Exhibit 1 - Water Supervisory MOU — City Council and Concurrent Authorities, September 12, 2023

CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

WATER SUPERVISORY UNIT

MUNICIPAL UTILITIES DEPARTMENT
Operating Engineers' Local 3, AFL-CIO and representatives of the City of Stockton have met and conferred in good faith regarding wages, hours and other terms and conditions of employment of employees in the representation unit identified in s ection 1, have exchanged freely information, opinions and proposals , and have endeavored to reach agreement on all matters relating to the employment conditions and employer-employee relations of such employees.

Thi
s Memorandum of Understanding (MOU) is entered into pursuant to the Meyers- Milias-Brown Act (Government Code sections 3500-3510) and has been jointly prepared by the parties.

This MOU shall be presented to the Stockton City Council as the joint recommendations of the undersigned for salary and benefit adjustments for the period commencing July 1, 2023 and ending June 30, 2026.

EXHIBIT 1

TABLE OF CONTENTS

Section 1. Recognition ................................................................................................... 2 Section 2. Union Rights .................................................................................................. 2 Section 3. Compliance with Federal Laws/Safety ............................................................ 5 Section 4. Probation ....................................................................................................... 6 Section 5. Layoff ............................................................................................................. 7 Section 6. Reemployment ............................................................................................... 9 Section 7. Discipline ...................................................................................................... 10 Section 8. Grievance Procedures ................................................................................. 11 Section 9. Leaves ......................................................................................................... 14 Section 10. Days and Hours of Work ........................................................................... 23 Section 11. Overtime .................................................................................................... 24 Section 12. Holidays ..................................................................................................... 27 Section 13. Compensation and Allowance Other Than Base Salary.............................. 29 Section 14. Insurance Plans and Retirement Benefits ................................................. 34 Section 15. Salaries ..................................................................................................... 38 Section 16. Severability of Provisions ........................................................................... 44 Section 17. Past Practices and Existing Memoranda of Understanding ......................... 44 Section 18. Scope of Agreement ................................................................................... 44 Section 19. Duration of Agreement .............................................................................. 44 Section 20. Maintenance of Operations/City Rights ....................................................... 44 Section 21. GPS Devices in City Vehicles .................................................................... 45 Appendix A. Market Adjustments ................................................................................. 47 Appendix B. Side-Letter of Agreement Regarding Transfer of Services....................... 48

EXHIBIT 1

Section 1. Recognition
Operating Engineers' Local 3, AFL- CIO, hereinafter referred to as the "Union," is the recognized employee organization for the Water Supervisory Unit, certified pursuant to Resolution No. 08-0143, adopted by the City Council on April 15, 2008.

Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

(a) In accordance with the Senate Bill (SB) 866, t he parties agree to the following process for making, cancelling, or changing payroll deductions for Union membership union dues deductions.

(b) As certified in writing by the Union to the City in a manner consistent with the requirement of (SB) 866 the City will deduct the monthly Union membership dues, initiation fees, general assessments, and payments for membership benefits programs sponsored by the Union from the salary or wages of all bargaining unit employees who voluntarily authorize such deductions, as certified in writing by the Union to the City, and pay such amounts to the Union.

1. All employee requests to cancel or change membership dues deductions shall be directed to the Union.

2. The City shall rely upon written notification from the Union for any and all employee requests to cancel or change payroll deductions for membership dues.

3. The Union is responsible to obtain and maintain voluntary written authorization for membership dues deductions.

4. Membership dues deductions shall automatically renew unless written notice is provided by the authorized representative of the Union certifying a change in membership dues.

5. The City shall honor any changes to membership dues deduction amounts provided by the Union.

6. The Union is not required to provide a copy of individual employee authorizations to the City unless a dispute arises about the existence or terms of the authorization.

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7. D
eduction notification will be provided to [email protected]

8. Changes, and/or cancellations, received by the City prior to the 15 th of the
month will be processed no later than the first pay period of the second month. Example: The Union notifies the City on January 15 th, the deductions
will be effective no later than the first full pay period in March. The parties recognize there is a lapse in time due to pay period processing constraints.

The City will make every effort to process earlier if possible.

The Union shall indemnify, defend, and hold the City harmless against any claims made and/or any suit against the City which may arise as a result of its deductions for membership dues or other programs sponsored by the Union.

2.2 New Hire Employee O
rientation and Information Requirements

(a) In accordance with Assembly Bill (AB) 119, the City shall provide the Union i) not less than ten (10) days’ notice in advance of new hire employee orientation, and ii) within thirty ( 30) days of hire or by the first pay period of the month following hire a list containing the following information on file from the City’s Human Resources database system.

1. Name;

2. Job title;

3. Department;

4. Work location;

5. Personal cellular telephone numbers, including work and home;

6. Personal email addresses as provided by new hire employee; and

7. Home address.

The above information shall be updated and provided to the Union at least every one-hundred and twenty (120) days for all bargaining unit members.

2.3 Use of City Fac
ilities
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(a
) The Union shall be allowed by the department in which it represents employees' use of space on available bulletin boards for communications having to do with official Union business, such as times and places of meetings, provided such use does not interfere with the needs of the department. The Union may submit to the City Employee Relations Officer written communications having to do with official Union business for distribution by the City to identified Union shop stewards. Distribution may be made by e-mail.

(b) Any representative of the Union shall give notice to the department head or designated representative when contacting department employees on City facilities during the duty period of the employees, provided that solicitation for membership or o ther internal Union business shall be conducted during the non-duty hours of all employees concerned. Pre-arrangement for routine contact may be made with individual department heads and when made shall continue until revoked by the department head.

(c) City buildings and other facilities may be made available for use by City Employees of the Union or their representatives in accordance with such administrative procedures as may be established by the City Manager or depart - ment heads concerned.

2.4 Advanc
e Notice

Except in cases of emergency, reasonable advance written notice shall be given to the Union if affected by any ordinance, resolution, rule , or regulation directly relating to matters within the scope of representation proposed to be adopted by the City and shall be given the opportunity to negotiate if requested with the designated management representatives prior to adoption.

In cases of emergency, when the foregoing procedure is not practical or in the best public interest, the City may adopt or put into practice immediately such measures as are required. At the earliest practicable date thereafter , the Union shall be provided with the notice described above and be given an opportunity, if requested, to negotiate changes to said notice with the management representatives designated by the City Manager.

2.5 Attendance at Meetings by Employees

City employees who are official representatives or unit representatives of the Union shall be given reasonable time off with pay to attend meetings wit h City management representatives, or where matters within the scope of representation EXHIBIT 1
or
grievances are being considered. Such employee representatives shall submit a request for excused absence to their respective department heads, in a manner satisfactory prior to the scheduled meeting whenever possible. Time spent for these purposes while a representative is not scheduled to work shall not be compensated by the City and shall not be considered as hours worked. Except by mutual agreement, the number of the employees excused for such purposes shall not exceed three (3) per recognized bargaining unit.

2.6 Maintenance of Membership

All employees in the Wat
er Supervisory Unit who are members of the Union,
tendering periodic dues at the execution of this agreement, and all employees who thereafter become members of the Union shall, as a condition of employment, pay dues to the Union for the duration of this MOU , and each year thereafter. For a period of thirty (30) days prior to January 1, 2009, and thirty (30) days prior to any January 1, thereafter, any employee in the aforementioned unit who is a member of the Union shall have the right to withdraw from the Union discontinuing dues payments and retain employment in the City . Said withdrawal shall be communicated by the employee in writing to the City. The provisions of this section shall be operative only to the extent that they are permissible under California law.

2.7 Assignment of Classifications

New job classifications established by the City shall be assigned to the bargaining unit pursuant to Section 8 (b) of the City ’s Employer -Employee Relations Resolution after providing notice and the opportunity to consult with the Union regarding such matters.

2.8 Contract Ratificati
on

Ratification votes for Contract will be handled on City time during the day.

Section 3. Compliance with Federal Laws/Safety

3.1 Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind on the basis of age (over 40), race, color, religion (creed), national origin (ancestry), military or veteran status, physical and mental disability, medical condition, genetic information, marital status, sexual orientation, sex (gender based including pregnancy/childbirth, breastfeeding or related medical conditions), gender identity/expression, political affiliation or legitimate union activity or on any other basis prohibited by applicable F ederal and State law against any employee or applicant for employment.

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3 .2 Fair Labor Standards Act. The Union agrees to cooperate with the City to insure its members ’ compliance with the provisions of the Fair Labor Standards Act (FLSA).

3.3 Safety. The Union shall cooperate with the City in promoting safety objectives as defined in Federal, State, and local regulations by actively supporting safety programs, promoting safe work habits of members , and encouraging an ongoing, active participation by its members in safety-related procedures and practices as offered and promulgated by the City of Stockton.

Section 4. Probation

4.1 Purpose

The probationary period shall be utilized for closely observing the employee’ s work, for securing the most effective adjustment of a new employee to a position, and for rejecting any probationary employee whose performance does not meet the required standards of work.

4.2 Original Entrance and Promotional Positions

All original appointments shall be subject to a probationary period of one (1) year with a review completed after si x (6) months from date of original appointment.

Promotional appointments shall be subject to a probationary period of six (6) months. The probationary period for original and promotional appointments will not be extended.

4.3 Retention/Rejection of Probationer

At the end of the probationary period, if the service of the probationary employee has b
een satisfactory to the appointing authority, the appointing authority shall file with the Director of Human Resources a statement in writing to such effect and stating that the retention of such employee in the service is desired. The City will make a good faith effort to notify a probationary employee two (2) weeks before the end of the probationary period whether or not regular status is granted; however, a failure on the part of the appointing authority to file such a statement at the end of the probationary period shall not constitute a rejection of the probationer as defined in Civil Service Rules.

