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<br />Section 9.0 Compensation <br /> <br />Salary for each classification varies from step 1 to step 5 as shown in Appendix A of this <br />agreement. New hires and promotions may be placed at the step closest to a minimum five percent <br />(5%) base salary increase, or any step, subject to the City Manager’s final approval. Employees may <br />be advanced from their current step to the next higher step after each year of satisfactory <br />performance. <br /> <br />The appendix reflects wage adjustments as follows: <br /> <br />A two and one-half (2.5%) percent across the salary schedule adjustment effective October 1, 2013. <br /> <br />A three and one-half (3.5%) percent across the salary schedule adjustment effective July 1, 2014. <br /> <br />A four (4%) percent across the salary schedule adjustment effective June 1, 2015. <br /> <br />Section 10.0 Employee Defense and Indemnity <br /> <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 the <br />findings set forth in Section 825(b) (1) through (3) may be made. This provision in no way obligates <br />the City to pay punitive or exemplary damages unless it in fact makes those findings. <br /> <br />Section 11.0 Layoff <br /> <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 leave <br />of absence, reduction in personnel, demotion to the class, or other cause, there are more employees <br />in any class in the full-time competitive service than there are available positions in that class, the <br />employee last employed in the class shall be laid off; if such employee obtained such position by <br />promotion, he/she shall be demoted to the lower class from which he/she was promoted rather than <br />be laid off. Layoff or demotion shall be based upon the amount of seniority an employee has in the <br />classification he/she is occupying (i.e., the employee with the least amount of seniority in the class <br />shall be the first to be laid off or demoted, if job was obtained by promotion). <br /> <br />Forty (40) days before the effective date of a layoff, the appointing authority and/or designee shall <br />notify Human Resources of the intended action with reasons therefore, and a statement certifying <br />whether or not the services of the employee have been satisfactory. A copy of such notice shall be <br />given to the employee affected at that time. If certified as having given satisfactory service, the <br />name of the employee laid off shall be placed on the appropriate re-employment list. <br /> <br />Employees shall be given thirty (30) days written notice before the effective date of layoff. <br /> <br />All laid-off employees shall be placed on a re-employment list for the class from which they were <br />laid off or demoted (i.e., the last person in the affected class to be laid off shall be the first re-hired <br />when openings occur in that class or any other of the same pay for which the employee is qualified). <br />If the employee on the re-employment list refuses the initial offer of re-employment, the employee's <br />name shall be placed at the end of the re-employment list. If the same employee refuses proffered <br />9 <br />SLMO final 2013