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97-143 RESOLUTION NO. 97R- 14 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A MEMORANDUM OF UNDERSTANDING ESTABLISHING TERMS AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN CLASSIFICATIONS ASSIGNED TO THE SERVICE EMPLOYEES UNIT REPRESENTED BY THE SERVICE EMPLOYEES' INTERNATIONAL UNION. LOCAL 1877 WHEREAS, Chapter 1.06 of the Anaheim Municipal Code establishes the employer- employee relations system for the City; and WHEREAS, Section 1.06.100 of Chapter 1.06 requires a Memorandum of Understanding to be presented to the City Council for determination; and • WHEREAS, the City Council of the City of Anaheim finds that approval of a new Memorandum of Understanding executed on July 23, 1997 between the Service Employees' International Union, Local 1877 and the City of Anaheim is in the best interest of the City of Anaheim. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the Memorandum of Understanding between the Service Employees' International Union, Local 1877 and the City of Anaheim executed by the City Management Representative and the Service Employees' International Union, Local 1877 on July 23, 1997. as set forth in the document attached hereto and incorporated by reference herein, be and the same is hereby, approved and that the effective date of such Memorandum of Understanding shall be February 14, 1997. BE IT FURTHER RESOLVED that Resolution No. 96R-76 is hereby repealed effective February 13, 1997. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 22nd day of July. 1997. MAYOR OF THE CITY OF - AHEIM ATTEST::: ) agar CITY CLERK OF THE CITY OF ANAHEIM APPROVED ASO bR ' ---- 01116,0,J4 del )/CITY ATTORNEY OF THE CITY ANAHEIM F:\DEPT\HRD\STAFFREP\SF2193BR STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 97R-143 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 22nd day of July, 1997, by the following vote of the members thereof: AYES: MAYOR/COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez, Daly NOES: MAYOR/COUNCIL MEMBERS: None ABSENT: MAYOR/COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 97R-143 on the 22nd day of July, 1997. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 22nd day of July, 1997. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 97R-143 was duly passed and adopted by the City Council of the City of Anaheim on July 22, 1997. zir CITY CLERK OF THE CITY OF ANAHEIM MEMORANDUM OF UNDERSTANDING between the SERVICE EMPLOYEES' INTERNATIONAL UNION, LOCAL 1877 and the CITY OF ANAHEIM February 14, 1997 - July 13, 2000 TABLE OF CONTENTS PAGE ARTICLE 1 PREAMBLE 2 ARTICLE 2 UNION RECOGNITION 2 ARTICLE 3 DISCUSSION 3 ARTICLE 4 AGENCY SHOP 3 ARTICLE 5 HIRING & EMPLOYMENT OF EMPLOYEES WORKING 3 DURING SPORTS AND OTHER EVENTS OCCURRING AT THE ANAHEIM STADIUM PARKING LOT AND AT THE CONVENTION CENTER ARTICLE 6 CHECK-OFF 5 ARTICLE 7 ADMINISTRATION 5 ARTICLE 8 CLASSIFICATIONS, WAGES AND HOURS 6 ARTICLE 9 WORKING CONDITIONS 6 ARTICLE 10 HEALTH AND WELFARE 7 ARTICLE 11 GRIEVANCE PROCEDURE 7 ARTICLE 12 PREVAILING RATES FOR SUBCONTRACTORS 8 ARTICLE 13 NO STRIKE 8 ARTICLE 14 EMPLOYEE-EMPLOYER COMMITTEE 8 ARTICLE 15 WORK ASSIGNMENT 8 ARTICLE 16 MILITARY LEAVE 9 ARTICLE 17 VACATION BENEFIT 9 ARTICLE 18 SAVINGS CLAUSE 9 ARTICLE 19 DURATION 10 APPENDIX "A" CONVENTION CENTER & STADIUM PARKING LOT 11 APPENDIX "B" HEALTH & WELFARE 13 APPENDIX "C" DEFINED CONTRIBUTION RETIREMENT PLAN 14 ARTICLE 1 PREAMBLE 1.1 The wages, hours and conditions of employment that are set forth in this Memorandum have been discussed and jointly proposed by and between the staff officials of the City of Anaheim (hereinafter called "ANAHEIM") and the Service Employees' International Union, Local 1877 (hereinafter called "UNION") affiliated with the Service Employees' International Union, AFL-CIO, and shall apply to all the employees of ANAHEIM working in the classifications set forth in Appendix "A". at the sporting and all other events at the Anaheim Stadium Parking Lot and the Anaheim Convention Center at Anaheim, California. 1.2 The terms and conditions of employment that are set forth in this Memorandum have been discussed in good faith between the staff officials of ANAHEIM and the UNION and the staff officials of ANAHEIM agree to recommend to the Anaheim City Council that all of the terms and conditions of employment as set forth herein be incorporated in full in a resolution of the City Council. Upon the adoption of such a resolution, all the terms and conditions of this Memorandum shall become effective without any further action by either party. ARTICLE 2 UNION RECOGNITION 2.1 ANAHEIM hereby recognizes the UNION as the collective bargaining representative for all its members and the collective bargaining agency concerning the wages, hours and working conditions of employees