate, and bridge tolls, if applicable.

Employees are eligible for mileage reimbursement when driving their personal vehicle to Town approved trainings.

IV. EMPLOYMENT

44. Notification of Vacant Positions
All openings for full-time or part-time allocated positions in this unit shall be sent out to all Town employees via email.

45. Probation
All unit employees shall serve a probationary period of 12 months. Upon successful completion of the probationary period, an employee shall attain a regular employment status.

Anyone serving in a probationary period may be rejected at any time without cause and without notice. Rejection during a probationary period will not be subject to the grievance procedure. If serving an initial probation with the Town, rejection during a probationary period will result in termination.

If an employee is rejected during probation as a result of a promotion, they will have bumping rights to their former classification where they attained regular status. -181-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

46. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves. Failure on the part of an employee, absent without authorized leave, to return to duty within 24 hours after receiving notice to return shall be cause for immediate discharge and such employee automatically waives all rights under the personnel ordinance and these rules. The depositing in the United States mail of a first-class letter postage paid, addressed to the employee’s last known place of address, shall be reasonable notice.

47. Hours of Work
Subject to the needs of Town, employees may be assigned to one of the following working shifts:
• 5 days per week, 10 days per pay period
• 9 days per pay period
Variations of schedules will be permitted by agreement between the Department Head and employees.

The Town will notice the Union and confer with the Union prior to making any permanent work schedule changes. The Town will give employees a minimum of 60 calendar days’ notice prior to the implementation of the schedule change.

48. Discipline
The Town may discharge, suspend, demote, reduce salary or otherwise discipline any employee for cause including, but not limited to:
• Dishonesty
• Insubordination
• Use, possession or being under the influence of alcohol or drugs • Incompetence
• Willful negligence
• Inability to meet minimum licensing or bonding requirements of the employee’s regularly assigned position
• Fighting
• Discourteous treatment of coworkers or residents
• Unexcused absenteeism
• Tardiness when reporting to work or returning from breaks • Misuse of Town property
• Failure to perform work as required or
• Failure to comply with or violation of the Town’s reasonable rules regarding safety conduct and operations
• Willful damage to public property
• The commitment or conviction of any criminal act that would directly affect work duties Any regular employee who has been subject to such discipline shall be notified of the reasons for such action in writing with a copy of such letter furnished to the Union. A letter sent by first-class mail to the employee’s last known address shall be considered adequate notice. -182-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
A progressive discipline process shall be followed, except when the safety and well-being of the employee, co-workers, members of the public or public property is endangered.

Pre-Disciplinary Hearings
No regular employee shall be demoted, suspended or discharged for a disciplinary purpose except in accordance with the provisions of this section; provided, however, that this section shall not apply to suspensions of less than 40 hours.

Whenever the Town proposes to demote, suspend or discharge a regular employee in a case in which this section is applicable, the Town shall provide the employee with written notice of the proposed action. The notice shall state the proposed disciplinary action and the reasons for it. The notice shall also include a copy of the charges and materials upon which the proposed action is based.

The employee shall have the right to present an oral or written response to the proposed action.

Thereafter the Town shall determine, based upon such response and the materials upon which the proposed action was based, whether to impose the action initially proposed, a lesser action or to take no action. The Town shall promptly notify the employee in writing of such decision.

Employees who decide to appeal the decision of the pre-disciplinary hearing shall file a grievance at Step 2 Department level.

49. Letters of Reprimand
A written reprimand may be removed from an employee’s personnel file 36 months after it is placed there, provided that the employee does not receive a written reprimand for a similar incident or offense during that 36 month period. If the employee receives a written reprimand for a similar incident or offense with the 36 month period, the initial written reprimand shall remain in the employee’s file for the duration of time the succeeding reprimand stays in the file.

50. Grievance and Arbitration Procedure
Grievances subject to arbitration shall be only such grievances which involve the interpretation, application, or compliance with the provisions of this Memorandum or Departmental policies, or a dispute or disagreement concerning whether or not discipline, including discharge, was for just cause.

Step I - Informal Level
An employee who has a grievance shall first discuss the grievance on an informal basis with his or her supervisor within fifteen (15) calendar days of the alleged violation of the Memorandum or within fifteen (15) calendar days of the time the grievant knew of or could have reasonably discovered such action or occurrence. Within fourteen (14) calendar days of receipt of the grievance, the supervisor shall investigate the matter, if necessary. Every effort will be made by the parties to resolve the grievance at this level and may include a conference among the Union, supervisor or other administrative staff. The supervisor will provide the employee with a written response to the grievance.

Grievances by the Town shall be discussed with the Union within fifteen (15) calendar days of the -183-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
alleged violation of the Memorandum. If the parties are not able to resolve the issue, within fifteen (15) days after the last communication with the Union the Town may submit a request for arbitration pursuant to Step 4.

Step 2 – Department Level
If the grievance is not resolved at Step 1 or involves the termination or suspension of more than 40 hours and has not been resolved at the Pre-Disciplinary Hearing, the employee may submit the grievance in writing to the Department Head within fifteen (15) calendar days after the presentation of the supervisor’s reply. The written grievance shall:
• Fully describe the grievance and how the grievant was adversely affected • Set forth the section(s) of this Memorandum allegedly violated • Indicate the date(s) of the incident grieved
• Specify the remedy or solution to the grievance sought It shall be the responsibility of the employee to submit a copy of the grievance to the Union. The Department Head or his/her designee, if necessary, may investigate the matter. The Department Head or his/her designee shall also schedule a meeting with the grievant and shall provide a written response to the grievant after holding the meeting with the grievant. The meeting and provision of the written response shall occur within fifteen (15) calendar days after receipt of the grievance.

Whenever the immediate supervisor and the Department Head is one and the same person, this step in the procedure shall be omitted.

Step 4 – Mediation
At the Union’s request, the matter may be referred to mediation. The Town and the Union may mutually agree to the selection of a mediator or a request may be made to the State Mediation and Conciliation Service for the assistance of a mediator to evaluate and assist the parties to reach resolution.

Step 4 - City Manager Review
If the grievance is not resolved at Step 2 a written grievance may be filed with the City Manager or his or her designee within fifteen (15) business days after the presentation of the Department Head’s reply.

The City Manager or his/her designee will review the written grievance and may, at his/her discretion, meet with the employee to discuss the grievance. The City Manager shall reply in writing to the grievance within fifteen (15) calendar days of the meeting with the employee or, if no meeting occurs, within his/her receipt of the Step 2 grievance; provided, however, that in the event that the City Manager is away from the Town during this period, his/her time to reply shall be extended by and equal number of days that he/she is absent to a maximum of twenty (20) days.

Step 5 - Arbitration
If the grievance is unresolved at Step 3 or if Step 4 is utilized, either the Union or the Town may, within fifteen (15) calendar days, request in writing arbitration and the parties shall attempt to mutually agree upon an arbitrator. In the event the parties are unable to agree upon an arbitrator, -184-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
after thirty (30) days either party may request a list of seven (7) names from the California Conciliation and Mediation Service. Each party shall alternately strike one (1) name until an arbitrator is selected. The right to strike the first name shall be determined by lot and the parties shall alternately strike one (1) name from the list until only one (1) name remains. The remaining panel member shall be the arbitrator.

The arbitrator shall conduct a hearing at which he/she will hear evidence and render a decision on the issue or issues submitted to him/her. If the parties cannot agree on the issue to submit, the arbitrator shall determine the issues.

The Town and the Union agree that the jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provisions or provision of this Memorandum at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of this Memorandum or impose any limitations or obligations not specifically provided for under the terms of this Memorandum. The arbitrator shall be without power or authority to make any decision that requires the Town to do an act prohibited by law.

After a hearing and after both parties have had an opportunity to make written arguments, the arbitrator shall submit in writing to all parties his/her finding and recommended award. The award of the arbitrator shall be final and binding on both parties and on any affected bargaining unit employee.

Either party may elect to have representation by legal counsel for the arbitration hearing.

Arbitration Costs
All expenses for the arbitration shall be paid equally by the Town and the Union, except that each party shall be responsible for the expenses of its own attorney, witnesses and transcripts.

Timeliness
All grievances must be presented at the proper steps in accordance with the time limitations herein and unless such grievances are so presented, the right to file such grievances shall be waived. Any grievance not appealed to the next succeeding step within the time limits specified will be considered withdrawn and not eligible for further appeal. If the Town fails to respond within the prescribed time limits of any one step, the last Town response shall be deemed to be the Town’s position for the next succeeding steps. Time limits can be extended by mutual consent, however that any mutual agreements to extend deadlines are not precedential.

51. No-Strike Clause
Both parties of this memorandum recognize the obligation of the Union and of the employees to refrain from engaging in any strike or slowdown of work. In fulfillment of that obligation, the parties recognize that there will be no strike, sympathy strike, slowdown, sick-ins, curtailment of work or interference with the Town’s operations on the part of either the Union or employees during the term of this Memorandum or anytime this Memorandum is continued by the express mutual consent of the parties. It is recognized that violation of this clause will result in discipline up to and including terminations.
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026

52. Safety
Observance of Safety Rules and Regulations
Both the Town and the Union shall expend a reasonable effort to ensure that work is performed with a maximum degree of safety, consistent with the requirement to conduct efficient operations.

Each employee covered by this MOU agrees to comply with all safety rules and regulations in effect and any subsequent rules and regulations that may be adopted. Employees further agree they will report all accidents and safety hazards to the appropriate management official immediately. Any employee having knowledge of or who is a witness to an accident shall give full and truthful testimony as to same.

Safety Program
The Town has established a Safety and Risk Management Committee. The Department may appoint up to one (1) employee representatives on the Committee.

53. Layoff
Whenever, in the judgment of the Town, it becomes necessary to abolish positions, the Town may abolish any position included in the bargaining unit and the employee holding such position may be laid off subject to any bumping rights he or she may have. The Town may lay off employees due to lack of work or funds.

In a reduction in force, employees with the least length of service in the classification shall be laid off first provided that, in the determination of the City Manager, the skill and qualifications of the remaining employees are equal to that of the laid off employee. Employees to be laid off from a classification shall have a right to bump employees in a lower classification in accordance with seniority with the Town provided that, in the determination of the City Manager, they possess superior skill and qualifications.

Employees affected by a layoff shall retain employment rights in a position previously held in a lower classification and shall revert back to said position with full seniority rights and be integrated with the seniority ranking of employees in the lower classification.

54. Reinstatement
A regular employee who has resigned in good standing may be reinstated to a vacant position of the same classification as the previous position within a period of two (2) years from the effective date of resignation. Reinstatement will be made at the salary step determined by the City Manager.

A reinstated employee will not be entitled to prior service credit in calculating Town benefits.

V. TERM
This MOU shall be in full force and effect until midnight, December 31, 2027. -186-

Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
The Union shall notify the Town of its intent to open the MOU to negotiate a successor MOU prior to August 1, 2027. The Town shall provide it’s availability to meetl within 30 days of receipt of the Union’s request.

Town of Hillsborough Teamsters Local 350, IBT
_____________________________ ______________________________ Doug Davis, City Manager John Bouchard, Secretary Treasurer

_____________________________ ______________________________ Dated Dated
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Memorandum of Understanding
Public Works Supervisors Unit 2025-2026
Appendix A – Salary Schedule – Effective January 2025
Jan-25
Public Works
Biweekly 4,616 4,847 5,088 5,343 5,610
Supervisor Monthly 10,000 10,502 11,026 11,578 12,155
Annually

120,008

126,012

132,300

138,928

145,867
Public Works
Asst.

Biweekly
5,091

5,346

5,612

5,894

6,189
Superintendent Monthly

11,030

11,582

12,161

12,770

13,409
Annually

132,357

138,985

145,924

153,231

160,907
Jan-26
Public Works
Biweekly 4,800 5,040 5,292 5,557 5,835
Supervisor Monthly 10,400 10,922 11,467 12,041 12,641
Annually

124,808

131,053

137,592

144,485

151,702
Public Works
Asst.

Biweekly
5,294

5,559

5,837

6,129

6,436
Superintendent Monthly

11,471

12,046

12,647

13,280

13,945
Annually

137,651

144,544

151,761

159,361

167,344
Jan-27
Public Works
Biweekly 4,992 5,242 5,504 5,779 6,068
Supervisor Monthly 10,817 11,359 11,925 12,523 13,147
Annually

129,800

136,295

143,096

150,265

157,770
Public Works
Asst.

Biweekly
5,506

5,782

6,070

6,374

6,694
Superintendent Monthly

11,930

12,527

13,153

13,812

14,503
Annually

143,157

150,326

157,831

165,735

174,037
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MEMORANDUM OF UNDERSTANDING

TOWN OF HILLSBOROUGH
AND
TEAMSTERS UNION LOCAL NO. 350 I.B.T.