Dur
ing the probationary period an employee may be rejected at any time by the appointing authority. Any employee rejected during the probationary period following a promotional appointment, shall be reinstated to the position from which promoted unless charges are filed and the employee is discharged in the manner EXHIBIT 1
pr
ovided in section 7 of this MOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

4.4 Alcohol and Drug Testing.

All employees hired into original and reemployed appointments in safety-sensitive positions identified by the City must pass a drug and alcohol screening prior to being offered City employment due to positions requiring a commer cial driver’s license or hazardous material certification. This shall include non-represented part- time, seasonal, provisional, and temporary appointments.

Section 5. Layoff

5.1 Layoff

Any employee may be laid off by an appointing authority in the event of the abolition of the employee’s position by the City Council, or if a shortage of work or funds requires a reduction in personnel.

5.2 Layoff Scope

(a) Layoffs shall be within departments of the City.

(b) Departments of the City are defined as follows:

(1) Administrative Services
(2) City Attorney
(3) City Auditor
(4) City Clerk
(5) City Manager
(6) Community Development
(7) Community Services
(8) Economic Development
(9) Fire
(10) Human Resources
(11) Information Technology
(12) Municipal Utilities
(
13) Police
(14) Public Works

5.3 N
otice of Layoff

The City will give advance written notice of at least one (1) pay period to employees EXHIBIT 1
wh
o will be laid off.

5.4 Precedence by Employment Status

(a) No regular status employees shall be laid off while employees working in an extra help, seasonal, temporary, provisional, or probationary status are retained in the same classification as such regular status employee. The order of layoff among employees not having regular status shall be according to the following categories:

(1) extra help or seasonal
(2) provisional
(3) temporary
(4) probationary

Layoffs shall be by job classification according to reverse order of seniority as determined by total service in that class , except as specified above. For the purpose of this procedure part-time classes shall be considered as separate from regular full-time classes.

The following provisions shall apply in computing total continuous service:

(1) Time worked in a regular status or probationary
status shall count as service.
(2) Time spent on military leave shall count as
service in the event the leave was taken
subsequent to entry.
(3) Time worked in an extra help, seasonal,
provisional, temporary, grant or other limited
term status shall not count as service.

If two (2) or more employees have the same seniority, the order of seniority shall be determined by their respective ranking on the eligibility list for hire.

If two (2) or more employees have the same seniority, but were not hired from a ranked eligibility list, the order of seniority shall be determined by lot.

If two (2) or more employees have the same seniority, but were hired from separate ranked eligibility lists, the order of seniority shall be determined by lot.

(b) Any employee in the Water Supervisory Unit who is laid off may complete a City employment application for any position currently staffed by a part time, EXHIBIT 1
provisional, or temporary employee. The Human Resources Department will evaluate the employment application. If the laid off employee meets the minimum qualifications of that position, they shall have the option of displacing the part time, provisional, or temporary employee.

5.5 Employee Options

Employees laid off shall have any of the following choices:

(a) Displacing the employee in the same department and in the same or clearly comparable classification as determined by the Director of Human Resources as having the least seniority in that classification. This option shall be exercised before any other option.

(b)
Taking a voluntary demotion within the department to a classification in which the employee had prior regular status, thus displacing the employee working in the classification who has the least seniority in that classification.

5.6 Health and Welfare Benefits during Layoff

Regular status employees who are laid off will have an option of maintaining their existing health and welfare benefi ts for thirty -six (36) months from the date of layoff, provided timely payments of the premiums by the employee are made to the City, according to City regulations, and provided the employee otherwise meets the requirements of Federal and State regulations.

Section 6. Reemployment
(a) The name of each employee who is laid off in accordance with section 5 shall be placed at the head of the eligibility list for the class of positions which that employee held, and shall be given preference in filling vacancies in that class.

(b) An employee laid off in accordance with this section shall be placed on the eligibility list or lists for any lower or comparable class or classes in the same department, provided that the appointing authority and the department head in charge of this lower or comparable class determine that the employee is competent to perform the duties thereof in strict accordance with the class specifications. This right of a laid off employee shall remain effective for two (2) years from the date of latest separation from the service. The employee shall not be placed on said eligibility list or lists without first submitting a written request. Employee’s place on said list or lists shall be at the head of the eligibility list for the class of positions for which qualified as hereinabove set forth and shall be given preference in filling vacancies except for those persons placed on said list or lists of reemployment in EXHIBIT 1
t
he same positions previously held. An employee who waives reemployment to a full time position three (3) times shall have their name removed from this reemployment list unless mutually agreed to by the Department and employee.

Upon certification for appointment to a new position never having been held by this employee, the probationary period must be completed as required in this MOU.

Section 7. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

Expungement of records will be considered in accordance with the City’s Progressive Discipline Policy, HR-08. Memorandums of Discussion or Correction maintained in Department files may be requested to be removed, subject to the Department Head’s approval.

7.1 Pre-d
isciplinary Rights

An employee facing potential disciplinary action will be entitled to the following pre- disciplinary rights:

(a) Notice of proposed discipline.

(b) Date(s) proposed discipline will be effective.

(d) Ten (10) calendar days in which an employee or the representative may respond either orally or in writing to the department head.

(e) The employee must be provided with any written materials, reports and documents upon which the action is based.

7.2 Administrative Leave

The City may place an employee on administrative leave with pay pending the completion of the pre-disciplinary process.

7.3 Provisions

The appointing authority may discharge, suspend, or demote any employee in the classified service provided the Stockton Municipal Code provisions and the rules and regulations of the Civil Service Commission and any applicable provisions of EXHIBIT 1
l
aw are followed. Such provisions allow the employee suspended, demoted or discharged to appeal such action. The employee may take only one (1) of the following actions:

(a) File no appeal.

(b) File an appeal with the Civil Service Commission within ten (10) calendar days of written notification of the action. (Such filing will foreclose use of the grievance procedure.)

If the employee fails to do (b) or (c) above within the prescribed time frames, these rights will have been waived.

Section 8. Grievance Procedures

8.1 Definition

A grievance is any dispute which involves the interpretation or application of those rules, regulations and resolutions which have been, or may hereafter be, adopted by the City Council to govern personnel practices and working conditions, including such rules, regulations and resolutions as may be adopted by either the City Council or the Civil Service Commission to affect Memoranda of Understanding which result from the meeting and conferring process.

8.2 Filing Deadline

(a) No grievance involving demotion, suspension, discharge or other em
ployment penalty will be entertained unless it is filed in writing with the Director of Human Resources within ten (10) calendar days of the time at which the affected employee received written notification of such action. All other grievances must be filed within thirty (30) calendar days from the time the employee knew or had reason to know of the facts giving rise to the grievance.

(b)
With written consent of the Director of Human Resources or their designee and the Union Business Agent or their designee, time limits may be extended and/or Steps 1, 2 and/or 3 of the Grievance Procedure waived.

8.3 Grievance Processing

(a) Step 1 - Departmental Review. Any employee claiming to have a grievance EXHIBIT 1
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ay discuss the complaint with such manageme nt official in the department where employed as the department head may designate. If the issue is not resolved within the department within twenty (20) working days from the day of presentation or if the employee elects to submit the grievance directly to the Union recognized as the representative of that employee's classification, or if the employee/Union official notifies the Director of Human Resources, in writing, that a grievance exists, the procedure hereinafter specified may be invoked.

(b) Step 2 - Director of Human Resources Review. If the employee is not satisfied with the response at Step one (1), then the employee may appeal the grievance to the Director of Human Resources within twenty (20) calendar days of the receipt of written response at Step one (1). Such appeal must state with particularity: 1) the specific policy, rule, or provision which is alleged to have been violated; 2) the statement of fact s comprising the violation; and 3) the requested remedy. The Union may file and process grievance(s) on behalf of the specifically named employee. The Director of Human Resources shall have twenty (20) working days (in which the Human Resources Office i s open) to investigate the issues, meet with the complainant , and attempt to reach a satisfactory resolution of the problem. No grievance may be processed under the following two (2) paragraphs which has not first been filed and investigated in accordance with this paragraph, except for the resolution of compensation complaints.

(c) Step 3 -
Arbitration. If the parties are unable to reach a mutually satisfactory accord on the grievance at Step two (2) within twenty (20) calendar days either the Union or the City may require that the grievance be referred to an impartial arbitrator mutually selected by the parties, or if the parties are unable to mutually agree, from a list of seven (7) arbitrators provided by the State Conciliation Service.

The arbitrator shall be chosen by the alternative strike method, with first choice being determined by lot. The fees and expenses of the arbitrator and of a court reporter shall be shared equally by both parties. Each party, however, shall bear the cost of its own presentation, including preparation and post hearing briefs, if any.

(d) Effect of Decision. Decisions of ar
bitrators on matters properly before them
shall be final and binding on the parties hereto except as provided otherwise herein.

8.4 Scope of Arbitration

(a) No arbitrator shall entertain, hear, decide or make recommendations on any dispute unless such dispute involves a position in a unit represented by the Union and unless such dispute falls within the definition of a grievance as set forth in EXHIBIT 1
se
ction 8.1.

(b) Proposals to add to or change this MOU or written agreements or addenda supplementary hereto shall not be arbitrable and no proposal to modify, amend or terminate this MOU, nor any matter or subject arising out of or in connection with such proposal, may be referred to arbitration under this s ection. No arbitrator selected pursuant to this section shall have the power to amend or modify this MOU or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment.

No changes in this MOU or interpretations thereof (except interpretations resulting from arbitration proceedings hereunder) will be recognized unless agreed to by the Director of Human Resources and the Union.

