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D. Step 3. <br />1. If the grievant is not satisfied with the Step 2 response, the grievant must <br />submit the grievance in writing to Step 3 (binding arbitration) to the Executive <br />Director of Human Resources or designee within ten (10) calendar days of <br />receiving the Step 2 response. Should the grievant fail to file a written <br />grievance at Step 3 within ten (10) calendar days after receiving the response <br />at Step 2, the grievance shall be barred and waived. <br />2. The City and Union agree to select an arbitrator in the following manner: <br />a. The City and Union shall create and maintain a standing list of three (3) <br />to five (5) mutually approved arbitrators. <br />b. The City and Union shall select an arbitrator via the striking method. The <br />parties shall mutually agree which party strikes the first name. If the <br />parties cannot mutually agree, the parties shall toss a coin to determine <br />who shall strike the first name. Once the arbitrator is selected, the parties <br />will contact the arbitrator to schedule a hearing. <br />c. If none of the identified arbitrators are able to take the case, then the <br />parties will request a list of seven (7) arbitrators from the State Mediation <br />and Conciliation Services. Once the list is received, the representatives of <br />the parties shall strike names until an arbitrator is chosen. The parties shall <br />mutually agree which party strikes the first name. If the parties cannot <br />mutually agree, the parties shall toss a coin to determine who shall strike <br />the first name. Once the arbitrator is selected, the parties will contact the <br />arbitrator to schedule a hearing. <br />3. Hearing Process: During the hearing, the formal rules of evidence do not apply. <br />The cost of the arbitration including but not limited to the list of arbitrators, <br />the arbitrator themselves, and the court reporter shall be split evenly between <br />the City and Association. The arbitrator's decision shall be final and binding. <br />The arbitrator shall issue their decision within thirty (30) calendar days from <br />the conclusion of the hearing, unless the parties agree otherwise. <br />2022-2025 MOU City of Santa Ana & SEIU Full -Time Employees Unit Page 73 <br />