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HomeMy WebLinkAbout55A - AMENDMENT MGMT COMPENSATION & AGMT-SANTA ANA MANAGEMENT ASSOCIATION REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JANUARY 4, 2011 TITLE: APPROVED E3 As Recommended AMENDMENT TO MANAGEMENT Cl As Amended E3 Ordinance on 1" Reading CLASSIFICATION AND COMPENSATION O Ordinance on 2nd Reading PLAN; AGREEMENT WITH SANTA ANA O Implementing Resolution MANAGEMENT ASSOCIATION O Set Public Hearing For CONTINUED TO FILE NUMBER CITY NAGER RECOMMENDED ACTION 1. Authorize the City Manager and Clerk of the Council to execute an agreement with the Santa Ana Management Association regarding wages and other terms and conditions of employment. 2_ Adopt a resolution amending the City's Basic Management Classification and Compensation Plan (No. 91-066) to provide salary and benefit adjustments to unrepresented Executive Management consistent with those approved for the Santa Ana Management Association. DISCUSSION The City and the Santa Ana Management Association (SAMA) recently completed contract negotiations resulting in a proposed four-year contract extension to the FY 2004-10 Memorandum of Understanding (Exhibit 1). The extension period covers July 1, 2010 through June 30, 2014. The City Manager is requesting that the provisions agreed to by SAMA be applied to unrepresented Executive Management in order to maintain appropriate salary differentials between job classifications and consistency in salary and benefit administration among management units. The primary provisions of the SAMA and Executive Management compensation proposals are as follows: 1) Salary: 07101/10 - 06/30/11 = O% 07101111 - 06/30/12 = 3.0% 07101112 - 06/30/13 = 3.5% 07/01/13 - 06/30/14 = O% 55A-1 Amendment to Management Classification and Compensation Plan; Agreement with Santa Ana Management Association January 4, 2011 Page 2 2) Vacation Cash Out: Employees shall defer longevity vacation and management vacation cash out for FY 2010-11. Allow carryover of 60 hours of longevity vacation and 40 hours of management vacation and a maximum cash out value of 100 hours and 67 hours, respectively, for FY 2011-12, 2012-13 and 2013-14. 3) Pay for Performance (PFP): Eliminate 7.5% (maximum) "Pay for Performance" for unrepresented Executive Management (EM) and Middle Management (MM) employees in FY 2010-11. In lieu of 7.5%, replace with 2.5% increase to the salary schedule for FY 2012- 13 and a 2.5% increase to the salary schedule for 2013-14. 4) Retiree Health Subsidy: Reduce FY 2010-11 deposit to the EM and MM fund from 1.75% to 1 % of base salary, including premiums. 5) The following amendments pertain only to SAMA: 1 . Grievance Process: In FY 2010-11, implement a grievance process for Civil Service employees and implement an alternative process for Civil Service exempt employees. 2. Administrative Management (AM) and Middle Management (MM) Merger Reopener: In FY 2010-11, form a Joint Labor Management Team to discuss merging categories of employment designated as AM and MM. FISCAL IMPACT With regard to the SAMA contract, the first-year savings to the City is $672,995 for deferral of salary increases and leave cash-outs, the elimination of Pay for Performance (PFP), and the temporary reduction of the Retiree Health Subsidy fund. There are additional ongoing savings of $65,105 per year for the elimination of Pay for Performance. The Executive Management proposal represents cumulative savings of $385,117 for voluntary deferral of salary increases and elimination of Pay for Performance (PFP) since January 2009_ The net savings from July 1, 2010 through June 2014 is $229,103, and $72,442 annually thereafter. APPROVED AS TO FUNDS AND ACCOUNTS: __f~L~1~/~•CS ~J N/ ~MJ~S ~J Kathie S. onzalez- Francisco Gutierrez Executive Director Executive Director Personnel Services Agency Finance & Management Services Agency /I o 55A-2 55A-3 Exhibit 1 ::r-%VQraU,?-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING, AS AMENDED, BETWEEN THE CITY OF SANTA ANA AND SANTA ANA MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2010-11 AND 2011 127-"PaU4914 2013-14 The City of Santa Ana (CITY) and the Santa Ana Management Association (SAMA) have met and agreed to amend *he pre%4eusly amended extend the 2004-10 Memorandum of Understanding (MOU) between the CITY and SAMA for emended M060 for a addi*ienal twe four (4) years. The eixis4imq initial MOU provisions, and the provisions outlined in the two-year contract extension for Fiscal Years 2010-11 and 2011-12 will remain unchanged unless addressed modified by this addendum. The new expiration date of the MOU wM shall be June 30,203:22014, and the MOU wW shall be amended as follows: AMENDED ARTICLE V (new language in bold italics, deleted provisions lined out) 5.2 Schedule of Salaries. A. Two separate schedules of salary rate ranges, one for classifications of employment designated as SAMA Middle Management (MM) assigned to 15 step 17-step monthly salary rate ranges, and one for classifications of employment designated as SAMA Administrative Management (AM) assigned to 5-step monthly salary rate ranges, are attached hereto in matrix format as though set forth herein. The schedules for SAMA Middle Management (MM) classifications and SAMA Administrative Management (AM) classifications and their effective dates are attached to this Agreement as Exhibit A and Exhibit B, respectively, and are listed as follows: Category of Employment Salary Gff"'er=*M rc Schedule No. ETC SAMA Middle Management (MM) M4A- 9159/06 Refer to Exhibit :7 i 4 (Classification assigned to 4-5-17 step 7 i 05 salary rate ranges) MM Q ~ 06 M-M4- 08~ 7 Q SAMA Administrative Management (AM) AM 05/06 Refer to Exhibit ;z 1 04 (Classification assigned to 5-step 7 salary rate ranges) ec _7i' SAMA Contract Extension: 2010-14 Page 1 55A-4 B. The basic salary schedule for SAMA Middle Management classifications contains numerous salary rate ranges, each range comprised of fifteen "15` seventeen 1,17) separate rates of pay shown in monthly amounts. The respective rate ranges are identified by a two-digit number preceded by the capital letters "MM." The separate rates of pay or steps within each salary rate range are identified by the numbers "1" through "17" inclusive, with Step "1" being the lowest or minimum rate of the range, Step 79" the middle or midpoint rate of the range, and Step"rg" "17" being the highest or maximum rate. The purpose of each step and criteria for advancement are set forth in Subsection 5.8(A) below. C. The basic salary schedule for SAMA Administrative Management contains numerous salary rate ranges, designated by the letter "AM" and a three-digit rate range number. These rate ranges are comprised of five (5) steps or rates of pay shown in monthly amounts, identified by the letters "A" through "E" inclusive, with Step "A" being the lowest step in the range. The purpose of each step and criteria for advancement to the next higher step within a particular salary rate range are set forth in Exhibit B and in Subsection 5.8 (B) below. b. The assignment of SAMA classifications to salary rate ranges is listed in Exhibit C, which is attached and made a part hereof as though set forth herein. 