working at the Anaheim Stadium Parking Lot and at the Convention Center in the classifications that are set forth in Appendix "A", to the fullest extent allowable under California law applying to public employees. As public employees, such employees covered herein shall have the right to discuss individual problems of employment with ANAHEIM, provided that upon request of the employee, the UNION shall be kept fully informed and have the right to be present at all such meetings between ANAHEIM and the individual. In the event any grievance with an employee involves the interpretation of the MEMORANDUM, ANAHEIM agrees to inform the UNION and the UNION shall have the right to be present and participate in any meetings or resolution of such a grievance. 2 ARTICLE 3 DISCUSSION 3.1 It is the intent of both parties to maintain an open line of communication for the betterment of employer-employee relations. Any issue not pertaining to grievances or grievable issues may be discussed by the UNION or ANAHEIM at either parties request. 3.2 Within 90 days of the execution of this agreement the issue of WORK ASSIGNMENTS shall be discussed. Such discussions shall continue as long as City and UNION concur they are productive. 3.3 If the discussion process results in an agreement between the City Management Representative and UNION to amend this Memorandum of Understanding, such agreement shall be incorporated in a written letter of understanding, signed by the City Management Representative and UNION representatives. The matters incorporated in the Letter of Understanding shall be presented to the City Council, or its statutory representative, for determination. 3.4 For issue(s) not specifically identified in ARTICLE 3.2 above, if the parties are not able to resolve the issue after three meetings, the issue will be considered dropped, unless both parties agree to meet additional times. ARTICLE 4 AGENCY SHOP 4.1 CITY and UNION agree SEIU employees shall be permitted to vote, once during the term of the agreement, on whether or not to reinstate agency shop. ARTICLE 5 HIRING AND EMPLOYMENT OF EMPLOYEES WORKING DURING SPORTS AND OTHER EVENTS AT THE ANAHEIM STADIUM PARKING LOT AND AT THE CONVENTION CENTER 5.1 Job Bulletins regarding classifications represented by the UNION shall be sent to the UNION during recruitment periods. 5.2 ANAHEIM shall be the sole judge of the testing, qualification and acceptance procedures of all applicants for employment and promotion and ANAHEIM retains the right to reject any applicant for employment; PROVIDED, HOWEVER, that no test or qualification procedures utilized by ANAHEIM or refusal to accept for employment shall be done to discriminate for or against an applicant because of union or non-union membership or because of race, color, creed, national origin, religious or political affiliation or belief, sex, age, or physical disability, except where age or lack of physical disability is a bona fide occupational qualification. 3 5.3 During the calendar year all employees in the classifications listed in Appendix "A" shall designate the jobs they wish to be considered for as openings occur as follows. • Anaheim Convention Center (Maintenance) - Bulletin Board posting. • Anaheim Convention Center (Crowd Control) - Bulletin Board posting. Placement in these jobs shall be in accordance with Article 15. 5.4 ANAHEIM agrees to furnish the UNION upon request a list of all persons hired for events at the Stadium Parking Lot and the Convention Center. 5.5 Employees hired in classifications listed in Appendix "A" of this agreement shall be subject to a period of probation consisting of fifty (50) event days worked or six (6) months, whichever occurs later. 5.6 The work and conduct of a probationary employee shall be subject to close scrutiny and evaluation and if found to be below standards satisfactory to the Convention Center Department, the probationer may be rejected at any time during the probationary period. Such rejections shall not be subject to review or appeal. 5.7 ANAHEIM has determined that the size and operation of the Convention Center has developed to the point that there is a need to set forth criteria for defining groups of employees engaged in limited employment who are covered by the Memorandum of Understanding between the parties. Accordingly, the following categories are hereby established. 5.71 Categories 5.711 Part-Time Employees: This category is limited to employees hired to work an average of less than twenty (20) hours per week on an ongoing basis (maximum hours permitted by California Public Employees' Retirement Law for exclusion from Public Employees' Retirement System membership 999 hours during FY 95/96) in any fiscal year. 5.712 Part-Time - 30 Hour Employees: This category is limited to those employees who on a yearly average work more than the maximum hours permitted by California Public Employees' Retirement Law for exclusion from Public Employees' Retirement System membership but less than thirty (30) hours per week on an ongoing basis (maximum 1560 hours) in any fiscal year. 5.72 The number of positions in each category shall vary in accordance with ANAHEIM'S requirements and shall be established by ANAHEIM. 