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1998-086-Approving Memorandum Of Understanding Between The Town Of Los Gatos And The Town Employees AssociationRESOLUTION 1998 - 86 RESOLUTION OF THE TOWN OF LOS GATOS APPROVING MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS GATOS AND THE TOWN EMPLOYEES ASSOCIATION WHEREAS, representatives of the Town and the Town Employees Association, in accordance with the Town's Employer - Employee Relations Resolution No. 1974 -41, have met and conferred in good faith within the scope of representation, and WHEREAS, the members of the Town Employees Association have ratified the proposed 1998 -00 Memorandum of Understanding, RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town Manager is authorized to sign the 1998 -00 Memorandum of Understanding on behalf of the Town of Los Gatos. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 15th day of June, 1998 by the following vote: COUNCIL MEMBERS: AYES: Joanne Benjamin, Steven Blanton, Mayor Linda Lubeck. NAYS: None ABSENT: Randy Attaway, Jan Hutchins ABSTAIN: None C � SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS 10S LOS GATOS, CALIFORNIA TOWN OF LOS GATOS AND THE TOWN EMPLOYEES ASSOCIATION MEMORANDUM OF UNDERSTANDING JULY 1, 1998 - JUNE 30, 2000 TABLE OF CONTENTS Section Title Page PREAMBLE.................. ............................... 1 TERM....................... ............................... 1 GOAL....................... ............................... 1 1. SCOPE OF REPRESENTATION .. ............................... 2 2. TOWN EMPLOYER - EMPLOYEE RELATIONS ..................... 2 a. T.E.A. Rights ............ ............................... 2 b. Town Employer - Employee Relations Resolution ............... 2 C. Employee Rights ......... ............................... 3 d. Management Rights 3 ...... ............................... 3. COMPREHENSIVENESS OF AGREEMENT ....................... 4 4. SAVINGS CLAUSE ............ ............................... 4 5, PAYROLL DEDUCTION 4 ........ ............................... 6. NON - DISCRIMINATION 5 6.1 General Provision Regarding Americans With Disabilities Act ..... 7. EMPLOYMENT ............... ............................... 5 5 a. Step Placement for New Hires ............................. b. Probationary Period 5 C. Performance Evaluations .. ............................... 6 6 d. Promotions 7 e. Work Day/Week ........................................ 8 ............................... f. Layoff Policy . • .. • . • • .... 8 g. Outside Employment ...... ............................... 8 h. Reclassification .......... ............................... 8. SALARY AND OTHER COMPENSATION .......................... 88 a. Town Compensation Policies .............................. 9 b. Compensation ........... ............................... 9 C. Overtime ............... ............................... d. Call Back ............... ............................... 9 e. Deferred Compensation .................................. 10 f. Out -of- Classification Pay ... ............................... 10 g. Bilingual Incentive Pay 11 h. Uniform Allowance ....... ............................... 11 ii i. Incentive Pay Program ................................... 1 j. Holiday Compensation .... ............................... I 9. PAYROLL/PAYCHECKS ....................................... 13 a. Payroll Periods .......... ............................... 13 b. Paychecks .............. ............................... 13 10. HOLIDAYS .................................................. 13 11. INSURANCE PROGRAMS ...... ............................... 14 a. Life Insurance .......................................... 14 b. Disability Insurance ....... ............................... 14 C. Workers' Compensation .................................. 14 d. Liability Insurance ....................................... 14 e. Employee Assistance Program ............................. 14 f. Unemployment Insurance ................................ 15 12. CASH ALLOCATION PLAN ..... ............................... 15 a. Taxable Benefit ......................................... 15 b. Pre-Tax Benefit ......................................... 15 C. Deferred Compensation (457) Plan .......................... 15 13. PUBLIC EMPLOYEES RETIREMENT SYSTEM ..................... 15 a. 2% At 55 ............... ............................... 15 14, BENEFITS ACCRUAL/PAYMENT ................................ 16 15. VACATION AND LEAVES ....... ............................... 16 a. Vacation and Annual Leave Scheduling ...................... 16 b. Vacation Accrual ......... ............................... 16 C. Sick Leave ............................................ 17 d. Sick Leave Cash-Out Program ............................. 17 e. Annual Leave ........... ............................... 18 f. Personal Leave ......................................... 18 9. Medical/Maternity/Family Leave ............................ 18 h. Bereavement Leave ..................................... 18 i. Disaster Leave ......................................... 19 j. Military Leave .......................................... 19 k. Jury Duty .............................................. 19 I. Leave Without Pay ...................................... 19 M. Leave Balances .......... ............................... 20 n. Catastrophic Time Bank .................................. 20 16. GRIEVANCE PROCEDURE .................................... 20 17. MISCELLANEOUS ISSUES .................................... 22 a. Personnel Rules ........................................ 22 iii b. Personnel Manual ........ ............................... 22 C. Mileage Reimbursement ... ............................... 22 d. Vehicle Acquisition ....... ............................... 22 e. Discipline ............... ............................... 22 f. Library Card ............ ............................... 22 g. Benefit Application ....... ............................... 23 18. TRAINING PAY ............... ............................... 23 19. TOWN VEHICLES ............. ............................... 23 20. COMPLETE AGREEMENT ...... ............................... 23 Signature Page ..................... ............................... 23 APPENDIX A - Scope of Representation and Salary Range ................. 25 APPENDIX B - Bi- Weekly Salary Schedule Effective June 28, 1998 ........... 26 Bi- Weekly Salary Schedule Effective June 27, 1999 ........... 27 APPENDIX C - Exceptional Performance Bonus .......................... 28 APPENDIX D - Pay and Classification System ........................... 