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Effective January 1, 2002, salaries shall be increased by three percent (3%) for all unit <br />classifications. This increase has been included in salaries listed in Appendix A. <br />Effective January 1, 2003, salaries (Appendix B) shall be increased by an amount equal to the <br />change in the San Francisco/Oakland Cost of Living Index for All Urban Consumers for the <br />twelve (12) months ending October, 2002. The minimum amount will not be less than three <br />percent (3%) and the maximum amount shall not be more than five percent (5%). <br />Effective January 1, 2004, salaries shall be increased an amount equal to the change in the San <br />Francisco/Oakland Cost of Living Index for All Urban Consumers for the twelve (12) months <br />ending October, 2003. The minimum amount will not be less than three percent (3%) and the <br />maximum amount shall not be more than five percent (5%). <br />For the term of this Agreement, the salary for Assistant City Manager shall be set equal to the <br />Police Chief. For Lieutenant, classification maximums shall be set at salary schedule maximums <br />or twenty percent (20%) above Sergeant, whichever is higher. For Captain, classification <br />maximums shall be set at salary schedule maximums or fifteen percent (15%) above Lieutenant, <br />whichever is higher. <br />Section 12.0 Employee Defense and Indemnity <br />In the event that all or part of a claim or judgment is for punitive or exemplary damages in any <br />action otherwise governed by Section 825 of the Government Code and upon request of the <br />employee against whom such claim or judgment is rendered, the City agrees to consider whether <br />the findings set forth in Section 825(b) (1) through (3) maybe made. This provision in no way <br />obligates the City to pay punitive or exemplary damages unless it in fact makes those findings. <br />Section 13.0 Layoff <br />The appointing authority may lay off an employee in the competitive service because of material <br />change in duties or organization or shortage of work or funds. If, by reason of expiration of a <br />leave of absence, reduction in personnel, demotion to the class, or other cause, there are more <br />employees in any class in the full-time competitive service than there are available positions in <br />that class, the employee last employed in the class shall be laid off; if such employee obtained <br />such position by promotion, he/she shall be demoted to the lower class from which he/she was <br />promoted rather than be laid off. Layoff or demotion shall be based upon the amount of seniority <br />an employee has in the classification he/she is occupying (i.e., the employee with the least <br />amount of seniority in the class shall be the first to be laid off or demoted, if job was obtained by <br />promotion). <br />Forty days before the effective date of a layoff, the appointing authority and/or designee shall <br />notify the Human Resources Director of the intended action with reasons therefore, and a <br />statement certifying whether or not the services of the employee have been satisfactory. A copy <br />of such notice shall be given to the employee affected at that time. If certified as having given <br />satisfactory service, the name of the employee laid off shall be placed on the appropriate re- <br />employment list. <br />7 <br />