Agenda packet — Santa Cruz City Council, June 23, 2026 (part 2 of 5)

B. If management chooses to extend an employee’s probation, the manager must provide an explanatory reason related to the employee’s extension of probation to both the Union and employee of their rejection in writing on the same day. Management must provide notification of extension two weeks prior to the exportation of probation.

C. Use of Paid Time Off (PTO) shall not extend an employee’s probationary period.

8.03 SALARY STEPS, PERSONNEL FILES AND PERFORMANCE EVALUATIONS (TEMPORARY

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EMPLOYEES)

8.03.01 Personnel Files
There shall be only one official personnel file which shall be maintained in the City’s Human Resources Department. Employees shall have the right to review their personnel files and/or authorize, in writing, review by their representatives. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee. Employees may prepare written responses to adverse material placed in their personnel files. Upon presentation to the Human Resources Department, the Human Resources Department will place these written responses in employees’ personnel files.

8.03.02 Performance Evaluations
All temporary employees will receive a written performance evaluation from their supervisors upon eligibility for the next step in the salary schedule.

Evaluations are intended to be a summary of the employee’s performance over the course of the evaluation period. Evaluations are also to be used as a tool to motivate the employee to work at their highest capacity and to communicate and document the employee’s level of performance. To this end, if the employee is still actively working at the time the evaluation is completed, the supervisor and the employee will meet and discuss work responsibilities, job standards and objectives, review progress and plan for the employee’s future development prior to the evaluation being placed in the employee’s personnel file. Employees who are not actively working at the time the evaluation is completed will be mailed their evaluation to the last address provided to the City. Supervisors will make every attempt to address performance issues in a timely manner throughout the evaluation period and provide appropriate feedback to employees on an ongoing basis.

Any additions, corrections, deletions or changes on the original evaluation form, require initialing by both the maker of the amendment and the employee to indicate that the changes have been discussed and understood. No evaluation shall be made on hearsay statements. Employees may also choose to appeal a performance evaluation to the department head and, if not satisfied, formally enter a response to the evaluation in their personnel file. Any unsatisfactory areas in an employee’s evaluation shall have attached reasons stated by the rater in the commentary section and shall include specific recommendations for improvement. Disputes regarding performance reviews shall not be subject to the grievance process.

If a step increase is denied as part of the evaluation process, the worker may appeal the denial within fifteen (15) days of receipt to the Department head. The Department Head, or designee, shall meet with the worker and their representative, if any, and render a decision within ten (10) business days of the meeting. The decision of the Department Head shall be final.

8.03.03 Late Evaluations
Failure of the supervisor to present the employee with the evaluation within ninety (90) calendar days of the due date, unless extension is mutually agreed upon in writing, shall result in a recommendation of step advancement in conjunction with Section 8.02 (Salary Step Placement and Advancement Within the Range). However, as soon as possible thereafter, the supervisor shall conduct a performance evaluation in accordance with this section.

8.03.04 Salary Rates Upon Appointment
Temporary workers may be hired at any step in the appropriate salary range depending on the difficulty of recruitment, unusual qualifications, or upon prevailing rates being paid upon the recommendation of the department head and approval of the Director of Human Resources.

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Bargaining Unit employees temporarily filling classifications included in the Service Employees’ Bargaining Unit shall be placed in the same salary range as provided to employees in the Service employees’ bargaining unit.

8.03.05 Advancement within the Salary Range
Advancement within a temporary employee salary range shall be granted solely on meritorious job performance as documented by a satisfactory performance evaluation.

Hours worked in different Temporary Employee positions (different Grade Codes) accumulate separately for the purpose of the calculations described below, including multiple assignments within the Professional & Technical Assistant position (Grade Code 917).

Step increases for temporaries filling classified positions are as follows:

Starting Step Placement upon initial hire.

Next Step Eligible upon completion of 1040 hours worked.

Subsequent Steps Eligible upon completion of each 2080 hours worked.

Step increases for temporary employees filling unclassified* positions are as follows:

Starting Step Placement upon initial hire.

Subsequent Step Eligible upon completion of 600 hours worked.

Subsequent Step Eligible upon completion of each 600 hours worked. (Total 1,200 hours) Subsequent Step Eligible upon completion of an additional 600 hours worked. (Total 1,800 hours)
Subsequent Step Eligible upon completion of an additional 600 hours worked.(Total 2,400 hours)
* Professional and Technical Assistants (Grade Code 917) will receive a 5% increase (in lieu of a step increase) in accordance with this schedule, not to exceed the top of their salary range.

SECTION 9.00 - WORK ASSIGNMENTS (REGULAR EMPLOYEES)

9.01 WORK SHIFTS
A standard work period for full-time employees is eighty (80) hours per pay period with two (2) or more consecutive days off per week. In accordance with the Fair Labor Standards Act (FLSA) the City shall designate a standard forty (40) hour work week for each pay period week. Alternative work schedules (other than an eight hour, five day per week schedule) may be established by the City in consultation with the Union.

Employees shall be assigned regularly scheduled starting and quitting times. A shift is defined as regularly set starting and quitting times. Affected employees and the Union shall be notified as much in advance as possible, but at least ten (10) working days in advance of changes in shift schedules and work weeks. At least fifteen (15) calendar days’ notice will be given to employees and the Union’s Authorized Agent for changes to Police Records Technician schedules and the Union will have the opportunity to meet and respond to the Chief of Police and to present alternative scheduling plans for their review; the decision made by the Chief of Police regarding changing schedule plans shall be final.

9.02 ALTERNATE SCHEDULES/FLEX TIME, TELEWORK, VTO AND DEVELOPMENTAL

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ASSIGNMENTS
The City acknowledges that there may be benefits both to the City and the employee in alternative schedules. Employees may request that their department heads consider alternate scheduling of their work. Examples of alternate schedules include 4/10, 9/80, flex-time, job sharing, telework and voluntarily reduced work hours. The supervisor and department head may give consideration to such requests within existing law and policy, but are not obligated to change an employee’s schedule.

The City may establish alternate/flex schedules and/or regularly scheduled telework within the guidelines of Section 9.01 (Work Shifts) of the MOU and existing law and policy.

9.02.01 Voluntary Time Off
Requests for voluntary time off shall be made and granted according to APO #II-42, Voluntary Time Off (VTO) Program (June 2009). If requested, reasons for denial will be in writing.

9.02.02 Developmental Assignments
The City and the Union acknowledge that there may be benefits both to the City and the employee in offering voluntary developmental opportunities such as job rotations, job exchanges and other professional development and training techniques. These developmental assignments shall be in accordance with Section 10.04 (Working Out of Classification). Any schedule changes necessary to accommodate a developmental assignment shall be implemented in accordance with Section 9.01-Work Shifts of this MOU.

9.03 SANITATION WORK HOURS
All sanitation employees shall work a standard eight-hour (8) day, forty-hour (40) per week schedule.

9.04 PART-TIME EMPLOYEES
The City shall not increase a regular part-time employee’s work week for more than sixty (60) days without an opportunity for discussion between the employee and their supervisor.

Part-time employees who have their normal work schedule increased for a period that exceeds thirty (30) calendar days will have their benefit accruals increased accordingly. This applies only to an authorized increase in hours in the employee’s own classification or into another regular City classification.

Changes in regular part-time employee schedules that affect benefit accruals must be submitted via personal action request as defined by the Human Resources Director.

9.05 SENIORITY
Subject to bona fide operational needs, seniority from the most recent date of hire in a regular position shall be the criterion used to determine eligibility and time for vacation (see also Section 12.02-Scheduling of Vacation), floating holidays and compensatory time off.

Seniority as a regular employee within the classification shall be the criterion used to determine shift selection and duty assignment. Within the sanitation division, seniority within the classification will be the criterion for route assignment.

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When bona fide operational needs override the criterion of seniority for shift selection and duty assignment, the affected employee shall be furnished with a written description of those operational needs. Seniority shall not be the sole basis for rotational lead assignments or working-out-of-class assignments.

9.06 LUNCH PERIOD
All full-time regular employees shall be entitled to and expected to take an uninterrupted, unpaid lunch period of a minimum of thirty (30) minutes at or about the mid-point of their workday.

Wastewater Plant Operators, Water Plant Operators, Rangers, and Senior Rangers assigned to the Police Department are exempt from this requirement and entitled to a paid thirty (30) minute lunch period. Rangers and Senior Rangers assigned to the Water Recreation Facility are exempt from this requirement and entitled to a paid thirty (30) minute lunch period when the facility is open to the public. Supervisors may occasionally approve flexible scheduling of lunch periods for individual employees. Regular schedules that do not provide the required lunch period at or about the mid-point of the workday will not be allowed.

9.07 REST PERIODS
Regular employees shall be allowed a 15-minute rest period during each four hours of regular work. Departments may make reasonable rules concerning the scheduling of same. Rest periods not taken shall be waived. Rest periods cannot be taken at the beginning or end of a shift or combined with a meal period unless approved. This is not effective in periods of a bona fide emergency nature. Rest periods shall be considered work time.

9.08 CLEAN-UP TIME
Regular employees who work with hazardous, contaminated and/or dirty materials shall be allowed 15 minutes, (or more, if approved by the supervisor), prior to their lunch periods and before the end of their workdays to clean up. The City shall provide access to wash stations at all facilities.

9.08.01 Dress Time
Regular employees who are required to wear a uniform that is maintained, laundered and provided by the City and required to change into/out of said uniform at their work location shall be permitted to take ten (10) minutes of work time when changing into/out of required uniforms.

This time may not be added to Clean-Up Time taken in accordance with Section 9.08 nor is it eligible for overtime without prior approval from the supervisor. This section does not preclude employees from voluntarily and without additional compensation electing to arrive and change prior to their scheduled start time. This provision does not apply to equipment donned temporarily over a uniform to complete specific tasks.

9.09 EMERGENCY MEALS
The City shall provide meals for regular employees assigned to work emergency or unscheduled overtime when an employee works four or more hours contiguous to their regular work shift.

Thereafter, an additional meal shall be provided for every four-hour period. Location of meal sites shall be pursuant to administrative directive. The maximum emergency meal allowance will be $25.00.

9.10 LIGHT DUTY ASSIGNMENTS

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If a regular employee’s medical condition temporarily precludes the performance of their normal duties and management determines modified work is available and necessary to be performed, they may, with medical authorization from the employee’s personal physician, be temporarily assigned to such work for a period not to exceed six (6) months, unless an extension is approved by the Human Resources Department. No change in base pay will result in this temporary assignment. The Human Resources Department will review departmental denials of requests for light duty assignments. The employee may request a meeting with the Human Resources Department to review any denial; at the employee’s request, the employee’s representative may accompany the employee to this meeting.

9.11 PARKS WORK SCHEDULE
A. Regular Parks employees actually working eight (8) consecutive days or more, shall receive compensation of time and one half (1½) for those hours worked in excess of five (5) consecutive days. Paid time off in excess of three (3) hours shall not be considered time worked for the purpose of this payment. For example, an employee taking a paid leave in the middle of an eight (8) day work cycle would not qualify for overtime compensation.

Regular employees shall have the option of receiving the overtime compensation in the form of pay or compensatory time off.

The above pertains only to those employees who are rotating between assigned shifts.

B. All R e g u l a r Parks employees periodically assigned to work weekends shall do so on a two (2) month rotational basis or longer, if by mutual agreement.

It is mutually understood that the difference in rotational schedules shall not be construed to diminish the City’s rights to transfer employees.

9.12 EMPLOYMENT OF “REGULAR,LIMITED TERM”EMPLOYEES

9.12.01 Definition
Regular, limited Term is an appointment to an authorized position budgeted for a period of thirty-nine (39) weeks or more, but less than fifty-two (52) weeks. For example, a thirty-nine (39) week employee may be placed in active status from March through November and be placed on furlough from December through February. No City employment, including temporary assignments, may be held during a furlough period except when offered to temporarily fill a vacant regular position in the same classification. Authorized Regular, Limited Term positions that are included in the covered classifications in the existing Service M.O.U. are covered by this agreement pursuant to Section 5.00-Recognition of the M.O.U.

9.12.02 Notification to Employee
All regular, Limited Term employees shall be notified in writing of their term of employment at hire, including their specific furlough period. Employees shall be notified as soon as possible, but no less than ten (10) calendar days, of any changes to this work schedule.

9.12.03 Terms and Conditions
Changes to the M.O.U. that affect the terms and conditions of Regular, Limited Term employees are as follows:

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1. Active Status: Employees shall receive the same benefits as other regular employees during their active working status.

A. Probationary Period/Step Increases: Probationary period and step increases will be in accordance with Section 8.02-Probation and 10.01.02-Advancement Within the Range of the M.O.U. It is understood that no credit towards probation or step increase advancement will be received during the furlough period.

B. Holidays: Employees shall receive all holidays occurring during their period of active status.

2. Furlough Status: Employees are not entitled to receive any City paid benefits or accrue leave time during their furlough (non-working) status. A furlough is not considered a leave of absence or a layoff.

A. Medical, Dental, Vision Benefits: During periods of furlough, Regular, Limited employees shall have the following options:

1. Discontinue health coverage.

2. Continue health coverage by paying the appropriate premium.

3. Continue health coverage by paying the appropriate premium, in advance, by payroll deduction during active status.

B. Vacation/Sick Leave: Employees may not accrue sick or vacation leave or use any leave during their furlough. Any time accrued while in active status will remain in the employee’s account balance during the term of the furlough.

C. Holidays: Employees will not receive any payment or time off for holidays which occur during their furloughs.

9.13 WATER TREATMENT PLANT OPERATOR SHIFT SELECTION
(NOTE: This section does not pertain to temporary schedule changes to cover time off when appropriate, i.e. vacations, trainings, etc.)
Seniority as a regular employee within the classification shall be the criterion used to determine shift selection (subject to bona fide operational needs; i.e. SCADA system coordinator).  Shift schedules will be determined by the CPO prior to shift selection.  Shift selection shall occur:
o Annually with the actual shift changes occurring on the first Saturday of January.
o Whenever there is a shift that needs to be filled (i.e. after a retirement). o Whenever a new hire becomes qualified to work a stand-alone shift (typically after the probation period as a T3 Operator).  During the shift selection process Operators will choose one of the shifts established by the supervisor, in order of seniority.

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 As per MOU Section 9.05, Seniority as a regular employee within the classification shall be the criterion used to determine shift selection and duty assignment. Plant Operators I and II will be considered within the same classification and Plant Operators III and IV will be considered within the same classification for the purpose of seniority privileges.  With CPO approval Operators may swap shifts on a voluntary basis; which is not subject to seniority bumping.
 Weekend rotations will continue as currently practiced: every four months on the first Saturday of May, September, and January.

SECTION 10.00 - PAY RATES AND PRACTICES (REGULAR AND

TEMPORARY)

1. Cost of Living Adjustments
a. Effective the pay period that begins on October 11, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later, the salary for all bargaining unit members shall be increased by an additional four percent (4.0%) or $1.25 per hour increase, whichever is greater. b. Effective the pay period that begins on September 26, 2026, the salary for all bargaining unit members shall be increased by an additional four percent (4.0%). c. Effective the pay period that begins on August 27, 2027, the salary for all bargaining unit members shall be increased by an additional four percent (4.0%).

2. Furloughs: The City agrees that there will be no furloughs during the term of this Agreement.

10.01 SALARY STEPS (REGULAR)
Each classification in the bargaining unit shall be assigned a salary range that increases by 5% between steps.

10.01.01 Salary Rates Upon Appointment
New regular employees shall be hired at the first step of the classification’s salary range unless a higher starting step is recommended by the appointing authority based on the employee’s advanced qualifications for the position and such recommendation is approved by the Human Resources Director for Steps A-H and the City Manager for Steps I-J. The City and the Union will meet quarterly to review data and trends of appointments above the first step.

Promoted regular employees shall be appointed to the first step in the salary range for the new classification. However, if such employee is already being paid at a rate equal to or higher than the first step of the higher range, the employee shall be placed at the next higher step in the new range that will result in at least a 2.5% salary increase if promoted to another Service position and at least 5% if promoted to a Supervisory or Management position. A higher promotional salary may be recommended by the appointing authority based on an employee’s advanced qualifications for the position. Such recommendation is subject to approval by the

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Human Resources Director and the City Manager.

10.01.02 Advancement within the Range
A. Advancement within a classification’s salary range shall normally be granted on the regular employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation submitted by the department head and approved by the Human Resources Director.

B. All new and promoted regular employees shall be granted their first merit increase upon successful completion of the probationary period (see Section 8.02-Probation), with the exception of employees in the Wastewater Collection Maintenance Trainee classification who will receive their first merit increase upon successful completion of six (6) months of active employment at the mid-point of their twelve (12) month probation and no merit increase at the completion of their twelve (12) month probation.

The regular employee shall then be eligible for subsequent merit increases after each full year on paid status, continuing until the top of the salary range is attained.

C. Merit increases shall normally be from one pay step to the next higher pay step. A double step increase may be recommended by the department head based on an employee’s exceptional performance as documented in her/her annual or end of probation performance evaluation. Such recommendation is subject to the approval of the Human Resources Director and the City Manager.

D. A merit increase may be denied by the department head when an employee’s job performance falls below the acceptable work standards for the duties assigned. The department head may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the next review date. If a merit increase is granted at that time, the employee’s original review date shall change and they shall be eligible for the next merit increase after one year on paid status from the new review date. If a merit increase is denied notice shall be given to the Union by mail or other agreed upon process upon request of the employee.

E. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status in excess of 80 hours.

F. When a regular employee’s position is reclassified to a classification with a higher salary range, the employee’s new pay shall be set at the first step of the new range or the next higher step in the new range that provides the employee a salary increase of at least 2.5%. This increase shall have no effect on the employee’s original merit review date.

10.02 SALARY/RETIREMENT (REGULAR EMPLOYEES)

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I) This section shall apply to employees hired on or before May 11, 2012 who are members of CalPERS.

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A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for employees covered by this section shall be based on the single highest year.

B. 2.0% @ 55 Pension Formula
The 2.0% @ 55 pension formula shall be available to all employees covered by this section who are members of CalPERS. Additionally, the City provides the PreRetirement Optional Settlement 2W Death Benefit to employees covered by this section.

C. Required Employee Contribution
Members covered by this section will contribute the employee contribution amount established by CalPERS for the 2.0% @ 55 pension formula. The required employee contribution amount effective July 1, 2013 is 7% on a pre-tax basis. Effective July 1, 2012, employees picked up an additional 1% of PERS (total 8%) on a pre-tax basis.

Effective July 5, 2014, employees shall pick up an additional one and a half percent (1.5%) of PERS (total 9.5%) on a pre-tax basis.

Effective the pay period beginning October 11, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later, employees covered by this section shall have their payment of the employer’s retirement share reduced by 1% (total 8.5%) on a pre-tax basis.

Effective the pay period that begins on September 26, 2026, employees covered by this section shall have their payment of the employer’s retirement share reduced by

0.5% (total 8.0%) on a pre-tax basis.

Effective the pay period that begins on August 27, 2027, employees covered by this section shall have their payment of the employer’s retirement share further reduced by 1% (total 7.0%) on a pre-tax basis.

10.02.02 Employees Hired on or After May 12, 2012 but before January 1, 2013 (Tier II) This section shall apply to employees hired on or after May 12, 2012 but before January 1, 2013 who are members of CalPERS.

A. Final Compensation based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this agreement shall be based on the employee’s highest three year average.

B. 2.0% @ 60 Pension Formula
The 2.0% at 60 pension formula shall be available to all employees covered by this section who are members of CalPERS. Additionally, the City provides the PreRetirement Optional Settlement 2W Death Benefit to employees covered by this section.

C. Required Employee Contribution
Members covered by this section will contribute the employee contribution amount established by CalPERS for the 2.0% at 60 pension formula. The required employee contribution amount effective July 1, 2013 is 7% on a pre-tax basis. Effective July 1, 2012, employees picked up an additional 1% of PERS (total 8%) on a pre-tax basis.

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Effective July 5, 2014, employees shall pick up an additional one and a half percent (1.5%) of PERS (total 9.5%) on a pre-tax basis.

Effective the pay period that begins on September 26, 2026, employees covered by this section shall have their payment of the employer’s retirement share reduced by

0.5% (total 8.0%) on a pre-tax basis.

10.02.03 Employees Hired on or After January 1, 2013 (Tier III) This section shall apply to employees hired on or after January 1, 2013 who are members of CalPERS, in accordance with law.

B. 2% @ 62 Pension Formula
Members covered by this section will contribute the employee contribution amount established by CalPERS for the 2.0% at 62 pension formula. The required contribution amount effective July 1, 2013 is 6.75%. Effective July 1, 2013, employees picked up an additional one percent (1%) of PERS on a pre-tax basis for a total of 7.75%. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section. Employees covered by this section who are classic members as defined by CalPERS may be eligible for a different pension formula.

C. Required Employee Contribution
Effective July 5, 2014, employees shall pick up an additional one and a half percent (1.5%) of PERS on a pre-tax basis above the employee’s legally required contribution as calculated by PERS (total of 11.00% as of the signing of this MOU).

Effective the pay period that begins on September 26, 2026, employees covered by this section shall have their payment of the employer’s retirement share reduced by

0.5% (total 9.50%) on a pre-tax basis.

Effective the pay period that begins on August 27, 2027, employees covered by this section shall have their payment of the employer’s retirement share further reduced

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by 1% (total 8.50%) on a pre-tax basis.

10.02.04 Retirement, All Regular Employees
The City shall maintain the IRS 414(h)(2) provision allowing employees to defer State and Federal Income taxes on their CalPERS contributions.

10.02.05 Sick Leave Conversion
The City will provide the sick leave conversion benefit in accordance with Government Code Section 20965.

10.03 LONGEVITY (REGULAR EMPLOYEES)
Upon completion of ten (10) years of continuous regular service employees shall receive a 2- 1/2% longevity pay increase. Upon completion of fifteen (15) years of continuous regular service employees shall receive an additional 2% longevity pay increase (total 4.50%). Upon completion of twenty (20) years of continuous regular service employees shall receive an additional 2% longevity pay increase (total 6.5%) Longevity is calculated from the date of hire into a regular status position or a fully benefited special status position. It is understood that longevity pay is considered “additional compensation” for purposes of PERS and tax computations.

10.04 WORKING OUT OF CLASSIFICATION (REGULAR EMPLOYEES) The term “working out of classification” is defined as a management-authorized assignment on a temporary basis of a regular employee in a lower classification to a budgeted higher classification. Assignments will be made to qualified employees assuming a significant number of duties of the higher classified position. Whenever reasonably possible, prior to authorizing a working out of classification assignment the supervisor will inform qualified employees of the assignment and request volunteers. The Department may assign working out of classification on a rotational basis when the Department determines such rotational assignment would be appropriate. The purpose of rotation is to promote career ladder development. This article shall also apply for all hours worked in job sharing, job exchanges and other professional development and training opportunities within the City in accordance with Section 9.02-Alternate Schedules/Flex Time, Telework, VTO and Developmental Assignments and not subject to Section A and B of this article. Pay for “working out of classification” shall be as follows:

A. Employees appointed to fill vacant positions will receive working out of class pay beginning the first shift of the assignment, for all hours worked during the assignment.

B. Employees appointed to a position for vacation, sick leave or leave of absence coverage will receive working out of class pay beginning the first full shift of the assignment, for all hours worked during the assignment.

Working out of class pay will be the next highest pay step in the classification to which the employee is assigned. Working out of class pay will not be less than a five percent (5%) increase
C. If the five percent (5%) pay differential above does not result in the employee

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reaching at least the first step of the higher salary range, the employee will be placed at the first step of the higher salary range.

E. All assignments of more than 60 days will be made through a personnel action request as defined by the Human Resources Director and will take effect at the beginning of a pay period, following the first day of the assignment.

F. For employees who are considered new members to CalPERS after January 1, 2013, the difference in pay shall not be considered pensionable compensation pursuant to CalPERS.

10.05 SHIFT DIFFERENTIAL (REGULAR EMPLOYEES)

10.05.01 Evenings
Any employee who is required and authorized by management to work a regularly scheduled shift with at least one hours or more of which fall between the hours of 6:00 p.m. and 6:00 a.m. shall be paid a shift differential of $0.90 per hour or five percent (5%) of base hourly rate for each hour worked within the shift differential period of 6:00 p.m. and 6:00 a.m., whichever is greater.

Evening differential shall not apply to:

A. Paid leave hours, including vacation, sick leave, holidays and other paid leaves, provided in Section 14.00-Leaves of Absence.

B. Hours that are worked between 6:00 p.m. and 6:00 a.m. as a result of call-back, duty assignment, or overtime.

C. Hours that are worked which weekend differential is paid.

10.05.02 Weekends
Part-time and Regular Wastewater and Water Treatment operators who are required and authorized by management to work a regularly scheduled shift with at least one hour or more that falls between 6:00p.m. Friday and 6:00a.m. Monday shall be a shift differential of an additional ten (10%) percent for each hour worked within the shift differential period of 6:00p.m. Friday and 6:00a.m. Monday. Work on a Fixed Holiday, as outlined in Section

11.01 results in hours being banked.

Weekend differential shall not apply to:

A. Paid leave hours, including vacation, sick leave, holidays and other paid leaves, provided in Section 14.00-Leaves of Absence.

B. Hours that are worked between 6:00 p.m. and 6:00 a.m. as a result of call-back, duty assignment, or overtime.

C. Shall not compound with Evening Differential Section 10.05.01.

10.06 LONE OPERATOR DIFFERENTIAL (REGULAR EMPLOYEES)

10.06.01 Water Plant Lone Operator
Water Treatment Operator III’s and IV’s assigned to the Water Treatment Facility will

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receive $4.00 per hour additional shift differential subject to meeting all the conditions listed below:

A. Department of Health Services Grade III Treatment Plant Operator Certification or higher.

B. Fully qualified to operate the Graham Hill Treatment plant without direct supervision as determined by the Superintendent of Water Plant and Production.

C. Works at least four (4) hours without any other qualified Water Treatment Operators present. Water Treatment Supervisor, Chief Plant Operator and Production Superintendent are not considered to be other qualified Water Treatment Operators for this section.

If the above conditions are met, then the shift differential will be paid for all hours worked on assigned “lone operator” shift.

10.06.02 Wastewater Plant Lone Operator
Plant Operator III’s or above assigned to the Wastewater Treatment Facility will receive $4.00 per hour additional shift differential subject to meeting all the conditions listed below:

A. State Water Resources Control Board Grade III Wastewater Plant Operator Certification or above.

B. Fully qualified to work at the City of Santa Cruz Wastewater Treatment Plant as the Lone Operator.

C. Understand and accept the “Working Alone Job Assignments and Scope of Responsibilities for the Lone Operator at the City of Santa Cruz Water Pollution Control Facility.”
D. Works at least four (4) hours without a Senior Plant Operator present (except for callback responses).

If the above conditions are met, then the shift differential will be paid for all hours worked on assigned “lone operator” shift.

10.07 OVERTIME (REGULAR EMPLOYEES)
The Union understands that from time to time regular employees may be directed to work overtime hours. When overtime work is necessary, the City will make an effort to distribute overtime equally among qualified, regular full-time employees. To the extent possible, employees will be given advance notification. An employee may be excused from overtime work for legitimate reasons.

Overtime is defined as all management authorized hours in a paid status in excess of forty (40) hours per week, which are contiguous with the employee’s regular work schedule, excluding voluntary training. Overtime shall be computed at the rate of one and one-half times the base hourly rate or may be converted to compensatory time off at the rate of one and one-half times the hours worked.

Employees covered by the Fair Labor Standards Act (FLSA) are entitled to FLSA overtime which is defined as all hours required by management and actually worked by the employee in

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excess of forty (40) hours in a work period as defined by the City. FLSA overtime is compensated in pay or compensatory time off at one and one-half (1-1/2) times the employee’s regular rate of pay. The regular rate of pay is as defined in the FLSA.

Compensatory time off shall not be allowed to accumulate beyond one-hundred sixty (160) hours at any given time.

Based on IRS tax law under constructive receipt rules an employee may use the following methods to meet the IRS rule.
 An employee with accrued compensatory time off shall be permitted to use such time within a reasonable period in the same calendar year as it was earned after making the request, unless such time off will unduly disrupt the operations of the department.  Roll over any accrued and unused compensatory time earned during the calendar year into a City-sponsored deferred compensation plan anytime during the calendar year.  Cash out all or part of the accrued and unused compensatory time anytime during the calendar year
Any remaining balance will be either rolled over to deferred comp or paid out as described above on the last payday in December.

10.08 CALLBACK (REGULAR EMPLOYEES)
Callback work is defined as work required by management of a regular employee who, following completion of the employee’s work day or work week and departure from the employee’s work site, is unexpectedly ordered to report back to duty or by phone or computer to perform necessary work.

10.08.01 Callback by Phone or Computer
If the employee is able to respond by phone or computer and is not required to report to the worksite, then:

A. For the first response of the day, a minimum of thirty minutes (0.5 hours) of overtime will be paid for actual overtime worked of less than thirty minutes. Thereafter, a minimum of fifteen minutes (0.25 hours) of overtime will be paid for actual overtime worked of less than fifteen minutes.

B. An additional minimum will not be paid if an employee is required to respond to additional call(s) and the time and duration of the response is within the previous minimum.

10.08.02 Callback to Worksite
A. All callback hours shall be paid at the overtime rate. A minimum of two (2) hours of overtime compensation shall be paid for all callback periods of less than two (2) hours.

B. Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.

C. If an employee, who was called back to work and has completed their assignment and left work, is again called back to work, they will not receive another minimum if the time of return is within the previous callback minimum.

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D. Employees who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

10.09 DUTY ASSIGNMENT (REGULAR EMPLOYEES)

10.09.01 Definition
Duty assignment is defined as an assignment to an on-call status for a specified period of time.

While on duty assignment, a regular employee must remain available to be contacted by phone or pager and be able to report to work within a thirty (30) minute period. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act.

10.09.02 Assignment
Duty personnel shall be assigned on a weekly rotational basis from an established list consisting of, but not limited to, qualified volunteers. A voluntary rotation process will be the preferred method of duty assignment selection; however, the City may require duty assignment if there are insufficient qualified volunteers. Prior to making mandatory assignments, the City will notify the Union. Only “qualified” employees may be appointed to duty assignment lists, as determined by the appropriate department head(s). Such qualifications will be based on the nature and requirements of the tasks performed while on duty assignment. With the concurrence of the duty supervisor, duty assignments may be substituted by other personnel on an approved list, provided employees have at least one week between duty assignments.

10.09.03 Compensation
A. Weekdays
Duty personnel shall receive two (2.0) hours of their base hourly salary for a sixteen(16)-hour assignment. If the Alternative Transportation Incentive Program (Section 10.20) is mutually agreed upon to be eliminated on or after July 5, 2014, then Duty personnel shall receive an additional one half (0.5) hour of their base hourly salary for a sixteen(16)-hour assignment, for a total of two and a half (2.5) hours.

B. Weekends
Duty personnel shall receive three (3) hours of their base hourly salary for a twentyfour (24) hour assignment. If the Alternative Transportation Incentive Program (Section

10.20) is mutually agreed upon to be eliminated on or after July 5, 2014, then Duty personnel shall receive an additional one (1.0) hour of their base hourly salary for a twenty-four hour assignment, for a total of four (4.0) hours.

C. Holidays (City Designated Eight (8) Hour Holidays)
Duty personnel shall receive eight (8) hours of their base hourly salary for a twenty-four (24) hour assignment.

D. Holidays (City Designated four (4) Hour Holidays)
Duty personnel shall receive four (4) hours of their base hourly salary for a twenty-hour assignment.

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the hours of twelve a.m. (12am) and seven a.m. (7am), where hours worked will be compensated at two (2) times base pay. A minimum of two (2) hours of overtime will be paid for callouts of less than two (2) hours. An additional minimum will not be paid if an employee is required to perform an additional duty call and the time of return is within the previous duty call minimum.

10.09.04 Fatigue Pay
A. The intent of fatigue pay is to provide a sufficient time for rest between a significant period of work and the start of the next regularly schedule work shift by replacing regularly scheduled straight time hours, of actual hours worked, with paid rest time at the regular paid compensation, as indicated below.

B. If the assigned duty person or crew member assisting the duty person is required to respond to a call that requires them to work hours between twelve a.m. (12am) and seven a.m. (7 a.m.), the employee shall be entitled to rest period as follows prior to returning to work:

Fatigue pay requires a two-hour minimum of work assignment as defined by Duty Assignment, Section 10.09.01.

Hour Range Worked Between Fatigue Time Owed:

Two (2) Hour Two (2) Hour Fatigue Pay
Minimum
Three (3) Hour Three (3) Hours
Four (4) Hours or More
12a.m.-7a.m
Eight (8) Hours
If the assigned Duty person or crew member works four (4) hours or more on a regularly scheduled day off or City Holiday, and any portion is past midnight, the employee(s) shall be entitled to an eight (8) hour rest period.

C. If any portion of the rest period occurs during the employee’s regular schedule, the employee shall receive regular paid compensation for that time.

D. An employee shall have the option of receiving compensatory time off for the duty assignment compensation and hours worked.

10.10 BILINGUAL PAY
The City shall provide payment of an additional $60 per pay period when the City certifies an employee (regular or temporary) as qualified and the position requires the use of bilingual language skills. This provision does not apply to the City translator.

10.11 CITY TRANSLATOR (REGULAR EMPLOYEES)
The City Manager may appoint one employee who has demonstrated fluency in three or more languages, including Spanish and English, to serve as translator for the City and to receive an additional pay of $100 per month while so acting.

10.12 OVERPAYMENTS AND REPAYMENT OF FUNDS

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The City will not attempt to recover overpayments made to regular and temporary employees as a result of an error made by the City which are over 12 months old.

A. Overpayments
If an overpayment or unauthorized payment has been made to a City employee, the City shall notify the employee in writing and supply the employee with the documentation used to determine the overpayment.

If the employee contends that any portion or the entire amount is not owed, he or she may request a meeting with the City to attempt to resolve the disagreement. The employee may have a representative attend such meeting(s) with him or her.

B. Repayment of Funds
An employee will pay no penalties, fees or interest as a result of the overpayment when the City and employee mutually agree upon how the repayment will be made. The employee shall have the right to select one of the following options for repayment:

1. Lump sum payment with the date mutually established by the employee and the City (lump sum payments must be made if the total amount due is 5 percent or less than the employee’s biweekly gross salary).

2. Biweekly installment payments through payroll deduction (installment payments must be a minimum of $10 and repayment must be completed within twenty-six pay periods).

3. Any other repayment arrangement mutually agreed upon between the City and the employee.

The final agreement on the repayment will be committed to writing (including the lump sum payment date, or the biweekly amount and the beginning and ending date of the installment plan identified).

C. Referral to Collections
The City may refer an employee to a collection agency or seek payment only when the employee, after being duly notified of the overpayment and having had the opportunity to review the relevant documentation, refuses to agree to a repayment of the amount owed.

The employee will be notified of the referral and the City reserves all its rights to seek repayment and pursue all remedies under law including interest as it would for any other debtor.

10.13 REIMBURSEMENT FOR LICENSES AND CERTIFICATES (REGULAR EMPLOYEES) Regular employees shall be reimbursed for the cost of licenses and certificates which are required to perform their job duties. No reimbursement shall be made for fees of less than $5.

Employees whose job description requires a class A or B driver’s license (except Senior Water Distribution Operators or Distribution Operators as their base pay includes this premium) shall receive $50 per pay period provided they possess and maintain said required license in the

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performance of their job duties.

For classifications requiring certification at the Wastewater Treatment Facility and in the Wastewater Collections division, the City will pay one time on behalf of eligible employees the up-front costs associated with sitting for the applicable test. If the employee fails the test, all subsequent up-front costs associated with sitting again for the applicable test are the employee’s responsibility. Once the employee has passed the test, the City will pay, on behalf of eligible employees, the fee required to obtain the certificate itself.

10.14 DEPARTMENTAL TECHNOLOGY COORDINATOR DIFFERENTIAL (REGULAR EMPLOYEES) A regular employee assigned as a Departmental Technology Coordinator by their Department Head will receive $60 premium pay per pay period during the period of such assignment.

Such differential will become effective the first full pay period of the assignment.

10.15 LEAK DETECTION (REGULAR EMPLOYEES)
The Director of Water may, upon approval of the Human Resources Director, appoint a regular employee to be responsible for the leak detection program and to receive an additional $23.08 per pay period while performing these duties effective the first full pay period of the assignment.

10.16 WATER DEPARTMENT SCADA SYSTEM COORDINATOR (REGULAR EMPLOYEES) The Director of Water may, upon approval of the Human Resources Director, appoint one regular employee to be responsible for the Water Treatment Plant SCADA system and receive a 5% additional compensation while performing these duties effective the first full pay period of the assignment.

10.17 WATER DEPARTMENT STORE KEEPER (REGULAR EMPLOYEES) The Director of Water may, upon approval of the Human Resources Director, appoint one regular employee to be responsible for the Water Distribution storekeeper function and to receive an additional $23.08 per pay period while performing these duties effective the first full pay period of the assignment.

10.18 SCUBA DIVING PREMIUM PAY (REGULAR EMPLOYEES)
Regular employees who perform scuba diving duties shall receive double time their hourly rate of pay while diving. After the first hour, payments shall be based on quarter-hour increments.

10.19 CONFINED SPACE RESCUE PREMIUM PAY (REGULAR EMPLOYEES) This Premium Pay is paid for positions which involve toxic or hazardous conditions.

After receiving appropriate training provided by the City, all regular employees whose job description provides that they can perform confined space duties shall receive compensation of time and one half (1½) of their base hourly rate of pay for all hours worked while performing confined space duties.

The hourly rate of pay for performing a confined space entry while on Overtime (MOU Section 10.07), Callback to Worksite (MOU Section 10.08.02), or Duty Assignment hours actually worked (MOU Section 10.09.03(E) will be calculated as time and one half (1½) the underlying overtime rate (two and one quarter {2¼} of the base hourly straight time rate.

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Hours worked performing confined space entry under this section is calculated as follows, using the times entered on the Confined Space Entry Permit:
 The calculated time begins when the first participant physically enters the confined space and ends when the last participant leaves the confined space, as recorded on the “Confined Space Entry Permit” (if all employees should leave the confined space at any time, the calculated time will cease until such time as a participant may re-enter the confined space).  The individual time segments will be added together to determine the total duration of the confined space entry event.

Example:
0900 Pre-entry checklist complete.
0915 A enters confined space; B and C are attending; clock starts. 0923 A exits confined space; clock stops; segment elapsed time = 8 minutes. 0932 A and B enter confined space; C is attending; clock starts again. 0945 B exits space; clock continues to run since A remains in the confined space. 0956 A exits confined space; clock stops; segment elapsed time = 24 minutes; this Confined Space Entry Event is now over.

Total time = 32 minutes
All participants in the event (A, B, and C) will enter the same cumulative total of thirty-two (32) minutes on their time sheets.

10.20 ALTERNATIVE TRANSPORTATION INCENTIVE PROGRAM (REGULAR EMPLOYEES) In order to encourage use of public transportation and other alternative modes of transportation, the City will provide up to thirty percent (30%) reimbursement per regular employee of annual eligible transportation related expenses, subject to a cap, as defined in the City’s APO II-53- Alternative Transportation Incentive Program.

10.21 PLANNING DEPARTMENT CERTIFICATION COMPENSATION INCENTIVE PREMIUM PAY (REGULAR EMPLOYEES)
“Certification Compensation Incentive” (CCI) is a management-authorized remuneration for obtaining and maintaining recognized professional certification for Inspection Services Regular Employees. Professional certification shall be from a state or nationally recognized agency, assuring certification promotes a higher level of competency which benefits the life, health and safety of the community. CCI will be made to qualified employees when evidence of recognized professional certification is approved by the Chief Building Official and Department Director.

A. Upon receipt of employee-provided certification, approval of professional certification will be verified by the department:

1. Professional certification shall be from a recognized state or nationally recognized agency acceptable to the City of Santa Cruz, such as International Code Council (ICC), International Association of Plumbing and Mechanical Officials (IAPMO), Council of American Building Officials (CABO) and California Division of the State Architect.

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2. Professional certification shall be part of a core responsibility of the employee.

3. Professional certification shall be in distinct areas of expertise and shall not be duplicative. Therefore, only one certification per professional category is acceptable.

4. Professional certification shall be maintained active and in good standing. The certification holder shall meet the ongoing maintenance requirements of the approved issuing agency. This means renewing applicable certifications every three (3) years by completing the required number of CEU’s based upon the number and/or type of certifications as prescribed by the approved issuing agency.

5. Certification costs will be reimbursed with this program. It should be noted that this reimbursement is more generous than current MOU guidelines where reimbursement is provided for required certification only.

6. As this is a voluntary program, paid release time will not be provided; approval of employee requests for personal paid time off during working hours will not be unreasonably denied.

B. CCI will be calculated as follows:

1. An increase of two percent (2%) of the employee’s base salary will be applied for each approved professional certification.

2. A maximum number of professional certifications will be accepted as outlined in this section per job title, provided the base certification(s) requirement is met:
a. Building Inspector and Assistant Plans Examiner are eligible for up to five (5) paid certifications, after one (1) residential base certification (Building Inspector or Building Plans Examiner) is obtained.
b. Senior Building Inspector and Senior Plans Examiner are eligible for up to five (5) paid certifications, after one (1) combination residential and commercial base certification (Building Inspector or Building Plans Examiner) is obtained. c. Supervising Building Inspector and Supervising Plans Examiner are eligible for up to four (4) paid certifications, after two (2) combination residential and commercial base certifications (Building Inspector or Building Plans Examiner, plus either Mechanical, Electrical or Plumbing) are obtained.

C. Upon department approval and in accordance with Administrative Procedure Order (APO) II-17 a completed and approved Premium Pay Form is required before any change to an employee’s status and/or pay rate.

D. The department will verify maintenance of certification annually.

E. Lapse of Certification/Current Employees

1. If certification as part of this premium pay program lapses, the premium pay will be discontinued in the pay period in which the certification lapsed or became inactive.

2. To clarify, for existing employees as of the effective date of this policy, because this is a voluntary program, current employees in the eligible classifications will not be required to obtain certification which are eligible for premium pay, similar to anyone in the classification. They will be encouraged to do so via this incentivized premium pay program.

10.22 HAZARDOUS MATERIALS PREMIUM PAY (REGULAR EMPLOYEES) The City will provide a fifty dollar ($50) per month premium pay for all employees who may be exposed to dangerous chemicals and/or biohazardous materials as indicated in the job classification description and identified in Exhibit I. The Parties agree Exhibit I shall include

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classifications for Parking Enforcement and Downtown Library staff.

SECTION 11.00 – HOLIDAYS (REGULAR EMPLOYEES)
Part-time employees shall receive the following holiday benefits on a pro-rated basis, given the ratio of their budgeted work schedule to full time. (Except as modified by Section 9.04-Part-Time Employees.)
All employees will accrue paid holiday time for use in the pay period with the holiday. The accrual will be in the amount listed for the holidays listed in Section 11.01 (Fixed Holidays) of this MOU.

Employees must be in paid status the day before and the day after the holiday, and for at least 50% of the pay period, to accrue their holiday hours.

Employees are required to use holiday leave on holidays they do not work, even if they are on leave or are sick. The use of vacation, compensatory time, excess holiday, or other leave time on holidays is only allowed to make up the difference between the hours of holiday granted and the amount of hours the employee is scheduled to work.