5.3 Salaries. E. Effective July 1, 2008, the base salaries of classifications covered by this Agreement shall be increased by approximately four percent (4%). F. Effective January 1, 2009, the base salaries of classifications covered by this Agreement shall be increased by approximately two and one-half percent (2.5%). 6. Effective duly 1, 2009, ~9Q be-Se ==lariir cif a less if ieatiens a_•_red by *his Agree en* she" be inereased by apprexima4:ely four pereeiq* (4%). 1 i- E#feE#*ye January 1, 2919, *19e -base saki-iesefe ssifTeetie;s c-eYered by 4h*5 0 6 _ Effectiye july-1, 2010, the base salaries -of elessi#ieeVens eevered by this Agreement- shell be ineressed by e*el y fe r -----'wt- (4%)- 49- Effective July 1, 2010, there shall be no salary increase for classifications covered by this Agreement. Effective danaary 1. 2011, *he base salaries of elessi#ieet-;ons eever•ed by this SAMA Contract Extension: 2010-14 Page 2 55A-5 H. Effective January 1, 2011, there shall be no salary increase for classifications covered by this Agreement. I. Effective July 1, 2011, the base salaries of classifications covered by this Agreement shall be increased by approximately 3%. J. Effective July 1, 2012, the base salaries of classifications covered by this Agreement shall be increased by approximately 3.5%. K. Effective July 1, 2007, Miscellaneous employees covered by this Agreement shall contribute 2% of their salary toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this 2% contribution shall be implemented through payroll deduction on a pre-tax basis. L. Effective July 1, 2008, Miscellaneous employees covered by this Agreement shall contribute an additional 2% of their salary (for a total of 4%) toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this additional 2% contribution shall be implemented through payroll deduction on a pre-tax basis. M. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.3% of their salary (for a total of 6.3%) toward the employer cost of the 2.7% at 55 retirement benefit- To the extent permitted by CalPERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. 6. Should any e*her-berg `'t eeeive a seler-y or bbenef*i„eresse, wiT .e e eeptien of 4% o and ~.WX. se:army--inereQses originsim Tseheduled f y 1, 2009and Tana y 1, 2010, respee*ively, during *he *erm of *1469 Agreement-, 5.4 Application of Basic Compensation Plan. The salary rate ranges contained in Subsection 5.2 and Exhibit C are monthly salary rate ranges. All employees working in classifications of employment covered by this Agreement shall be compensated at a monthly rate. 5.5 Probation. Except for employees in the Excepted Service and employees re-employed from re-employment eligible lists, the probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) or appointment from a promotional eligible list. 5.6 Beginning Rates. SAMA Contract Extension: 2010-14 Page 3 55A-6 A. SAMA Middle Management Classifications. An employee appointed to a Middle Management classification shall be compensated at any rate within the lower third of the X17--step salary rate range (Steps "1" through T 16') for their job classification as authorized by the Appointing Authority. When economic conditions, unusual employment conditions, or exceptional qualifications of a candidate for employment indicate a higher rate would be in the City's best interest, the City Manager may authorize hiring at a higher rate in the salary rate range but this higher rate generally shall not be above the midpoint. B. SAMA Administrative Management Classifications. An employee appointed to an Administrative Management classification may be placed by the Appointing Authority at any step within the applicable five (5) step salary rate range (Steps "A" through "E") in the schedule to which the classification has been assigned through adoption of this Agreement, provided that such employee shall be assigned such salary step upon the commencement of his or her service in said classification and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article as set forth below. 5.7 Service. The word "service" as used in this Agreement shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in the higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements. Notwithstanding the above, employees in classifications designated as Administrative Management (AM) who are hired after the first (1'T) working day of the month shall not be credited with time in service for that month when determining the length of service for salary advancement. A lapse of service by an employee for a period of time longer than ten (10) calendar days, by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this Agreement, and any such employee reentering the service of the City shall be considered as a new employee, except that he or she may be reappointed as provided in Santa Ana Municipal Code (SAMC) Chapter 9-114 and may be placed in the same salary step in the appropriate salary rate range as he or she was at the time of termination of employment. 5.8 Advancement Within Ranges. 5# e1T}: ThE'.'PB--rs~rcreores*vcrroh2va vci-rvr-mcrrcc~cscv cv'axrvarrvY'1 SAMA Contract Extension: 2010-14 Page 4 55A-7 use. The- bes+c purpose of :~he perfom,anEeh-ased evalwa*iem and e~ Speeifoe ~m-rtprnsaz-r~vrrve.TCTiTrine44vrr. a. The Appeon44egg Autmiger4y is hereby su*19erimed *a make eppewiq*"len*s the individtieI Eempemrse -ien e; =Middle Managemep4: pei-semmel as guidelines to be tltilimed by =the Exeeutive ~i;=eE#ors in setz;rtg 6. Af*er *19e se $leyee-appewm*ed Middle a "gemen* selery adveneement thneugh the fierwa*nm - s*eps of *19e f+f*eenT3_` stmep selepy~Pete i-enge sigall-be besed e resti*s of an annual e: n e' Qbieet*ves. The -system she inel ide-e-rFs+ief eu*eerAe based bem*weem *19e Appemiq*mng Au*lqer43y, and ear=19 individual manager- subjeet 4:e b-..;anaaepiel Beheviers. in -•ddm*:_... w her _c_lq:e..:_q agreed upen ebjer=*m%,es, ear=19 Middle Managemen4: emple-yee sigall al-se be judgment, planning'-fer-gami7atmien, management eewk-el, e peat- i %41:y, imi4:ia4:i%,e, SAMA Contract Extension: 2010-14 Page S 55A-8 I ne Peese, if @R3~ ',-Will be. S?lie9 alqnUal 'P el-Hienee cVGlU8*-me J9 Sigel! Geevr empleymer}# Ase,nsary Bete -end eeyep *he *welve "2• r-_n+19 _ _:_a preceding that dr*eA-dd+*ienally-et least one infeemal mid yeai- pi-e9pess ..1""11 he held be-4...__n +1._ &-teeu*iye D:........+"" and eig e f b. Repfepmanee and--Rs rnas. Ceeia Middle Menegemen* empleyee's p......F_...me...ee 1 _ _1_ -by Gensistently mee*s- all ebfee#+%'esFa,,d-Peq+* rten4:s and e#eeeds seyercr Mee:~s Ex Meets objectives and requirements. 1 1...6___...