January 1, 202521 – December 31, 202723
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ATTACHMENT 2

Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
Public Works Supervisor Unit
Memorandum of Understanding 202521 - 202723
Table of Contents
Section Subject Page
I. GENERAL

1. Bargaining Unit 4

2. Management Rights 4

3. Union Rights 4

4. Maintenance of Membership 6

5. Union Representatives 6

6. Town Communication to Unit Employees concerning
Union rights 7

7. Personnel Files 7

8. Separability 7

9. Maintenance of Benefits 7

10. Sole and Entire Agreement 7

11. No Discrimination 8

12. New Work 8
II. COMPENSATION

13. Salary 8

14. On Call Vehicle 9

15. Uniforms 9

16. Out-of-Class Pay 9

17. Incentive Pay 9

18. Emergency Health Crisis 10

19. Training Time 10

20. Emergency Response 10
III. BENEFITS

21. Health Insurance 11

22. Employee Wellness 12

23. Retiree Medical Savings Account 13

24. Post Retirement Payments 13

25. Disability Income Protection 14

26. Dental and Orthodontia Plan 14

27. Vision Plan 14

28. Life Insurance 14

29. Retirement 14

30. Military Leave 15

31. Leave of Absence without Pay 15

32. Jury Duty 15

33. Sick Leave 15
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023

34. Death or Critical Illness Leave 17

35. Industrial Disability Leave 17

36. Family Medical Leave 17

37. Vacation 18

38. Vacation Buy-Back 19

39. Holidays 19

40. Paid Administrative Leave 20

41. Tuition Reimbursement 20

42. Mileage Reimbursement 21
IV. EMPLOYMENT

43. Notification of Vacant Positions 21

44. Probation 21

45. Attendance 21

46. Hours of Work 21

47. Discipline 22

48. Grievance and Arbitration 23

49. No Strike Clause 25

50. Safety 25

51. Layoff 25

52. Reinstatement 26
V. TERM
Term 26
Appendix A 27
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023

The Memorandum of Understanding (“MOU”) between the
Town of Hillsborough (“Town”) and Teamsters Union Local No. 350, I.B.T. (“Union”) representing the Public Works Supervisors Unit for the period of January 1, 202521 through December 31, 202723 shall read as follows:

I. GENERAL

1. Bargaining Unit
The bargaining unit shall include all allocated positions of:
 Public Works Supervisor
 Assistant Superintendent

2. Management Rights
Except as modified by this MOU, it is understood and agreed that the Town retains all of its rights, power and authority to direct, manage and control the Town to the full extent of the law. The exercise of powers, rights, authority, duties and responsibilities by the Town, the adoption of policies, rules, regulations and practices in furtherance thereof, the use of judgment and practices in furtherance thereof, and the use of judgment and discretion in connection therewith shall be limited only by the specific and express terms of this MOU and then only to the extent such specific and express terms are in conformance with the law.

Any of the rights, powers, authority and functions that the Town possessed prior to the execution of this MOU are retained by the Town except as specifically limited by this MOU.

Nothing in this section shall be construed to excuse the Town from its obligation to meet and confer with the Union regarding any subject or matter not set forth in this section where required to do so by statute.

3. Union Rights
Communications with Employees
The Union shall be provided suitable space on a bulletin board at the work location for posting notices concerning official Union business.

Advance Notice
Except in cases of emergency as provided below in this subsection, the Union, if affected, shall be given reasonable advance written notice of any ordinance, resolution, rule or regulation directly relating to matters within the scope of representation proposed to be adopted by the Town and shall be given the opportunity to meet and confer with the appropriate management representatives prior to adoption.

In cases of emergency when the foregoing procedure is not practical or in the best public interest, the Town may adopt or put into practice immediately such measures as are required. At the earliest -192-

Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
practicable date thereafter, the Union shall be provided with the notice described in the preceding paragraph and be given the opportunity to meet and confer with the appropriate management representatives. As used herein, “emergency” shall mean any situation in which proper management of the Town requires immediate action, or in which immediate action is necessary for the preservation of life or property.

Notification & Access
A. The Town will notify the Union, in writing, via fax, no less than 10 business days in advance of any new employee orientation, (same as first day of work at the Town) who joins the bargaining unit. Email notification may also be made but will not substitute notification by fax.

The 10-business day advance notice for new employee orientation may be shortened only when there is an urgent need critical to the Town’s operations that was not reasonably foreseeable in which case the Town will provide as much advance notice as practicable.

B. During the 10-business days’ notice, one Union representative shall schedule, through the Town’s Human Resources representative, a day and time to meet with the new employee(s) at the Town Office whether during new employee orientation or shortly thereafter. It is anticipated that this meeting would require approximately 1 hour and would be scheduled following the Town’s Human Resources representative providing the new employee(s) with information on benefits and Town’s policies. It is understood that employees attending such Union orientation shall be held during paid time schedule. Management representatives will excuse themselves during the Union portion of the orientation.

C. The Town agrees that it will not disclose the date, time, or place of any such employee orientation described in B and C above to anyone other than the employees who are to attend the orientation, the employee’s supervisor and/or Department Head, the Union, or a vendor that is contracted to provide a service for purposes of the orientation.

The Union will be responsible for providing a copy of the current MOU and any Union information to the new employee.

List of Unit Employees
A. Pursuant to AB 119, the Town will provide the Union by fax a list including the name, job title, department, work location, work phone number, home phone number, and home address of any newly hired employee within 30 days of the date of hire or by the first pay period of the month following the employee joining the bargaining unit, whichever is sooner. The Town will also provide cellular phone numbers and personal email address if on file with the Town.

An employee may request in writing to the Town that the Town not disclose their home address, home telephone number, personal cellular number, or personal email address.

The Town agrees that personal contact information of unit employees (e.g., home address, personal phone number, personal email address) is private information not to be disclosed except in the manner authorized by law, to any private (non-governmental) person or entity, -193-

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other than the Union. The Town further agrees to give the Union notice of receiving the information of request(s) from any such person or entity.

B. The Town will provide the same information to the Union in the same format, outlined above in section A, regarding all employees within the classifications covered by the MOU, every 120 days, which will be established as every September, January and May. Any contact information updates provided to the Town, since the last Employee Data sheet was sent, will be reflected in the next scheduled update.

4. Maintenance of Membership
The Town agrees that it shall deduct dues and fees from unit employee paychecks per employee authorizations employees provide to the Union. The authorizations need only be in a form acceptable to the Union. The Union shall not be obligated to provide the Town with a copy of an employee’s dues deduction authorization unless a dispute arises about the existence or terms of the authorization.

Any request to begin dues deductions or cancel dues deductions must be made to the Union.

The Union shall notify the Town of the designated amount of dues and fees to be deducted for each employee, and the Town shall deduct the amounts so designated. The Town shall not be required to collect any special assessments or similar short-term changes in rate. Initiation fees will not be considered a special assessment.

The Union shall indemnify and hold the Town, its officers and employee harmless from any cost of liability resulting from any and all claims, demands, suits or any other action arising from the operation of this provision or from the use of the moneys remitted to the Union, including the costs of defending against any such actions or claims. The Union agrees to refund to the Town any amounts paid to it in error.

5. Teamsters D.R.I.V.E. Program
The Town will provide payroll deductions for those members who voluntarily elect to participate in the Teamsters D.R,I.V.E. program (civic engagement for voter registration and political education).

D.R.I.V.E. or Democrat, Republican, Independent Voter Education, is the Teamsters’ political action committee. D.R.I.V.E. is non-partisan and independent from any political party.

D.R.I.V.E.is supported through voluntary contributions from Teamsters members. Such donations are not U.S. Tax Deductible.

The Employer agrees to deduct from the paycheck of all employees covered by this agreement voluntary contributions to D.R.I.V.E. D.R.I.V.E. shall notify the employer of the amounts designated by each contributing employee that are to be deducted from their paycheck on a weekly basis for all weeks worked. The employer shall transmit to D.R.I.V.E. national headquarters on a monthly basis, in one (1) check the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee’s social security number and the amount deducted from that employee’s check.
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The Union agrees to hold the Employer harmless from loss of any judgement of a court of competent jurisdiction and from any order of the Labor Commission or agency of government in connection with or arising out or any deduction made pursuant to this Agreement.

65. Union Representatives
Union representatives may visit work locations where bargaining unit members are performing work provided, however, they shall not interfere with the normal conduct of work or duties of the employees as determined by the City Manager or his or her designee. The Union representative shall first advise the City Manager or his or her designated representative of his or her presence on the premises before contacting any employee covered by this MOU.

Activities such as the soliciting of membership, collection of dues, holding membership meetings, campaigning for office, conducting elections and distributing literature are strictly prohibited during working hours without the prior approval of the City Manager or his or her representative.

Except for the purpose of meeting and conferring for a new MOU, only one on-duty unit member designated as a steward shall be permitted to represent unit members or otherwise engage in activities on behalf of the unit at any time.

In the event the Town believes that the Union representatives are abusing the provisions of this Section, it shall contact the Union in writing to arrange a mutually acceptable time and place to investigate the Town’s complaint and to assure full compliance by the Union representative.

76. Town Communications to Unit Employees concerning Union Rights If the Town chooses to disseminate a communication to unit employees or applicants to be unit employees concerning public employees’ rights to join or support an employee organization, or to refrain from joining or supporting an employee organization, the Town shall meet and confer with the Union concerning the content of communication before dissemination.

If the Town and the Union cannot reach agreement and the Town elects to proceed with its proposed mass communication, the Town must include with its own communication, a communication of reasonable length provided by the Union.

87. Personnel Files
An employee, or on presentation of written authorization from the employee an employee’s representative, shall have specific access to the employee’s personnel file upon request and reasonable convenience of the City Manager’s Office. Documentation in the personnel file relating to the investigation of a possible criminal offense, background information on the employee and letters of reference may be specifically excluded from the inspection and review by the employee and/or the employee’s representative. Information which would be privileged under State law pursuant to the attorney-client privilege or the work product doctrine may also be excluded. Personnel files may only be reviewed in the presence of a designated employee of the City Manager’s Office. The Town will provide employees with copies of their personnel evaluations and warning letters, if any. Upon request, the employee may at his or her expense -195-

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copy those portions of his or her personnel file not specifically excluded from review by this section.

98. Separability
If any section of the MOU should be found invalid, unlawful or unenforceable by reason of any existing or subsequently enacted legislation or by judicial authority, all other articles and sections of this MOU shall remain in full force and effect for the duration of the MOU. In the event of invalidation of any article or section, the Town and the Union agree to meet within 30 days for the purpose of renegotiating said article or section.
109. Maintenance of Benefits
All rights, privileges and terms and conditions of employment in full force and effect prior to this MOU and not in conflict herewith shall become a part hereby and remain until thereby mutually modified by the parties hereto.
110. Sole and Entire Agreement
The parties acknowledge that during the negotiations which resulted in this MOU each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from this area of meeting and conferring, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this MOU. Except as provided below, for the life of this MOU each party voluntarily and unqualifiedly waives the right to, and each agrees that the other shall not be obligated to, meet and confer with respect to any subject or matter referred to or covered by this MOU. 121. No Discrimination
There shall be no discrimination by either Union or Town on any basis prohibited by State or Federal law or on account of any legitimate Union activity. 132. New Work
The Town agrees to meet and confer if required by State statutory or case law concerning the impact of new equipment or machinery on the bargaining unit.

II. COMPENSATION
143. Salary
Salaries for the unit are displayed in Appendix A. Appendix A will be available on the Town’s website.

Effective with the first full pay period in January 20252021, salaries of unit employees shall be increased by 3.752.0%.

Effective with the first full pay period in January 20262022, salaries of unit employees shall be increased by 4.03.0 %
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Effective with the first full pay period in January 20272023, salaries of unit employees shall be increased by 4.03.0%
New employees will be appointed at Step A. With the approval of the City Manager, the Department Head can recommend that candidates be appointed to a position at any step within the range.

Upon the employee’s successful completion of the probationary period, the Department Head shall recommend to the City Manager the advancement of the employee’s salary to Step B. Every 12 months thereafter following a performance evaluation, the Department Head shall make a recommendation regarding the employee’s advancement to the next step in the salary range.

In recognition of an exemplary performance evaluation, a Department Head can recommend that an employee’s salary be adjusted to the next step in the range at any time.

If a vacancy occurs in the Public Works Superintendent classification, employees in the classification of Public Works Supervisor shall have the opportunity to compete in an internal promotional examination for the position prior to the Town opening recruitment to the outside. 154. On-Call Vehicle
Employees who respond to a call will pick up the marked utility truck at the Municipal Services Center.

The Town reserves its right to assign equipment and vehicles.

Employees who are assigned on-call shifts for weekends and holidays, at the employee’s discretion, may take home a Town utility truck in order to respond to calls. 165. Uniforms
The Town will continue to provide special work clothing as needed and to repair and replace such clothing as needed with the approval of the Department Head, per the department policy. 176. Out-of-Class Pay
Public Works employees assigned the duties of a higher position by the Director or his/her designee shall be eligible for out-of-class pay commencing on a full-day basis immediately on the third day. The assignment must extend a minimum of forty hours for the covering employee to be eligible for out-of-class pay. Assignments shall be based on seniority provided the senior employee’s performance is evaluated as average or above average performance.

Out of class pay shall equal 10% of the employee’s regular hourly rate, not to exceed the maximum of the higher position’s salary range.
187. Incentive pay
Employees who are assigned by the Director to duties where specialized trainings or certifications are mandated to perform the job are eligible to receive premium pay after completing the training/receiving certification as follows:
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Current Program Current Requirements/Incentives
D-1 Required
D-2 Required
D-3 $100 50 per month
D-4 Additional $20075 per month (for a total of $300 per month) Current
Program
Requirements/ Incentives
CW-1 Required
CW-2 Required
CW-3 $100 50 per month
CW-4 Additional $20075 per month (for a total of $300 per month) Current Program Incentives
T-1 $50 per month
T-2 Additional $75 per month
Current Program Incentives
Cross Connection Specialist $300 per month
Note: Maximum of $ 750250 per month incentive pay for the above certifications.

Effective upon the implementation of the new certification pay program the monthly salaries of the Public Works Supervisor and the Assistant Superintendent classifications shall be increased by $100 per month, due to the elimination of the compensation for the D2 and CW2 certificate pays.