30 iv TOWN OF LOS GATOS AND THE TOWN EMPLOYEES ASSOCIATION COMPREHENSIVE MEMORANDUM OF UNDERSTANDING ON SALARIES, FRINGE BENEFITS AND WORKING CONDITIONS The authorized representatives of the Town of Los Gatos hereafter referred to as the "Town" and the authorized representatives of the Town of Los Gatos Employees Association hereafter referred to as "T.E.A." do jointly accept and agree to all the terms and conditions of employment set forth in this comprehensive memorandum of understanding pursuant to Town Resolution 1974 -41 of the Town of Los Gatos and the Meyers - Milias -Brown Act, Section 3500 et. seq. of the Government Code. This understanding shall apply to represented employees assigned to those classifications listed on Appendix "A ". When classifications are created which fall under the representation of T.E.A., this understanding shall also apply. This agreement supersedes all previous agreements between the Town and T.E.A.. The terms and conditions of employment set forth in this understanding have been discussed in good faith by the authorized representatives of the Town and the authorized representatives of the employees. T.E.A. agrees to recommend acceptance by the employees of all terms and conditions set forth herein. Following said acceptance by T.E.A., authorized representatives of the Town agree to recommend to the Town Council that all terms and conditions set forth herein be approved by resolution. Upon adoption of said resolution, all terms and conditions so incorporated shall become effective without further action by either party. rra;� „I The term of this understanding shall commence on July 1, 1998 and terminate on June 30, 2000. GOAL This Memorandum of Understanding (MOU) has been prepared in a spirit of cooperation between T.E.A. and the Town. The purpose of this MOU is to define all presently known issues concerning employment, foster a sense of team work between T.E.A. and the Town, create conditions under which the highest quality of public service is delivered. 1 1. SCOPE OF REPRESENTATION Employees represented by T.E.A. are those in permanent positions in the classifications listed in Appendix A. If it should become necessary to reduce the hours of any employee whose classification is listed in Appendix A, such employee's representation by T.E.A. will not be affected. The Town agrees to notify T.E.A. before filling a vacated represented position with an hourly employee. 2. TOWN EMPLOYER - EMPLOYEE RELATIONS a. T.E.A. Rights The Town recognizes the employees' right to join and participate in T.E.A.. T.E.A. shall provide the Town with a list of T.E.A. officers and department representatives. T.E.A. shall distribute to all new unit employees materials furnished for such purposes by T.E.A.. Upon request of any employee represented by this agreement, a T.E.A. representative shall be present during meetings involving the individual employee in disciplinary matters. Oral reprimands and performance evaluations are not included in the above. To the extent possible, disciplinary and grievance matters shall be considered during normal working hours and with pay. T.E.A. shall have access to its members, bulletin boards, and Town mail system on Town time. Up to five (5) T.E.A. members shall be allowed, as long as there is no disruption in work, up to eight (8) hours for T.E.A. President, and two (2) hours for each T.E.A. member each month of release time off with pay for meeting and conferring, meeting and consulting or the processing of grievances in accordance with the grievance procedure, Section 14 of this MOU. Town initiated meetings are not subject to release time limits. Such T.E.A. members shall first obtain permission from department heads before leaving their work or work locations. T.E.A. general membership meetings will continue to be held during lunch or after work. b. Town Emlloyer- Employee Relations Resolution T.E.A. and the Town recognize the existing language in Town Resolution 1974 -41, or its successor as it governs all aspects of labor relations in the Town. Any changes in Resolution 1974 -41 which apply to T.E.A. will be made after meeting and consulting with T.E.A.. 4 C. Employee Rights The Town adopts, in principle, the following rights, duties and responsibilities of its employees: (1) Organize and select leaders and representatives. (2) Employee and Town actions shall be governed by the Memorandum of Understanding (MOU), personnel rules and Town policies. (3) At T.E.A.'s request the Town Manager shall meet twice during the term of this agreement with T.E.A. to discuss matters of employee interest. (4) Utilization of the Disciplinary Procedure (see Resolution 1974 -41 or its successor, if any during the term of this MOU, and Ordinance No. 1593). (5) Right to request a review of his/her classification and receive a response to the request. d. Management Rights The rights of the Town include, but are not limited to the exclusive right to: (1) Determine the mission of its constituent departments, commissions and boards; (2) Set the standards of service; (3) Determine the procedures and standards of selection for employment and promotion; (4) Direct its employees; (5) Take disciplinary action in accordance with adopted disciplinary procedures, recognizing the employee's right to due process; (6) Relieve its employees from duty because of lack of work or for other legitimate reasons; (7) Maintain the efficiency of governmental operations; (8) Determine the methods, means and personnel by which government operations are to be conducted; (9) Determine the content of job classifications; M (10) Take all necessary action to determine when an emergency exists and to carry out its mission in emergencies including the requirement that employees work overtime. Any question regarding the existence of an emergency is determined by the Town Manager, whose decision shall be final; (11) Exercise control over its organization and the technology of performing its work; (12) Refer any question regarding implementation or interpretation of the M.O.U. to the Town Manager or the Town Personnel Officer for a determination; 3. COMPREHENSIVENESS OF AGREEMENT a. The Town and T.E.A. agree that this agreement represents all wages, hours, and working conditions subject to the meet and confer process and available to employees. b. In the event that a local, State or Federal law significantly impacts the terms of this MOU, the Town will meet and consult with T.E.A. regarding its implementation. In some cases, this may occur after the law or rule has been adopted. 4. SAVINGS CLAUSE If any provision or the application of any provision of this agreement as implemented should be rendered or declared invalid by any final court action or decree or by reasons of any preemptive legislation, the remaining sections of this agreement shall remain in full force and effect for the duration of this agreement. 5. PAYROLL DEDUCTION The Town will deduct from every paycheck and remit to the Association, the normal and regular monthly Association membership dues as voluntarily authorized in writing by the employees subject to the following conditions: a. Such deduction shall be made only upon submission of deduction form to the Personnel Manager. Said form shall be duly completed and signed by the employee. b. The Town shall not be obligated to put into effect any new, changed, or discontinued deduction until the pay period commencing thirty (30) days or longer after such submission. 11 Every effort will be made to remit dues to the T.E.A. within two weeks of deduction from members' wages. T.E.A. agrees to indemnify and hold the Town harmless for any suits, claims, demands, or liabilities that may arise as a result of the Town withholding such dues. 6. NON - DISCRIMINATION The Town and T.E.A. agree that all provisions of this Agreement shall be applied equally to all employees covered herein without favor or discrimination because of race, creed, color, sex, age, national origin, political or religious affiliation, marital status, sexual orientation, or physical or mental disability. 