11.01 FIXED HOLIDAYS
Employees within the unit shall have the following specific holidays with pay:

Twelve 8-Hour Holidays
New Year’s Day
Martin Luther King’s Birthday
President’s Day
Cesar Chavez Dav
Memorial Day
Independence Day
Labor Day
Juneteenth
Veteran’s Day
Thanksgiving Day
Friday after Thanksgiving
Christmas Day
Two 4-Hour Holidays)
The last four (4) hours of the work shift are Holiday hours for Christmas Eve.

The last four (4) hours of the work shift are Holiday hours for New Year’s Eve.

Except as provided for in Christmas Eve and New Year’s Eve, when a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the preceding Friday shall be observed.

The City shall recognize all other days appointed by the President of the United States or the Governor of the State of California as a nationwide or statewide public holiday provided specific prior approval is received from the City Council.

11.02 FLOATING HOLIDAYS
In addition to the above fixed holidays, employees shall accrue up to twenty-four (24) hours of

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floating holidays per fiscal year. Floating Holiday accrual shall be on a monthly basis. Fulltime employees shall accrue floating holiday at the rate of two (2) hours per month. Part-time employees shall accrue floating holiday on a pro-rated basis, given the ratio of their budgeted work schedule to full time (e.g., all employees working in a 20 hour/week position shall receive one (1) hour of floating holiday each month).

Floating Holidays may only be taken with prior approval.

Accumulation of Floating Holidays shall not exceed twenty-four (24) hours. Upon separation, the employees shall receive their unused accrued Floating Holiday.

11.03 HOLIDAY WORK
Due to the public service nature of City departments, some positions are required to work holidays on either a regularly assigned or emergency basis. The purpose of this section is to provide extra compensation to employees who are directed to work on any of the fixed holidays as listed in Section 11.01 – Fixed Holidays. This article applies to employees normally required to work on a fixed holiday (excluding observed holidays), based on a regular shift or rotating schedule, and to employees not normally required to work on a holiday, but who are directed to do so due to an operational need.

All of the above identified employees shall be compensated at the overtime rate of pay for all hours actually worked on the holiday. In addition, the employee shall receive their holiday pay or equivalent holiday time off at a later date, at the option of the employee.

11.04 HOLIDAY ON REGULAR DAY OFF
An employee whose regular day off falls on a fixed holiday shall receive equivalent holiday time off at a later date.

11.05 HOLIDAYS DURING VACATION
Fixed holidays which occur while an employee is on paid vacation leave shall be charged to holiday hours and not the employee’s vacation balances.

11.06 HOLIDAY PAY-OFF
On the last pay day in June each year, any fixed holiday hours not taken prior to the twentysixth (26th) pay period of the fiscal year shall be credited to the employee’s vacation balance not to exceed the vacation accrual maximum set out in Section 12.04 - Rate of Maximum Vacation Accrual.

SECTION 12.00 – VACATION (REGULAR EMPLOYEES)

12.01 ACCRUAL
Vacation accrual will be on a per pay period basis beginning at date of hire as a regular employee; however, no vacation time may be taken until a new employee has successfully completed six (6) months of paid service. An employee must be in paid status for at least fifty percent (50%) of a pay period to earn their vacation accrual. Annual vacation accrual for fulltime employees working forty (40) hours per week shall be based on continuous regular service, as follows:

Up to five (5) years: 80 hours

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After five (5) years and up to ten (10) years: 120 hours After ten (10) years: 160 hours, plus 8 hours for each year of service after ten (10) years, to a maximum of 200 hours.

Part-time employees shall accrue vacation on a pro-rated basis given the ratio of their budgeted work schedule to full time (e.g., employees with up to five (5) years of continuous regular service working in a twenty (20) hour per week position shall accrue forty (40) hours of vacation annually.

12.02 SCHEDULING OF VACATION
Vacation time may be used in increments of one hour or more. Whenever appropriate, vacation scheduling shall be done within the time frame established by the division. Vacation may be taken with twenty-four (24) hours prior notification and approval of the supervisor. A reasonable effort will be made to accommodate the employee.

Vacation periods of qualified employees shall be set with regard to the wishes and seniority of the employee, consistent with the efficient operations of the various City departments and divisions. Any disputes shall be resolved by the department head.

12.03 ILLNESS DURING VACATION
An employee who becomes ill or is hospitalized while on vacation and provides a written statement from a licensed medical practitioner to this effect shall have the period of illness charged against sick leave and not vacation leave.

12.04 RATE OF MAXIMUM VACATION ACCRUAL
Vacation accumulation may not exceed twice the annual rate of accrual, unless prior written authorization for a specified amount of hours and a specified amount of time is received from the Department Head and the Human Resources Director. Employees will receive at least sixty (60) days’ notice prior to exceeding their maximum accrual rate.

SECTION 13.00 - SICK LEAVE (REGULAR EMPLOYEES)

13.01 DEFINITION
The purpose of this section is to provide paid leave time to be used by employees in the event of their need for preventive healthcare, care of an existing health condition, as victims of domestic violence, sexual assault or stalking, and for the necessity of designated family members for the reasons specified below in Section 13.02.01-Family Sick Leave.

Employees may also use up to twenty-four (24) hours of their paid sick leave per fiscal year as specified in Section 14.01.01-Personal Business Leave and up to one (1) scheduled work week as specified in Section 14.01.02-Bereavement Leave.

13.02 ACCRUAL AND USE
Full-time employees shall accrue sick leave at the rate of eight (8) hours per month. An employee must be in paid status for at least 50% of a pay period to earn their sick leave accrual.

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Part-time employees shall accrue sick leave on a pro-rated basis, given the ratio of their budgeted work schedule to full-time (e.g., all employees working in a 20 hour/week position shall receive four (4) hours of sick leave each month, except as modified by Section 9.04-PartTime Employees).

When accrued sick leave must be used, an employee will notify their immediate supervisor of the leave and its probable duration within one hour after the regular scheduled starting time.

Sick leave shall not be granted unless such report or advance reporting has been made; provided, however, that the department head may grant an exception to this policy when it is determined that the employee’s failure to notify was due to extreme circumstances beyond the control of the employee.

Employees shall be eligible for the sick leave advance program as specified in the Personnel Rules and Regulations rule #10.8-Sick Leave Depletion Allowance.

13.02.01 Family Sick Leave
Up to forty-eight (48) hours of accrued sick leave per fiscal year may be used when the employee’s personal attendance is required to care for a family member for preventive care, care of an existing health condition, or if they are a victim of domestic violence, sexual assault, or stalking. For the purposes of this provision, immediate family is defined as a wife, husband, son, daughter, father, mother, brother, sister, registered principal domestic partner, step-father, step-mother, grandparent, grandchild, or other close relation residing in the employee’s household. This forty-eight (48) hours limitation may be extended by the Human Resources Director with good cause.

13.03 LIMITATIONS
Upon advance written notice for a specific period and in conjunction with progressive discipline, a department head may require an employee to submit verification of an illness or injury from a licensed medical practitioner prior to any use of sick leave being authorized.

In cases of chronic absenteeism or medical work restrictions, the Human Resources Director may have an employee examined by a City-selected physician. The City shall pay the cost of any such medical exam.

13.04 SICK LEAVE INCENTIVE PROGRAM
On the last pay day in June each year, employees who have accumulated more than 400 hours of sick leave will “bank” all hours in excess of 400. Employees may instead choose to convert sick leave hours in excess of 400 to vacation hours at the rate of 33% of their current base rate of pay (not to exceed the Vacation Accrual Limit set out in Section 12.04-Rate of Maximum Vacation Accrual). The City will notify employees at least two (2) weeks before banking excess hours of sick leave.

SECTION 14.00 - LEAVES OF ABSENCE (REGULAR EMPLOYEES)
All leaves provided in this section shall be granted to full-time employees at the rates described.

Part-time employees shall receive paid leaves of absence on a pro-rated basis, given the ratio of their budgeted work schedule to full time.

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14.01 PAID LEAVES OF ABSENCE

14.01.01 Personal Business Leave
Employees may use up to twenty-four (24) hours per fiscal year of their accrued sick leave for the purpose of personal business which shall not include recreational activities.

14.01.02 Bereavement Leave
The purpose of this section is to provide paid leave for regular employees when they are bereaved at the death of a family member and this loss has had a temporary effect on their ability to continue their daily work performance.

A leave of absence with pay of up to forty (40) hours per incident may be granted an employee by the department head in the event of a death in the employee’s immediate family which shall for the purpose of this article include spouse, parent, son, daughter, grandparent, sibling, mother-in-law or father-in-law, brother-in-law, sister-in-law, grandchild of the employee or spouse, son-in-law, daughter-in-law, grandparent-in-law, registered Principal Domestic Partner, or other close relation residing in the employee’s household.

Additional leave equivalent to one (1) scheduled work week, chargeable to accrued sick leave, may be taken by an employee who needs additional time off in connection with a death in the family (as defined in this article).

14.01.03 Jury Duty
A regular employee required to report for jury duty or to answer a subpoena as a witness in their capacity as a City employee, except where the employee is suing the City, shall be granted a leave of absence with pay for actual time spent in court and in related travel, not to exceed the number of hours in the employee’s normal workday and work week. Employees assigned to swing, graveyard or other non-standard shifts shall receive equivalent time off when performing jury duty on their scheduled work day on the day the jury duty is performed. An employee must notify their supervisor of the expected duration of the absence and must present to the department head official documents supporting such duty. An employee shall reimburse the City for any jury services or witness fees received except mileage or subsistence allowance. This section shall not apply to grand jury service.

14.01.04 Absence for Examination
An employee shall be granted paid release time to participate in any part of an examination process for promotion or transfer within the City workforce that is scheduled during the employee’s regular hours of work. The employee shall notify their immediate supervisor twenty-four (24) hours in advance of such an absence.

14.01.05 Blood Donations
An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during regularly scheduled hours of work. The length of such leave must be approved by the supervisor and is dependent upon the nature and scheduling of the work performed and the travel distance required.

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14.01.06 Military Duty
An employee who is a member of the National Guard or any reserve component of the armed services of the U.S. shall be granted up to thirty (30) calendar days per fiscal year of paid leave for any reserve training or active duty scheduled during the employee’s regular work hours.

The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the “notice” for such duty. All other military leaves shall be granted pursuant to relevant State and Federal statutes.

When employees who have at least one year of City service are called up to active-duty military service those employees shall receive the difference between military pay and their current base salary for a period of six (6) months in addition to the initial thirty (30) calendar day pay. The employee will be entitled to receive this pay upon submission of proof of active duty and proof of military pay, in accordance with the applicable City procedures.

Employees who exhaust the paid leave benefits described above may take unpaid leave pursuant to Section 14.02.01 and are not required to sue vacation or other similar leave.

14.01.07 Workers’ Compensation
An employee who is entitled to continued temporary disability payments may use accumulated paid leave to supplement such payments to an amount equal to their net salary. After depletion of any accrued paid leaves, the employee shall be eligible for benefits only in the amounts prescribed by the workers’ compensation laws.

The Union and the City recognize that work-related injuries/illnesses can often be prevented.

Therefore, work-related injuries/illnesses shall be an ongoing agenda item for the Citywide Safety Committee. Proactive, preventive measures may be recommended by the Committee.

The Committee will also make recommendations on appropriate way(s) of reviewing workers’ compensation claims.

14.01.08 Paid Birth/Adoptive Leave
An employee is entitled to forty (40) hours leave with pay – prorated for part-time employees – at or about the time of the birth of the employee’s child or at the time of adopting a child.

The paid leave shall be within two (2) months of the birth or adoption. This leave will be considered a part of the time allotted to family leave as authorized in Section 14.02.03-Family Leave.

14.01.09 Critical Incident/Recovery Leave
Employees are guaranteed up to eight (8) paid hours off to respond to traumatic workplace incidents such as assault, sexual harassment, and death at the worksite. This provision is governed in accordance with the Critical Incident Recovery Leave and Critical Incident Response policy APO. The City and Union shall meet and confer on the creation of the APO.

14.02 UNPAID LEAVES OF ABSENCE

14.02.01 Medical or Personal Leave
Leave of absence without pay will normally be granted to an employee in critical situations such as extended illness, disability, or personal emergency and may be granted in noncritical situations where such absence would not be contrary to the best interests of the City.

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Approvals of all such leaves of absence are at the sole discretion of management. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves, except that employees on medical leave may retain up to eighty (80) hours of accrued vacation and employees on Military Leave pursuant to Section 14.01.06 are not subject to the leave depletion requirement.

The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager. No vacation, holidays, sick leave, or any other paid benefit shall be accrued or earned during such leave. All requests for unpaid leaves of absence must be made in writing and include specific begin and end dates for the leave. Department heads shall grant leaves of absence requests within their department in a consistent and equitable manner. When requested, the department head shall meet with the employee to review the reasons for denial.

14.02.02 Pregnancy Disability Leave
An employee may take a leave of absence of up to four (4) months in length for the purpose of pregnancy disability leave. The employee must provide adequate medical certification regarding any work restrictions that may exist prior to or after the birth.

Requests for pregnancy disability leave must be made in writing to the department head at least thirty (30) days in advance of the anticipated starting date. Such requests must include specific beginning and ending dates for the leave. Starting dates should be as accurate as possible barring any unforeseen medical issues related to the pregnancy or earlier or later birth than anticipated. Any requests for extension of pregnancy disability leave must be made in writing to the department head at least ten (10) calendar days prior to the scheduled end of the existing leave.

The employee may elect to, or in some cases be required to, use accrued paid leaves either before or after an approved pregnancy disability leave, within the use limitations of those leave provisions. No combination of pregnancy disability leave, family leave, sick leave or vacation may exceed one (1) year total or seven (7) months post-partum.

Any additional post-partum leave, not to exceed one (1) year total, may be approved by the City Manager or his designee after consideration of the nature of the request and the operational needs of the department.

Upon return to work, the employee shall be assigned to the same classification but not necessarily to the same department.

The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager and may not exceed a total of twelve months.

14.02.03 Family Leave

1. In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible employees for up to twelve (12) weeks (continuous or cumulative) per rolling twelve (12) month period measured backward) for any one or more of the following reasons:

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A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care including the child of a domestic partner (leave for this reason must be taken within the twelve (12) month period following the child’s birth or placement with the employee);

1. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled is limited to twentyfour (24) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees’ child or child of the employee’s domestic partner.

B. In order to care for a spouse, domestic partner, child, parent, parent-in-law, grandparent, grandchild or sibling of the employee who has a serious health condition;
C. The employee’s own serious health condition that makes the employee unable to perform any one or more of the essential functions of their position.

D. Military family leave, which includes:

1. “Qualifying Exigency Leave” may be taken if the employee’s spouse, son, daughter, or parent is on covered active duty or called to covered active duty status in the Regular Armed Forces during deployment to a foreign country or in the National Guard and Reserves during deployment to a foreign country under a call or order in support of a contingency operation; qualifying exigencies may include short-notice deployment, attending certain military events, arranging for alternative childcare and school activities, addressing certain financial and legal arrangements, attending certain counseling sessions, rest and recuperations, and attending post-deployment reintegration briefings.

2. “Military Caregiver Leave” of up to twenty-six (26) workweeks in a twelve (12) month period may be taken by an eligible employee who is the spouse, son, daughter, parent, or next of kin of a “covered servicemember”, in order to care for the covered servicemember with a serious illness or injury incurred or aggravated in the line of duty while on active military duty.
a. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave to care for a covered servicemember, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-six (26) workweeks during any twelve (12) month period.

2. Conditions covering the leave shall include the following:

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C. Employees are required to give at least thirty (30) calendar days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

D. Employees are required to use accrued vacation as a part of the family leave period. Use of sick and other appropriate paid leave is not required, but may be used pursuant to the applicable provisions of this Memorandum of Understanding.

E. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see section 14.02.02- Pregnancy Disability Leave).

F. Employees retain “employee” status while on family care leave. The leave does not constitute a break in service for purposes of longevity, and/or seniority.

Upon return to work, employee will be reinstated to an equivalent position with equivalent pay and benefits.

G. Any request for additional leave may be made pursuant to Section 14.02.01- Medical or Personal Leave. Requests for leave time using multiple time off provisions may not exceed the total amount allowed pursuant to Section

14.02.01-Medical or Personal Leave.

H. Any other conditions or interpretations of this leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

14.03 CONTINUATION OF INSURANCE BENEFITS DURING UNPAID LEAVES OF ABSENCE City sponsored insurance benefits may be continued during unpaid leaves of absence under the following conditions:

14.03.01 Personal Leave
The City shall continue to pay benefit premiums during a personal leave of less than thirty (30) calendar days.

For leaves of more than thirty (30) calendar days, employees may continue premium payments at their own cost, in accordance with appropriate PERS medical plan provisions.

14.03.02 Medical Leave
The City shall continue to pay benefit premiums during the entire length of a medical leave of absence including pregnancy disability leave.

14.03.03 Family Leave
Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

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SECTION 15.00 – BENEFITS (REGULAR EMPLOYEES)

15.01 MEDICAL BENEFITS
A. Cafeteria Plan
The City will provide medical insurance through the California Public Employees’ Retirement System (CalPERS). The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

Employees enrolled in other plans will receive a premium equal to the greater of 95% of the Bay Area Region Blue Shield HMO or PERS Platinum. In no event will employees be credited with cash based on the plan chosen. In the event that either the Blue Shield Access+ HMO or the PERs Platinum plans are no longer available, the City and the Union shall meet and confer to designate a similar cost plan as the benchmark.

B. Optional Benefits
Through the Cafeteria Plan, employees may enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical Reimbursement Account (MRA)

2. Dependent Care Reimbursement Account (DCAP)

3. Cancer and Critical Illness Protection Insurance
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

4. Accident Protection Insurance

5. Additional Life Insurance

6. Long Term Care Insurance

15.02 DENTAL INSURANCE
The City shall provide a dental plan for employees and their eligible dependents at no cost to employees with a maximum benefit of $1,700 per covered individual per calendar year.

15.03 VISION
The City shall provide a vision plan for employees and their eligible dependents at no cost to employees. Coverage will include an annual eye examination and lenses. Contacts or frames will be covered every two years.

15.04 LONG TERM DISABILITY
The City shall contribute full cost of the City-sponsored long-term disability program for employees working 20 or more hours per week. The plan will pay 66.6667% of the employee’s monthly earnings (as defined in the LTD contract) to a maximum benefit of $4,000.00 per

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month.

15.04.01 Short Term Disability
The City will provide to SEIU represented employees CA SDI and STD Plan Option #9 (30 day EP to dovetail with LTD 90 day EP, 24-hour coverage).. Effective the pay period beginning October 11, 2025, or the pay period when council approves the successor MOU in open session, whichever is later, employees shall contribute 1% of their base salary through payroll deductions to cover the cost of SDI benefits.

15.05 PART-TIME EMPLOYEES -BENEFITS PRORATION
The City shall pay a pro-rated share of medical, dental, vision and life insurance premiums for part-time employees. Except as modified by Section 9.04-Part-Time Employees, the City’s pro-rated share of the premiums shall be based upon the proportion of the part-time employee’s hours in relation to full time equivalency (FTE)* (e.g., a 24 hour per week position is .6 FTE; an employee in a .6 FTE position will receive 60% of the premium paid by the City for a full time employee). Part-time employees shall pay the balance of the premiums on a pre-tax basis unless the employee elects to pay the balance on a post-tax basis. *Full time equivalency, or FTE, is the ratio of an employee’s budgeted work schedule to fulltime work. Effective September 3, 2011 the employee paid pro-rated share of medical, dental, vision, and life insurance premiums shall be fixed at the 2011 premium plan rates.

15.06 MEDICAL PLAN
Each unit member participating in a medical plan will make an additional $29.50 contribution per pay period towards the cost of health care benefits beginning with the pay period containing July 5, 2015. This pre-tax contribution is made during pay periods where employee deductions for health care benefits are taken (24 pay periods).

15.07 RETIREE HEALTH PROGRAM
A. Retiree Medical Plan
Covered employees who retire under the provisions of the City’s contract with CalPERS, are currently eligible to continue CalPERS medical coverage. The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

B. Retiree Medical Incentive
Employees who receive a regular service retirement from CalPERS and have at the time of retirement at least ten (10) years of continued service with the City and are at least fifty five (55) years of age, will receive a retiree medical incentive in the amount of $100.00 per month. This incentive will be paid during any period the retiree maintains CalPERS medical coverage and until such time as the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age. If coverage is dropped and subsequently re-started it is the retiree’s responsibility to give the City written notice; payment of the incentive will be re-started beginning with the month in which the City receives written notice. If notice is received in a month after which coverage was re-started there will be no retroactive payment of the incentive for that/those month(s).

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15.08 LIFE INSURANCE
The City shall provide a $20,000 term life insurance policy for employees.

15.09 UNIFORM ALLOWANCE
The City shall provide required uniforms at its own expense.

The City will replace worn or damaged uniforms, providing the employee returns the damaged or worn uniform to their supervisor.

Routine care and maintenance will be provided by the City. With departmental approval, employees may provide their own uniform care and maintenance.

15.10 EQUIPMENT MECHANIC TOOLS
Full-time equipment mechanics, equipment service workers, and Recycling Center Maintenance Mechanics are required to own and maintain a full set of mechanic’s tools up to 3/4" (basic tools). All larger tools and specialized tooling will be furnished by the City.

The City agrees to replace any personal tools stolen on City property, provided a police report is filed. Broken basic tools will be replaced at City expense provided the mechanic enters on file with garage management an inventory list of tools owned by them and housed in the City garage.

Full Time equipment mechanics and equipment service workers required to supply tools necessary for performance of their job will be paid a tool reimbursement allowance not to exceed $2,000 per year. All tool purchases are subject to prior approval by a department representative. This allowance shall be paid during the month of March of each year.

Part-time and temporary classifications may receive a prorated amount based on operational need as determined by the Department.

15.11 PRINCIPAL DOMESTIC PARTNERS
The City will provide medical, dental and vision benefits to employees with Principal Domestic Partners equivalent to those provided to an employee’s Spouse. Employees may enroll their eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to the eligibility requirements established by either CalPERS or the City and subject to the tax regulations of the State of California and the Internal Revenue Service of the United States Government.

SECTION 16.00 – SAFETY (REGULAR AND TEMPORARY EMPLOYEES)

16.01 INTENT
The City intends to meet its obligation under the California Occupational Safety and Health Act and shall adopt and use reasonable safeguards, devices and practices for safe employment.

Responsibility for promoting safety practices is shared equally by the City and its employees.

The City will provide appropriate safety training courses and may place reasonable requirements of prior training and/or certification before employees engage in certain activities.

Employees shall report unsafe working conditions and shall not be penalized for refusal to work

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under conditions where adequate safety precautions have not been taken. Any regular employee receiving disciplinary action as a result of refusing to work under those conditions has the right to appeal through the disciplinary appeal provisions of this Memorandum of Understanding.

In order to ensure that health and safety hazards are dealt with on a timely basis, the following procedure shall be used to deal with potential hazards.

A. Employees shall report health and safety hazards to their immediate supervisor upon discovery and in accordance with appropriate City Administrative Procedures. If the immediate supervisor is unable to abate the hazard, they shall refer the matter to the department/division manager, or
B. Employees may use the Safety Communication System as provided in the City’s Administrative Procedure Order II-62 Injury and Illness Prevention Program.

16.02 SAFETY COMMITTEE
One third of the Citywide safety committee shall be from the Service employees’ unit. The Union may appoint one temporary worker to serve on the Citywide Safety Committee. This committee shall meet at least quarterly to consider potential or actual health, safety and training matters. Unit members shall serve on the safety committee without loss of compensation.

The safety committee shall be apprised of all reported hazards, their status, and resolution of the issue(s).

16.03 SAFETY BOOTS
The City shall provide safety boots/shoes for regular and temporary employees in the classifications that require wearing them as shown in Exhibit E. The City may establish administrative procedures for the selection and purchase of such boots/shoes. All eligible employees will be required to wear safety boots/shoes while on duty unless granted a medical exemption. Safety boots/shoes shall not be worn for non-work related purposes. Boots/shoes shall be replaced on an as-needed basis up to the current annual limit of $250. If feasible, the City will offer a choice of different styles of boots/shoes.

SECTION 17.00 - REDUCTION IN FORCE (REGULAR AND TEMPORARY

EMPLOYEES)

17.01 LAYOFFS
The City reserves the right to reduce its workforce by laying off employees for reasons of economy or changes in departmental operations. In the event of a reduction in force, the City Council shall approve the classes, positions and number of employees to be eliminated. The City at that time shall provide the Union with a current seniority list for those employees and classes affected.

The order of lay-offs shall be governed by seniority in service. Reinstatement shall be in the reverse order of lay-offs. Seniority shall be based on total hours worked, exclusive of overtime, since the last date of hire into a regular or temporary City position, provided that

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the hours in a temporary position must be in a classification within the Service Employees’ Bargaining Unit.

When one or more employees assigned to the same classification within a department are to be laid off, the order of lay-off shall be as follows:

1. Temporary

2. Probationary

3. Regular
Accordingly, in the case of reduction in force, temporary workers who perform the same duties as regular workers shall be laid off before regular workers. However, this does not preclude the department from backfilling a permanent position with a temporary worker when the regular employee in the position is on an approved leave of absence. Backfilling more than ninety (90) days shall not occur without advance notification to the Union of the reason for it.

17.02 BUMPING
Bumping is defined as the movement of an employee to be laid off from their current classification of a position of the same, related (classification revision or title change) or previously held lower classification held by an employee with less seniority. Employees may exercise bumping privileges to a lower classification provided they meet the minimum qualifications of the lower classification. Bumping privileges may only be exercised within the assigned department except that employees with at least five years continuous regular employment may bump between departments.

A “related” classification as referred to in this section refers only to classifications that have been revised or re-titled. This does not refer to bumping to classifications that perform similar duties.

The least senior employee (in the classification of the position being eliminated/bumped to) in the laid off employee’s department is the person who will be bumped. If there is no less senior employee in the Department in the classification of the position being eliminated/bumped to, the least senior employee in the classification of the position being eliminated/bumped to in any City Department shall be bumped provided the laid off employee has the right to bump across Departments.

Full-time employees have the right to bump the least senior full-time employee. However, if there is no less senior full-time employee, the full-time employee being laid off has the right to bump a less senior part-time employee in the position that is closest to full time.

Part-time employees have the right to bump the least senior part-time employee in a position of equal hours in the classification of the position being eliminated/bumped to. However, if there is no less senior part-time employee in a position of equal hours, a part-time employee may bump the least senior part-time employee in a position of greater hours; if there is no less senior part-time employee in a position of greater hours, the part-time employee may bump a full-time employee within the laid-off employee’s assigned department; such bumping from a part-time position to a part-time position of greater hours or to a full-time position is limited to positions within the same department.

Employees who bump pursuant to this section and who have previously held more than one classification within the City must bump to the most recently held classification of equal

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hours, if available.

17.03 NOTIFICATION
Employees to be laid off shall be given not less than thirty (30) working days written notice prior to the reduction in force. The Union shall be notified concurrently and, upon request, afforded an opportunity to discuss the lay-offs, including alternatives to the lay-offs with the City. Employees not given at least thirty (30) working days’ notice of layoff shall be given a day’s pay for each day less than thirty (30) working days’ notice.

17.04 REASSIGNMENT
Whenever possible, employees to be laid off will be offered regular, casual or temporary employment for which they are qualified. An employee shall notify the City of their decision within seven (7) working days following receipt of the offer of employment. The City’s obligation to offer regular employment shall cease when an employee has refused three (3) such offers.

17.05 REINSTATEMENT
Should the position from which an employee was laid off be re-established within eighteen (18) months and the work force in that division is increased as a result, the employee shall be eligible for reinstatement. It shall be the employee’s responsibility to notify the Human Resources Department of their current address. Every effort shall be made to notify the affected individual of any reinstatement opportunity.

Laid off employees reinstated pursuant to this section shall not accrue additional seniority during any period of lay off, but shall not suffer any break in service as a result of the period of lay off, thereby retaining all previously accrued seniority upon reinstatement.

17.06 CONTINUATION OF INSURANCE BENEFITS
An employee separated from City service as a result of this article shall have their health benefits paid by the City at the same level while employed for a period not to exceed sixty (60) days from the date of separation.

17.07 RETIREMENT IN LIEU OF LAYOFF
An employee may elect to accept retirement in lieu of layoff, voluntary demotion, or reduction in assigned hours. An employee shall, within ten (10) workdays prior to the effective date of the proposed layoff, complete and submit a form provided by the City for this purpose.

An employee who retires in lieu of layoff shall have their name placed on the reemployment list.

17.08 IMPROPER LAYOFF
An employee who is improperly laid off as a result of a misapplication of the layoff procedure shall be reemployed upon discovery of the error and shall be reimbursed for all loss of salary and benefits, provided that discovery occurs within ninety (90) days of layoff.

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prior to layoff. Employees shall receive their regular pay while attending this training. The training may include, but not be limited to:

1. Resume Writing

2. Methods of Job Searching

3. Interviewing

4. Coping with Stress

5. Unemployment Insurance Benefit
SECTION 18.00 - CONTRACTING OUT
Before submission of a recommendation to contract out any bargaining unit work, the Union will be offered the opportunity to examine the proposal for at least thirty (30) working days prior to Council consideration, whenever possible, and to submit recommendations. If requested, the City will meet and confer over the decision and implementation of contracting out the work.

However, the parties understand that the City does not have to meet and confer over contracting out work when the work is required by law to be contracted out, there is an established past practice (as set forth in Section 4) of the City contracting out the work, or to continue or renew an existing contract.

The parties also agree that grievances alleging a violation of this policy shall be filed at Step II, including but not limited to binding arbitration, provided nothing herein shall hamper the City’s lawful exercise of authority under state law in emergency situations.

In addition, prior to contracting out bargaining unit work which will not result in layoffs, the City will consider utilizing qualified unit employees to do the work on an overtime basis if:

1. It is to the City’s economic advantage; and

2. It is to the City’s operational advantage.

Unit employees may provide the City with prior notice of their interest in performing such work.

Beginning in February 2005, the parties will form a joint labor-management committee comprised of three employees and the union representative and up to three management employees to review the use of contracted services that encompass bargaining unit work.

SECTION 19.00 - CAREER ADVANCEMENT (REGULAR AND

TEMPORARY EMPLOYEES)

19.01 CAREER LADDERS
It is the policy of the City to develop career ladders and various programs of training and retraining for City employees. The Human Resources Department shall coordinate the establishment and ongoing management of these programs.

19.02 JOB OPENING ANNOUNCEMENTS
The City encourages employees to apply for other positions and, to that end, all job announcements will be available for a minimum of five (5) days prior to the final filing date or concurrent with any outside advertising or until the announced maximum total number of

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applications accepted has been met.

19.03 TRAINING
The City shall maintain, consistent with budgetary allocations and availability, a training program which will enable employees to upgrade their skills and improve their levels of performance. The City desires to provide a training program for all City employees. The selection of training opportunities shall be at the sole discretion of the department head and City Manager, consistent with City policies, but the City shall solicit input from employees and will consider training requests.

19.04 CROSS TRAINING
The City and Union acknowledge that there is a benefit to cross-training of employees. When feasible, the City will develop programs to rotate and cross-train employees to enhance skill development. Employees may request that their department heads consider them for crosstraining opportunity. Such requests will be considered and a timely response provided.

19.05 CERTIFICATION OF ELIGIBLES FOR PROMOTIONAL EXAMINATIONS (REGULAR EMPLOYEES) When a promotional eligibility list (as defined in the Human Resources Rules and Regulations) is used to fill a vacant position and that promotional list includes employees represented by the agreement, the Human Resources Director shall certify the top five (5) eligibles, if there be that number, on the relevant promotional list to the appointing authority. If there be more than one vacancy in the same class, the Human Resources Director shall certify one additional eligible for each additional vacancy, if there be candidates available on the eligible list. The appointing authority or designee shall interview all eligibles certified by the Human Resources Director.

19.06 REIMBURSEMENT FOR LICENSE AND CERTIFICATES (TEMPORARY EMPLOYEES) Employees shall be reimbursed for the cost of licenses and certificates which are required to perform their job duties. No reimbursement shall be made for fees of less than $5.

Employees whose job description requires a class A or B driver’s license shall receive $100 per month provided they possess and maintain said required license in the performance of their job duties.

19.07 Absence for Examination (Temporary Employees)
An employee shall be granted release time to participate in any part of an examination process for promotion or transfer within the City workforce that is scheduled during the employee’s hours of work. The employee shall notify their immediate supervisor five (5) calendar days in advance of such an absence.

SECTION 20.00 - TUITION REIMBURSEMENT(REGULAR EMPLOYEES) The City shall reimburse each employee up to $500 per fiscal year (pro-rated for part-time employees) for job-related college/university courses, workshops, adult education and other training programs including related tuition, books and other course related expenses after successful completion of courses which are pertinent to their positions with the City.

For a course to be considered “pertinent” it must:

A. Improve knowledge and skills for the present position or for positions of higher classification within the City, or

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B. Prepare for anticipated technological changes occurring in the employee’s career field.

SECTION 21.00 - GRIEVANCE PROCEDURE (REGULAR EMPLOYEES)

21.01 PURPOSE
To assure prompt and fair treatment of grievances related to employment.

Any employee or group of employees covered by this Memorandum of Understanding, or the Union acting on their behalf, may file a grievance.

21.02 DEFINITION
A grievance is defined as an alleged violation, misinterpretation or misapplication of the provisions of this Memorandum of Understanding or the City’s Personnel Rules and Regulations; except disciplinary action as defined in Section 23.01-Disciplinary Procedures.

Such allegation may be made by an individual employee or by a group of employees, or by the Union.

21.03 LIMITATIONS
A. A grievant may be represented by any representative of his or her choosing in preparing and presenting a grievance.

B. No reprisal shall result against any employee, group of employees, or the Union, who presents a bona fide grievance under this procedure.

C. Time limits may be extended by mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

E. Grievances may, by mutual agreement in writing, be referred back for further consideration or discussion to a prior Step, or advanced to a higher Step of the grievance procedure. If a grievance is moved either forward or backward to another step, the time limits at that step shall be controlling and shall begin on the date the parties agree to the move.

F. Concurrent grievances alleging violation of the same provision(s) shall be consolidated for the purpose of this procedure as a single grievance.

21.04 PROCEDURES
Step I:

The grievant will first attempt to resolve the grievance through informal discussions with their immediate supervisor or other appropriate departmental personnel. These discussions must be initiated within ten (10) working days of when the grievant knew, or reasonably should have known, of the incident upon which the grievance is based. Meetings shall be scheduled in advance and the nature of the grievance stated when the appointment is made. Every attempt will be made by the parties to settle the issue at this level.

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Step II:

If the grievance is not resolved through the informal discussions, the grievant or their representative may within ten (10) workdays after the informal meeting, submit a written grievance to their department head.

The written grievance must contain in clear, factual and concise language:

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant sees them.

3. The specific provision of the M.O.U. or Personnel Rules and Regulations which the grievant alleges has been misinterpreted, misapplied or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievant.

7. A copy of the written grievance, signed by the grievant or Union representative, shall be presented at the time of the department head conference. However, the grievance will not be processed by the City until the grievant or employee representative of a group grievance has signed the written grievance document.

The department head shall hold a conference with the grievant within ten (10) workdays following receipt of the formal grievance. They shall prepare a written response within ten (10) working days after the conference. Copies shall go to the parties involved including the employee’s representative and the Human Resources Department.

Step III:

If the grievance is not resolved, the grievant may, within ten (10) workdays following receipt of the department head’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal. The grievance may also be appealed if the department head fails to respond within fifteen (15) workdays after submission of the formal grievance.

The City Manager or their representative shall set a hearing within ten (10) workdays of receiving the appeal. The grievant, their representative and other parties summoned by the City Manager or representative shall attend the hearing and present testimony or evidence concerning the grievance. The parties may bring a reasonable number of witnesses to the hearing.

The City Manager or their representative shall render a written decision to all parties directly involved within fifteen (15) workdays following the hearing.

Step IV:

If the grievance is not resolved to the satisfaction of the grievant at the conclusion of Step III, the grievant may appeal the decision of the City Manager to a neutral arbitrator, provided they so informs the City in writing within twenty (20) working days following receipt of the City Manager’s decision.

Within thirty (30) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the

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parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within ten (10) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the Arbitrator. If one person is not mutually agreed upon, the parties shall within ten (10) working days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as Arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The Arbitrator shall have no authority to add to, detract from, alter, amend or modify any provision of this Agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this Agreement, or to alter any wage rate or wage structure. The decision of the Arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post hearing briefs if necessary. The decision of the Arbitrator shall be final and binding upon the parties.

The Arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) working days after the conclusion of the hearing.

The Arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

SECTION 22.00 - DISCIPLINARY APPEALS PROCEDURE (REGULAR

EMPLOYEES)

22.01 DEFINITION
For the purposes of this article, disciplinary action shall mean (1) suspensions of fifteen (15) days or less; (2) suspension of thirty (30) days or less; (3) demotion; (4) disciplinary reduction in salary; or (5) termination.

The appeal procedure described herein shall apply to cases of disciplinary action affecting regular employees. It shall not be applicable to probationary employees. Employees have the right to representation at any or all stages of the appeal process.

22.02 PRE-ACTION PROCEDURE
Step I:

Prior to imposing disciplinary action, the supervisor shall first provide the employee a preliminary written notice of the proposed action stating the effective date and the specific grounds and particular facts upon which the action will be taken. A copy shall also be sent to the Union within one hour of the worker receiving notice.

The employee shall have access to any known written materials, reports or documents upon which the action is based. The employee shall have the right to respond to the charges within five (5) workdays from receipt of the notice either orally, in writing, or both to the department head. If the department head is personally involved in the initial investigation and notice process, the City Manager or Human Resources Director shall appoint a designee to hear the employee’s response.

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The employee may request an extension of the time to respond for justifiable reasons. Failure to respond within the time specified will result in the employee’s waiver of their procedural rights and final action will be taken.

Step II:

Following their review of the proposed disciplinary action, the department head, within five (5) workdays of receiving the employee’s response, shall render a written decision and send it by registered mail or personal delivery to the employee. A copy shall also be mailed to the employee’s representative. The written decision will include the effective date of the disciplinary action.

22.03 POST-ACTION APPEAL
Step III:

The employee has the right, within ten (10) workdays after receiving the department head’s decision described in Step II above, to file a request for appeal with the City Manager. The ten (10) day period may be extended if good cause is shown. The appeal shall be a written statement, signed by the appellant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons therefore, and stating that the pre-action procedures have been exhausted.

If the employee files a timely appeal, the City Manager shall, within ten (10) workdays after receiving the appeal, designate a hearing officer who shall schedule a hearing not less than ten (10) workdays from the date the appeal was received.

The hearing officer may conduct such independent investigation of the matter as they deem necessary. The appellant shall be given the opportunity to answer or present evidence in opposition to the findings of this independent investigation.

The appellant shall appear personally at the scheduled hearing unless physically unable to do so. The appellant or their representative may produce relevant oral or documentary evidence at the hearing.

Within fifteen (15) workdays following the hearing, the hearing officer shall render a written decision to all parties involved. The hearing officer has the authority to affirm, repeal or modify the disciplinary action.

Step IV:

If the appeal is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within twenty (20) working days following receipt of the City Manager’s decision.

Within thirty (30) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within ten (10) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon, the parties shall within ten (10) days after receipt of the list of names alternately strike two (2) names from such list with

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the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend, or modify any provision of this agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this agreement, or to alter any wage rate or wage structure. The decision of the arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post hearing briefs, if necessary. The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

The arbitrator’s expenses shall be borne equally by the parties regardless of the result of disciplinary action. In either case, each party shall bear the cost of its own representation.

SECTION 23.00 – DISCIPLINE (REGULAR EMPLOYEES)

23.01 DISCIPLINARY PROCEDURES
The City believes that progressive discipline is a guideline and useful tool for corrective action. The normal steps in progressive discipline shall be: (1) verbal warning; (2) written warning; (3) written reprimand; (4) suspensions of fifteen (15) days or less; (5) suspension of thirty (30) days or less; (6) demotion; (7) disciplinary reduction in salary; and (8) termination.

The City reserves the right to implement discipline which does not follow progressive discipline guidelines for egregious circumstances.

23.02 NOTICE OF PROPOSED DISCIPLINARY ACTION
Within one (1) hour of any notice of proposed disciplinary action issued to an employee under the provisions of MOU Section 22.02 Pre-Action Procedure Step I, a copy of the notice shall be either (a) hand-delivered to the Union with all attachments, or (b) sent to the Union by First Class Mail with all attachments, or (c) emailed to the Union with all attachments.

The Union’s point of contact shall be both the authorized representative and the SEIU Member Resource Center.

23.03 WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to their department head by filing an appeal to the department head within seven (7) working days, within the regular work week (Monday – Friday) and not including holidays, of receipt of the reprimand. The department head’s decision regarding the written reprimand shall be final.

Reprimands will be removed from the personnel file after three (3) years, in accordance with Section 8.01 Personnel Files.

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SECTION 24.00 – COMPENSATION STUDY (REGULAR EMPLOYEES)
The Parties agree to continue to meet and confer over the findings and implementation of the 2025 compensation study prepared by Gallagher with the goal of closing the gap - subject to Council approval. All changes must be made upon mutual agreement of the Parties. Additionally, the Finance department will update the Union/Meet and confer team quarterly on available data on the financial status of the City.

New Compensation Study: The City and the Union shall meet by January 1 of the preceding contract negotiation year to meet and confer over the contractor selection and methodology including cities and benchmarked positions for the compensation study. The parties must agree on any new contractor selected to conduct the study and methodology utilized for the study, including the mapping of studied classifications to other classifications for which comparison data is not directly generated by the consultant. If the parties are unable to mutually agree on the contractor or methodology for the new compensation study, the status quo of the methodology of the 2025 Study will remain.

The study shall be completed by March 1 of the contract negotiation year, and the city agrees to bear the cost of the survey.

SECTION 25.00 - AUTHORIZED AGENTS
For the purposes of administering the terms and provisions of this Memorandum of Understanding:

A. City’s principal authorized agent shall be Human Resources Director, or their duly authorized agent (address 809 Center Street, Room 6, Santa Cruz, CA 95060); except where a particular management representative is specifically designated in connection with the performance of a specified function or obligation set forth herein.

B. The Union’s principal authorized agent shall be the Santa Cruz Area Director of the SEIU Local 521 or their duly authorized representative (address 517 Mission Street, #B, Santa Cruz, CA 95060).

SECTION 26.00 - RENEGOTIATIONS
Negotiations shall begin one hundred fifty (150) days prior to the expiration date of this agreement , or any other mutually agreed date.

SECTION 27.00 - SEVERABILITY
Should any of the provisions herein contained be rendered or declared invalid by reason of any State or Federal legislation or court action, such invalidations shall not invalidate the remaining portions of this Memorandum of Understanding which shall remain in full force and effect, insofar as such remaining portions are severable.

SECTION 28.00 - HOLIDAY CLOSURE (REGULAR EMPLOYEES)

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If the City decides to close around the Christmas and New Years’ holidays, the following will apply:

Employee participation in the closure program is voluntary. During the closure, employees may use accrued vacation, compensatory time off, floating holidays, or excess holiday time.