Class A/B driver’s licenses
Current employees Requirements/ Incentives
Class B License w/
Tanker Endorsement
$100/month
Class A License w/
Tanker Endorsement
Additional $12550 - total of $225150/month
Future employees Requirements/ Incentives
Class B License w/
Tanker Endorsement
$100/month-Required with 24 months
Class A License w/
Tanker Endorsement
Additional $125 50 - total of $225150/month
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The Town will meet with Local 350, if the Town determines to add the General Contractor or Facilities Department certifications to the minimum qualifications to either of the classifications in the bargaining unit.
198. Emergency Health Crisis
The Town proposes that if follows all appropriate Federal, State, or Local statutes, polices and procedures regarding the declaration of an emergency health crisis.

Any employee with extenuating circumstances may discuss those directly with their Department Head or the City Manager.
2019. Training Time
During the term of this MOU, the Department will meet with Local 350 to discuss the following regarding Continuing Education courses:
 The best way for employees to participate in the CE courses without interruption;  Taking CE courses at home
 Preparing the staff for the employee’s absence during a CE course 2120. Emergency Response
The Director of Public Works, as designated by the City Manager, may authorize compensation up to $500 for 8 hours or less, $750 for 8 hours but less than 12 hours or $1,000 for 12 hours or more when aper day to Public Works Supervisors who, at the request of the Director, provide services on a day when not regularly scheduled to work in response to extreme emergency situations. Whether a situation constitutes an “extreme emergency” and whether compensation is payable is within the exclusive discretion of the City Manager and is not subject to any appeal process.

An employee, at his/her option, may decline the Emergency Response cash payment and receive instead 9 hours of paid time off, which will be added to the employee’s time off bank.

An employee’s time off bank cannot exceed 100 hours (which includes emergency response hours as well as holiday time off hours). If an employee’s time off bank would exceed 100 hours with the deposited hours, the employee must take cash for their emergency response or holiday time off.

III. BENEFITS
221. Health Insurance
Active Employees
The Town’s contribution towards the employee’s medical coverage shall be determined by the coverage level the employee selects. The Town’s contribution shall be as follows:

 Employee only – shall not exceed the Blue Shield Access + Region 1 Health Plan Employee only
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 Employee plus one – shall not exceed the Blue Shield Access + Region 1 Health Plan Employee plus one
 Employee plus 2 or more - shall not exceed the Blue Shield Access + Region 1 Health Plan Family
If, during the term of this MOU, the Blue Shield Access + plan is not available in CalPERS Region 1, then the Town’s medical premium contribution shall be set at the 2nd highest HMO offered in CalPERS Region 1.

Each January 1, during the term of this MOU, the Town’s medical contribution shall increase by up to 15% of the appropriate coverage level of Blue Shield rate. The 15% increase shall be applied to the current Town’s monthly contribution rate. Any increase over 15% would be the responsibility of the employee, to a maximum of $100 per month.

If, during the term of this MOU, the 2nd highest HMO becomes the Town’s medical premium contribution, then future year increases shall be subject to the 15% increase cap as defined above.

Under no circumstances shall the Town’s increased monthly contribution be used to offset the employee’s contribution rate effective on December 1st of the previous year.

In addition, if an employee selects a plan that exceeds the Town’s medical premium contribution, then the employee shall be responsible to pay the amount that exceeds the Town’s medical premium contribution via payroll deductions.

Employees who have alternate coverage such as coverage through a spouse’s employer’s plan (NOT individual coverage) are eligible to receive cash in lieu of medical insurance at the employee’s actual enrollment level (single, employee + 1 or employee + 2 or more).

Employees will be required to show proof of alternate coverage every year during open enrollment. Effective January 1, 2021, employees who have alternate coverage as of December 31, 2020 as described above are eligible to receive cash in lieu of medical insurance in the following amounts:
- Employee only $384.13 per month
- Employee + 1 $768.25 per month
- Employee + 2 or more $998.73 per month
Employees who receive the cash in lieu of medical benefit and who opt out of the program will be treated as employees hired after January 1, 2021 for future cash in lieu benefits.

Employees who enroll in the cash in lieu of medical benefit after January 1, 2021, who have alternate coverage as described above, are eligible to receive a contribution to the employee’s deferred compensation account in the amount of three hundred dollars ($300) per month in lieu of receiving medical benefits.

An employee who retires after January 1, 2014, and who is eligible for retiree medical contributions, shall continue to be subject to the 15% maximum increase described above. -200-

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Any amounts over the 15% cap that occurred while said employee was still active shall continue to be paid by the employee in retirement, to a maximum of $100 per month.

PERS Contribution
In accordance with Resolution 02-01, the Town’s contribution to PERS is set at an amount not less than the amount required under Section 22825 of the Public Employee’s Medical and Hospital Care Act. PERS will determine the contribution amount annually.

Retirees
The Town does not provide post-retirement health benefits to employees hired after January 1, 2002.
232. Employee Wellness
Employees can be reimbursed up to $500300 per year for the following qualifying wellness activities:
- Gym fees
- Nutritional counseling
- Lifestyle assessments
- Chiropractic services
- Acupuncture service
- Smoking cessation programs
- Weight loss programs
- Town approved Parks and Recreation sponsored fitness programs - Equipment (home gym equipment): Bowflex, Peloton, etc.; equipment for various classes: yoga mat, boxing gloves, etc. No clothing isor shoes are eligible for reimbursement.
243. Retiree Health Savings Accounts
Employees hired after January 1, 2002 are eligible to receive a contribution to a Retiree Health Savings Account of $75 per month. Employees must meet vesting requirements of the plan as follows:
- Year 1 20%
- Year 2 40%
- Year 3 60%
- Year 4 80%
- Year 5 100%
Beginning January 1, 2021, employees who are receiving a contribution to the Retiree Health Savings Account with more than 60 months of service will receive $150 per month. Current employees who qualify for the $150 contribution shall begin receiving that monthly amount upon adoption of this MOU. No retroactive payments shall be made.

Employees hired on or after January 1, 2021 shall receive a monthly contribution to a Retiree Health Savings Account in the following amounts:

Months of Service Monthly Contribution
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Hire to 60 months $75 per month
61 months & thereafter $150 per month
Employees must meet vesting requirements of the plan as follows:

Completion of Year 5 100% vested
Effective the first full pay period in January 2025, employees hired on or after January 1, 2002 shall receive a monthly contribution to a Retiree Health Savings Account in accordance with the following:

Months of Service Monthly Contribution
Hire to 60 months 2.0% of base monthly salary
61 months – 239 months 3.0% of base monthly salary
240 months thereafter 4.0% of base monthly salary
Employees must meet vesting requirements of the plan as follows:

Completion of:

Year 5 100% vested
254. Post-Retirement Payments
To compensate those retirees and their survivors who were promised health benefits upon retirement and those employees hired prior to January 1, 2002 who bargained in good faith to eliminate the post-retirement health benefit in favor of implementing an improved retirement pension plan (PERS 3% @ 60), the Town shall provide post-retirement payments in lieu of health insurance as set forth below.

The actual amount of the payments will be equal to the retired employee’s actual cost for health coverage up to a maximum of the one-party, two-party or three-party Public Employees Retirement System (PERS) basic rate for the Blue Shield HMO health plan, subject to the conditions listed in Section 21 – Active Employees above.

Employees must be enrolled in a PERS health plan at the time of retirement to be eligible for this benefit. Former employees who enroll in PERS health plans during an open enrollment period after separation from the Town’s service are not eligible for this benefit.

Payments will continue until the retiree or survivor is no longer enrolled in the PERS health plan with the following exception: Retirees and survivors who were receiving retirement health benefits prior to January 1, 2002 will be permitted to select a health plan outside of PERS health plans if PERS rules do not permit their continued participation in the health plans.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for the post-retirement payments.

Retirees are responsible for keeping the Town notified of their current address. If payments are discontinued because no forwarding address is available, the Town will not be liable to provide -202-

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retroactive payments. The Town will resume payments upon notification of an updated address if the former employee is otherwise qualified to receive the payments. 265. Disability Income Protection
The Town will provide Long Term Disability (LTD) Insurance which will provide 66 2/3% of salary to a maximum of $6,000 monthly and which will begin sixty calendar days after the first day of disability. The Town shall pay the entire premium for LTD. 276. Dental and Orthodontia Plan
Employees shall be included in the Town’s self-funded dental and orthodontia plans. The benefit maximum is $2,5002,000 per person per year. Plan year is from January 1 – December 31. 287. Vision Plan
Employees shall be included in the Town’s self-funded vision plan. The maximum benefit shall be $500350 per person per year. Plan year is from January 1 – December 31. 298. Life Insurance
The Town shall provide a group life insurance policy in the amount of $100,000 of coverage to each probationary and regular employee during the term of this MOU. 3029. Retirement
Employees hired prior to 7/1/2012:

Employees receive the 3% @ 60 retirement formula with a single highest year method of calculation. Employees will pay the Employee’s Contribution (8% of salary) to PERS, plus 1% of the employer’s cost.

Employees hired between 7/1/12 and 12/31/12:

Employees hired during this period receive the 2% @ 60 retirement formula with a three-year final average method of calculation. Employees will pay the Employee’s Contribution (7% of salary) to PERS.

Employees hired 1/1/13 or after:

If an employee is considered a “classic member” with PERS, the employee will receive the retirement formula in place as of 12/31/12.

If an employee is considered a “new member” with PERS, the employee will receive the PEPRA mandated retirement plan of 2% @ 62 with a three-year final average method of calculation.

Employees will pay the Employee’s Contribution of 50% of the normal cost, as determined by PERS.

Employees’ PERS contributions, although designated as employee contributions, are being paid by the Town in lieu of contributions by the employee in accordance with §414(h)(2) of the Internal Revenue Code.
310. Military Leave
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Military Leave shall be granted in accordance with the provisions of State and Federal law. All employees entitled to military leave shall give the City Manager an opportunity within the limits of military regulations to determine when such leave shall be taken. 321. Leave of Absence Without Pay
The City Manager may, at his or her discretion, grant a regular or probationary employee Leave of Absence without pay or seniority for a period not to exceed six months for medical reasons, and three months for other types of leaves. No such leave shall be granted except upon written request of the employee setting forth the reason for the request, and the approval will be in writing.

Upon expiration of an approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted.

Failure on the part of an employee on leave to report promptly at its expiration or within a reasonable time after receiving notice to return to duty shall be cause for discharge. The depositing in the United States mail of a first-class letter postage paid and addressed to the employee’s last known place of address shall be reasonable notice.
332. Jury Duty
Employees who are called or required to serve as trial jurors shall be entitled to be absent from their duties with the Town during the period of such service or while necessarily being present in court as a result of such call. Employees shall be paid their full salary for such duty. 343. Sick Leave
Sick leave with pay shall be granted to all probationary and regular employees who are assigned to allocated positions. An employee may only use sick leave in cases of actual sickness, medical/dental/vision appointments or disability.

In order to receive compensation while absent on sick leave, the employee shall notify the Superintendent or designee prior to or within four hours after the time set for beginning his or her daily duties, or as may be specified by the Department Head.

When absence is for more than three (3) workdays, the employee may be required to file a physician’s certificate or a personal affidavit with the City Manager’s Office, excusing the employee from work.

Sick leave shall be earned by full-time employees at the rate of 3.69 hours per bi-weekly pay period. This accrual shall be prorated for part-time personnel in allocated positions. There is no maximum accrual limit for sick leave.

Sick leave will not be accrued while an employee is on non-industrial disability or unpaid leave.

No person shall be entitled to sick leave with pay while absent from duty on account of any of the following causes:
 Sickness or disability sustained while on leave of absence, other than his or her regular vacation or holiday;
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 Disability received as a result of engaging in a gainful occupation outside Town employ.

Not more than 56 hours of sick leave each calendar year may be taken in case an employee’s presence is required elsewhere because of sickness or disability of members of his or her immediate family. The immediate family shall consist of the spouse, children, parents, siblings, domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent. In each such case the City Manager shall grant such sick leave only when, in his or her opinion, the relationship of the sick or disabled person to the employee warrants such use of sick leave.

Employees who have exhausted said 56 hours of family sick leave may be permitted to use remaining accrued sick days with the approval of the Director, provided they have used their balance of Compensatory Time Off first.

Annual Sick Leave Payouts
All employees in this bargaining unit have the ability to cash out up to 25% of their unused annual sick leave accrual for the previous calendar year. Payment will be made generally in the first full pay period in January. Employees must have a minimum sick leave balance of 300 hours in order to eligible for the annual sick leave payout. The Annual Sick Leave Payout provision will be suspended until the City Council reinstates it for Unrepresented employees.

Unused Sick Leave Upon Retirement
Any full-time employee in the Unit with ten years of continuous service at the time of retirement can choose to be paid in cash for accumulated sick leave, up to the equivalent of one month’s pay upon separation from service with the Town of Hillsborough.

Retirement, for the purpose of this rule, shall be construed to mean the termination of employment in order to accept service or disability retirement under PERS.

All remaining sick leave shall be converted to service credit under PERS.

Employees terminated as the result of disciplinary action or forced to resign as a result of a criminal conviction or plea of no contest are not eligible for this benefit. 354. Death or Critical Illness Leave
With the consent of the Department Head or his/her designee, a regular employee may be allowed to be absent from the duties of his or her position and to receive full compensation during such absence for a period not to exceed five (5) scheduled shifts in the case of death or of critical illness where death appears imminent of the employee’s spouse, children, parents, siblings, in-laws, grandparents, domestic partner or other individuals whose relationship to the employee is that of a dependent or near dependent within 120 calendar days of the event. Where such a death or critical illness has occurred, the employee shall furnish satisfactory evidence of such death or critical illness to his or her Department Head or designee. The Department Head may allow an -205-

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employee to take accrued vacation, floating holiday, non-compensated time off or CTO in order to provide additional bereavement time off.
365. Industrial Disability Leave
Any regular employee of the Town who has suffered any disability arising out of or in the course of employment as defined by the Workers’ Compensation laws of the State of California may be entitled to disability leave while disabled without loss of compensation for the period of such disability to a maximum of ninety (90) days. Such disability with pay may be extended at the discretion the City Manager not to exceed one year.