8.5 Other Provisions

If the Director of Human Resources or City Manager, in pursuance of the procedures outlined above, resolve a grievance which involves suspension or discharge, they may agree to payment for lost time or to reinstatement with or without payment for lost time, but in the event the dispute is referred to arbitration and the arbitrator finds that the City had cause to take the action complained of, the arbitrator may not substitute th eir judgment for the judgment of management and if the findings are that the City had such right, the arbitrator may not order reinstatement and may not assess any penalty upon the City.

Com
plaints which allege the employee is not being compensated in accordance with the provisions of this MOU shall be considered as grievances and processed pursuant to section 8.3. Any other matters of compensation are to be resolved in the meeting and conferring process and if not detailed in the MOU which results from such meeting and conferring process shall be deemed withdrawn until the meeting and conferring process is next open for such decision. No adjustment shall be retroactive for more than one-hundred and eighty (180) calendar days from the date upon which the complaint was filed.

Specified time limits may be modified only in writing. All appeals and responses must be provided in writing.

A grievant will be provided release time without loss of pay for all required meetings with management. The City cannot discriminate or retaliate in any manner against an employee for filing a grievance or exercising rights under this Section.

The provisions of this section shall not abridge any rights to which an employee EXHIBIT 1
m
ay be entitled under the Stockton Municipal Code and/or Civil Service Rules and Regulations, nor shall it be administered in a manner which would abrogate any power which, under the Stockton Municipal Code, may be within the sole province and discretion of the Civil Service Commission.

All grievances of employees in units represented by the Union shall be processed under this section. If the Stockton Municipal Code and/or the Civil Service Rules and Regulations requires that a differing option be available to the employee, no action under paragraph (c) of subsection 8.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of subsection 8.3 above shall be taken if action on the complaint or grievance has been taken by the Civil Service Commission or if the complaint or grievance is pending before the Civil Service Commission.

If any award by an ar
bitrator requires action by the City Council or the Civil Service Commission before it can be placed in effect, the City Manager and the Director of Human Resources will recommend to the City Council or the Civil Serv ice Commission, as appropriate, that it follow such award.

Section 9. Leaves

9.1 Vacation Leaves

All regular status employees, excluding provisional , temporary , and part -time employees, shall accrue vacation leave with pay in accordance with the following schedules:

(a) Vacation- FLSA Non-Exempt employees shall accrue vacation leave with pay in accordance with the following schedule:

(1) Less than one and one- half (1- 1/2) years continuous employment .............................................................. 80 hours/year.

(2) After one and one- half (1-1/2) to seven and one- half (7-1/2) years continuous employment ................................ 108 hours/year.

(3) After seven and one- half (7- 1/2) to fifteen (15) years continuous employment .......................................... 144 hours/year.

(4) After fifteen (15) to twenty -five (25) years continuous employment ............................................................ 189 hours/year.

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(5
) Thereafter, seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.

(6) Employees shall accrue vacation on a per pay period basis.

(b) FLSA N on-E xempt Employees Maximum Vacation Accrual Employees reaching the maximum hours shall stop accruing additional hours until they are below the caps listed below . No vacation hours maybe added to sick leave and balances.

Max
imum Vacation Accrual Caps.

40 hour employee
Under 1.5 yrs 120 hours (15 days)

1.5-7.5 yrs 240 hours (30 days)

7.5-15 yrs 280 hours (35 days)
15-25 yrs 320 hours (40 days)
26 yrs 328 hours (41 days)
27 yrs 336 hours (42 days)
28 yrs 344 hours (43 days)
29 yrs 352 hours (44 days)

For every year of service beyond 29, the employee is allowed to add an additional seven (7) hours to the maximum accrual cap.

(c) Vacation-FLSA Exempt employees shall accrue vacation leave with pay in accordance with the following schedule:
(1) Less than 1-1/2 years continuous employment 120 hours/year (2) After 1-1/2 years up to 7 1/2 years 1 48 hours/year (3) After 7-1/2 years up to 15 years 188 hours/year (4) After 15 years up to 25 years 229 hours/year (5) Seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.
(6) Employees shall accrue vacation on a per pay period payroll basis.

(d) FLSA Exempt Employees Maximum Vacation Accrual. Employees reaching the maximum hours shall stop accruing additional hours until they are below the caps listed here. No vacation hours may be added to sick leave balances.

The maximum number of vacation hours that FLSA exempt employees shall accrue are as follows:

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U
nder 1.5 years 200 hours

1.5 – 7.5 years 320 hours

7.5 – 15 years 360 hours
15 – 25 years 400 hours
25 years 408 hours
26 years 416 hours
27 years 424 hours
28 years plus 7 hours each additional year

(e) An employee may elect to receive cash payment for up to a maximum of forty (40) hours of accumulated vacation hours annually except that all cash outs shall be suspended during furlough or fiscal emergency periods, however, effective for FY 2023/2024 and 2024/2025 only, an employee may elect to receive a cash payment for a maximum of forty (40) hours of their unused accumulated vacation balance after the use of a scheduled vacation of forty (40) consecutive hours or more in that same or prior fiscal year. To utilize this option, employees must maintain a balance of forty (40) accrued vacation hours after the cash payment. When in effect, this option may be exercised once per fiscal year. Employees may elect this option by December 31 of each year for the cash out the following calendar year. The cash out election is irrevocable and the City will follow IRS regulations regarding cash payment of leave.

(f) Vacation Cash Out Upon Separation.

An eligible employee separating from City service for any reason who has unused vacation time shall be paid for such vacation time up to the effective date of the last day of employment with the City. Payment for unused vacation shall be made at the final rate of pay. Payment for the unused vacation hours shall be paid post separation date at no later than the second regularly scheduled pay period pay date following separation. Prior to separation from City service, the City does not provide to employees any vacation cash out or sell back for accrued but unused vacation hours.

(g) Vacation Scheduling.

Vacation leaves will be scheduled so that they will not interfere with the normal operation of the City’s business and with due consideration for the wishes of the employee. Each division will prepare its vacation schedule and distribute to all employees within the unit.

9.2 Sick Leav
e

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(a
) Accrual . A ll regular st atus full-time employees , except provisional , and temporary employees, shall accrue sick leave at the rate of eight (8) hours for each month of completed service.

Al
l regular status employees, except provisional , and tem porary employees, scheduled to work less than a full month shall accrue sick leave on a prorated basis. Unused sick leave shall accrue from year to year. Employees shall continue to accrue sick leave while off duty on authorized sick leave; provided, however, an employee shall not accrue sick leave during any leave or leaves of absence without pay granted to the employee.

(b) Usage. Employees are entitled to sick leave pay for those days which the employee would normally have worked, to a maximum of the hours accrued, described as:

Pr
eventive medical, dental, optical care, illness, injury or exposure to contagious disease which incapacitates the employee from performing normal work duties.

This includes disabilities caused or contributed by pregnancy, miscarriage, abortion, childbirth and recovery therefrom.

(c) Family Sick Leave . E
mployees may utilize up to one- half (1/2) of their
annual sick leave accrual in the case of illness or injury in the employee's immediate family when such illness or injury requires personal care.

Suc
h leave shall be restricted to the employee's parents, spouse, mother -in-law, father-in-law, child, stepchild, brother, sister, brother -in-law, sister -in-law, grandparent, grandchild, legal depend ent, registered domestic partner, and “designated person.” For purposes of paid sick leave, a “designated person” means “a person identified by the employee at the time the employee requests paid sick leave.” An employee may select one person as a “designated person” in a twelve (12) month period.

In special cases, with the approval of the Director of Human Resources, a department head may grant the use of sick leave in other circumstances.

It is not the intent of this provision to conflict with any state or federally mandated policies, such as the Family Medical Leave Act (FMLA), the California Family Rights Act (CFRA), or Pregnancy Disability Leave (PDL).

(d) Reporting Procedures for Sick Leave. When the requirement for sick leave is known to the employee in advance of the absence (for example, including but not limited to scheduled medical, dental or vision appointments), the employee EXHIBIT 1
s
hall request authorization for such sick leave from the department head prior to such absence. In all other instances, the employee shall notify their supervisor as promptly as possible of his/her absence.

(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a signed statement to the department head, on a prescribed form, stating the dates and hours of absence, the exact reason, and such other information as is necessary for the request to be evaluated. If an employee doesn't return to work prior to the preparation of the payroll, other arrangements may be made with the department head.

(2) Doctor's Certificate or Other Proof .

The employee’s department
head may require a doctor’s certificate or other reasonable proof of illness as they deem necessary i n order for an employee to receive an excused absence from work and sick leave pay. The employee shall be given notice prior to returning to work that they will be required to provide such documentation. Employees who have unscheduled absences due to illness on a scheduled work day preceding or following a holiday may be required to bring a doctor’s certificate or other reasonable proof of illness in order to receive an excused absence and sick leave pay. If an employee’s illness results in an absence from work for more than three (3) consecutive days, a doctor’s certificate or other reasonable proof of illness may be required.

In addition, the City may monitor and control the appropriate use of sick leave by employees and if reasonable cause is articulated, can limit use of sick leave and require additional verification.

(f) Use of Sick Leave While on Vacation. An employee who is injured or who becomes ill while on vacation may be paid for sick leave in lieu of vacation provided that the employee:

(1)
Was hospitalized during the period for which sick leave is claimed, or

(2) Received medical treatment or diagnosis and presents a statement indicating disabling illness or injury signed by a physician covering the period for which sick leave is claimed.

(g) Payment for Unused Sick Leave for Unit Employees .

Effective February
17, 2012, all accumulated or future accruals of sick leave shall have no cash value upon separation of employment and employees shall not be allowed to cash out EXHIBIT 1
unus
ed sick leave except as provided below.