+_b1_- b. RerferrAs,.ee-Based Adius#rnen# s. P-M*Iqpv. M" I. 0 7.5%) in tme*e. SAMA Contract Extension: 2010-14 Page 6 55A-9 of a step inereese and ene 4:mrAe --*ary . _ : free *we _ ed and 0 pereen#(2.5%)ef edrrent annual re*-fbase ^--1__.. _ ---1•._ _ __t- of 0 I-a*mnq and whe is being paid a4: a step higher *19an *19e minimum F-ate ef *19e salary rate F-enge, may be redursed by eige er mere !94:eps upen *h 64,y Manager. Verfermenee based inereese of 19i^ _t-: SAMA Contract Extension: 2010-14 Page 7 55A-10 management perfermenee-based eval••. err-sjaS*eM. Sueh ebfeetives, messui-es ai9d standawdsL-qpe -develeped; when al9d hewperfe~merree ne Tewsei-e -te be earl=:edeu*; Igew a 11 Fe be -J af-e A. SAMA Midd/e Manot7ement Classes: The following provisions shall govern salary advancement within rate ranges for employees employed in SAMA Middle Management classes: 1) For any employee in a _SAMA Middle Management classification covered by this Agreement who has been initially appointed to a step lower than Step "17', advancement to the next higher step in the SAMA Middle Management schedule of so/ary rate ranges may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. Such advancement shall be in two-step increments, each step being equivalent to approximately 2.5% for a total annual increase of approximately 5% per year. For example, an employee covered by this Agreement shall advance from Step 1 to Step 3, Step 3 to Step 5 Step 5 to Step 7 Step 7 to Step 9 Step 9 to Step 11, Step 11 to Step 13, Step 13 to Step 15 or Step 15 to Step 17 (the top step in the sa/ary rate range) respectively. This two-step advancement shall be granted for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position- The effective date of such merit step increase, if granted, shall be the first (15' day of the month following the completion of one (1) year of service at the step from which said employee is being advanced. 2) During the term of this Agreement a SAMA Midd/e Management employee who has not yet reached Step 15 of the SAMA Middle Management schedule of salary rate ranges shall continue to progress through the salary rate range at the rate of two (2) steps per year (approximately 5%) until Step 15 is achieved. 3) For the period of Fiscal Years 2010-11 and 2011-12 no SAMA Middle Management employee shall advance further than Step 15 of the salary rate range. SAMA Contract Extension: 2010-14 Page 8 55A-11 4) Effective July 1, 2012, each SAMA Middle Management employee who has already reached Step 15 Shall be a/igib/e to receive a one (1) step merit salary increase (approximately 2.5%) effective on his or her anniversary date in class. Said employee shall then be at Step 16 of his or her salary rate range. 5) Effective July 1, 2013, each SAMA Midd/e Management employee who has already reached Step 16 shall be eligible to receive a one (1) step merit salary increase (approximately 2.5%) effective on his or her anniversary date in c/ass. Said employee shall then be at Step 17 of his or her sa)ary rate range. Such merit advancement sha// require the fo/lowing: a) There shall be on fi/e in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal required to be mode on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. b) The Appointing Authority at /east twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall fi/e with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Appointing Authority as to such recommendations and sha// be informed of the reasons. c) No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above Step "1 " results from promotion under the provisions of Section 5.9 (A) of this Agreement. d) Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be SAMA Contract Extension: 2010-14 Page 9 55A-12 retroactive to the first C15r) day of the month following the completion of the required length of service. 6) When an employee in a SAMA Midd/e Management classification has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three C3) months of additional continued service in the classification and shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six C6) months of additional continued service in the classification. 7) An employee in a SAMA Midd/e Management classification who is being paid at any salary step above Step "1" may be reduced to the next lower step in the appropriate salary rote range upon the recommendation of the Appointing Authority and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 5.8 Paragraph CA) C6) above, and such officer or employee may be considered for readvancement under the some provisions as contained in Subsection 5.8 Paragraph CA) C6) above. B. SAMA Administrative Management Classifications: The following conditions shall govern salary advancement within 5-step rate ranges for employees employed in SAMA Administrative Management classifications: 1. For any employee in an Administrative Management classification covered by this Agreement who has been initially appointed to a step lower than Step "E," advancement to the next higher step (Step "B" from Step "A" or Step "C" from Step "B," etc.) may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of such merit step increase, if granted, shall be the first day of the month following the completion of one year of service at the step from which said employee is being advanced. Such merit advancement shall require the following: a) There shall be on file in the Office of the Executive birector of Personnel Services a copy of each periodic eff+c-iency or performance repar# appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her lost salary advancement. b) The Appointing Authority at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall SAMA Contract Extension: 2010-14 Page 10 55A-13 file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Appointing Authority as to such recommendations and shall be informed of the reasons. c) No advancement in salary " shall become effective until approved by the City Manager, except when placement on a salary step above Step "A" results from promotion under the provisions of Section 5.9(B) of this Agreement. d) Notwithstanding the foregoing provisions of this subsection to the contrary a merit step increase slhall be automatically granted ninety (90) days after the due date if no performance appraisal is completed The effective date of such merit step increase shall be retroactive to the first CJ"') day of the month following the completion of the required length of service. 2. When any such employee in a classification designated as Administrative Management (AM) has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the some actions as provided in Subsection 5.8(B)(1) above. 3. Any employee in an Administrative Management classification who is being paid at any salary step above "A" may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Executive Director and the approval of the City Manager. Procedure for such reduction shall follow the some procedure for merit advancement provided in Subsection 5.8 (B) (1) above, and such employee may be considered for readvancement under the some provisions as contained in Subsection 5.8 (B) (2) above. 