The Town may call for medical examinations as frequently as would be reasonably necessary given the nature and extent of the injury and the degree of change of condition within a given period of time but shall not schedule examinations so frequently as to constitute harassment of the employee.

The Town may terminate industrial disability leave if a disability retirement is initiated. 376. Family Medical Leave
The Town will grant Family Medical Leave in accordance with the requirements of applicable State and Federal laws in effect at the time the leave is granted. No greater or lesser leave benefits will be granted than those set forth in such State or Federal laws. In certain situations, the Federal law requires that provisions of State law apply. Employees will be eligible for the most liberal benefits available under either law.

Family Medical Leave is unpaid. In a case where an employee is taking leave for his or her own health condition or to take care of a spouse, child or parent who has a serious health condition, the employee may elect, or the Town may require the employee, to substitute any of the employee’s vacation, holiday, CTO or sick leave for an unpaid period of leave.

In a case where an employee is taking leave for birth or placement of a child, the employee may elect, or the Town may require the employee, to substitute any of the employee’s vacation leave for an unpaid period of leave.
387. Vacation
The purpose of vacation leave is to enable each eligible employee annually to return to his or her work refreshed. All regular and probationary employees shall be entitled to vacation leave with pay.

The progressive vacation accrual schedule is as follows:

Years of Service
Completed
Bi-Weekly
Accrual Rate
Hours per
Year
Less than 4 3.08 80
4-9 4.62 120
10 4.92 128
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11 5.23 136
12 5.54 144
13 5.85 152
14-15 6.15 160
16 6.46 168
17 6.77 176
18 7.08 184
19 7.38 192
20 7.69 200
This schedule shall be prorated for part-time employees in allocated positions.

If the requirements of the service are such that an employee is not allowed to take part or all of his or her accrued vacation in a particular calendar year, such vacation either shall be taken during the following calendar year or paid for at the discretion of the employee.

Vacation may be taken in increments as determined by the employee. Employees will give 48 hours’ notice of intent to take 3 days or less of vacation, and seven (7) days’ notice of intent to take 4 days or more of vacation to their Department Head. The Department Head shall approve the scheduling of the vacation prior to the employee taking the time off. In exigent circumstances, an employee can request 4 days or more of vacation with less than 7 days’ notice at the discretion and approval of the Department Head.

The maximum accumulation of vacation leave may not exceed 2 times annual accrual. Once the maximum vacation accumulation is reached vacation leave will cease to accrue.

In the event one or more municipal holidays fall within a vacation leave, such holidays shall not be charged as vacation leave.

Employees who terminate employment shall be paid in a lump sum for all accrued vacation leave earned prior to the effective date of termination.

An employee who is placed on a re-employment list due to their layoff from Town employment, and who is reinstated to Town employment, shall have his/her years of service with the Town prior to the layoff used when determining years of service for vacation accrual. 398. Vacation Buy-Back
An employee in this unit may elect to convert vacation hours to cash. The requirements to participate in the program are:

A. Must have used 40 hours of vacation in the current year B. Must have a balance of 300 hours as of December 1 of the current year Election forms must be filled out by each member of the unit between December 1 and 10 of each year. An employee may elect between 40 and 80 hours to cash out. Vacation hours cashed out applies only to hours earned in the year following the election. Payment of vacation hours elected -207-

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for cash out will be made on the first pay period in August of the year following the election.

Vacation that is used is understood to be on a first-earned basis. Elections are irrevocable. 4039. Holidays
A holiday equals eight (8) hours leave. Thus employees shall receive a total of 96 hours of leave for twelve eight-hour holidays.

If a holiday falls on an employee’s scheduled day off, the employee will have the option of receiving eight hours compensatory time off or eight hours of compensation, paid at the regular hourly rate.

The recognized holidays to be observed by the Town for unit employees are as follows:

Date Holiday
January First New Year’s Day
Third Monday in January Martin Luther King’s birthday
Third Monday in February Presidents’ Day
Last Monday in May Memorial Day
July Fourth Independence Day
First Monday in September Labor Day
November Eleventh Veteran’s Day
Fourth Thursday in November Thanksgiving Holiday
Friday after Thanksgiving Friday after Thanksgiving
December Twenty-fourth Christmas Eve
December Twenty-fifth Christmas Day
Additionally, employees will accrue eight hours of floating holiday leave on January 1st of each year. If a new employee’s hire date is prior to June 30, that employee will receive eight hours of floating holiday. If a new employee’s hire date is July 1 or later, that employee will receive no floating holiday hours for that calendar year. Thereafter, accrual shall be consistent with continuing employees.

Effective January 1, 2025, the recognized holidays to be observed by the Town for unit employees are as follows:

Date Holiday
January First New Year’s Day
Third Monday in January Martin Luther King’s birthday
Third Monday in February Presidents’ Day
Last Monday in May Memorial Day
July Fourth Independence Day
First Monday in September Labor Day
November Eleventh Veteran’s Day
Fourth Thursday in November Thanksgiving Holiday
Friday after Thanksgiving Friday after Thanksgiving
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
December Twenty-fourth Christmas Eve
December Twenty-fifth Christmas Day
Floating Holiday (8 hours)
Floating Holiday (8 hours)
Day of Reflection (8 hours)
Employees will accrue sixteen (16) hours of floating holiday leave and eight (8) hours of leave for a Day of Reflection on January 1st of each year. If a new employee’s hire date is prior to June 30, that employee’s will receive twenty-four (24) hours of floating holiday/Day of Reflection. If the employee’s hire date is July 1 or later that employee will receive twelve (12) hours of floating holiday/Day of Reflection for that calendar year. Thereafter, accrual shall be consistent with continuing employees. Floating Holiday/Day of Reflection leave may not be carried over into the next calendar year.

Day of Reflection is in recognition of holidays of individual and community importance, including Juneteenth, Cesar Chavez Day, Indigenous Peoples’ Day.

Every day appointed by the President of the United States or the Governor of this State for a public fast, Thanksgiving or holiday and every day pronounced as a National Day of Mourning is a holiday when also approved by the City Council.

Regular and probationary employees shall not be required to be on duty on holidays unless the employee’s services are required in the interests of the public health, safety or general welfare.

When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, the preceding Friday shall be observed.

Floating holiday hours may be taken in any increment with the advance approval of the Department Head.
410. Paid Administrative Leave
Beginning January 1, 2017, Administrative Leave with pay shall be granted to all regular employees in this unit who are assigned to allocated positions. Employees shall be provided with 40 hours of Administrative Leave on January 1st of each year. Administrative Leave must be taken in the year that it is earned and cannot be carried over from one year to the next. 421. Tuition Reimbursement
College Reimbursement
Subject to budget constraints, the Town will reimburse an employee’s tuition dependent on the following conditions:

1. Employees should attain approval for reimbursement from their Department Head prior to the beginning of the semester.

2. Tuition reimbursement will be based on local community college or California State University fee structures and limited to $1,500 per employee per calendar year. The City Manager may approve additional reimbursement for expenses when an employee participates in an accelerated college degree program.
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023

3. Employees must attain a grade of C or better in order to be eligible for reimbursement as follows:

Grade % of Reimbursement
A 100%
B 80%
C 50%

4. Reimbursement will be approved after the employee submits proof of payment and receives his or her grade.

Licenses and Certifications
The Town will reimburse employees for their costs to take approved examinations for professional licenses or certifications.
432. Mileage Reimbursement
Employees responding to a call can request reimbursement for mileage to work at the current federal approved rate, and bridge tolls, if applicable.

Employees are eligible for mileage reimbursement when driving their personal vehicle to Town approved trainings.

IV. EMPLOYMENT
443. Notification of Vacant Positions
All openings for full-time or part-time allocated positions in this unit shall be sent out to all Town employees via email.
454. Probation
All unit employees shall serve a probationary period of 12 months. Upon successful completion of the probationary period, an employee shall attain a regular employment status.

Anyone serving in a probationary period may be rejected at any time without cause and without notice. Rejection during a probationary period will not be subject to the grievance procedure. If serving an initial probation with the Town, rejection during a probationary period will result in termination.

If an employee is rejected during probation as a result of a promotion, they will have bumping rights to their former classification where they attained regular status. 465. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves. Failure on the part of an employee, absent without authorized leave, to return to duty within 24 hours after receiving notice to return shall be cause for immediate discharge and such employee automatically waives all rights under the personnel ordinance and -210-

Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
these rules. The depositing in the United States mail of a first-class letter postage paid, addressed to the employee’s last known place of address, shall be reasonable notice. 476. Hours of Work
Subject to the needs of Town, employees may be assigned to one of the following working shifts:
 5 days per week, 10 days per pay period
 9 days per pay period
Variations of schedules will be permitted by agreement between the Department Head and employees.

The Town will notice the Union and confer with the Union prior to making any permanent work schedule changes. The Town will give employees a minimum of 60 calendar days’ notice prior to the implementation of the schedule change.
487. Discipline
The Town may discharge, suspend, demote, reduce salary or otherwise discipline any employee for cause including, but not limited to:
 Dishonesty
 Insubordination
 Use, possession or being under the influence of alcohol or drugs  Incompetence
 Willful negligence
 Inability to meet minimum licensing or bonding requirements of the employee’s regularly assigned position
 Fighting
 Discourteous treatment of coworkers or residents
 Unexcused absenteeism
 Tardiness when reporting to work or returning from breaks  Misuse of Town property
 Failure to perform work as required or
 Failure to comply with or violation of the Town’s reasonable rules regarding safety conduct and operations
 Willful damage to public property
 The commitment or conviction of any criminal act that would directly affect work duties Any regular employee who has been subject to such discipline shall be notified of the reasons for such action in writing with a copy of such letter furnished to the Union. A letter sent by first-class mail to the employee’s last known address shall be considered adequate notice.

A progressive discipline process shall be followed, except when the safety and well-being of the employee, co-workers, members of the public or public property is endangered.

Pre-Disciplinary Hearings
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
No regular employee shall be demoted, suspended or discharged for a disciplinary purpose except in accordance with the provisions of this section; provided, however, that this section shall not apply to suspensions of less than 40 hours.

Whenever the Town proposes to demote, suspend or discharge a regular employee in a case in which this section is applicable, the Town shall provide the employee with written notice of the proposed action. The notice shall state the proposed disciplinary action and the reasons for it. The notice shall also include a copy of the charges and materials upon which the proposed action is based.

The employee shall have the right to present an oral or written response to the proposed action.

Thereafter the Town shall determine, based upon such response and the materials upon which the proposed action was based, whether to impose the action initially proposed, a lesser action or to take no action. The Town shall promptly notify the employee in writing of such decision.

Employees who decide to appeal the decision of the pre-disciplinary hearing shall file a grievance at Step 2 Department level.

49. Letters of Reprimand
A written reprimand may be removed from an employee’s personnel file 3648 months after it is placed there, provided that the employee does not receive a written reprimand for a similar incident or offense during that 3648 month period. If the employee receives a written reprimand for a similar incident or offense with the 3648 month period, the initial written reprimand shall remain in the employee’s file for the duration of time the succeeding reprimand stays in the file. 5048. Grievance and Arbitration Procedure
Grievances subject to arbitration shall be only such grievances which involve the interpretation, application, or compliance with the provisions of this Memorandum or Departmental policies, or a dispute or disagreement concerning whether or not discipline, including discharge, was for just cause.

Step I - Informal Level
An employee who has a grievance shall first discuss the grievance on an informal basis with his or her supervisor within fifteen (15) calendar days of the alleged violation of the Memorandum or within fifteen (15) calendar days of the time the grievant knew of or could have reasonably discovered such action or occurrence. Within fourteen (14) calendar days of receipt of the grievance, the supervisor shall investigate the matter, if necessary. Every effort will be made by the parties to resolve the grievance at this level and may include a conference among the Union, supervisor or other administrative staff. The supervisor will provide the employee with a written response to the grievance.

Grievances by the Town shall be discussed with the Union within fifteen (15) calendar days of the alleged violation of the Memorandum. If the parties are not able to resolve the issue, within fifteen (15) days after the last communication with the Union the Town may submit a request for arbitration pursuant to Step 4.
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
Step 2 – Department Level
If the grievance is not resolved at Step 1 or involves the termination or suspension of more than 40 hours and has not been resolved at the Pre-Disciplinary Hearing, the employee may submit the grievance in writing to the Department Head within fifteen (15) calendar days after the presentation of the supervisor’s reply. The written grievance shall:
• Fully describe the grievance and how the grievant was adversely affected • Set forth the section(s) of this Memorandum allegedly violated • Indicate the date(s) of the incident grieved
• Specify the remedy or solution to the grievance sought It shall be the responsibility of the employee to submit a copy of the grievance to the Union. The Department Head or his/her designee, if necessary, may investigate the matter. The Department Head or his/her designee shall also schedule a meeting with the grievant and shall provide a written response to the grievant after holding the meeting with the grievant. The meeting and provision of the written response shall occur within fifteen (15) calendar days after receipt of the grievance.

Whenever the immediate supervisor and the Department Head is one and the same person, this step in the procedure shall be omitted.

Step 4 – Mediation
At the Union’s request, the matter may be referred to mediation. The Town and the Union may mutually agree to the selection of a mediator or a request may be made to the State Mediation and Conciliation Service for the assistance of a mediator to evaluate and assist the parties to reach resolution.

Step 43 - City Manager Review
If the grievance is not resolved at Step 2 a written grievance may be filed with the City Manager or his or her designee within fifteen (15) business days after the presentation of the Department Head’s reply.

