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(9) Vacation Time Off. Affected employees shall be granted regular and longevity paid vacation leave on the same basis as provided represented employees of the City except, however, such affected employees will be granted vacation with pay at the annual rate of fifteen (15) working days for each of his or her first and second completed year of service. Notwithstanding the foregoing, Fire Battalion Chiefs assigned to the twenty-four (24) hour shift schedule are granted regular vacation on the same basis as other full-time employees except that their standard work unit is a working day of twelve (12) hours. Therefore, each such Fire Battalion Chief is granted regular vacation at an annual rate of fifteen (15) 12-hour working days, or seven and one-half (7 1/2) 24-hour work shifts. In those cases when an employee is transferred between the twenty-four (24) hour shift schedule and the regular forty (40) hour work- week schedule, the employee's earned vacation, which is accrued in hours, shall be converted to agree with the number of working hours per day in the currently-assigned schedule. (10) Vacation Pay Option. Affected employees shall be given the option to receive cash compensation, computed on a straight time basis, in lieu of up to five (5) working days of earned, unused vacation leave benefits set forth in Section 9 above. (i1) Expanded Residency - Middle-Management ~mployees Only. The City shall continue to permit officers and employees employed in classes of employment designated as Middle-Management to reside outside the limits of Orange County, so long as such residency is not an unreasonable distance nor requires an unreasonable response time to the particular employeeVs place of employment. Any affected employee who desires to take advantage of the opportunity to reside outside of Orange County shall first request permission to do so from his department head. Said request shall be granted by the department head if it is determined that the intended residence is not an unreasonable distance nor requires an unreasonable response time to the employee's place of employment. Should the department head refuse any such request, the employee shall have the right of appeal of said determination to the City Manager for reconsideration. (12) Administrative Leave Policy. The City Manager is authorized to grant, at his discretion, administrative leave for Executive and Middle- Management personnel. (13) Carry Over Benefits. In addition to the benefits specified in subparagraphs (1) through (12) hereinabove, said officers and employees shall continue to receive any and all employee benefits which they were entitled to receive on June 30, 1981, by reason of prior action of the Council, provided and excepting, however, that the retirement benefit shall be as provided hereinabove, and not as it existed on June 30, 1981. BE IT FURTHER RESOLVED; That Resolution No. 58-281, as amended, is hereby further amended by adding thereto a new section as follows: Section 13: Management Performance Bonus Plan. There is hereby established a Performance Bonus Plan for officers and employees employed in classes designated as unrepresented Executive Management (EM) or Middle- Management (MM), the provisions of which are hereinbelow set forth. (a) The City Manager shall establish performance criteria and appraisal guidelines to be utilized by appropriate appointing authorities in granting or withholding performance bonuses. The terms "appropriate appointing authorities", as used in this Section, shall mean the City Manager regarding Executive Managers subject to his or her authority, and each Executive Manager regarding Middle-Managers subject to his or her authority. (b) Annual Performance Appraisal. It shall be the duty and responsibility of each appointing authority to evaluate the performance of each of his or her subordinate managers to determine the extent to which performance criteria have been met and what, if any, performance bonus(es) should be granted to subordinate managers.