5.9 Promotional Salary Advancement. A. SAMA Middle Management Classifications: When an employee in a non-management classification of the City service is promoted to a SAMA Middle Management classification, they shall be placed at a salary rate in the appropriate salary rate range that will provide at least a five percent (5%) pay increase. B. SAMA Administrative Management Classifications: SAMA Contract Extension: 2010-14 Page 11 55A-14 1. Promotion from a Non-Management Classification. An employee who is promoted to a SAMA Administrative Management classification from a non-management classification of the City service shall be placed at a salary rate in the appropriate Administrative Management monthly salary rate range that provides a pay increase of at least one (1) step [approximately five percent (5%)]. 2. Promotional Salary Advancement. When an employee in a classification designated as Administrative Management (AM) is promoted to a higher classification from a position in a lower classification in the some occupational career ladder, he or she shall be reassigned to the beginning step in the appropriate monthly salary range for the higher classification; provided, however, that if the base salary currently being paid such employee is already equal to or higher than such beginning step, he or she shall be placed in the lowest step in the appropriate monthly salary rate range as will grant the employee a pay increase of at least (1) step [approximately five percent (5%)] over his or her current base salary step exclusive of pay premiums such as bilingual pay, special skills or the like. 5.10 Demotion. A. SAMA Middle Management Classifications: When an employee in a Middle Management classification is demoted to a position in a lower classification, he or she shall be placed at a rate in the lower salary rate range which provides at least a five percent (5%) reduction in pay. S. SAMA Administrative Management Classifications: When an employee in a SAMA Administrative Management Classification is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification accordance with the following provisions: 1. The salary rate shall be reduced by at least one (1) step [approximately five percent (5%)]. 2. The new salary rate must be within the appropriate salary rate range. 3. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. 5.11 Probationary Rejection. A promotional employee who is rejected during the probationary period from a SAMA classification shall be returned to the classification in which he or she holds regular status and at his or her former salary step, unless the reasons for failure to complete probation would also be cause for dismissal from City service. SAMA Contract Extension: 2010-14 Page 12 55A-15 5.12 Reallocation of Salary Rate Ranges. An employee who is employed in a classification covered by this Agreement which is reallocated to a different salary rate range from that previously assigned shall be retained in the some salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 5.13 Acting Pax. An employee in a classification covered by this Agreement may be appointed by an Executive Director to serve in an acting capacity during an unplanned absence from work of thirty (30) calendar days or more of another employee represented by SAMA. Represented SAMA employees who are granted "acting pay" shall receive a five percent (5%) increase or the minimum rate of the higher salary range while serving in an "acting" capacity. AMENDED ARTICLE IX (new language in bold italics: deleted provisions lined out) 9.3 Longevity Vacation D. Effective July 1, 2005, employees covered by this Agreement will be permitted to cash-out up to sixty (60) hours of their current year's allocation of longevity vacation accrual on a straight time basis. E. Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Years 2009-10 and 2010-11 an employee's ability to cash out longevity vacation time- The ability to cash out longevity vacation time shall be re-instated July 1, 201 Z0.11. Such deferral shall not affect an employee's ability to be compensated for all accumulated leave upon termination of employment with the City. F_ Effective July 1, 20:1 2011 through June 30, 20:122014, all employees covered by this Agreement will be permitted to cash-out a maximum of one hundred (100) hours of accrued longevity vacation per fiscal year- Effective July 1, 20122014, the maximum permitted yearly cash out of longevity vacation time shall revert back to sixty (60) hours per fiscal year- 9.4 Limitation on Vacation A_ With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take any vacation leave with pay in excess of fifty (50) working days (400 hours) in any one year by any combination of the vacations granted in these rules and regulations. Further, no employee may carry over from one (1) calendar year to the next more than the equivalent of one (1) longevity vacation period and the equivalent of one (1) regular vacation period from the previous two (2) years and vacation not taken SAMA Contract Extension: 2010-14 Page 13 55A-16 and regulations. Further, no employee may carry over from one (1) calendar year to the next more than the equivalent of one (1) longevity vacation period and the equivalent of one (1) regular vacation period from the previous two (2) years and vacation not taken beyond that amount is forfeited. Therefore, the maximum vacation that an employee with less than six (6) years service could accumulate is thirty (30) working days (240 hours) and only an employee with more than twenty (20) years service could carry over and take the authorized maximum of fifty (50) working days (400 hours) in any one year. B. Effective January 1, 2010, no employee may carry over from one (1) calendar year to the next more than the equivalent of *we (2) thrcc (3) longevity vacation periods and the equivalent of one (1) regular vacation period from the current year and the previous two (2) years; vacation not taken beyond that amount is forfeited. Therefore, the maximum vacation that an employee with less than six (6) years service could accumulate is thirty (30) working days (240 hours) and only an employee with more than twenty (20) years service could carry over and take the authorized maximum of seventy-five (75) working days (600 hours) in any one year. 9.6 Management Vacation Benefit. A. All full time SAMA employees covered by this Agreement will be granted an additional five (5) working days [five (5), eight (8)-hour days for forty (40) hour employees] per calendar year over the regular and longevity vacation schedules applicable to represented non-management employees of the City subject to a maximum accrual of twenty-five (25) days of such additional five (5) days per year. B. Effective January 1. 2010, the maximum accrual of management vacation benefit hours shall increase to thirty (30) days (240 hours). 