The City Manager or his/her designee will review the written grievance and may, at his/her discretion, meet with the employee to discuss the grievance. The City Manager shall reply in writing to the grievance within fifteen (15) calendar days of the meeting with the employee or, if no meeting occurs, within his/her receipt of the Step 2 grievance; provided, however, that in the event that the City Manager is away from the Town during this period, his/her time to reply shall be extended by and equal number of days that he/she is absent to a maximum of twenty (20) days.

Step 54 - Arbitration
If the grievance is unresolved at Step 3 or if Step 4 is utilized, either the Union or the Town may, within fifteen (15) calendar days, request in writing arbitration and the parties shall attempt to mutually agree upon an arbitrator. In the event the parties are unable to agree upon an arbitrator, after thirty (30) days either party may request a list of sevennine (79) names from the California Conciliation and Mediation Service. Each party shall alternately strike one (1) name until an arbitrator is selected. The right to strike the first name shall be determined by lot and the parties -213-

Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
shall alternately strike one (1) name from the list until only one (1) name remains. The remaining panel member shall be the arbitrator.

The arbitrator shall conduct a hearing at which he/she will hear evidence and render a decision on the issue or issues submitted to him/her. If the parties cannot agree on the issue to submit, the arbitrator shall determine the issues.

The Town and the Union agree that the jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provisions or provision of this Memorandum at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of this Memorandum or impose any limitations or obligations not specifically provided for under the terms of this Memorandum. The arbitrator shall be without power or authority to make any decision that requires the Town to do an act prohibited by law.

After a hearing and after both parties have had an opportunity to make written arguments, the arbitrator shall submit in writing to all parties his/her finding and recommended award. The award of the arbitrator shall be final and binding on both parties and on any affected bargaining unit employee.

Either party may elect to have representation by legal counsel for the arbitration hearing.

Arbitration Costs
All expenses for the arbitration shall be paid equally by the Town and the Union, except that each party shall be responsible for the expenses of its own attorney, witnesses and transcripts.

Timeliness
All grievances must be presented at the proper steps in accordance with the time limitations herein and unless such grievances are so presented, the right to file such grievances shall be waived. Any grievance not appealed to the next succeeding step within the time limits specified will be considered withdrawn and not eligible for further appeal. If the Town fails to respond within the prescribed time limits of any one step, the last Town response shall be deemed to be the Town’s position for the next succeeding steps. Time limits can be extended by mutual consent, however that any mutual agreements to extend deadlines are not precedential. 5149. No-Strike Clause
Both parties of this memorandum recognize the obligation of the Union and of the employees to refrain from engaging in any strike or slowdown of work. In fulfillment of that obligation, the parties recognize that there will be no strike, sympathy strike, slowdown, sick-ins, curtailment of work or interference with the Town’s operations on the part of either the Union or employees during the term of this Memorandum or anytime this Memorandum is continued by the express mutual consent of the parties. It is recognized that violation of this clause will result in discipline up to and including terminations.
5250. Safety
Observance of Safety Rules and Regulations
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
Both the Town and the Union shall expend a reasonable effort to ensure that work is performed with a maximum degree of safety, consistent with the requirement to conduct efficient operations.

Each employee covered by this MOU agrees to comply with all safety rules and regulations in effect and any subsequent rules and regulations that may be adopted. Employees further agree they will report all accidents and safety hazards to the appropriate management official immediately. Any employee having knowledge of or who is a witness to an accident shall give full and truthful testimony as to same.

Safety Program
The Town has established a Safety and Risk Management Committee. The Department may appoint up to one (1) employee representatives on the Committee. 531. Layoff
Whenever, in the judgment of the Town, it becomes necessary to abolish positions, the Town may abolish any position included in the bargaining unit and the employee holding such position may be laid off subject to any bumping rights he or she may have. The Town may lay off employees due to lack of work or funds.

In a reduction in force, employees with the least length of service in the classification shall be laid off first provided that, in the determination of the City Manager, the skill and qualifications of the remaining employees are equal to that of the laid off employee. Employees to be laid off from a classification shall have a right to bump employees in a lower classification in accordance with seniority with the Town provided that, in the determination of the City Manager, they possess superior skill and qualifications.

Employees affected by a layoff shall retain employment rights in a position previously held in a lower classification and shall revert back to said position with full seniority rights and be integrated with the seniority ranking of employees in the lower classification. 542. Reinstatement
A regular employee who has resigned in good standing may be reinstated to a vacant position of the same classification as the previous position within a period of two (2) years from the effective date of resignation. Reinstatement will be made at the salary step determined by the City Manager.

A reinstated employee will not be entitled to prior service credit in calculating Town benefits.

V. TERM
This MOU shall be in full force and effect until midnight, December 31, 20272023.

The Union shall notify the Town of its intent to open the MOU to negotiate a successor MOU prior to submit its written initial proposal for a new MOU to the Town by SeptemberAugust 1, 20272023. The Town shall provide it’s availability to meetmake a written counterproposal within 30 days of receipt of the Union’s requestinitial proposal.

Town of Hillsborough Teamsters Local 350, IBT
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
_____________________________ ______________________________ Doug Davis, City Manager John Bouchard, Secretary Treasurer

_____________________________ ______________________________ Dated Dated
Appendix A – Salary Schedule – Effective January 2021
Jan-21
Public Works
Biweekly

3,993

4,193

4,403

4,623

4,854
Supervisor Monthly

8,652

9,085

9,540

10,017

10,517
Annually

103,818

109,018

114,478

120,198

126,204
Public Works
Asst.

Biweekly

4,405

4,625

4,856

5,099

5,354
Superintendent Monthly

9,544

10,021

10,521

11,048

11,600
Annually

114,530

120,250

126,256

132,574

139,204

Jan-22
Public Works
Biweekly

4,113

4,319

4,535

4,762

5,000
Supervisor Monthly

8,912

9,358

9,826

10,318

10,833
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Memorandum of Understanding
Public Works Supervisors Unit 2021-2023
Annually

106,938

112,294

117,910

123,812

130,000
Public Works
Asst.

Biweekly
4,537

4,764

5,002

5,252

5,515
Superintendent Monthly

9,830

10,322

10,838

11,379

11,949
Annually

117,962

123,864

130,052

136,552

143,390

Jan-23
Public Works
Biweekly

4,237

4,449

4,671

4,905

5,150
Supervisor Monthly

9,180

9,640

10,121

10,628

11,158
Annually

110,162

115,674

121,446

127,530

133,900
Public Works
Asst.

Biweekly
4,673

4,907

5,152

5,410

5,681
Superintendent Monthly

10,125

10,632

11,163

11,722

12,309
Annually

121,498

127,582

133,952

140,660

147,706

-217-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
9 CONSENT CALENDAR

CITY COUNCIL MEETING
JANUARY 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF HILLSBOROUGH AND THE TEAMSTERS LOCAL NO. 350, I.B.T. – PUBLIC WORKS SUPERVISORS UNIT EMPLOYEES REGARDING THE 2024-25 CLASSIFICATION

AND COMPENSATION STUDY
SUMMARY: The Town has completed negotiations for a successor Memorandum of Understanding (MOU) with the Public Works Supervisor Unit, represented by the Teamsters Local No. 350 union, the result of this includes a side letter agreement regarding the on-going classification and compensation study, as summarized below:

Within 90 days of completion of the Classification and Compensation Study (Gallagher), representatives for the Town of Hillsborough will meet with the representatives of Teamsters Local 350 to discuss the findings of the Classification and Compensation Study. During this meeting(s) the parties will discuss modifications to current classifications and proposed new classifications (if any).

Within 120 days of the completion of the Classification and Compensation Study (Gallagher), representatives for the Town of Hillsborough will meet and confer with the representatives of Teamsters Local 350 regarding the results of the compensation portion of the Classification and Compensation Study.

FISCAL IMPACT: There is no fiscal impact as the result of executing this resolution.

ENVIRONMENTAL ISSUES: The City Council’s adoption of the resolution is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15378 as it constitutes an organizational or administrative activity of the Town that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS: Resolution
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute a side letter to the Memorandum of Understanding between the Town of Hillsborough and the Teamsters Local No. 350 I.B.T. regarding the 2024-25 Classification and Compensation Study. -219-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A SIDE

LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF HILLSBOROUGH AND THE TEAMSTERS LOCAL NO. 350, I.B.T. – PUBLIC WORKS SUPERVISORS UNIT EMPLOYEES REGARDING THE 2024-25 CLASSIFICATION AND COMPENSATION STUDY PURSUANT TO CEQA GUIDELINE 15378 WHEREAS, the Town of Hillsborough (“Town”) has recognized Teamsters Local No. 350 I.B.T. (Union) as the representative for employees in the Public Works Supervisors unit; and
WHEREAS, the Town has completed bargaining in good faith with the Union resulting in a three-year Memorandum of Understanding, which outlines salary and benefit changes; and
WHEREAS, an agreement (Exhibit A) regarding the ongoing classification and compensation study was reached, which includes:

1. Within 90 days of completion of the Classification and Compensation Study (Gallagher), representatives for the Town of Hillsborough will meet with the representatives of Teamsters Local 350 to discuss the findings of the Classification and Compensation Study. During this meeting(s) the parties will discuss modifications to current classifications and proposed new classifications (if any).

2. Within 120 days of the completion of the Classification and Compensation Study (Gallagher), representatives for the Town of Hillsborough will meet and confer with the representatives of Teamsters Local 350 regarding the results of the compensation portion of the Classification and Compensation Study.

NOW, THEREFORE BE IT RESOLVED that the City Council of the Town of Hillsborough does hereby approve and authorize the City Manager to execute a side letter to the Memorandum of Understanding between the Town and Teamsters Local No. 350 I.B.T. regarding the 2024-25 Classification and Compensation Study.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of January 2025, by the following vote of the members thereof:
-220-
2 AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-221-
Side Letter of Agreement
Regarding 2024/25 Classification and Compensation Study between
Town of Hillsborough
And
Teamsters Union Local No. 350, I.B.T.

January 1, 2025
Within 90 days of completion of the Classification and Compensation Study (Gallagher) representatives for the Town of Hillsborough will meet with the representatives of Teamsters Local 350 to discuss the finding of the Classification and Compensation Study. During this meeting(s) the parities will discuss
• modifications to current classifications
• proposed new classifications (if any)
Within 120 days of the completion of the Classification and Compensation Study (Gallagher) representatives for the Town of Hillsborough will meet and confer with the representatives of Teamsters Local 350 regarding the results of the compensation portion of the Classification and Compensation Study.

Town of Hillsborough Teamsters Local 350, IBT
_____________________________ ______________________________ Doug Davis, City Manager John Bouchard, Secretary Treasurer _____________________________ ______________________________ Dated Dated
-222-

EXHIBIT A

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
10 CONSENT CALENDAR

CITY COUNCIL MEETING
JANUARY 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION ADOPTING THE 2025 SALARY SCHEDULE FOR THE TOWN

OF HILLSBOROUGH
SUMMARY: This resolution memorializes changes to the salary schedule due to contractual obligations and cost of living increases approved by the City Council. California Public Employees Retirement System requires the pay schedule be adopted at a public meeting of the governing body.

FISCAL IMPACT: There is no fiscal impact associated with the adoption of this resolution.

ENVIRONMENTAL ISSUES: The City Council’s adoption of the resolution is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15378 as it constitutes an organizational or administrative activity of the Town that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS: Resolution and Exhibit A Salary Schedule
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution adopting the 2025 Salary Schedule for the Town of Hillsborough.
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

ADOPTING THE SALARY SCHEDULE FOR THE TOWN OF HILLSBOROUGH PURSUANT TO CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) has established compensation rates for all positions in the Town; and
WHEREAS, California Public Employees Retirement System requires a pay schedule be adopted by the governing body of the agency at a public meeting; and
WHEREAS, the Town desires to meet the requirements of the Public Employees Retirement System; and
WHEREAS, the salary schedule (attached hereto as “Exhibit A”) includes contractually obligated changes as well as changes approved by the City Council.

