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adjustments are designed to maintain equitable internal equity <br />within the respective occupational groupings. <br />DEFERRED COMPENSATION <br />The City shall maintain in effect the deferred compensation <br />program for the term of this agreement. <br />EMPLOYEE DEFENSE AND INDEMNITY <br />In the event that all or part of a claim or judgment is for <br />punitive or exemplary damages in any action otherwise governed by <br />Section 825 of the Government Code and upon request of the <br />employee against whom such claim or judgment is rendered, the <br />City agrees to consider whether the findings set forth in Section <br />825(b) (1) through (3) may be made. This provision in no way <br />obligates the City to pay punitive or exemplary damages unless it <br />in fact makes those findings. <br />LAYOFF <br />The appointing authority may lay off an employee in the <br />competitive service because of material change in duties or <br />organization or shortage of work or funds. If, by reason of <br />expiration of a leave of absence, reduction in personnel, <br />demotion to the class, or other cause, there are more employees <br />in any class in the full-time competitive service than there are <br />available positions in that class, the employee last employed in <br />the class shall be laid off; if such employee obtained such <br />position by promotion, he/she shall be demoted to the lower class <br />from which he/she was promoted rather than be laid off. Layoff <br />or demotion shall be based upon the amount of seniority an <br />employee has in the classification he/she is occupying (i.e., the <br />employee with the least amount of seniority in the class shall be <br />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 <br />authority and/or designee shall notify the Personnel Director of <br />the intended action with reasons therefore, and a statement <br />certifying whether or not the services of the employee have been <br />satisfactory. A copy of such notice shall be given to the <br />employee affected at that time. If certified as having given <br />satisfactory service, the name of the employee laid off shall be <br />placed on the appropriate re-employment list. <br />Employees shall be given 30 days notice before the effective <br />date of layoff. <br />All laid off employees shall be placed on a re-employment list <br />for the class from which they were laid off or demoted (i.e., the <br />-7- <br />