6.1 General Provision Regarding Americans With Disabilities Act (ADA, a. Because the ADA requires accommodations for individuals protected under the Act, T.E.A. recognizes the Town's obligation to comply with all provisions of the ADA on a case by case basis. b. T.E.A. recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated before any adjustment is made in working conditions. T.E.A. will be notified of these proposed accommodations prior to implementation by the Town. C. Any accommodation provided to an individual, protected by the ADA shall not establish a past practice. 7. EMPLOYMENT a. Step Placement for New Hires T.E.A. recognizes the sole right of the Town to determine the salary and wage rate for new hires. b. Probationary Period The probationary period shall be twelve (12) months for all newly hired employees and those receiving promotions. Probationary employees will be evaluated quarterly. Promoted employees can be considered for satisfactory completion of the probationary period after the six month evaluation. Promoted probationary employees, shall have all rights under this agreement, full and complete access to the grievance procedure, including instances of suspension, demotion and termination. 5 Any permanent employee not satisfactorily completing the probationary period following a promotion will be reinstated to their previous classification in accordance with the Town Personnel Rules. C. Performance Evaluations In accordance with the Personnel Rules, it is intended that performance evaluations take place at least annually but no later than 15 days prior to the anniversary date of the employee's date of hire or the date the employee entered their classification. If an employee's merit increase is withheld, subsequent evaluations will return to the original anniversary date. Employee evaluation forms shall include a section to be checked indicating whether an employee agrees or disagrees with his /her evaluation. All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not necessarily imply agreement with the evaluation. An employee may attach separate written comments to his /her evaluation. If an employee does not receive an evaluation on the date it is due and the supervisor subsequently finds that the employee would have been entitled to a merit increase as of the anniversary date, the merit increase will be come effective as of the first day of the pay period in which the anniversary date occurs. The Town will make every attempt to see that the performance evaluations are completed in a timely manner. d. Promotions The Town and T.E.A. agree that it is in the best interest of both the Town and its employees to foster promotion of incumbent employees. The Town will consider the qualifications of incumbent personnel prior to determining whether an open or promotional examination shall be used to fill a vacancy in T.E.A.- represented classifications. Employees desiring promotion or change of job classification shall keep an interest card on file with the Town Personnel Department. 31 The Town and T.E.A. recognize the Town's sole right to determine the method for the selection of Town employees through either an open or promotional examination process. If a determination is made by the Town that a promotional examination will be used to fill a vacant position, any qualified employees who participate in the examination process shall be allowed time off from regularly scheduled work in order to participate in the examination process if the examination process is scheduled during the employee's normal work period. There shall be no overtime paid for participation in the examination process. All Town job announcements shall be posted on Town bulletin boards and circulated to the T.E.A. President prior to public advertisement. e. Work Day/Week The normal work day is defined as no more than eight (8), nine (9), ten (10), or eleven (11) consecutive hours of work time, with a single lunch break. A normal work day shall be followed by a minimum of ten (10) hours off. The work week is defined as forty (40) hours of work during any consecutive seven (7) day period. A minimum of one (1) forty -eight (48) hour period without scheduled work shall be provided to each employee during any consecutive seven (7) day period with the exception that employees employed in the Town Library shall not be scheduled less than two (2) consecutive days off within a seven day period more than thirteen (13) times in a calendar year. Flex -time work schedules consistent with the definitions of normal work day and normal work week may be assigned by the Town at its sole discretion. The Town shall provide no less than seventy -two (72) hours notice to affected employees regarding a change in regular work schedules. Employees who work in the Library shall be provided no less than 14 calendar days notice regarding a change in regular work schedules. Flex days shall be identified and approved by the Department Head and Town Manager as part of the approval of a flex -time work schedule as well as the designation of the 48 hour period without scheduled work. Employees may also make requests for temporary changes to their normal work schedule. In those cases, the employee's schedule may change with the approval of the employeee's department head (e.g. an earlier start and end of shift or a change in the number of hours per day), so long as that change does not result in overtime liability to the Town. The Town has the discretionary right to alter work schedules without notice during emergency situations. 7 f. Layoff Policy A minimum thirty (30) calendar days notice shall be provided to any employee to be laid off. Determination of layoff lists shall consider "performance" as well as seniority with equal weight given to both seniority and performance. Layoff shall take place within classifications by individual department. In the event of a tie in overall score, the employee having more seniority shall not be subject to layoff. Wherever a reduction in workforce is deemed necessary by the Town, every attempt will be made to accomplish such reduction by attrition or reduction in work hours in lieu of layoff. Every effort shall be made to place qualified laid -off employees in other positions within Town government. g. Outside Employment The Town and T.E.A. agree that outside employment of full time T.E.A. - represented employees shall be governed by California Government code Sections 1125 -1128 and that the Town shall develop and apply regulations to assure compliance. Outside employment shall be reviewed and approved by the Department Head and Town Manager on an annual basis. h. Reclassification T.E.A. recognizes the sole right of the Town to reclassify positions. 