Employees may also request leave without pay. To encourage the use of leave without pay, seniority, benefit and leave accruals will not be impacted if leave without pay is taken during the Holiday closure period. (Note: Unpaid leave is not credited towards PERS retirement.) The City will allow leave without pay hours to be deducted over the same number of pay periods as the number of workdays the City was closed. Employees are not allowed to use unpaid closure time on holidays during the City’s holiday closure.

If there are employees who do not wish to take either paid or unpaid leave time during the closure period the City will provide the opportunity to perform generally comparable work during the closure by finding appropriate assignments and/or work space.

SECTION 29.00 - AUTOMATIC DEPOSIT-NEW HIRES (REGULAR

EMPLOYEES)
Newly hired City employees shall be required to receive their paycheck through automatic deposit.

Newly hired means only those employees hired from an external hiring list and does not include promotional hires from current City employees. New employees who do not use financial institutions may be exempted from this requirement by signing a statement attesting that they do not have a bank account.

SECTION 30.00 - ELECTRONIC PAY STUBS (REGULAR EMPLOYEES) Employees newly hired after the City implements electronic pay stubs shall automatically receive their pay stubs electronically. Newly hired means only those employees hired from an external hiring list and does not include promotional hires from current City employees. New employees may opt out of receiving electronic pay stubs and receive a printed copy of their pay stub.

SECTION 31.00 – TEMPORARY EMPLOYEES
Except as specifically modified herein, terms and conditions of employment for temporary employees shall remain unchanged including those terms and conditions of employment set forth below. The Union and City mutually acknowledge that temporary employees have at will employment status.

Article 31 does not increase or erase benefits in articles not mentioned unless doing so is in a signed agreement.

The following full or partial sections of the Regular SEIU MOU apply to the temporary employees:

SECTION 1.00 PREAMBLE
SECTION 2.00 TERM
SECTION 3 NO ABROGATION OF RIGHTS
SECTION 4.00 PAST PRACTICES
SECTION 5.00 RECOGNITION
SECTION 6.00 NO DISCRIMINATION
SECTION 7.00 UNION RIGHTS

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SECTION 8.00 PERSONNEL ACTIONS
SECTION 10.00 COLA AND BILINGUAL PAY, OVERPAYMENTS ONLY SECTION 16.00 SAFETY
SECTION 17.00 REDUCTION IN FORCE
SECTION 19.00 CAREER ADVANCEMENT
SECTION 25.00 AUTHORIZED AGENTS
SECTION 26.00 RENEGOTIATIONS
SECTION 27.00 SEVERABILITY
SECTION 29.00 AUTOMATIC DEPOSIT – NEW HIRES
SECTION 30.00 ELECTRONIC PAY STUBS
Additionally, the following full or partial sections of the Temporary MOU are incorporated into the Regular SEIU MOU:

SECTION 1.00 PREAMBLE
SECTION 2.00 TERM
SECTION 3.00 NO ABROGATION OF RIGHTS
SECTION 4.00 PAST PRACTICES
SECTION 5.00 RECOGNITION
SECCTION 6.00 NO DISCRIMINATION
SECTION 7.00 UNION SECURITY AND UNION RIGHTS
SECTION 8.00 SALARY STEPS, PERSONNEL FILES AND PERFORMANCE

EVALUATIONS
SECTION 10.00 SALARY
SECTION 16.00 CAREER ADVANCEMENT
SECTION 17.00 SAFETY
SECTION 23.00 AUTHORIZED AGENTS
SECTION 24.00 RENEGOTIATIONS
SECTION 25.00 SEVERABILITY
The following full or partial sections of the Temporary MOU will be incorporated as a new article ( Section 31) of the combined Regular/Temporary MOU:

SECTION 9.00 WORK ASSIGNMENT
SECTION 10.00 SALARY
SECTION 11.00 SENIORITY
SECTION 12.00 OVERTIME
SECTION 13.00 BEREAVEMENT LEAVE
SECTION 14.00 IN-LIEU PAID TIME
SECTION 15.00 SICK LEAVE
SECTION 18.00 BENEFITS
SECTION 19.00 GRIEVANCE PROCEDURE
SECTION 20.00 DISCIPLINE
SECTION 21.00 WRITTEN REPRIMANDS
SECTION 22.00 LABOR/MANAGEMENT COMMITTEE

31.01 WORK ASSIGNMENTS

31.01.01 Work Shifts
Where practical, employees shall be assigned regularly scheduled starting and quitting times.

The Union recognizes that the nature of some temporary employment is on-call and/or irregularly scheduled. Employees in these types of positions will not be assigned regularly

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scheduled starting and quitting times. Regularly scheduled employees and the Union will be notified as much in advance as possible, but at least five (5) working days in advance of changes in shift schedules and work weeks.

The scheduling of temporary employees is at the sole discretion of the employing department.

If requested, the department head will meet with the Union regarding scheduling assignments.

Any disputes regarding work assignments will be resolved by the department head.

31.01.02 Lunch Period
Employees shall be entitled to and expected to take an uninterrupted, unpaid lunch period of a minimum of thirty (30) minutes at or about the mid-point of their workday if the workday is a minimum of eight (8) hours.

31.01.03 Rest Periods
Employees shall be allowed a fifteen (15) minute rest period during each four hours of regular work. Departments may make reasonable rules concerning the scheduling of same. Rest periods not taken shall be waived. Rest periods cannot be taken at the beginning or end of a shift or combined with a meal period unless approved. This is not effective in periods of a bona fide emergency nature. Rest periods shall be considered work time.

31.02 SALARY

31.02.01. Salary Upon Return to Temporary Employment
A worker,who returns to temporary employment in the same position within two calendar years, or longer at management’s discretion, shall be placed at their most recent salary step.

31.02.02 Salary Step When Hired Into a Regular Position When a temporary worker is hired into a higher-level regular position, their pay step in the regular position shall be at least 5% higher than their most recent temporary pay rate, but shall not exceed the top step for the new position.

A. Credit Towards One (1) Year Probation When Hired Into a Regular Position Employees hired into positions that require a one-year probation shall receive credit toward completion of the probationary period for any time spent in the same position on a temporary assignment immediately prior to the regular appointment. Such credit shall be given on a monthly basis up to a maximum of six (6) months of credit (per MOU section 8.02.01 – Probationary Period).

31.02.03 EMT Differential
Lifeguard I’s who obtain and maintain an EMT certificate shall receive a five percent (5%) differential for all hours worked. The employee shall present proof of certification to the Department.

31.02.04 Beach Lifeguard II Duty Officer Stipend
Beach Lifeguard II will receive a four percent (4%) stipend when scheduled to work as the Duty Officer.

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31.02.05 Call Back
Callback work is defined as work required by management of an employee who, following completion of the employee’s work day or work week and departure from the employee’s 12 work site, is unexpectedly ordered to report back to duty or by phone or computer to perform necessary work.

A. Callback by Phone or Computer
If the employee is able to respond by phone or computer and is not required to report to the worksite, then:
1) For the first response of the day, a minimum of thirty minutes (0.5 hours) of overtime will be paid for actual overtime worked of less than thirty minutes. Thereafter, a minimum of fifteen minutes (0.25 hours) of overtime will be paid for actual overtime worked of less than fifteen minutes.
2) An additional minimum will not be paid if an employee is required to respond to additional call(s) and the time and duration of the response is within the previous minimum.

B. Callback to Worksite
1) All callback hours shall be paid at the overtime rate. A minimum of two (2) hours of overtime compensation shall be paid for all callback periods of less than two (2) hours. 2) Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.
3) If an employee, who was called back to work and has completed their assignment and left work, is again called back to work, they will not receive another minimum if the time of return is within the previous callback minimum.
4) Employees who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

31.02.06 Duty Assignment – Marine Rescue Unit Members Only A. Definition
Duty assignment is defined as an assignment to an on-call status for a twenty-four (24) hour period of time. While on duty assignment, an employee must remain available to be contacted by phone or pager and be able to report to work within ten (10) minutes. The employee must remain within a ten (10) minute response area to the Santa Cruz Municipal Wharf throughout the duty assignment. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act. See Section 31.02.06 for All Other Temporary Service Employee Duty Assignment.

B. Assignment
Duty personnel shall be assigned on a monthly rotational basis from an established list consisting of, but not limited to, qualified volunteers. A voluntary rotation process will be the preferred method of duty assignment selection; however, the City may require duty assignment if there are insufficient qualified volunteers. Prior to making mandatory assignments, the City will notify the Union. Only “qualified” employees may be appointed to duty assignment lists, as determined by the appropriate department head(s). Such qualifications will be based on the nature and requirements of the tasks performed while on duty assignment. With the concurrence of the duty supervisor, duty assignments may be substituted by other personnel on an approved list, provided employees have at least one week between duty assignments.

C. Compensation
1) Duty personnel shall receive $125 for a twenty-four (24) hour assignment.

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2) All duty hours actually worked during the period of Duty Assignment and outside the employee’s regularly scheduled shift shall be compensated at their regular straight-time pay rate. A minimum of two (2) hours will be paid for callouts of less than two (2) hours.

31.02.07 Duty Assignment – All Other Temporary Service Employees A. Definition
Duty assignment is defined as an assignment to an on-call status for a specified period of time. While on duty assignment, an employee must remain available to be contacted by phone or pager and be able to report to work within a thirty (30) minute period. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act. See Section

31.02.05 for Marine Rescue Unit Only Duty Assignment.

B. Assignment
Duty personnel shall be assigned on a weekly rotational basis from an established list consisting of, but not limited to, qualified volunteers. A voluntary rotation process will be the preferred method of duty assignment selection; however, the City may require duty assignment if there are insufficient qualified volunteers. Prior to making mandatory assignments, the City will notify the Union. Only “qualified” employees may be appointed to duty assignment lists, as determined by the appropriate department head(s). Such qualifications will be based on the nature and requirements of the tasks performed while on duty assignment. With the concurrence of the duty supervisor, duty assignments may be substituted by other personnel on an approved list, provided employees have at least one week between duty assignments.

C. Compensation
1) Weekdays
Duty personnel shall receive one and one half (1.5) hours of their base hourly salary for a sixteen hour assignment
2) Weekends
Duty personnel shall receive two (2) hours of their base hourly salary for a twentyfour hour assignment. 3) Holidays (City Designated Eight (8) Hour Holidays)
Duty personnel shall receive eight (8) hours of their base hourly salary for a twentyfour hour assignment. 4) Holidays (City Designated four (4) Hour Holidays)
Duty personnel shall receive four (4) hours of their base hourly salary for a twenty hour assignment.
5) All duty hours actually worked outside the employee’s regularly scheduled shift shall be compensated at the overtime rate. A minimum of two (2) hours of overtime will be paid for callouts of less than two (2) hours. An additional minimum will not be paid if an employee is required to perform an additional duty call and the time of return is within the previous duty call minimum.

If the assigned duty person or crew member assisting the duty person is required to

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respond to a call that requires them to work more than twelve (12) hours within a twenty-four hour period, and any portion of those twelve (12) hours is after midnight, the employee shall be entitled to an eight (8) hour rest period prior to returning to work. If any portion of the rest period occurs during the employee’s regular schedule, the employee shall receive regular paid compensation for that time. 6) An employee shall have the option of receiving compensatory time off for the duty assignment compensation and hours worked.

31.02.08 Holiday Premium Pay
The City shall provide a payment of one and a half (1.5) times the base hourly rate for actual hours worked on fixed holidays. Temporary employees will not be eligible for paid time off for a holiday unless provided for under another section of the MOU. Holidays include those outlined in Section 11.01, Fixed Holidays.

31.03 SENIORITY
Seniority for temporary workers shall be defined as hours worked within a given classification from the date of initial hire as a temporary worker.

31.04 OVERTIME
The Union understands that from time to time the City will direct employees to work overtime hours. When overtime work is necessary, the City will make an effort to distribute overtime equally among qualified employees. To the extent possible, employees will be given advance notification. An employee may be excused from overtime work for legitimate reasons.

Employees covered by the Fair Labor Standards Act (FLSA) shall be entitled to FLSA overtime which is defined as all hours required by management and actually worked by the employee in excess of forty (40) hours in a work period as defined by the City. FLSA overtime is compensated in pay or compensatory time off at one and one-half (1-1/2) times the employee’s regular rate of pay. The regular rate shall be as defined in the FLSA.

Compensatory time off shall not be allowed to accumulate beyond eighty (80) hours at any given time.

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Any remaining balance will be paid out on the last payday in December.

31.05 LEAVES OF ABSENCE

31.05.01 Bereavement Leave
The purpose of this section is to provide paid leave for employees when they are bereaved at the death of a family member and this loss has had a temporary negative effect on their ability to continue their work performance. When a temporary worker is scheduled to work and a death occurs in the employee’s immediate family, a leave of absence with pay of up to twenty (20) hours per incident, in a seven (7) consecutive day period, may be granted an employee by the department head. For the purpose of this section, “immediate family” is defined as: spouse, parent, son, daughter, grandparent, sibling, mother or father-in-law, brother or sister-in-law, grandchild of the employee or spouse, son-in-law, daughter-in-law, grandparent-in-law, registered Principal Domestic partner, or other close relation residing in the employee’s household. In rare cases when the individual has no other legal relationship with the deceased other than foster or step-parent, the HR Director or City Manager has the discretion to approve that leave upon application.

31.05.02 Jury Duty
Employees shall receive equivalent unpaid time off when performing jury duty on their scheduled work day on the day the jury duty is performed. An employee must notify their supervisor of the expected duration of the absence and must present to the department head official documents supporting such duty. This section shall not apply to grand jury service.

31.05.03 Blood Donations
An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during regularly scheduled hours of work. The length of such leave must be approved by the supervisor and is dependent upon the nature and scheduling of the work performed and the travel distance required.

31.05.04 Worker’s Compensation
An employee who is entitled to workers’ compensation payments may use accumulated in-lieu paid time and/or compensatory time off to supplement such payments to an amount equal to their net salary. After depletion of any accrued paid leaves, the employee shall be eligible for benefits only in the amounts prescribed by the workers’ compensation laws.

The Union and the City recognize that work-related injuries/illnesses can often be prevented. Therefore, work-related injuries/illnesses shall be an ongoing agenda item for the Citywide Safety Committee. Proactive, preventive measures may be recommended by the Committee. The Committee will also make recommendations on appropriate way(s) of reviewing workers’ compensation claims

31.06 IN-LIEU PAID TIME
During the term of the MOU, upon completion of 600 or more hours of work, temporary employees shall receive nineteen (19) hours of in-lieu paid time. Subsequently, workers

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accrue nine (9) hours of paid time for every 200 additional hours of work thereafter. Such in-lieu paid time is provided instead of any other type of paid leave or holiday time off (except paid Bereavement Leave). Employees will be allowed to receive payment for accrued in-lieu paid time upon request. Any unused in-lieu paid time will be payable to the employee upon termination of employment.

31.07 SICK LEAVE
In accordance with the Healthy Workplaces, Healthy Families Act of 2014:

I. Applicability and Eligibility to Earn and Use Paid Sick Leave A. Employees shall receive paid sick leave as described in this section after 30 days of City employment within a 12-month period.

B. An employee is eligible to use accrued paid sick leave after 90 days of City employment within a 12-month period. The 12-month period shall be measured initially by the employee’s hire date and by the employee’s anniversary date.

II. Annual Grant of Paid Leave
A. Beginning on July 1, 2015, and on July 1st of each calendar year thereafter, the City shall grant employees 24 hours of paid sick leave to use for permitted purposes as described in this section.

Employees who are hired after July 1st of any given calendar year shall also be issued 24 hours of paid sick leave.

B. Any unused paid sick leave hours remaining as of June 30th of any calendar year shall expire and shall not be carried over to the next 12-month period.

III. Use of Paid Sick Leave
A. An eligible employee may use only up to a maximum of three (3) days or 24 hours of paid sick leave in a 12-month period. An employee must be allowed to take up to a total of 24 hours of accrued time during any 12-month period for reasons allowed under Section III.B. (For example, if an eligible seasonal or temporary employee who works six (6) hours per day and has accrued 24 hours of paid sick leave, takes three (3) paid sick days during the year, the employee has used 18 hours and still has six (6) hours of paid leave remaining in the same year.) B. An eligible employee may use paid sick leave under this section for the following reasons:
i. Diagnosis, care, or treatment of the employee’s existing health condition or preventive care for an employee; or
ii. Diagnosis, care, or treatment of an existing health condition of, or preventive care for an employee’s family member. For the purposes of using sick leave under this section only, “family member” shall mean an employee’s parent, child, spouse, registered domestic partner, parent-in-law, sibling, grandchild, or grandparent.
iii. In addition, with appropriate certification an employee who is a victim of domestic violence, sexual assault, or stalking may use accrued paid sick leave under this section for the following reasons:
a) To obtain or attempt to obtain any relief, including, but not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the victim or the victim’s child; b) To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking;
c)To obtain services from a domestic violence shelter, program, or rape crisis center; d) To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking; or
e)To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent

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relocation.

IV. Notification to City of Use of Paid Sick Leave
When accrued sick leave must be used, an employee will notify their immediate supervisor of the need to use leave and its probable duration, if known, within one hour after the regular scheduled starting time. If the employee’s need to use sick leave is unforeseeable, the employee must provide notice to the employee’s supervisor as soon as practicable. When the employee’s need to use sick leave is foreseeable, the employee must provide reasonable advance notice.

V. Other Terms of Paid Sick Leave
A. Employees may determine how much paid sick leave they wish to use, however, the minimum amount of paid sick leave an employee may use is one hour per work day.

B. Employees shall be compensated for each hour of sick leave used under this policy at the employee’s base hourly rate of pay. Employees shall be compensated for using sick leave, on the payday for the next regular payroll period after the sick leave was taken.

C. Except as provided in this section, upon termination, resignation, retirement or other separation from employment, no cash out or compensation of any kind will be provided to an employee for accrued and unused paid sick leave.

If an employee separates from the City and is rehired within one (1) year from the date of separation, any previously accrued and unused paid sick leave shall be restored to the employee to the extent required by law. If at the time of separation from City employment, the rehired employee had not yet worked the required 90 days to be able to use paid sick leave, the employee must still satisfy the 90 day requirement, counting all days previously worked for the City, before the employee may use the employee’s accrued paid sick leave.

31.08 BENEFITS

31.08.01 Health Care Reimbursement
Employees who work more than 220 hours in the following quarters will be reimbursed 50% the cost of their single coverage medical plan, not to exceed $100 per quarter.

Quarter Payable
July/August/September October
October/November/December January
January/February/March April
April/May/June July
Employees must provide a receipt showing their payment for coverage within ten (10) days after the end of each quarter to be eligible for payment. Reimbursement will only be for single medical coverage paid for directly by the employee.

31.08.02 Bus Passes
Temporary service employees are eligible to participate in the City’s bus pass program. Additional information regarding this program is available form the Human Resources Department.

31.08.03 CalPERS Long Term Care
Temporary service employees are eligible to participate in the CalPERS Long Term Care insurance benefit. Additional information regarding this program is available from the Human Resources Department.

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31.08.04 Medicare
Temporary service employees and the City (on employees’ behalf) participate in and contribute to the Medicare program.

31.08.05 Alternative Transportation Incentive Program
The City will provide up to $10 per month per employee for reimbursement of eligible transportation related expenses, subject to a cap, as defined in the City’s APO II-53- Alternative Transportation Incentive Program.

31.09 GRIEVANCE PROCEDURE

31.09.01 Purpose
To assure prompt and fair treatment of grievances related to employment. Any employee or group of employees covered by this Memorandum of Understanding, or the Union acting on their behalf, may file a grievance.

31.09.02 Definition
A grievance is defined as an alleged violation, misinterpretation or misapplication of the provisions of this Memorandum of Understanding or the City’s Personnel Rules and Regulations.

31.09.03 Limitations
A. A grievant may be represented by an individual of their own choosing in preparing and presenting a grievance
B. No reprisal shall result against any employee, group of employees, or the Union, who presents a bona fide grievance under this procedure.

C. Time limits may be extended by mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

31.09.04 Procedures
Step I
The grievant will first attempt to resolve the grievance through informal discussions with their immediate supervisor or other appropriate departmental personnel. These discussions must be initiated within ten (10) working days of the incident upon which the grievance is based. Meetings shall be scheduled in advance and the nature of the grievance stated when the appointment is made. Every attempt will be made by the parties to settle the issue at this level.

Step II
If the grievance is not resolved through the informal discussions, the grievant or their representative may within ten (10) working after the informal meeting, submit a written grievance to the department head. The written grievance must contain in clear, factual and concise language.

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant see them.

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3. The specific provision of the MOU which the grievant alleges has been misinterpreted, misapplied, or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievance.

7. A copy of the written grievance, signed by the grievant or Union Representative, shall be presented at the time of the department head conference. However, the grievance will not be processed by the City until the Grievant or employee representative of a group grievance has signed the written grievance document.

The department head shall hold a conference with the grievant within ten (10) workdays following receipt of the formal grievance. They shall prepare a written response within five (5) working days after the conference. Copies shall go to the parties involved including the employee’s representative and the Human Resources Department.

Step III
If the grievance is not resolved, the grievant may, within five (5) workdays following receipt of the department head’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal. The grievance may also be appealed if the department head fails to respond within fifteen (15) workdays after submission of the formal grievance. The City Manager or their representative shall set a meeting within then (10) workdays of receiving the appeal. The grievant and/or their representative shall state their provision on the grievance to the City Manager and present any other materials that they deem relevant to the grievance. The City Manager or their representative shall render a written decision to all parties directly involved within fifteen (15) workdays following the meeting. The decision of the City Manager on the grievance shall be final.

31.10 DISCIPLINE
The City and Union acknowledge that temporary employees have at will employment status and that either the employee or the City is entitled to end the employment relationship at any time, for any reason.

Should the City decide to terminate, suspend or demote a temporary employee due to performance and/or attendance issues, it will so notify the employee in writing with concurrent notice to the Union.

Upon request, by the employee or the Union, a meeting will be scheduled with the department head to allow the employee and/or their representative to provide explanatory or mitigating information, which the City will consider in determining if any change in its position is appropriate. The department head shall have the final decision in all temporary employee decisions. There is no appeal.

31.11 WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the MOU, or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to the department head by filing an appeal to the department head within ten (10) working days of receipt of the reprimand. The department head’s decision regarding the written reprimand shall be final.

31.12 LABOR/MANAGEMENT COMMITTEE
The City and Union agree to establish a committee for the purpose of discussing the use and management of temporary employees and positions. Each party (City and Union) may appoint up to four (4) representatives to the committee. The committee will meet at least twice per each contract

20.77 75
year at a date, time, and location that is mutually convenient.

The committee will review data pertaining to temporary employees including: names, hours worked, position classification, assigned department, original start date, and position status (temporary or regular). The purpose of reviewing this data is to identify if and when it is appropriate to transition temporary workers and/or positions to regular employment status. As a result of working with this data, the committee shall also recommend improved tracking and accounting practices for managing temporary employees and positions.

Additionally, in an effort to maintain transparency and accountability in the recruitment and selection of temporary employees, the committee shall discuss and recommend improvement to those processes.

20.78 76
City of Santa Cruz Service Employees
SEIU Local 521 City of Santa Cruz
_________________________ _________________________
Date Date
Oliva Martinez Sara De Leon, Lead Negotiator
Devon King Timothy L. Davis, Labor Counsel
Ken Bare
Eric Bumgarner
Emilio Galvan
Juan Molina
dfdf
Guillermo Soriano
dfdf

20.79 20252-20285

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND

CITY OF SANTA CRUZ SERVICE EMPLOYEES
Service Employees International Union, Local 521
October 11, 20225 – October 10, 20285

20.80 2
20252-20285

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
CITY OF SANTA CRUZ SERVICE EMPLOYEES, S.E.I.U., LOCAL 521

TABLE OF CONTENTS
SECTION 1.00 – PREAMBLE .........................................................................................................................22 SECTION 2.00 – TERM .................................................................................................................................22 SECTION 3.00 - NO ABROGATION OF RIGHTS..............................................................................................22 SECTION 4.00 - PAST PRACTICES .................................................................................................................23 SECTION 5.00 – RECOGNITION....................................................................................................................23 SECTION 6.00 - NO DISCRIMINATION ..........................................................................................................23 SECTION 7.00 - UNION RIGHTS ...................................................................................................................24

7.01 Payroll Deductions ....................................................................................................................24

7.01.01 Confidential Employees ....................................................................................................25

7.02 Memorandum of Understanding - Printing and Distribution .....................................................25

7.03 Union Notification .....................................................................................................................25

7.04 Display Space and Department Mail .........................................................................................25

7.05 Time Off for Union Officials.......................................................................................................25

7.05.01 Meet and Confer or Consult Sessions...............................................................................25

7.05.02 Union Stewards .................................................................................................................26

7.05.03 Chief Stewards...................................................................................................................26

7.05.04 Union Leave ....................................................................................................................26

7.06 Access to City Facilities ..............................................................................................................27

7.07 Bargaining Unit Employee Information.....................................................................................28

7.08 Area Meetings ...........................................................................................................................28

7.09 C.O.P.E. Deduction .....................................................................................................................28

7.10 New Employee Orientation.......................................................................................................29

7.11 Weingarten Rights.....................................................................................................................29

7.12 Labor Management Meeting ....................................................................................................29 SECTION 8.00 - PERSONNEL ACTIONS.........................................................................................................30

8.01 Personnel Files (Regular Employees)........................................................................................30

8.01.01 Performance Evaluations.................................................................................................31

8.01.02 Late Evaluations...............................................................................................................31

8.02 Probation...................................................................................................................................32

20.81 3

8.02.01 Probationary Period (Regular Employees).......................................................................32

8.02.02 Probationary Credit (Regular and Temporary Employees)..............................................32

8.02.03 Objective of Probationary Period (Regular Employees)...................................................32

8.02.04 Rejection of Probationary Employee (Regular Employees) .............................................32

8.02.05 Extension of Probation (Regular Employees)...................................................................33

8.03 Salary Steps, Personnel Files and Performance Evaluations (Temporary Employees)..............33

8.03.01 Personnel Files..................................................................................................................33

8.03.02 Performance Evaluations..................................................................................................33

8.03.03 Late Evaluations................................................................................................................34 SECTION 9.00 - WORK ASSIGNMENTS (Regular Employees).......................................................................34

9.01 Work Shifts ................................................................................................................................34

9.02 Alternate Schedules/Flex Time, Telework, VTO and Developmental Assignments...................34

9.02.01 Voluntary Time Off...........................................................................................................35

9.02.02 Developmental Assignments ...........................................................................................35

9.03 Sanitation Work Hours...............................................................................................................35

9.04 Part-Time Employees.................................................................................................................35

9.05 Seniority.....................................................................................................................................35

9.06 Lunch Period .............................................................................................................................35

9.07 Rest Periods ..............................................................................................................................36

9.08 Clean-Up Time ...........................................................................................................................36

9.08.01 Dress Time ........................................................................................................................36

9.09 Emergency Meals ......................................................................................................................36

9.10 Light Duty Assignments..............................................................................................................36

9.11 Parks Work Schedule ................................................................................................................37

9.12 Employment of “Regular, Limited Term” Employees.................................................................37

9.12.01 Definition .........................................................................................................................37

9.12.02 Notification to Employee..................................................................................................37

9.12.03 Terms and Conditions......................................................................................................37

9.13 Water Treatment Plant Operator Shift Selection......................................................................38 SECTION 10.00 - PAY RATES AND PRACTICES (Regular and Temporary Employees) ..................................39

10.01 Salary Steps (regular Employees)..........................................................................................39

10.01.01 Salary Rates Upon Appointment (Regular Employees) ................................................39

10.01.02 Advancement within the Range (Regular Employees) .................................................40

10.02 Salary/Retirement (Regular Employees)...............................................................................41

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I)...................................................41

20.82 4

10.02.02 Employees Hired on or After May 12, 2012 but before January 1, 2013 (Tier II).........41

10.02.03 Employees Hired on or After January 1, 2013 (Tier III) ................................................42

10.02.04 Retirement, All Regular Employees..............................................................................43

10.02.05 Sick Leave Conversion ..................................................................................................43

10.03 Longevity (Regular Employees)...............................................................................................43

10.04 Working Out of Classification (Regular Employees) ..............................................................43

10.05 Shift Differential (Regular Employees) ..................................................................................44

10.05.01 Evenings .......................................................................................................................44

10.05.02 Weekends.....................................................................................................................44

10.06 Lone Operator Differential (Regular Employees) ..................................................................45

10.06.01 Water Plant Lone Operator ..........................................................................................45

10.06.02 Wastewater Plant Lone Operator.................................................................................45

10.07 Overtime (Regular Employees) .............................................................................................46

10.08 Callback (Regular Employees) ...............................................................................................46

10.08.01 Callback by Phone or Computer...................................................................................47

10.08.02 Callback to Worksite.....................................................................................................47

10.09 Duty Assignment (Regular Employees) .................................................................................47

10.09.01 Definition......................................................................................................................47

10.09.02 Assignment...................................................................................................................47

10.09.03 Compensation ..............................................................................................................48

10.09.04 Fatigue Pay ...................................................................................................................48

10.10 Bilingual Pay (Regular and Temporary Employees)...............................................................49

10.11 City Translator (Regular Employees) .....................................................................................49

10.12 Overpayments and Repayment of Funds (Regular and Temporary Employees)...................49

10.13 Reimbursement for Licenses and Certificates (Regular Employees) .....................................50

10.14 Departmental Technology Coordinator Differential (Regular Employees) ...........................50

10.15 Leak Detection (Regular Employees) ....................................................................................51

10.16 Water Department SCADA System Coordinator (Regular Employees) .................................51

10.17 Water Department Store Keeper (Regular Employees).........................................................51

10.18 Scuba Diving Premium Pay (Regular Employees)..................................................................51

10.19 Confined Space Rescue Premium Pay (Regular Employees).................................................51

10.20 Alternative Transportation Incentive Program (Regular Employees) ...................................52

10.21 Planning Department Certification Compensation Incentive Premium Pay (Regular Employees) .............................................................................................................................................52

10.22 Hazardous Materials Premium Pay (Regular and Temporary Employees) ...........................53

20.83 5
SECTION 11.00 – HOLIDAYS (Regular Employees) ......................................................................................53

11.01 Fixed Holidays........................................................................................................................54

11.02 Floating Holidays ...................................................................................................................54

11.03 Holiday Work.........................................................................................................................55

11.04 Holiday on Regular Day Off ...................................................................................................55

11.05 Holidays During Vacation ......................................................................................................55

11.06 Holiday Pay-off......................................................................................................................55 SECTION 12.00 – VACATION (Regular Employees)......................................................................................55

12.01 Accrual ..................................................................................................................................55

12.02 Scheduling of Vacation ..........................................................................................................55

12.03 Illness During Vacation...........................................................................................................56

12.04 Rate of Maximum Vacation Accrual ......................................................................................56 SECTION 13.00 - SICK LEAVE (Regular Employees)......................................................................................56

13.01 Definition ..............................................................................................................................56

13.02 Accrual and Use.....................................................................................................................56

13.02.01 Family Sick Leave ..............................................................................................................57

13.03 Limitations ............................................................................................................................57

13.04 Sick Leave Incentive Program ................................................................................................57 SECTION 14.00 - LEAVES OF ABSENCE.........................................................................................................57

14.01 Paid Leaves of Absence (Regular Employees) .......................................................................57

14.01.01 Personal Business Leave ...............................................................................................57

14.01.02 Bereavement Leave......................................................................................................57

14.01.03 Jury Duty.......................................................................................................................58

14.01.04 Absence for Examination...............................................................................................58

14.01.05 Blood Donations (Regular and Temporary Employees)................................................58

14.01.06 Military Duty.................................................................................................................58

14.01.07 Workers’ Compensation...............................................................................................59

14.01.08 Paid Birth/Adoptive Leave ............................................................................................59

14.01.09 Critical Incident/Recovery Leave (Regular and Temporary Employees) ......................59

14.02 Unpaid Leaves of Absence (regular Employees) ...................................................................59

14.02.01 Medical or Personal Leave ...........................................................................................59

14.02.02 Pregnancy Disability Leave ...........................................................................................60

14.02.03 Family Leave..................................................................................................................60

14.03 Continuation of Insurance Benefits During Unpaid Leaves of Absence (Regular Employees) 62 20.84
6 14.03.01 Personal Leave..............................................................................................................62

14.03.02 Medical Leave...............................................................................................................62

14.03.03 Family Leave..................................................................................................................62 SECTION 15.00 – BENEFITS (Regular Employees) .......................................................................................62

15.01 Medical Benefits ...................................................................................................................62

15.02 Dental Insurance ...................................................................................................................63

15.03 Vision.....................................................................................................................................64

15.04 Long Term Disability..............................................................................................................64

15.04.01 Short Term Disability....................................................................................................64

15.05 Part-Time Employees - Benefits Proration .............................................................................64

15.06 Medical Plan..........................................................................................................................64

15.07 Retiree Health Program.........................................................................................................64

15.08 Life Insurance ........................................................................................................................65

15.09 Uniform Allowance................................................................................................................65

15.10 Equipment Mechanic Tools...................................................................................................65

15.11 Principal Domestic Partners...................................................................................................65 SECTION 16.00 – SAFETY (Regular and Temporary Employees) .................................................................66

16.01 Intent ....................................................................................................................................66

16.02 Safety Committee..................................................................................................................66

16.03 Safety Boots...........................................................................................................................66 SECTION 17.00 - REDUCTION IN FORCE (Regular Employees)....................................................................67

17.01 Layoffs...................................................................................................................................67

17.02 Bumping................................................................................................................................67

17.03 Notification ...........................................................................................................................68

17.04 Reassignment........................................................................................................................68

17.05 Reinstatement.......................................................................................................................68

17.06 Continuation of Insurance Benefits.......................................................................................68

17.07 Retirement in Lieu of Layoff ..................................................................................................68

17.08 Improper Layoff.....................................................................................................................69

17.09 Transition Training .................................................................................................................69 SECTION 18.00 - CONTRACTING OUT (Regular Employees) .......................................................................69 SECTION 19.00 - CAREER ADVANCEMENT ..................................................................................................70

19.01 Career Ladders (Regular and Temporary Employees)..........................................................70

19.02 Job Opening Announcements(Regular and Temporary Employees) .....................................70

19.03 Training Regular Employees).................................................................................................70

20.85 7

19.04 Cross Training (Regular Employees)........................................................................................70

19.04.01 Training and Cross Training (Temporary Employees) ..........................................................70

19.05 Certification of Eligibles for Promotional Examinations (Regular Employees) ......................70

19.06 Reimbursement for License and Certificates (Temporary Employees).................................71

19.07 Absence for Examination (Temporary Employees)...............................................................71

19.08 Applying to Vacant Positions (Temporary Employees).................................................................71 SECTION 20.00 - TUITION REIMBURSEMENT(Regular employees) .............................................................71 SECTION 21.00 - GRIEVANCE PROCEDURE (Regular Employees)................................................................71

21.01 Purpose .................................................................................................................................71

21.02 Definition ..............................................................................................................................71

21.03 Limitations ............................................................................................................................72

21.04 Procedures ............................................................................................................................72 Step I:.................................................................................................................................................72 Step II:.................................................................................................................................................72 Step III:................................................................................................................................................73 Step IV:................................................................................................................................................73 SECTION 22.00 - DISCIPLINARY APPEALS PROCEDURE (Regular Employees)..............................................74

22.01 Definition ..............................................................................................................................74

22.02 Pre-Action Procedure............................................................................................................74

22.03 Post-Action Appeal................................................................................................................74 SECTION 23.00 – DISCIPLINE (Regular Employees) .....................................................................................76

23.01 Disciplinary Procedures.........................................................................................................76

23.02 Notice of Proposed Disciplinary Action.................................................................................76

23.03 Written Reprimands..............................................................................................................76 SECTION 24.00 – COMPENSATION STUDY (Regular Employees) ................................................................76 SECTION 25.00 - AUTHORIZED AGENTS (Regular and Temporary Employees) ...........................................77 SECTION 26.00 – RENEGOTIATIONS (Regular and temporary Employees) ................................................77 SECTION 27.00 – SEVERABILITY (Regular and Temporary Employees........................................................77 SECTION 28.00 - HOLIDAY CLOSURE (Regular Employees).........................................................................78 SECTION 29.00 - AUTOMATIC DEPOSIT-NEW HIRES (Regular and Temporary Employees) .......................78 SECTION 30.00 - ELECTRONIC PAY STUBS (Regular and Temporary Employees) .......................................78 SECTION 31.00 – TEMPORARY EMPLOYEES................................................................................................78

31.01 Work Assignments ................................................................................................................78

31.01.01 Work Shifts ...................................................................................................................78

31.01.02 Lunch Period.................................................................................................................79

20.86 8

31.01.03 Rest Periods..................................................................................................................79

31.02 Salary steps ...........................................................................................................................79

31.02.01 Salary Rates Upon Appointment .........................................................................................79

31.02.02 Advancement within the Salary Range................................................................................79

31.02.03. Salary Upon Return to Temporary Employment ..........................................................80

31.02.04 Salary Step When Hired Into a Regular Position ..........................................................80

31.02.05 EMT Differential ...........................................................................................................80

31.02.06 Beach Lifeguard II Duty Officer Stipend ......................................................................80

31.02.07 Call Back .......................................................................................................................80

31.02.08 Duty Assignment – Marine Rescue Unit Members Only ..............................................81

31.02.09 Duty Assignment – All Other Temporary Service Employees.......................................81

31.02.10 Holiday Premium Pay ...................................................................................................82

31.03 Seniority................................................................................................................................83

31.04 Overtime ...............................................................................................................................83

31.05 Leaves of Absence................................................................................................................83

31.05.01 Bereavement Leave......................................................................................................83

31.05.02 Jury Duty.......................................................................................................................84

31.05.03 Blood Donations...........................................................................................................84

31.05.04 Worker’s Compensation...............................................................................................84

31.06 In-Lieu Paid Time...................................................................................................................84

31.07 Sick Leave..............................................................................................................................84

31.08 Benefits .................................................................................................................................86

31.08.01 Health Care Reimbursement ........................................................................................86

31.08.02 Bus Passes ....................................................................................................................86

31.08.03 CalPERS Long Term Care...............................................................................................86

31.08.04 Medicare ......................................................................................................................86

31.08.05 Alternative Transportation Incentive Program ............................................................86

31.09 Grievance Procedure ............................................................................................................87

31.09.01 Purpose ........................................................................................................................87

31.09.02 Definition......................................................................................................................87

31.09.03 Limitations....................................................................................................................87

31.09.04 Procedures ...................................................................................................................87

31.10 Discipline...............................................................................................................................88

31.11 Written Reprimands..............................................................................................................88 SECTION 1.00 – PREAMBLE .........................................................................................................................20

20.87 9
SECTION 2.00 – TERM (Regular and Temporary Employees)......................................................................20 SECTION 3.00 - NO ABROGATION OF RIGHTS (Regular and Temporary Employees)....................................20 SECTION 4.00 - PAST PRACTICES (Regular and Temporary Employees)......................................................21 SECTION 5.00 – RECOGNITION (Regular and Temporary Employees) ........................................................21 SECTION 6.00 - NO DISCRIMINATION (Regular and Temporary Employees)...............................................21 SECTION 7.00 - UNION RIGHTS (Regular and Temporary Employees)........................................................22

7.01 Payroll Deductions ....................................................................................................................22

7.01.01 Confidential Employees ....................................................................................................23

7.02 Memorandum of Understanding - Printing and Distribution .....................................................23

7.03 Union Notification ....................................................................................................................23

7.04 Display Space and Department Mail .........................................................................................23

7.05 Time Off for Union Officials.......................................................................................................23

7.05.01 Meet and Confer or Consult Sessions...............................................................................23

7.05.02 Union Stewards .................................................................................................................24

7.05.03 Chief Stewards...................................................................................................................24

7.05.04 Union Leave ....................................................................................................................24

7.06 Access to City Facilities ..............................................................................................................25

7.07 Bargaining Unit Employee Information.....................................................................................26

7.08 Area Meetings ...........................................................................................................................26

7.09 C.O.P.E. Deduction .....................................................................................................................27

7.10 New Employee Orientation.......................................................................................................27

7.11 Weingarten Rights.....................................................................................................................27

7.12 Labor Management Meeting ....................................................................................................27 SECTION 8.00 - PERSONNEL ACTIONS (Regular and Temporary)................................................................28

8.01 Personnel Files (Regular Employees).........................................................................................28

8.01.01 Performance Evaluations.................................................................................................29

8.01.02 Late Evaluations...............................................................................................................29

8.02 Probation (Regular Employees).................................................................................................30

8.02.01 Probationary Period.........................................................................................................30

8.02.02 Objective of Probationary Period.....................................................................................30

8.02.03 Rejection of Probationary Employee ...............................................................................30

8.02.04 Extension of Probation.....................................................................................................31

8.03 Salary Steps, Personnel Files and Performance Evaluations (Temporary Employees)..............31

8.03.01 Personnel Files .................................................................................................................31

8.03.02 Performance Evaluations .................................................................................................31

20.88 10

8.03.03 Late Evaluations ...............................................................................................................32

8.03.04 Salary Rates Upon Appointment ......................................................................................32

8.03.05 Advancement within the Salary Range.............................................................................32 SECTION 9.00 - WORK ASSIGNMENTS (Regular Employees).......................................................................33

9.01 Work Shifts ................................................................................................................................33

9.02 Alternate Schedules/Flex Time, Telework, VTO and Developmental Assignments...................33

9.02.01 Voluntary Time Off...........................................................................................................33

9.02.02 Developmental Assignments ...........................................................................................33

9.03 Sanitation Work Hours...............................................................................................................33

9.04 Part-Time Employees.................................................................................................................34

9.05 Seniority.....................................................................................................................................34

9.06 Lunch Period .............................................................................................................................34

9.07 Rest Periods ..............................................................................................................................34

9.08 Clean-Up Time ...........................................................................................................................34

9.08.01 Dress Time ........................................................................................................................35

9.09 Emergency Meals ......................................................................................................................35

9.10 Light Duty Assignments..............................................................................................................35

9.11 Parks Work Schedule ................................................................................................................35

9.12 Employment of “Regular, Limited Term” Employees.................................................................36

9.12.01 Definition .........................................................................................................................36

9.12.02 Notification to Employee..................................................................................................36

9.12.03 Terms and Conditions......................................................................................................36

9.13 Water Treatment Plant Operator Shift Selection......................................................................37 SECTION 10.00 - PAY RATES AND PRACTICES (Regular and Temporary).....................................................37

10.01 Salary Steps (regular) ............................................................................................................38

10.01.01 Salary Rates Upon Appointment ..................................................................................38

10.01.02 Advancement within the Range ...................................................................................38

10.02 Salary/Retirement (Regular Employees)...............................................................................39

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I)...................................................39

10.02.02 Employees Hired on or After May 12, 2012 but before January 1, 2013 (Tier II).........40

10.02.03 Employees Hired on or After January 1, 2013 (Tier III) ................................................41

10.02.04 Retirement, All Regular Employees..............................................................................41

10.02.05 Sick Leave Conversion ..................................................................................................42

10.03 Longevity ...............................................................................................................................42

10.04 Working Out of Classification (Regular Employees) ..............................................................42

20.89 11

10.05 Shift Differential (Regular Employees) ..................................................................................43

10.05.01 Evenings .......................................................................................................................43

10.05.02 Weekends.....................................................................................................................43

10.06 Lone Operator Differential ....................................................................................................43

10.06.01 Water Plant Lone Operator ..........................................................................................44