(h) CalPERS Service Credit for Unused Sick Leave. E mployees shall be eligible for CalPERS service credit for any unused sick leave at retirement not otherwise compensated for in (i) below. Employees hired on or after December 29, 2012 shall not be eligible for this service credit.

(i) Sick Leave Retention Benefit. If,
after subtracting the equivalent of one (1)
full year of service credit (2080 hours), which may be applied to CALPERS service credit, any balance remaining upon separation shall be paid as follows to employees who have remained in City service until the dates specified:

(1)
Separation prior to July 1, 2014, no payment of unused sick leave at separation shall occur for separating employees before this date;

(2) Separation between July 1, 2014 and June 30, 2015, payment of unused sick leave which the employee held on February 16, 2012 shall be paid at thirty-five percent (35%) of its cash value to separating employees between these dates; and

(3) Separation after July 1, 2015, payment of unused sick leave which the employee held on February 16, 2012 shall be paid at fifty percent (50%) of its cash value to separating employees after this date.

(4) Service credit for unused sick leave shall be in accordance with PERS regulations.

9.3 Other Leaves with Pay

(a) Bereavement Leave. In the event of a death in the immediate family of an employee, the employee shall, upon request , be granted up to three (3) days bereavement leave with pay without charge to their accumulated sick leave. The employee shall, upon request, be granted an additional two (2) days bereavement leave which shall be charged against the employee’s accumulated sick leave or annual leave. For the purposes of this paragraph, the immediate family shall be restricted to the employee’s parents, spouse, mother -in-law, father-in-law, child, stepchild, brother, sister, brother -in-law, sister -in-law, grandparent, grandchild, and registered domestic partner.

In t
he event of the death of a person not immediately related to an employee as defined above, the employee's department head may grant up to three (3) days bereavement leave, upon request, which shall be charged against the employee's EXHIBIT 1
ac
cumulated sick leave or annual leave.

Bereavement Leave will not be counted against the employee under the City’s absence control policy when evaluating the employee’s work performance. If the deceased is the person who is the employee’ s current “designated person” for purposes of family sick leave pursuant to Section 9.2(c), the request to use sick leave or annual leave shall not be unreasonably denied.

(b) Court A
ppearance. Upon approval by the department head, an employee, other than a provisional or temporary employee, shall be permitted authorized absence from duty for appearance in Court because of jury service, in obedi ence to subpoena or by direction of proper authority, in accordance with the following provisions:

Sai
d absence from duty including necessary travel time, will be for actual hours served on jury duty or testif ying as a witness in a criminal case, other than as a defendant. This shall include the time from when the employee is ordered to appear until the time the employee is released from the court. As a condition of receiving such pay, the employee must remit to the City, through the employee's department head, within fifteen (15) days after receipt, all fees received except those specifically allowed for mileage and expenses.

If an employee is not due to appear for jury duty or as a witness until an afternoon court session, the employee will be expected to work their usual morning schedule.

If an employee is required to appear for a morning court session and is sent home before noon and not required to return in the afternoon, the employee will be expected to work his usual afternoon schedule.

Said absence from duty will be without pay when the employee appears in private litigation to which the City of Stockton is not a party.

Any fees allowed, except for reimbursement of expenses incurred, shall be remitted to the City through the employee's department head.

Notwithstanding the foregoing, attendance in court in connection with an employee's official duties or on behalf of the City of Stockton in connection with a case in which the City of Stockton is a party, together with travel time necessarily involved, shall not be considered absent from duty within the meaning of the section.

(c) Military Leave. An employee of the City who is a member of the National Guard or Naval Militia or a member of the Reserve Corps or Force of the Federal EXHIBIT 1
M
ilitary, Naval or Marine Service and is ordered to duty shall be granted leave with pay while engaged therein, provided the leave does not exceed thirty (30) days in any calendar year.

All regular status employees in the service of the City shall be allowed leave of absence without pay for duration of a national emergency who have been inducted into the Army, Navy, Marine Corps, Air Force or any other branch of the Military Service of the United States or the State of California. Said employees shall be reinstated in the position they held when they were inducted into Military Service, except as hereinafter stated, providing they are physically fit as shown by a medical examination by the City Physician or other physician appointed to make a medical examination.

In the case of a probationary employee having served a minimum probationary period of six (6) months at the time of induction, it shall be optional with the department head and the Director of Human Resources to grant regular status to said employee before induction.

All probationary employees inducted into Military Service not having served the minimum probationary period of six (6) months, or having served the minimum probationary period of six (6) months, but not having received regular status shall be allowed a leave of absence without pay for the duration of a national emergency, but said employees shall be placed at the head of the eligible list for such position in the order of their seniority of employment and when appointed to a vacant position, they must be physically fit as above specified and shall serve the balance of their probationary period before attaining the status of a regular status employee.

Two (2) or more regular status employees granted a military leave of absence without pay from the same position shall be reemployed according to their seniority of employment providing they are physically fit as above specified.

9.4 Workers' Compensation Leave

(a) Benefits. Workers’ Compensation benefits shall be provided in accordance with State law, whenever an employee is absent from duty because of disability caused by illness or injury which has been declared to be compensable under the Workers’ Compensation Law. An employee on Workers’ Compensation may use accrued leave, if needed, to supplement benefits, up to the amount required to receive a full paycheck.

(b) Forms and Procedures. Workers’ compensation processing shall be EXHIBIT 1
c
onsistent with City procedures and in accordance with state workers’ compensation regulations. An employee who sustains a work -related injury or illness shall immediately inform their supervisor no matter how minor an on- the- job injury may appear. An employee who sustains a work -related injury or illness is required to seek medical care at facilities designated by the City unless they have filed a pre- designation of personal physician prior to sustaining the work - related injury or illness. For a list of City designated medical care facilities and/or physicians, please contact the Human Resources department.

9.5 Leave of
Absence

(a) Entitlement. E mployees shall not be entitled to a leave of absence as a matter of right, but only in accordance with the provisions of law and the City of Stockton Municipal Code. Unless otherwise provided, the granting of a leave of absence also grants to the employee the right to return to a position in the same classification or equivalent classification, as the employee held at the time the leave was granted. Leaves of absence are subject to eligibility in accordance with state and federal guidelines. The granting of any leave of absence shall be based on the presumption that the employee intends to return to work upon the expiration of the leave.

(b) Approval.

All leaves of absence without pay must be pre- approved by the department head and filed with the Human Resources Department. No such leave may extend beyond twelve (12) months, except in the case of absence due to job incurred disability where a determination may be made based upon the needs of public service, or in the event an application for service connected disability retirement has been filed.

(c) A
ll leaves without pay must be recommended by the department head and approved by the Director of Human Resources. Leaves of absence approved in accordance with state and federal guidelines may be taken without pay for illness following the exhaustion of accrued sick, vacation, and other accrued leave hours.

(d) City payment of premium shall end on the last day of the month in which the employee was paid except that employees on an authorized leave of absence may continue enrollment in the City health and dental insurance plan by prepayment of the monthly premium during the authorized leave of absence.

(e) Authorized absence without pay which exceeds thirty (30) consecutive calendar days, except military leave, shall not be included in determining salary adjustment rights, based on length of employment. Periods of time during which an employee is required to be absent from their position by reason of an injury or EXHIBIT 1
di
sease for which they are entitled to and currently receiving Workers' Compensation benefits shall be included in computing length of service for the purpose of determining that employee's salary adjustment.

9.6 A bsence Without Official Leave (AWOL)

(a) Failure to Report to Duty or Failure to Return after Leave. Failure to report for duty or failure to report for duty after a leave of absence request has been disapproved, revoked, or canceled, or at the expiration of a leave, shall be considered an absence without official leave and shall be subject to discipline.

(b) Voluntary Resignation. Any employee absent without official leave for two (2) or more consecutive scheduled days without a satisfactory explanation as approved by the Director of Human Resources shall be deemed to have voluntarily resigned from the City of Stockton. An employee must provide a written statement to the Human Resources Department regarding a "satisfactory explanation", within ten (10) calendar days after the City mails a notice of voluntary resignation to the employee's last known address.

9.7 Parental/Adoption/Pregnancy Leave

Family medical leaves shall be in accordance with the Family Medical Leave Act (“FMLA”) of 1993, the California Family Rights Act (“CFRA”), or Pregnancy Disability Leave (“PDL”), and/or other applicable state and federal laws.

Section 10. Days and Hours of Work

10.1 Workweek

The forty (40)-hour workweek shall be from Sunday at midnight through the following Saturday at midnight. The 9/80 workweek shall be from Friday at middle of regular shift through the following Friday at middle of regular shift.

10.2 Meal Periods and Rest Periods

(a) Employees shall receive a one (1) hour or one- half (1/2) hour meal period, without pay, each day and a fifteen (15) minute paid rest period during the first half of the work day and a second fifteen (15) minute paid rest period during the second half of the work day.

(b) Where operational requirements of a department require deviations from this schedule, meal periods of other durations and alternate rest periods may be instituted with the approval of the Department Head or Designee.

EXHIBIT 1
S
ection 11. Overtime

11.1 Overtime Authorization

All compensable overtime m ust be authorized by the department head or their designated representative in advance of being worked. If prior authorization is not feasible because of emergency conditions, a confirming authorization must be made on the next regular working day following the date on which the overtime was worked.

11.2 Definition

The following provisions pertaining to authorized or statutorily required overtime work shall apply to non- FLSA exempt employees:

(a) Statutory overtime shall be paid on actual time worked in excess of forty (40) hours in any workweek. Such overtime sh all be paid for at time and one- half (1-1/2) including employees employed on a per hour or per day basis or except as provided elsewhere herein. Observed holidays, floating holidays, jury duty leave, bereavement leave, and sick leave hours taken shall be considered as time worked for overtime calculation purposes . V acation, or other compensated time off shall not be considered as actual time worked.