NOW, THEREFORE BE IT RESOLVED that the City Council of the Town of Hillsborough adopts the Salary Schedule with changes for the positions noted effective the first pay period of January 2025.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of January 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-224-
Town of Hillsborough - Full-Time Salary Schedule FY 2024-25 Resolution 25-City Manager: N/AUnrepresented: 4.2% COLA effective 01/08/2024 Public Works & Clerical (PW&C): 3.75% COLA effective 01/10/2025Public Works Supervisors: 5% COLA effective 01/10/2025Police Officers Association (POA): 4.2% COLA effective 01/01/2024Unrepresented Resolution 24-03
Unrepresented Job Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Accountant Non-Exempt 4,067 4,270 4,484 4,708 4,943 8,811 9,252 9,715 10,200 10,711 105,737 111,024 116,576 122,404 128,524 Administrative Services Manager Exempt 5,563 5,841 6,133 6,440 6,761 12,053 12,655 13,288 13,953 14,650 144,631 151,863 159,456 167,428 175,800 Assistant City Manager Exempt 7,832 8,223 8,635 9,066 9,521 16,969 17,817 18,709 19,644 20,627 203,623 213,810 224,511 235,727 247,527Assistant Director of Building & Planning Exempt 6,560 6,889 7,234 7,595 7,974 14,214 14,926 15,673 16,456 17,278 170,571 179,105 188,073 197,474 207,335Assistant Director of Finance Exempt 5,628 5,909 6,205 6,516 6,842 12,193 12,803 13,445 14,117 14,823 146,324 153,639 161,333 169,406 177,886 Assistant Engineer I Non-Exempt 3,729 3,916 4,112 4,317 4,533 8,081 8,484 8,909 9,354 9,821 96,962 101,812 106,905 112,242 117,850 Assistant Engineer II Non-Exempt 4,112 4,317 4,533 4,760 4,997 8,909 9,354 9,821 10,313 10,828 106,905 112,242 117,850 123,756 129,933 Assistant Planner Non-Exempt 3,824 4,015 4,216 4,426 4,648 8,286 8,699 9,134 9,591 10,071 99,428 104,385 109,614 115,087 120,854Associate Engineer Exempt 4,861 5,104 5,359 5,627 5,908 10,533 11,058 11,611 12,191 12,801 126,384 132,697 139,334 146,297 153,612 Associate Planner Exempt 4,397 4,617 4,848 5,091 5,345 9,527 10,004 10,505 11,031 11,582 114,328 120,045 126,059 132,372 138,982 Budget Analyst Exempt 4,473 4,697 4,932 5,179 5,437 9,693 10,177 10,686 11,220 11,781 116,306 122,131 128,226 134,647 141,366 Building Official Exempt 5,560 5,838 6,130 6,436 6,758 12,047 12,650 13,282 13,946 14,643 144,563 151,796 159,382 167,347 175,719 Chief Building Official Exempt 6,117 6,422 6,743 7,080 7,435 13,252 13,914 14,610 15,341 16,107 159,030 166,968 175,312 184,090 193,291 Chief of Police Exempt 8,415 8,836 9,278 9,742 10,228 18,233 19,145 20,102 21,107 22,161 218,795 229,740 241,227 253,283 265,935City Clerk Exempt 5,030 5,281 5,544 5,822 6,112 10,898 11,442 12,013 12,613 13,244 130,773 137,302 144,157 151,363 158,922City Manager ExemptCommunications Manager Exempt 5,136 5,392 5,662 5,946 6,243 11,129 11,684 12,269 12,882 13,526 133,536 140,201 147,218 154,587 162,308 Deputy City Clerk Exempt 3,922 4,118 4,324 4,540 4,767 8,497 8,922 9,368 9,836 10,328 101,972 107,068 112,424 118,040 123,942 Deputy Director of Public Works Exempt 6,078 6,382 6,701 7,037 7,389 13,169 13,828 14,519 15,247 16,009 158,028 165,939 174,229 182,952 192,109 Director of Building and Planning Exempt 7,802 8,192 8,602 9,032 9,483 16,905 17,749 18,637 19,570 20,547 202,865 212,997 223,644 234,833 246,564 Director of Finance Exempt 7,802 8,192 8,602 9,032 9,483 16,905 17,749 18,637 19,570 20,547 202,865 212,997 223,644 234,833 246,564 Director of Public Works - City Engineer Exempt 8,338 8,755 9,193 9,652 10,134 18,066 18,969 19,917 20,913 21,958 216,790 227,627 239,006 250,953 263,497 GIS Coordinator Non-Exempt 4,233 4,444 4,666 4,899 5,144 9,170 9,628 10,109 10,615 11,146 110,039 115,541 121,318 127,385 133,753GIS Technician Non-Exempt 3,847 4,040 4,242 4,454 4,676 8,336 8,753 9,190 9,650 10,132 100,035 105,038 110,289 115,804 121,594HR Manager Exempt 5,345 5,612 5,893 6,187 6,497 11,582 12,160 12,768 13,406 14,076 138,982 145,918 153,205 160,872 168,919Management Analyst I Exempt 3,922 4,118 4,324 4,541 4,767 8,498 8,923 9,370 9,839 10,330 101,974 107,068 112,432 118,067 123,958Management Analyst II Exempt 4,315 4,531 4,757 4,994 5,244 9,349 9,817 10,306 10,821 11,363 112,188 117,796 123,675 129,852 136,354 Management Assistant Non-Exempt 3,565 3,743 3,930 4,127 4,334 7,723 8,110 8,516 8,942 9,389 92,682 97,314 102,191 107,311 112,676Planning Manager Exempt 5,950 6,248 6,560 6,889 7,234 12,892 13,537 14,214 14,926 15,673 154,695 162,444 170,571 179,105 188,073 Police Captain Exempt 7,385 7,754 8,141 8,549 8,976 16,000 16,799 17,639 18,522 19,448 192,001 201,592 211,670 222,263 233,370Police Lieutenant Exempt 6,284 6,599 6,929 7,276 7,640 13,616 14,298 15,013 15,765 16,553 163,392 171,574 180,162 189,183 198,639 Public Works Superintendent Exempt 6,170 6,478 6,802 7,142 7,499 13,368 14,036 14,738 15,474 16,249 160,412 168,431 176,857 185,689 194,981Senior Accountant Exempt 4,473 4,697 4,932 5,179 5,437 9,693 10,177 10,686 11,220 11,781 116,306 122,131 128,226 134,647 141,366 Senior Civil Engineer Exempt 5,589 5,869 6,162 6,471 6,794 12,110 12,716 13,352 14,020 14,720 145,321 152,582 160,222 168,241 176,640Senior Management Analyst Exempt 4,962 5,210 5,471 5,744 6,031 10,751 11,288 11,853 12,445 13,068 129,012 135,460 142,233 149,331 156,807 Senior Planner Exempt 5,057 5,310 5,576 5,855 6,148 10,957 11,505 12,081 12,686 13,319 131,477 138,061 144,969 152,230 159,829 Support Services Manager Exempt 4,962 5,210 5,471 5,744 6,031 10,751 11,288 11,853 12,445 13,068 129,012 135,460 142,233 149,331 156,807 Public Works & Clerical (PW&C): 3.75% COLA effective 01/10/2025 Resolution 25-
PW&C Job Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Accounting Technician Non-Exempt 3,338 3,505 3,680 3,864 4,057 7,232 7,594 7,974 8,372 8,790 86,786 91,124 95,686 100,472 105,481 Administrative Assistant Non-Exempt 2,979 3,128 3,284 3,449 3,621 6,455 6,777 7,116 7,472 7,846 77,467 81,329 85,387 89,669 94,147 Building and Planning Technician I Non-Exempt 2,979 3,128 3,284 3,449 3,622 6,455 6,777 7,116 7,472 7,847 77,467 81,329 85,387 89,669 94,162 Building and Planning Technician II Non-Exempt 3,278 3,441 3,613 3,794 3,984 7,102 7,456 7,830 8,222 8,632 85,219 89,473 93,951 98,653 103,578 Biweekly Monthly Annual
Biweekly Monthly Annual
12,283 26,613 319,358
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EXHIBIT A
Building Inspector I Non-Exempt 3,800 3,981 4,180 4,389 4,608 8,232 8,624 9,056 9,509 9,985 98,793 103,494 108,672 114,101 119,810 Building Inspector II Non-Exempt 4,180 4,389 4,608 4,838 5,081 9,056 9,509 9,985 10,483 11,008 108,672 114,101 119,810 125,800 132,097 Lead Facilities Worker Non-Exempt 3,689 3,873 4,067 4,270 4,483 7,992 8,392 8,811 9,252 9,713 95,910 100,696 105,733 111,023 116,564 Lead Maintenance Worker Non-Exempt 3,513 3,689 3,873 4,067 4,270 7,612 7,992 8,392 8,811 9,252 91,348 95,910 100,696 105,733 111,023 Maintenance Worker I Non-Exempt 2,707 2,836 2,978 3,127 3,283 5,865 6,145 6,453 6,775 7,113 70,386 73,745 77,439 81,301 85,359 Maintenance Worker II Non-Exempt 2,978 3,127 3,283 3,447 3,619 6,453 6,775 7,113 7,468 7,841 77,439 81,301 85,359 89,613 94,091 Office Assistant Non-Exempt 2,729 2,865 3,009 3,159 3,317 5,913 6,209 6,519 6,845 7,188 70,946 74,500 78,222 82,141 86,255 Public Works Inspector I Non-Exempt 3,513 3,689 3,873 4,067 4,270 7,612 7,992 8,392 8,811 9,252 91,348 95,910 100,696 105,733 111,023 Public Works Inspector II Non-Exempt 3,864 4,058 4,260 4,474 4,697 8,372 8,792 9,231 9,693 10,177 100,472 105,509 110,771 116,312 122,125 Public Works Inspector III Non-Exempt 4,260 4,473 4,697 4,931 5,178 9,230 9,690 10,176 10,684 11,218 110,759 116,289 122,116 128,212 134,632 Senior Accounting Technician Non-Exempt 3,671 3,855 4,047 4,250 4,463 7,952 8,352 8,769 9,208 9,669 95,434 100,220 105,229 110,491 116,029 Senior Building and Planning Technician Non-Exempt 3,768 3,957 4,155 4,363 4,581 8,166 8,574 9,002 9,453 9,927 97,981 102,879 108,028 113,430 119,115 Senior Building Inspector/Plan Checker Non-Exempt 4,715 4,950 5,198 5,457 5,730 10,215 10,726 11,262 11,824 12,414 122,581 128,710 135,147 141,892 148,972 Public Works Supervisors: 3.75% COLA effective 01/10/2025 Resolution 25-
PW Supervisors Job Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Public Works Assistant Superintendent Exempt 5,091 5,346 5,612 5,894 6,189 11,030 11,582 12,161 12,770 13,409 132,357 138,985 145,924 153,231 160,907 Public Works Supervisor Exempt 4,616 4,847 5,088 5,343 5,610 10,000 10,502 11,026 11,578 12,155 120,008 126,012 132,300 138,928 145,867 Police Officers Association (POA): 4.2% COLA effective 01/01/2024 Resolution 24-01
POA Job Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Code Enforcement Officer I Non-Exempt 3,503 3,678 3,862 4,054 4,258 7,590 7,969 8,367 8,785 9,225 91,083 95,635 100,403 105,415 110,698 Code Enforcement Officer II Non-Exempt 3,862 4,054 4,258 4,470 4,694 8,367 8,785 9,225 9,685 10,171 100,403 105,415 110,698 116,225 122,049 Communications Officer I Non-Exempt 3,442 3,605 3,786 3,975 4,174 7,458 7,812 8,203 8,613 9,045 89,485 93,738 98,425 103,356 108,531 Communications Officer II Non-Exempt 3,786 3,975 4,174 4,383 4,601 8,203 8,613 9,045 9,496 9,970 98,425 103,356 108,531 113,949 119,638 Community Service Officer Non-Exempt 2,803 2,943 3,090 3,244 3,406 6,073 6,376 6,694 7,028 7,380 72,877 76,508 80,328 84,337 88,564 Lead Communications Officer Non-Exempt 3,386 3,556 3,733 3,920 4,116 7,337 7,703 8,088 8,493 8,917 88,046 92,443 97,056 101,912 107,010 Police Corporal Non-Exempt 4,762 5,000 5,250 5,512 5,788 10,318 10,833 11,374 11,943 12,542 123,810 129,987 136,489 143,317 150,496 Police Officer Non-Exempt 4,508 4,733 4,969 5,217 5,478 9,767 10,254 10,767 11,305 11,868 117,200 123,052 129,202 135,650 142,423 Police Officer Trainee Non-ExemptPolice Sergeant Non-Exempt 5,493 5,769 6,057 6,360 6,678 11,903 12,499 13,124 13,780 14,469 142,829 149,981 157,486 165,370 173,633 Property Officer Non-Exempt 3,083 3,237 3,399 3,569 3,747 6,680 7,015 7,365 7,733 8,118 80,165 84,175 88,374 92,790 97,420 Records Clerk II Non-Exempt 3,360 3,528 3,704 3,890 4,085 7,281 7,644 8,027 8,428 8,850 87,372 91,734 96,312 101,134 106,201 Records Supervisor Non-Exempt 3,697 3,881 4,075 4,279 4,493 8,010 8,410 8,830 9,273 9,735 96,122 100,918 105,957 111,267 116,821 Minimum Wage Increase: $16.50 effective 01/01/2025
Part-Time Classifications Title FLSA Status Employment Status Rate Type Min Max Laborer - Temporary Non-Exempt Part-Time Hourly 30.00 40.00 Intern I - Temporary Non-Exempt Part-Time Hourly 20.00 30.00 Intern II - Temporary Non-Exempt Part-Time Hourly 25.00 35.00 Intern III - Temporary Non-Exempt Part-Time Hourly 30.00 40.00 Clerical - Temporary Non-Exempt Part-Time Hourly 16.50 35.00 Technician - Temporary Non-Exempt Part-Time Hourly 30.00 40.00 Communications Officer - Temporary Non-Exempt Part-Time Hourly Building Attendant Non-Exempt Part-Time Hourly 16.50 20.00

55.00 Biweekly Monthly Annual
3,870 8,386 100,624
Biweekly Monthly Annual
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
11 CONSENT CALENDAR

CITY COUNCIL MEETING
JANUARY 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH APB GENERAL ENGINEERING FOR THE 2024 SANITARY SEWER REHABILITATION & REPLACEMENT PROJECT IN THE AMOUNT OF $1,004,000.00, WITH A 10% CONTINGENCY IN THE AMOUNT OF $100,400.00, FOR TOTAL PROJECT BUDGET OF $1,104,400.00 PURSUANT TO CEQA GUIDELINE 15301 SUMMARY: This project includes the rehabilitation and replacement of approximately 3,500 linear feet of damaged and/or deteriorated sanitary sewer mains in public and private utility easements on Kenilworth and Marlborough Road. Due to the steep slope near the Kenilworth Road easement lines, a segment of the existing line will be relocated to Marlborough Road to improve access for operations and maintenance. In addition, the associated manholes, cleanouts, and lower service laterals will be replaced.

The investigation and evaluation of the project scope were completed by engineering staff in 2023, and the project was designed by EKI Environment & Water, Inc., who recently completed the design of two similar projects.