10.06.02 Wastewater Plant Lone Operator.................................................................................44

10.07 Overtime (Regular Employees) .............................................................................................44

10.08 Callback (Regular Employees) ...............................................................................................45

10.08.01 Callback by Phone or Computer...................................................................................45

10.08.02 Callback to Worksite.....................................................................................................45

10.09 Duty Assignment (Regular Employees) .................................................................................46

10.09.01 Definition......................................................................................................................46

10.09.02 Assignment...................................................................................................................46

10.09.03 Compensation ..............................................................................................................46

10.09.04 Fatigue Pay ...................................................................................................................47

10.10 Bilingual Pay .........................................................................................................................48

10.11 City Translator (Regular Employees) .....................................................................................48

10.12 Overpayments and Repayment of Funds .............................................................................48

10.13 Reimbursement for Licenses and Certificates (Regular Employees) .....................................49

10.14 Departmental Technology Coordinator Differential (Regular Employees) ...........................49

10.15 Leak Detection (Regular Employees) ....................................................................................49

10.16 Water Department SCADA System Coordinator (Regular Employees) .................................49

10.17 Water Department Store Keeper (Regular Employees).........................................................49

10.18 Scuba Diving Premium Pay (Regular Employees)..................................................................50

10.19 Confined Space Rescue Premium Pay (Regular Employees).................................................50

10.20 Alternative Transportation Incentive Program (Regular Employees) ...................................50

10.22 Hazardous Materials Premium Pay (Regular Employees).....................................................52 SECTION 11.00 – HOLIDAYS (Regular Employees) ......................................................................................52

11.01 Fixed Holidays........................................................................................................................52

11.02 Floating Holidays ...................................................................................................................53

11.03 Holiday Work.........................................................................................................................53

11.04 Holiday on Regular Day Off ...................................................................................................53

11.05 Holidays During Vacation ......................................................................................................54

20.90 12

11.06 Holiday Pay-off......................................................................................................................54 SECTION 12.00 – VACATION (Regular Employees)......................................................................................54

12.01 Accrual ..................................................................................................................................54

12.02 Scheduling of Vacation ..........................................................................................................54

12.03 Illness During Vacation...........................................................................................................54

12.04 Rate of Maximum Vacation Accrual ......................................................................................54 SECTION 13.00 - SICK LEAVE (Regular Employees)......................................................................................55

13.01 Definition ..............................................................................................................................55

13.02 Accrual and Use.....................................................................................................................55

13.02.01 Family Sick Leave ..............................................................................................................55

13.03 Limitations ............................................................................................................................55

13.04 Sick Leave Incentive Program ................................................................................................56 SECTION 14.00 - LEAVES OF ABSENCE (Regular Employees).......................................................................56

14.01 Paid Leaves of Absence .........................................................................................................56

14.01.01 Personal Business Leave ...............................................................................................56

14.01.02 Bereavement Leave......................................................................................................56

14.01.03 Jury Duty.......................................................................................................................56

14.01.04 Absence for Examination...............................................................................................57

14.01.05 Blood Donations ...........................................................................................................57

14.01.06 Military Duty.................................................................................................................57

14.01.07 Workers’ Compensation...............................................................................................57

14.01.08 Paid Birth/Adoptive Leave ............................................................................................58

14.01.09 Critical Incident/Recovery Leave..................................................................................58

14.02 Unpaid Leaves of Absence.....................................................................................................58

14.02.01 Medical or Personal Leave ...........................................................................................58

14.02.02 Pregnancy Disability Leave ...........................................................................................58

14.02.03 Family Leave..................................................................................................................59

14.03 Continuation of Insurance Benefits During Unpaid Leaves of Absence.................................60

14.03.01 Personal Leave..............................................................................................................61

14.03.02 Medical Leave...............................................................................................................61

14.03.03 Family Leave..................................................................................................................61 SECTION 15.00 – BENEFITS (Regular Employees) .......................................................................................61

15.01 Medical Benefits ...................................................................................................................61

15.02 Dental Insurance ...................................................................................................................62

15.03 Vision.....................................................................................................................................62

20.91 13

15.04 Long Term Disability..............................................................................................................62

15.04.01 Short Term Disability....................................................................................................62

15.05 Part-Time Employees - Benefits Proration .............................................................................63

15.06 Medical Plan..........................................................................................................................63

15.07 Retiree Health Program.........................................................................................................63

15.08 Life Insurance ........................................................................................................................63

15.09 Uniform Allowance................................................................................................................64

15.10 Equipment Mechanic Tools...................................................................................................64

15.11 Principal Domestic Partners...................................................................................................64 SECTION 16.00 – SAFETY (Regular and Temporary Employees) .................................................................64

16.01 Intent ....................................................................................................................................64

16.02 Safety Committee .................................................................................................................65

16.03 Safety Boots...........................................................................................................................65 SECTION 17.00 - REDUCTION IN FORCE (Regular and Temporary Employees)...........................................65

17.01 Layoffs...................................................................................................................................65

17.02 Bumping................................................................................................................................66

17.03 Notification ...........................................................................................................................67

17.04 Reassignment........................................................................................................................67

17.05 Reinstatement.......................................................................................................................67

17.06 Continuation of Insurance Benefits.......................................................................................67

17.07 Retirement in Lieu of Layoff ..................................................................................................67

17.08 Improper Layoff.....................................................................................................................67

17.09 Transition Training .................................................................................................................67 SECTION 18.00 - CONTRACTING OUT..........................................................................................................68 SECTION 19.00 - CAREER ADVANCEMENT (Regular and Temporary Employees).......................................68

19.01 Career Ladders ......................................................................................................................68

19.02 Job Opening Announcements................................................................................................68

19.03 Training ................................................................................................................................69

19.04 Cross Training .......................................................................................................................69

19.05 Certification of Eligibles for Promotional Examinations (Regular Employees) ......................69

19.06 Reimbursement for License and Certificates (Temporary Employees).................................69

19.07 Absence for Examination (Temporary Employees)...............................................................69 SECTION 20.00 - TUITION REIMBURSEMENT(Regular employees) .............................................................69 SECTION 21.00 - GRIEVANCE PROCEDURE (Regular Employees)................................................................70

21.01 Purpose .................................................................................................................................70

20.92 14

21.02 Definition ..............................................................................................................................70

21.03 Limitations ............................................................................................................................70

21.04 Procedures ............................................................................................................................70 Step I:.................................................................................................................................................70 Step II:.................................................................................................................................................71 Step III:................................................................................................................................................71 Step IV:................................................................................................................................................71 SECTION 22.00 - DISCIPLINARY APPEALS PROCEDURE (Regular Employees)..............................................72

22.01 Definition ..............................................................................................................................72

22.02 Pre-Action Procedure............................................................................................................72

22.03 Post-Action Appeal................................................................................................................73 SECTION 23.00 – DISCIPLINE (Regular Employees) .....................................................................................74

23.01 Disciplinary Procedures.........................................................................................................74

23.02 Notice of Proposed Disciplinary Action.................................................................................74

23.03 Written Reprimands..............................................................................................................74 SECTION 24.00 – COMPENSATION STUDY ..................................................................................................75 SECTION 25.00 - AUTHORIZED AGENTS ......................................................................................................75 SECTION 26.00 - RENEGOTIATIONS ............................................................................................................76 SECTION 27.00 - SEVERABILITY ...................................................................................................................76 SECTION 28.00 - HOLIDAY CLOSURE (Regular Employees) .........................................................................76 SECTION 29.00 - AUTOMATIC DEPOSIT-NEW HIRES (Regular Employees).................................................76 SECTION 30.00 - ELECTRONIC PAY STUBS (Regular Employees).................................................................76 SECTION 31.00 – TEMPORARY EMPLOYEES................................................................................................77

31.01 Work Assignments ................................................................................................................78

31.01.01 Work Shifts ...................................................................................................................78

31.01.02 Lunch Period.................................................................................................................78

31.01.03 Rest Periods..................................................................................................................78

31.02 Salary.....................................................................................................................................78

31.02.01. Salary Upon Return to Temporary Employment ..........................................................78

31.02.02 Salary Step When Hired Into a Regular Position ..........................................................79

31.02.03 EMT Differential ...........................................................................................................79

31.02.04 Beach Lifeguard II Duty Officer Stipend ......................................................................79

31.02.05 Call Back .......................................................................................................................79

31.02.06 Duty Assignment – Marine Rescue Unit Members Only ..............................................80

31.02.07 Duty Assignment – All Other Temporary Service Employees.......................................80

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31.02.08 Holiday Premium Pay ...................................................................................................81

31.03 Seniority................................................................................................................................81

31.04 Overtime ...............................................................................................................................81

31.05 Leaves of Absence................................................................................................................82

31.05.01 Bereavement Leave......................................................................................................82

31.05.02 Jury Duty.......................................................................................................................82

31.05.03 Blood Donations...........................................................................................................83

31.05.04 Worker’s Compensation...............................................................................................83

31.06 In-Lieu Paid Time...................................................................................................................83

31.07 Sick Leave..............................................................................................................................83

31.08 Benefits .................................................................................................................................85

31.08.01 Health Care Reimbursement ........................................................................................85

31.08.02 Bus Passes ....................................................................................................................85

31.08.03 CalPERS Long Term Care...............................................................................................85

31.08.04 Medicare ......................................................................................................................85

31.08.05 Alternative Transportation Incentive Program ............................................................85

31.09 Grievance Procedure ............................................................................................................85

31.09.01 Purpose ........................................................................................................................85

31.09.02 Definition......................................................................................................................85

31.09.03 Limitations....................................................................................................................85

31.09.04 Procedures ...................................................................................................................86

31.10 Discipline...............................................................................................................................87

31.11 Written Reprimands..............................................................................................................87

31.12 Labor/Management Committee ...........................................................................................87

TABLE OF CONTENTS

SECTION TITLE PAGE
SECTION 1.00 PREAMBLE..........................................................................................8 SECTION 2.00 TERM.....................................................................................................8 SECTION 3.00 NO ABROGATION OF RIGHTS......................................................8 SECTION 4.00 PAST PRACTICES ..............................................................................9

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SECTION 5.00 RECOGNITION ...................................................................................9 SECTION 6.00 NO DISCRIMINATION ......................................................................9 SECTION 7.00 UNION RIGHTS...................................................................................9

7.01 - Payroll Deductions........................................................................9

7.01.01 Confidential Employees…………………………………10

7.02 - Memorandum of Understanding - Printing and Distribution .....10

7.03 - Union Notification...............................................................11

7.04 - Display Space and Department Mail ........................................11

7.05 - Time Off for Union Officials......................................................11

7.05.01 Meet and Confer or Consult Sessions …………………..11

7.05.02 Union Stewards …………………………………………11

7.05.03 Chief Stewards ………………………………………….12

7.05.04 Union Leave …………………………………………….12

7.06 - Access to City Facilities .............................................................12

7.07 - Bargaining Unit Employee Information .....................................12

7.08 - Area Meetings.............................................................................13

7.09 - C.O.P.E. Deduction ....................................................................13

7.10 New Employee Orientation ……………………………………..13

7.11 Weingarten Rights…………………………………………….

SECTION 8.00 PERSONNEL ACTIONS...................................................................14

8.01 - Personnel Files............................................................................14

8.01.01 Performance Evaluations ……………………………….14

8.01.02 Late Evaluations ………………………………………...14

8.02 - Probation.....................................................................................15

8.02.01 Probationary Period ……………………………………..15

8.02.02 Objective of Probationary Period ………………………..15

8.02.03 Rejection of Probationary Employee ……………………15

8.02.04 Extension of Probation …………………………………..15
SECTION 9.00 WORK ASSIGNMENTS ...................................................................15

9.01 - Work Shifts................................................................................15

TABLE OF CONTENTS

SECTION TITLE PAGE

9.02 - Alternate Schedules/Flex Time/Telework/VTO.........................16

9.02.01 Voluntary Time Off …………………………………….16

9.02.02 Developmental Assignments ……………………………16

9.03 - Sanitation Work Hours ...............................................................16

9.04 - Part-Time Employees .................................................................16

9.05 - Seniority......................................................................................17

9.06 - Lunch Period...............................................................................17

9.07 - Rest Periods ................................................................................17

9.08 - Clean-Up Time ...........................................................................17

9.08.01 Dress Time ………………………………………………17

9.09 - Emergency Meals .......................................................................17

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9.10 - Light Duty Assignments .....................................................18

9.11 - Parks Work Schedule..................................................................18

9.12 - Employment of “Regular, Limited Term” Employees .............18

9.12.01 Definition ………………………………………………. 18

9.12.02 Notification to Employee ………………………………..18

9.12.03 Terms and Conditions …………………………………...19

9.13 Water Treatment Plant Operator Shift Selection
SECTION 10.00 PAY RATES AND PRACTICES ....................................................19

10.01 - Salary Steps ..............................................................................20

10.01.01 Salary Rates Upon Appointment ………………………20

10.01.02 Advancement Within the Range ……………………….20

10.02 - Salary/Retirement .....................................................................21

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I) …21

10.02.02 Employees Hired On or After May 12, 2012 (Tier II) ….21

10.02.03 Employees Hired On or After January 1, 2013 (Tier III) .22

10.02.04 Retirement, All Employees ……………………………..22

10.02.05 Sick Leave Conversion …………………………………22

10.03 - Longevity..................................................................................22

10.04 - Working Out of Classification..................................................22

10.05 - Shift Differential.......................................................................23

10.06 - Lone Operator Differential .......................................................24

10.06.01 Water Plant Lone Operator …………………………….23

10.06.02 Wastewater Plant Lone Operator ………………………24

10.07 - Overtime ...................................................................................24

10.08 - Callback ....................................................................25

10.08.01 Callback by Phone or Computer ……………………….25

10.08.02 Callback to Worksite …………………………………...25

10.09 - Duty Assignment ......................................................................26

10.09.01 Definition ………………………………………………26

10.09.02 Assignment ……………………………………………..26

10.09.03 Compensation …………………………………………..26

10.10 - Bilingual Pay ............................................................................27

10.11 - City Translator .................................................................27

10.12 - Overpayments ................................................................27

10.13 - Reimbursement for Licenses and Certificates.....................28

TABLE OF CONTENTS

SECTION TITLE PAGE

10.14 - Departmental Technology Coordinator Differential ................28

10.15 - Leak Detection..........................................................................28

10.16 - Water Department SCADA System Coordinator ..................28

10.17 - Water Department Store Keeper...............................................28

10.18 - Scuba Diving Premium Pay......................................................29

10.19 - Confined Space Rescue Premium Pay......................................29

10.20 - Alternative Transportation Incentive Program .........................29

10.21 - Planning Dep’t Certification Premium Pay…………………..29

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10.22 – Hazardous Materials Premium Pay ………………………….31
SECTION 11.00 HOLIDAYS .......................................................................................31

11.01 - Fixed Holidays..........................................................................31

11.02 - Floating Holidays......................................................................32

11.03 - Holiday Work ...........................................................................32

11.04 - Holiday on Regular Day Off.....................................................32

11.05 - Holidays During Vacation .............................................32

11.06 - Holiday Pay-off ........................................................................32 SECTION 12.00 VACATION ............................................................................33

12.01 - Accrual......................................................................................33

12.02 - Scheduling of Vacation.............................................................33

12.03 - Illness During Vacation ................................................33

12.04 - Rate of Maximum Vacation Accrual......................................33 SECTION 13.00 SICK LEAVE ....................................................................................33

13.01 - Definition..................................................................................33

13.02 - Accrual and Use........................................................................34

13.02.01 Family Sick Leave …………………………………….34

13.03 - Limitations...............................................................................34

13.04 - Sick Leave Incentive Program..................................................34 SECTION 14.00 LEAVES OF ABSENCE ..................................................................35

14.01 - Paid Leaves of Absence............................................................35

14.01.01 Personal Business Leave ………………………………35

14.01.02 Bereavement Leave ……………………………………35

14.01.03 Jury Duty ……………………………………………….35

14.01.04 Absence for Examination ………………………………35

14.01.05 Blood Donations ………………………………………..36

14.01.06 Military Duty ……………………………………………36

14.01.07 Workers’ Compensation ………………………………..36

14.01.08 Paid Birth/Adoptive Leave ……………………………...36

14.02 - Unpaid Leaves of Absence .......................................................36

14.02.01 Medical or Personal Leave ………………………………36

14.02.02 Pregnancy Disability Leave …………………………….. 37

TABLE OF CONTENTS

SECTION TITLE PAGE

14.02.03 Family Leave …………………………………………….37

14.03 - Continuation of Insurance Benefits During...................................39 Unpaid Leaves of Absence

14.03.01 Personal Leave ………………………………………….39

14.03.02 Medical Leave …………………………………………..39

14.03.03 Family Leave ……………………………………………39
SECTION 15.00 BENEFITS ..............................................................................39

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15.01 - Medical Benefits......................................................................39

15.02 - Dental Insurance.........................................................40

15.03 - Vision........................................................................................40

15.04 - Long Term Disability ...............................................................40

15.04.01 Short Term Disability ………………………………….40

15.05 - Part-Time Employees – Benefits Proration ..............................41

15.06 - Medical Plan ..............................................................41

15.07 - Retiree Health Program ............................................................41

15.08 - Life Insurance ............................................................41

15.09 - Uniform Allowance ..................................................................41

15.10 - Equipment Mechanic Tools .....................................................42

15.11 - Principal Domestic Partners .....................................................42 SECTION 16.00 SAFETY.................................................................................42

16.01 - Intent ..............................................................................42

16.02 - Safety Committee .....................................................................43

16.03 - Safety Boots..............................................................................43 SECTION 17.00 REDUCTION IN FORCE.............................................................43

17.01 - Layoffs..................................................................................43

17.02 - Bumping ...................................................................................44

17.03 - Notification.......................................................................44

17.04 - Reassignment ........................................................................44

17.05 - Reinstatement ...........................................................................45

17.06 - Continuation of Insurance Benefits ..........................................45

17.07 - Retirement in Lieu of Layoff .................................................45

17.08 - Improper Layoff........................................................................45

17.09 - Transition Training ...................................................................45 SECTION 18.00 CONTRACTING OUT ....................................................................45 SECTION 19.00 CAREER ADVANCEMENT........................................................46

19.01 - Career Ladders..........................................................................46

19.02 - Job Opening Announcements............................................46

19.03 - Training.....................................................................................46

19.04 - Cross Training ..........................................................................46

19.05 - Certification of Eligibles for Promotional Examinations .........47

TABLE OF CONTENTS

SECTION TITLE PAGE
SECTION 20.00 TUITION REIMBURSEMENT ......................................................47 SECTION 21.00 GRIEVANCE PROCEDURE ..................................................47

21.01 - Purpose .....................................................................................47

21.02 - Definition..................................................................................47

21.03 - Limitations...............................................................................47

21.04 - Procedures.................................................................................48

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SECTION 22.00 DISCIPLINARY APPEALS PROCEDURE..................................50

22.01 - Definition..................................................................................50

22.02 - Pre-Action Procedure................................................................50

22.03 - Post-Action Appeal...................................................................50 SECTION 23.00 DISCIPLINE .....................................................................................52

23.01 - Disciplinary Procedures............................................................51

23.02 Notice of Proposed Disciplinary Action ……………………….52

23.03 - Written Reprimands..................................................................52 SECTION 24.00 RECLASSIFICATION.....................................................................52 SECTION 25.00 AUTHORIZED AGENTS ......................................................53 SECTION 26.00 RENEGOTIATIONS ......................................................................53 SECTION 27.00 SEVERABILITY ..............................................................................53 SECTION 28.00 HOLIDAY CLOSURE .....................................................................53 SECTION 29.00 AUTOMATIC DEPOSIT-NEW HIRES ........................................53 SECTION 30.00 ELECTRONIC PAY STUBS HIRES .............................................53

EXHIBIT A - SERVICE CLASSIFICATIONS AND SALARY
COMPENSATION PLAN ....................................................................55 EXHIBIT A2 - TEMPORARY CLASSIFICATIONS AND SALARY

COMPENSATION PLAN

EXHIBIT B - STATEMENT OF EQUAL EMPLOYMENT
OPPORTUNITY AND NON-DISCRIMINATION POLICY ...........66

EXHIBIT C - DISCRIMINATION/HARASSMENT POLICY
AND COMPLAINT PROCEDURE.....................................................70 EXHIBIT D - DIVISION STEWARDS .......................................................................75 EXHIBIT E - CLASSIFICATIONS REQUIRING SAFETY BOOTS.....................76

TABLE OF CONTENTS

SECTION TITLE PAGE

EXHIBIT F - AGREEMENT REGARDING ASSISTANT TO LANDFILL
OPERATIONS ASSIGNMENT ................................................................78 EXHIBIT G –RESPECTFUL WORKPLACE CONDUCT …………………………..80

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EXHIBIT H – CONFIDENTIAL CLASSIFICATIONS ………………………............89 EXHIBIT I – CLASSIFICATIONS ELIGIBLE TO RECEIVE HAZARDOUS MATERIALS PREMIUM PAY ................................................................90

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22 20252-20285

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ
AND
CITY OF SANTA CRUZ SERVICE EMPLOYEES, S.E.I.U., LOCAL 521 SECTION 1.00 – PREAMBLE
This Memorandum of Understanding is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the City of Santa Cruz Service Employees, Service Employees International Union, Local 521 and the City of Santa Cruz Temporary Service Employees, Service Employees’ International Union, SEIU Local 521, (hereinafter referred to as the Union), and, upon ratification by the Union membership and a determination is made by the City Council, is binding under Section 3505.1 of the Government Code.

The City and the Union have met and conferred in good faith and have arrived at an understanding concerning wages, hours, working conditions and other terms of employment.

The City and the Union recognize their obligation to provide services of the highest quality and efficiency to the community.

The City and the Union affirm the principal that harmonious labor/management relations are to be promoted and furthered.

SECTION 2.00 – TERM
The term of this agreement shall begin on October 11, 2025, or when Council approves the successor MOU in open session, whichever is later,2 and shall fully terminate on October 10, 20285.

Unless otherwise stated herein, all payroll related changes identified in this agreement will commence with the pay period beginning October 11, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later. October 1, 2022.

SECTION 3.00 - NO ABROGATION OF RIGHTS
The parties acknowledge that City responsibilities and rights as indicated in current Article 1, Section 1, (Appendix A) of the City Personnel Rules and Regulations and all applicable State or Municipal laws are neither abrogated nor made subject to the meet and confer process by adoption of this Memorandum of Understanding.

Pursuant to Article 1, Section 1, (Appendix A), the City’s rights include, but are not limited to the exclusive right to determine the mission of its constituent departments, commissions, and boards; to determine the procedures and standards of selection for employment and promotion; to direct its employees; to assign work to employees in accordance with the requirements determined by the City; to establish and change work schedules and assignments; to determine the content of job classifications;

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23 to hire, transfer and promote or to lay-off employees for lack of work; to suspend, discipline and discharge employees for proper cause; to expand or to diminish services; and to determine the methods, means and personnel by which government operations are to be conducted, except as specifically modified by the terms of the Memorandum of Understanding.

The parties further acknowledge that the rights of employees are neither abrogated nor diminished by the adoption of this Memorandum of Understanding.

SECTION 4.00 - PAST PRACTICES
The parties agree that they shall adhere to established labor relation’s principles in handling past practices. The parties agree that a past practice may be established if the practice meets all of the following:
1) The practice is unequivocal and consistently performed; 2) The practice is clearly communicated by the City and acted upon by the Union or clearly communicated by the Union and acted upon by the City; and 3) The practice is readily identifiable over a reasonable period of time as a fixed and established practice accepted by both parties.

The parties agree in handling past practice issues within the scope of representation:
1) Past practices superseded by revised M.O.U. language are null and void; 2) Past practices which contradict existing M.O.U. language or written City rules shall be null and void upon reasonable notice from the City that the language will be followed;
3) Past practices within scope which are not covered by M.O.U. language or City rules shall remain in effect through the term of the M.O.U. unless changed through mutual agreement.

SECTION 5.00 -– RECOGNITION
Pursuant to the Meyers-Milias-Brown Act and the City’s Personnel Rules and Regulations, the Union is certified as the recognized employee organization for full-time, limited-term (See Section 9.12), and part-time regular employees in classifications listed in the City’s Salary Compensation Plan for Service Employees, the current version of which is Exhibit A attached hereto; and temporary employees (See Section 31 and Exhibit A2). This unit shall be titled Service Employees.

SECTION 6.00 - NO DISCRIMINATION
A. The Union and the City agree to adhere to the City Council policies pertaining to the prevention of discrimination, harassment, and disrespectful workplace conduct as listed in Exhibits B, C, and G as well as applicable Federal and State discrimination law.

B. Neither the City, nor the Union, shall interfere with, intimidate, coerce or discriminate against City employees because of their exercising their right to form, join, and participate in the

20.102
24 activities of the Union, or exercising their right to refuse to join or participate in the activities of the Union.

SECTION 7.00 - UNION RIGHTS

7.01 PAYROLL DEDUCTIONS
A. The City shall honor the terms of the employee’s authorization for Union deductions, for example, any terms of a membership and deduction authorization card the Union has supplied the employee. The employee may only revoke the authorization pursuant to the terms of the authorization the employee signed.

B. Deductions shall start the pay period after the City receives notification of the authorization. The City shall transmit such payments to the Union through electronic funds no later than thirty (30) days after the deduction from the employee’s earnings occur.

C. Requests to authorize payroll deductions for Union purposes or COPE deductions shall be directed by the employees to the Union rather than the City. Requests to revoke or change the authorization shall also be directed to the Union rather than the City. The City shall rely on the Union’s explanation in a certified list, submitted by a representative of the Union who has the authority to bind the Union, regarding whether authorization/ revocations/ changes in deductions have been requested by the represented employees.

D. The Union shall not provide the City a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization.

E. The City shall on a bi-weekly basis, provide the Union with an electronic file containing payroll information for SEIU 521 employees including the following information:
name; job classification; department; work location; work phone; work email (if available); personal email (if available); home address; mailing address; cell phone (if available); home telephone number; date of birth; date of hire; hourly rate; status (part-time or full-time); union deductions; annual salary; and employee identification number.

F. The Union shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agent (collectively hereafter the “Indemnitees”) from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) arising from the application of any provisions under Sections 7.01-7.10, including, but not limited to, any claims made by any represented employees for the dues deductions the City made in reliance on the Union’s certification, and any claims made by any represented employees for any deduction cancellation or modification the City made in reliance on the information provided by the Union. In the event any such action or proceeding is brought against the City by reason of any such claim, the Union, upon notice from the City, covenants to defend such action or proceeding by counsel reasonably satisfactory to the City. Further, the Union agrees to indemnify and hold harmless the Indemnitees for any loss or damage arising from the Union’s actions or inactions under Sections 7.01-7.10.

G. Violations of this section of the MOU are grievable.

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25 7.01.01 Confidential Employees
Employees filling positions designated as confidential (see Exhibit H) are represented and may hold membership in the Union but are excluded from active participation as negotiators, committee chairpersons, or any other role in which they represent the Union in matters within the scope of representation pursuant to Section 3507.5 of the Meyers-Milias-Brown Act.

7.02 MEMORANDUM OF UNDERSTANDING - PRINTING AND DISTRIBUTION The City and Union will share the cost of printing copies of this Memorandum of Understanding in a mutually agreeable format and make it available to all members. Such distribution shall only occur during an employee’s rest period, meal break or non-work time.

When a person is hired in any classification covered by this Memorandum of Understanding, the City shall notify the person that the Union is the recognized employee organization and of the agency shop provision. The City will provide that person with a copy of the current Memorandum of Understanding.

7.03 UNION NOTIFICATION
Except in cases of bona fide emergencies, the Union shall be given fourteen (14) calendar days’ advance written notification of any ordinance, rule, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the City Council, or management, and shall be given the opportunity to meet and confer with the City representative prior to its adoption.

7.04 DISPLAY SPACE AND DEPARTMENT MAIL
The City shall provide display space at each facility covered by this Agreement, for the posting of notices approved by the Union. It shall be the Union’s responsibility to maintain the information on the display space. The display space will be clearly marked as Union Display Space.

The Union shall have reasonable access to display space and departmental mail for the purpose of Union communications.

7.05 TIME OFF FOR UNION OFFICIALS

7.05.01 Meet and Confer or Consult Sessions
During the term of this agreement, a reasonable number of Union members (eight plus the President or Vice-President of the Local) shall be allowed a reasonable amount of paid release time off for meet and confer or meet and consult sessions scheduled with the City Council’s designated representative, providing there is no disruption of work in the employee’s division.

The exact number to be released shall be determined by mutual agreement prior to the session; and shall vary by the type of issue being discussed (i.e., single department affected, multiple departments affected, etc.). The Union shall notify the Human Resources Director in advance of the meeting of the names of members who will be in attendance.

Human Resources will request release time from the supervisors of those Union members before leaving their work or work locations, such Union members will obtain permission from their supervisors. Supervisors are assumed to have granted such permission unless they

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26 respond otherwise to the request from Human Resources.

7.05.02 Union Stewards
The Union shall be authorized to designate employees within the unit as stewards, not to exceed twenty- five (25) in number, and must furnish a list of these stewards to the Human Resources Department annually and as needed when changes occur. Stewards shall be allowed a reasonable amount of paid release time for the purpose of representing a unit employee within the steward’s area of representation as shown in Exhibit D in the filing or processing of identified grievances or disciplinary appeals as long as there is no disruption of work in the employee’s division. The Union may designate an alternative representative when it deems appropriate. Stewards must first obtain permission through appropriate management channels before leaving their work or work location for such purposes. This provision shall be limited to periods of regular working hours. It is agreed the City shall not pay stewards for time spent in handling grievances when they are not regularly scheduled to work.

The Union shall be authorized to designate temporary employees within the unit as stewards, not to exceed five (5) in number and must furnish a list of these stewards to the Human Resource Department on a biannual basis (twice per year). If a designated steward is not available, temporary workers, may utilize stewards from the regular bargaining unit. Stewards shall be allowed a reasonable amount of paid release time for the purpose of representing a unit employee within the steward’s area of representation as shown below in the filing or processing of identified grievances as long as there is no disruption of work in the employee’s division. The Union may designate an alternative representative when it deems appropriate. Stewards must first obtain permission through appropriate management channels before leaving their work or work location for such purposes, and release shall not be unreasonable denied. This provision shall be limited to periods of regular working hours. It is agreed the City shall no pay stewards for time spent in handling grievances when they are not regularly scheduled to work.

The five (5) Union Stewards will each represent one of the following designated areas:

1. Beach

2. Library

3. Parks and Recreation

4. At Large

5. At Large

7.05.03 Chief Stewards
The Union may designate up to five seven (75) Chief Stewards, five (5) from the permanent workforce and two (2) from the temporary workforce.. Chief Stewards shall be entitled to release time to replace stewards when the Division Steward is not available.

7.05.04 Union Leave
A. Short-Term Leave (REGULAR EMPLOYEES)
This article satisfies the requirements under Senate Bill 1085. 1) Upon request of the designated representative, and with two (2) day’s notice, and approval by the Human Resources Director or their designee, each union steward shall be given paid release time up to four (4) hours within one workday for union related activities outside of the Meyers-Milias-Brown Act (MMBA) mandated release time for steward responsibilities (meet and confers, representation, bargaining, labor

20.105
27 management, grievance handling, new hire orientations’, etc.) MMBA mandated release time shall not pull from the bank,
2) Two week’s notice shall be given when requesting time above four (4) hours up to eight (8) hours from this bank.
3) A union time bank shall be established which provides a total time bank of 1,200 hours per calendar year that may be used to provide release time for the President, Vice - President, or Steward.
4) The President, Vice-President, and stewards agree to track their use of release time by inputting the appropriate code provided by the City into their timecard. 5) Limitations:
i. This leave is coordinated at the request of the SEIU Authorized Agent(s), and not usable by the President, Vice-President, and stewards individually or at will.

Notices shall be provided to the Human Resources Director or their designee. ii. This leave may be used for up to four hours within one workday with two days notice. Hours above four (4) may be used with two weeks advance notice. iii. Two week’s notice shall be given when requesting release for more than eight (8) stewards at any time.
iv. SEIU will coordinate with the City when using more than four (4) hours in a day or two (2) or more stewards in the same classification to alleviate adverse impacts that may arise.
v. The President and Vice-President may each use up to eight (8) hours in a pay period.
vi. An individual steward may use up to eight (8) hours in one calendar month. vii. This leave is not meant to be used towards leave referenced in the long-term leave section.
viii. All leave in this section must receive prior approval by the Human Resources Director or their designee. This article is not subject to the grievance procedure.

B. Long-Term Union Leave (REGULAR EMPLOYEES)
Upon request of the Union’s Santa Cruz Area Director designated representative(s), the President, Vice-President, or stewards workers who are Union members may request unpaid release time not to exceed twelve (12) months for Union business. This request will be made two weeks in advance. A workerThe President, Vice-President, or stewards granted such leave, who has regular status in their job class, shall have the right to return to their former position. In the event that the worker wants to continue benefits coverage (including medical, dental, vision and life insurance) through the City plans, arrangements will be made for the Union to reimburse the City for costs associated with continuing such coverage.

The Union may have the City Chapter President or Vice President of the Union released on work time to attend City Council meetings on matters within the scope of representation related to bargaining unit employees, upon approval of the Human Resources Director.

C. Union Leave (TEMPORARY EMPLOYEES)
Upon request of the Union’s Santa Cruz Area Director, workers who are Union members may request unpaid release time not to exceed twelve (12) months for Union business.

7.06 ACCESS TO CITY FACILITIES
With a minimum of two-days notice within the regular work week (M-F) and the approval of the site administrator, the Union’s representative may meet with members on City facilities during the non-working hours of the employees involved. For the purpose of Union access, employees involved who have a paid lunch shall be allowed to attend a

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28 meeting pursuant to the above, however, if called back to work the employee shall return to their duties. The non-working hours restriction does not apply to the handling of grievances. A reasonable effort will be made to accommodate the Union representative.

7.07 BARGAINING UNIT EMPLOYEE INFORMATION
A. Bargaining Unit Employee List
On a bi-weekly basis, the City shall supply the Union with a comprehensive list of all employees covered by this MOU with the following information: full name, employee number, job classification, date of hire, termination date (if employment has ended), hourly rate, annual salary, date of birth, department, work location, work phone, work email (if available), personal email (if available), home address, mailing address, home phone, cellular phone (if available), and employment status (to include date of separation, etc.), to the extent permitted by law. The City shall provide the last pay period worked if administratively feasible. The City shall continue to provide separate spreadsheets of the above information for permanent and temporary employees. Upon request from the Union, the City shall provide the Union with a list of employees who have been recently promoted to classifications outside of the bargaining unit during a specified time frame.

B. Protection of Contact/Biographical Information of Bargaining Unit Employees The City shall immediately notify the Union of any third party requests for contact and/or biographical information about the bargaining unit employees. The City shall promptly provide the Union a copy of the request and any material submitted with the request.

The City shall provide the Union at least ten seven (710) days to review the request and challenge the scope of the request prior to the City responding to the request. The City agrees to consider the Union’s response prior to disclosing to a third party any contact and/or biographical information about the bargaining unit employees. The City and Union share a mutual interest in protecting the privacy of its bargaining unit employees.

7.08 AREA MEETINGS
The City shall provide employees two (2) hours of release time plus additional reasonable release for travel time per area Union general membership meeting. The two (2) hours includes travel time to and from the meeting and cannot result in an adverse impact on City operations.

The purpose of area meetings shall be to nominate and elect shop stewards and to provide a forum for Union communications. There shall be a maximum of three six (63) area meetings annually. Union representatives shall have access to City facilities during work hours to conduct such area meetings with employees. The Union shall notify the Human Resources Director at least ten (10) workdays in advance of the date, time, and location of each area meeting. No more than two (2) Union officials shall be provided release time to conduct these meetings. In addition, during successor MOU negotiations, the City will allow no more than eight (8) bargaining team members to attend Area Meetings.

7.09 C.O.P.E. DEDUCTION
The City agrees to the establishment of a payroll deduction program for voluntary employee contributions to the Committee on Political Education, (C.O.P.E.) subject to the following conditions:

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29 A. Voluntary deductions for C.O.P.E. shall be withheld only if the employee so authorizes in writing on a form provided by the Union and approved by the City.

B. Payroll deductions shall commence on the second pay period after the authorization is received by the City.

C. Employees may sign up, change the amount of their contributions or discontinue their contributions at any time in the manner consistent with Section 7.01.

D. The Union shall indemnify, defend and hold the City, its officers and employees harmless against any and all claims, demands, suits and from liabilities of any nature which may arise out of or by reason of any action taken or not taken by the City under the provisions of this section in the manner consistent with Section 7.01 G.

7.10 NEW EMPLOYEE ORIENTATIONNEW EMPLOYEE ORIENTATION
A. The City agrees that each newly hired bargaining unit employee shall participate in a scheduled new employee orientation that includes a half-hour (30 minute) Union informational in-person meeting within the first thirty (30) days from the date of hire during regular working hours and onsite without the loss of compensation. The City shall notify the Union no less than ten (10) days of a scheduled new employee orientation.

B. The Union agrees that it shall pre-designate up to five (5) Union designee(s) mutually agreed upon by the City and the Union no more than two of which will attend each orientation, session, or meeting, provided that there is no disruption of work in each designated Union employee’s division due to these employees’ attendance. The Union agrees that it shall provide the names of the Union’s pre-designated designee(s) to the City’s Human Resources Director in writing, at least five (5) calendar days prior to the scheduled attendance at the orientation meetings, sessions, or trainings, Union designee(s) who are included in the written notice of attendance by the Union submitted to the Human Resources Director, at least five (5) calendar days in advance, shall be given release time to conduct such orientation sessions, meetings, or trainings under this Section. For purpose of this subsection, Union designee(s) may include, but not limited to, Union representatives, officers, stewards and members.

C. City representatives shall be absent from the room during any sessions, meetings or trainings conducted by the Union with newly hired employees. The City shall not discourage an employee’s participation in the Union portion of the onboarding process.

7.11 WEINGARTEN RIGHTS
All employees have the right to request a union representative to be present and to be represented in an investigatory interview with the employer when they reasonably believe that the interview may lead to disciplinary action.

7.12 LABOR MANAGEMENT MEETING
SEIU City-wide Labor Management Meetings
The City and the Union agree to meet monthly to pre-emptively address workplace and safety issues, including but not limited to issues affecting library headquarters and library branches. The parties agree that the intention of the labor management meetings is to further

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30 harmonious labor relations and resolve issues collaboratively and is not intended to serve in lieu of the formal grievance procedures. The Union shall appoint six (6) employees to serve on this committee without loss of compensation.

SECTION 8.00 - PERSONNEL ACTIONS

8.01 PERSONNEL FILES (REGULAR EMPLOYEES)
There shall be only one official personnel file which shall be maintained in the City’s Human Resources Department. Employees shall have the right to review their personnel files or authorize, in writing, review by their representatives. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee.

Employees may cause to be placed in their personnel files responses to adverse material inserted therein.

A. Supervisor or Manager Notes During Evaluation Period There shall be only one official personnel file which shall be maintained bv the Human Resources Department. Unofficial personnel files maintained by supervisors or managers shall only be kept during the evaluation period and are managed as follows:

1. Any supervisory notes, records, or files maintained during an employee’s evaluation period may be incorporated into the employee’s written annual performance evaluation and must be destroyed after the completion of the written evaluation or after late evaluation as per Section 8.01.02.

B. Written Reprimands in the Personnel File

1. Any reprimand or accident related document that has been sealed or removed from an employee’s personnel file shall not be referenced or used in further evaluations or discipline of the employee.

2. Written reprimands that are sealed shall only be viewable by the employee, their representative, and Human Resources. Sealed reprimands shall not be used for hiring, promotions, or disciplines.

3. Written reprimands more than two (2) years old from the date received shall not be considered for promotions, transfers, special assignments, or disciplinary actions unless it is used within the two (2) year period as a basis for a new disciplinary action.

4. Written reprimands more than two (2) years old from the date received and have not been used as a basis for a new disciplinary action within two (2) years shall be sealed in the employee’s personnel file.

5. All reprimands not used as the basis for a new disciplinary action during a two (2) year period shall be removed after three (3) years from the date received.

All reprimands not used as the basis for a new disciplinary action during a two (2) year period shall be removed after three (3) years from the date

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31 received.

8.01.01 Performance Evaluations
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisors. Employees serving a six-month probation will be evaluated at the completion of their third and sixth month of service. Employees serving a twelve-month probationary period will be evaluated at the completion of their third, sixth, ninth, and twelfth month of service. All regular employees will be evaluated on their merit review dates.

Supervisors will make every attempt to address performance issues in a timely manner throughout the evaluation period and provide appropriate feedback to employees on an ongoing basis.

Employees may also choose to appeal a performance evaluation to the department head and, if not satisfied, to the Human Resources Director and/or formally enter a response to the evaluation in their personnel file. Any unsatisfactory areas in an employee’s evaluation shall have attached reasons stated by the rater in the commentary section and shall include specific recommendations for improvement and provisions for assisting the employee in implementing any recommendations made. Disputes regarding performance reviews shall not be subject to the grievance process.

Evaluations will only contain information within the observable time period (i.e. annual evaluations will reflect only the full year between anniversary dates, three (3) month evaluations will reflect the months between date of hire to three months after, etc.)

8.01.02 Late Evaluations
Failure of the supervisor to present the employee with the evaluation within sixty forty-five (4560) calendar days of the due date, unless extension is mutually agreed upon in writing, shall result in a recommendation of step advancement in conjunction with Section 10.01.02.

However, as soon as possible thereafter, the supervisor shall conduct a performance evaluation in accordance with Section 8.01.01. If a manager does not complete an employee’s evaluation within sixty (60) days from the due date, the employee’s evaluation shall be considered closed.

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32 8.02 PROBATION

8.02.01 Probationary Period (Regular Employees)
A. All original, promotional and re-hire appointments shall be subject to a probationary period of:
1) (a) twelve months for Wastewater Collections Maintenance Trainees; and, 2) (b) six months for all other unit employees.

B. Any time spent by an employee on unpaid status shall not be counted as qualifying service toward completion of the probationary period.

8.02.02 Probationary Credit (Regular and Temporary Employees) A. Employees hired into positions that require a one-year probation or six (6) months that previously served in the same temporary classification shall receive credit toward completion of the probationary period for any time spentactual hours worked in the same position on a temporary assignment immediately prior to the regular appointment. Such credit shall be given on a monthly basisfor all hours worked up to a maximum of ten (10) months of credit for one-year probationary periods and five (5) months of credit for six (6) months probationary periods. of six (6) months of credit.

B. Employees working out of class in a higher classification will have the time worked count towards their probationary period in the higher position if promoted to the same classification within one year of working at the higher classification.

C. Temporary employees may apply to open positions within their department without meeting a minimum service requirement.
1) Classifications for probation credit:
i. All temporary classification that share a permanent counterpart classification.

A. Temporary employees may apply to open positions within their department without meeting a minimum service requirement.

8.02.032 Objective of Probationary Period (Regular Employees) The probationary period shall be regarded as part of the selection process and shall be utilized for training the new employee on work assignments and standards, and observing and evaluating the employees performance.

8.02.043 Rejection of Probationary Employee (Regular Employees) During the probation period, an employee may be rejected at any time by the appointing authority without the right of appeal. Notification of rejection shall be served to the probationary employee in writing. The rejecting authority must supply an explanatory reason related to the employee’s substandard performance to both the Union and employee of their rejection in writing on the same day served.