8. SALARY AND OTHER COMPENSATION a. Town Compensation Policies Town and T.E.A. agree that this Agreement has been negotiated consistent with Town compensation policies through the term of this agreement. The specific policies are: (1) Total compensation to be utilized in the analysis of all Town compensation. (2) Marketplace consideration in establishing compensation. (3) Average or above - average total compensation for all Town classifications. (4) No reduction in individual employee total compensation levels 91 (5) Final determination on changes in compensation based on Town's ability to pay. b. Compensation The salary schedules listed in Appendix B shall be effective June 28, 1998, and June 27, 1999, respectively. C. Overtime With the approval of the Town Manager, and when necessary to perform essential work, a department head may require an employee to work at any time other than during regular working hours until such work is completed. Overtime is scheduled solely at the discretion of the Town. An employee directed by his /her department head or the Town Manager to work in excess of forty (40) hours in a designated work week, shall be compensated at the rate of one and one -half times the employee's regular hourly rate. Hours charged to available paid leave, shall be counted as time worked for computation of overtime payments. Compensatory time can not be used in the pay - period in which it is earned. Effective June 25, 2000, compensatory time off shall not be regarded as hours worked for the purposes of overtime calculation. The Department Head or Town Manager may permit an employee to take compensatory time in lieu of paid overtime. With Department Head approval, employees shall be permitted to accumulate compensatory time only to a maximum of sixty (60) hours. When the maximum level of compensatory time is reached, overtime shall be paid. The maximum accumulated compensatory time for Communication Dispatchers only shall be 100 hours with the condition that no more than 50 working hours maximum time off will be allowed in conjunction with any other leave. Annual review of the impact of those changes will occur to determine if there is any adverse impact on scheduling. The Town will attempt to avoid scheduling overtime that conflicts with an employee's personal plans unless it cannot be avoided. d. Call Back A minimum of three (3) hours pay or its equivalent in compensatory time off, at the rate of time and one -half, shall be guaranteed for every employee, who, after leaving his /her place of duty, is required to return to duty without advance notice of at least fourteen (14) calendar days. 0 There will be a three (3) hour minimum at the call back overtime rate for Town commission /council meetings which begin two hours or more than either the start of or end of the employee's regularly scheduled shift. At the employee's option but with Department Head's approval, employees may flex their schedule at the straight -time rate in -lieu of the call back provision of this paragraph. e. Deferred Compensation A Town program of deferred compensation shall be available to T.E.A. represented employees. The Town makes no representation on the merit of the plan nor any of the investment products or instruments which may be offered by the plan. The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier. f. Out -of- Classification Pay The Town and T.E.A. agree that it is the intent of Town management, whenever possible, to avoid working an employee out of classification for a prolonged period of time. Compensation for out -of- classification work shall be an additional five percent (5 %) of the regular pay of the employee's permanent classification or the first step of the higher classification, whichever is greater. Employees appointed to work out -of -class will receive out -of- classification pay beginning the first day of the out -of- classification assignment. Performance of duties as a vacation relief does not automatically qualify as out-of-classification. For purposes of this section, an out -of- classification assignment is defined as the full time performance of the essential functions of an authorized, funded, permanent position in another classification by a qualified employee. "Essential functions" shall be as defined in the Essential Functions section of the appropriate job specification. Any employee who believes they are working out -of -class may request a review of their classification. Training programs mutually agreed to by the Town and T.E.A. which are designed to enhance and /or provide career development opportunities shall not be subject to this provision. 10 g. Bilingual Incentive Pay Employees filling classifications specifically requiring bilingual ability and passing the Town's certified examination shall be compensated at 2.5% above the normal compensation range for the regular classification. h. Uniform Allowance (1) An initial uniform consisting of all items on the Town - approved list shall be supplied by the Town to new Park Services Officer and Town- designated Community Services Officer and Parking Control Officer employees; thereafter the Town shall provide incumbent Park Services Officer employees with a uniform allowance of $450 per year and designated Community Service Officer and Parking Control Officer employees with a uniform allowance of $350 per year to be paid in the payroll check during January of each year. The uniform allowance will be prorated for new employees, except that new employees shall receive a minimum of 1/2 of the year's uniform allowance if hired after July 1. (2) T.E.A. recognizes the Town's right to specify uniform and demand that employees be in proper uniform at all times. (3) In the event that an employee who does not receive a uniform allowance damages his /her clothing in the performance of his /her duties, the employee may submit a claim for reimbursement to his /her Department Head for the repair /replacement of damaged articles to the Town. i. Incentive Pay Program The incentive pay program detailed in Appendix "C" is recognized as a discretionary program on the part of the Town and shall continue in force during the term of this Agreement. Costs of this program shall not be charged to T.E.A.'s total compensation package. Holiday Compensation 1. Employees will receive eight hours of regular pay when scheduled to have the holiday off (8 hours total). If the employee's scheduled day off occurs on a recognized Town holiday the employee will receive eight hours of holiday pay (e.g. eight hours in addition to all time worked or paid in the pay period). 11 2. Employees who are required to work on a holiday, recognized in the MOU, will be compensated as follows: (a) Workday If the holiday occurs on a normally scheduled workday, the employee will receive eight hours of holiday pay and time and one -half for the hours actually worked on the holiday (20 hours total). (b) Day Off If the holiday occurs on a normally scheduled day off the employee will receive eight hours of holiday pay and eight hours of straight time plus time and one -half for the hours actually worked on the holiday (28 hours total.) (c) Dispatchers Dispatchers will receive compensation in -lieu of holiday time off equal to eighty -eight hours to be distributed as forty-four hours of base pay in separate payroll checks distributed the last working week of November and May of each year to be paid in the payroll check. (Permanent half -time positions will be prorated to twenty -two hours.) 