4 5.73 Assignment of personnel to these positions and between these positions shall be made by ANAHEIM in accordance with Article 15.12 of the Memorandum of Understanding. 5.74 Employees working in limited employment categories set forth in Article 5.711 are not entitled to any of ANAHEIM'S benefit plans except as set forth in Article 17, Appendix B, and Appendix C of the Memorandum of Understanding provided, however, that employees assigned to Article 5.712 shall be enrolled in the Public Employees Retirement System covering Miscellaneous employees of Anaheim. 5.75 Employees hired or assigned to positions defined in Article 5.712 shall pay 3.75% of the statutorily required 7% employee contribution to the retirement system. Such contributions shall be designated as "employer pick up" contributions under the provisions of Section 414 (h)(2) of the Internal Revenue Code. ARTICLE 6 CHECK-OFF 6.1 ANAHEIM agrees to a check-off for the payment of the regular monthly UNION dues and the regular UNION initiation fee or service charges, and to deduct such payments for the wages of all UNION members and employees when authorized to do so by said members and employees, and remit such payments to the UNION in accordance with the terms of signed authorizations of such members and employees. The deduction of such dues and initiation fees or service charges by ANAHEIM, the remittal of same by ANAHEIM to the UNION, shall constitute payment of said dues and initiation fees or service charges by such members and employees of the UNION. 6.2 When employee orientations and/or ANAHEIM Way orientations are held for employees, the UNION shall be notified one (1) week in advance and shall be permitted to make a presentation on Union representation prior to the scheduled starting time and/or following the conclusion of the orientation meeting. ARTICLE 7 ADMINISTRATION 7.1 UNION representatives shall be permitted to visit the operations covered herein for the purpose of observing conditions under which employees are working, provided such visit shall not interrupt the work of such employees. 7.2 ANAHEIM recognizes the employees' and the UNION'S right to elect or appoint shop stewards. The UNION agrees to notify ANAHEIM, in writing, as to such shop steward's identity and of subsequent elections or appointments, if any. The parties 5 agree that employees elected or appointed as shop stewards for and by the UNION shall, nevertheless, be required to and shall work full-time in their respective classifications. It is further agreed that employees appointed shop stewards by the UNION shall not be discriminated against in work assignments because of such appointment. 7.3 ANAHEIM shall furnish bulletin board space at each facility at a mutually agreeable, specific location for the purpose of posting notices pertaining to UNION business. 7.4 ANAHEIM shall annually, on or before May 1st, furnish the UNION a list of all employees in classifications listed in Appendix "A", including date of hire. ARTICLE 8 CLASSIFICATIONS, WAGES AND HOURS 8.1 Wages and hours of work for the various classifications shall be as set forth in Appendix "A", attached to this Memorandum and by this reference made a part hereof. ARTICLE 9 WORKING CONDITIONS 9.1 ANAHEIM agrees to furnish and maintain uniforms for its employees in classifications listed in Appendix "A" except Sweeper and Cleaner Set-Up Worker without cost to the employees. The shirts shall not be considered part of the uniform and, if they are furnished, shall be solely at the discretion and convenience of ANAHEIM. 9.2 ANAHEIM shall maintain suitable dressing and break quarters for the use of the employees covered herein. A committee shall be formed with representatives of both ANAHEIM and the UNION to resolve the smoking/no smoking issue. 9.3 Management of the Convention Center shall to the extent possible, pre-determine the number of parking spaces needed to take care of the public attending events at their facilities. To the extent there are spaces available to permit employee parking, spaces shall be made available to employees at no charge. Anaheim agrees to make reasonable effort to identify additional employee parking. 9.4 Adequate restroom and locker room facilities shall be provided for all employees. 9.5 ANAHEIM shall provide flashlights to employees when ANAHEIM determines flashlights are required in the performance of the employees' work. 9.6 Upon request, the City of Anaheim shall provide rain gear to employees who are required to work outdoors during inclement weather. 