9.7 Management Vacation Pay Option. A. Effected employees shall be given, once each calendar year, the option to receive cash compensation, computed on a straight-time basis, in lieu of up to five (5) 8-hour working days of earned unused management vacation benefits set forth in Section 9.6 above. B. Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Years 2009-10 and 2010-11 their ability to cash out management vacation benefits. The ability to cash out management vacation benefits shall be re-instated July 1, 210:102011. Such deferral shall not affect an employee's ability to be compensated for all accumulated leave upon termination of employment with the City. SAMA Contract Extension: 2010-14 Page 14 55A-17 AMENDED ARTICLE XI (new language in bold italics; deleted provisions lined out) 11.0 EMPLOYEE INSURANCE 11.7 Medical Retirement Subsidy Plan. A. Effective Fiscal Year 2004-05, the City's annual contribution to the Medical Retirement Subsidy Plan for full time SAMA employees shall be increased by an additional one-half percent (0.5%) of the bargaining unit's salary base, under the some Medical Retirement Subsidy Plan it maintains for Executive Officers and Management employees of the City. With this additional contribution amount, the City's contribution toward the Medical Retirement Subsidy Plan for SAMA employees shall equal one percent (1.0%) of the bargaining unit's salary base. B. Effective Fiscal Year 2008-09, the City's annual contribution to the Medical Retirement Subsidy Plan for full time SAMA employees shall be increased by an additional four tenths of one percent (0.40%) of the bargaining unit's salary base. With this additional amount, the City's contribution toward the Medical Retirement Subsidy Plan for SAMA employees shall equal one and four tenths' percent (1.40%) of the bargaining unit's salary base. C. Effective Fiscal Year 2009-10, the City's annual contribution to the Medical Retirement Subsidy Plan for full time SAMA employees shall be increased by an additional point three five tenths of one percent (0.35%) of the bargaining unit's salary base. With this additional amount, the City's contribution toward the Medical Retirement Subsidy Plan for SAMA employees shall equal one and three quarters' percent (1.75%) of the bargaining unit's salary base. The City makes its annual contribution to the Medical Retirement Subsidy plan for employees covered by this Agreement in October of each year. The parties to this Agreement hereby agree as follows: 1. The October 2009 payment of 1.75% of base salary to the Medical Retirement Subsidy plan covering the members of this bargaining unit will be suspended entirely; 2. The October 2010 payment of 1.75% of base salary to the Medical Retirement Subsidy plan covering the members of this bargaining unit will be reduced by 0.75%0_ Therefore, the October 2010 payment by the City to the Medical Retirement Subsidy plan covering the members of this bargaining unit shall be 1 _0% of the bargaining unit's salary base; SAMA Contract Extension: 2010-14 Page 15 55A-18 3. Effective Fiscal year 2011-12, the City's annual contribution to the Medical Retirement Subsidy Plan for full time SAMA employees shall revert back to one and three quarters' percent (1.7590) of the bargaining unit's salary base during the term of this Agreement. AMEND ARTICLE XVIII (new language in bold italics-renumber subsequent anticles in MOU) 18.0 GRIEVANCE REVIEW PROCEDURE 18.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees or the Association concerning the interpretation or application of specific provisions of this Agreement, or of the rules and regulations governing personnel practices or working conditions of the City, except, however, those matters specifically assigned to the jurisdiction of the City Personnel Board by those provisions of the City Charter and the Civil Service Rules and Regulations. No employee shall suffer any reprisal because of filing or processing of a grievance or participation in the Grievance Review Procedure. Netwiths-tanding the previsions of See#ien~1Pr1, the Git-y agrees t-he* upon the wr,44en request- of &AMA ef*er January 1, 2010, the Git-y will eimEpedMously Mee* and eenfer- w0th &AMA for *he sole purpose of amending this M060 *a irnplernen* a grievenee preeedure fer-employees eevered by-*his -Agreemen* sim"arm 4:he grie epee preeedure eent-owned in the M06P*s of e*her employee bar-gaining unit-9, ineluding Management-, the-Gi#y- 18.2 Informal Process. A. An employee must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period of ten (10) calendar days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. SAMA Contract Extension: 2010-14 Page 16 55A-19 8. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate /eve/ of supervision. C. Sn order that this informal procedure may be responsive, both parties involved shall expedite this process. If within five (5) working days, a mutually acceptable solution has not been reached at the informal /eve/ the employee shall then set forth the grievance in writing, indicate the nature of the action desired sign it, and submit /t in duplicate to his or her- immediate supervisor. At this point, the grievance review process becomes forma/_ Should the grievant fall to f//e a written grievance, and /n the manner spec/fled above, within ten (10) work/ng days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. 18.3 Forma/ Process. A. If a grievance is not resolved through the informs/ process, and o written grievance is f/led within the t/me limits set forth above, the grievant's immediate supervisor shall add his or her comments and any justification he or she considers proper sign it, and forward It to the Department Head without undue de/ay or in no case, more than ten (10) calendar days. 8. Sf the grievant files a written grievance with the Department Head in the manner and within the time limits specified then a conference shall be held at the request of the employee or the Department Head. C. The Deportment Head shall inform the employee of his or her action within ten (10) calendar days after receipt of the request of the settlement- The origin/ of the grievance form and the Department Head's decision shall be filed in the personnel records of the department. D_ If no satisfactory settlement has been reached at the departmental level, the employee may, within ten (10) calendar days after being informed by the Department Head of his or her decision on the matter and the reasons thereof, submit the grievance in writing to the City Manager, or his or he.