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and is presented during the term of this Memorandum of Understanding, such grievance shall be submitted to an impartial arbitrator who shall be designated by mutual agreement between the Employee Union and the City Manager. Should the Union and the City Manager fail to reach agreement on selection of the arbitrator within fifteen (15) days, they shall jointly request a list of five (5) qualified arbitrators from the California State Mediation and Conciliation Service. If mutual selection cannot be made from the list received within five (5) days, the parties shall select the arbitrator by alternately striking names until only one name remains; that person shall serve as the arbitrator. The party which strikes the first name from the list of arbitrators shall be determined by a toss of a coin. The fees and expenses of the arbitrator and of a Court Reporter shall be shared equally by the Employee Union and the City. Each party, however, shall bear the cost of its own presentation, including preparation and post hearing briefs, if any. Decisions of Arbitrators on matters properly before them shall be final and binding on the parties hereto. No Arbitrator shall entertain, hear, decide or make recommendations on any dispute involving a position over which a recognized employee organization has jurisdiction unless such dispute falls within the definition of a grievance as hereinabove set forth in paragraph (1) of this Section. Proposals to add or change this Memorandum of Understanding or written agreements or addenda supplementary hereto shall not be arbitratible and no proposal to modify, amend or terminate this Memorandum of Understanding, nor any matter or subject arising out of or in connection with such proposal, may be referred for arbitration under this section; and no Arbitrator shall have the power to amend or modify this Memorandum of Understanding or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment. C. All grievances involving or concerning the payment of compensation shall be initially filed in writing with the Human Resources Director. In such cases no adjustment shall be retroactive for more than sixty (60) days from the date upon which the grievance was filed. Only grievances which allege that employees are not being compensated in accordance with the provisions of this Memorandum of Understanding shall be considered as grievances. Any other matters of compensation are to be resolved in the meeting and conferring process and if not detailed in the Memorandum of Understanding which results from such meeting and conferring process shall be deemed withdrawn until the meeting and conferring process is next opened for such discussion. No changes in the Memorandum of Understanding or interpretations thereof (except interpretation resulting from arbitration proceedings hereunder) will be recognized unless agreed to by the City Manager and the Employee Union. Section 27. City Rules The rules, regulations, resolutions and ordinances adopted by the City of San Leandro and the Personnel Relations Board apply to all employees in this unit except as specifically amended as a result of recommendations set forth in this Memorandum of Understanding. 24