6 ARTICLE 10 HEALTH AND WELFARE 10.1 Employees working in classifications listed in Appendix "B" shall be provided Health and Welfare benefits in accordance with the provisions of Appendix "B" attached hereto. ARTICLE 11 GRIEVANCE PROCEDURE 11.1 Any grievance or dispute which may arise out of the application or interpretation of the terms or conditions of this Memorandum shall be settled in accordance with the procedure set forth immediately hereinbelow except a dispute by an applicant regarding employment. In the event the grievance or dispute requires an expeditious resolution based on a pending event at either the Anaheim Stadium Parking Lot or Convention Center, the UNION, by written notice to ANAHEIM, may request an immediate meeting with representatives of ANAHEIM and upon receiving such written notice, representatives of ANAHEIM shall be available to meet with representatives of the UNION within forty-eight (48) hours after receipt of the written notice. 11.2 Any grievance or dispute as defined under Article 11.1 hereinabove shall be reduced to written form by the charging party and be presented to the other party's authorized representative within thirty (30) calendar days of the date of the alleged occurrence or dispute. Thereafter, a representative of ANAHEIM, selected by the latter, shall meet within fifteen (15) calendar days of the receipt of the written grievance with an authorized agent of the UNION, selected by the UNION, in an attempt to resolve the dispute. 11.21 In the event that the parties cannot resolve the dispute to the charging party's satisfaction, the dispute shall, upon the request of either party be referred within thirty (30) calendar days to an impartial arbitrator for a final and binding decision. In the event the parties are unable to agree upon the selection of such impartial arbitrator within ten (10) calendar days, upon request of either party an arbitrator shall be selected from a list of prospective arbitrators submitted by the American Arbitration Association. 11.3 An arbitrator's decision shall be final and binding on both parties, it being agreed that said arbitrator shall have no powers to add to or subtract from the provisions herein, and that the laws of the State of California shall be controlling at all times. 11.4 All expenses of any arbitration shall be borne equally by ANAHEIM and the UNION. 11.5 The parties may mutually agree to submit any grievance or dispute covered under the provisions of this Article to non-binding mediation, prior to submission to arbitration. 7 ARTICLE 12 PREVAILING RATES FOR SUBCONTRACTORS 12.1 In the event ANAHEIM decides to contract out to a private employer any of the work of the classifications herein covered for public events, it is agreed that such contracting of said work shall be made by ANAHEIM only to contractors or employers whose employees are paid the prevailing rates of pay and all other applicable benefits which are provided for in the Memorandum for employees in the specified classifications. This Article shall remain in effect through midnight February 13, 1997 for employees in the specified classifications in Appendix "A" Convention Center and Stadium Parking Lot. ARTICLE 13 NO STRIKE 13.1 The UNION agrees that under the terms of this Memorandum, the UNION and/or its members shall not conduct any strikes, slowdowns or other work stoppages against ANAHEIM during the term of this Memorandum. ARTICLE 14 EMPLOYEE-EMPLOYER COMMITTEE 14.1 A committee shall be formed to discuss employee-employer problems. The committee shall consist of one UNION representative, one employee from each department, one management employee, and one Labor Relations representative and shall meet quarterly, or more often as necessary. The UNION may have present at such meetings other off-duty employees who can contribute to the discussion taking place. ARTICLE 15 WORK ASSIGNMENT 15.1 In the interest of maintaining an efficient system of operations at the Anaheim Stadium Parking Lot and the Convention Center and to facilitate the assignment of part-time employees in classifications listed in Appendix "A" to the various events, ANAHEIM and the UNION agree that appropriate consideration shall be given to the following: 15.11 Work opportunities required to maintain an adequate, interested, trained, available part-time work force. 8 15.12 Employee's record of performance, availability, and seniority (Convention Center Department date of hire) in that order. 15.121 Notwithstanding the above, assignments of employees shall not be made in a capricious or arbitrary manner. 