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Agreement with the Service Employees International Union (SEIU) December 19, 2011 Page 2 of 3 2.7%(q7 55 Service Retirement Benefit. Effective July 1, 2012, the employee contribution shall be increased by 2.5% to a total of 10.5%; effective January 1, 2013, the employee contribution shall be increased an additional 2.5% for a total of 13.0%. Early Retirement Incentive. Union members who are currently eligible for retirement, or become eligible for retirement prior to April 30, 2012 shall receive $400 for each full year of service, up to 25 years of service, as an incentive to retire. Employees must irrevocably declare their intent to retire by January 31, 2012 and separate from the City no later than April 30, 2012 to be eligible for the incentive. Advisory Arbitration. The option of advisory arbitration shall be added to the current three-step grievance process as a final step. The arbitrator's advisory recommendation shall be submitted to the City Manager, who will make the binding decision. The cost of the arbitrator shall be equally shared between the City and SEIU. Release Time for Union Grievance Representatives. Effective January 1, 2013, the number of work site leaders/stewards shall be increased to eighteen (18). Layoffs and Contracting Out. The City will not notify SEIU of its intent to lay off bargaining unit members prior to February 1, 2012 and will not lay off any member prior to March 31, 2012. Further, the City will meet and confer with SEW over not only the impact, but also the decision to lay off members. Effective July 1, 2013, prior to seeking and/or bringing any requests-for-proposal (RFP) to the City Council which would result in contracting out SEW work, the City will conduct a series of meetings SEW to discuss the proposed RFP and consider any bids from employees who may be affected by a contracting out of work. The City will also provide SEIU with an opportunity to submit a subsequent bid if an outside bid has been tentatively recommended. Joint Labor Management Teams (JLM). The current Job Classification Study JLM contract language will be amended with additional detail describing the process for identifying, prioritizing, conducting and implementing job classification studies. Effective June 1, 2012, a JLM will be formed to evaluate the process for advertising and hiring part-time employees. FISCAL IMPACT This agreement will result in a cost savings to the City of $934,000 during fiscal year 2011-12 and $2,100,000 during fiscal year 2012-13 for a total net savings of $3,034,000 during the term of the agreement. Edward S. Raya Executive Director Personnel Services Agency 25H-2