MEMORANDUM OF UNDERSTANDING BETWEEN …

1 MEMORANDUMOFUNDERSTANDINGBETWEENTHECITYO FBEVERLYHILLSANDTHEBEVERLYHILLSMANAGEMEN TANDPROFESSIONALEMPLOYEESASSOCIATIONO ctober1,2015-September30, ,PROMOTION, (non-CafeteriaPlanbenefits) , , (ARMP) ClassicMember NewMembers AsDefinedBythePublicEmployees PensionReformActof2013(PEPRA) ,(hereinafterreferredtoas M&PAssociation )aformallyrecognizedemployeeorganization ,representingallofitsmemberswithintheMan agementandProfessionalUnit(hereinafterre ferredtoas Employees ),anddulyauthorizedrepresentativesoftheM anagementoftheCityofBeverlyHills(hereina fterreferredtoas theCity )havemetandconferredingoodfaith,fullyexc hanginginformation,opinionsandproposals, andhavereachedthefollowingagreement(here inafterreferredtoas MOU or agreement ) A.

2 Now,therefore, , ,policiesorproceduresthatareinforceandef fectwhichaffectwages, ,itisagreedthatsuchpractices,policiesand proceduresshallremaininfullforceandeffec tduringtheentiretermofthisagreement,unle sstheyareinconsistentwiththeprovisionsof thisMOU, :Unlessotherwisespecifiedherein,thisMOUs hallbeeffectiveOctober1,2015andshallexpi reonSeptember30, : Day :Theword day inthisagreementreferstocalendardaysunles sspecificallydesignatedasworkingdays. AppointingAuthority :referstoeachemployee sdepartmenthead. PayrollYear :EffectiveinthepayperiodthatincludesOcto ber1,2015,employeeswillreceiveabasesalar yincreaseoftwopercent( ).EffectiveinthepayperiodthatincludesOct ober1,2016,employeeswillreceiveabasesala ryincreaseoftwoandonequarterpercent( ).

3 EffectiveinthepayperiodthatincludesOctob er;,2017,employeeswillreceiveabasesalary increaseoftwoandone-halfpercent( ).EffectiveinthepayperiodthatincludesOct ober1,2018,employeeswillreceiveabasesala ryincreaseofthreepercent(3%).Thesalarysc hedulesforthedurationoftheMOUareattached heretoasExhibit B . ,torecognizeemployeesasourmostimportantr esource,andtovaluethemfortheiradaptabili ty,dedication, , (PFP)program,theCityagreesthatmembersoft heunitshallbeevaluatedannuallyuponhis/he rannualevaluationdate(usuallytheannivers aryofthedatetheemployeewashiredorpromote dintohis/herposition).Employeeswhodonotr eceivetheirannualperformanceevaluationwi thin45daysofitsduedate,mayfilearequestwi ththeHumanResourcesDepartmentforissuance oftheevaluation, :1)theemployeereceivesatotalofatleasteig htpointsfortheratingsofperformancecatego ries,valuedasfollows:twopointsforeachrat ingof ExceedsPage2of26 Often (EP)andonepointforeachratingof exceedssometimes (ES);and2)theemployeedoesnotreceiveanype rformanceratingof Unsatisfactory.

4 Employeesareeligibletoreceiveuptofiveper cent(5%) , (forevaluationperiodswithenddatesofJuly1 ,2015throughJune30,2016),employeeswillbe eligibletoreceiveaPFPawardbasedupontheem ployee (forevaluationperiodswithenddatesofJuly1 ,2016throughJune30,2017)andthereafter,ev aluationswillbeissuedinaccordancewiththe employee ,thedeterminationofPFPawardsforallemploy eeswhomeettheestablishedeligibilitycrite riawillbemadefollowingtheendofeachfiscal year(nolaterthan60daysfollowingtheendoft hefiscalyear).Asanexample:Anemployeewhos eevaluationperiodisJanuary15th January14theachyearwillbeeligibleforPFPa wardsasfollows: FortheevaluationendingJanuary14th,2016,t heemployeewillbeeligibleforaPFPawardatth etimetheevaluationisissued(onornearJanua ry14th,2016).

5 FortheevaluationperiodendingJanuary14th2 017,theemployeewillbeeligibleforaPFPawar daftertheendoftheFiscalYear(nolaterthanS eptember1,2017).Thepartiesagreethattothe extentpermittedbylaw,payforperformancepa yisspecialcompensationandshallbereported assuchpursuanttoTitle2 CCR,Section571(a)(1) sownclassification,theperformanceofworka ssociatedwithahigher-levelclassification foranextendedperiodoftime, ,assubmittedthroughtheHumanResourcesOffi ce,thatanemployeereceivealumpsumbonusof1 -10% ,withtheapprovaloftheAssistantDirectorof AdministrativeServices/HumanResourcesort heCityManager,asrequired, , ,intheeventanappointmentismadeatothertha nStep1,theAppointingAuthorityshallsubmit ,inwriting,totheAssistantDirectorofAdmin istrativeServices/HumanResources, ,everyemployeeshallreceivestepadvancemen tswithinthe5.

