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SEVENTH SIDE LETTER AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 721 FOR FISCAL YEARS 2010-2013 Effective upon the signing of this Side Letter, the City of Santa Ana (City) and the Service Employees International Union (SEIU or Union) agree that they have met and conferred and agree to amend the Memorandum of Understanding (MOU) between the City and SEIU for Fiscal Years 2010-2013. Article III, Section 3.3 is amended and Section 3.4 is added as follows: 3.3 Employee Furloughs. Beginning October 2010 and ending in February 2012, employees covered by this agreement shall take twenty (20) eight-hour unpaid furlough days totaling 160 hours. Employees covered by this agreement shall furlough one day a month except two additional days shall be taken in December of 2010 and one additional day shall be taken in December 2011. Furloughing shall be on a set day agreeable to the City and union. However, for those departments or divisions identified by the City as having a business necessity, the furlough schedule shall be based on those operational needs. Employees in departments or divisions with special needs may bank furlough hours which shall be taken at the discretion of the employees with the approval of their supervisor in increments of not less than one-half (1/2) of one hour, beginning October 1, 2010 and ending April 30, 2012. Beginning October 2010 through March 2012 furlough hour deductions from employees wages shall, to the furthest extent practical be taken out in an equal number of hours and fractions of an hour per payroll period corresponding to the total number of furlough hours taken. Effective December I, 2011, the parties agree to adding the number of additional furlough days/hours needed (approximately 17 days/138 hours) to the current furlough program (as described above in the previous paragraph) to permit furlough deductions to continue to be made through to the final payroll period concluding the end of the term of the current MOU, June 30, 2013. The parties agree to vary the payroll deduction rate and/or period to properly accommodate an agreed to whole number of furlough days/hours. Effective January 1, 2012, the parties agree to add the number of additional furlough days/hours needed (approximately 23 days1184 hours) and commensurately increase the furlough payroll deduction amount (above the amounts described above) to increase the rate of furloughing for the period of January 1, 2012 through June 30, 2013 equivalent to full Friday furloughing based on a standard 9/80 workweek schedule. The intent is that between January 1, 2012 and June 30, 2013, employees will be furloughed for 10% of their hours. 25B-22