- duly for determination. Fa//ure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settleaf on the basis of the Department Head's response. SAMA Contract Extension: 2010-14 Page 17 55A-20 E. The City Manager or his duly authorized representative, offer a careful review, shall render a final decision on the merits of the grievance, in writing and return it to the grievant within fifteen (15) calendar days offer receiving the grievance- A copy of the written grievance to the City Manager or his or her duly authorized representative, and of the City Manager's or his or her representative's written decision shall be filed in the personnel records of the department and the grievant's personnel jacket maintained in the Personnel Services Department_ F_ After the procedures set forth in this Article have been exhausted, the grievant the Association, and the City shall have all rights and remedies to pursue said grievance under the law_ ARTICLE ".Y XVXXr 154.0 WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT i8A 19.1 During the term of this Agreement, the parties mutually agree that they will not seek to negotiate or bargain concerning wages, hours, or terms and conditions of employment, whether or not covered by the Agreement, or in the negotiations leading thereto, and whether or not such matters were discussed, or were even within the contemplation of the parties during the negotiations leading to this Agreement. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter not covered by this Agreement, or to carry out any provision of salary or benefit tied to another bargaining unit during the term of this Agreement. 19.2 RE-OPENER REGARDING THE POSSIBLE MERGER OF MIDDLE AND ADMSNISTRATIVE MANAGEMENT CATEGORIES OF EMPLOYMENT During FY 2010-11, the City and SAMA agree to re-open the MO[/ for the purpose of discussing the feasibility of merging Middle and Administrative Management categories of employment. ARTICLE YY XMX 203.0 EMERGENCY WAIVER PROVISION SAMA Contract Extension: 2010-14 Page 18 55A-21 19.1 20- 1 In case of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Agreement or the Santa Ana Municipal Code or Resolutions, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergencies. After the City declares the emergency over, this Agreement will be reinstated immediately. SAMA shall have the right to meet and confer with the City regarding the impact of the suspension of the provisions in the Agreement during the emergency. AMENDED ARTICLE YXYXXXc (new language in bold italics; deleted provisions lined out) 212-0.0 TERM 20A 21.1 The term of this Memorandum of Understanding shall commence on the date when the terms and conditions for its effectiveness, as set forth in Article III, Implementation, are fully met, but in no event shall said Memorandum of Understanding become effective prior to 12:01 a.m. on July 1, 2004. This Memorandum of Understanding shall expire and otherwise be fully terminated at 12:00 midnight on June 30, 200812 2014. ARTICLE XXII >QU 2221.0 NON-DISCRIMINATION 21-.1 22.1 The parties mutually recognize and agree fully to protect the rights of all employees covered hereby to join and participate in the activities of SAMA and all other rights in the Employee Relations Resolution (Resolution Number 81-075) and Government Code, Sections 3500 through 3511. i2--1-.2 22.2 The provisions of this Memorandum of Understanding shall be applied equally to all employees covered hereby without favor or discrimination because of race, color, sex, sexual orientation, age, national origin, political or religious opinions or affiliations, or disability status or other factors not directly related to the successful performance of the job. SAMA Contract Extension: 2010-14 Page 19 55A-22 ARTICLE YYXXX >Q(XF Z3.0 22.8 RATIFICATION & EXECUTION Z3.1 The City and SAMA have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and SAMA acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of SAMA and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and SAMA and entered into 4th day of January ZO11. CITY OF SANTA ANA Dated: David N. Ream City Manager RECOMMENDED: ATTEST: Kathie Gonzalez Maria D. Huizar Executive Director Clerk of the Council Personnel Services APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Joseph Straka Assistant City Attorney SAMA Contract Extension: 2010-14 Page 20 55A-23 This Agreement has been ratified by the membership of the Santa Ana Management Association. Dated: By: President By: Vice President SAMA Contract Extension: 2010-14 Page 21 55A-24 M 00 CO LO r OO C0D 00p M f07 R n O C"! 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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On July 1, 1991, the City Council passed and adopted Resolution No. 91- 066 re-establishing the Basic Classification and Compensation Plan for classifications of employment designated as unrepresented Executive Management. The City Council has amended Resolution No. 91-066 on numerous occasions since its adoption. C_ On December 17, 2001, the City Council adopted Resolution No. 2001- 089 which amended Resolution 91-066 to establish that the salary rate for the unrepresented Executive Management classification of Fire Chief be increased by the same percentage increases as provided to members of the Fire Management Association (FMA). D. On July 2, 2007, the City Council adopted Resolution 2007-048, amending Resolution No. 91-066, to provide for certain salary increases and benefits for unrepresented Executive Management, with the exception of the classification of Fire Chief, as were provided to Administrative Management and Middle Management employees represented by the Santa Ana Management Association (SAMA), including a two and one-half percent (2.5%) salary increase to be effective January 1, 2009. E. On December 15, 2008, in an on-going effort to maintain the City's financial stability in a difficult economic climate, the City Council adopted Resolution No. 2008-079, authorizing the City Manager to rescind the salary increase scheduled for January 1, 2009, for classifications of employment designated as unrepresented Executive Management. F_ It is the City's desire that, with the exception of the salary for the classification of Fire Chief, unrepresented Executive Management officers and employees shall continue to be subject to the same adjustments in 55A-31 wages and benefits as are provided for Administrative Management and Middle Management employees represented by SAMA. Therefore, it is the City's desire to: 1. Adjust the base salaries assigned to unrepresented Executive Management classifications by the same percentage, on the same dates, and in the same manner as agreed to be provided to SAMA represented management classifications, during the four-year period July 1, 2010, through June 30, 2014, as shown below: July 1, 2010 = 0% (No increase) July 1, 2011 = 3.0% July 1, 2012 = 3.5% July 1, 2013 = 0% (No increase) 2. Continue to provide the unrepresented Executive Management classification of Fire Chief with the same percentage salary increase(s) as are or as will be provided to members of the FMA. 3. Effective July 1, 2010, eliminate the eligibility for Performance-Based Salary Adjustments provisions as found in Resolution 91-066, (maximum of seven and one-half percent (7.5%) annual salary adjustment), for unrepresented Executive Management officers and employees. In lieu of this performance-based incentive, effective July 1, 2012, one (1) additional step will be added to the steps in rate ranges as set forth in Salary Schedule EM-1 1, for a total of 16 steps, and effective July 1, 2013, one (1) additional step will be added to the steps in rate ranges as set forth in Salary Schedule EM-12, for a total of 17 steps. 