3. Notwithstanding any other provision of this section, employees who have voluntarily requested and received approval to work a flex -time work schedule shall : a. Receive eight hours of regular pay when a holiday occurs on the agreed upon regularly scheduled work day that they do not work (8 hours total). Employees may use accrued vacation time, personal leave, or take unpaid leave to make up the difference between the provided eight hours of holiday pay and the actual number of regularly scheduled working hours for that day; b. Not receive holiday pay when the employee's regularly scheduled day off occurs on a recognized Town holiday. 12 Ira 10 PAYROLL/PAYCHECKS a. Payroll Periods The Town and T.E.A. agree that a biweekly payroll period shall be utilized subject to the following conditions: (1) Employee pay shall not be withheld more than seven (7) calendar days following the end of the payroll period; however, overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of pay checks. This may also occur at the end of the Fiscal or Calendar year. (2) All Town employees shall be compensated on a biweekly basis. b. Paychecks (1) The Town shall provide an optional electronic check deposit system for use by employees. (2) Every effort will be made to make paychecks available to employees as soon as checks are signed and ready for distribution. HOLIDAYS a. The following shall be observed as eight (8) hour holidays for members of the unit: January 1st (New Year's Day) The 3rd Monday in January (Martin Luther King's Birthday) The 3rd Monday in February (President's Day) The last Monday in May (Memorial Day) July 4th (Independence Day) The first Monday in September (Labor Day) Thanksgiving Day The Friday following Thanksgiving Day December 25th (Christmas Day) Four (4) hours each on December 24 and 31 Every day declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday. Holidays which fall on Saturday shall be observed on the Friday prior, and holidays which fall on Sunday shall be observed on the following Monday. 191 11. INSURANCE PROGRAMS a. Life Insurance Town to pay premiums on minimum coverage of $50,000 and $50,000 Accidental Death benefit. Additional life insurance may be purchased by the employee, equal to once or twice the employee's base salary, not to exceed $200,000. b. Disability Insurance The Town will provide a Short Term Disability policy effective the 8th calendar day ; coverage of 60% of weekly earning up to maximum of $1300/week for 12 weeks. Long Term Disability benefits begin on the 91 st day of disability; coverage of 60% of monthly earnings up to a maximum of $6000 /month. C. Workers' Compensation The Town and T.E.A. agree that employees who sustain illness or injury arising out of and in the course of their Town employment shall receive benefits equal to those mandated by the State of California plus the difference between State mandated benefits and the equivalent of one hundred percent (100 %) of the individual's regular salary, if any, paid by the Town for the first thirty (30) calendar days of absence. Town shall deduct leave balances from the employee's accrued sick leave, accumulated overtime, vacation leave, and annual leave (in that order) for all Town paid compensation. An employee may at his /her discretion advise the Town that he /she does not wish to be compensated at a level above the State - mandated benefits. In such case, the Town would provide no further compensation and there would be no charge to leave balances. An employee without leave balances shall only be paid State mandated benefits. Effective the 31 st day of disability, the employee may elect to supplement the State mandated benefits with the Town's Short Term /Long Term Disability Insurance. STD benefits will be reduced by the amount of periodic payments the employee is entitled to through Worker's Compensation. d. Liability Insurance The Town shall continue to maintain a public officials liability insurance policy covering all Town employees in the execution of their official duties. e. Employee Assistance Program Premium shall be paid by the Town. 14 f. Unemployment Insurance The Town will provide State mandated benefits through a reimbursement program. 12. CASH ALLOCATION PLAN Effective June 28, 1998, The Town will provide an allocation of $540.00 per month, per employee. Effective June 27, 1999, the Town will provide an allocation of $550.00 per month, per employee. Allocation shall be made for individual positions based on the Position and Classification Plan. Full -time employees shall receive 100% of the cash allocation, part-time employees shall receive 75 %, half -time employees shall receive 50 %. There will be an annual 30 day enrollment period. a. Taxable Benefit Any portion of the benefit allocation may be taken as a taxable cash option. The cash option shall be paid in two equal amounts in December and June. b. Pre -Tax Benefits Pre -tax benefits available in the program are medical and dental insurance. Medical benefits are available through the Public Employees' Retirement Health Benefits Program. Dental insurance is available through Delta Dental Plan. C. Deferred Compensation (457) Plan Any portion of the benefit allocation may be placed with the Town's approved deferred compensation carrier. The Town makes no representation on the merit of the plan nor any of the investment products or instruments which may be offered by the plan. The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier. 13. PUBLIC EMPLOYEES RETIREMENT SYSTEM (P E R S ) a. 2% at 55 Effective 12- 16 -92, the Town's contract with the Public Employee's Retirement System (PERS) includes the 2% at 55 retirement formula for eligible Miscellaneous Town employees (regular employees). 15 on 15 BENEFITS ACCRUAUPAYMENT There shall be no accrual or payment of benefits during unauthorized leave, suspension without pay, or leave without pay except as mandated by the Family and Medical Leave Act. VACATION AND LEAVES a. Vacation and Annual Leave Scheduling All vacation and annual leave scheduling is subject to the approval of the Town. Employees are required to request time off in advance. The earlier requests are submitted, the greater likelihood the request will be honored. Every attempt will be made by the Town to honor pre- approved vacations. If a pre- approved vacation is cancelled due to the scheduling needs of the Town, the Town will reimburse the employee for verified deposits for non - reimbursable reservations. All verifications must be submitted prior to the vacation formally being cancelled. b. Vacation Accrual All employees hired by the Town and represented by T.E.A. during the term of this agreement shall accrue vacation hours as follows: 0 to 36 months - 10 days per year (3.08 hours per pay period) 37 to 60 months - 16 days per year (4.92 hours per pay period) 61 to 120 months - 21 days per year (6.46 hours per pay period) 121 to 180 months - 23 days per year (7.08 hours per pay period) 181 months & over - 25 days per year (7.70 hours per pay period) Maximum accrual shall be 310 hours. If an employee has reached the maximum accrual level, no