(b) On a holiday observed by the City an employee who is not regularly scheduled to work holidays shall be paid for a regular work day (pursuant to holiday benefit under section 12) plus time and one- half (1 -1/2) for actual time worked including employees employed on a per hour or per day basis, or except as provided elsewhere herein.

(c) The City may require mandatory overtime when operational needs o f the City dictates the need to work such overtime. Work in excess of forty (40) hours worked as defined in (a) above in any workweek that qualifies for overtime will be paid or taken as Compensatory Time-off (CTO) in accordance with section

11.5(b).

(d) Temporary Upgrade Pay.

Employees who are not FLSA exempt and are assigned to work overtime in a position or classification other than the position or classification to which they are permanently appointed to, will be paid overtime at the hourly rate attached to the position or classification in which they are performing such overtime work.

11.3 Standby Duty
EXHIBIT 1
W
hen warranted and in the interest of City operation, department heads or designee may assign employees to "standby" status.

(a) Application of "standby" shall be as follows:

(1) Each employee so assigned to "standby" shall be provided with a communication device while on standby and shall be able to report to the work site with best efforts within thirty (30) minutes; in no event longer than forty-five (45) minutes.

(2) Employees on standby shall have the option to trade hours of standby status with another qualified employee in the same unit or division with departmental approval.

(3) Standby shall be assigned in a minimum of eight (8) hours.

Standby for weekends i.e., Saturday, Sunday or extended holiday weekends (Friday – Sunday, or Saturday – Monday) will be assigned eight (8) – forty-eight ( 48) hour blocks to one (1) person per weekend (up to seventy-two (72) hours for holiday weekend).

(b) Compensation of "standby" shall be as follows:

(1) Employees assigned to standby duty shall be paid three dollars ( $3.00) per hour , while assigned to be on standby. An employee shall earn time and one- half (1- 1/2) for all actual time worked while on standby duty status only if eligible for overtime as defined in section 11.2 above. An employee shall not continue to receive the “standby” premium during actual time worked, or for any hours paid as overtime or call back. Standby is not considered as time in “paid status because of work performed” for purposes of calculating overtime.

11.4 Call Back

Employees called back to work from off duty status, shall be compensated for a minimum of two (2) hours and forty -five (45) minutes pay at time and one- half (1- 1/2) or actual time worked at time and one- half (1-1/2) if eligible for overti me as defined in Section 11.2, above, whichever is greater.

When authorized by the department, employees who are contacted and who provide remote support via telephone, internet, or network connection will be paid EXHIBIT 1
t
ime and one-half (1-1/2) for time worked in fifteen (15) minute intervals, if eligible for overtime as defined in section 11.2 above. Intervals cannot be compounded or overlapped.

To be eligible for call-back pay, all of the following conditions must be met:

(a) The call -back must occur outside of the employee’s regular work hours; including overtime.

(b) The call-back time worked must not be contiguous to the employee’s regular work hours; including overtime.

(c) An employee is ineligible to receive a premium for both standby and call back. For example, employees shall not receive standby pay for hours in which they are paid overtime or call back pay.

11.5 Compensatory Time

(a) Definition. A s used in this section, the term Compensatory Time refers to that time which an employee is entitled to be absent from duty with pay for hours worked in addition to or excess of their normal work schedule.

(b) Accrual . F
or hours worked in excess of forty (40) hours in a seven (7) day work period as defined in section 11.2(a) , Compensatory Time shall be earned at the rate of time and one-half (1-1/2).

Use of Compensatory Time shall be scheduled with the due consideration for the wishes of the employee and so as to not interfere with the normal operation of City business. Approval of request for use of Compensatory Time shall be at the sole discretion of the department head, but once approved, cannot be changed unless an emergency situation arises.

(d) P
ayment . Once one hundred (100) hours of Compensatory Time is accrued on the books, all other hours worked in excess of forty (40) hours in a seven (7) day work period will automatically be paid. At the end of each calendar year, all Compensatory Time will be carried forward (forty (40) hours maximum), unless the employee elects to have the compensatory balance paid. Carryover Compensatory Time cannot exceed the forty (40) hours maximum.

Any
Compensatory Time balance in excess of forty (40) hours remaining at the EXHIBIT 1
end
of the calendar year wi ll automatically be paid unless the employee submits the Compensatory Time Deferral form to Payroll by November 1st. In order for the employee to be eligible for this option, they must have at least one (1) pre- approved scheduled day off in December. If the employee is unable to take days off as planned in December, the payout will occur in January.

11.6 Meal Allowance

The City shall provide a meal allowance of fifteen dollars ($15.00) for an employee who is held over and works a minimum of four (4) hours. Employees called back to work or called back from a day off with less than two (2) hours’ notice shall qualify for the f ifteen dollar ($15.00) meal allowance when they work a minimum of four (4) hours. Extension of the work schedule or call -back must be properly authorized by the employee's supervisor or other designated personnel.

Section 12. Holidays

12.1 Qualifying for Holiday Pay

All regular status employees, excluding provisional , temporary, and part -time employees, shall be entitled to take the holiday benefit at full pay not to exceed the employee’s regular work day for any one (1) holiday. For an employee working on a 4/10, 9/80 or 12- hour work day plan, holidays shall be paid equivalent to the employee’s regularly scheduled work hours (e.g. 9 hours for 9- hour day or 8 hours on an 8- hour day on the 9/80 schedule, or 12 hours of holiday pay for 12- hour shift).

12.2 Holidays Observed by the City

Effective January 1, and upon approval by the City Council on its regular agenda in accordance with the Ralph M. Brown Act employees shall receive the following holidays on full pay for each of the below listed holidays . Unless otherwise provided in this section, the City observes the following holiday s on the dates indicated:

(1) January 1………… .................................................................. New Years' Day (2) Third Monday in January (FLOATING) ..........Martin Luther King Jr.'s Birthday (3) Second Monday in February (FLOATING) .......................... Lincoln's Birthday (4) Third Monday in February (FLOATING) ....................... Washington's Birthday (5) March 31 (FLOATING) .................................................Cesar Chavez Birthday (6) Last Monday in May ................................................................... M emorial Day (7) July 4 .................................................................................. Independence Day (8) First Monday in September .............................................................. Labor Day EXHIBIT 1
(
9) Second Monday in October (FLOATING).................................. Columbus Day (10) November 11 ............................................................................ Veteran's Day (11) Fourth Thursday in November .................................................... Thanksgiving (12) The day following the day known as Thanksgiving
(13) December 25 ............................................................................ Christmas Day (14) Birthday Holiday

Floating holidays must be scheduled and used by December 31st of each year and do not carry forward into the subsequent year . There is no cash value for any unused floating holiday hours. While the floating holiday leave hours will be available as of January 1 st each year, employees have not earned each of the floating holidays until the actual holiday occurs; if an employee separates employment and has utilized more floating holiday hours than earned, the employee’s vacation or compensatory time hours will be charged for the same number of hours previously taken as floating holiday hours.

Birthday Holiday Leave. The department head, with due consideration for the wishes of the employee, may authorize the birthday holiday to be taken within sixty (60) calendar days beginning on the day of the employee’s birthday.

For employees on a Monday through Friday workweek, if a fixed holiday falls on a Sunday, the following Monday will be observed. If holidays fall on a Saturday, the preceding Friday will be observed. For employees who work in a division staffed for twenty -four (24) hour operations, fixed holidays that fall on a Saturday or Sunday will be observed on Saturday or Sunday respectively.

In order to receive Holiday Pay, the employee must work or be on a pre-approved paid status the day before and the day after the holiday, unless it is the employee’s regularly scheduled day or hours off.

An employee who takes a holiday off on a normally scheduled work day will receive a regular work day worth of holiday pay at their regular rate of pay, and the holiday hours count as time worked for FLSA overtime calculation purposes.

A holiday that falls on an employee’s normally scheduled day off will receive a regular work day worth of holiday pay at their regular rate of pay, however the holiday hours will not be counted as time worked.

If an employee works on a holiday, the employee will receive a regular work day worth of holiday pay at their regular rate of pay, actual hours worked will be paid at the time and one half (1 -1/2) and holiday hours will not be counted as time worked.

EXHIBIT 1

If an
employee works only partial hours on a holiday, partial holiday hours will be counted as time worked for FLSA overtime calculation purposes (up to the employee’s normal work day).

12.3 Compensation for Holidays Worked

Prior approval for holiday work must be secured from the department head except in emergency situations where said approval cannot be obtained beforehand.

Section 13. Compensation and Allowance Other Than Base Salary

13.1 Public Employees’ Retirement System (P.E.R.S.) Benefits for Unit Employees Hired on or before December 28, 2012

(a) The City will pay seven percent (7%) of the employee's current base salary (employee's contribution) and other compensation as qualified by State law towards the (P.E.R.S.). Such amounts will be applied to the employee's individual account in accordance with California Government Code section 20691 unless modified below.

(b) The City's P.E.R.S. retirement plan is two percent (2%) at age fifty-five (55).

(c) The City's P.E.R.S. retirement plan is modified to reflect California Government Code section 21024 (Military Service Credit as Public Service) and section 21027 (Military Service Credit for Retired Persons) effective upon adoption by Stockton City Council and Board Administration of the P.E.R.S.

(d) The City will provide P.E.R.S. California Government Code Section 20692 (Employer Paid Member Contributions Converted to Payrate during the Final Compensation Period) as added P.E.R.S. benefit. At the beginning of the employee’s last year of employment, the employee will pay their employee’s seven percent (7%) benefit cost through an automatic payroll deduction. The City will increase the base salary for those employees by the same additional contribution above the seven percent (7%), if any, for the last twelve (12) months of employment. Internal Revenue Service (IRS) Code 414H(2) will be concurrently implemented with P.E.R. S. California Government Code section 20692, to be effective upon adoption by the Stockton City Council and P.E.R.S. Administration Board.

