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 .Now,therefore, , ,policiesorproceduresthatareinforceandef fectwhichaffectwages, ,itisagreedthatsuchpractices,policiesand proceduresshallremaininfullforceandeffec tduringtheentiretermofthisagreement,unle sstheyareinconsistentwiththeprovisionsof thisMOU, :Unlessotherwisespecifiedherein,thisMOUs hallbeeffectiveOctober1,2015andshallexpi reonSeptember30, : Day :Theword day inthisagreementreferstocalendardaysunles sspecificallydesignatedasworkingdays.

2 AppointingAuthority :referstoeachemployee sdepartmenthead. PayrollYear :EffectiveinthepayperiodthatincludesOcto ber1,2015,employeeswillreceiveabasesalar yincreaseoftwopercent( ).EffectiveinthepayperiodthatincludesOct ober1,2016,employeeswillreceiveabasesala ryincreaseoftwoandonequarterpercent( ).EffectiveinthepayperiodthatincludesOct ober;,2017,employeeswillreceiveabasesala ryincreaseoftwoandone-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.

3 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). 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.

4 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.

5 , 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).Thedepartmenthe adwillprovide30days ,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.

6 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)ofsickleavemayals obeusedtocareforaparent-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.

7 (1)SabbaticalleavesmayallowuptoFiveHundr edDollars($500) (1)leave,uptoninetycalendardays,foreachE mployeeeachfive(5)years,withnotmorethanf ive(5)suchemployeesparticipatinginanyone (1)year.(2)EachparticipantinSabbaticalLe aveProgramsshallsubmittotheCityManagerre portssummarizinghis/heractivitiespriorto finalapprovalofsuchprograms.(3)TypicalSa bbaticalLeaveProgramsmightincludeinterns hips,on-loanexecutiveprograms,educationa lprograms,travelstudyprograms, ssupervisorandapprovedbytheemployee sdepartmentheadordesigneeandshallbeusedo nlyifallappropriateaccruedleaves( ,sickleavemaynotbeexhaustediftheleaveisn otforamedicalpurpose) ,leaverights,norshalltheCitypayforanyfri ngebenefits, $0hoursofAdministrativeLeave(apro-rateda mountforthefirstyearintheunitfromwhenthe employeebecomesamemberoftheunit)eachcale ndaryear(allofwhichisavailableforusestar tingonJanuary1ofeachyear,butwhichaccrues (forpurposesofcash-outincaseaunitmemberl eavestheCity)prorataduringeachpayperiodt hroughouttheyear) sdepartmentheadordesignee, ,uponemployeerequest, ,aftercashingoutupto40hoursofAdministrat iveLeaveanemployeestillhasAdministrative Leaveonthebooks,forthefollowingcalendary earhe/shewillonlyaccrue(duringeachpayper iod)

8 ThatamountofAdministrativeLeavewhich(whe naddedtothecarriedoverAdministrativeLeav efromthepriorcalendaryear)willresultinth eemployeeaccruing$ ,ifanemployeehas60hoursofAdministrativeL eaveattheendoftheyearandcashesout40oftho sehours,inthefollowingcalendaryear, ,notwithstandingthathe/ (7)ormorecontinuousyearsofserviceshallbe eligibleforallaccumulatedsickleavepay-of fuponseparationfromemploymentwiththeCity , , ,thepartiesagreethatalloftheprovisionsof thecafeteriaplandocuments(whetherinclude dinthisMOUornot) ,dentalandopticalbenefitsareprovidedthro ughtheprovisionofacafeteriaplanadoptedin accordancewiththeprovisionsofIRSCode :Thecafeteriaplanoffersemployeestheoppor tunitytopurchasemedical, ,2015throughDecember31,2017,employeessha llbeprovidedwiththeamountof$2, , $2, ).EffectiveJanuary1,2018,employeesshallb eprovidedwiththeamountof$2, , ,2019,employeesshallbeprovidedwiththeamo untof$2, , :IfCaIPERS changesanyofthemedicalinsuranceplansbyei theraddingtoordeletingtheplanoptionsdesc ribedabove, ,employeeswillalsobeabletochoosethebenef itfortheemployee,employee+1oremployee+ ,anemployeemayoptoutofmedicalinsuranceif theemployeeprovidesproofofgroupmedicalin surancecoverage( ,coverageunderaspouse semployer splan)thatiscompliantwiththeAffordableCa reAct( ACA ).

9 IfatanytimeduringthetermoftheMOU,theCity issubjecttopenaltiesundertheACA, sdentalinsuranceprovider, , ,employeeswillhavetheoptionsof:employee, Page15of26employee+ sopticalinsuranceprovider,VisionServiceP lan(VSP). , ,employeeshavetheoptionsof:employee,empl oyee+1oremployee :Ifanemployeechoosesoptionalbenefitswhos eaggregatecostexceedsthetotalCitycontrib utionstotheCafeteriaPlan,theCitywillauto maticallydeducttheexcessamountonapre-tax basisfromtheemployee :Employeeswillbeeligibletoreceivecashupt oamaximumof$500permonth(subjecttotaxatio naswages) :Thecafeteriaplanwillalsoofferemployeest heopportunitytoparticipateinbothahealthc areanddependentcareflexiblespendingaccou nt(eachanFSA)wherebyemployeeswillbeablet odeferuptothemaximumpermittedbylawforthe healthcareFSAandthedependentcareFSA) ,beforeJanuary1ofeveryyear,employeeswill beabletoelecttohavetheircompensation(upt otheaforementionedlimits) (andforashortgraceperiodthereafter),anem ployeecanreceivereimbursementsundertheFS Aforcoveredexpensesincurredduringtheyear ,uptotheamountoftheemployee (non-CafeteriaPlanbenefits).

10 TheCityprovideslongtermdisabilityinsuran ceforeachemployeewhichprovidesfortwo-thi rds(2/3)ofmonthlysalaryuptoamaximumof$7, 500permonth, ,themaximumbenefitwillbeincreasedto$9, ,theemployeemaynotreceivemorethan100% :TheCitywillprovideforeachemployeeaterml ifeinsurancepolicyvaluedat$100,000,which willincreaseto$125, :Employeesmayalsopurchasesupplementalter mlifeinsurance,ifavailable, (ifapplicable)topurchasesupplementalterm lifeinsurance, $ ,anycashthatanemployeemayreceivethrought hecafeteriaplanmaynotbedeferredtotheempl oyee catchup catchup ,theCityshallcontinuetopaythegrosssalary ,lesslegallyrequireddeductions,totheinju redemployeeforaperiodnottoexceedten(10) (10) , :Exceptasprovidedherein,noemployeeshallb eentitledtouseaccumulatedsickleaveduring anyperiodforwhichhe/sheisentitledtorecei vetemporarydisabilityindemnityunderDivis ion4(Section3201, ) (foraperiodnottoexceedtwelve(12)monthsaf terhe/shefirstmakessuchelection)touseasm uchofhis/heraccumulatedsickleaveorvacati onaswhenaddedtohis/herdisabilityindemnit ywillresultinapaymenttohim/ :Intheeventanemployeeisonaleavewithoutpa yasaresultofanindustrialinjury,theCitysh allpaythePERS statutoryminimumforthatemployee(assuming theemployeewantsmedical,dentalorvisionco veragefromtheCity) ,outsideofPEMHCA,assumingtheemployeewant stobecoveredbymedical,dentalorvisioninsu rancetheemployeeshallreceivehis/heraddit ionalcafeteriaplancontribution(uptothema ximumamountprovidedabove) , ,2010 ,1981andPriortoDecember2,1997.