Completion of these system upgrades will reduce infiltration and inflow (I&I), overall sanitary sewer treatment and maintenance costs, and the need for downstream capacity improvements.

This project was advertised in accordance with the Public Contract Code and on the Town’s website and in the local newspaper. A total of seven bids were received and opened on November 13, 2024. The bid results were announced in the Town Hall Council Chamber, in accordance with the Town’s policies and procedures. The bid summary is as follows:

COMPANY NAME Bid Amount ($)
APB General Engineering 1,004,000.00
Build Corp Inc. 1,370,000.00
Casey Construction 1,329,300.00
Devaney Engineering 1,686,300.00
Express Plumbing 1,055,200.00
KJ Woods Construction 1,548,000.00
West Rock Engineering 1,201,050.00
Of the bids received for this project, APB General Engineering was confirmed by staff to be the lowest responsible bidder submitting a responsive bid. Based on staff analysis of the bid submittal, and reference checks with three other municipalities, it was determined that APB’s qualifications and experience levels are satisfactory to perform all works associated with this project. -227-
Agenda Staff Report - Hillsborough City Council
January 13, 2025

FISCAL IMPACT: It is recommended that funding be allocated from the approved budget for the Priority Basins 24A (CIP #716). This includes a 10% contingency of $100,400.00, to be used if necessary, bringing the total allocation to $1,104,400.00. Sufficient funds are available within the approved budget to cover this project.

ENVIRONMENTAL ISSUES: This project is exempt from the California Environmental Quality Act (CEQA) per Section 15301 of the California Code of Regulations.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution awarding to and authorizing the City Manager to execute a contract with APB General Engineering for the 2024 Sanitary Sewer Rehabilitation & Replacement Project in the amount of $1,004,000.00, with a 10% contingency in the amount of $100,400.00, for a total project budget of $1,104,400.00. -228-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH APB GENERAL ENGINEERING FOR THE 2024 SANITARY

SEWER REHABILITATION & REPLACEMENT PROJECT IN THE AMOUNT OF $1,004,000.00, WITH A 10% CONTINGENCY IN THE AMOUNT OF $100,400.00, FOR TOTAL COST OF $1,104,400.00 PURSUANT TO CEQA GUIDELINE 15301 WHEREAS, the Town of Hillsborough (“Town”) maintains the Town’s sanitary sewer system; and
WHEREAS, the capital improvement budget identified a project to evaluate and replace or rehabilitate deficient segments of pipe that were identified in the Town’s wastewater basin discharging to the City of San Mateo Wastewater Treatment Plant; and
WHEREAS, the 2024 Sanitary Sewer Rehabilitation and Replacement Project (“Project”) consists of replacing approximately 3,500 linear feet of sanitary sewer main lines and associated manholes, lower laterals, and cleanouts; and
WHEREAS, plans and specifications have been developed for improvements to the Town’s sanitary sewer system to repair the deficient pipe segments; and WHEREAS, the Project was publicly bid and advertised in accordance with the Public Contracts Code, and the Town received seven bids for the Project; and WHEREAS, APB General Engineering (“APB”) was the lowest responsible bidder submitting a responsive bid in the amount of $1,004,000.00, and WHEREAS, staff conducted an analysis of the bid and verified that APB’s qualifications and experience levels are satisfactory; and
WHEREAS, funding will be allocated from the Priority Basins 24A (CIP #716).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby awards to and authorizes the City Manager to execute the contract on behalf of the Town with APB General Engineering, for the 2024 Sanitary Sewer Rehabilitation and Replacement Project in the amount of $1,004,000.00 and authorize a contingency of 10% ($100,400.00), if needed, resulting in a total budget of $1,104,400.00, allocating funds from the Priority Basins 24A (CIP #716).

Mayor of the Town of Hillsborough
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2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of January 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-230-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
12 CONSENT CALENDAR

CITY COUNCIL MEETING
JANUARY 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A PRIMARY GRANT AGREEMENT WITH THE SAN MATEO COUNTY

TRANSPORTATION AUTHORITY FOR FUTURE MEASURES A AND W FUNDING PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: In 1988, San Mateo County voters approved Measure A, a 20-year half-cent sales tax to fund and leverage additional funding for transportation projects and programs in San Mateo County. The approval of Measure A created the Transportation Authority (“TA”) to manage and administer the sales tax revenues generated in conformance with the Transportation Expenditure Plan (“TEP”). The 1988 sales tax expired on December 31, 2008. In 2004, the San Mateo County voters reauthorized the Measure A half-cent sales tax and adopted a new TEP for an additional 25 years (from January 1, 2009 through December 31, 2033). The TEP established funding categories for Transit; Highways Improvements; Local Streets/Transportation; Grade Separations; Pedestrian and Bicycle Improvements; and Alternative Congestion Relief projects.

In 2018, the San Mateo County voters approved Measure W, a 30-year half cent sales tax, from July 1, 2019 through June 30, 2048, to fund and leverage additional funding for transportation projects and programs in San Mateo County that are consistent with the Measure W Congestion Relief Plan. The San Mateo County Transit District (“District”) levies this tax and administers investments for the 50% of the proceeds assigned to the County Public Transportation Systems category in the Congestion Relief Plan. The TA is responsible for administering the remaining 50% of funds assigned to: Countywide Highway Congestion Improvements; Local Safety, Pothole and Congestion Relief Improvements including Grade Separations; Bicycle and Pedestrian Improvements; and Regional Transit Connections.

Historically, the TA has executed separate funding agreements and memoranda of understanding (and associated amendments) for each phase of each project funded by Measures A and W. To streamline the contracting process, the TA has developed a new primary grant agreement (PGA) through which the TA and project sponsors will document the structure of their relationships and related obligations. Concise individual project supplements will detail each funded project and any specifically-associated requirements during the 10-year term of the PGA.

In order to be eligible for TA Measures A and W funding over the next 10 years, the TA requires sponsors' governing boards to adopt resolutions authorizing the sponsor's City Manager, or designee, to sign a PGA with the TA. The TA has noted that because the TA will be administering this agreement across numerous agencies, changes to the standard terms cannot be considered/accommodated.
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Agenda Staff Report - Hillsborough City Council
January 13, 2025

FISCAL IMPACT: There is no fiscal impact associated with this item.

ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS:

1. Resolution

2. Primary Grant Agreement
PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION: Adopt the resolution (1) approving and authorizing the City Manager to execute a primary grant agreement with the San Mateo County Transportation Authority to be eligible to receive Measures A and W grants over the next 10 years; (2) certifying that any funds awarded by the TA will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and (3) authorizing the City Manager, or designee, to take any other actions necessary to give effect to this resolution. -232-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

AUTHORIZING EXECUTION OF A PRIMARY GRANT AGREEMENT WITH THE SAN

MATEO COUNTY TRANSPORTATION AUTHORITY FOR FUTURE MEASURES A AND W FUNDING PURSUANT TO CEQA GUIDELINE SECTION 15378
WHEREAS, on June 7, 1988, the voters of San Mateo County approved a ballot measure to allow the collection and distribution by the San Mateo County Transportation Authority (TA) of a half-cent transactions and use tax in San Mateo County for 20 years with the tax revenues to be used for highway and transit improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A); and
WHEREAS, on November 2, 2004, the voters of San Mateo County approved the continuation of the collection and distribution by the TA of the Measure A half cent transaction and use tax for an additional 25 years to implement the 2004 Transportation Expenditure Plan, beginning January 1, 2009 (New Measure A); and
WHEREAS, on November 6, 2018, the voters of San Mateo County authorized a new one-half percent sales tax in San Mateo County for transportation purposes, and tasked the TA with administering four of the five transportation program categories described in the Congestion Relief Plan presented to the voters (Measure W); and
WHEREAS, the Town of Hillsborough is eligible for funding under certain programs in the 1988 Transportation Expenditure Plan, 2004 Transportation Expenditure Plan, and/or 2018 Congestion Relief Plan; and WHEREAS, the TA requires the Sponsor's governing board to adopt a resolution authorizing the Sponsor’s City Manager, or a designee, to sign a Primary Grant Agreement with the TA to receive Measures A and W grants over the next 10 years, and to take any other actions necessary to give effect to this resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby:

1. Authorizes the City Manager, or designee, to execute a primary grant agreement with the San Mateo County Transportation Authority to be eligible to receive Measures A and W grants over the next 10 years; and

2. Certifies that any funds awarded by the TA will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and

3. Authorizes the City Manager, or designee, to take any other actions necessary to give effect to this resolution.

Mayor of the Town of Hillsborough
-233-
ATTACHMENT 1
2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of January 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-234-

20016287.14

PRIMARY GRANT AGREEMENT

SAN MATEO COUNTY TRANSPORTATION AUTHORITY

MEASURE A AND/OR MEASURE W FUNDS
This Primary Grant Agreement (Agreement) is made __________________ by and between the San Mateo County Transportation Authority (TA) and the [Project Sponsor] (Sponsor), each of which is referred to herein individually as “Party” and jointly as “Parties.”

RECITALS
WHEREAS, on June 7, 1988, the voters of San Mateo County approved a ballot measure to allow the collection and distribution by the TA of a half-cent transactions and use tax in San Mateo County for 20 years with the tax revenues to be used for highway and transit improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A); and
WHEREAS, on November 2, 2004, the voters of San Mateo County approved the continuation of the collection and distribution by the TA of the Measure A half cent transaction and use tax for an additional 25 years to implement the 2004 Transportation Expenditure Plan, beginning January 1, 2009 (New Measure A); and
WHEREAS, on November 6, 2018, the voters of San Mateo County authorized a new one-half percent sales tax in San Mateo County for transportation purposes, and tasked the TA with administering four of the five transportation program categories described in the Congestion Relief Plan presented to the voters (Measure W); and
WHEREAS, the TA and Sponsor desire to enter into this Agreement to establish the process, terms and conditions governing the allocation and expenditure of Measures A/W Funds by Sponsor for capital projects.

Now therefore, the Parties agree as follows:

SECTION 1: Form of Agreements

1.1. Primary Grant Agreement. This Primary Grant Agreement outlines the general terms and conditions applicable to all TA allocations of Measures A/W Funds to Sponsor for capital projects. As allocations are made, the TA and Sponsor will enter into subsequent arrangements for each allocation (Project Supplements). From time to time the Parties may enter into Project Supplements with third parties for cosponsored projects.

1.2. Project Supplements. Each Project Supplement will be substantially in a form attached hereto as described in Exhibit A, "Form of Project Supplements " and will be attached to this Agreement and incorporated herein by this reference.

SECTION 2: Term and Termination

2.1. Term. The term of this Agreement will commence on Execution Date and will terminate after 10 years, unless terminated by Sponsor or the TA pursuant to this Section 2. Work begun under the Agreement will continue to be governed by this Agreement until the Scope of Work is complete.
-235-

20016287.14

2.2. Sponsor’s Right to Terminate; Repayment upon Termination. Sponsor may at any time terminate the Agreement or a Project Supplement by giving ten (10) days’ written notice to the TA of its election to do so. Upon such termination, Sponsor will not be reimbursed for any further Scope of Work Costs associated with the Agreement or the Project Supplement, as applicable, and will reimburse the TA for all monies paid by the TA and costs incurred by the TA in connection with the applicable Scope of Work as well as all reasonable costs and expenses incurred to effect such termination within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.

2.3. Termination by the TA. The TA may terminate this Agreement or a Project Supplement, with or without cause, by giving ten (10) days’ written notice of such termination.

If the TA terminates the Agreement for Sponsor’s default, Sponsor will reimburse the TA for all funds paid to Sponsor in connection with all Scopes of Work, and for all costs incurred by the TA in connection with the Scope of Work as well as all reasonable costs and expenses incurred to effect such termination, within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.

If the TA terminates a Project Supplement for Sponsor’s default, Sponsor will reimburse the TA for all funds paid to Sponsor in connection with the Scope of Work for the applicable Project Supplement, and for all costs incurred by the TA in connection with the Scope of Work as well as all reasonable costs and expenses incurred to effect such termination, within ninety (90) days of the TA’s submission to Sponsor of a detailed statement of such payments and costs.

If the TA terminates the Agreement or a Project Supplement for convenience, the TA is obligated to pay to Sponsor all costs and expenses incurred thereunder by Sponsor up to the date of notice of termination, as well as all reasonable costs and expenses incurred to effect such termination.

2.4. Expiration/Suspension of TA’s Financial Obligations. Any and all financial obligations of the TA pursuant to this Agreement expire upon the expenditure of TA’s maximum contribution to each Scope of Work as established in each Project Supplement or the conclusion of the Term as defined in Section 2.1, whichever occurs first. The TA reserves the right to suspend its financial obligation, with ten (10) days’ advance notice, if Sponsor identifies a risk of not being able to complete a Scope of Work within budget. If Sponsor cannot provide a credible funding plan acceptable to the TA to fund and complete each Scope of Work, the Sponsor will be in default and the TA may terminate this Agreement. If Sponsor identifies a risk of not being able to complete each Scope of Work within budget, failure to report such risk to the TA constitutes default and is cause for termination under Section 2.3.

2.5. Supplementing Existing Revenue. Sponsor agrees that it will use funds provided pursuant to this Agreement to supplement existing revenue. Sponsor will not use Measures A/W Funds to replace other local taxes or revenues already programmed and available for use for the same purpose. Sponsor will use funds provided pursuant to this Agreement only for the Scope of Work for each Project Supplement. -236-

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2.6. Misuse of Funds. If the TA determines that Sponsor has used Measures A/W Funds other than for the approved Scope of Work or Project Costs, the TA will notify Sponsor of its determination. Within thirty (30) days of notification Sponsor will either (a) repay such funds to the TA, or (b) explain in writing how the funds in question were spent for the approved Scope of Work. The TA will respond to Sponsor’s written explanation within thirty (30) days of receipt. Unless otherwise stated in the response, the TA’s response will be final, and Sponsor will repay any funds used other than for the approved Scope of Work within thirty (30) days.