15.13 Employees may be temporarily assigned to work in the management classifications of Convention Center Head Usher, Assistant Box Office Treasurer and Box Office Treasurer. Management employees may be temporarily assigned to work in unit classifications in accordance with Article 15. ARTICLE 16 MILITARY LEAVE 16.1 Military Leave and compensation therefore shall be in accordance with the provisions of the Military and Veterans Code of the State of California. ARTICLE 17 VACATION BENEFIT 17.1 Employees working in classifications listed in Appendix "A" who work eight hundred (800) or more hours in any calendar year shall be paid three percent (3%) of their gross earnings as vacation benefits upon separation or during the first pay period of the next calendar year. The calendar year shall be defined as the period for which wages earned are reported for tax purposes. ARTICLE 18 SAVINGS CLAUSE 18.1 The resolution of ANAHEIM shall provide that if any provisions of this Memorandum or the Resolution is at any time, or in any way, held to be contrary to any law by a court of proper jurisdiction, the remainder of this Memorandum and the remainder of the Resolution shall not be affected thereby, and shall remain in full force and effect. 9 ARTICLE 19 DURATION 19.1 The terms of this Memorandum are to remain in full force and effect until the 13th day of February 1997, except that either ANAHEIM or the UNION shall have the right during the sixty (60) days preceding February 13, 1997, to give written notice to the other of its desire to meet and confer with respect to the terms and conditions of this Memorandum. If new terms and conditions cannot be agreed upon by February 13,1997, this Memorandum shall become null and void. Upon adoption of a Resolution approving this Memorandum and the terms hereof by the City Council of the City of Anaheim, this Memorandum shall be in full force and effect. STAFF OFFICIALS of the CITY of SERVICE EMPLOYEES' INTERNATIONAL ANAHEIM, a Municipal Corporation UNION, LOCAL 1877 (� "",. By: ,6 mo`'`t' ^ BY: V\ -q-�`-tyl � V By: By: By: By: By: By: By: By: By: By: Dated: 8.41, 17, /997 Dated: / 7) 877 l0 APPENDIX "A" Convention Center & Stadium Parking Lot HOURLY PAY RATES CLASSIFICATION 05/10/96 2/14/97 7/17/98 7/16/99 Cleaner $8.09 $8.29 $8.44 $8.59 Cleaner Set-up Worker $8.09 $8.29 $8.44 $8.59 Gate Captain $8.49 $8.69 $8.84 $8.99 Janitor $8.25 $8.45 $8.60 $8.75 Lead Nurse $14.21 $14.41 $14.56 $14.71 Money Room Attendant - (5 hr min) $10.67 $10.87 $11.02 $11.17 Nurse $13.43 $13.63 $13.78 $13.93 Tenant Security Director $8.12 $8.32 $8.47 $8.62 Ticket Clerk $8.33 $8.53 $8.68 $8.83 Ticket Seller (GA) $8.87 $9.07 $9.22 $9.37 Ticket Seller (Res & Box) $9.19 $9.39 $9.54 $9.69 Ticket Seller Advanced $9.78 $9.98 $10.13 $10.28 Ticket Taker $8.20 $8.40 $8.55 $8.70 Usher $7.64 $7.84 $7.99 $8.14 Usher Captain $8.68 $8.88 $9.03 $9.18 Incumbent employees employed on February 2, 1996 as Cleaner Set-up Worker (30 hour) - Convention Center shall have received an additional 201 per hour upon appointment to 30 hour status and an additional 201 per hour on each anniversary of the appointment to 30 hour status until such additional wages are $1.00 above the Cleaner Set-Up Worker rate listed in Appendix "A" above. This is a closed group of employees receiving additional wages and no employees employed after February 2, 1996 will be eligible to receive additional wages. For the period May 10, 1996 through February 13, 1997, ANAHEIM shall adjust the employee's Public Employees Retirement System (P.E.R.S.) contribution so that the employee's Net Hourly Rate is not reduced as the result of the conversion from employer paid to employee paid P.E.R.S. contributions. For the purpose of this paragraph, "Net Hourly Rate" is defined as the employee's hourly rate of pay including the differential agreed to in this paragraph less Federally required FICA contributions and employee P.E.R.S. contributions. 11 1. All classifications listed on an hourly basis shall be paid such rate for hours worked with a four hour guaranteed minimum per event except as noted above. Said work period is not restricted to any specific hours, but shall be required by ANAHEIM for each event. Any pay for more than the minimum shall be compensated in fifteen (15) minute increments. 2. Personnel newly hired into any classification in Appendix "A" shall be paid an entry level rate amounting to 500 per hour less than the rates set forth in the Appendix. This reduced rate shall continue during the first 400 hours of employment. Thereafter, the rate payable shall be that rate set forth in Appendix "A". Newly hired personnel shall be defined as those individuals who have had no hours of work in the classifications outlined in Appendix "A" for a period of nine months. 3. On New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, employees working in the above classifications shall receive pay at a rate of one and one-half times the rate specified above. 