Any promoted employee who is rejected during the probationary period shall be reinstated to

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33 the position from which promotion occurred; unless the rejection is due to discharge in which case no reinstatement shall occur. Within the bargaining unit, lower positions where a promoted employee has an immediate right to return will not be deleted/unbudgeted before the promoted employee passes their probationary period.

8.02.054 Extension of Probation (Regular Employees)
A. All efforts shall be made to sufficiently evaluate the probationary employee during the assigned period. An extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extensions shall be for a specific period of time not to exceed three (3) months. The employee shall be informed in writing of the reasons for the period of the extension at least seven fourteen (147) calendar days prior to the scheduled end of the probationary period. With the employee’s consent, the probationary period may be extended as described above on less than seven fourteen (147) calendar days’ written notice.

A. Use of Paid Time Off (PTO) shall not extend an employee’s probationary period.

8.03 SALARY STEPS, PERSONNEL FILES AND PERFORMANCE EVALUATIONS (TEMPORARY

EMPLOYEES)

8.03.02 Performance Evaluations
All temporary employees will receive a written performance evaluation from their supervisors upon eligibility for the next step in the salary schedule.

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34 Any additions, corrections, deletions or changes on the original evaluation form, require initialing by both the maker of the amendment and the employee to indicate that the changes have been discussed and understood. No evaluation shall be made on hearsay statements. Employees may also choose to appeal a performance evaluation to the department head and, if not satisfied, formally enter a response to the evaluation in their personnel file. Any unsatisfactory areas in an employee’s evaluation shall have attached reasons stated by the rater in the commentary section and shall include specific recommendations for improvement. Disputes regarding performance reviews shall not be subject to the grievance process.

SECTION 9.00 - WORK ASSIGNMENTS (REGULAR EMPLOYEES)

9.02 ALTERNATE SCHEDULES/FLEX TIME, TELEWORK, VTO AND DEVELOPMENTAL

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35 The City may establish alternate/flex schedules and/or regularly scheduled telework within the guidelines of Section 9.01 (Work Shifts) of the MOU and existing law and policy.

9.03 SANITATION WORK HOURS
All sanitation employees shall work a standard eight-hour (8) day, forty-hour (40) per week schedule.

Changes in regular part-time employee schedules that affect benefit accruals must be submitted via personal action request as defined by the Human Resources DirectorPAF.

9.05 SENIORITY (REGULAR EMPLOYEES)
Subject to bona fide operational needs, seniority from the most recent date of hire in a regular position shall be the criterion used to determine eligibility and time for vacation (see also Section 12.02-Scheduling of Vacation), floating holidays and compensatory time off.

When bona fide operational needs override the criterion of seniority for shift selection and duty assignment, the affected employee shall be furnished with a written description of those operational needs. Seniority shall not be the sole basis for rotational lead assignments or working-out-of-class assignments.

9.06 LUNCH PERIOD (REGULAR FULL-TIME)
All full-time regular employees shall be entitled to and expected to take an uninterrupted, unpaid lunch period of a minimum of thirty (30) minutes at or about the mid-point of their workday.

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36 Wastewater Plant Operators, Water Plant Operators, Rangers, and Senior Rangers assigned to the Police Department are exempt from this requirement and entitled to a paid thirty (30) minute lunch period. Rangers and Senior Rangers assigned to the Water Recreation Facility are exempt from this requirement and entitled to a paid thirty (30) minute lunch period when the facility is open to the public. Supervisors may occasionally approve flexible scheduling of lunch periods for individual employees. Regular schedules that do not provide the required lunch period at or about the mid-point of the workday will not be allowed.

9.07 REST PERIODS (REGULAR AND TEMPORARY EMPLOYEES)
Regular and Temporary eEemployees shall be allowed a 15-minute rest period during each four hours of regular work. Departments may make reasonable rules concerning the scheduling of same. Rest periods not taken shall be waived. Rest periods cannot be taken at the beginning or end of a shift or combined with a meal period unless approved. This is not effective in periods of a bona fide emergency nature. Rest periods shall be considered work time.

9.08 CLEAN-UP TIME
Regular eEmployees who work with hazardous, contaminated and/or dirty materials shall be allowed 15 minutes, (or more, if approved by the supervisor), prior to their lunch periods and before the end of their workdays to clean up. The City shall provide access to wash stations at all facilities.

9.08.01 Dress Time
Regular eEmployees who are required to wear a uniform that is maintained, laundered and provided by the City and required to change into/out of said uniform at their work location shall be permitted to take ten (10) minutes of work time when changing into/out of required uniforms.

Thereafter, an additional meal shall be provided for every four-hour period. Location of meal sites shall be pursuant to administrative directive. The maximum emergency meal allowance will be $25.00.

9.10 LIGHT DUTY ASSIGNMENTS
If an a regular employee’s medical condition temporarily precludes the performance of their normal duties and management determines modified work is available and necessary to be performed, they may, with medical authorization from the employee’s personal physician, be temporarily assigned to such work for a period not to exceed six (6) months, unless an extension is approved by the Appointing AuthorityHuman Resources Department. No change in base pay will result in this temporary assignment. The Human Resources Department will review departmental denials of requests for light duty assignments. The employee may request a meeting with the Human Resources Department to review any denial; at the employee’s

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37 request, the employee’s representative may accompany the employee to this meeting.

9.11 PARKS WORK SCHEDULE (REGULAR EMPLOYEES)
A. Regular Parks employees actually working eight (8) consecutive days or more, shall receive compensation of time and one half (1½) for those hours worked in excess of five (5) consecutive days. Paid time off in excess of three (3) hours shall not be considered time worked for the purpose of this payment. For example, an employee taking a paid leave in the middle of an eight (8) day work cycle would not qualify for overtime compensation.

Regular eEmployees shall have the option of receiving the overtime compensation in the form of pay or compensatory time off.

The above pertains only to those employees who are rotating between assigned shifts.

B. All R e g u l a r Parks employees periodically assigned to work weekends shall do so on a two (2) month rotational basis or longer, if by mutual agreement.

It is mutually understood that the difference in rotational schedules shall not be construed to diminish the City’s rights to transfer employees.

9.12 EMPLOYMENT OF “REGULAR,LIMITED TERM”EMPLOYEES

9.12.03 Terms and Conditions
Changes to the M.O.U. that affect the terms and conditions of Regular, Limited Term employees are as follows:

1. Active Status: Employees shall receive the same benefits as other regular employees during their active working status.

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38 period.

B. Holidays: Employees shall receive all holidays occurring during their period of active status.

A. Medical, Dental, Vision Benefits: During periods of furlough, Regular, Limited employees shall have the following options:

1. Discontinue health coverage.

2. Continue health coverage by paying the appropriate premium.

3. Continue health coverage by paying the appropriate premium, in advance, by payroll deduction during active status.

C. Holidays: Employees will not receive any payment or time off for holidays which occur during their furloughs.

9.13 WATER TREATMENT PLANT OPERATOR SHIFT SELECTION
(NOTE: This section does not pertain to temporary schedule changes to cover time off when appropriate, i.e. vacations, trainings, etc.)
Seniority as a regular employee within the classification shall be the criterion used to determine shift selection (subject to bona fide operational needs; i.e. SCADA system coordinator).  Shift schedules will be determined by the CPO prior to shift selection.  Shift selection shall occur:

o Annually with the actual shift changes occurring on the first Saturday of January.
o
o Whenever there is a shift that needs to be filled (i.e. after a retirement). o
o Whenever a new hire becomes qualified to work a stand-alone shift (typically after the probation period as a T3 Operator).  During the shift selection process Operators will choose one of the shifts established by the supervisor, in order of seniority.
 As per MOU Section 9.05, Seniority as a regular employee within the classification shall be the criterion used to determine shift selection and duty assignment. Plant Operators I and II will be considered within the same classification and Plant Operators III and IV will be considered within the same classification for the purpose of seniority privileges.

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39  With CPO approval Operators may swap shifts on a voluntary basis; which is not subject to seniority bumping.
 Weekend rotations will continue as currently practiced: every four months on the first Saturday of May, September, and January.


SECTION 10.00 - PAY RATES AND PRACTICES (RREGULAR AND

TEMPORARY EMPLOYEES)S

1. Cost of Living Adjustments
a. Effective the pay period that begins on October 11, 20252, the salary for all bargaining unit members shall be increased by an additional four and half percent (4.05%) or $1.25 per hour increase, whichever is greater.. b. Effective the pay period that begins on September 26, 20263, the salary for all bargaining unit members shall be increased by an additional four percent (4.0%). c. Effective the pay period that begins on August 2731, 20274, the salary for all bargaining unit members shall be increased by an additional three and a halffour percent (43.05%).

2. Delete Steps A & B from the Salary Compensation Plan/Schedule for all classifications a. Employees currently in Steps A & B will move to Step C effective after City Council approves an MOU in open session, employees are eligible for advancement to the next hire salary step on their next regularly scheduled merit review. Steps D-J will be adjusted upwards accordingly to maintain five percent between steps.
b. Step C of the Facility Attendant, Landfill Gate Attendant and Parking Attendant classification will be set to the current benefitted living wage of $19.01/hour.

3. Effective October 1, 2022 or the first pay period in which Council approves an MOU in open session, whichever is later, employees will receive a one-time signing bonus of $1,800 for full time employees, and pro-rated for part time employees.

4.2.Furloughs: The City agrees that there will be no furloughs during the term of this Agreement.

10.01 SALARY STEPS (REGULAR EMPLOYEES)
Each classification in the bargaining unit shall be assigned a salary range that increases by 5% between steps.

10.01.01 Salary Rates Upon Appointment (Regular Employees)

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40 New employees shall be hired at the first step of the classification’s salary range unless a higher starting step is recommended by the appointing authority based on the employee’s advanced qualifications for the position and such recommendation is approved by the Human Resources Director for Steps A-H and the City Manager for Steps I-J. The City and the Union will meet quarterly to review data and trends of appointments above the first step.

Promoted employees shall be appointed to the first step in the salary range for the new classification. However, if such employee is already being paid at a rate equal to or higher than the first step of the higher range, the employee shall be placed at the next higher step in the new range that will result in at least a 2.5% salary increase if promoted to another Service position and at least 5% if promoted to a Supervisory or Management position. A higher promotional salary may be recommended by the appointing authority based on an employee’s advanced qualifications for the position. Such recommendation is subject to approval by the Human Resources Director and the City Manager.

10.01.02 Advancement within the Range (Regular Employees) A. Advancement within a classification’s salary range shall normally be granted on the employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation submitted by the department head and approved by the Human Resources Director.

B. All new and promoted employees shall be granted their first merit increase upon successful completion of the probationary period (see Section 8.02-Probation), with the exception of employees in the Wastewater Collection Maintenance Trainee classification who will receive their first merit increase upon successful completion of six (6) months of active employment at the mid-point of their twelve (12) month probation and no merit increase at the completion of their twelve (12) month probation.

The employee shall then be eligible for subsequent merit increases after each full year on paid status, continuing until the top of the salary range is attained.

D. A merit increase may be denied by the department head when an employee’s job performance falls below the acceptable work standards for the duties assigned. The department head may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the next review date. If a merit increase is granted at that time, the employee’s original review date shall change and theys/he shall be eligible for the next merit increase after one year on paid status from the new review date. If a merit increase is denied notice shall be given to the Union by mail or other agreed upon process upon request of the employee.

E. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status in excess of 80 hours.

F. When an n employee’s position is reclassified to a classification with a higher salary

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41 range, the employee’s new pay shall be set at the first step of the new range or the next higher step in the new range that provides the employee a salary increase of at least

2.5%. This increase shall have no effect on the employee’s original merit review date.

10.02 SALARY/RETIREMENT (REGULAR EMPLOYEES)

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I) This section shall apply to employees hired on or before May 11, 2012 who are members of CalPERS.

A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for employees covered by this section shall be based on the single highest year.

Effective July 5, 2014, employees shall pick up an additional one and a half percent (1.5%) of PERS (total 9.5%) on a pre-tax basis.

Effective the pay period that begins on September 26, 2026, employees covered by this section shhall have their payment of the employer’s retirement share reduced by

0.5% (total 8.0%) on a pre-tax basis.

Effective the pay period that begins on August 27, 2027, employees covered bby this section shall have their payment of the employer’s retirement share further reduced by 1% (total 7.0%) on a pre-tax basis.

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42 B. 2.0% @ 60 Pension Formula
The 2.0% at 60 pension formula shall be available to all employees covered by this section who are members of CalPERS. Additionally, the City provides the PreRetirement Optional Settlement 2W Death Benefit to employees covered by this section.

Effective July 5, 2014, employees shall pick up an additional one and a half percent (1.5%) of PERS (total 9.5%) on a pre-tax basis.

Effective the pay period that begins on September 26, 2026, employees covered by this section shhall have their payment of the employer’s retirement share reduced by

0.5% (total 8.0%) on a pre-tax basis.

10.02.03 Employees Hired on or After January 1, 2013 (Tier III) This section shall apply to employees hired on or after January 1, 2013 who are members of CalPERS, in accordance with law.

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43 Effective the pay period beginning October 11, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later, employees covered by this section shall have their payment of the employer’s retirement share reduced by 1% (total 10.00%) on a pre-tax basis.

Effective the pay period that begins on September 26, 2026, employees covered by this section shall have their payment of the employer’s retirement share reduced by

0.5% (total 9.50%) on a pre-tax basis.

10.02.04 Retirement, All Regular Employees
The City shall maintain the IRS 414(h)(2) provision allowing employees to defer State and Federal Income taxes on their CalPERS contributions.

10.02.05 Sick Leave Conversion
The City will provide the sick leave conversion benefit in accordance with Government Code Section 20965.

10.04 WORKING OUT OF CLASSIFICATION (REGULAR EMPLOYEES) The term “working out of classification” is defined as a management-authorized assignment on a temporary basis of a regular n employee in a lower classification to a budgeted higher classification. Assignments will be made to qualified employees assuming a significant number of duties of the higher classified position. Whenever reasonably possible, prior to authorizing a working out of classification assignment the supervisor will inform qualified employees of the assignment and request volunteers. The Department may assign working out of classification on a rotational basis when the Department determines such rotational assignment would be appropriate. The purpose of rotation is to promote career ladder development. This article shall also apply for all hours worked in job sharing, job exchanges and other professional development and training opportunities within the City in accordance with Section 9.02-Alternate Schedules/Flex Time, Telework, VTO and Developmental Assignments and not subject to Section A and B of this article. Pay for “working out of

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44 classification” shall be as follows:

A. Employees appointed to fill vacant positions will receive working out of class pay beginning the first shift of the assignment, for all hours worked during the assignment.

C. Working out of class pay will be the next highest pay step in the classification to which the employee is assigned. Working out of class pay will not be less than a five percent (5%)2.5% increase when assigned to another Service position. Employees who work out of class in a Supervisory or Management position will receive working out of class pay of not less than a 5% increase.

D.C. If the five percent (2.5% or 5%) pay differential above does not result in the employee reaching at least the first step of the higher salary range, the employee will be placed at the first step of the higher salary range.

E. All assignments of more than 60 days will be made on a Personnel Action Formthrough a personnel action request as defined by the Human Resources Director and will take effect at the beginning of a pay period, following the first day of the assignment.

F. For employees who are considered new members to CalPERS after January 1, 2013, the difference in pay shall not be considered pensionable compensation pursuant to CalPERS.

10.05 SHIFT DIFFERENTIAL (RREGULAR EMPLOYEES)

Shift Evening differential shall not apply to:

A. Paid leave hours, including vacation, sick leave, holidays and other paid leaves, provided in Section 14.00-Leaves of Absence.

B. Hours that are worked between 6:00 p.m. and 6:00 a.m. as a result of call-back, duty assignment, or overtime.

C. Hours that are worked which weekend differential is paid.

10.05.02 Weekends
Part-time and Regular Wastewater and Water Treatment operators who are required and authorized by management to work a regularly scheduled sfhihift with at least one hour or more that falls between 6:00p.m. Friday and 6:00a.m. Monday shall be a shift differential of an additional ten (10%) percent for each hour worked within the shift differential period of

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45 6:00p.m. Friday and 6:00a.m. Monday. Work on a Fixed Holiday, as outlined in Section

11.01 results in hours being banked.

Weekend differential shall not apply to:

A. Paid leave hours, including vacation, sick leave, holidays and other paid leaves, provided in Section 14.00-Leaves of Absence.

B. Hours that are worked between 6:00 p.m. and 6:00 a.m. as a result of call-back, duty assignment, or overtime.

C. Shall not compound with Evening Differential Section 10.05.01.

10.06 LONE OPERATOR DIFFERENTIAL (REGULAR EMPLOYEES)

10.06.01 Water Plant Lone Operator
Water Treatment Operator III’s and IV’s assigned to the Water Treatment Facility will receive $24.00 per hour additional shift differential subject to meeting all the conditions listed below:

A. Department of Health Services Grade III Treatment Plant Operator Certification or higher.

B. Fully qualified to operate the Graham Hill Treatment plant without direct supervision as determined by the Superintendent of Water Plant and Production.

If the above conditions are met, then the shift differential will be paid for all hours worked on assigned “lone operator” shift.

10.06.02 Wastewater Plant Lone Operator
Plant Operator III’s or above assigned to the Wastewater Treatment Facility will receive $42.00 per hour additional shift differential subject to meeting all the conditions listed below:

A. State Water Resources Control Board Grade III Wastewater Plant Operator Certification or above.

B. Fully qualified to work at the City of Santa Cruz Wastewater Treatment Plant as the Lone Operator.

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46 If the above conditions are met, then the shift differential will be paid for all hours worked on assigned “lone operator” shift.

Employees covered by the Fair Labor Standards Act (FLSA) are entitled to FLSA overtime which is defined as all hours required by management and actually worked by the employee in excess of forty (40) hours in a work period as defined by the City. FLSA overtime is compensated in pay or compensatory time off at one and one-half (1-1/2) times the employee’s regular rate of pay. The regular rate of pay is as defined in the FLSA.

Compensatory time off shall not be allowed to accumulate beyond eighty one-hundred and sixty (1680) hours at any given time.

Based on IRS tax law under constructive receipt rules an employee may use the following methods to meet the IRS rule.
 An employee with accrued compensatory time off shall be permitted to use such time within a reasonable period in the same calendar year as it was earned after making the request, unless such time off will unduly disrupt the operations of the department.  Roll over any accrued and unused compensatory time earned during the calendar year into a City-sponsored deferred compensation plan anytime during the calendar year.  Cash out all or part of the accrued and unused compensatory time anytime during the calendar year
 Any remaining balance will be either rolled over to deferred comp or paid out as described above on the last payday in December.

10.08 CALLBACK (REGULAR EMPLOYEES)
Callback work is defined as work required by management of a regularn employee who, following completion of the employee’s work day or work week and departure from the employee’s work site, is unexpectedly ordered to report back to duty or by phone or computer to perform necessary work.

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47 10.08.01 Callback by Phone or Computer
If the employee is able to respond by phone or computer and is not required to report to the worksite, then:

B. An additional minimum will not be paid if an employee is required to respond to additional call(s) and the time and duration of the response is within the previous minimum.

B. Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.

D. Employees who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

E.D.

10.09 DUTY ASSIGNMENT (REGULAR EMPLOYEES)

10.09.01 Definition
Duty assignment is defined as an assignment to an on-call status for a specified period of time.

While on duty assignment, a regularn employee must remain available to be contacted by phone or pager and be able to report to work within a thirty (30) minute period. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act.

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48 10.09.03 Compensation
A. Weekdays
Duty personnel shall receive one and one twohalf (2.01.5) hours of their base hourly salary for a sixteen(16)- hour assignment. If the Alternative Transportation Incentive Program (Section 10.20) is mutually agreed upon to be eliminated on or after July 5, 2014, then Duty personnel shall receive an additional one half (0.5) hour of their base hourly salary for a sixteen(16)- hour assignment, for a total of two and a half (2.50) hours.

B. Weekends
Duty personnel shall receive two three (32) hours of their base hourly salary for a twenty-four (24) hour assignment. If the Alternative Transportation Incentive Program (Section 10.20) is mutually agreed upon to be eliminated on or after July 5, 2014, then Duty personnel shall receive an additional one (1.0) hour of their base hourly salary for a twenty-four hour assignment, for a total of three four (43.0) hours.

C. Holidays (City Designated Eight (8) Hour Holidays)
Duty personnel shall receive eight (8) hours of their base hourly salary for a twenty-four (24) h hour assignment.

D. Holidays (City Designated four (4) Hour Holidays)
Duty personnel shall receive four (4) hours of their base hourly salary for a twenty- hour assignment.

E. All duty hours actually worked outside the employee’s regularly scheduled shift shall be compensated at the overtime rate except after twelve (12) hours of work within a continuous shift or within a twenty-four (24)-hour period, or if work occurs between the hours of twelve a.m. (12am) and seven a.m. (7am), where hours worked will be compensated at two (2) times base pay. A minimum of two (2) hours of overtime will be paid for callouts of less than two (2) hours. An additional minimum will not be paid if an employee is required to perform an additional duty call and the time of return is within the previous duty call minimum.

If the assigned duty person or crew member assisting the duty person is required to respond to a call that requires them to work more than twelve (12) hours within a twenty-four hour period, and any portion of those twelve (12) hours is after midnight, the employee shall be entitled to an eight (8) hour rest period prior to returning to work. If any portion of the rest period occurs during the employee’s regular schedule, the employee shall receive regular paid compensation for that time.

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49 Fatigue pay requires a two-hour minimum of work assignment as defined by Duty Assignment, Section 10.09.01.

Hour Range Worked Between Fatigue Time Owed:

C. If any portion of the rest period occurs during the employee’s regular schedule, the employee shall receive regular paid compensation for that time.

D. An employee shall have the option of receiving compensatory time off for the duty assignment compensation and hours worked.

F. An employee shall have the option of receiving compensatory time off for the duty assignment compensation and hours worked.

10.10 BILINGUAL PAY (REGULAR AND TEMPORARY EMPLOYEES)
The City shall provide payment of an additional $60 per pay period$0.55 per hour on the hourly rate for hours worked when the City certifies an employee (regular or temporary) as qualified and the position requires the use of bilingual language skills. This provision does not apply to the City translator.

10.12 OVERPAYMENTS AND REPAYMENT OF FUNDS (REGULAR AND TEMPORARY EMPLOYEES) The City will not attempt to recover overpayments made to employees as a result of an error made by the City which are over 12 months old.

If the employee contends that any portion or the entire amount is not owed, he or shtheye may request a meeting with the City to attempt to resolve the disagreement. The employee may have a representative attend such meeting(s) with him or her.

B. Repayment of Funds

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50 An employee will pay no penalties, fees or interest as a result of the overpayment when the City and employee mutually agree upon how the repayment will be made. The employee shall have the right to select one of the following options for repayment:

2. Biweekly installment payments through payroll deduction (installment payments must be a minimum of $10 and repayment must be completed within twenty-six pay periods).

3. Any other repayment arrangement mutually agreed upon between the City and the employee.

The final agreement on the repayment will be committed to writing (including the lump sum payment date, or the biweekly amount and the beginning and ending date of the installment plan identified).

The employee will be notified of the referral and the City reserves all its rights to seek repayment and pursue all remedies under law including interest as it would for any other debtor.

10.13 REIMBURSEMENT FOR LICENSES AND CERTIFICATES (REGULAR EMPLOYEES) Regular eEmployees shall be reimbursed for the cost of licenses and certificates which are required to perform their job duties. No reimbursement shall be made for fees of less than $5.

10.14 DEPARTMENTAL TECHNOLOGY COORDINATOR DIFFERENTIAL (RREGULAR EMPLOYEES) A regularn employee assigned as a Departmental Technology Coordinator by their Department Head will receive $60 premium pay per pay period during the period of such assignment.

Such differential will become effective the first full pay period of the assignment.

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51 10.15 LEAK DETECTION (RREGULAR EMPLOYEES)
The Director of Water may, upon approval of the Human Resources Director, appoint a regularn employee to be responsible for the leak detection program and to receive an additional $23.08 per pay period while performing these duties effective the first full pay period of the assignment.

10.17 WATER DEPARTMENT STORE KEEPER (RREGULAR EMPLOYEES) The Director of Water may, upon approval of the Human Resources Director, appoint one regular employee to be responsible for the Water Distribution storekeeper function and to receive an additional $23.08 per pay period while performing these duties effective the first full pay period of the assignment.

10.18 SCUBA DIVING PREMIUM PAY (RREGULAR EMPLOYEES)
Regular eEmployees who perform scuba diving duties shall receive double time their hourly rate of pay while diving. After the first hour, payments shall be based on quarter-hour increments.

10.19 CONFINED SPACE RESCUE PREMIUM PAY (REGULAR EMPLOYEES) This Premium Pay is paid for positions which involve toxic or hazardous conditions.

Hours worked performing confined space entry under this section is calculated as follows, using the times entered on the Confined Space Entry Permit:
 The calculated time begins when the first participant physically enters the confined space and ends when the last participant leaves the confined space, as recorded on the “Confined Space Entry Permit” (if all employees should leave the confined space at any time, the calculated time will cease until such time as a participant may re-enter the confined space).  The individual time segments will be added together to determine the total duration of the confined space entry event.

Example:
0900 Pre-entry checklist complete.
0915 A enters confined space; B and C are attending; clock starts.

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52 0923 A exits confined space; clock stops; segment elapsed time = 8 minutes. 0932 A and B enter confined space; C is attending; clock starts again. 0945 B exits space; clock continues to run since A remains in the confined space. 0956 A exits confined space; clock stops; segment elapsed time = 24 minutes; this Confined Space Entry Event is now over.

Total time = 32 minutes
All participants in the event (A, B, and C) will enter the same cumulative total of thirty-two (32) minutes on their time sheets.

10.20 ALTERNATIVE TRANSPORTATION INCENTIVE PROGRAM (REGULAR EMPLOYEES) In order to encourage use of public transportation and other alternative modes of transportation, the City will provide up to thirty percent (30%) reimbursement per employee of annual eligible transportation related expenses, subject to a cap, as defined in the City’s APO II-53- Alternative Transportation Incentive Program.

10.21 PLANNING DEPARTMENT CERTIFICATION COMPENSATION INCENTIVE PREMIUM PAY (REGULAR EMPLOYEES)
“Certification Compensation Incentive” (CCI) is a management-authorized remuneration for obtaining and maintaining recognized professional certification for Inspection Services Employees. Professional certification shall be from a state or nationally recognized agency, assuring certification promotes a higher level of competency which benefits the life, health and safety of the community. CCI will be made to qualified employees when evidence of recognized professional certification is approved by the Chief Building Official and Department Director.

A. Upon receipt of employee-provided certification, approval of professional certification will be verified by the department:

2. Professional certification shall be part of a core responsibility of the employee.

3. Professional certification shall be in distinct areas of expertise and shall not be duplicative. Therefore, only one certification per professional category is acceptable.

6. As this is a voluntary program, paid release time will not be provided; approval of employee requests for personal paid time off during working hours will not be unreasonably denied.

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53 B. CCI will be calculated as follows:

1. An increase of two percent (2%) of the employee’s base salary will be applied for each approved professional certification.

D. The department will verify maintenance of certification annually.

E. Lapse of Certification/Current Employees

1. If certification as part of this premium pay program lapses, the premium pay will be discontinued in the pay period in which the certification lapsed or became inactive.

10.22 HAZARDOUS MATERIALS PREMIUM PAY (REGULAR AND TEMPORARY EMPLOYEES) The City will provide a twenty-five fifty dollar ($5025) per month premium pay for all employees who may be e exposed to dangerous chemicals and/or biohazardous materials as indicated in the job classification description and identified in Exhibit I. The Parties agree Exhibit I shall include classifications for Parking Enforcement and Downtown Library staff.

SECTION 11.00 -– HOLIDAYS (RREGULAR EMPLOYEES)
Part-time employees shall receive the following holiday benefits on a pro-rated basis, given the ratio of their budgeted work schedule to full time. (Except as modified by Section 9.04-Part-Time Employees.)
All employees will accrue paid holiday time for use in the pay period with the holiday. The accrual will be in the amount listed for the holidays listed in Section 11.01 (Fixed Holidays) of this MOU.

Employees must be in paid status the day before and the day after the holiday, and for at least 50% of the pay period, to accrue their holiday hours.

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54 Employees are required to use holiday leave on holidays they do not work, even if they are on leave or are sick. The use of vacation, compensatory time, excess holiday, or other leave time on holidays is only allowed to make up the difference between the hours of holiday granted and the amount of hours the employee is scheduled to work.

11.01 FIXED HOLIDAYS
Employees within the unit shall have the following specific holidays with pay:

Eleven Twelve(Eight (8) 8-Hour Holidays)
New Year’s Day
Martin Luther King’s Birthday
President’s Day
Cesar Chavez Dav
Memorial Day
Independence Day
Labor Day
Juneteenth
Veteran’s Day
Thanksgiving Day
Friday after Thanksgiving
Christmas Day
Two 4-(Four (4) Hour Holidays)
The last four (4) hours of the work shift are Holiday hours for Christmas Eve. (if Christmas Day is on a Tuesday–Saturday)
The last four (4) hours of the work shift are Holiday hours for New Year’s Eve. (if New Year’s Day is on a Tuesday–Saturday)
Except as provided for in Christmas Eve and New Year’s Eve, when a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the preceding Friday shall be observed.

11.02 FLOATING HOLIDAYS
In addition to the above fixed holidays, employees shall accrue up to twenty-four (24) hours of floating holidays per fiscal year. Floating Holiday accrual shall be on a monthly basis. Fulltime employees shall accrue floating holiday at the rate of two (2) hours per month. Part-time employees shall accrue floating holiday on a pro-rated basis, given the ratio of their budgeted work schedule to full time (e.g., all employees working in a 20 hour/week position shall receive one (1) hour of floating holiday each month).

Floating Holidays may only be taken with prior approval.

Accumulation of Floating Holidays shall not exceed twenty-four (24) hours. Upon separation, the employees shall receive their unused accrued Floating Holiday.

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55 11.03 HOLIDAY WORK
Due to the public service nature of City departments, some positions are required to work holidays on either a regularly assigned or emergency basis. The purpose of this section is to provide extra compensation to employees who are directed to work on any of the fixed holidays as listed in Section 11.01 – Fixed Holidays. This article applies to employees normally required to work on a fixed holiday (excluding observed holidays), based on a regular shift or rotating schedule, and to employees not normally required to work on a holiday, but who are directed to do so due to an operational need.

11.04 HOLIDAY ON REGULAR DAY OFF
An employee whose regular day off falls on a fixed holiday shall receive equivalent holiday time off at a later date.

11.05 HOLIDAYS DURING VACATION
Fixed holidays which occur while an employee is on paid vacation leave shall be charged to holiday hours and not the employee’s vacation balances.

SECTION 12.00 -– VACATION (REGULAR EMPLOYEES)

Up to five (5) years: 80 hours
After five (5) years and up to ten (10) years: 120 hours After ten (10) years: 16020 hours, plus 8 hours for each year of service after ten (10) years, to a maximum of 200160 hours.

12.02 SCHEDULING OF VACATION

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56 Vacation time may be used in increments of one hour or more. Whenever appropriate, vacation scheduling shall be done within the time frame established by the division. Vacation may be taken with twenty-four (24) hours prior notification and approval of the supervisor. A reasonable effort will be made to accommodate the employee.

SECTION 13.00 - SICK LEAVE (RREGULAR EMPLOYEES)

Part-time employees shall accrue sick leave on a pro-rated basis, given the ratio of their budgeted work schedule to full-time (e.g., all employees working in a 20 hour/week position shall receive four (4) hours of sick leave each month, except as modified by Section 9.04-PartTime Employees).

When accrued sick leave must be used, an employee will notify their immediate supervisor of the leave and its probable duration within one hour after the regular scheduled starting time.

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57 Employees shall be eligible for the sick leave advance program as specified in the Personnel Rules and Regulations rule #10.8-Sick Leave Depletion Allowance.

SECTION 14.00 - LEAVES OF ABSENCE
All leaves provided in this section, unless indicated as otherwise, shall be granted to full-time employees at the rates described. Part-time employees shall receive paid leaves of absence on a prorated basis, given the ratio of their budgeted work schedule to full timefull-time.

14.01 PAID LEAVES OF ABSENCE (REGULAR EMPLOYEES)

14.01.01 Personal Business Leave
Regular eEmployees may use up to twenty-four (24) hours per fiscal year of their accrued sick leave for the purpose of personal business which shall not include recreational activities.

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58 ability to continue their daily work performance.

14.01.03 Jury Duty
A regularn employee required to report for jury duty or to answer a subpoena as a witness in their capacity as a City employee, except where the employee is suing the City, shall be granted a leave of absence with pay for actual time spent in court and in related travel, not to exceed the number of hours in the employee’s normal workday and work week. Employees assigned to swing, graveyard or other non-standard shifts shall receive equivalent time off when performing jury duty on their scheduled work day on the day the jury duty is performed. An employee must notify their supervisor of the expected duration of the absence and must present to the department head official documents supporting such duty. An employee shall reimburse the City for any jury services or witness fees received except mileage or subsistence allowance. This section shall not apply to grand jury service.

14.01.04 Absence for Examination
A regularn employee shall be granted paid release time to participate in any part of an examination process for promotion or transfer within the City workforce that is scheduled during the employee’s regular hours of work. The employee shall notify their immediate supervisor twenty-four (24) hours in advance of such an absence.

14.01.05 Blood Donations (Regular and Temporary Employees) An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during regularly scheduled hours of work. The length of such leave must be approved by the supervisor and is dependent upon the nature and scheduling of the work performed and the travel distance required.

14.01.06 Military Duty
A regularn employee who is a member of the National Guard or any reserve component of the armed services of the U.S. shall be granted up to thirty (30) calendar days per fiscal year of paid leave for any reserve training or active duty scheduled during the employee’s regular work hours. The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the “notice” for such duty. All other military leaves shall be granted pursuant to relevant State and Federal statutes.

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59 day pay. The employee will be entitled to receive this pay upon submission of proof of active duty and proof of military pay, in accordance with the applicable City procedures.

Employees who exhaust the paid leave benefits described above may take unpaid leave pursuant to Section 14.02.01 and are not required to sue vacation or other similar leave.

The Union and the City recognize that work-related injuries/illnesses can often be prevented.

Therefore, work-related injuries/illnesses shall be an ongoing agenda item for the Citywide Safety Committee. Proactive, preventive measures may be recommended by the Committee.

The Committee will also make recommendations on appropriate way(s) of reviewing workers’ compensation claims.

The paid leave shall be within two (2) months of the birth or adoption. This leave will be considered a part of the time allotted to family leave as authorized in Section 14.02.03-Family Leave.

14.01.09 Critical Incident/Recovery Leave (Regular and Temporary Employees) Employees are guaranteed up to eight (8) paid hours off to respond to traumatic workplace incidents such as assault, sexual harassment, and death at the worksite. This provision is governed in accordance with the Critical Incident Recovery Leave and Critical Incident Response policy APO. The City and Union shall meet and confer on the creation of the APO.

14.02 UNPAID LEAVES OF ABSENCE (REGULAR EMPLOYEES)

Approvals of all such leaves of absence are at the sole discretion of management. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves, except that employees on medical leave may retain up to eighty (80) hours of accrued vacation and employees on Military Leave pursuant to Section 14.01.06 are not subject to the leave depletion requirement.

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60 in a consistent and equitable manner. When requested, the department head shall meet with the employee to review the reasons for denial.

Upon return to work, the employee shall be assigned to the same classification but not necessarily to the same department.

The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager and may not exceed a total of twelve months.

14.02.03 Family Leave

A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care including the child of a domestic partner (leave for this reason must be taken within the twelve (12) month period following the child’s birth or placement with the employee);

1. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-four (24) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees’ child or child of the employee’s domestic partner.

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61 B. In order to care for a spouse, domestic partner, child, parent, parent-in-law, grandparent, grandchild or sibling of the employee who has a serious health condition;
C. The employee’s own serious health condition that makes the employee unable to perform any one or more of the essential functions of their position.

D. Military family leave, which includes:

2. Conditions covering the leave shall include the following:

A. Eligible employee means having been employed by the City for twelve (12) months and has worked for at least 1,250 hours during the twelve (12) month period immediately preceding the commencement of the leave; B. Medical verification is required for employee or ill family member for medical leave period;
C. Employees are required to give at least thirty (30) calendar days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

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62 E. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see section 14.02.02- Pregnancy Disability Leave).

F. Employees retain “employee” status while on family care leave. The leave does not constitute a break in service for purposes of longevity, and/or seniority.

Upon return to work, employee will be reinstated to an equivalent position with equivalent pay and benefits.

14.02.01-Medical or Personal Leave.

H. Any other conditions or interpretations of this leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

14.03 CONTINUATION OF INSURANCE BENEFITS DURING UNPAID LEAVES OF ABSENCE (REGULAR

EMPLOYEES)
City sponsored insurance benefits may be continued during unpaid leaves of absence under the following conditions:

14.03.01 Personal Leave
The City shall continue to pay benefit premiums during a personal leave of less than thirty (30) calendar days.

For leaves of more than thirty (30) calendar days, employees may continue premium payments at their own cost, in accordance with appropriate PERS medical plan provisions.

14.03.02 Medical Leave
The City shall continue to pay benefit premiums during the entire length of a medical leave of absence including pregnancy disability leave.

SECTION 15.00 -– BENEFITS (RREGULAR EMPLOYEES)

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63 Medical and Hospital Care Act (PEMHCA).

In accordance with IRS Code Section 125, the City will provide a Flexible Benefits Plan (“Cafeteria Plan”) to all eligible employees. If an employee elects to participate in a CalPERS medical plan, the maximum monthly City contribution, including the PERS required minimum, will equal 95% of the premium of the Bay Area Region Blue Shield Access+ HMO or the PERS Platinum PERS Choice Blue Cross PPO for employees and their eligible dependents. Employees enrolled in other plans will receive a premium equal to the greater of 95% of the Bay Area Region Blue Shield HMO or the PERS Choice Blue Cross PPO premiumPERS Platinum. In no event will employees be credited with cash based on the plan chosen. In the event that either the Blue Shield Access+ HMO or the PERS Choice Blue Cross PPOPERs Plantinum plans are no longer available, the City and the Union shall meet and confer to designate a similar cost plan as the benchmark.

B. Optional Benefits
Through the Cafeteria Plan, employees may enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical Reimbursement Account (MRA)

2. Dependent Care Reimbursement Account (DCAP)

3. Cancer and Critical Illness Protection Insurance
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

4. Accident Protection Insurance

5. Additional Life Insurance

6. Long Term Care Insurance
C. Medical Waiver
Employees may elect to waive City medical coverage and receive a cash benefit. In order to receive the medical waiver benefit, the employee must provide proof to the City of other current medical coverage. Full-time employees who waive medical coverage are eligible to receive $200 per month; part-time employees shall receive a prorated amount, based upon their full time equivalency (FTE). The medical waiver amount may be applied toward the purchase of any pre-tax or post-tax optional benefits, or paid as a taxable cash benefit.

Employees receiving the medical waiver benefit must notify the Human Resources Department if they cease to be covered by any other medical plan, thereby making them ineligible for the medical waiver benefit.

D. Medical Plan Changes
The City will continue to work with the Healthcare Cost Containment Committee to research alternatives to the CalPERS medical plan. If the City discontinues CalPERS medical coverage, to the extent possible, the City will provide similar coverage. In the event of a change in medical plan coverage, the City will provide the Union sixty (60) days’ notice and the opportunity to discuss any such change and meet and confer regarding the impact of any changes. No changes will be made without mutual agreement of both parties.

15.02 DENTAL INSURANCE

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64 The City shall provide a dental plan for employees and their eligible dependents at no cost to employees with a maximum benefit of $1,700 per covered individual per calendar year.

15.04.01 Short Term Disability
The City will provide, at the City’s cost, to SEIU represented employees CA SDI and STD Plan Option #9 (30 day EP to dovetail with LTD 90 day EP, 24-hour coverage), and will implement this during the first year of the agreement and as soon as administratively feasible.. Effective the pay period beginning October 11, 2025, or the pay period when council approves the successor MOU in open session, whichever is later, employees shall contribute 1% of their base salary through payroll deductions to cover the cost of SDI benefits.

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65 contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

15.08 LIFE INSURANCE
The City shall provide a $20,000 term life insurance policy for employees.

15.09 UNIFORM ALLOWANCE
The City shall provide required uniforms at its own expense.

The City will replace worn or damaged uniforms, providing the employee returns the damaged or worn uniform to their supervisor.

Routine care and maintenance will be provided by the City. With departmental approval, employees may provide their own uniform care and maintenance.

15.10 EQUIPMENT MECHANIC TOOLS
Full-time eEquipment mechanics, and equipment service workers, and Recycling Center Maintenance Mechanics are required to own and maintain a full set of mechanic’s tools up to 3/4" (basic tools). All larger tools and specialized tooling will be furnished by the City.

All Full Time equipment mechanics and equipment service workers required to supply tools necessary for performance of their job will be paid a tool reimbursement allowance not to exceed $2,0500 per year. All tool purchases are subject to prior approval by a department representative. This allowance shall be paid during the month of March of each year.

Part-time and temporary classifications may receive a prorated amount based on operational need as determined by the Department.

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66 eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to the eligibility requirements established by either CalPERS or the City and subject to the tax regulations of the State of California and the Internal Revenue Service of the United States Government.

SECTION 16.00 -– SAFETY (REGULAR AND TEMPORARY EMPLOYEES)

16.01 INTENT
The City intends to meet its obligation under the California Occupational Safety and Health Act and shall adopt and use reasonable safeguards, devices and practices for safe employment.

Responsibility for promoting safety practices is shared equally by the City and its employees.

The City will provide appropriate safety training courses and may place reasonable requirements of prior training and/or certification before employees engage in certain activities.

Employees shall report unsafe working conditions and shall not be penalized for refusal to work under conditions where adequate safety precautions have not been taken. Any employee receiving disciplinary action as a result of refusing to work under those conditions has the right to appeal through the disciplinary appeal provisions of this Memorandum of Understanding.

In order to ensure that health and safety hazards are dealt with on a timely basis, the following procedure shall be used to deal with potential hazards.

The safety committee shall be apprised of all reported hazards, their status, and resolution of the issue(s).

16.03 SAFETY BOOTS
The City shall provide safety boots/shoes for regular and temporary employees in the classifications that require wearing them as shown in Exhibit E. The City may establish administrative procedures for the selection and purchase of such boots/shoes. All eligible employees will be required to wear safety boots/shoes while on duty unless granted a medical exemption. Safety boots/shoes shall not be worn for non-work related purposes. Boots/shoes shall be replaced on an as-needed basis up to the current annual limit of $250175. If feasible, the City will offer a choice of different styles of boots/shoes.

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67 SECTION 17.00 - REDUCTION IN FORCE (REGULAR EMPLOYEES)

When one or more employees assigned to the same classification within a department are to be laid off, the order of lay-off shall be as follows:

1. Temporary

2. Probationary

Full-time employees have the right to bump the least senior full-time employee. However, if there is no less senior full-time employee, the full-time employee being laid off has the right

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68 to bump a less senior part-time employee in the position that is closest to full time.

Employees who bump pursuant to this section and who have previously held more than one classification within the City must bump to the most recently held classification of equal hours, if available.

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69 of the proposed layoff, complete and submit a form provided by the City for this purpose.