6 Uponsuccessfulcompletionofthesixmonthsof serviceinhis/herassignmentinaclassificat ioninthisunit,anemployeeshallreceive(eff ectiveonthefirstdayofthepayperiodfollowi ngthecompletionofsixmonths) ,theemployeeshallbeeligibleforsalarystep increasestoSteps3through5(effectiveonthe firstdayofthepayperiodthatbeginsaftercom pletionofeachadditionalyear),providedtha the/shehasreceivedanevaluationwithanover allratingofatleastsatisfactory;. ,3,or4:Uponsuccessfulcompletionofoneyear ofserviceinaclassification,anemployeesha llbeeligibleforasalarystepincreasetothen extstep(onthefirstdayofthepayperiodthatb eginsafteroneyearofservicehasbeencomplet ed)andeachyearannuallythereafter, ,Step3and4, scurrentposition,uponwrittenrecommendati onoftheAppointingAuthority, , , , , sbasesalary(excludingthissalaryadjustmen t)exceedsthebasesalaryofhis/hersubordina tes, ,shiftdifferentials,overtimepayments, ,PROMOTION, ,theemployeeinthepositionmaybeappointedt othereclassifiedposition, (90)daysimmediatelypriortothereclassific ation.

7 , Y -rateanemployeewhosepositionhasbeenelimi nated, , ,itshallbeginonSaturdayat12 ,eachemployee sdesignatedFLSA workweek(168hoursinlength)shallbeginexac tlyfourhoursafterthestarttimeofhis/herei ghthourshiftonthedayoftheweekthatcorresp ondswiththeemployee (40)hourworkweek, , A9/80scheduleconsistsofalternateweeksofo neweekthatincludes4consecutiveworkdaysof 9hourseach,followedby5consecutiveworkday swithinthenextweek,4consecutivedaysofwhi chconsistof9workhourseachand1dayof$workh ours. A4/10scheduleconsistsofaweeklyworkschedu leof4consecutiveworkdaysof10workhourseac h. Workhoursaboveareconsecutive,exclusiveof theemployee (s)workshiftschedule( ,changingthestarttimeandendtimeofanemplo yee sworkdaybyonehourorless).

8 Thedepartmentheadwillprovide30days ,anothersuchschedulechangeinthe12-monthp eriodfollowingtheinitialschedulechangewi llrequireatleast90days ,anyotherchangestoanemployee(s) ( ,froma4/10toa9/80orviceversa)isproposedw ithinadepartmentorcitywide,towhichtheemp loyee(s)hasobjectionsorconcerns, ,orwasabsentonauthorizedpaidleavedurings aidperiod: NewYear sDayJanuary1 MartinLutherKingDay3rdMondayinJanuaryPre sident sDay3rdMondayinFebruary MemorialDayLastMondayinMay IndependenceDayJuly4 LaborDay1stMondayinSeptember Veteran sDayNovember11 ThanksgivingDay4thThursdayinNovember DayafterThanksgivingDayafterthe4thThursd ayinNovember ChristmasDayDecember25 Page7of26 Ifthefollowingholidays(January1,July4,No vember11,andDecember25)fallonaSaturday,t heprecedingFridayshallbeconsideredthehol iday.

9 IftheholidayfallsonSunday, , sdiscretion, , (withtheexceptionofthosefloatingholidays whichareearnedinNovemberorDecember,inwhi chcasetheemployeewillbeabletousethefloat ingholidayfromthatyearforthefirsttwomont hsofthefollowingyear)inwhichtheemployeeh asreceivedit, ,andthepartiesdonotwantemployeestoeverha vemorefloatingholidaysonthebooksthanwoul dbereceivedwithinthecurrentyear, sdiscretionsubjecttohis/herAppointingAut hority sordesignee ,Ifanemployeedoesnotusehis/herpersonalho lidaysearnedwithinthefiscalyear, , ,ifabargainingunitmemberispromotedtoanot herpositionwithintheunit,istransferredwi thintheunit,changespositionswithintheuni torispromotedintotheunitfromanotherunit, svacationleave,thedaywillcountasaholiday , ,(definedhereinasthelastfullpayperiodinD ecemberthatalsohasapaydayinDecember), , (6)monthsofemployment,anemployeemayuseup tothree(3) (6)months, ,child,step-child,parent,spouse, sannualaccrual(48hours)

10 Ofsickleavemayalsobeusedtocareforaparent -in-law, ,employeeswhousetwenty-seven(27) ,hereindefinedasaspouse,parent,grandchil d,brother,sister,child,step-child,grandp arent, (40)hoursofbereavementleave,percalendary ear,(regardlessofthenumberoffamilydeaths ) , , , (asthoughheorshewasworking) ,theemployeewillnotifyhis/hersupervisoro ftheabsenceassoonaspossible,including, (lesstransportationallowance,ifany) 230(b), (SabbaticalLeave)ACity-paidprofessionald evelopmentleaveofabsence(sabbaticalleave ) , sdutiesandresponsibilitiesduringhis/hera bsence, sperformancerecord.(1)Sabbaticalleavesma yallowuptoFiveHundredDollars($500) (1)leave,uptoninetycalendardays,foreachE mployeeeachfive(5)years,withnotmorethanf ive(5)suchemployeesparticipatinginanyone (1)year.