4. Unrepresented Executive Management officers and employees shall defer longevity vacation and management vacation cash out for FY 2010-11. Allow an additional carryover of 60 hours of longevity vacation and 40 hours of management vacation and a maximum cash out value of 100 hours and 67 hours for longevity vacation and management vacation, respectively, for FY 2011-12, 2012-13 and 2013-14. 5. For FY 2010-11, reduce the Medical Retiree Subsidy Plan deposit for unrepresented Executive Management officers and employees from one and three-quarters percent (1.75%) to one percent (1%) of base salary. 6. Except as provided in Resolution No. 91-066, and as provided in subsequent amendments thereto, continue to treat unrepresented Executive Management classifications as subject to the same basic classification and compensation plan provisions and their application as SAMA represented management classifications. 55A-32 7. Continue to provide unrepresented Executive Management officers and employees with the same retirement, health and other benefit adjustments, based on similar conditions, as provided to SAMA represented management employees, and continue to provide unrepresented Executive Management officers and employees with additional benefits not provided to SAMA represented management employees, as provided in Resolution 91-066. G. It is now desired to amend Council Resolution No_ 91-066 to effect these objectives. Section 2: That Resolution No. 91-066, as amended, is hereby further amended as follows: A. That Section 1. Management Compensation Plan, as amended, is hereby further amended to read as follows: "Section 1. Management Compensation Plan. There is hereby reestablished a Management Compensation Plan for unrepresented Executive Management officers and employees of the City of Santa Ana." B. That Section 2. Schedule of Salaries, as amended, is hereby further amended to read as follows: "Section 2. Schedule of Salaries. A. Two separate salary schedules showing salary rate ranges for classifications of employment designated as Executive Management (EM) are attached hereto in matrix format and are made a part hereof as though set forth in full herein. These schedules and their respective effective dates are listed as follows: Salary Schedule Unrepresented Category of Employment No_ Effective Date Executive Management (EM) EM-11 7/1/11" EM-12 7/1/12- Effective July 1, 2011 (Exhibit A hereto), the salary matrices showing monthly pay ranges and steps in effect on June 30, 201 1 , assigned to classifications of employment designated as unrepresented Executive Management (EM), will be increased by three percent (3%) which is equal to the percentage increase as that provided for classifications represented by SAMA. - Effective July 1, 2012 (Exhibit B hereto), the salary matrices showing monthly pay ranges and steps in effect on June 30, 2012, assigned to classifications of employment designated as unrepresented Executive Management (EM), will be 55A-33 increased by three and one-half percent (3.5%) which is equal to the percentage increase as that provided for classification represented by SAMA. B. Effective July 1, 2012, one (1) salary step will be added to the EM salary step range making a total of sixteen (16) salary steps. This salary step is added in lieu of the incentive based merit pay program eliminated July 1, 2010. C. Effective July 1, 2013, one (1) salary step will be added to the EM salary step range making for a total of seventeen (17) salary steps. This salary step is added in leiu of the incentive based merit pay program eliminated July 1, 2010. D. Each unrepresented Executive Management (EM) salary schedule contains numerous salary rate ranges, each range comprised of seventeen (17) separate rates of pay shown in monthly amounts. The respective rate ranges are identified by a two-digit number preceded by the capital letters "EM" for Executive Management and the separate rates of pay or steps within each salary rate range are identified by the numbers "1" through "17" inclusive, with Step "1" being the lowest or minimum rate of the range, Step "9" is the middle or midpoint rate of the range, and Step "17" being the highest or maximum rate." C. That Section 4.3 Compensation Plan Changes for Unrepresented Executive Management Classifications, as amended, is hereby further amended to read as follows: "Section 4.3 Compensation Plan Changes for Unrepresented Executive Management Classifications. Unless specified otherwise herein, unrepresented Executive Management officers and employees will be subject to the same changes in compensation plan provisions, including but not limited to, bilingual pay; sick leave maximum accrual; bereavement leave; holidays; longevity vacation cash out; medical and dental insurance; access to participate in City's Vision Plan; retirement; residency requirements; medical retirement subsidy plan; and work week schedule, as provided or will be provided to SAMA represented Middle Management employees on or after July 1, 2010." D. That Section 6.21 Medical Retirement Subsidy Plan, as amended, is hereby further amended to read as follows: "6.21 Medical Retirement Subsidy Plan. A. Based on the first payroll period in October 2001 and no later than October 31 each year thereafter, the City shall contribute to a fund for employees covered by this Resolution for the purpose of providing a retiree health insurance subsidy plan. Eligibility for and the specific payments made to affected employees shall be designated by the City Manager. The plan shall be administered by the City, at no cost to the affected employees. The funds contributed by the City will be maintained in such a manner as to insure that they are invested in a reasonably secure plan that 55A-34 bears a reasonable rate of interest/growth given current financial markets, such as investments made pursuant to the then current Statement of Investment Policy for the City of Santa Ana. This program is for medical insurance premium reduction only and will be implemented by February 1, 2002, for an employee retiring after July 1, 2001. If an employee retires between July 1, 2001 and February 1, 2002, he or she will be eligible to participate in said plan; however, in no event, will he or she be eligible to utilize this program until February 1, 2002. Additionally, in no event shall said employee(s) be eligible for retroactive medical program reduction assistance prior to February 1, 2002. B. For Fiscal Year 2009-10, the City's annual contribution to the Medical Retirement Subsidy Plan for employees covered by this Resolution shall equal one and three-quarters' percent (1.75%) of the salary base of unrepresented Executive Management employees, which is equal to that provided