An employee who retires in lieu of layoff shall have their name placed on the reemployment list.

17.09 TRANSITION TRAINING
The City shall provide, at no expense to the employee to be laid off, a minimum of twelve (12) hours of training to help employees transition to other employment. Such training shall occur prior to layoff. Employees shall receive their regular pay while attending this training. The training may include, but not be limited to:

1. Resume Writing

2. Methods of Job Searching

3. Interviewing

4. Coping with Stress

5. Unemployment Insurance Benefit
SECTION 18.00 - CONTRACTING OUT (REGULAR EMPLOYEES)
Before submission of a recommendation to contract out any bargaining unit work, the Union will be offered the opportunity to examine the proposal for at least thirty (30) working days prior to Council consideration, whenever possible, and to submit recommendations. If requested, the City will meet and confer over the decision and implementation of contracting out the work.

In addition, prior to contracting out bargaining unit work which will not result in layoffs, the City will consider utilizing qualified unit employees to do the work on an overtime basis if:

1. It is to the City’s economic advantage; and

2. It is to the City’s operational advantage.

Unit employees may provide the City with prior notice of their interest in performing such work.

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70 SECTION 19.00 - CAREER ADVANCEMENT

19.01 CAREER LADDERS (REGULAR AND TEMPORARY EMPLOYEES)
It is the policy of the City to develop career ladders and various programs of training and retraining for City employees. The Human Resources Department shall coordinate the establishment and ongoing management of these programs.

19.02 JOB OPENING ANNOUNCEMENTS(REGULAR AND TEMPORARY EMPLOYEES) The City encourages employees to apply for other positions and, to that end, all job announcements will be available for a minimum of five (5) days prior to the final filing date or concurrent with any outside advertising or until the announced maximum total number of applications accepted has been met.

For temporary recruitments, the City encourages employees to apply for other positions and, to that end, all job announcements will normally be posted on department bulletin boards and other appropriate locations as determined by the Director of Human Resources. Employees are also advised to access the listings via the City’s website and/or the Human Resources Department.

19.03 TRAINING (REGULAR EMPLOYEES)
The City shall maintain, consistent with budgetary allocations and availability, a training program which will enable employees to upgrade their skills and improve their levels of performance. The City desires to provide a training program for all City employees. The selection of training opportunities shall be at the sole discretion of the department head and City Manager, consistent with City policies, but the City shall solicit input from employees and will consider training requests.

19.04 CROSS TRAINING (REGULAR EMPLOYEES)
The City and Union acknowledge that there is a benefit to cross-training of employees. When feasible, the City will develop programs to rotate and cross-train employees to enhance skill development. Employees may request that their department heads consider them for crosstraining opportunity. Such requests will be considered and a timely response provided.

19.04.01 Training and Cross Training (Temporary Employees) The City shall maintain, consistent with budgetary allocations and availability, a training program which will enable employees to upgrade their skills and improve their levels of performance. The City and Union acknowledge that there is a benefit to cross-training of employees. When feasible, the City will cross-train employees to enhance skill development.

Employees may request consideration for cross-training opportunities. Such requests will be considered and a timely response provided.

19.05 CERTIFICATION OF ELIGIBLES FOR PROMOTIONAL EXAMINATIONS (RREGULAR

EMPLOYEES)
When a promotional eligibility list (as defined in the Human Resources Rules and Regulations) is used to fill a vacant position and that promotional list includes employees represented by the agreement, the Human Resources Director shall certify the top five (5) eligibles, if there be that number, on the relevant promotional list to the appointing authority. If there be more than one vacancy in the same class, the Human Resources Director shall certify one additional eligible for each additional vacancy, if there be candidates available on the eligible list. The appointing authority or designee shall interview all eligibles certified by the Human Resources Director.

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71 19.06 REIMBURSEMENT FOR LICENSE AND CERTIFICATES (TEMPORARY EMPLOYEES) Employees shall be reimbursed for the cost of licenses and certificates which are required to perform their job duties. No reimbursement shall be made for fees of less than $5.

19.07 ABSENCE FOR EXAMINATION (TEMPORARY EMPLOYEES)
An employee shall be granted release time to participate in any part of an examination process for promotion or transfer within the City workforce that is scheduled during the employee’s hours of work. The employee shall notify their immediate supervisor five (5) calendar days in advance of such an absence.

19.08 APPLYING TO VACANT POSITIONS (TEMPORARY EMPLOYEES) Temporary employees may apply to open positions within their department without meeting a minimum service requirement.

SECTION 20.00 - TUITION REIMBURSEMENT(RREGULAR EMPLOYEES) The City shall reimburse each employee up to $500 per fiscal year (pro-rated for part-time employees) for job-related college/university courses, workshops, adult education and other training programs including related tuition, books and other course related expenses after successful completion of courses which are pertinent to their positions with the City.

For a course to be considered “pertinent” it must:

A. Improve knowledge and skills for the present position or for positions of higher classification within the City, or
B. Prepare for anticipated technological changes occurring in the employee’s career field.

SECTION 21.00 - GRIEVANCE PROCEDURE (REGULAR EMPLOYEES)

21.01 PURPOSE
To assure prompt and fair treatment of grievances related to employment.

Any employee or group of employees covered by this Memorandum of Understanding, or the Union acting on their behalf, may file a grievance.

Such allegation may be made by an individual employee or by a group of employees, or by

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72 the Union.

21.03 LIMITATIONS
A. A grievant may be represented by any representative of his or her choosing in preparing and presenting a grievance.

B. No reprisal shall result against any employee, group of employees, or the Union, who presents a bona fide grievance under this procedure.

C. Time limits may be extended by mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

F. Concurrent grievances alleging violation of the same provision(s) shall be consolidated for the purpose of this procedure as a single grievance.

21.04 PROCEDURES
Step I:

Step II:

The written grievance must contain in clear, factual and concise language:

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant sees them.

3. The specific provision of the M.O.U. or Personnel Rules and Regulations which the grievant alleges has been misinterpreted, misapplied or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievant.

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73 7. A copy of the written grievance, signed by the grievant or Union representative, shall be presented at the time of the department head conference. However, the grievance will not be processed by the City until the grievant or employee representative of a group grievance has signed the written grievance document.

Step III:

The City Manager or their representative shall render a written decision to all parties directly involved within fifteen (15) workdays following the hearing.

Step IV:

If the grievance is not resolved to the satisfaction of the grievant at the conclusion of Step III, the grievant may appeal the decision of the City Manager to a neutral arbitrator, provided theys/he so informs the City in writing within ten twenty (210) working days following receipt of the City Manager’s decision.

Within ten thirty (310) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

The Arbitrator is requested to expedite the decision as the parties normally expect a decision to

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74 be issued within fifteen (15) working days after the conclusion of the hearing.

The Arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

SECTION 22.00 - DISCIPLINARY APPEALS PROCEDURE (RREGULAR

EEMPLOYEES)

22.02 PRE-ACTION PROCEDURE
Step I:

The employee may request an extension of the time to respond for justifiable reasons. Failure to respond within the time specified will result in the employee’s waiver of their procedural rights and final action will be taken.

Step II:

22.03 POST-ACTION APPEAL
Step III:

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75 statement, signed by the appellant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons therefore, and stating that the pre-action procedures have been exhausted.

Step IV:

If the appeal is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within ten twenty (210) working days following receipt of the City Manager’s decision.

If such a list is requested from the State Mediation and Conciliation Service, the parties within ten (10) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon, the parties shall within ten (10) days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

For disciplinary action which would result in a suspension of three (3) days or less, the losing party shall pay for the cost of the arbitrator. For disciplinary action which results in a suspension of greater than three (3) days or demotion, reduction in salary or discharge, Tthe

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76 arbitrator’s expenses shall be borne equally by the parties regardless of the result of disciplinary action. In either case, each party shall bear the cost of its own representation.

SECTION 23.00 -– DISCIPLINE (REGULAR EEMPLOYEES)

The City reserves the right to implement discipline which does not follow progressive discipline guidelines for egregious circumstances.

23.02 NOTICE OF PROPOSED DISCIPLINARY ACTION
Within one (1) hour two (2) workdays of any notice of proposed disciplinary action issued to an employee under the provisions of MOU Section 22.02 Pre-Action Procedure Step I, a copy of the notice shall be either (a) hand-delivered to the Union with all attachments, or (b) faxed to the Union without attachments and sent to the Union by First Class Mail with all attachments, or (c) emailed to the Union with all attachments.

The Union’s point of contact shall be both the authorized representative and the SEIU Member Resource Center.

23.03 WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to their department head by filing an appeal to the department head within ten seven (710) working days, within the regular work week (Monday – Friday) and not including holidays, of receipt of the reprimand. The department head’s decision regarding the written reprimand shall be final. Reprimands will be removed from the personnel file after four three (34) years, in accordance with Section 8.01 Personnel Files. .

SECTION 24.00 – COMPENSATION STUDY (REGULAR EMPLOYEES)
The City and Union shall continue to meet on the findings of the 2021 Total Compensation Study prepared by Koff and Associates. As a show of good faith, the City commits to ensuring that no classification supported by the Enterprise Funds more than 15% out of the market by April 1, 2023, based on the findings of the 2021 study, and inclusive of salary increases to within 10% of the market. In addition, we agree that the City will provide a full 11% increase to the sanitation workers (Sr. Resource Recovery Worker, Resource Recovery Worker I/II and Solid Waste Worker.

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77 The Parties agree to continue to meet and confer over the findings and implementation of the 2025 compensation1 study prepared by Gallagher with the goal of closing the gap - subject to Council approval. All changes must be made upon mutual agreement of the Parties. Additionally, the Finance department will update the Union/Meet and confer team quarterly on available data on the financial status of the City.

New Compensation Study: The City and the Union shall meet by September January 1 of the preceding contract negotiation year , 2024 to meet and confer over the contractor selection and methodology including cities and benchmarked positions for the compensation study. The parties must agree on any new contractor selected to conduct the study and methodology utilized for the study, including the mapping of studied classifications to other classifications for which comparison data is not directly generated by the consultant. . If the parties are unable to mutually agree on the contractor or methodology for the new compensation study, the status quo of the methodology of the 20251 Study will remain.

The study shall be completed by March 1 of the contract negotiation year, , 2025, and the city agrees to bear the cost of the survey.

SECTION 25.00 - AUTHORIZED AGENTS (REGULAR AND TEMPORARY

EMPLOYEES)
For the purposes of administering the terms and provisions of this Memorandum of Understanding:

B. The Union’s principal authorized agent shall be the Santa Cruz Area Director of the SEIU Local 521 or their duly authorized representative (address 517 Mission Street, #B, Santa Cruz, CA 95060).

SECTION 26.00 -– RENEGOTIATIONS (REGULAR AND TEMPORARY

EMPLOYEES)
Negotiations shall begin one hundred fifty (150) days prior to the expiration date of this agreement , or any other mutually agreed date.

SECTION 27.00 -– SEVERABILITY (REGULAR AND TEMPORARY

EMPLOYEES
Should any of the provisions herein contained be rendered or declared invalid by reason of any State or Federal legislation or court action, such invalidations shall not invalidate the remaining portions of this

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78 Memorandum of Understanding which shall remain in full force and effect, insofar as such remaining portions are severable.

SECTION 28.00 - HOLIDAY CLOSURE (RREGULAR EEMPLOYEES)
If the City decides to close around the Christmas and New Years’ holidays, the following will apply:

Employee participation in the closure program is voluntary. During the closure, employees may use accrued vacation, compensatory time off, floating holidays, or excess holiday time.

SECTION 29.00 - AUTOMATIC DEPOSIT-NEW HIRES (RREGULAR AND

TEMPORARY EEMPLOYEES)
Newly hired City employees shall be required to receive their paycheck through automatic deposit.

SECTION 30.00 - ELECTRONIC PAY STUBS (RREGULAR AND

TEMPORARY EEMPLOYEES)
Employees newly hired after the City implements electronic pay stubs shall automatically receive their pay stubs electronically. Newly hired means only those employees hired from an external hiring list and does not include promotional hires from current City employees. New employees may opt out of receiving electronic pay stubs and receive a printed copy of their pay stub.

SECTION 31.00 – TEMPORARY EMPLOYEES

31.01 WORK ASSIGNMENTS

31.01.021 Work Shifts
Where practical, employees shall be assigned regularly scheduled starting and quitting times.

The Union recognizes that the nature of some temporary employment is on-call and/or irregularly scheduled. Employees in these types of positions will not be assigned regularly

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79 scheduled starting and quitting times. Regularly scheduled employees and the Union will be notified as much in advance as possible, but at least five (5) working days in advance of changes in shift schedules and work weeks.

The scheduling of temporary employees is at the sole discretion of the employing department.

If requested, the department head will meet with the Union regarding scheduling assignments.

Any disputes regarding work assignments will be resolved by the department head.

31.02 SALARY STEPS

31.02.01 Salary Rates Upon Appointment
Temporary workers may be hired at any step in the appropriate salary range depending on the difficulty of recruitment, unusual qualifications, or upon prevailing rates being paid upon the recommendation of the department head and approval of the Director of Human Resources.

Bargaining Unit employees temporarily filling classifications included in the Service Employees’ Bargaining Unit shall be placed in the same salary range as provided to employees in the Service employees’ bargaining unit.

31.02.02 Advancement within the Salary Range
Advancement within a temporary employee salary range shall be granted solely on meritorious job performance as documented by a satisfactory performance evaluation.

Step increases for temporaries filling classified positions are as follows:

Starting Step Placement upon initial hire.

Next Step Eligible upon completion of 1040 hours worked.

Subsequent Steps Eligible upon completion of each 2080 hours worked.

Step increases for temporary employees filling unclassified* positions are as follows:

Starting Step Placement upon initial hire.

Subsequent Step Eligible upon completion of 600 hours worked.

Subsequent Step Eligible upon completion of each 600 hours worked. (Total 1,200 hours) Subsequent Step Eligible upon completion of an additional 600 hours worked. (Total

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80 1,800 hours)
Subsequent Step Eligible upon completion of an additional 600 hours worked.(Total 2,400 hours)
* Professional and Technical Assistants (Grade Code 917) will receive a 5% increase (in lieu of a step increase) in accordance with this schedule, not to exceed the top of their salary range.

31.02.03. Salary Upon Return to Temporary Employment
A worker,who returns to temporary employment in the same position within two calendar years, or longer at management’s discretion, shall be placed at their most recent salary step.

31.02.04 Salary Step When Hired Into a Regular Position When a temporary worker is hired into a higher-level regular position, their pay step in the regular position shall be at least 5% higher than their most recent temporary pay rate, but shall not exceed the top step for the new position.

31.02.05 EMT Differential
Lifeguard I’s who obtain and maintain an EMT certificate shall receive a five percent (5%) differential for all hours worked. The employee shall present proof of certification to the Department.

31.02.06 Beach Lifeguard II Duty Officer Stipend
Beach Lifeguard II will receive a four percent (4%) stipend when scheduled to work as the Duty Officer.

31.02.07 Call Back
Callback work is defined as work required by management of an employee who, following completion of the employee’s work day or work week and departure from the employee’s 12 work site, is unexpectedly ordered to report back to duty or by phone or computer to perform necessary work.

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81 B. Callback to Worksite
1) All callback hours shall be paid at the overtime rate. A minimum of two (2) hours of overtime compensation shall be paid for all callback periods of less than two (2) hours. 2) Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.
3) If an employee, who was called back to work and has completed their assignment and left work, is again called back to work, they will not receive another minimum if the time of return is within the previous callback minimum.
4) Employees who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

31.02.08 Duty Assignment – Marine Rescue Unit Members Only A. Definition
Duty assignment is defined as an assignment to an on-call status for a twenty-four (24) hour period of time. While on duty assignment, an employee must remain available to be contacted by phone or pager and be able to report to work within ten (10) minutes. The employee must remain within a ten (10) minute response area to the Santa Cruz Municipal Wharf throughout the duty assignment. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act. See Section 31.02.06 for All Other Temporary Service Employee Duty Assignment.

C. Compensation
1) Duty personnel shall receive $125 for a twenty-four (24) hour assignment. 2) All duty hours actually worked during the period of Duty Assignment and outside the employee’s regularly scheduled shift shall be compensated at their regular straight-time pay rate. A minimum of two (2) hours will be paid for callouts of less than two (2) hours.

31.02.09 Duty Assignment – All Other Temporary Service Employees A. Definition
Duty assignment is defined as an assignment to an on-call status for a specified period of time. While on duty assignment, an employee must remain available to be contacted by phone or pager and be able to report to work within a thirty (30) minute period. Duty assignment shall not be considered “hours worked” pursuant to the Fair Labor Standards Act. See Section

31.02.05 for Marine Rescue Unit Only Duty Assignment.

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82 B. Assignment
Duty personnel shall be assigned on a weekly rotational basis from an established list consisting of, but not limited to, qualified volunteers. A voluntary rotation process will be the preferred method of duty assignment selection; however, the City may require duty assignment if there are insufficient qualified volunteers. Prior to making mandatory assignments, the City will notify the Union. Only “qualified” employees may be appointed to duty assignment lists, as determined by the appropriate department head(s). Such qualifications will be based on the nature and requirements of the tasks performed while on duty assignment. With the concurrence of the duty supervisor, duty assignments may be substituted by other personnel on an approved list, provided employees have at least one week between duty assignments.

31.02.10 Holiday Premium Pay
The City shall provide a payment of one and a half (1.5) times the base hourly rate for actual hours worked on fixed holidays. Temporary employees will not be eligible for paid time off for a holiday unless provided for under another section of the MOU. Holidays include those outlined in Section 11.01, Fixed Holidays.

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83 31.03 SENIORITY
Seniority for temporary workers shall be defined as hours worked within a given classification from the date of initial hire as a temporary worker.

Compensatory time off shall not be allowed to accumulate beyond eighty (80) hours at any given time.

Based on IRS tax law under constructive receipt rules an employee may use the following methods to meet the IRS rule.
 An employee with accrued compensatory time off shall be permitted to use such time within a reasonable period in the same calendar year as it was earned after making the request, unless such time off will unduly disrupt the operations of the department.  Cash out all or part of the accrued and unused compensatory time anytime during the calendar year.
 Any remaining balance will be paid out on the last payday in December.

31.05 LLEAVES OF AABSENCE

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84 household. In rare cases when the individual has no other legal relationship with the deceased other than foster or step-parent, the HR Director or City Manager has the discretion to approve that leave upon application.

See Section 14.01.05.

31.06 IN-LIEU PAID TIME
During the term of the MOU, upon completion of 600 or more hours of work, temporary employees shall receive nineteen (19) hours of in-lieu paid time. Subsequently, workers accrue nine (9) hours of paid time for every 200 additional hours of work thereafter. Such in-lieu paid time is provided instead of any other type of paid leave or holiday time off (except paid Bereavement Leave). Employees will be allowed to receive payment for accrued in-lieu paid time upon request. Any unused in-lieu paid time will be payable to the employee upon termination of employment.

31.07 SICK LEAVE
In accordance with the Healthy Workplaces, Healthy Families Act of 2014:

I. Applicability and Eligibility to Earn and Use Paid Sick Leave A. Employees shall receive paid sick leave as described in this section after 30 days of City employment within a 12-month period.

B. An employee is eligible to use accrued paid sick leave after 90 days of City employment within a 12-month period. The 12-month period shall be measured initially by the employee’s hire date and

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85 by the employee’s anniversary date.

Employees who are hired after July 1st of any given calendar year shall also be issued 24 hours of paid sick leave.

B. Any unused paid sick leave hours remaining as of June 30th of any calendar year shall expire and shall not be carried over to the next 12-month period.

III. Use of Paid Sick Leave
B. An eligible employee may use only up to a maximum of three (3) days or 24 hours of paid sick leave in a 12-month period. An employee must be allowed to take up to a total of 24 hours of accrued time during any 12-month period for reasons allowed under Section III.B. (For example, if an eligible seasonal or temporary employee who works six (6) hours per day and has accrued 24 hours of paid sick leave, takes three (3) paid sick days during the year, the employee has used 18 hours and still has six (6) hours of paid leave remaining in the same year.) C. An eligible employee may use paid sick leave under this section for the following reasons:
i. Diagnosis, care, or treatment of the employee’s existing health condition or preventive care for an employee; or
ii. Diagnosis, care, or treatment of an existing health condition of, or preventive care for an employee’s family member. For the purposes of using sick leave under this section only, “family member” shall mean an employee’s parent, child, spouse, registered domestic partner, parent-in-law, sibling, grandchild, or grandparent.
iii. In addition, with appropriate certification an employee who is a victim of domestic violence, sexual assault, or stalking may use accrued paid sick leave under this section for the following reasons:
a) To obtain or attempt to obtain any relief, including, but not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the victim or the victim’s child; b) To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking;
c)To obtain services from a domestic violence shelter, program, or rape crisis center; d) To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking; or
e)To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.

V. Other Terms of Paid Sick Leave
A. Employees may determine how much paid sick leave they wish to use, however, the minimum

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86 amount of paid sick leave an employee may use is one hour per work day.

C. Employees shall be compensated for each hour of sick leave used under this policy at the employee’s base hourly rate of pay. Employees shall be compensated for using sick leave, on the payday for the next regular payroll period after the sick leave was taken.Except as provided in this section, upon termination, resignation, retirement or other separation from employment, no cash out or compensation of any kind will be provided to an employee for accrued and unused paid sick leave.

31.08 BENEFITS

31.08.04 Medicare
Temporary service employees and the City (on employees’ behalf) participate in and contribute to the Medicare program.

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87 31.09 GRIEVANCE PROCEDURE

C. Time limits may be extended by mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant see them.

3. The specific provision of the MOU which the grievant alleges has been misinterpreted, misapplied, or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievance.

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88 The department head shall hold a conference with the grievant within ten (10) workdays following receipt of the formal grievance. They shall prepare a written response within five (5) working days after the conference. Copies shall go to the parties involved including the employee’s representative and the Human Resources Department.

Should the City decide to terminate, suspend or demote a temporary employee due to performance and/or attendance issues, it will so notify the employee in writing with concurrent notice to the Union.

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89 Additionally, in an effort to maintain transparency and accountability in the recruitment and selection of temporary employees, the committee shall discuss and recommend improvement to those processes.

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90 City of Santa Cruz Service Employees
SEIU Local 521 City of Santa Cruz
_________________________ _________________________
Date Date
Oliva Martinez Timothy DavisSara De Leon, Lead
Negotiator
Devon KingKaty Bradley Sara De LeonTimothy L.

Davis, Labor Counsel
Leslie Auerbach Debbie Jones
Ken Bare
Eric Bumgarner
Emilio Galvan
Juan Molina
Ted Rossiter dfdf
Guillermo Soriano
David Tannacidfdf

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City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Public Works
SUBJECT: FY 2027 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution approving the FY 2027 allocation of SB 1 Road Maintenance and Rehabilitation funds and authorize the City Manager to submit the project list to the California Transportation Commission.

BACKGROUND: Senate Bill (SB) 1, the Road Repair and Accountability Act, was enacted by the legislature and approved by the governor in April 2017. SB 1 provides the first significant, stable, and on-going increase in state transportation funding in more than two decades. Formula funds are provided to cities in Santa Cruz County, the County of Santa Cruz, Santa Cruz Metro, the Regional Transportation Commission and Caltrans. Guidelines for the use of the different funding categories have been developed and made available to cities and counties on a competitive basis.

SB 1 will generate $1.5 billion per year to cities and counties statewide and will be distributed based on existing gas tax formulas. Cities and counties are expected to prioritize basic road maintenance and rehabilitation projects for these funds, though other projects are also eligible.

They must meet California Constitution Article XIX and other statutory requirements. The California Transportation Commission (CTC) is responsible for monitoring fund allocation and expenditure.

DISCUSSION: Based on the CTC approved guidelines, cities and counties are required to adopt a resolution and submit a list of projects annually to the CTC by July 1 to the RMRA program and it must reflect how the agency intends to use the SB1 funds. The RMRA is estimated to provide an additional $1,712,201 in gas tax funds to the City of Santa Cruz (City) next fiscal year. Public Works has developed a project list based on the need to fund gas tax eligible projects developed during the FY 2027 Capital Investment Program (CIP) process. Public Works intends to focus the use of RMRA funds on road rehabilitation.

21.1 SB 1 also stabilizes the State Transportation Improvement Program (STIP) and State Highway Operation and Protection programs (SHOPP) that will benefit local transportation programs and projects. It also funds several competitive programs such as the Active Transportation Program (ATP), Transit and Intercity Rail Capital Program (TIRCP), Solutions for Congested Corridors, Local-State Partnership Program and Caltrans’ planning grants. Council approved grant submissions for the Active Transportation Program, State Local Partnership Program and Caltrans planning grants in the past.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This is not a project under CEQA.

HEALTH IN ALL POLICIES (HiAP): This project promotes Health in All Pillars of Equity, Sustainability and Public Heath. By accepting these funds, the City has more funding and resources to devote to projects that advance active transportation projects that reduce greenhouse gas emissions and promote healthier transportation options while also supporting equitable transportation solutions for all and reducing vehicle congestion.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: SB 1 has a positive impact on the City’s transportation and maintenance budget by providing an estimated $1,697,389 in new Gas Tax revenue to the FY 2027 CIP. Additionally, other SB 1 programs will fund important transportation projects in the City and region.

Prepared By:

Joshua Spangrud
Senior Civil Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

21.2 RESOLUTION NO. NS-XX,XXX
RESOLUTION OF THE CITY OF SANTA CRUZ ADOPTING THE FY 2027 LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Santa Cruz (City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, by resolution which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $1,712,201 in RMRA funding in Fiscal Year 2027 from SB 1; and
WHEREAS, the City has undergone a thorough public process to ensure public input into our community’s transportation and infrastructure priorities through consideration of the City’s Capital Improvement program at public meetings before the Transportation and Public Works Commission and the City Council, and through social media; and WHEREAS, the City uses a variety of tools to develop the Capital Investment Program, such as a Pavement Management System, operational resources and public input to develop the SB 1 projects to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the FY 2027 funding from SB 1 will help the City maintain, rehabilitate and restore the city’s infrastructure including street storm drains and catch basins citywide to prevent flooding, storm damage repair projects, rehabilitate arterial streets that include pedestrian and bicycle systems improvements that improve access and safety in Santa Cruz in FY2027; and that SB 1 will fund many similar and larger projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in a “Good” condition with a current average PCI of 61 and this revenue will help us increase the overall quality of our road system and over the next decade will assist in bringing our streets and roads into a “Very Good” condition, PCI goal of over 70 as well as repair other deficiencies and improve our multi-modal transportation system; and

21.3 RESOLUTION NO. NS-XX,XXX
WHEREAS, without revenue from SB 1, the City would otherwise fall further behind in maintaining our street infrastructure, not be able to reduce flooding impacts, and limit our ability to improve access and safety for our community; and
WHEREAS, if the Legislature and Governor failed to act, city streets and county roads would have continued to deteriorate, having many and varied negative impacts on our community; and
WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and
WHEREAS, modernizing the local street and road system provides well-paying construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduced vehicle emissions - helping the City and State achieve air quality and greenhouse gas emissions reductions goals; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on maintenance and safety, investing in complete streets infrastructure, and using appropriate technology, materials and practices, will have significant positive cobenefits in and for our community.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Santa Cruz that the:

1. The foregoing recitals are true and correct.

2. The City of Santa Cruz is adopting the SB 1 Road Maintenance and Rehabilitation Account (RMRA) Project List for FY 2027 as follows:

New Projects:

21.4 RESOLUTION NO. NS-XX,XXX
Murray Street Bridge Seismic Retrofit: This project includes seismic retrofit, widening the deck, new barrier rails and reconfigured approaches. This project is currently under construction and will be completed in the first quarter of 2028.

3. The following previously approved and adopted projects may also utilize Fiscal Year 2027 SB1 Road Maintenance and Rehabilitation (RMRA) account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

City Arterial and Collector Street Reconstruction and Overlay 2027. This project will include: milling (Cold-In Place-Recycling if conditions warrant), correcting subgrade issues, paving, sidewalk and crosswalk improvements, safety improvements (including striping). Project Location: Bay Street from Lennox Street to Mission Street (Rte 1); and
Morrissey Boulevard from Pacheco Avenue to Prospect Heights, Prospect Heights from Morrissey Boulevard to Pacheco Avenue, Pacheco Avenue from Prospect Heights to Morrissey Boulevard, Encinal Street from River Street (Highway 9) to Dubois Street, Dubois Street from Encinal Street to Harvey West Boulevard, Harvey West Boulevard from Dubois Street to Coral Street, and Coral Street from Harvey West Boulevard to River Street (Highway 9). This project is expected to begin in March 2027, and to be completed by July 2027.

The expected useful life for these improvements is approximately 15 years.

PASSED AND ADOPTED this 23rd day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

21.5 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Public Works
SUBJECT: Santa Cruz Seaside Company Conditional Easement Agreement Located Adjacent to 400 Beach Street in the City of Santa Cruz (PW) LOCATION: District 4
RECOMMENDATION: Motion to adopt a resolution to approve a conditional easement agreement granted by the City to Santa Cruz Seaside Company (“Boardwalk”) for the installation of an electrical substation located adjacent to 400 Beach Street (APN No. 117-321- 04), in a form acceptable to the City Attorney.

BACKGROUND: Santa Cruz Seaside Company (“the Boardwalk”) is undertaking a comprehensive electrical infrastructure upgrade project to support current and future operational needs. As part of this project, the Boardwalk will construct a new electrical infrastructure system along with a 2,404‑square‑foot main substation enclosure designed to house two new transformers, associated switchgear, and additional electrical service equipment. The Boardwalk’s existing equipment is constrained by limited available space, insufficient for current operational demand, and non‑compliant with current requirements. As a result, the Boardwalk has represented to the City of Santa Cruz (City) that it must relocate and replace the system. The Boardwalk has identified a potential new site for the substation; however, preliminary evaluation indicates that the proposed location may fall within the public right‑of‑way and therefore upon City property.

DISCUSSION: Staff in the Public Works and City Attorney Office have been in discussion with the Boardwalk regarding the proposed location of the new substation, including that it may be located within the City-owned public right-of-way. Both parties acknowledge the uncertainty and conflicting initial studies regarding property ownership in the vicinity of 400 Beach Street, including the proposed substation location. City Staff and the Boardwalk each have engaged surveyors and are in the process of clarifying this ownership concern.

Because the Boardwalk must imminently proceed with construction of the new substation to resolve its above-stated existing electrical infrastructure concerns, the parties agree that a conditional easement agreement is an appropriate placeholder providing the Boardwalk with the right to build the project if it is within the public right-of-way.

22.1 The general terms of the conditional easement agreement are as follows. The parties would enter into an agreement, pursuant to Council approval herein, allowing the Boardwalk to proceed at its own risk in constructing the new substation. In the agreement, the Boardwalk acknowledges that the facility may be located within the public right-of-way and agrees to obtain insurance and indemnify the City from risks associated with the construction and operation of this substation.

The parties then agree to further meet and confer as to the ownership of the land. If the Boardwalk owns the underlying land, then the easement is moot and the Boardwalk can proceed with the project on its own. If the City owns the underlying land, then per the agreement, the parties agree to establish a fair market valuation of the easement. If Council approves that value, the Boardwalk will pay for the easement. The parties will then record the easement, and the Boardwalk can operate the facility within the public right-of-way. If the land is owned by the City, the agreement provides both parties with the right to terminate the easement if a future public need arises. In such an event, the parties agree to negotiate a potential replacement location.

The conditional easement agreement provided for Council review is in “draft” form given that Exhibit A (Facility Description, Vicinity Map) and Conditional Easement Agreement (Legal Description) cannot be finalized until the Boardwalk receives the requisite building permits from the City and approval from Pacific Gas & Electric to confirm access exact locations. The Conditional Easement Agreement is in the Public Works Department for public review.

As designed, the proposed electrical substation location is in conformance with local regulations.

Moreover, the proposed project does not impact the existing public sidewalk or bikeway, or the proposed Rail Trail Segment 8.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Approval of this resolution is not a “project” under the California Environmental Quality Act (“CEQA”). All environmental impacts identified for the project, along with the required mitigation measures, will be incorporated and enforced through the building permit review process.

HEALTH IN ALL POLICIES (HiAP): The Boardwalk conditional easement supports the following Health in all Policies Conditions: Neighborhood/Built Environment and Public Safety by strengthening critical infrastructure that contributes to a safe, reliable, and resilient built environment. The substation improves the capacity and reliability of the electrical system, reducing the risk of power disruptions that can affect homes, businesses, public facilities, traffic control systems, and emergency services.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no impact to the general fund.

22.2 Prepared By:

Curtis Busenhart
Engineering Associate
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

2. CONDITIONAL EASEMENT AGREEMENT.DOCX

22.3 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING A

CONDITIONAL EASEMENT AGREEMENT TO SANTA CRUZ SEASIDE COMPANY FOR

THE INSTALLATION OF AN ELECTRICAL SUB-STATION AT BEACH STREET WHEREAS, the Santa Cruz Seaside Company (“Boardwalk”) seeks to install and maintain an electrical infrastructure upgrade project (the “Project”) to support current and future operational needs at the Santa Cruz Beach Boardwalk; and
WHEREAS, the Boardwalk’s current electrical equipment is constrained by limited available space, insufficient for current operational demand, and is non-compliant with current safety and regulatory requirements; and
WHEREAS, as part of the Project, the Boardwalk will construct a new electrical substation enclosure to house electrical service equipment; and WHEREAS, the Boardwalk has identified a new site for the substation, that upon preliminary evaluation, appears to fall within the public right-of-way and therefore upon City of Santa Cruz property; and

WHEREAS, both the City and Boardwalk acknowledge that there is uncertainty and conflicting initial studies as to who owns land in the vicinity of the proposed substation, located in the vicinity of 400 Beach Street; and
WHEREAS, the parties agree that if the proposed substation location is within the public right-of-way, the Boardwalk requires an easement from the City to construct and operate the facility; and
WHEREAS, the parties agree that a conditional easement agreement is an appropriate placeholder providing the Boardwalk with the right to build the Project now, while providing conditional language for further determinates as to if the substation is located within the public right-of-way; and
WHEREAS, if the parties determine that the City owns the at-issue property for the electrical substation, it would be appropriate for the City to grant an easement for the Project pursuant to the terms of the conditional easement agreement, attached hereto as “Conditional Easement Agreement”; and
WHEREAS, the parties would then evaluate the fair market valuation of the easement and if approved by the City Council, the Boardwalk will pay for the easement and the easement will be recorded; and
WHEREAS, if the parties determine that the Boardwalk owns the at-issue property for the electrical substation, the easement is moot and no easement from the City required.

22.4 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows:

1. The City Council hereby approved the Conditional Easement Agreement, in the form attached hereto as Conditional Easement Agreement, with such changes as may be approved by the City Manager.

2. That if it is determined, after negotiations between the City and Boardwalk that the Boardwalk owns the underlying property interest for the electrical substation, that this Conditional Easement Agreement is voidable and shall not be recorded. However, if it is determined that the City owns the underlying property interest, the Parties will negotiate a fair market value for the easement, pursuant to the terms of the Conditional Easement Agreement and return to City Council for approval of the easement valuation. Only upon City Council approval of the valuation for the easement will the easement be recorded.

3. The City Council hereby authorizes the City Manager to execute the Conditional Easement Agreement and cause it to be recorded.

PASSED AND ADOPTED this 23rd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: ______________________________
Bonnie Bush, City Clerk Administrator

22.5 RECORDING REQUESTED BY:

CITY OF SANTA CRUZ
WHEN RECORDED RETURN TO:

CITY OF SANTA CRUZ
[ADDRESS]
Attn.: Director of Public Works
THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO GOV. CODE §27383 Accessor Parcel No. None

CONDITIONAL EASEMENT AGREEMENT
(Unrecorded Pending Ownership Confirmation)
THIS CONDITIONAL EASEMENT AGREEMENT (“Agreement”) is entered into as of , 2026 (the “Effective Date”) by and between the City of Santa Cruz, a California municipal corporation (“Grantor”) and the Santa Cruz Seaside Company, a California corporation (“Grantee”) (each is referred to individually as a “Party” and collectively, as the “Parties”).

RECITALS
A. Grantee is undertaking the construction and installation of certain electrical infrastructure improvements, including installing a new electrical infrastructure system along with a 2,404 square foot main substation enclosure designed to house two new transformers, associated switchgear, and additional electrical service equipment (the “Facility”), as further described and depicted in Exhibit A, attached hereto.

B. The Facility is proposed to be located, in whole or in part, on that certain property more particularly described in Exhibit B, attached hereto (the “Property”).

C. Each Party asserts title to the Property, and neither Party concedes the other's claim. Ownership of the Property has not been conclusively established, and the Parties acknowledge that title to the Property remains uncertain pending further investigation, survey, or other confirmation (“Ownership Determination”).

D. In order for Grantee to proceed with construction of the Facility while the Ownership Determination is pending, Grantor is willing to grant, and Grantee desires to accept, a conditional easement over the Property on the terms and conditions set forth herein.

E. The Parties intend that this Agreement shall remain unrecorded unless and until the Ownership Determination confirms that the Property is owned by Grantor, at which time this Agreement shall be recorded in the Official Records of the County of Santa Cruz, California, in accordance with the terms and conditions of this Agreement.

22.6 AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Grant of Conditional Easement. Subject to the terms and conditions of this Agreement, Grantor hereby grants to Grantee a non-exclusive easement over, under, along, and across the Property for the purpose of constructing, installing, operating, maintaining, repairing, replacing, and removing the Facility (“Easement”). The Easement granted herein is expressly conditioned upon confirmation that Grantor holds fee title to the Property, as more particularly set forth in the section titled "Alternative Ownership Scenarios," below. Grantee shall be entitled to enter the Property and to construct, install, operate, maintain, repair, replace, and remove the Facility pursuant to this Agreement and pursuant to Grantee's own claim of title to the Property. The authority granted by Grantor herein operates in the alternative, and shall vest only in the event the Ownership Determination confirms that Grantor holds fee title to the Property. Grantee's exercise of the rights provided herein shall not be construed as an acknowledgment of Grantor's title.

2. Authorization to Proceed with Construction. Notwithstanding the conditional nature of this Easement, and in recognition of the disputed nature of title to the Property and the Parties’ shared interest in allowing construction to proceed without prejudice to either Party’s position, Grantee is hereby authorized to commence and complete construction and installation of the Facility during the pendency of the Ownership Determination. This authorization is granted at Grantee’s sole risk with respect to any ownership uncertainty, subject to the protections and obligations set forth herein.

3. Authorization for Planning and Permit Applications. Grantor, in its capacity as the City of Santa Cruz, hereby authorizes Grantee to submit, and consents to act as record property owner solely for purposes of, applications for planning permits, design permits, coastal permits, slope permits, building permits, and any other regulatory approvals required by the City of Santa Cruz in connection with the Facility, and Grantor's designated representative shall countersign such applications as may be required by the City's planning processes. Grantor's countersignature on, or other administrative participation in, any such application shall not constitute an admission of ownership of the Property, an acknowledgment of Grantee's lack of title, or any waiver or estoppel; and the no-admission protections set forth in the section titled "No Admission; No Waiver; No Estoppel" apply with full force to any such countersignature or participation.

4. Permitted Uses of the Easement.
a. The Easement shall be limited to the following uses:
i. Construction, installation, and testing of the Facility, including but not limited to, applying and obtaining all licenses, permits, and approvals required for Grantee’s use of the Easement from all applicable governmental or regulatory agencies; ii. Operation, inspection, maintenance, repair, and replacement of the Facility; iii. Reasonable access to and from the Property for the foregoing purposes; and iv. To prevent any activity on or use of the Easement that is not reserved herein and is inconsistent with the purpose of this Easement.
b. Grantee shall exercise its rights under this Easement in a manner that minimizes interference with the Property and any adjacent public or privately owned property, and

22.7 shall restore the surface of the Property to a condition reasonably equivalent to its preconstruction condition upon completion of the construction of the Facility.

5. Prohibited Uses of the Easement. Except as provided herein, any activity on or use of the Easement that is inconsistent with the purpose of this Agreement is prohibited and may result in the termination of the Easement by Grantor, only. Without limiting the generality of the foregoing, the following uses by Grantee, its respective guests, agents, assigns, employees, representatives, successors, and third parties are expressly prohibited within the Easement:
a. Residential, commercial, retail, or industrial uses, except as otherwise specified herein; b. Any legal or de facto division, subdivision, or partitioning of Easement; c. Construction or placement of any structure that is not the Facility, including but not limited to wireless communication cell towers;
d. Dumping soil, trash, ashes, refuse, waste, bio solids, garbage, or any other material; e. Creation of any encumbrance superior to this Easement, or the recording of any involuntary lien (which is not released within thirty calendar days), or the granting of any lease, license or similar possessory interest in the Easement that Grantee determines, in its sole discretion, will affect Grantee’s uses of the Easement for the purposes of operating or maintaining the Facility; and
f. Any and all other activities and uses of the Easement that would adversely affect the realization of the purpose of this Easement.

6. Grantee’s Responsibilities. Grantee shall:
a. Obtain all requisite permits and approvals for Facility construction and operation, including any encroachment permits required for Grantee’s construction staging and access. b. Comply with all applicable federal, state, and local laws, regulations, and standards in constructing and operating the Facility in a good and workmanlike manner and through its qualified and properly licensed contractors.
c. Grantee agrees to furnish any and all required supervision, labor, equipment, material, and services, and will bear any and all other expense necessary or incidental to construction, operation, and maintenance of the Facility. Grantee shall not permit or suffer any mechanic’s or materialman’s liens of any kind or nature to be enforced against City property for any work done or materials furnished thereon related to construction, operation, or maintenance of the Facility.
d. Grantee agrees that it shall be the operator and owner of any and all utilities, pipelines, or facilities installed by or on behalf of Grantee within the Property. Grantee assumes all future responsibilities, liabilities, and costs associated with locating, field-marking, and identifying its facilities in responding to any locating request, including but not limited to those generated by the regional Underground Service Alert (USA/811) notification system. In no event shall Grantor be required to respond to, manage, or pay for utility locating requests related to Grantee’s Facility.
e. To the fullest extent permitted by law, Grantee agrees to indemnify, defend, and hold harmless Grantor, its employees, agents, successors and assigns, from and against any and all claims, demands, actions, damages, or judgments, and expenses, including attorneys’ fees and costs, arising from Grantee, its employees, agents, and consultants use of the Property, including but not limited to the construction, operation, and maintenance of the Facility, except to the extent such Claims are caused by the recklessness or willful misconduct of Grantor, Grantor’s employees, agents, successors, assigns, or invitees. This clause shall survive termination of this Agreement.

22.8 f. Maintain insurance coverage, including general liability insurance naming Grantor as an additional insured, including during any interim license for right of entry and before the recordation of this Easement, and during construction only, bonding, as further specified in Exhibit C, attached hereto and incorporated herein.