SECTION 3: Time of Performance

3.1. Time of Performance. The time of performance will be specified in each Project Supplement (Time of Performance).

3.2. Time Extension. If the Scope of Work cannot be completed within the Time of Performance as defined in Section 3.1, Sponsor must submit a request in writing to the TA no later than six (6) months before the Time of Performance for an extension for the Time of Performance. The TA will review the request and may grant the extension via a letter of concurrence if it is justified in TA’s sole and complete discretion. Extensions longer than one (1) year will require a formal amendment to the Project Supplement.

Costs incurred for the Scope of Work after the Time of Performance are at risk of denial for reimbursement by the TA. The unreimbursed portion of Measures A/W allocation will be retained by the TA for the Measures A/W Program.

SECTION 4: Insurance

4.1. Insurance. For the purposes of this Section, “Entity” is defined as any entity designing, approving designs and/or performing each Scope of Work specified in the Project Supplements funded by this Agreement. Entities may include Sponsor, a contractor of Sponsor, another body on behalf of which Sponsor submitted its funding application, and/or a contractor of such other body.

For each Project Supplement, all Entities will provide the appropriate insurance covering the work being performed as specified in the Project Supplement. The insurance requirements specified in this Section will cover each Entity’s own liability and any liability arising out of work or services of Entity subcontractors, subconsultants, suppliers, temporary workers, independent contractors, leased employees, or any other persons, firms or corporations (hereinafter collectively referred to as “Agents”) working on each Project (as defined in each Project Supplement). If Sponsor itself is an Entity, Sponsor must also provide its own insurance meeting the requirements of this Section. a) Minimum Types and Scope of Insurance. Each Entity is required to procure and maintain at its sole cost and expense insurance subject to the requirements set forth below. Such insurance will remain in full force and effect throughout performance of the Scope of Work. All policies will be issued by insurers acceptable to the TA (generally with a Best’s Rating of A-10 or better). Each Entity is also required to assess the risks associated with work to be performed by Agents and to require that Agents maintain adequate insurance coverages with appropriate limits and endorsements to cover such risks. To the extent that its Agent does not procure and maintain such insurance coverage, an Entity is responsible for and assumes any and all costs and expenses that may be -237-

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incurred in securing said coverage or in fulfilling Entity’s indemnity obligations as to itself or any of its Agents in the absence of coverage. Entities may self-insure against the risks associated with the Scope of Work, but in such case, waive subrogation in favor of the TA respecting any and all claims that may arise. i. Workers’ Compensation and Employer’s Liability Insurance. Worker’s Compensation coverage must meet statutory limits and Employer’s Liability Insurance must have minimum limits of $1 million. Insurance must include a Waiver of Subrogation in favor of the TA. ii. Commercial General Liability Insurance. The limit for Commercial General Liability Insurance will be specified in each Project Supplement.

Commercial General Liability Insurance must be primary to any other insurance, name the TA as an Additional Insured, include a Separation of Interests endorsement and include a Waiver of Subrogation in favor of the TA.
iii. Business Automobile Liability Insurance. The limit for Business Automobile Liability Insurance will be specified in each Project Supplement. Insurance must cover all owned, non-owned and hired autos, and include a Waiver of Subrogation in favor of the TA. iv. Property Insurance. Property Insurance must cover an Entity’s and/or Agent’s own equipment as well as any materials to be installed. Property Insurance must include a Waiver of Subrogation in favor of the TA. v. Professional Liability Insurance. If specified in a Project Supplement, Professional Liability insurance should cover each Entity’s and any Agent’s professional work on the Project.
vi. Cyber Liability Insurance. If specified in a Project Supplement, and if contract deals with Personally Identifiable Information (PII), then Professional Liability Insurance policy, should also include coverage for Cyber risk coverages including Network and Internet Security Liability coverage, Privacy coverage and Media coverage.
vii. Employee Theft Insurance/Crime Insurance. If specified in a Project Supplement, then an Employee Theft Insurance policy covering the loss of money, securities or other property resulting from theft by employees.

The policy should include Third-Party Crime or Client Crime coverage viii. Contractors’ Pollution Liability Insurance and/or Environmental Liability Insurance. If specified in a Project Supplement, Contractors’ Pollution Liability Insurance and/or Environmental Liability insurance should cover potential pollution or environmental contamination or accidents. The limit for Pollution and/or Environmental Liability Insurance in each appropriate contract and subcontract should not be less than $1 million. Such insurance must name the TA as an Additional Insured and include a Waiver of Subrogation in favor of the TA.
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ix. Railroad Protective Liability Insurance. Insurance is required if the Project will include any construction or demolition work within 50 feet of railroad tracks. The limit for Railroad Protective Liability Insurance in each appropriate contract and subcontract cannot be less than $2 million per occurrence and $6 million annual aggregate. On the Entity’s Commercial General Liability insurance policy, the contractual liability exclusion for liability assumed shall be deleted.
b) Special Requirement for Caltrain Shuttles. If Sponsor and/or Entity is operating shuttle(s) with the Caltrain logo on the vehicle(s) or on any shuttle public information materials, the Commercial General Liability, Business Automobile, and Pollution and/or Environmental Liability (if applicable) policies also must name as Additional Insureds: the Peninsula Corridor Joint Powers Board, the San Mateo County Transit District, the Santa Clara Valley Transportation Authority, the City and County of San Francisco, TransitAmerica Services, Inc. or any successor Operator of the Service, and the Union Pacific Railroad Company and their respective directors, officers, employees, volunteers and agents while acting in such capacity, and their successors or assignees, as they now, or as they may hereafter be constituted, singly, jointly or severally. c) Excess or Umbrella Coverage. Sponsor and/or any other Entity may opt to procure excess or umbrella coverage to meet the above requirements, but in such case, these policies must also satisfy all specified endorsements and stipulations for the underlying coverages and include provisions that the policy holder’s insurance is to be primary without any right of contribution from the TA. d) Deductibles and Retentions. Sponsor must ensure that deductibles or retentions on any of the above insurance policies are paid without right of contribution from the TA. Deductible and retention provisions cannot contain any restrictions as to how or by whom the deductible or retention is paid. Any deductible or retention provision limiting payment to the named insured is unacceptable.

In the event that any policy contains a deductible or self-insured retention, and in the event that the TA seeks coverage under such policy as an additional insured, Sponsor will ensure that the policy holder satisfies such deductible to the extent of loss covered by such policy for a lawsuit arising from or connected with any alleged act or omission of the Entity or Agents, even if neither the Entity nor Agents are named defendants in the lawsuit.
e) Claims Made Coverage. If any insurance specified above is provided on a claimmade basis, then in addition to coverage requirements above, such policy must provide that:
i. Policy retroactive date coincides with or precedes the Entity’s start of work (including subsequent policies purchased as renewals or replacements).
ii. Entity will make every effort to maintain similar insurance for at least three (3) years following Project completion, including the requirement of adding all additional insureds.
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iii. If insurance is terminated for any reason, each Entity agrees to purchase an extended reporting provision of at least three (3) years to report claims arising from work performed in connection with this Agreement. iv. Policy allows for reporting of circumstances or incidents that might give rise to future claims.
f) Failure to Procure Adequate Insurance. Failure by any Entity to procure sufficient insurance to financially support the indemnification requirements of this Agreement does not excuse Sponsor from meeting all obligations of the indemnification requirements and the remainder of this Agreement, generally. g) Prior to beginning work under this Agreement, Sponsor must obtain, and produce upon request of the TA, satisfactory evidence of compliance with the insurance requirements of this Section.

SECTION 5: Additional Terms Applicable to Sponsor-Performed Capital Projects The following additional terms apply when the Sponsor is performing the scope of work for capital projects as described in each Project Supplement.

5.1. Project Performance. Sponsor will oversee completion of the scope of work for each TA funded project as described in each Project Supplement (Scope of Work).

Sponsor is responsible for procuring and administering any professional service and/or other contracts entered into in connection with each such Scope of Work. Sponsor may appoint a designee or engage contractor(s) to perform work necessary for completion of work, but Sponsor remains responsible to the TA for the completion of each Scope of Work.

5.2. Required Approvals. Prior to commencement of each Scope of Work, Sponsor or its designee (e.g., a consultant) will obtain all applicable local, state and federal approvals and permits for each Scope of Work. In addition, Sponsor must comply with all applicable federal, state and local laws and regulations applicable to the Project. All real property appraisals must comply with Uniform Standards of Professional Appraisal Practice (USPAP). Any right-of-way activities involving property on the Caltrans right-ofway must be conducted in accordance with the current version of the Caltrans Right-ofWay manual.

5.3. Contract Award and Change Orders. Sponsor must comply with state and local agency requirements for the award of any contract(s) for the performance of each Scope of Work and any change orders. As each Scope of Work proceeds, Sponsor must advise the TA of any contracts awarded and change orders as part of the regular progress reporting requirements. Notice of any contracts and change orders provided to the TA will not constitute approval by the TA of the contracts and change orders nor obligate the TA to provide funds in excess of its maximum contribution stated in each Project Supplement.

5.4. Progress Reports. Sponsor will prepare and submit to the TA quarterly progress reports during the entire term of each Scope of Work and covering all Scope of Work activities for work completed during the previous month using the template in Exhibit B or in other formats specified by the TA. The reports must describe:
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a) The current status of, and any changes in, scope, schedule, budget, and funding plans of each Scope of Work and each Project;
b) Any risk factors;
c) The work performed during the previous quarter and projected for the next three months;
d) Scope of Work Costs (as defined in Section 5.8 below) projected to be expended during the next three months; and
e) Any other information requested by the TA.

5.5. Final Report. Within ninety (90) days of Sponsor’s final acceptance of each Scope of Work and all incidental work, Sponsor must prepare and submit to the TA a final report detailing the following and all other relevant information:
a) A description of the Project, including a statement detailing the overall progress and success of the Scope of Work and the Project, a compilation of any data collected during the active phase(s) of the Project, and changes/additions to the scope of the Project.
b) Total costs for the Scope of Work, including an accounting of all Measures A/W Funds expended in connection with the Scope of Work, and reflecting any unexpended Measures A/W Funds.
c) An explanation and the status of any outstanding obligations or potential obligations related to the Scope of Work.
d) A discussion of any pertinent issues or problems that arose during the implementation of the Scope of Work.
e) Any copies of press articles, press releases, newsletter articles and any other publicity materials regarding the Project.
f) Written confirmation or, for the final project phase, a Project Close-out form that no further reimbursements associated with the Scope of Work are anticipated and that all draw-down requests have been made.
g) Photographs for all construction projects that satisfactorily demonstrate: 1) site conditions before the project was implemented; 2) work in progress; and 3) completed improvements.

5.6. Funding Commitment. The TA allocates to Sponsor up to the amount specified in each Project Supplement for reimbursement of expenditures related to the Scope of Work (Scope of Work Costs). Sponsor will contribute, or provide for the contribution of matching funds as specified in each Project Supplement. Sponsor also will contribute, or provide for the contribution of the entire amount in excess of the total project cost specified in the Project Supplement needed to complete each Scope of Work. The TA’s funding commitment under this Agreement in no way establishes a right for Sponsor to receive additional funding from the TA. All funding obligations of the TA under this -241-

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Agreement are subject to downward adjustment based on actual sales tax receipts for the fiscal years indicated.

Sponsor will assess and confirm its ability to complete the Scope of Work described in each Project Supplement within budget as part of the quarterly reporting requirements established in 5.4, above. Sponsor must further notify the TA between reporting cycles if Sponsor determines that the budget will not be sufficient to complete each Scope of Work. The TA reserves the right to suspend its funding obligation as set forth in applicable Project Supplements upon such notice, and until Sponsor develops a credible funding plan acceptable to the TA to fund and complete the associated Scope of Work.

5.7. Use of Funds.
a) Measures A/W Funds must be used only for direct eligible costs to complete the Scope of Work. The Sponsor is responsible for demonstrating to the TA that the expenses incurred were necessary to deliver each Scope of Work.

Reimbursement for the following costs will require detailed documentation in accordance with generally-accepted accounting principles:
i. Scope of Work phases or components such as stakeholder/public outreach; development of planning studies, project initiation documents (PID), project study reports (PSR), environmental clearance and mitigation for up to three years following project completion, project approval and environmental document (PA&ED), project design, and plans specifications and estimates (PS&E); regulatory agency review; acquisition of right-of-way; construction, and construction management; ii. Sponsor staff time for Scope of Work implementation; iii. Project administration costs for each Scope of Work under this Agreement.
iv. Costs directly tied to the implementation of each Project Scope of Work as more specifically defined in Exhibit C, “Eligible Costs for Reimbursement,” which is attached to this Agreement and incorporated herein by this reference. Eligible costs are defined in greater detail in Exhibit C. If Sponsor wishes to undertake items of work not covered under each Scope of Work concurrent with performing each Scope of Work, the cost for including and undertaking the additional work must be segregated, and the costs borne exclusively by the Sponsor from a nonMeasures A/W Program funding source(s). In the event that an activity is not listed in Exhibit C but Sponsor believes that it is an eligible cost, Sponsor may request that the TA consider reimbursing the Sponsor for the activity. The TA will have sole discretion to grant or deny Sponsor’s requests.
b) The following costs are not eligible for Measures A/W Funds reimbursement:
i. Sponsor’s costs which are unrelated to each Scope of Work; ii. Costs for entering into this Agreement and each Project Supplement; -242-