for classifications represented by SAMA. 1. Effective October 2010, the payment of one and three-quarters' percent (1.75%) of base salary to the Medical Retirement Subsidy Plan for employees covered by this Resolution will be reduced by three-quarters of one percent (0.75%); therefore, the October 2010 payment by the City to the Medical Retirement Subsidy Plan for employees covered by this Resolution shall be one percent (1 of the salary base of unrepresented Executive Management employees, which is equal to that provided for classifications represented by SAMA. 2. Effective Fiscal Year 2011-12, the City's annual contribution to the Medical Retirement Subsidy Plan shall revert back to one and three-quarters' percent (1.75%) of the salary base of unrepresented Executive Management employees covered by this Resolution, which is equal to that provided for classifications represented by SAMA." E. That Section 7. Management Performance-Based Evaluation System, and subsections thereof, as amended, are hereby further amended to read as follows: "Section 7. Management Performance-Based Evaluation System. There is hereby established a performance based evaluation system for officers and employees employed in classes herein designated as unrepresented Executive Management (EM), the provisions of which are set forth herein below. 7.1 Purpose. The basic purpose of the performance-based evaluation system is to help attract, retain and motivate highly competent managers and to provide them with incentive to excel. 7.2 Salary Advancement Within Rate Ranges. The following provisions shall govern salary advancement within rate ranges for officers and employees in classes herein designated as unrepresented Executive Management (EM): 55A-35 A_ For any officer or employee in an unrepresented Executive Management classification covered by this resolution who has been initially appointed to a step lower than Step "17", advancement to the next higher step in the Unrepresented Executive Management (EM) Schedule of Salary rate ranges may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. Such advancement shall be in two-step increments, each step being equivalent to approximately two and one-half percent (2.5%), for a total annual increase of approximately five percent (5%) per year. For example, an employee covered by Resolution 91-066 shall advance from Step 1 to Step 3, Step 3 to Step 5, Step 5 to Step 7, Step 7 to Step 9, Step 9 to Step 11, Step 11 to Step 13, Step 13 to Step 15, or Step 15 to Step 17 (the top step in the salary rate range), respectively. This two-step advancement shall be granted for continued meritorious and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of such merit step increase, if granted, shall be the first (1s) day of the month following the completion of one (1) year of service at the step from which said employee is being advanced. B. Each unrepresented Executive Management employee who has not yet reached Step 15 of the Unrepresented Executive Management (EM) Schedule of Salary rate ranges shall continue to progress through the salary rate range at the rate of two (2) steps per year, approximately five percent (5%), until Step 15 is achieved. C. For the period of Fiscal Years 2010-11 and 2011-12, no unrepresented Executive Management employee shall advance further than Step 15 of the salary rate range. D. Effective July 1, 2012, each unrepresented Executive Management employee who has already reached Step 15 shall be eligible to receive a one (1) step merit salary increase, approximately two and one-half percent (2.5%), effective on his or her anniversary date in class. Said employee shall then be at Step 16 of his or her salary rate range. E. Effective July 1, 2013, each unrepresented Executive Management employee who has already reached Step 16 shall be eligible to receive a one (1) step merit salary increase, approximately two and one-half percent (2.5%), effective on his or her anniversary date in class. Said employee shall then be at Step 17 of his or her salary rate range. F_ Merit advancement shall require the following: 1. There shall be on file in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. 2. The City Manager, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the 55A-36 Executive Director of Personnel Services a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore- The employee shall be notified by the City Manager as to such recommendations and shall be informed of the reasons. 3. No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above Step "1" results from promotion under the provisions of Section 5.5 of this Resolution. 4. Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be retroactive to the first (1s) day of the month following the completion of the required length of service. G. When an employee in an unrepresented Executive Management classification has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional continued service in the classification and shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional continued service in the classification. H. An employee in an unrepresented Executive Management classification, who is being paid at any salary step above Step "l," may be reduced to the next lower step in the appropriate salary rate range by the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 7.2, Paragraph (G) above, and such officer or employee may be considered for readvancement under the same provisions as contained in Subsection 7.2, Paragraph (G) above." 1. That Section 7.5 Performance-Based Salary Adiustments, as amended, is hereby further amended to read as follows: "Section 7.5. Performance-Based Salary Adjustments. Effective July 1, 2010, performance-based salary adjustments, maximum of seven and one-half percent (7.5%), for unrepresented Executive Management officers and employees, is eliminated. In lieu of this performance-based incentive, effective July 1, 2012, one (1) merit step will be added to the steps in the rate ranges as provided for in Salary Schedule EM-1 1, for a total of 16 steps, and effective July 1, 2013, one (1) merit step will be added to the steps in the rate ranges as provided for in Salary Schedule EM-12, for a total of 17 steps. Attainment of these merit steps shall be in accordance with Section 7.2, Paragraphs (G) and (H), above." Section 3: That except as amended by this Resolution, all other provisions of Resolution No. 91-066, as amended, shall remain in full force and effect. Section 4: This Resolution shall be operative from and after January 4, 201 1 . 55A-37 ADOPTED this 4th day of January 2011. Miguel A. Pulido Mayor APPROVED AS TO FORM: City Attorney's Office By: Joseph Straka Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2011- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55A-38 f~ LR7 u-> M o CO co CD O MO CD f' r~ M O7 r N r co L(7 Co OO M CD O M r~ W Lf,> LO LO Q) L(> ~ M c07 L O/7 00 O M OLR W CD 6) N LOB ca=? 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