7. Site Access/Right of Entry and Site Conditions.
a. Grantor maintains its rights of entry to the Property, including access to the public right-ofway and other City facilities. b. Grantee shall at all times maintain safe and secure facilities on the Property. c. During construction of the Facility, the security and safety of the work area/site and construction materials and equipment will be Grantee’s sole responsibility. Grantee shall ensure that the work site is properly maintained in accordance with applicable legal and safety requirements, that all necessary barriers or signage to deter unauthorized entry and to protect the public are in place, such as notifying and protecting the public of any dangerous conditions on the Property related to the Work, installing a secure construction fence, security surveillance and patrol, and other reasonable measures as further may be requested by Grantor to protect public health and safety during the course of the work. d. At the completion of construction, Grantee shall remove any construction equipment and materials from the Easement area, as specified in Exhibit A and restore the Easement area to the condition it was in on the date and time of the beginning of construction, reasonable wear and tear excepted.
e. Be solely responsible for any damage to the Property or adjacent land caused by Grantee's activities on the Property, including but not limited to replacing or repairing any damage to the Property and public right-of-way. Any such repair or replacement shall be to the satisfaction, and subject to the reasonable approval, of the Grantor. f. Maintain the Easement area, as specified in Exhibit A in a clean and orderly condition, and perform regular maintenance within the Easement area. For any non-emergency maintenance or repair work to the Facility, Grantee shall provide notice to Grantor at least 10 business days in advance of the scheduled commencement of work detailing the scope of the intended work and scheduled duration of work, including start date. Such work shall not commence within the Easement area without the prior written approval of Grantor, which approval shall not be unreasonably withheld, conditioned, or delayed. Grantor shall respond to Grantee’s notice within 2 business days of receipt. The Parties agree to confer in good faith to resolve any of Grantor’s objections to the work and establish a mutually agreeable plan. In the event of an emergency (defined as an immediate threat to public health, safety, the environment, or a catastrophic failure of the Facility), Grantee may enter the Easement Area immediately without prior notice or approval to perform necessary emergency repairs. However, Grantee shall make a good faith effort to notify Grantor prior to entry or as soon as practicable thereafter, and limit emergency work strictly to that which is necessary to mitigate the immediate hazard. Grantee shall be responsible for all costs associated with the proper operation and maintenance of the Facility and will use best practices to construct, operate, and maintain the Facility.

8. Ownership Determination Process. The Parties agree to cooperate in good faith and with reasonable diligence to resolve the Ownership Determination, including by:
a. Conducting or commissioning a title search and reviewing available recorded documents; and
b. Obtaining a boundary survey or legal description confirmation if necessary.

22.9 Each Party shall bear its own costs in connection with the Ownership Determination, unless otherwise agreed in writing.

Nothing in this Section shall require either Party to initiate or participate in any quiet title action or other litigation. Nothing in this Agreement shall limit, expand, modify, waive, or otherwise affect either Party's rights, claims, defenses, or positions in any pending or future proceeding regarding the Property or any adjacent real property.

9. Alternative Ownership Scenarios. The Parties acknowledge the following possible outcomes of the Ownership Determination and agree to proceed accordingly:
a. Property Confirmed as Grantor-Owned. If the Ownership Determination confirms that the Property is owned by Grantor, this Agreement shall become unconditional, and the Parties shall promptly cause this Agreement to be recorded in the Official Records of Santa Cruz County, California, as set forth in Section 10.
b. Property Determined to be Owned by a Third Party. If the Ownership Determination reveals that the Property is owned by a party other than Grantor or Grantee, this Agreement shall be void and of no further force or effect as to the Property. In such event:
i. Grantee shall seek to obtain appropriate authorization from the confirmed owner; ii. Grantor shall have no liability to Grantee for loss of easement rights; and iii. The Parties shall cooperate to address any impacts to the Facility resulting from the ownership determination.
c. Property Confirmed as Grantee-Owned. If the Ownership Determination confirms that the Property is owned by Grantee, this Agreement shall be void ab initio and of no further force or effect as to the Property, with the same effect as if it had never been executed. Within thirty (30) days of the Ownership Determination, the Parties shall execute and deliver such instruments as are reasonably necessary to confirm the extinguishment of any color of right or claim arising under this Agreement, including a quitclaim from Grantor of any interest in the Property arising from this Agreement. If Grantor fails to execute and deliver such quitclaim within the thirty (30) day period following Grantee's written request, Grantee shall have the irrevocable right to record this Agreement together with the Ownership Determination as a Notice of Extinguishment in the Official Records of Santa Cruz County, which shall have the same force and effect as a recorded quitclaim of Grantor's claimed interest in the Property arising under this Agreement, as contemplated by California Civil Code section 885.010 et seq.
d. Ownership Remains Unresolved. If the Ownership Determination cannot be resolved within 12 months from the date of this Agreement, the Parties shall meet and confer in good faith to determine an appropriate course of action, which may include initiating a quiet title action or seeking alternative property rights.

10. Recording Condition.
a. The Parties agree that this Easement shall not be recorded in the Official Records of Santa Cruz County unless and until:
i. The Ownership Determination confirms that Grantor holds fee title to the Property; ii. The City Council of the City of Santa Cruz, as Grantor, approves the final easement terms and the Easement’s valuation, pursuant to Section 11. iii. Both parties execute a written Notice of Confirmation of Ownership and Authorization to Record ("Notice"), in a form mutually acceptable to the parties.

22.10 b. Upon execution of the Notice, either Party may record this Agreement and the Notice. Upon recordation, this Agreement shall constitute a permanent, binding easement running with the land and enforceable against Grantor's successors and assigns. c. If the City Council does not grant such approval within one hundred eighty (180) days of the Ownership Determination, this Agreement may be terminated by either Party upon written notice to the other Party. Upon termination, neither Party shall have any further right, remedy, or liability hereunder, including any claims for specific performance, restitution, or damages for reliance. Any ongoing valuation proceedings shall immediately cease and be deemed moot. Termination under this subsection shall be without prejudice to, and shall not waive, any right, claim, defense, or position either Party may have with respect to the Property or any adjacent real property arising independently of this Agreement.

11. Valuation.
a. The Parties acknowledge that the appropriate form and amount of consideration for this Easement depends in part on the outcome of the Ownership Determination (Section 8). b. Property Confirmed as City-Owned.
i. If the Ownership Determination confirms that the Property is owned by Grantor, the Parties shall, prior to recordation of this Agreement, negotiate in good faith to establish the fair market value for the Easement, as follows:

1. Appraiser Selection. After the Ownership Determination (Section 8), the Parties shall have 15 days to jointly select a mutually acceptable MAIdesignated appraiser licensed in the State of California with demonstrated experience appraising property in Santa Cruz, California. If the Parties fail to agree, each Party shall designate its own qualified appraiser within 15 days thereafter. Each Party shall bear the cost of its own appraiser; the cost of any jointly selected or third appraiser shall be shared equally.

2. Appraisal Standards. All appraisers shall be conducted in conformance with industry standards then in effect, apply all applicable valuation approaches, and include a highest and best use analysis. If there is no relevant comparable market, valuation may be determined by any method that is just and equitable. Each appraiser shall act as an independent professional and not advocate for any Party.

3. Timeline. Each appraiser shall deliver a complete written appraisal report within 45 days of engagement. The Parties may jointly extend this deadline in writing.

4. Dispute Resolution. If a single appraiser is jointly selected, that appraiser’s determination shall be final and binding. If two appraisers are designated and their values differ by 10% or less of the higher value, the fair market value of the Easement shall be the average of the two. If the values differ by more than 10%, the two appraisers shall jointly designate a third MAI appraiser within 15 days whose sole function shall be to select the one of the two appraised values that most closely reflects fair market value – which selection shall be final and binding on the Parties.

5. Timing. The Parties agree that payment of the fair market value shall be made before the Easement is recorded, pursuant to Section 10. ii. The Parties acknowledge that establishing fair market value prior to recordation is important to:

22.11 1. Comply with applicable California Government Code provisions governing the disposition of public property, including Government Code § 37350 and related provisions;

2. Avoid any characterization of the Easement as a below-market conveyance of public land that could trigger prevailing wage obligations under California Labor Code § 1720; and

3. Ensure the transaction is documented in a manner consistent with each party's obligations as a public agency.
c. Property Determined to be Privately Owned. If the Ownership Determination confirms that the Property is owned by a private party, this Agreement shall be void as to Grantor as set forth in Section 9(b), and no consideration shall be owed to Grantor. Grantee shall independently negotiate appropriate easement rights directly with the confirmed private owner. In such event:
i. The parties acknowledge that work performed by Grantee on privately owned land, without public agency funding or a public agency contract, is not anticipated to constitute a public work subject to prevailing wage requirements under California Labor Code § 1720; and
ii. Grantee shall satisfy itself, including through consultation with legal counsel or a DIR Public Works Coverage Determination if warranted, that prevailing wage obligations are properly assessed based on the confirmed ownership and funding structure.
d. Interim Period. During the pendency of the Ownership Determination, no consideration shall be due or payable by Grantee to Grantor solely by reason of this Agreement. The authorization to construct granted in Section 2 is provided as an interim measure in good faith and does not constitute a final determination of the value of any property interest. e. “Public Project” Acknowledgment. The Parties acknowledge that construction of the Facility may be considered a “public project”, as defined under Public Contract Code § 22002, depending in part on the outcome of the Ownership Determination; whether the Easement, if recorded, is conveyed at fair market value or at reduced or no consideration; and whether any public agency funding, land contribution, or other public benefit is associated with construction of the Project. If it is determined that it is a “public project”, Grantee shall be solely responsible for compliance, including all requirements applicable to preconstruction and postconstruction phases, and including but not limited to those applying to prevailing wages, DIR registration, and certified payroll records. and shall provide documentation reasonably requested by Grantor. In the event the construction of the Facility is deemed a “public project,” Grantee shall be solely responsible for any penalties and liabilities arising from any failure to comply with such Labor Code requirements, including but not limited to the penalties set forth in California Labor Code Sections 1775 and 1776. Grantee shall defend, indemnify, and hold harmless Grantor and its officers, directors, employees, and agents from and against any and all claims, actions, losses, damages, liabilities, costs, and expenses (including attorneys’ fees and costs) arising out of or relating to any failure by Grantee, its contractors, or subcontractors to comply with the California Labor Code requirements set forth herein. In the event the Ownership Determination confirms that the Property is owned by Grantee, Grantor shall not assert that the Facility or its construction constitutes a “public project” or “public work” subject to prevailing wage requirements by reason of this Agreement or any matter set forth herein. f. Cooperation. The parties agree to cooperate in good faith to structure the transaction, including the easement consideration, in a manner consistent with applicable law. Nothing

22.12 in this Agreement shall be construed as a determination that prevailing wages are or are not required for the Project. Grantee is solely responsible for assessing and complying with any applicable prevailing wage obligations.

12. Termination.
a. This Agreement shall terminate upon the earliest of the following:
i. Written agreement of both parties to terminate;
ii. Grantee’s failure to comply with the material terms of the Easement, including but not limited to engaging in the prohibited activities set forth in Section 5, above, or failing to maintain the requisite insurance, which failure continues for thirty (30) days for non-monetary failures and sixty (60) days for material failures after Grantor’s written notice specifying the failure with reasonable particularity; iii. A determination under Section 9(b) that the Property is owned by a third party; or iv. Recordation of this Agreement pursuant to Section 10, at which point the easement shall become permanent and this conditional framework shall no longer apply. b. Solely in the event the Ownership Determination confirms that Grantor holds fee title to the Property, Grantee acknowledges that Grantor is a public agency and that the Easement area remains subject to the Grantor’s right to use the Property for public purposes. If the Grantor determines that the Easement area is needed for a public project, Grantor may terminate this Easement by providing eighteen (18) months’ advance written notice to Grantee. In the event of such termination, Grantor shall cooperate with Grantee in good faith to identify an alternative, mutually agreeable location for a replacement easement.

The cost of relocating Grantee’s Facility shall be borne by Grantee. The Parties agree to equally share the cost of recording a new easement. Any such replacement easement shall be granted to Grantee without additional consideration or valuation, if Grantee has previously paid fair market value for the original Easement pursuant to the section titled “Valuation.” Nothing in this Section 12(b) shall vest in Grantor, or be construed as Grantee's acknowledgment of, any right to use the Property for public purposes, to terminate this Agreement, or to require relocation of the Facility, during the pendency of the Ownership Determination or in the event the Ownership Determination confirms that the Property is owned by Grantee or by a third party.
c. If the Agreement terminates before recordation, Grantee must, at Grantor’s election, (a) remove the Facility and all related improvements installed by Grantee and restore the Property to a condition reasonably acceptable to Grantor, or (b) secure and leave improvements in place pending further direction. Grantee shall complete such work within the time specified by Grantor. This obligation shall survive termination of this Agreement.

13. Warranty. Neither Party makes any representation or warranty as to title, boundaries, or the right to grant the Easement until ownership is confirmed pursuant to the section titled "Alternative Ownership Scenarios." The Parties agree that no rights arise hereunder by implication, estoppel, necessity, prior use or otherwise. The Parties further agree that no public dedication is intended by this Easement. Neither Party is estopped, by reason of this Agreement, from asserting any position regarding title, boundaries, or related rights.

14. No Admission; No Waiver; No Estoppel. Neither Party’s execution, acceptance, delivery, performance, or recordation of this Agreement, and no statement or recital contained herein, shall constitute or be deemed or construed as: (i) an admission by either Party as to the location of any boundary line between the Property and any adjacent real property; (ii) an admission by either

22.13 Party as to the ownership of, or the existence, scope, or location of any easement, right-of-way, or other interest in, the Property or any adjacent real property; (iii) an admission that either Party’s prior, current, or future use of the Property or any adjacent real property is or has been permissive rather than as-of-right; or (iv) a waiver of any right, claim, defense, or position that either Party may now or hereafter have with respect to the Property or any adjacent real property. Neither Party shall be estopped by reason of this Agreement from asserting any position regarding any of the foregoing in any pending or future proceeding. The Parties enter this Agreement without prejudice to either’s respective claims, rights, defenses, and positions.

15. Assignment. Prior to recordation, this Agreement shall not be assigned without first obtaining the express written consent of the non-assigning party. Any purported assignment without the express written consent of the non-assigning Party shall be void.

16. Amendments. This Agreement may only be amended by a written instrument signed by both Parties that expressly identifies and amends this Agreement. No amendment shall be effective until approved by the Party’s authorized representative.

17. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any dispute arising hereunder shall be resolved in the courts of Santa Cruz County, California.

18. Authority. Each Party represents and warrants that it has full legal authority to enter into this Agreement and that the person executing this Agreement on its behalf is duly authorized to do so.

19. Entire Agreement; Amendment. This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements. This Agreement may be amended only by a written instrument signed by both parties.

Signature page to follow

22.14 IN WITNESS WHEREOF, the parties have executed this Agreement, effective as of , 2026.

GRANTOR: CITY OF SANTA CRUZ
By:

Name:

Title:

Date:

GRANTEE: SANTA CRUZ SEASIDE COMPANY
By:

Name:

Title:

Date:

APPROVED AS TO FORM
Office of the City Attorney

22.15 ACKNOWLEDGMENT
State of California )
County of _____________________ )
On ______________________ before me, ___________________________________________, (insert name and title of the officer)
personally appeared ____________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

22.16 EXHIBIT A
Description, Depiction of Proposed Facility

22.17 EXHIBIT B
Legal Description of Easement Area
See attached.

22.18 EXHIBIT C
Insurance and Bond Requirements
Grantee shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Grantee, its agents, representatives, employees, contractors, or subcontractors.

A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
● Certificate(s) will show current policy number(s) and effective dates, ● Coverage and policy limits will meet, or exceed, requirements below, o The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Avenue, Suite 290, Santa Cruz, CA 95060,
o Certificate will be signed by an authorized representative, o An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
o Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Grantee acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Grantee maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Grantee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

Coverage will procure and maintain insurance coverage and surety bonds during the term of the Easement at least as broad as:
● COMMERCIAL GENERAL LIABILITY (CGL): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $2 Million per occurrence including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL.
 “ALL RISK” PROPERTY INSURANCE COVERAGE: GRANTEE SHALL, AT GRANTEE’S SOLE EXPENSE, OBTAIN

AND KEEP IN FULL FORCE AND EFFECT AN INSURANCE POLICY COVERING THE FACILITY AND ALL RELATED

IMPROVEMENTS INSTALLED BY OR ON BEHALF OF GRANTEE WITHIN THE PROPERTY IN AN AMOUNT SUFFICIENT TO COVER NOT LESS THAN ONE HUNDRED PERCENT (100%) OF THE REPLACEMENT VALUE THEREOF, PROVIDING PROTECTION AGAINST PERILS CUSTOMARILY INCLUDED WITHIN "SPECIAL FORM" OR "ALL RISK" PROPERTY INSURANCE POLICIES, INCLUDING ENDORSEMENTS FOR VANDALISM AND MALICIOUS MISCHIEF. GRANTEE SHALL BE SOLELY RESPONSIBLE FOR ANY UNINSURED LOSS OR DAMAGE TO THE FACILITY AND GRANTEE'S RELATED IMPROVEMENTS LOCATED WITHIN THE PROPERTY FOR ANY REASON. ● AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Grantee has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
● WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Grantee and its employees.

22.19 ● CONTRACTORS’ POLLUTION LIABILITY AND/OR ASBESTOS POLLUTION LIABILITY (CPL):

Grantee’s contractor for construction of the Facility shall maintain a CPL policy with limits no less than $2,000,000 per occurrence or claim, and $4,000,000 policy aggregate. a. If the project involve lead-based paint or asbestos identification / remediation, the Pollution Liability shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification / remediation, the Pollution Liability shall not contain a mold exclusion and the definition of “Pollution” shall include microbial matter including mold. b. The Automobile Liability policy shall be endorsed to include Transportation Pollution Liability insurance, covering hazardous materials to be transported by Contractor pursuant to the Contract. This coverage may also be provided on the Contractors Pollution Liability policy.
 Grantee’s contractor for construction of the Facility shall maintain BUILDER’S RISK (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. Such coverage shall name City as a loss payee.

C. BOND REQUIREMENTS
 Grantee’s Contractor during construction of the Facility shall provide a Labor and Material (Payment) Bond in a sum equal to the contract price, unless otherwise approved by City.  Grantee’s Contractor during construction of the Facility shall provide a Performance Bond in a sum equal to the contract price, unless otherwise approved by City. If the Performance Bond provides for a one-year warranty, a separate Maintenance Bond is not necessary.  If the warranty period specified in the contract is for longer than one year, a Maintenance Bond equal to 10% of the contract price is required.
 Bond(s) shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California. Bonds must also be notarized by both Contractor and Surety.

D. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
● ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL, professional liability, and automobile insurance policies with respect to liability arising out of work or operations performed by or on behalf of Grantee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage will be provided in the form of an endorsement to Grantee’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10 CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
● PRIMARY COVERAGE
For any claims related to this Agreement, Grantee’s insurance coverage will be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Grantee’s insurance and will not contribute with it. ● NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
● WAIVER OF SUBROGATION

22.20 Grantee hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Grantee may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
● EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Grantee may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Grantee’s primary and excess liability policies are exhausted. ● SELF-INSURED RETENTIONS
Self-insured retentions must be declared to and approved by the City. City may require Grantee to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. ● ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-:VII, unless otherwise acceptable to the City.
● CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Grantee must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. ● VERIFICATION OF COVERAGE
Grantee will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL, CPL, and automobile Policies listing all policy endorsements to be approved by the City before work commences.

However, failure to obtain the required documents prior to the work beginning will not waive the Grantee’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

E. CONTRACTORS/SUBCONTRACTORS
Grantee shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Grantee shall ensure that City is an additional insured on insurance required from subcontractors. Grantee shall require their contractors/subcontractors furnish separate certificates and endorsements for work related to the Facilities.

F. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Grantee.

22.21 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Public Works
SUBJECT: Wastewater Collections Division Lease Agreement - 195 Harvey West Boulevard (PW)
Location: Citywide
RECOMMENDATION: Motion authorizing and directing the City Manager to execute a lease agreement, in a form approved by the City Attorney, and any amendments or documents necessary thereto of a non-substantive nature, with J3D Family Limited Partnership and Harvey West Mainini, LLC, collectively as landlord, for real property located at 195 Harvey West Boulevard.

BACKGROUND: The City of Santa Cruz (City) Wastewater Collection Division of the Department of Public Works operates and maintains the Santa Cruz Sanitary Sewer System as regulated by the State Water Resources Control Board Order WQ 2022-0103-DWQ. The full title of the Order is “Statewide Waste Discharge Requirements General Order for Sanitary Sewer Systems”.

The Collection Division consists of 15 FTE positions that operate a large fleet of industrial construction and maintenance equipment. Work of the division largely takes place in the field as the sewer collection system consists of the sewer pipes and appurtenances located throughout the City streets and rights of way. The field location of work contrasts with other divisions housed at the Wastewater Treatment Facility whose work is located at the treatment facility.

DISCUSSION: The Collection Division is currently housed at the Regional Wastewater Treatment Facility (WWTF) in a building that needs to be repurposed to accommodate the Wastewater Treatment Facility Energy and Electrical Resiliency (WEER) Project. The WEER project will demolish the WWTF Maintenance building in order to construct a new electrical main service entrance building. To accommodate this, the WWTF Maintenance Division will move into the building vacated by the Collection Division.

The Wastewater Collection Division investigated several properties throughout the City that would be suitable for office work, field work, a maintenance shop and secure parking. J3D Family Limited Partnership and Harvey West Mainini, LLC own an approximately 7,100 square foot office/warehouse building at 195 Harvey West Boulevard with an approximately 24,800 square foot fenced parking lot. The premises were determined to be the most affordable and most

23.1 suitable for the needs of the Collection Division. The only required Tenant Improvements are an assessment of the paving condition of the parking lot and recommended paving repairs.

Staff have negotiated terms of the new lease to include:

Size: Approximately 49,585 SF parcel, including an approximately 7,100 SF building and 24,800 SF fenced parking lot.

Use: Office, shop and fleet parking for the Wastewater Collection Division Term: 10 years with option to renew for additional 5-year term at market value Base Rent: $12,974 monthly / $155,688 annually (w/ annual CPI Increase) Triple Net Fees: Approximately $2,526 monthly / $30,312 annually CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The approval of the Lease Agreement is not a “project” under CEQA. No direct or reasonably foreseeable indirect physical change in the environment is contemplated.

HEALTH IN ALL POLICIES (HiAP): This project aligns with the City's HIAP goals of Healthy Environments. Proper operation and maintenance of the sanitary sewer collection system protects public and environmental health by safely confining and conveying sewage to the Wastewater Treatment Facility in compliance with the federal Clean Water Act, the California Water Code, and all regulatory standards.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: Funds are available from the Wastewater Enterprise Fund (Fund 721) FY 2026 operating budget for this plan. There is no impact to the General Fund.

Prepared By:

Anne Hogan
Wastewater System Manager
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. COMMERCIAL LEASE AGREEMENT.PDF

23.2 i

COMMERCIAL LEASE AGREEMENT
between
J3D FAMILY LIMITED PARTNERSHIP, a California limited partnership and
HARVEY WEST MAININI, LLC, a California limited liability company collectively, as
Landlord
and
THE CITY OF SANTA CRUZ, a California municipal corporation as
Tenant
195 Harvey West Blvd.

Santa Cruz, California 95060

23.3 23.4
1 SALIENT LEASE TERMS
(1) Date: This Lease is dated for reference purposes only this _____ day of June 2026 (the “Effective Date”).
(2) Parties and Notice Addresses:
(a) Landlord: J3D Family Limited Partnership, a California limited partnership Harvey West Mainini, LLC, a California limited liability company 225 Pamela Drive, STE. OFC.

Mountain View, California 94040
With copy to:

Miller, Morton, Caillat & Nevis, LLP
2077 Gateway Place, Suite 220
San Jose, California 95110
Attention: Daniel J. Nevis
Telephone: (408) 292-1765
(b) Tenant: The City of Santa Cruz, a California municipal corporation

Addresses for Service (in addition to the Premises):

City of Santa Cruz, Public Works Administration
809 Center Street, Room 201
Santa Cruz, CA 95060
Attention: Christina Alberti

(3) Premises and License Area: That certain parcel of land depicted in Exhibit “A”, comprised of a freestanding commercial building (the “Building”) consisting of approximately 7,100 square feet, a back lot (“Back Lot”) consisting of approximately 24,800 square feet, and parking areas located on northeast corner of parcel and landscaping (collectively, the “Premises Parking Areas”) and parking area located on southeast corner of parcel (the “License Area”). The Building, the Back Lot and the Premises Parking Areas are collectively the “Premises”. (a) Premises Address: 195 Harvey West Blvd., Santa Cruz, California 95060 (b) Sq. Ft. Approximately for Premises: 7,100 sq. ft. of improvements plus an approximately 24,800 sq. ft. Back Lot.
(c) Condition of Premises on Delivery: Landlord shall deliver the Premises in its current “AS IS” and “WHERE IS” condition and makes no representations or warranties concerning the condition of the Premises. Tenant’s acceptance of the Premises in its “AS IS” and “WHERE IS” condition is conditioned on Tenant’s

23.5 2
written acceptance of Landlord’s Work prior to the Commencement Date, as defined below and in Exhibit “B.”
(4) Permitted Uses: Tenant shall use the Premises during the Lease Term for the purpose of general office use and equipment and storage supplies and for shop work. (5) Term:
(a) Duration: One hundred and twenty (120) months.
(b) Commencement Date: The Commencement Date of the Lease Term shall be July 1, 2026.
(c) Delivery Date: The Commencement Date of the Lease; provided that Tenant has provided satisfactory evidence of insurance and has paid the Security Deposit as described in Item 8, below.
(d) Expiration Date: The last day of the 120th month of the Lease Term. (6) Base Rent:
(a) Minimum Monthly Rent:

Months: Monthly Rent:
1-12 $12,974.00 Monthly Base Rent plus NNN
On each anniversary of the Commencement Date, the Monthly Base Rent for the following twelve (12) months of the Lease Term shall be adjusted by multiplying the Monthly Base Rent for the immediately preceding month by the then-most recently published Consumer Price Index (CPI) for the San Francisco-OaklandSan Jose area and adding such amount to the Monthly Base Rent charged in the immediately preceding month. In no event shall the new Monthly Base Rent for any 12-month period be less than the Monthly Base Rent charged in the immediately preceding month.
(b) Additional Rent. In addition to Monthly Base Rent, Tenant shall pay to Landlord, or pay directly to third parties as instructed by Landlord, on a monthly basis the Triple Net Expenses defined below.
(7) Options to Renew: Tenant shall have one (1) option to renew the Lease Term, for a period of sixty (60) months (the “Option Term”). The monthly Base Rent for the first twelve (12) months of the Option Term shall be the greater of: (i) the then-applicable fair market rent (“FMR”); or (ii) the Monthly Base Rent for the immediately preceding month, adjusted by multiplying said amount by the then-most recently published CPI for the San Francisco-Oakland-San Jose area and adding such amount to the Monthly Base Rent charged in the immediately preceding month. For each subsequent twelve (12)

23.6 3
month period of the Option Term, the monthly Base Rent shall increase by the mostrecently published CPI for the San Francisco-Oakland-San Jose area. (8) Security Deposit: $15,200, payable on execution of the Lease. (9) Triple Net Expenses:
(a) NNN expenses shall include a management fee equal to four percent (4%) of Landlord’s total, annual expenses incurred in the ownership and operation of the Premises, it being understood that all other costs associated with Tenant’s occupation and use of the Premises, including all real property taxes, insurance premiums, maintenance, repair and replacement expenses, utilities, trash, sewer, cable, landscaping, paving, water, internet, phones and other items of expense, shall be paid directly by Tenant during the term of the Lease. (b) Landlord estimates that the monthly NNN expenses for the first year of the Lease Term shall be $900.00 per month which shall be due and payable with the Monthly Base Rent. Landlord may adjust the estimated monthly NNN expenses on an annual basis concurrently with the adjustment to the Monthly Base Rent.

Landlord shall provide Tenant with thirty (30) days prior written notice of such adjustment.
(c) Upon each anniversary of the Commencement Date of the Lease Term Landlord will reconcile the total amount paid by Tenant with total annual NNN expenses incurred by Landlord and shall provide Tenant with a statement with the breakdown of said expenses. If such reconciliation reveals an overpayment by Tenant, Landlord shall provide a payment or credit to Tenant of the overpaid amount. If such reconciliation reveals an underpayment by Tenant, Landlord shall invoice Tenant for the underpaid amount.
(d) Upon Tenant’s written request, Landlord shall provide Tenant with reasonable supporting documentation of NNN expenses for the previous year. (10) Brokers/Commissions: Landlord and Tenant hereby represent and warrant to each other that neither has retained any broker or agent with respect to this Lease and that there are no claims for brokers’ commissions or finders’ fees in connection with the execution of this Lease. Landlord and Tenant agree to indemnify and save the other harmless from any liability that may arise from such claims, including reasonable attorneys’ fees. (11) Tenant Improvement Allowance: None.
(12) Civil Code Section 1938 Notice/CASp Report:

Landlord hereby discloses to Tenant that the Real Property that the Premises have not undergone inspection by a Certified Access Specialist and the Premises have not been issued a disability access inspection certificate. Accordingly, in compliance with the provisions of California Civil Code Section 1938(e), the Landlord provides the following notice to Tenant:

23.7 4
"A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of constructionrelated accessibility standards within the premises”.

Tenant shall be solely financially responsible for and shall indemnify and hold Landlord harmless from and against, any and all liability, claims, loss, damages, costs, and fees resulting from or related to any alleged or actual conditions within the Premises that do not adhere to applicable construction-related accessibility standards under applicable California and Federal law.
(13) Landlord Work: Prior to the Commencement Date, Landlord shall perform and complete work in the Premises as described in Exhibit “B” (“Landlord’s Work”). Tenant shall have the opportunity to inspect and approve Landlord’s Work prior to the Commencement Date. Such approval shall not be unreasonably withheld by Tenant.

THE ABOVE TERMS ARE INCORPORATED INTO THIS LEASE AS INDICATED ABOVE AND REFERENCED HEREIN.

Landlord
J3D FAMILY LIMITED PARTNERSHIP,
a California limited partnership
By: _______________________________
Douglas L. Michels, as Trustee of the
DLM Living Trust, its General Partner

HARVEY WEST MAININI, LLC,
a California limited liability company
Tenant

THE CITY OF SANTA CRUZ,
a California municipal corporation
By: ___________________________
Matt Huffaker, City Manager
Approved as to Form

23.8 5
By: ______________________________
Kerry Mainini, Managing Member
By: ____________________________
Office of the City Attorney

23.9 6

COMMERCIAL LEASE
THIS LEASE (the “Lease”), dated, for reference purposes only, as of the ____ day of June 2026, is made and entered into by and between J3D Family Limited Partnership, a California limited partnership and Harvey West Mainini, LLC, a California limited liability company (hereinafter collectively referred to as "Landlord"); and The City of Santa Cruz, a California municipal corporation (hereinafter referred to as "Tenant"); who agree as follows:
(1) Agreement to Lease: In consideration of the agreements and covenants contained in this Lease to be kept and performed by both Landlord and Tenant, Landlord leases to Tenant and Tenant leases from Landlord the Premises described in Paragraph (2) of this Lease. The Salient Lease Terms are incorporated into and made a part of this Lease. (2) Premises: “Premises” means the entirety of the land and all improvements situated thereon as more-particularly described in Item 3 of the Salient Lease Terms (hereinafter referred to as the “Premises”).
(3) Term: The term (“Term” or “Lease Term”) of this Lease shall be for the period stated in Item 5(a) of the Salient Lease Terms. The term shall commence on the commencement date (the “Commencement Date”) stated in Item 5(b) of the Salient Lease Terms, and terminating on the “Expiration Date” stated in Item 5(d) of the Salient Lease Terms; PROVIDED HOWEVER, that if the Commencement Date falls on a day other than the first day of the month, the period between the Commencement Date and the first day of the first calendar month in the term shall be added to the period stated in Item 5(a) of the Salient Lease Terms.
(a) Delivery of Possession: Landlord estimates that the Delivery Date (as defined in the Salient Lease Terms) will be the Commencement Date. (b) Options: Tenant is granted the option to extend this Lease as provided in Item 7 of the Salient Lease Terms. The following provisions shall apply to such option:
(i) Definition/Rent During Option Period. “Option” shall mean the right to extend the term of or renew this Lease for the period set forth in Item 7 of the Salient Lease Terms. The Monthly Base Rent for the Option terms shall be set in accordance with Item 7 of the Salient Lease Terms. (ii) Effect of Default on Option. Tenant shall have no right to exercise the Option: (A) during the period commencing with the giving of any notice of Default and continuing until said Default is cured; (B) during the period of time any rent is unpaid and delinquent (without regard to whether notice thereof is given to Tenant), or (C) Tenant has closed or otherwise ceased operations at the Premises (other than due to force majeure). (iii) Exercise of Option. Tenant may only exercise its Option by giving written notice to Landlord of Tenant’s election to extend, provided that

23.10 7
such notice must be given no less than six (6) months and no more than twelve (12) months prior to the expiration of the original Lease term. (iv) Option Personal to Tenant. The Option granted to Tenant hereunder is personal to Tenant. Other than a Permitted Transfer, any assignment of this Lease or sublease of all or any portion of the Premises shall nullify Tenant’s right to exercise the Option.
(4) Rent and Other Charges: Tenant agrees to pay, as rental for the use and occupancy of the Premises, at the times and in the manner provided herein, the following sums of money:
(a) Minimum Monthly Rent: Tenant shall pay to Landlord, the minimum monthly rent provided in Item 6(a) of the Salient Lease Terms, without deduction, setoff, prior notice or demand, payable monthly in advance on the first (1st) day of each month, commencing on the Commencement Date, and continuing during the term of this Lease. If the Commencement Date falls on a day other than the first day of the month, the monthly installment of minimum monthly rent for such months shall be adjusted on a per diem basis calculated on a thirty (30) day month.

Minimum monthly rent for the first (1st) month shall be paid upon execution of this Lease Agreement. All rent shall be paid to Landlord at the address to which notices to Landlord are given, or ACH or electronic payments as specified by Landlord in writing.
(b) Additional Rent: Tenant shall pay, as additional rent, all sums of money required to be paid pursuant to the terms of Paragraphs (6)(b) (Real Property Taxes), and (12) (Insurance Premiums) and Landlord’s management fee of 4% (collectively “Additional Rent”). If such amounts or charges are not paid at the time provided in this Lease Agreement, they shall, nevertheless, be collectible as additional rent with the next installment of minimum monthly rental thereafter falling due; however, nothing herein contained shall be deemed to suspend or delay the payment of any amount of money or charge at the time the same becomes due and payable hereunder or limit any other remedy of Landlord. (c) Rent Payable During Option Term. The minimum monthly rent for the First Option Term shall be as set forth in Item 7 of the Salient Lease Terms. The FMR (as hereinafter defined) shall be established pursuant to the following provisions of this Section 4(c):
(i) Within thirty (30) days following receipt of Tenant's Option Notice for the Option Term (“Meet and Confer Period”), Landlord and Tenant shall meet and confer in good faith to determine the then FMR. (ii) If the parties are unable to reach an agreement on FMR within the Meet and Confer Period, each of the parties shall select a real estate broker to assist such party in establishing the FMR and reaching agreement on setting the minimum monthly rent for the Option Term. Each such real

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estate broker so selected shall have had at least ten (10) years' experience as a real estate broker leasing commercial property in Santa Cruz County, California, with working knowledge of current rental rates and practices. (iii) Each party shall within twenty (20) days after the expiration of the Meet and Confer Period, notify the other party of the name and address of the broker selected. Within ten (10) days following such selection and notice, Landlord's and Tenant's brokers shall each simultaneously submit to the other, in a sealed envelope, its good faith estimate of the then FMR for the Option Term (collectively referred to as the "Estimates"). If the higher of such Estimates is not more than one hundred ten percent (110%) of the lower of such Estimates, then the minimum monthly rent for the Option Term shall be the average of the two Estimates. If the minimum monthly rent is not resolved by the exchange of Estimates, then, within fourteen (14) days after the exchange of Estimates, Landlord and Tenant’s brokers shall select a third real estate broker meeting the aforementioned criteria.

Once the third broker (the "Arbitrator") has been selected as provided for above, then, as soon thereafter as practicable but in any case within fourteen (14) days, the Arbitrator shall select which of the two (2) Estimates most closely reflects the then FMR and such Estimate shall be binding on both Landlord and Tenant, provided that the Santa Cruz City Council has accepted the Estimate as provided for in Section 4(e) below. (iv) The parties shall share equally in the costs of the Arbitrator. Any fees of any broker or any appraiser, counsel or experts engaged directly by Landlord or Tenant, however, shall be borne by the party retaining such appraiser, counsel or expert. Notwithstanding the foregoing, the parties may agree to have an appraiser with an MAI designation serve as the Arbitrator, in lieu of a broker.
(v) If the minimum monthly rent for the Option Term has not been determined by the commencement date of the Option Term, Tenant shall pay the minimum monthly rent charged during the last 12 months of the initial Term until such time as the minimum monthly rent for the Option Term has been determined. Upon such determination, the minimum monthly rent for the Premises shall be retroactively adjusted to the commencement of the Option Term and Tenant shall pay Landlord the amount of such underpayment within thirty (30) days after the determination thereof. (vi) For purposes hereof, "FMR" shall mean the arm's length fair market monthly or annual rental rate per rentable square foot under new and renewal leases and amendments (other than renewal amendments with rental rates not based on 100% of the then applicable fair market rental rates) with terms commencing on or about the date on which the FMR is being determined hereunder, for tenants of comparable creditworthiness to the Tenant, for space comparable to the Premises in buildings comparable to the Building in the Santa Cruz geographical location. The

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determination of FMR shall take into account any material economic differences between the terms of the Lease and any comparison lease or amendment, such as rent abatements, construction costs, leasing commissions, and other concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes, as well as the level of improvements existing in the Premises; provided, however, that the FMR shall not be set at a figure below the amount of the minimum monthly rent paid by Tenant during the last month of the Lease term immediately preceding the commencement of the Option Term, plus an amount equal to the minimum monthly rent multiplied by the CPI.
(d) If Tenant is entitled to and properly exercises the Option, as provided above, Landlord shall prepare an amendment (the "Renewal Amendment") to reflect changes in the minimum monthly rent, termination date and other appropriate terms. Tenant shall execute and return the Renewal Amendment to Landlord within ten (10) business days after the Santa Cruz City Council’s acceptance of the Renewal Amendment terms.
(e) City’s acceptance of the FMR or other amount established as Base Rent for the Option Term and proposed Renewal Amendment terms shall be conditioned on approval of the City of Santa Cruz City Council. Should the City of Santa Cruz City Council not accept the adjusted Base Rent for the Option Term and proposed Renewal Amendment terms, City’s Option shall terminate and the Lease shall terminate at the end of the original Lease term or fifteen (15) days from the Santa Cruz City Council’s determination, whichever is later. Tenant shall pay the minimum monthly rent charged during the last 12 months of the initial Term until such termination.
(5) License: Landlord hereby grants to Tenant for the duration of this Lease a non-exclusive License (the “License”) to use the License Area more-particularly described in Item 3 of the Salient Lease Terms and Exhibit A for the purpose of providing parking to City employees. The License shall only terminate upon termination or expiration of this Lease or by mutual written agreement of Landlord and Tenant.
(6) Taxes; Assessments:
(a) Personal Property Taxes: Tenant shall pay before delinquency all taxes, assessments, license fees, and other charges ("taxes") that are levied and assessed against Tenant’s trade fixtures, leasehold improvements, merchandise and other personal property installed or located in or on the Premises, and that become payable during the term. Tenant shall furnish Landlord with satisfactory evidence of these payments.

If any taxes on Tenant’s trade fixtures, leasehold improvements, merchandise and other personal property are levied against Landlord or Landlord’s property, or if the assessed value of the Premises is increased by the inclusion of a value placed

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on Tenant’s personal property, and if Landlord pays the taxes on any of these items or the taxes based on the increased assessment of these items, Tenant, on Landlord’s written demand, shall immediately reimburse Landlord for the sum of the taxes levied against Landlord, or the proportion of the taxes resulting from the increase in Landlord’s assessment. Landlord shall have the right to pay these taxes regardless of the validity of the levy, however, such to be made without prejudice to Tenant’s right to challenge levy and receive rebate if successful. (b) Real Property Taxes: Tenant shall pay, as part of its Additional Rent obligation to Landlord, all real property taxes and general and special assessments ("real property taxes"), levied and assessed against the land and improvements constituting the Premises.

Each calendar year of the term Tenant shall pay directly to the County Assessor the real property taxes and any supplemental or additional real property charges, or additional real property tax bill as part of its Additional Rent reimbursement when due. Tenant shall furnish Landlord with satisfactory evidence of these payments within twenty (20) days of payment to the County.

Tenant’s liability to pay real property taxes shall be prorated on the basis of a 365-day year to account for any fractional portion of a fiscal tax year included in the term at its commencement and expiration.
(c) Substitute Taxes: Notwithstanding anything to the contrary herein, Tenant shall not be required to pay any municipal, county, state, or federal income or franchise taxes of Landlord. If at any time during the term the laws concerning the methods of real property taxation prevailing at the commencement of the term are changed so that a tax or excise on rents or any other such tax, however described, is levied or assessed against Landlord as a direct substitution in whole or in part for any real property taxes, Tenant shall pay before delinquency the substitute tax or excise on rents. Tenant’s share of any tax or excise on rent shall be substantially the same as, and a substitute for, the payment of such real property taxes as provided in this Lease.
(7) Permitted Business Use: Tenant shall use the Premises for the purpose and use set forth in Item 4 of the Salient Lease Terms, and for no other use without Landlord’s prior written consent.
(a) Hazardous Substances.
(i) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation or release, either by itself or in combination with other materials expected to be on the Premises is either (A) potentially injurious to the public health, safety or welfare, the environment, or the Premises; (B) regulated or monitored by any governmental authority; or (C) a basis for potential liability of

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Landlord to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to petroleum, gasoline, and/or crude oil or any products, byproducts or fractions thereof. Tenant shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express, prior written consent of Landlord and timely compliance (at Tenant’s expense) with all Applicable Laws (as the term is defined in Paragraph (7)(b) below). “Reportable Use” shall mean (A) the installation or use of any above or below ground storage tank; (B) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority; and/or (C) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Laws requires that a notice be given to persons entering or occupying the Premises or neighboring properties.
(ii) Duty to Inform Landlord. If Tenant knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Landlord, Tenant shall immediately give written notice of such fact to Landlord and provide Landlord with a copy of any report, notice, claim, or other documentation which it has concerning the presence of such Hazardous Substance.
(iii) Tenant Remediation. Tenant shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about the Premises, including through the plumbing or sanitary sewer systems and shall promptly, at Tenant’s expense, comply with all Applicable Laws and take all investigatory, removal, and remedial action reasonably recommended, whether or not formally required or ordered, for the cleanup of any contamination of the Premises, and for the maintenance, security and monitoring of the Premises and neighboring properties, that was caused or materially contributed to by Tenant, or pertaining to or involving any Hazardous Substance brought to the Premises during the term of this Lease, by or for Tenant, or its agents, employees, contractors, subtenants, or invitees. Upon the expiration or earlier termination of this Lease, Tenant shall, at its sole cost and expense, remove all Hazardous Substances from the Premises and restore the Premises due to any spill, release, or contamination caused by Tenant or its agents, employees, contractors, subtenants, or invitees during the term of the Lease or during the term of any prior occupancy of the Premises by the Tenant, including during the term of any sublease under which Tenant occupied and operated the Premises.
(iv) Indemnification. Tenant shall indemnify, defend and hold Landlord and its agents, employees, and lenders harmless from and against any and all

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loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Tenant, or its agents, employees, contractors, subtenants, or invitees (provided, however, that Tenant shall have no liability under this Lease with respect to any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Tenant). Tenant’s obligations shall include, but not be limited to, the effects of any contamination or injury to person, property, or the environment created or suffered by Tenant, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.