4. In case of cancellation of event, and if ANAHEIM does not give reasonable notice, either personally or through public communications, ANAHEIM shall pay to Crowd Control employees as follows: two (2) hours pay if the employee reports for work; and four (4) hours pay if the gates are open. 5. For the events where the four hour minimum rates are applicable for Crowd Control employees, they shall be paid for such four hour minimum rate for each separate event which they work in any day. 6. The classification and rates of "Janitor" above shall apply only to incumbent employees employed on February 2, 1996. This is a closed classification and no employees employed after February 2, 1996 will be hired in this classification. 7. If lead workers are used by ANAHEIM in any of the above hourly classifications, they shall receive an additional 60g. 8. Employees working in classifications listed in Appendix "A" shall be paid at a rate of one and one-half times their regular hourly rate for all hours in excess of eight (8) for a single event or forty (40) in any one work week. 9. Employees assigned as Fire Door Attendants shall be paid the Usher rate of pay. 10. Employees assigned to protect exhibitors' property shall receive the Tenant Security Director rate of pay. 11. At such times as Anaheim determines that it is in the best interest of the City to assign supervisory responsibility over lead workers receiving the additional 600 per hour as provided in the Memorandum of Understanding, ANAHEIM and the UNION agree that such supervisory employees shall receive 600 per hour more than the lead workers supervised. 12. In the event an employee is called in for meetings and/or training, the guarantee shall be two (2) hours. 12 APPENDIX "B" HEALTH AND WELFARE The City agrees to pay a monthly premium not to exceed 88% of monthly premium, to maintain coverage in the single party Kaiser "Q" Plan for eligible employees. All additional premium shall be the responsibility of the eligible employee. Employees with part-time 30 hour status shall be provided health and welfare benefits as long as they remain employed and are available to work up to 1560 hours per year, and are working in the following classifications: Cleaner Cleaner Set-Up Worker Janitor Sweeper Ticket Clerk Ticket Seller Advanced Lead Nurse Employees become eligible for coverage on the first day of the month following one complete calendar month upon appointment to an eligible classification listed above. 13 APPENDIX "C" DEFINED CONTRIBUTION RETIREMENT PLAN ANAHEIM and the UNION agree that Anaheim shall adopt a 457 plan as the vehicle for a permitted defined contribution retirement plan for eligible employees in the Convention Center Unit of Representation. ANAHEIM and the UNION agree that mandatory participation is required by all employees in Article 4.711 Part-Time Employees (Article 4 of the Memorandum of Understanding between ANAHEIM and the UNION). ANAHEIM and the UNION agree that employees in Article 4.712 Part-Time thirty (30) hour Employees (Article 3 of the Memorandum of Understanding between ANAHEIM and the UNION) are not eligible to participate in the mandatory 457 program. ANAHEIM and the UNION agree that the employer contribution to the plan will be 3.75% of bi- weekly gross pay. ANAHEIM and the UNION agree that the employee contribution to the plan will be 3.75% of bi- weekly gross pay. Effective the first pay period after City Council approval of a new Memorandum, ANAHEIM and the UNION agree that the employer contribution to the plan will cease and the employee contribution to the plan will be 7.5% of bi-weekly gross pay. ANAHEIM and the UNION agree that Anaheim shall select a single financial institution as the depository for the Convention Center Part-Time Employees Retirement Account, and that all (employee and employer) contributions to this mandatory program will be separately accounted for. ANAHEIM and the UNION agree that employee and employer contributions will begin on June 28, 1991 and continue during the life of this Appendix "C" agreement. ANAHEIM and the UNION agree that employees will be fully vested in the benefit (both employee and employer contributions) at the time of initial contributions. ANAHEIM agrees that, Anaheim will develop and adopt such amendments to the 457 plan, necessary to ensure compliance with Internal Revenue Service regulations and rulings at such time as they are issued. Either ANAHEIM or the UNION may, at it sole discretion, terminate this Appendix "C" agreement upon 90 days notice to the other party. If being understood that termination of this agreement would result in the implementation of Social Security payments by the employee and the employer as required by Section 3121(b)(7)(F) of the Internal Revenue Code. 14