more vacation will be accrued until the accrual level is reduced below the maximum amount. All represented employees will be eligible to cash out 40 hours of vacation accruals twice each year in May and November. Money will be included in the first payroll check of June and December. Employees, at their option, may deposit vacation cash out money into deferred compensation to the extent allowed by applicable law. Employees, at their option, may convert accrued vacation leave (not annual leave) to sick leave on an hour for hour basis once per fiscal year. Employees must request this conversion in writing to the Finance Department which will have 30 business days to make the requested change. Irl C. Sick Leave Sick leave shall accumulate at the rate of eight (8) hours per month (3.70 hours per pay period); to a maximum of 1000 hours. The Town may require Association represented employees to provide a doctor's statement as proof of illness for any use of sick leave beyond one (1) working day. d. Sick Leave Cash -Out Program Employees who terminate employment with the Town for any reason other than retirement, or once a year in December, may cash out their accumulated sick leave as follows: 1 - 59 months at 25% 60 - 119 months at 37.5% 120 months or more at 50% In order to be eligible for the sick leave cash -out program, an employee must have a sick leave accrual balance of at least 150 hours at the time of termination or annual cash -out. Employees working less than full -time shall have the 150 hour balance pro- rated, based on hours worked. All employees who retire from the Town and concurrently retire under the Public Employee's Retirement System, may convert 100% of this accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an account. The employee's portion of medical payment will be withheld from their monthly retirement payment by P.E.R.S.. The Town agrees to pay the retiree quarterly in advance on the first pay period of January, April, July, and October of each year after retirement. The first payment will be prorated to the nearest quarter. The retiree's portion of medical payments will be paid from this account by the Town until all monies are depleted from the account or the retiree dies, whichever occurs first. This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retiree shall be responsible for 100% of their share of future medical insurance payments once the account is exhausted. The Town has elected to participate under the Public Employee' Medical and Hospital Care Act, and pursuant to that Act, the Town's contribution for each retired employee or survivor shall be increased annually as specified in Resolution 1991 -194. 17 e. Annual Leave Annual leave was created as a combination of sick leave and vacation benefits. A balance of forty (40) hours must be maintained to be used for sick leave. Except in the case of sickness, annual leave requires pre - approval of the Town. The annual leave program is no longer an option for Town employees hired after August 5, 1991. The following schedule shall apply to all employees accruing annual leave hours: (1) Accumulation per the following schedule: 0 to 36 months - 18 days per year (5.54 hours her pay period) 37 to 60 months - 24 days per year (7.38 hours per pay period) 61 to 180 months - 29 days per year (8.92 hours per pay period) 181+ months - 33 days per year (10.16 hours per pay period) (2) All represented employees will be eligible to cash out 40 hours of annual leave accruals each year in May and November. Money will be included in the first payroll of June and December. (3) Maximum accrual shall be 310 hours. f. Personal Leave Twenty -four (24) hours will be available per calendar year. Personal leave may not be accumulated from year -to -year nor is it subject to cash -out at any time. g. Medical /Maternity /Family Leave The Town recognizes that State Government Code 12945 requires the recognition of maternity as a bona fide non - job - related disability with applicable leave benefits. The Town also recognizes State Government Code 12945.2 and Federal Government Code 29 regarding Family & Medical Leave. The Town may, at its discretion, approve leave beyond the specific amount provided by the State law. h. Bereavement Leave A maximum of five (5) days is available for death of each member of the immediate family. Immediate family is defined as parent, spouse, child, dependent, sibling, and grandparent by blood or marriage. 119 i. Disaster Leave Leave will be available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect all or a portion of the area within twenty (20) miles of Town Hall. Leave is subject to scheduling by the Town. Employees shall be allowed to charge time off to accumulated overtime, vacation hours, sick leave hours or annual leave hours (in that order). j. Military Leave Military leave and benefits shall be granted in accordance with State and Federal law, including the continuation of employee salary and benefits. k. Jury Duty Employee salary and benefits are to be continued during periods of Court- assigned jury duty. Compensation for an employee subpoenaed testimony for Town related matters and participation in any legal matter required as a result of working for the Town will be reviewed on a case by case basis. I. Leave Without Pay Leave without pay shall be subject to approval of the Town Manager upon recommendation of the appropriate department head. An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to such benefits as vacation leaves, annual leaves, medical benefits, sick leaves, retirement credits for time employed or seniority entitlement of any kind) for the duration of such leave. An employee who is on leave without pay will have the ability to continue medical and dental coverage at their own expense in accordance with the Town's administrative policy on benefit retention. Vacation, sick leave, annual leave, or time worked shall not be used intermittently during an extended leave to interrupt a determination that an employee is on leave with no pay. In accordance with State Government Code 12945 and 12945.2 and Federal Government Code 29, Section 26.01, 26.54, no employee on maternity or family leave will be disadvantaged with respect to seniority entitlement. 19 M. Leave Balances Vacation, annual leave, and accumulated overtime will be paid off upon resignation, retirement, or dismissal at 100% value effective the last full work -day with the Town. This will terminate the employee's status as an employee of the Town. Sick leave shall be cashed out as per Section 15.d. In the event of an employee's death, these vacation, annual leave, and accumulated overtime leave balances shall be paid to the employee's estate. n. Catastrophic Time Bank If an employee, or an employee's spouse, significant other, or child becomes catastrophically ill or injured, the employee may request that a catastrophic time bank be established. The request shall be in writing and shall be directed to the Town Manager. The bank will enable other employees to donate accrued CTO, vacation, annual leave, or sick leave to the requesting employee. All donations must be made in writing on a form prescribed by the Town and shall be limited to no more than four (4) hours per donation, in one (1) hour increments. Donations to an established catastrophic time bank are final and shall not be returned to the donor. 