No termination, cancellation, or release agreement entered into by Landlord and Tenant shall release Tenant from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Landlord in writing at the time of such agreement. This indemnity obligation does not apply to Tenant where the loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance, are caused by the sole negligence or willful misconduct of Landlord, employees, agents or contractors, or others under Landlord’s control or authority.
(b) Compliance with Applicable Laws. Except as otherwise provided in this Lease, Tenant shall, at Tenant’s sole expense, fully, diligently, and in a timely manner, materially comply with all building codes, applicable laws, covenants or restrictions of record, regulations and ordinances (collectively, “Applicable Laws”) concerning the Premises or Tenant’s use, improvement, maintenance, or restoration of the Premises, without regard to whether said Applicable Laws are now in effect or become effective after the Commencement Date. Tenant shall, within 10 days after receipt of Landlord’s written request, provide Landlord with copies of all permits and other documents, and other information evidencing Tenant’s compliance with Applicable Laws specified by Landlord and shall immediately upon receipt notify Landlord in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or other report pertaining to or involving the failure of Tenant or the Premises to comply with any Applicable Laws. Likewise, Tenant shall immediately give written notice to Landlord of any water damage to the Premises and any suspected seepage, pooling, dampness, or other condition conducive to the production or presence of mold.

Tenant shall further refrain from: (i) the making of any noise or sounds that carry beyond the boundaries of the Premises, whether through loudspeakers, other types of electronic devices, or otherwise; (ii) conducting or permitting any activity on the Premises that would constitute a nuisance.
(8) Repairs and Maintenance:

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(a) Tenant Repairs and Maintenance:
(i) Other than those portions of the Premises that Landlord shall be responsible for maintaining and repairing, pursuant to Section 8(b), below, Tenant shall, at Tenant’s sole cost and expense, keep and maintain in good condition (ordinary wear and tear excepted), repair, and replace all roofing membranes, nonstructural portions of the Premises including nonstructural elements of the exterior walls, interior walls, signs, storefronts, doors, door glazing, plate glass, windows, window glazing, ceilings, floors, subfloors, fire safety devices, lighting, plumbing systems, electrical systems, HVAC systems, interior fixtures of any sort, parking lots and paving, curbs, thresholds, paths of travel, and landscaping; excepting any repair or maintenance necessitated by the gross negligence or willful misconduct of the Landlord.
(ii) Tenant shall, upon the expiration or sooner termination of this Lease hereof, surrender the Premises to Landlord in good condition, ordinary wear and tear excepted. Landlord shall have no obligation whatsoever to alter, remodel, improve, repair, decorate or paint the Premises, or any part thereof, and the parties hereto affirm that Landlord has made no representations to Tenant respecting the condition of the Premises, except as specifically herein set forth.
(iii) Tenant shall confirm that the fire safety devices (signage, extinguishers) are operable and comply with applicable fire safety code requirements.

Tenant shall insure that such systems comply with all applicable codes and laws, at its sole cost and expense. Should Tenant be required under applicable law to install a fire sprinkler or fire suppression system, it shall notify Landlord and obtain Landlord’s written consent to perform such work before commencement, such consent to not be unreasonably withheld by Landlord.
(b) Landlord Repairs and Maintenance:
(i) Landlord shall, at Landlord’s sole cost and expense, keep and maintain in good condition (reasonable wear and tear excepted), repair, and replace the License Area, all structural portions of the Premises (including without limitation the foundations and the structural components of the roofs, exterior walls, and subfloors) excepting any repair or maintenance necessitated by the gross negligence or willful misconduct of the Tenant. (ii) Landlord shall be solely responsible for all repairs to and maintenance of the Premises which are not expressly allocated to the Tenant under this Lease.
(9) Alterations: Tenant shall not make any additions, improvements or alterations to the Premises without Landlord’s written consent, which consent shall not be unreasonably

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withheld or delayed if the addition, improvement and/or alteration is nonstructural in nature; provided, however, that nonstructural repairs or alterations not costing in excess of $10,000, in the aggregate, may be made without Landlord’s prior written consent. In making any alterations, additions or improvements which have been consented to in writing by Landlord, Tenant shall comply with the following:
(a) Tenant shall submit reasonably detailed final plans and specifications and working drawings of the proposed alterations and the name of its contractor at least thirty (30) calendar days before the date it intends to commence the alterations. In the event that Landlord has not either approved or disapproved, in writing, Tenant’s proposed alterations within thirty (30) days after receipt of such plans, specifications and drawings, then Landlord shall be deemed to have disapproved such alterations.
(b) The alterations shall not be commenced until twenty (20) calendar days after Landlord has received written notice from Tenant stating the date the installation of the alterations is to commence so that Landlord can post and record an appropriate notice of non-responsibility.
(c) The alterations shall be approved by all appropriate government agencies, and all applicable permits and authorizations shall be obtained before commencement of the alterations.
(d) All alterations shall be completed with due diligence in compliance with the plans and specifications and working drawings and all Applicable Laws. (e) No structural portions or elements of the building in which the Premises are situated, may be modified in any manner or additional structural or seismic loads imposed thereon, without a prior written certification from a licensed structural engineer, in form and substance satisfactory to Landlord, and certifying that such modifications or loads are consistent with all Applicable Laws and shall not weaken or damage the structural strength or integrity of the building.

Any alterations made shall remain on and be surrendered with the Premises on expiration or termination of the term, except that, Landlord can elect, in writing, within ninety (90) calendar days before the expiration of the term, or within ten (10) calendar days after termination of the term, to require Tenant to remove any alterations that Tenant has made to the Premises; provided however, Tenant shall not be required to remove: (i) structural improvements approved by Landlord; (ii) any other alterations, additions or improvements consented to in writing by Landlord, unless at the time of such consent Landlord conditioned such consent on Tenant’s removing same prior to the expiration of the term of this Lease. If Landlord so elects, Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the term, or within sixty (60) calendar days after notice of election is given, whichever is later, provided however that such notice may not be provided after the expiration of the term of this Lease.

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(10) Mechanics’ Liens: Tenant shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease. Tenant shall keep the Premises free and clear of all mechanics' and other liens resulting from construction done by or for Tenant.

Tenant shall have the right to contest the correctness or the validity of any such lien if, immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in California in an amount equal to one and one-half (1-½) times the amount of the claim of lien. The bond shall meet the requirements of Civil Code §3143 and shall provide for the payment of any sum that the claimant may recover on the claim (together with costs of suit, if it recovers in the action).
(11) Janitorial, Utilities, and Services: Tenant shall make all arrangements for and pay for all janitorial services as well as services furnished to or used by it, including, without limitation, telephone service, gas, electricity, landscaping, trash, water, sewer, internet and data, and annual systems inspections, pest control, and for all connection charges to the subject Premises. Tenant shall pay for all such services to be furnished to the subject Premises. Tenant is advised that certain utility connections are connected via the Premises to the adjacent property situated at 191 Harvey West Blvd, which may require191’s access to the electrical room situated upon the Premises. Tenant shall not prohibit or impede Landlord’s reasonable access to the electrical room for this purpose, however Landlord covenants that such access shall not unreasonably interfere with Tenant’s use of the Premises.
(12) Indemnity-Insurance by Tenant: Except to the extent resulting from the gross negligence or willful misconduct of Landlord or Landlord’s employees, agents or contractors, or Landlord’s breach of its obligations under this Lease, (a) Tenant covenants and agrees with Landlord that Landlord shall not be liable for any damage or liability of any kind or for any damage or injury to persons or property during the term of this Lease, or for any damage, injury or cost arising from any violation of Applicable Laws, from any cause whatsoever by reason of the use, occupation or enjoyment of the Premises by Tenant or its contractors, licensees, agents, servants, employees, or business invitees, and (b) that Tenant will indemnify and save harmless Landlord from all liability whatsoever, on account of any such damage or injury and from all liens, claims and demands arising out of the use of the Premises, and its facilities, or any repairs or alterations which Tenant may or is compelled to make upon said Premises, or from any act, omission, or negligence of Tenant, or its contractors, licensees, agents, servants, employees, or business invitees.
(a) Insurance; Tenant: Tenant shall provide proof of its self-insurance coverage naming Landlord, its respective officers, employees, and agents as an additional insured as follows:

Tenant shall maintain in effect throughout the term of this Lease self-insurance with the following minimum limits of liability:

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Workers’ Compensation Insurance:

Provide proof of coverage for worker’s compensation insurance, as required by the State of California, with statutory limits, and employer’s liability insurance:
$500,000 per accident for bodily injury or disease.

Automobile Liability Insurance:

Proof of coverage for $1,000,000 covering any auto, hired and non-owned autos, per accident for bodily injury and property damage.

Commercial General Liability Insurance
Proof of coverage for Commercial General Liability Insurance for $1,000,000 per occurrence, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, and Contractual Liability.

Property Insurance
Tenant shall, at its own expense, during the term of this Lease, maintain in full force a policy or policies of “All Risk” Property Insurance Coverage covering the Premises and all buildings, improvements, and structures thereon, together with all of Tenant’s personal property, trade fixtures, equipment and improvements located in or upon the property in an amount sufficient to cover not less than ninety percent (90%) of the replacement value thereof, providing protection against any peril included within including sprinkler damage, vandalism and malicious mischief endorsements ordinarily included in extended coverage casualty insurance policies.
(13) Insurance; Landlord.
(a) During the term of this Lease, Landlord shall maintain comprehensive general liability insurance endorsed for premises-operations, and contractual liability, with a combined single limit of not less than $1,000,000 per occurrence, with an annual aggregate of $2,000,000.
(b) Landlord may procure and maintain other such policy or policies to the extent Landlord deems prudent, in its sole discretion, including without limitation, environmental, earthquake and flood insurance, and business interruption insurance. The policy or policies shall be issued in the name of Landlord.

Landlord shall be responsible for all insurance premiums and deductibles other than for its comprehensive general liability insurance, the premiums and deductibles for which are included as Additional Rent
(14) Destruction.
(a) Destruction Due to Risk Covered by Insurance. If, during the term, the Premises are totally or partially damaged or destroyed from a risk covered or

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required to be covered by the insurance described in Paragraph (12), above, rendering the Premises totally or partially inaccessible or unusable, Landlord shall restore the Premises or the building and other improvements in which the Premises are located to substantially the same condition as they were in immediately before destruction, excepting Landlord shall have no obligation to restore Tenant’s alterations, additions or improvements. Such destruction shall not terminate this Lease. If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party.

If the cost of the restoration of Premises exceeds the amount of proceeds received from the insurance carried or required to be carried under Paragraph 12, above, Landlord can elect to terminate this Lease by giving written notice to Tenant within thirty (30) calendar days after determining that the restoration cost will exceed the insurance proceeds. If Landlord elects to terminate this Lease pursuant to this Paragraph 14, Tenant, within fifteen (15) calendar days after receiving Landlord’s notice to terminate, can elect to pay to Landlord, at the time Tenant notifies Landlord of its election, the difference between the amount of insurance proceeds and the cost of restoration, in which case Landlord shall restore the Premises, and Tenant shall diligently restore its improvements, alterations and additions. Landlord shall give evidence satisfactory to Tenant that all sums contributed by Tenant, as provided in this paragraph have been expended by Landlord in paying the cost of restoration.

If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of restoration as provided in this paragraph, this Lease shall terminate.
(b) Destruction Due to Risk Not Covered by Insurance. If, during the term, the Premises are totally or partially destroyed from a risk not covered by the insurance described in Paragraphs 12 and 13, above, (but excluding a non-covered risk due to Landlord’s failure to maintain the insurance required by it under Paragraph 13) Landlord shall restore the Premises to substantially the same condition as they were in immediately before destruction, excepting for Tenant’s improvements, alterations and additions. Such destruction shall not terminate this Lease. If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party.

Notwithstanding the foregoing paragraph, if (i) the cost of restoration of the Premises exceeds five percent (5%) of the then replacement value of the Premises, Landlord can elect to terminate this Lease by giving written notice to Tenant within thirty (30) calendar days after determining the restoration cost and replacement value; provided, however, that if Landlord elects to terminate this Lease pursuant to this Paragraph 14(b), Tenant, within fifteen (15) calendar days after receiving Landlord’s notice to terminate, can elect to pay to Landlord, at the time Tenant notifies Landlord of its election, the difference between a sum equal to five percent (5%) of the replacement value of the Premises and the cost of restoration, in which case Landlord shall restore the Premises, and Tenant shall

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diligently restore its improvements, alterations and additions. Landlord shall give evidence satisfactory to Tenant that all sums contributed by Tenant, as provided in this paragraph, have been expended by Landlord in paying the cost of restoration.

If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of restoration as provided in this paragraph, this Lease shall terminate.

For purposes of this Section 14, the terms “damage” or “destruction” shall not be interpreted to include any voluntary or mandatory shut down of the Premises or closure of any businesses within due to COVID-19 or any other type of pandemic, and any ordinances, orders, laws, codes, or other requirements arising therefrom. (c) Abatement or Reduction of Rent. In case of destruction there shall be an abatement or reduction of Monthly Base Rent, Additional Rent, and NNN expenses, between the date of destruction and the date of completion of restoration, based on the extent to which the destruction interferes with Tenant’s use of the Premises.
(d) Loss During Last Part of Term. If destruction to the Premises occurs during the last year of the term, either party can terminate this Lease by giving written notice to the other party, not more than twenty (20) calendar days after the destruction. (e) Waiver of Civil Code Sections. Tenant waives the provisions of Civil Code §1932(2) and Civil Code §1933(4) with respect to any destruction of the Premises.
(15) Eminent Domain.
(a) Automatic Termination. If at any time during the term of this Lease, title and possession of ten percent (10%) or more of the Premises, is taken under the power of eminent domain by any public or quasi-public agency or entity, this Lease shall terminate as of 12:01 A.M. of the date actual physical possession of the Premises is taken by the agency or entity exercising the power of eminent domain.

Thereafter, both Landlord and Tenant shall be released from all obligations under this Lease, subject to the provisions of Paragraph 15(c) of this Lease. (b) Rent Abatement. In the event of any taking under the power of eminent domain which does not so result in a termination of this Lease, the Monthly Base Rent, Additional Rent, and NNN expenses payable hereunder shall be reduced, effective as of the date on which the condemning authority takes possession, in the same proportion which the portion of the Premises taken bears to the entire Premises prior to the taking, and this Lease shall continue in full force and effect; PROVIDED, HOWEVER, that should there be a condemnation or taking of the Back Lot of the Premises, as opposed to of any of the improved portions of the Premises, the rent shall be reduced by the same proportion which the fair market

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value of the portion of the Premises taken bears to the fair market value of the entire Premises prior to the taking.
(c) Condemnation Award. Any award for any taking of all, or any part, of the Premises under the power of eminent domain shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for taking of the fee. Nothing contained herein, however, shall be deemed to preclude Tenant from obtaining, or to give Landlord any interest in, any award to Tenant for loss of or damage to Tenant’s trade fixtures and removable personal property, to an amount equal to the reasonable removal and relocation costs, not to exceed market value.
(d) Waiver on Condemnation. Landlord and Tenant each agree that this Lease shall govern the respective rights and obligations of each party in the event of a taking by eminent domain. Landlord and Tenant each hereby waives any right either may have at law to petition the court for termination of this Lease in the event of a partial taking of the Premises.
(16) Assignment/Sublease.
(a) Landlord’s Consent. Tenant shall not voluntarily or involuntarily assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises, without first obtaining Landlord’s consent, which consent shall not be unreasonably withheld or delayed. Any assignment, encumbrance, or sublease without Landlord’s consent shall be voidable, and, at Landlord’s election, shall constitute a default. No consent to any assignment, encumbrance or sublease shall constitute a further waiver of the provisions of this paragraph.

Reasonable grounds for denying consent include the following:
(i) The proposed assignee or sublessee’s character, reputation, credit history, business, or proposed use is not consistent with the character or quality of the Premises;
(ii) The proposed assignee or sublessee would be a significantly less prestigious occupant of the Premises than Tenant;
(iii) The proposed assignee or sublessee’s intended use of the Premises is inconsistent with the permitted use or will materially and adversely affect Landlord’s interest; or
(iv) The proposed assignee or sublessee financial condition is or may be inferior to Tenant’s.
(b) Notice of Intent to Sell Business or Assets. Not applicable. (c) Information on Potential Assignee. If, at any time or from time to time, during the Lease term, Tenant desires to assign its interest in this Lease, or in the

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Premises, or sublease all or any part of the Premises, Tenant shall give thirty (30) calendar days written notice to Landlord, setting forth the name of the proposed assignee or sublessee, and deliver same to Landlord, together with the proposed assignee's or sublessee's verified financial statements for the last three (3) years, names and addresses of any and all lessors from whom they have leased real property during the last five (5) years and a statement of business experience.

Failure to provide such information shall be reasonable grounds for Landlord to withhold consent to the proposed assignment or sublease, unless Landlord, in writing, waives the information requirement.
(d) Notice of Intent to Sublease or Assign. Upon Tenant notifying Landlord of Tenant’s intent to sublease or assign this Lease, Landlord shall, within fifteen (15) calendar days of receipt of such written notice: (i) consent to such proposed assignment or subletting; or (ii) refuse such consent. If Landlord fails to respond within said fifteen (15) calendar days, it shall be deemed that Landlord has refused its consent.
(e) Consent. As a condition for granting its consent to any subletting or assignment, Landlord may require any, or all, of the following:
(i) Tenant shall provide Landlord with reasonable evidence that the proposed assignee or sublessee is creditworthy and experienced in the business for which the Premises are let hereunder, that he, it or they can satisfy the conditions of this Lease, including, but not limited to, the payment of any and all additional costs incurred by Landlord for maintenance and repair as a result of any change in the nature of the occupancy caused by such assignment or sublease, and that no substantial reduction in total gross sales or in percentage rent payable by the proposed assignee or sublessee will occur as a result of the assignment or subletting of the Premises; (ii) The assignment or sublease shall be on the same terms set forth in the Tenant’s written notice given to Landlord;
(iii) Tenant, or the proposed assignee or sublessee, agrees to pay to Landlord, upon demand, as additional rent, a sum equal to the additional costs, if any, reasonably incurred by Landlord for maintenance and repair as a result of any change in the nature of the occupancy caused by such assignment or subletting;
(iv) No assignment or sublease shall be valid, and no assignee or sublessee shall take possession of the Premises until an executed counterpart of such assignment or sublease has been delivered to Landlord, containing a copy of this Lease and expressly providing that the assignee or sublessee (but as to the sublessee only, in the case of a sublease of all or substantially all of the Premises) has expressly assumed all obligations under this Lease arising after the date of the assignment and that any sublease is subject to and subordinate to this Lease; that Tenant and any assignee of all of the

23.24 21
Premises or sublessee are jointly and severally liable for the payment of all sums due under this Lease and the performance and observance of all of the agreements, covenants, conditions and provisions to be performed and observed by Tenant under this Lease as and when performance and observances are due; and in the case of an assignment of all of the Premises, that Landlord shall have the right to enforce such agreements, covenants, conditions and provisions directly against Tenant and assignee, or sublessee, and each of them;
(v) Any further assignment or subletting by such assignee or sublessee shall be and shall remain subject to the terms of this Lease; and (vi) Any rents paid by the sublessee in excess of the monthly Rent paid by Tenant under this Lease shall be equally split between the Landlord and Tenant.
(f) Corporate/Limited Liability Company Transfers. The provision of this Paragraph 18 shall apply to any transfer of the Lease from Tenant to any corporation or limited liability company, including, without limitation, any corporation or limited liability company of which Tenant is the sole shareholder or member. If Landlord determines not to consent to the proposed transaction because of the financial capacity of the proposed transferee, then Landlord, instead of disapproving the transaction, may condition its consent to a transfer to a corporation or limited liability company upon the personal guarantee of this Lease by the directors and/or shareholders of any corporate Tenant or any manager and/or member of any limited liability company Tenant.
(g) Payment of Landlord’s Expenses. Tenant shall pay Landlord within thirty (30) days upon written demand all administrative costs, overhead, and attorneys’ fees incurred by Landlord in connection with an assignment, sublease, or other transfer transactions approved by Landlord. Provided, however, that such costs owed by Tenant shall be capped at Three Thousand Dollars ($3,000). Tenant shall pay this fee before Landlord executes the document evidencing Landlord’s consent to the transfer. The fee shall be owed to Landlord regardless of whether Tenant is ultimately successful in finalizing the assignment or sublease. (h) No Release of Tenant. No Assignment of this Lease shall constitute a release of Tenant and Tenant shall remain personally liable under the Lease. In the event of an assignment and an event of default by the assignee, Landlord agrees to give Tenant notice of such default, concurrently with the giving of such notice to the assignee.

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(17) Default.
(a) Tenant’s Default. The occurrence of any of the following shall constitute a material default by Tenant:
(i) Failure to pay rent, or any other payment required to be made by Tenant hereunder, when due, if the failure continues for ten (10) calendar days after written notice has been given to Tenant.
(ii) Abandonment and vacation of the Premises (failure to occupy and operate the Premises for twenty-one (21) consecutive days without prior written notice from Tenant shall be deemed an abandonment and vacation, excluding such failure due to a casualty, condemnation, or other Force Majeure Event, or any remodeling or refurbishment of the Premises). (iii) Failure to perform any other provision of this Lease if the failure to perform is not cured within thirty (30) calendar days after written notice has been given to Tenant. If the default cannot reasonably be cured within thirty (30) calendar days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within said thirty (30) calendar day period and diligently and in good faith continues to cure the default.

Notices given under this paragraph shall specify the alleged default and the applicable Lease provisions and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture, or a termination of this Lease unless Landlord so elects in the notice.

In the event Tenant assigns the Lease and is not released from any liability hereunder, then in addition to any notice provided to the assignee, as provided above, Landlord agrees to give concurrent notice of such default to the original Tenant who shall have the right to cure such default.
(b) Landlord’s Remedies. Landlord shall have the following remedies if Tenant commits and fails to cure a default listed in Paragraph 16(a). These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law.

Landlord can continue this Lease in full force and effect, and the Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due.

Landlord can terminate Tenant’s right to possession of the Premises if Tenant commits and fails to cure a default listed in Paragraph 16(a). No act by Landlord other than giving notice to Tenant shall terminate this Lease. Acts of maintenance or efforts to relet the Premises shall not constitute a termination of Tenant’s right to possession. On termination, Landlord has the right to recover from Tenant:

23.26 23
(i) The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease;
(ii) The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;
(iii) The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and
(iv) Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default.
"The worth, at the time of the award," as used in (i) and (ii) of this paragraph, is to be computed by allowing interest at the rate of ten percent (10%) per annum, but in no case greater than the maximum amount of interest permitted by law. "The worth, at the time of the award," as referred to in (iii) of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%).

Landlord, at any time after Tenant commits a default, can cure the default at Tenant’s cost. If Landlord at any time, by reason of Tenant’s default, pays any sum or does any act that requires the payment of any sum, the sum paid by Landlord shall be due immediately from Tenant to Landlord at the time the sum is paid, and if paid at a later date shall bear interest at the rate of ten percent (10%) per annum, but in no case greater than the maximum amount of interest permitted by law, from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. The sum, together with interest on it, shall be additional rent.

Rent not paid within five (5) business days after written notice by Landlord to Tenant shall bear interest at the then prime rate of interest, as established by THE BANK OF AMERICA, NATIONAL TRUST & SAVINGS ASSOCIATION, in San Francisco, California, plus two percent (2%), however, in no event to exceed the maximum legal rate, from and after the date due plus ten (10) days until paid. (c) Late Charges. Tenant hereby acknowledges that the late payment by Tenant to Landlord of rent, or other sums, due hereunder, will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or of a sum due from Tenant shall not be received by Landlord, or Landlord’s designee, within ten (10) calendar days after written notice by Landlord to Tenant, then Tenant shall pay to Landlord, in addition to any interest

23.27 24
owing under and pursuant to Paragraph (16)(b), above, a late charge equal to five percent (5%) of such overdue amount; provided, however, that Landlord hereby waives the collection of any late fee if: (i) the late payment does not occur more often than one (1) time in any given twelve (12) month period; and (ii) such late payment is actually received by the Landlord by the 10th day of the calendar month. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

Landlord: _______________ Tenant: _______________
(Initials) (Initials)

(d) Landlord’s Default. Landlord shall not be in default, unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) calendar days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; PROVIDED, HOWEVER, that if the nature of Landlord’s obligation is such that more than thirty (30) calendar days are required for performance, then Landlord shall not be in default if Landlord commences performance within such thirty (30) calendar day period, and thereafter diligently prosecutes the same to completion.

Tenant’s remedies shall be limited as follows:
(i) Limitation on Liability. Landlord, or its agents, shall not be liable for any damage to property entrusted to employees of the building, nor for loss or damage to any property by theft or otherwise, nor for any injury to or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the building or from the pipes, appliances or plumbing works therein, or from the roof, street or subsurface, or from any other place, resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence or willful misconduct of Landlord, its agents, servants or employees, and as to which Tenant has given Landlord reasonable notice.

Landlord, or its agents, shall not be liable for interference with the light or other incorporeal hereditaments, or loss of business by Tenant. Tenant shall give prompt notice to Landlord in case of fire or accidents in the Premises or in the building or of defects therein, or in the fixtures or equipment.
(ii) Landlord’s Exculpation. In the event of default, breach or violation by Landlord, which term includes Landlord’s partners, co-ventures, co-Tenants, officers, directors, employees, agents or representatives), of

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any of Landlord’s obligations under this Lease, Landlord’s liability to Tenant shall be limited to its ownership interest in the Premises and any rentals, profits, or other income there from. Should Tenant recover a money judgment against Landlord, the judgment shall be satisfied only out of the proceeds of sale received on execution of the judgment and levy against the right, title and interest of Landlord in the Premises and out of rent or other income derived therefrom. Landlord shall not be personally liable for any deficiency beyond its interest in the Premises and any rentals, profits, or other income there from.
(18) Security Deposit. On execution of this Lease, Tenant shall deposit with Landlord the sum set forth in Item 8 of the Salient Lease Terms as a security deposit for the performance by Tenant of the provisions of this Lease. If Tenant is in default, as defined in Paragraph 16(a), Landlord can use the security deposit, or any portion of it, to cure the default or to compensate Landlord for all damages sustained by Landlord resulting from Tenant's default. Tenant shall, within five (5) business days after written demand therefore, pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this Section 18 so as to maintain the security deposit in the sum initially deposited with Landlord, if Tenant is not in default, as defined in Paragraph 16(a), at the expiration or termination of this Lease, Landlord shall return the security deposit to Tenant. Landlord can maintain the security deposit separate and apart from Landlord's general funds or can commingle the security deposit with Landlord's general and other funds.
(19) Landlord’s Entry on Premises. Landlord and its authorized representatives shall have the right to enter the Premises on at least twenty-four (24) hours prior written notice (excepting for emergencies), for any of the following purposes:
(a) To determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Lease;
(b) To do any necessary studies, inspections, maintenance, repairs, alterations, and improvements, and to make any restoration to the Premises or the building and other improvements in which the Premises are located that Landlord may deem necessary or desirable;
(c) To serve, post, or keep posted any notices required or allowed under the provisions of this Lease;
(d) To post "for sale", "for rent" or "for lease" signs during the last nine (9) months of the term, or during any period while Tenant is in default; which notices shall not be removed by Tenant;
(e) To show the Premises to prospective brokers, agents, buyers, Tenants, or persons interested in an exchange, at any time during the term with prior appointment; Any entries by Landlord shall be done at times and in such a manner so as to minimize, to the extent economically reasonable, any interference with Tenant’s use of the

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Premises. Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord’s entry on the Premises as provided in this paragraph, excepting solely for the negligence or willful misconduct of Landlord or its employees, agents, or contractors.

Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises any rights reserved in this paragraph.
(20) Subordination, Estoppel.
(a) Subordination: Except as provided in Subparagraph 19(b), below, this Lease and all of Tenant’s rights in the Lease is and shall be subordinate to any mortgage, deed of trust, or other instrument of encumbrance (collectively the “Security Instrument”) that is now of record or recorded after the date of this Lease affecting the building, other improvements, and land of which the Premises are a part. Such subordination is effective without any further act of Tenant.

Tenant shall from time to time, on request from Landlord, execute and deliver any documents or instruments that may be reasonably required by a lender (“Lender”) to effectuate any subordination. For each Security Instrument, the Lender shall agree in writing that in the event of a default or foreclosure under the Security Instrument, Lender shall not terminate this Lease and shall not disturb Tenant’s right to possession under this Lease, provided Tenant is not then in default under this Lease and continues thereafter to fully perform all of its obligations under this Lease.
(b) Election to Subordinate Security Instrument. Notwithstanding the provisions of Subparagraph 19(a), above, any Lender may subordinate its Security Instrument to this Lease by executing and recording a written document subordinating such Security Instrument to this Lease. In that case, this Lease shall be deemed prior to the Security Instrument as provided in the document, without regard to the execution, delivery, or recording dates of the subordination document or the Security Instrument. Subordination of a Security Instrument shall not require the consent of Tenant, but Tenant agrees to execute and deliver, in recordable form, any instrument requested by Lender or Landlord to confirm or acknowledge the subordination.
(c) Attornment. If Landlord transfers its interest in the Premises or if any proceeding is brought to foreclose any mortgage, deed of trust, or instrument to secure debt affecting the Premises, Tenant shall attorn to the purchaser or transferee of Landlord’s interest. Tenant’s duty to attorn shall include the duty to execute and deliver, in recordable form, any instrument requested by Lender or Landlord to confirm or acknowledge the attornment, which agreement may include provisions providing that Lender, its successors and assigns, or a purchaser at any foreclosure sale (“Purchaser”), as the case may be, shall in no event or to any extent:

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(i) be liable to Tenant for any past act, omission or default on the part of Landlord under the Lease and Tenant shall have no right to assert the same or any damages arising therefrom as an offset, defense or deficiency against Lender, Purchaser or the successors or assigns of either of them; (ii) be liable to Tenant for any prepayment of rent or deposit, rental security or any other sums deposited with the original or any prior Landlord under the Lease which is not specifically delivered to Lender;
(iii) be bound by any amendment or modification of the Lease not consented to in writing by Lender;
(iv) be bound by any warranty or representation of Landlord relating to work performed by Landlord under the Lease.
(d) Right to Estoppel Certificates. Tenant, within twenty (20) days after written notice from Landlord, shall execute and deliver to Landlord, in recordable form, an estoppel certificate regarding the status of this Lease. The certificate shall be in the form designated by Landlord or the lender and shall contain at a minimum the following: (i) a statement that this Lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications; (ii) the Commencement Date and expiration date of this Lease; (iii) the amount of minimum monthly rent, the dates to which the rent has been paid in advance; (iv) the amount of any security deposit and/or prepaid rent; (v) a statement indicating whether or not Landlord is, in Tenant’s good faith opinion, in default under any of the terms of this Lease, and if so, a description of the alleged default and of any defense or offset claimed by Tenant; and (vi) any other information reasonably required by Landlord or lender. Failure to deliver the certificate within the twenty (20) days shall be conclusive upon Tenant that this Lease is in full force and effect and has not been modified except as may be represented by Landlord.

Tenant’s failure to timely deliver the required certificate shall also constitute, as between Tenant and the persons entitled to rely on the statement and as between Tenant and Landlord, a waiver of any defaults by Landlord or of Tenant defenses or offsets against the enforcement of this Lease that may exist prior to the date of the written request for the statement. Landlord may also treat Tenant’s failure to deliver the certificate as a default under this Lease.
(e) Lender’s Nondisturbance Agreement. Landlord agrees, within ten (10) calendar days of receipt of Tenant’s written request, which request must specifically reference this paragraph, to request, in writing, that any lender holding an existing deed of trust or mortgage lien against the Premises enter into a non-disturbance agreement on terms and conditions reasonably satisfactory to Tenant and the lender.
(21) Notices. All notices and demands which may or are to be required or permitted to be given by either party to the other hereunder shall be in writing. All notices and demands by Landlord to Tenant shall be delivered to Tenant or be sent by United States Mail,

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postage prepaid, addressed to Tenant at the address set forth in Item 2(b) of the Salient Lease Terms, or via email. All notices and demands by Tenant to Landlord shall be delivered to Landlord or be sent by United States Mail, postage prepaid, addressed to Landlord, at the address set forth in Item 2(a) of the Salient Lease Terms, or to such other person or place as Landlord may, from time to time, designate in a notice to Tenant, or via email.
(22) Waiver. No delay or omission in the exercise of any right or remedy of a party to this Lease on any default by the other party shall impair such a right or remedy or be construed as a waiver.

The receipt and acceptance by Landlord of delinquent rent shall not constitute a waiver of any other default; it shall constitute only a waiver of timely payment for the particular rent payment involved.

No act or conduct of Landlord, including, without limitation, the acceptance of the keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Tenant before the expiration of the term. Only a notice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease.

Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent or approval shall not be deemed to waive or render unnecessary Landlord’s consent to or approval of any subsequent act by Tenant.

Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of the Lease. (23) Sale or Transfer of Premises. If Landlord sells or transfers the Premises, on consummation of the sale or transfer, Landlord shall be released from any liability thereafter accruing under this Lease if Landlord’s successor has assumed in writing, for the benefit of Tenant, Landlord’s obligations under this Lease. If any prepaid rent or security deposit has been paid by Tenant, Landlord can transfer the prepaid rent and security deposit to Landlord’s successor and on such transfer Landlord shall be discharged from any further liability in reference to the same. (24) Attorneys’ Fees. If either party becomes a party to any litigation concerning this Lease, the Premises, or the building or other improvements in which the Premises are located, by reason of any act or omission of the other party or its authorized representatives, and not by any act or omission of the party that becomes a party to that litigation or any act or omission of its authorized representatives, the party that causes the other party to become involved in the litigation shall be liable to that party for reasonable attorneys' fees and court costs incurred by it in the litigation.

If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys' fees and costs of suit.
(25) Surrender of Premises; Holding Over.

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(a) Surrender of Premises. On expiration of the term, Tenant shall surrender to Landlord the Premises and all Tenant’s improvements and alterations in good condition, except for alterations that Tenant has the right to remove or is obligated to remove under the provisions of Paragraph 8, above. Tenant shall remove all its personal property, including, but not limited to, trade fixtures and furnishings, on or prior to the last day of the applicable term Tenant shall perform all restoration made necessary by the removal of any alterations or Tenant’s personal property within the time periods stated in this paragraph. Notwithstanding anything to the contrary in this Lease Tenant shall have no obligation to remove any alterations, additions or improvements made to the Premises which were consented to in writing by Landlord, unless at the time of such consent Landlord conditioned such consent on Tenant’s removing same prior to the expiration of the term of this Lease.

Landlord can elect to retain or dispose of in any manner any alterations or Tenant’s personal property that Tenant does not remove from the Premises on expiration or termination of the term as allowed or required by this Lease by giving at least ten (10) business day advance written notice to Tenant. Title to any such alterations or Tenant’s personal property that Landlord elects to retain or dispose of on expiration of the ten (10) business day period shall vest in Landlord.

Tenant waives all claims against Landlord for any damage to Tenant resulting from Landlord’s retention or disposition of any such alterations or Tenant’s personal property. Tenant shall be liable to Landlord for Landlord’s costs for storing, removing, and disposing of any alterations or Tenant’s personal property.

If Tenant fails to surrender the Premises to Landlord on expiration of the term as required by this paragraph, Tenant shall hold Landlord harmless from all damages resulting from Tenant’s failure to surrender the Premises, including, without limitation, claims made by a succeeding Tenant resulting from Tenant’s failure to surrender the Premises.
(b) Holding Over. If Tenant, with Landlord’s consent, remains in possession of the Premises after expiration or termination of the term, or after the date in any notice given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a month-to-month tenancy terminable on thirty (30) calendar day written notice given at any time by either party. During any such month-to-month tenancy, Tenant shall pay all rent required by this Lease, plus a sum equal to fifty percent (50%) of the minimum monthly rent specified for the last month of the term which expired immediately prior to such holdover. All provisions of this Lease except those pertaining to term shall apply to the month-to-month tenancy.
(26) Quiet Enjoyment. Provided no event of default by Tenant has occurred and is continuing beyond any applicable notice and cure period, Landlord shall secure to Tenant during the term of this Lease, including any extensions or renewals thereof, the quiet, peaceful and uninterrupted exclusive possession of the Premises and all rights and privileges appertaining thereto. Any renewal or term extension options shall extend to

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the benefit of Tenant’s assignees and sublessees. All of Tenant’s remedies shall be construed to be cumulative and non-exclusive.
(27) Miscellaneous Provisions:
(a) Time of Essence: Time is of the essence of each provision of this Lease. (b) Consent of Parties: Whenever consent or approval of either party is required, that party shall not unreasonably withhold or delay such consent or approval. (c) Successors: This Lease shall be binding on and inure to the benefit of the parties and their successors, heirs, and assigns, except as provided in Paragraph (15), above.
(d) Rent Payable in U.S. Money: Rent and all other sums payable under this Lease must be paid in lawful money of the United States of America. (e) California Law: This Lease shall be construed and interpreted in accordance with the laws of the State of California.
(f) Integrated Agreement; Modification: This Lease contains all the agreements of the parties and cannot be amended or modified except by a written agreement. (g) Captions; Table of Contents: The captions and table of contents of this Lease shall have no effect on its interpretation.
(h) Singular and Plural: When required by the context of this Lease, the singular shall include the plural.
(i) Severability: The unenforceability, invalidity, or illegality of any provision shall not render the other provisions unenforceable, invalid, or illegal. (j) Exhibits: All Exhibits referred to are attached hereto and incorporated herein by this reference.
(k) Counterparts: This Agreement may be executed simultaneously in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.
(l) Force Majeure: Whenever a specific period of time is prescribed in the Lease for action (other than the payment of money, which shall not be abated under any circumstance) to be taken by Landlord or Tenant, then Landlord or Tenant, as the case may be, shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, act of God, pandemic, disease, civil commotion, fire or casualty, shortages of labor or materials, war, governmental laws, regulations or restrictions, or any

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other causes of any kind whatsoever that are beyond the reasonable control of Landlord or Tenant, as the case may be.
[Signature page follows]

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IN WITNESS WHEREOF, the parties have executed this Lease as of the date and year first above written, at San Jose, California.

Landlord
J3D FAMILY LIMITED PARTNERSHIP,
a California limited partnership
By: _______________________________
Douglas L. Michels, as Trustee of the
DLM Living Trust, its General Partner

HARVEY WEST MAININI, LLC,
a California limited liability company
By: ______________________________
Kerry Mainini, Managing Member
Tenant

THE CITY OF SANTA CRUZ,
a California municipal corporation
By: ___________________________
Matt Huffaker, City Manager
Approved as to Form
By: ____________________________
Office of the City Attorney

23.36 EXHIBIT “A”

DEPICTION OF PREMISES

23.37 Harvey West Blvd
Harvey West Blvd
Happy Days
Child Learing
Center
Premises
License Area 23.38
EXHIBIT “B”

LANDLORD WORK
Prior to the Commencement Date, Landlord shall install flooring in all offices and hallways in the Premises that are currently in subfloor condition to match existing finished flooring.

For clarity, Landlord shall install carpet on subfloor areas in offices to match finished flooring in offices in the Premises, and shall install hard surface flooring on subfloor areas in hallways to match finished flooring in hallways in the Premises.

23.39 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Water
SUBJECT: Ratify Contract with Granite Construction for On-Call Paving Services (WT)
LOCATION: County (Water Service Area)
RECOMMENDATION: Motion to:
1) Ratify a contract with Granite Construction Company (Watsonville, CA) for on-call paving services in an amount not to exceed $200,000 per year, and authorizing the Water Director to execute future contract amendments, in a form approved by the City Attorney, that do not exceed the approved budget; and
2) Adopt a CEQA finding of categorical exemption pursuant to California Code of Regulations Title 14, § 15301, (Class 1 categorical exemption for existing facilities).

BACKGROUND: The Water Department’s (Department) distribution system relies on a complex network of infrastructure to deliver reliable service to the community. To maintain system integrity, Water Distribution staff are available 24/7/365 to respond to urgent issues, including water main breaks and emergency fire hydrant repairs. These critical repairs often require immediate excavation and are frequently completed outside of standard working hours, including nights, weekends, and holidays. To support both emergency response and routine maintenance activities, on-call paving services are essential to restore impacted roadways, sidewalks, and rights-of-way in a timely and efficient manner. Contracted paving partners must be equipped to mobilize quickly and coordinate seamlessly with Department repair crews to provide temporary and permanent surface restoration. This ongoing coordination ensures public safety, minimizes traffic disruptions, and satisfies local jurisdictional restoration standards following necessary excavation work.

DISCUSSION: On November 6, 2025, the Water Department publicly advertised a Request for Proposals on OpenGov.com soliciting proposals from qualified firms to provide on-call paving services. Three proposals were received and they were reviewed, evaluated, and scored in accordance with the criteria outlined in the RFP. Granite Construction was scored as the most qualified firm to provide on-call paving services for the Department. A Construction Contract was executed on January 9, 2026 for paving services as needed with an annual Not To Exceed amount of $200,000.

24.1 Upon identification of a paving project needed by the Water Department, staff will determine the required scope of work and schedule. The Water Department will authorize the commencement of work following the receipt of a quote based on the defined scope of work and the contract fee schedule.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is exempt from the California Environmental Quality Act (CEQA) under: California Code of Regulations, Title 14 §15301 – Class 1 categorical exemption for existing facilities because the Council action is intended to “consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.” (14 Cal. Code Regs. §15301.) HEALTH IN ALL POLICIES (HiAP): Continuation of this contract for on-call paving services provides alignment with the public health and sustainability pillars of the City’s HiAP initiative. The additional paving and restoration resources provided by this contract also help support the Water Department’s work in delivering projects that improve the reliability of the public drinking water supply in a method that is financially responsible and feasible for staff to implement.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available within the Water Department’s Operating Fund.

Prepared By:

Evanda Wilkinson
Management Analyst
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RFP RESULTS TABULATION.DOCX

2. PROFESSIONAL SERVICE AGREEMENT.PDF

24.2 City of Santa Cruz Water Department
Heidi Luckenbach, Water Director
809 Center st, Santa Cruz, CA 95060

EVALUATION TABULATION
RFP No. RFP No. WT-0264
On-call Paving Services and Asphalt Repairs
RESPONSE DEADLINE: December 5, 2025 at 9:00 am
Report Generated: Thursday, December 18, 2025

SELECTED VENDOR

VENDOR AWARDED BY THE EVALUATION PROCESS
Vendor Location Score (Points)
Granite Construction
Company
Santa Clara, CA undefined
PHASE 1

EVALUATORS
Name Title Agreement Accepted On
Chris Coburn Deputy Director Dec 15, 2025 12:54 PM
Evanda Goad Management Analyst Dec 9, 2025 8:36 AM
Hugo Rivera Superintendent of Water
Distribution
Dec 11, 2025 2:17 PM

24.3 EVALUATION TABULATION
RFP No. RFP No. WT-0264
On-call Paving Services and Asphalt Repairs

EVALUATION TABULATION
Request For Proposal - On-call Paving Services and Asphalt Repairs

Page 2 ends

Santa Cruz City CouncilJune 23, 2026

Santa Cruz City Council
June 23, 2026