(e) The City will provide P.E.R.S. California Government Code section 20965 (Credit for Unused Sick Leave) as added P.E.R.S. benefits, to be effective EXHIBIT 1
upo
n adoption by the Stockton City Council and P.E.R.S. Administration Board.

(f) The City will provide P.E.R.S. California Government Code section 21574 (Fourth Level of 1959 Survivor Benefits) as added P.E.R.S. benefi ts, to be effective upon adoption by the Stockton City Council and P.E.R.S.

Administration Board.

(g) The City will provide P .E.R.S. California Government Code section 21335 up to a five percent (5%) Annual Cost -of-Living Allowance, as added P.E.R.S. benefit.

(h) Effective August 1, 2011, in consideration of (a) above, employees hired on or before December 28, 2012 shall pay seven percent (7%) of the employee’s current base salary (employee contribution) and other compensation as qualified by state law towards the Public Employees’ Retirement System (P.E.R.S.) employer’s share of cost for P.E.R.S. pension on a post-tax basis in the form of a payroll deduction.

13.2 Public Employees’ R
etirement System (P.E.R.S.) Benefits for Unit Employees Hired on or After December 29, 2012

(a) The City amended its contract with P.E.R.S. effective December 28, 2012 to provide a new second tier retirement program of two percent (2%) at sixty (60) with a three (3) year average salary formula and no other additional P.E.R.S benefits for all unit employees hired on or after December 29, 2012.

(b) E mployees hired on or after December 29, 2012 shall pay the entire seven percent (7%) of the employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards the P.E.R.S. retirement benefit through a payroll deduction.

13.3 Public Employees’ Retirement System (P.

E.R.S.) Benefits for Employees hired
on or after December 29, 2012

(a) Employees with Reciprocity:

Em
ployees hired on or after December 29, 2012, who had service under another Cal PERS agency or public retirement system with reciprocity prior to January 1, 2013, and a break in service of less than six (6) months and are considered classic employees by P .E.R.S. AB340, shall be subject to the P.E.R.S. pension formula of two ( 2%) at sixty ( 60) with no optional pension enhancements and the other provisions of the retirement tier they EXHIBIT 1
w
ere hired under. Employees hired shall pay the entire seven percent (7%) of the employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards Cal PERS retirement benefit through a payroll deduction.
(b) Employees without Reciprocity:

Employees hired on or after January 1, 2013, shall be subject to the P.E.R.S. AB340 pension formula of two percent (2%) at Sixty-two (62) with no optional pension enhancements and the other provisions of the retirement tier they were hired under. Employees shall pay fifty percent (50%) of the City ’s normal cost rate for the two ( 2%) at sixty- two (62) as determined by Cal PERS.

13.4 Un
iforms

(a) The City shall provide uniforms for all employees assigned to this unit who are required to wear uniforms during the course of work.

(b) Safety Protective Footwear Reimbursement Allowance. E ffective July 1,
2024, f or e mployees required to wear safety protective footwear in accordance with the City Manager’s Administrative Directive , HR-34, and approved for safety protective footwear reimbursement, the City will authorize safety protective footwear reimbursement in the amount of t wo hundred fifty dollars ($250.00) per fiscal year. Employees shall be allowed to use any unused funds towards the purchase of insoles and socks.

13.5 P
reventive Shots

Those employees in the Municipal Utilities Department (MUD) whose work assignments involve potential exposure to hazardous wastewater shall, at the employee's option, be provided all necessary medical immunization available for the prevention of job incurred illness.

13.6 S
pecial Driver's License Pay

Job classifications requiring a Class A and/or Class B Driver's License or Hazmat endorsement will receive special pay equal to one and one- half percent (1-1/2%) of top step of job classification.

Special Driver's License Pay will only be implemented with the concurrent implementation of the Operating Engineers' Local No. 3 - City of Stockton, Drug/Alcohol Safety Program.

EXHIBIT 1

13.7 Longevity Pay

Effective June 20, 2011, longevity pay shall be eliminated. However, the City shall grandfather only those employees who complete twelve (12) continuous years of service with the City as of June 30, 2012, with two and one-half percent (2-1/2%) of top salary step of the employee’s pay range to the employee as a longevity incentive pay allowance. As of July 1, 2012, longevity incentive pay allowance for these grandfathered employees shall be reduced to one and one- half percent (1- 1/2%).

13.8 Credit Union

The City will accommodate payroll dedu ctions to Operating Engineers' Local No. 3 Credit Union, within the limitations of City payroll system. Any modification costs will be borne by Operating Engineers' Local No. 3.

13.9 E
ducation, Training and Development

The City will provide internal an d external training programs on a wide variety of subjects. Employee participation will be based on subject matter relevance to job requirements, budgetary constraints and workload demands. Any Training programs that employees are directed or authorized to participate by their department will be fully paid for by the department. Costs paid by the City include tuition, registration fees, related materials, and mileage/meal reimbursement if the training is not located on City premises.

13.10 C
ertification, Certification Training and Special Certifications

(a) Certification dues or fees required of employees in their specialized fields of work will be reimbursed by the City at the actual costs. Pre- approved training(s) to maintain a job-related certification will be paid at one-hundred percent (100%) by the City. The City will pay for two (2) attempts at passing the test.

(b) The City will offer a one-time add pay off the salary line for employees who receive State certification for water, wastewater, distribution, or California Water Environment Association (“ CWEA”). All employees are eligible to obtain certification in Water and Wastewater.

Water,
Wastewater

Water Distribution

CWEA
One Time
Add Pay
Grade 5 Grade 4 and 5 Grade 4 $1,000.00
EXHIBIT 1
Grade 4 Grade 3 $750.00
Grade 2 $200.00
Grade 1 $150.00

A maximum of two (2) certification levels will be paid by the City in a calendar year to any one (1) employee. Certifications (at State specific levels) will be required for some positions. Loss of certifications shall result in the employee being demoted to the level according to their certification level. The employee will be moved back to their former level if they obtained the necessary certification within 12 months.

Any employee who loses or is denied a certification shall notify their supervisor within seven (7) calendar days, and shall submit a copy of any notice received from the state or any other agency.

(c) An employee assigned to the wastewater function in the operator series who receives and maintains a level 4 or 5 Wastewater Operator Certification will receive th e following quarterly amounts added to their monthly paychecks for each wastewater grade level certification above a grade 3 certification that exceeds the certification level required for the position held.

Any employee receiving such certification pay will perform duties authorized by such certification level as required when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

(d) Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council in 2023, an employee assigned to the Water Treatment or Distribution function in the operator ser ies who receives and maintains a level 4 or 5 Water Operator Certification (T or D) will receive the following quarterly amounts added to their bi -monthly paychecks for each grade level certification above a grade 3 certification that exceeds the certification level required for the position held. Any employee receiving such certification pay will perform duties authorized by such certification level as required when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

Any current employee who is receiving this certification pay who does not meet the requirement of being within the operator series of classifications shall be EXHIBIT 1
gr
andfathered in to continue receiving such add pay as long as other requirements are met as described above. Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act no additional employees shall receive this certification pay unless all requirements above are met. In addition, any current employees who are receiving this certification pay based upon a certification level which is required for the position held shall have this certification pay reduced accordingly.

13.11 M
ileage Reimbursement for Private Vehicle Use

Employees who use their own vehicle on City business on a consistent and repetitive basis will be compensated at the current Internal Revenue Service (IRS) rate and in accordance with the City Manager's Administrative Directive, MAN-016, Section III.B.

13.12 Us
e of City Vehicles

Supervisors who perform emergency response and/or standby call -out duty shall have the option of taking home their assigned City vehicle on a daily basis.

Section 14. Insurance Plans and Retirement Benefits

14.1 R eopener Clause for Health Insurance

(a) The Union agrees at the City’s request, to meet and confer on any changes that are within the mandatory scope of bargaining in any City proposals related to its City sponsored medical plans that may be related to the implementation of the Affordable Care Act (ACA).

(b) The City agrees at the request of the Water Supervisory Unit to meet and confer regarding employer benefits and premium contributions should medical/dental/vision insurance premiums for employee- only, employee plus one (1) dependent or employee plus family increase by more than four percent (4%) in any one (1) plan year.

14.2 H
ealth and Welfare Benefits and Trust Fund Plan

(a) Choice of Health Plans. Employees in this bargaining unit shall have a choice of enrolling themselves and their eligible dependents in any of the City sponsored medical, dental and vision plans or Operating Engineer Health and Welfare Trust Fund Plan ( Anthem Plans A, B, C, and D, and EXHIBIT 1
K
aiser Plans A B, and A+). The City shall offer two (2) or more medical plans to regular status employees.

(b) Eligibility. Employees shall become eligible for Medical, Dental and Vision insurance on the first day of the month following date of hire. An eligible employee and eligible dependent may be enrolled in a City offered medical plan either as a subscriber in a City offered medical plan or, as the dependent spouse/registered domestic partner or another eligible City employee, but not both. If an employee is also eligible to cover their dependent child, the child will be allowed to enroll as a dependent on only one (1) employee plan (i.e., an employee and his or her dependent cannot be covered by more than one City-offered health plan).