16. GRIEVANCE PROCEDURE Grievances shall be defined as alleged violations of this agreement or disputes regarding interpretations, application, or enforcement of this agreement. No act or activity which may be grieveable may be considered for resolution unless a grievance is filed in accordance with the procedure contained herein within thirty (30) calendar days of the date the grieveable activity occurred or the date the employee could reasonably have known such activity occurred. The parties agree that all grievances will be processed in accordance with the following procedure: Step 1 Any employee who has a grievance shall first try to get it settled informally through discussion with his /her immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. If the employee is not satisfied with the informal resolution, then a formal grievance must be filed within thirty (30) calendar days of the date the grieveable activity occurred or the date the employee could reasonably have known such activity occurred. 20 Step 2 If, after such discussion the employee does not believe the grievance has been satisfactorily resolved, he /she may file a formal appeal in writing to his /her department head within ten (10) calendar days after receiving the informal decision of his /her immediate supervisor. The department head receiving the formal appeal shall enter his /her written decision within ten (10) calendar days after receiving the appeal. Step 3 If, after receipt of the written decision of the department head the employee is still dissatisfied, he /she may appeal the decision of the department head to the Town Manager. Such appeal shall be made by filing a written appeal to the Town Manager within fourteen (14) calendar days after receipt of the written decision of the department head. The Town Manager shall review the decision of the department head, and his /her decision within thirty (30) calendar days after the appeal is made. Step 4 If, after receipt of the written decision of the Town Manager the employee is still dissatisfied, he /she may appeal the decision of the Town Manager to the Personnel Board. Such appeal shall be made by filing a written appeal to the Chair of the Personnel Board within fourteen (14) calendar days after receipt of the written decision of the Town Manager. The Personnel Board shall establish a hearing date within 30 calendar days of receipt of the written appeal. The Personnel Board shall conduct a closed hearing giving opportunity for presentation by the employee or his /her representative and the Town Manager. The Personnel Board shall render a written decision within 30 calendar days after the appeal is made. If, after receipt of the written decision of the personnel board, the employee is still dissatisfied, he /she may appeal the decision of the Personnel Board to the Town Council. Such appeal shall be made by filing a written appeal with the Mayor. The Mayor shall schedule a closed hearing with The Town Council within 30 calendar days after receipt of the appeal. At this hearing, the employee and the Town Manager may make presentations. The Town Council decision shall be final. The Town Council shall render a decision within 30 calendar days after the hearing. An open hearing may be conducted by the Personnel Board or Town Council with mutual consent of the Town and person(s) filing the grievance. 21 The time limitations for filing and responding to grievances may be waived or extended by written mutual agreement of the parties. If either parry to the grievance so requests, an informal hearing shall be conducted at the department head or Town Manager appeal levels. Employees may be represented by counsel or other person at any stage in the grievance process. If the employee does not receive a response from the supervisor or department head within the time limits specified in steps 1 and 2 above, the grievance will proceed for review to the next level in the grievance procedure. 17. MISCELLANEOUS ISSUES a. Personnel Rules It is the Town's intent to make copies of the Personnel rules readily available. In this regard a copy of the rules will be kept on file with each Department Head, in employee lounges, in the Manager's office, the Clerk's office and the Library Reference Section. These copies will be updated periodically. b. Personnel Manual The Town shall include appropriate sections of this agreement in an Employee Personnel Manual. G. Mileage Reimbursement Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S. Private vehicles used for Town business shall comply with all applicable California Vehicle Code Sections commencing with Section 16430 through 16484 pertaining to "Insurance or Proof of ability to respond to Damages." d. Vehicle Acquisition T.E.A. recognizes the Town's sole right to determine the specifications of all Town vehicles. The Town will seek employees input when considering vehicle acquisition. e. Discipline The Town Manager and Town Attorney will develop Personnel Procedures including actions subject to discipline and will solicit comments from T.E.A. f. Library Card T.E.A. represented employees not living in Town may receive a non - resident library card at no cost. OX g. Benefit Application Employees working at least 3/4 time but less than full -time shall receive 75% of all applicable benefits set forth in this memorandum of understanding, in the same manner and under the same conditions as full -time employees. Employees working at least 1/2 time but less than 3/4 time shall receive 50% of all applicable benefits set forth in this memorandum of understanding, in the same manner and under the same conditions as full - time employees. 18. TRAINING PAY Communication Dispatchers assigned to train and evaluate newly hired Communication Dispatchers will receive a premium pay of 5% for the actual hours worked while providing authorized training. 19. TOWN VEHICLES Town vehicles are not to be taken home. 20. COMPLETE AGREEMENT The parties acknowledge that during the negotiations that resulted in this MOU, each had the unlimited right and opportunity to make proposals with regard to the terms and conditions of employment, and that the understandings and agreements contained in this MOU were arrived at after that full opportunity. This MOU may only be amended during its term by the parties' mutual agreement in writing unless compelled by State or Federal law. This MOU is intended to encompass all matters subject to meeting and conferring between the Town and the Association, and it supersedes and replaces any and all past practices, whether directly referred to or otherwise addressed in any way in this MOU. FOR THE TOWN OF LOS GATOS: FOR T.E.A.: JAMES W. PIPER Assistant Town Manager GARY W.ROGERS Personnel Manager LEE BOWMAN Planning Director KEVIN FLAVIA T.E.A. President DEBRA CALDWELL Police Records Specialist DELORES WIENS Administrative Secretary 23 JUDY COUGHLIN Library Assistant WILLIAM MC POIL Employee Representation Services Inc. 24 APPENDIX A Scope of Representation and Salary Range Job Title Range Account Clerk 1065 