1) Effective the first full pay period following ratification of this MOU by the Union and approval by City Council on its regular agenda, the City will contribute:

• Up to $711.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

• Up to $1,290.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $1,719.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

2) Effective July 1, 2024, City shall contribute the following:
• Up to $725.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,316.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $1,753.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision EXHIBIT 1
pl
an coverage.
3) Effective July 1, 2025, City shall contribute the following:
• Up to $740.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,342.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $1,788.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

These contributions are based on full -time employment; regular part -time employees shall receive a prorated contribution based on their percentage of full-time employment. Insurance plan premiums that exceed the City’s monthly contribution shall be paid by the employee through payroll deductions. The City shall maintain its IRS 125 Plan to allow for employee contributions for medical/vision/dental to be pre-tax premium conversion.

(d) Plan Rules. Employees may insure themselves and their eligible dependents under the medical, vision and dental plans provided by the City, in accordance with the rules and regulations applicable to the selected Plan.

Benefits in the Plan shall be in accordance with the Plan document.

(e) Employees that promote, demote, or transfer from a classification in the Water Supervisors unit to an unrepresented classification shall continue to have the option to retain the Operating Engineers' Local No. 3 Health and Welfare Plan.

(f) Payment of costs for City a dministrative overhead related to Operating Engineer sponsored plans.

The City costs to administer the health plans offered to employees and retirees are incorporated into the monthly rates for City sponsored medical, dental and vision insurance paid by t he City and the plan partic ipants.

Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act the City will add to the monthly plan costs EXHIBIT 1
f
or the Operating Engineer sponsored plans offered to employees thos e City administrative overhead costs associated with these plans in addition to the City sponsored plans. Only costs associated with the OE3 plans will be charged to those plans and will be updated each plan year.

14.3 Long Term Disability Insurance

The City shall provide, at no cost to the employee, long term disability insurance coverage. Plan benefits shall be as described in the Plan document, but shall include:

(a) Each disability - sixty- six and two thirds percent (66 2/3%) of salary up to the maximum salary replacement amount as specified in the City’s long term disability plan.

(b) Disability income payments shall commence after a ninety (90) day waiting period and exhaustion of sick leave accruals.

(d) The City shall continue its normal contribution for employee medical premiums during the ninety (90) day waiting period.

14.4 Life Insurance

The City shall provide, at no cost to the employee, a term life and accidental death and dismemberment insurance policy, with a value of fifty thousand dollars ($50,000). In addition, employees shall have the opportunity to purchase additional voluntary life insurance through their union or through the City’s IRS125 vendor.

14.5 S
tate Disability Insurance (SDI)

At the Union’s option, pursuant to procedures established by the state, members may elect to receive State Disability Insurance (SDI) coverage at their own expense. SDI will be coordinated with other benefits.

14.6 H
ealth Reimbursement Account (HRA)
The City will contribute an amount equal to five and one half percent (5. 1/2%) of the employee’s current base salary into an IRS qualified HRA for each employee to use for reimbursement of current and retiree medical cost reimbursement.

EXHIBIT 1
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ection 15. Salaries

15.1 Salary Rates
(a) Effective the first full pay period following ratification of this MOU by the Water Supervisory Unit and approved by the City Council on its regular agenda, employees will receive a four percent (4%) cost of living adjustment (COLA) to base pay.

(b) Effective July 1, 2024 , employees will receive a three percent ( 3%) COLA to base pay.

(d) Market adjustments will be provided in year two (2) and year three (3) of the contract as follows:

a. First, the total three (3) year COLA shall be deducted from the “median” position in the market.

b. Effective July 1, 2024, classifications will receive a market adjustment of no more than seven percent (7%) as outlined in Appendix A.

c. E ffective July 1, 2025, classifications will receive the remaining percentage to bring the classification to the median of the market as outlined in Appendix A.

d. The 2022 Total Compensation survey prepared by Bryce Consulting made specific recommendations for internal relationships between classifications in the Water Supervisory Unit and employees in the same job family. In the event these internal relationships change, the Parties will consider how to address compaction between those classifications.

(e) Lump Sum Payments

1. Each employee who is employed in the bargaining unit as of July 1, 2024 will receive a two thousand ($2,000) lump sum non- pensionable bonus EXHIBIT 1
(
subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

2. Each employee who is employed by the bargaining unit as of July 1, 2025 will receive a two thousand ($2,000) lump sum non- pensionable bonus (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

15.2 Salary upon Appointment

Except as herein otherwise provided, the entrance salary for a new employee entering the classified service shall be the minimum salary for the class to which appointed. When circumstances warrant, the Director of Human Resources may approve an entrance salary which is more than the minimum salary for the class to which an employee is appointed. Such a salary may not be more than the maximum salary for the class to which that employee is appointed.

15.3 S
alary Equivalents

Any monthly, daily or hourly rate of pay may be converted into an equivalent rate of pay or to any other time bases when, in the judgment of the City Manager, such a conversion is advisable. In determining equivalent amounts on different time bases the City shall provide tables or regulations for the calculation of payment for service of less than full time, and for use in converting monthly salaries to hourly rates, as well as for calculating hourly rates. Overtime rate and premium pay shall be calculated according to the provisions of the FLSA.

15.4 S
alary Step Plan

There shall be six (6) salary steps in each range.

The first step s hall be the minimum rate and shall be the normal hiring rate for the class. (In a case where a person possesses unusual qualifications, the Director of Human Resources may authorize appointment above the first step after receiving the recommendation of the department head. The same provision shall apply to hourly paid and part-time employees.)

If a department head recommends withholding inc
reases to salary steps two (2)
through six (6) because an employee has not achieved the level of performance required, notice must be received by the Human Resources Department at least four (4) weeks in advance of the employee's eligibility date. The affected employee shall be furnished a copy of the department head's recommendation. Failure to EXHIBIT 1
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de by the above f our-week limitation shall not automatically cause a step increase to be granted; however, if an employee does not receive notice by the actual anniversary date, the increase shall be automatically granted.

The second step s hall be paid upon the satisfactory completion of six (6) months service at the first step.

The thi
rd step shall be paid upon the satisfactory completion of one (1) year service at the second step.

The fourth step s hall be paid upon the satisfactory completion of one (1) year service at the third.

The fifth step s hall be paid upon the satisfactory completion of one (1) year service at the fourth step and upon written recommendation of the department.

The sixth step shall be paid upon the satisfactory completion of one (1) year service at the fifth step and upon written recommendation of the department head.

Regardless of an employee's length of service, step advancements in any given clas
s may be made upon recommendation of the department head with th e approval of the Director of Human Resources, but not above Step 6 for a given range.

Sal
ary step increases shall be effective the first day of the pay period following appointment or revision. If the date of appointment or revision is the first day of a pay period, salary step increases shall be as of that date.

Changes in an employee's salary because of promotion, demotion, postponement of salary step increase or special merit increase will set a new salary anniversary date for that employee, which date shall be as stated in the preceding paragraph.

Salary range adjustments for a classification will not set a new salary anniversary date for employees serving in that classification.

15.5 S
alary Step after Military Leave

All employees who have been granted military leave shall, upon their return to the City service, be entitled to the automatic salary advancements within the range of their classification for the period they were in the military service.

15.6 S
alary Step When Salary Range is Increased
EXHIBIT 1

W
henever the monthly schedule of compensation for a class is revised, each incumbent in a position to which the revised schedule applies shall be entitled to the step in the revised range which corresponds to the employee's step held in the previous range, unless otherwise specifically provided for by the Director of Human Resources.

15.7 S
alary Step After Promotion or Demotion

(a) When an employee is promoted from a position in one class to a position in a higher class, and at the time of promotion is receiving base salary equal to, or greater than, the minimum rate for the higher class, that employee shall be entitled to the next step in the base salary of the higher class which is at least five percent (5%) above the employee's current base salary, except that the next step shall not exceed the maximum salary of the higher class. Add pays are not included in the calculation of base salary for purposes of this section. When an employee is pro moted into another bargaining unit, the new bargaining unit’s salary on promotion rules shall apply.

(b) When an employee is demoted, whether such demotion is voluntary or otherwise, that employee's compensation shall be adjusted to the salary prescribed for the class to which demoted.

(1) If the salary of the employee is reduced for cause or disciplinary reasons, the employee shall receive the salary at the same step prior to promotion.

(2) If the salary of the employee is reduced through no fault of the employee (i.e., layoff), the salary at demotion shall be at the nearest lower salary to that which was received prior to the demotion.

15.8 T
ransfer

An employee may be transferred from a class in one depart ment, or to a position of t he same class in another depart ment, or to a comparable class, with the approval of both the employee and Department Heads. In the case of a compa- rable class, the employee must be qualified, as determined by the Director of Human Resources. The Director of Human Resour ces, in making such a determination, must assure that the maximum salary rate for the classes in question must be equal to or less than the employee’s current top step salary, and EXHIBIT 1
s
hall consider, among other things, whether the employee possesses the minimum qualifications for such class, and is able to demonstrate through education, experience, or successful completion of pertinent tests, that they are qualified for the transfer. If the transfer involves a change from the jurisdiction of one appointing authority to another, both must consent thereto.

15.9 S
alary on Reinstatement

If a former employee is reinstated in the same position previously held or to one carrying a similar salary range, the employee's salary shall not be higher than the salary at the time of separation unless there has been an increase within the salary range.

If a former employee is reinstated to a position in a lower class, the employee's salary shall be set at the same step previously held, but in th e pay range of the lower classification.

15.10 "
Y" Rate

When an employee's classification is changed to a lower paid classification as the result of a classification study or other action, the employee may be placed on a "Y" rate. A "Y" rate means that the mont hly compensation for the employee shall remain in effect until such time as further changes in the pay range of the new classification exceeds the "Y" rate.

15.11 A
cting Pay

Any employee in this unit who is assigned by a supervisor to work in a higher paid classification for two (2) or more hours in one (1) day, shall receive the rate of pay in the step of the higher classification which would have been received if the employee had been promoted into that classification, or at least five percent (5%) more than the employee's salary in the present classification, whichever is greater.