Account Technician (Hired after 7/1197) 1114 Administrative Analyst 1212 Administrative Secretary 1116 Assistant Civil Engineer /Assistant Engineer 1242 Assistant Plan Check Engineer 1242 Assistant Planner 1212 Associate Civil Engineer 1300 Associate Librarian 1155 Associate Planner 1300 Senior Building Inspector 1300 Building Inspector 1242 Chief Inspector 1252 Circulation Supervisor 1175 Code Compliance Officer 1164 Communications Dispatcher 1191 Community Service Officer 1164 Community Services Program Analyst 1212 Counter Technician 1147 Crime Analyst 1230 Engineering Inspector 1195 Engineering Technician 1175 Junior Civil Engineer 1212 Librarian 1199 Library Assistant 1088 Library Clerk 1065 Park Services Officer 1152 Parking Control Officer 1065 Plan Check Technician 1195 Plan Check Engineer 1300 Planning Technician 1164 Planner 1242 Police Records Specialist 1106 Secretary 1065 Secretary II 1079 Secretary III 1097 Senior Engineering Technician 1227 25 APPENDIX B -1 TOWN OF LOS GATOS HOURLY SALARY SCHEDULE (Effective June 28, 1998) Town Employee's Association RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 1065 $ 13.42 $ 14.09 $ 14.80 $ 15.53 $ 16.32 $ 17.13 1079 $ 13.97 $ 14.66 $ 15.40 $ 16.16 $ 16.97 $ 17.81 1088 $ 14.31 $ 15.02 $ 15.77 $ 16.55 $ 17.39 $ 18.25 1097 $ 14.66 $ 15.40 $ 16.16 $ 16.97 $ 17.81 $ 18.69 1106 $ 15.01 $ 15.76 $ 16.54 $ 17.38 $ 18.24 $ 19.16 1114 $ 15.36 $ 16.13 $ 16.93 $ 17.78 $ 18.66 $ 19.60 1116 $ 15.40 $ 16.16 $ 16.97 $ 17.81 $ 18.69 $ 19.63 1147 $ 16.61 $ 17.44 $ 18.31 $ 19.23 $ 20.19 $ 21.21 1152 $ 16.81 $ 17.65 $ 18.54 $ 19.47 $ 20.44 $ 21.45 1155 $ 16.96 $ 17.81 $ 18.70 $ 19.65 $ 20.63 $ 21.66 1164 $ 17.28 $ 18.15 $ 19.06 $ 20.00 $ 21.00 $ 22.05 1168 $ 17.39 $ 18.25 $ 19.17 $ 20.13 $ 21.14 $ 22.20 1175 $ 17.72 $ 18.60 $ 19.53 $ 20.51 $ 21.54 $ 22.61 1191 $ 18.38 $ 19.29 $ 20.26 $ 21.27 $ 22.33 $ 23.45 1195 $ 18.60 $ 19.53 $ 20.51 $ 21.54 $ 22.61 $ 23.74 1199 $ 18.79 $ 19.72 $ 20.70 $ 21.73 $ 22.82 $ 23.97 1210 $ 19.43 $ 20.39 $ 21.41 $ 22.48 $ 23.61 $ 24.79 1212 $ 19.48 $ 20.45 $ 21.47 $ 22.55 $ 23.68 $ 24.86 1227 $ 20.24 $ 21.26 $ 22.32 $ 23.44 $ 24.62 $ 25.84 1230 $ 19.70 $ 20.69 $ 21.72 $ 22.80 $ 23.95 $ 25.14 1242 $ 21.01 $ 22.06 $ 23.16 $ 24.33 $ 25.54 $ 26.82 1252 $ 21.54 $ 22.61 $ 23.74 $ 24.93 $ 26.17 $ 27.48 1300 $ 24.19 $ 25.40 $ 26.68 $ 28.01 $ 29.41 $ 30.87 Incentive pay (e.g. bilingual pay) is equal to 2.5% above the regular compensation. Lead pay is equal to 5.0% above the regular compensation. APPENDIX C EXCEPTIONAL PERFORMANCE BONUS Revised July 1, 1994 PURPOSE Recognize outstanding performance of employees who have reached the top step of their classification. EFFECTIVE Available to all permanent Town employees represented in Appendix A. This program started in July of 1983 and was updated in July of 1994. Employees will be able to receive the Exceptional Performance Bonus one year after reaching the top step of step of his /her range. Eligibility will continue every 12 months if employee remains at top step. APPLICATION Awards based on evaluation of performance objectives. The objective is for the employee and his /her supervisor to agree to a joint commitment of objectives for the coming year. Performance factors for all employees include: 1. Employee Accomplishments 2. Development Plan 3. Job Knowledge 4. Public Contact and Service Skills 5. Quality of Work 6. Quantity of Work 7. Communications 8. Teamwork M APPENDIX B -2 TOWN OF LOS GATOS HOURLY SALARY SCHEDULE (Effective June 27, 1999) Town Employee's Association RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 1065 $ 13.82 $ 14.51 $ 15.25 $ 16.00 $ 16.80 $ 17.64 1079 $ 14.39 $ 15.10 $ 15.86 $ 16.65 $ 17.48 $ 18.34 1088 $ 14.74 $ 15.47 $ 16.24 $ 17.05 $ 17.91 $ 18.80 1097 $ 15.10 $ 15.86 $ 16.65 $ 17.48 $ 18.34 $ 19.26 1106 $ 15.46 $ 16.23 $ 17.04 $ 17.90 $ 18.79 $ 19.73 1114 $ 15.82 $ 16.61 $ 17.44 $ 18.31 $ 19.22 $ 20.19 1116 $ 15.86 $ 16.65 $ 17.48 $ 18.34 $ 19.26 $ 20.22 1147 $ 17.11 $ 17.96 $ 18.86 $ 19.81 $ 20.79 $ 21.84 1152 $ 17.31 $ 18.18 $ 19.10 $ 20.05 $ 21.05 $ 22.10 1155 $ 17.47 $ 18.34 $ 19.27 $ 20.24 $ 21.25 $ 22.31 1164 $ 17.80 $ 18.69 $ 19.63 $ 20.60 $ 21.63 $ 22.71 1168 $ 17.91 $ 18.80 $ 19.74 $ 20.73 $ 21.77 $ 22.86 1175 $ 18.25 $ 19.16 $ 20.11 $ 21.12 $ 22.18 $ 23.29 1191 $ 18.93 $ 19.87 $ 20.87 $ 21.91 $ 23.00 $ 24.16 1195 $ 19.16 $ 20.11 $ 21.12 $ 22.18 $ 23.29 $ 24.45 1199 $ 19.35 $ 20.32 $ 21.32 $ 22.38 $ 23.51 $ 24.69 1210 $ 20.01 $ 21.01 $ 22.06 $ 23.16 $ 24.32 $ 25.54 1212 $ 20.06 $ 21.06 $ 22.11 $ 23.22 $ 24.39 $ 25.61 1227 $ 20.85 $ 21.90 $ 22.99 $ 24.15 $ 25.36 $ 26.62 1230 $ 20.30 $ 21.31 $ 22.37 $ 23.49 $ 24.67 $ 25.90 1242 $ 21.64 $ 22.72 $ 23.86 $ 25.06 $ 26.31 $ 27.63 1252 $ 22.18 $ 23.29 $ 24.45 $ 25.67 $ 26.96 $ 28.30 1300 $ 24.92 $ 26.16 $ 27.48 $ 28.85 $ 30.29 $ 31.80 Incentive pay (e.g. bilingual pay) is equal to 2.5% above the regular compensation. Lead pay is equal to 5.0% above the regular compensation. 9. Meeting Work Commitment 10. Flexibility and Adaptability' 11. Initiative 12. Analyzing Situations. 13. Organizing, Coordinating, Supervising 14. Administering Work Programs 15. Special Projects Employees at the top step who achieve 75% or more of their goals and have no "Needs improvement" in the 12 (3 -14) evaluation categories are eligible for a bonus up to $1,100 equivalent to the percentage of goals achieved. For employees whose employment status is one -half time or three - quarter time, the amount of bonus will be pro -rated proportionally. All evaluations are subject to the review and approval of the Town Personnel Officer. 9 APPENDIX D PAY AND CLASSIFICATION SYSTEM Consideration for advancement from step to step within a range shall occur at intervals of one (1) year in length effective on each anniversary date. Each employee shall receive an annual performance evaluation. This evaluation will be the basis for step advancement. Such advancement to the next step shall only be authorized if the supervisor and Department manager finds that the employee is satisfactorily performing the duties of their position as reflected on the annual evaluation form. If the employee's performance is not satisfactory as determined by the supervisor's annual evaluation, the Department Manager shall deny advancement to the next step. The Department Manager has the option, at their discretion, based on a recommendation by the supervisor, to recognize improving performance by granting or denying a half -step increase in lieu of denying the advancement to the next step for unsatisfactory performance. If the employee's performance is exceptional as determined by the annual evaluation of the supervisor on the performance evaluation form, the Department Manager with the approval of the Town Manager has the discretion to grant a two step or one and one -half step increase. It is intended that this be used sparingly so that it can be reserved to recognize the truly exceptional employee who is achieving journey level status in their classification (i.e. fully capable of performing all duties of the position) and can perform at the same level as an employee with the years of experience required to achieve advancement to the new step if they had advanced one step each year. 30