Out-of-class assignment pay during overtime status will commence at the first hour worked.

15.12 S
pecial Assignment Pay

The department head with the concurrence of the Director of Human Resources may approve additional compensation in an amount not to exceed one (1) additional salary step when an employee is assigned in writing by the supervisor to perform additional duties and responsibilities for the duration of the special assignment.

EXHIBIT 1

15. 13 T emporary Upgrade Pay
Employees who are assigned to temporarily perform the duties of other employees of a higher level classification shall be paid the hourly or daily rate of the classification to which they are temporarily upgraded. To be eligible for temporary upgrade pay, the employee must perform the full scope of duties of the higher classification and must not perform any of the duties of their own job classification while working in the higher level classification.

15.14 Salary Adjustments

The City recognizes that there may be a need for special salary adjustments for selected classifications as a result of recruitment problems, reclassifications, and/or organizational changes. The City, in its sole discretion, may make such adjustments, but agrees to discuss with the Union.

15.15 Bi-W
eekly Pay Period
The City and the Union agree to move to bi -weekly pay as soon as it is administratively possible within the City. The parties understand that this may not be administratively possible until the City implements a new payroll system.

15.16 O
ne Time Payment
The City will make a one -time (non-pensionable) payment in the amount of four hundred and fifty dollars ($450.00), subject to applicable withholdings, to Water Supervisory Unit members employed by the city upon adoption of this agreement by City Council. Payment will be processed and paid as soon as administratively possible following adoption of this agreement by the City Council.

EXHIBIT 1
S
ection 16. Severability of Provisions
In the event that any provision of this MOU is declared by a court of competent jurisdiction to be illegal or unenforceable that provision of the MOU shall be null and void but such nullification shall not affect any other provisions of this MOU, all of which other provisions shall remain in full force and effect.

In the event that Federal legislation changes the current applicability of the FLSA , both parties agree to consult and/or confer on the impacts of such legislation to the extent required by law.

Section 17. Past Practices and Existing Mem
oranda of Understanding
Continuance of working conditions and practices not specifically authorized by ordinance or by resolution of the City Council is not guaranteed by this MOU.

This MOU shall supersede all existing Memoranda of Understanding between the City and the Union.

Section 18. Scope of Agreement
Except as otherwise specifically provided herein, this MOU including Appendices “A” and “B”, which are attached to this Agreement and by this reference incorporated herein, and fully and completely incorporates the understanding of the parties hereto and constitutes the sole and entire agreement between the parties on any and all matters subject to meeting and conferring. Neither party shall, during the term of this MOU , demand any change therein nor shall either party be required to negotiate with respect to any matter; provided that nothing herein shall prohibit the parties from changing the terms of this MOU by mutual agreement.

Section 19. Duration of Agreement
This MOU shall be effective the date of execution, through June 30, 2026.

Section 20. Maintenance of Operations/City Rights
(a) It is recognized that the need for continued and uninterrupted operation of City services is of paramount importance. Therefore, the Union and each employee repre- sented thereby agrees that from the date of execution, through exhaustion of the impasse process/mediation/fact finding as set forth in the Employer/Employee Relations EXHIBIT 1
R
esolution, the Union or any person acting in its behalf, or each employee in a classification represented by the Union, shall not cause, authorize, engage in, encourage, or sanction a work stoppage, slowdown, refusal of overtime work, refusal to operate designated equipment (provided such equipment is safe and sound), or picketing, other than informational picketing, against the City or the individual or concerted failure to report for duty or abstinence from the full and faithful performance of the duties of employment, including compliance with the request of another labor organization or bargaining unit to engage in such activity in an attempt to induce a change in wages, hours, and other terms and conditions of employment.

(b) An employee shall not be entitled to any wages or City paid benefits whatsoever if the City Council, by majority vote, determines to its satisfaction, that the employee is, or has, engaged in any activity prohibited by subsection (a) of this section. The City may take other action which it deems appropriate.

(c) If the City Council, by majority vote, determines to its satisfaction, that subsection (a) of this section has been violated by the Union, the City may take such remedial action as it deems appropriate.

(d) The Union recognizes the duty and obligation of its representatives and members to comply with the provisions of this MOU and to make every effort toward inducing all employees in this unit to fully and faithfully perform their duties. In the event of any activity prohibited by subsection (a) hereinabove, the Union agrees to take supererogatory steps necessary to assure compliance with this MOU.

The rights of the City as set forth in Section 5 of Resolution No. 32,538, dated August 4, 1975, are incorporated herein by reference.

Section 21. GPS Devices in City Vehicles
The City retains the right to move forward with its RFP process and install Global Positioning Systems (GPS) in City vehicles used by employees in this unit. The Association agrees to meet and confer with respect to the City’s proposed GPS policy.

EXHIBIT 1
I
N WITNESS WHEREOF this Memorandum of Understanding was ratified by a me
mbership vote of the Association on ____________________ , and by an affirmative vote of the Stockton City Council on __________________ . The parties hereto have executed this Memorandum of Understanding this _________day of _____________.

WATER SUPERVISORY UNIT

Approved as to form:

CITY OF STOCKTON
Operating Engineers’ Local No. 3

By: _______________________

DARREN SEMORE
Business Representative

APPROVED AS TO FORM:

By: _______________________

HARRY BLACK
City Manager

By: _______________________

ROSEMARY RIVAS
Director of Human Resources

By: ________________________

CHARLES SAKAI
Negotiator for the City

Approved as to form:

Lori Asuncion, City Attorney

By: _______________________

MARCI ARREDONDO
Assistant City Attorney

ATTEST:

CITY CLERK

____________________

ELIZA GARZA
City Clerk
EXHIBIT 1
A
ppendix A. Mar ket Adjustments
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EXHIBIT 1
A
ppendix B. Side-Let ter of Agreement Regarding Transfer of Services Pursuant to the Special Agreement between Operating Engineers’ Local Union No. 3 (“Union”) and the City of Stockton (“City”) dated June 18, 2003, authorized by Stockton City Council Resolution No. 03-0393, adopted on July 8, 2003, regarding the Transfer of Services, the provisions contained in Appendix B, Side- Letter of Agreement, pertains to only the Employees covered by the Special Agreement.

Nothing contained herein prohibits the parties from mutually agreeing to changes, but neither party can be compelled to negotiate and/or agree to any changes to this Appendix B, Side-Letter of Agreement.

Section 1 – Re-em
ployment and Employment

The City shall provide regular full -time employment at the City’s municipal wastewater utility and water utility to all of the employees listed in Agreement electing to accept such employment effective March 1, 2008.

Section 2 – Te
rms and Conditions of Re-employment and Employment

(a) City’s offer of employment and re-employment shall be unconditional, and shall not be subject to other health, competency or other test, fact, or circumstances relating to an individual employee.

(b) All service with OMI/Thames Water will be counted as service with the City.

(c) Waste Water Certification – E
mployees outside of the Waste Water Division who
hold Waste Water II or higher certification and are available for short -term assignment to the waste water facility will receive an additional five percent (5%) of the top step, which shall be PERS reportable earnings. Certification must be kept current. Employees who decline short -term assignments to the waste water facility subject to department guidelines will lose this additional pay.

Section 3 - Def
erred Compensation

The City shall provide, at no cost to the employee, deferred compensation as a supplement to voluntary deferred compensation plans, if any, for which the individual EXHIBIT 1
em
ployee may be eligible. The City shall contribute an amount equal to five and one-half percent (5.5%) of the employee’s current base salary.

Peggy Barnett Occupational Health/Safety Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection Systems Supervisor
Larry Huber Laboratory Supervisor

Section 4 - P ublic Agency Retirement System (“PARS”) Supplemental Retirement Plan

The City shall contribute an amount necessary to fund a supplemental retirement benefit for the following employees in Municipal Utilities Department.

Peggy Barnett Occupational Health/Safety Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection Systems Supervisor
Larry Huber Laboratory Supervisor
Robert Englent Senior Collection Systems Operator

The supplemental retirement benefit shall be developed and administered by the Public Agency Retirement Services (“PARS”) benefit and shall be based on the following criteria:

(a) Only employees listed in this Agreement shall be eligible to participate;

(b) Commencing March 1, 2008, employees must complete at least one (1) year of continuous City of Stockton service to be eligible for the PARS benefit;

(c) The PARS benefit shall be paid only to those employees listed in this Agreement who retire from the City in accordance with rules and criteria established pursuant to PERS and the MOU in effect between the City and the OE3; and

(d) The benefit level paid to each eligible employee shall be based on the following formula:

(1) All actual years of service (prior City of Stockton, OMI and City of Stockton years of service as of March 1, 2008 prospectively) x 0.6%.

Section 5 – Com
pensation and Benefits

(a) Active employees shall receive fully paid City Health Plan (Medical, Vision, and Dental) or the option of the fully paid OE3 Medical Plan Schedule A (Medical, EXHIBIT 1
V
ision, and Dental) through June 30, 2013. Effective June 30, 2013, employees identified in Exhibit B shall receive the same city contribution towards cost of insurance programs as stated in MOU section 14.1(c).

(b) An employee who receives and maintains a Level IV or V Waste Water Operator Certification will receive the following quarterly amounts added to his or her monthly paychecks for Level V and Level IV certifications, unless certification is required of the position.

Level IV $1,000.00
Level V $2,000.00
EXHIBIT 1
A
ppendix B – Ex hibit B Employees

EXHIBIT 1

A
ppendix B – Ex hibit B Employees

EXHIBIT 1

City Council and Concurrent AuthoritiesSeptember 12, 2023

City Council and Concurrent Authorities
September 12, 2023