AGREEMENT BETWEEN

SAN DIEGO TROLLEY, INC.

AND

INTERNATIONAL BROTHERHOOD OF

ELECTRICAL WORKERS, LOCAL UNION 465

THIS AMENDED AGREEMENT is entered into this 9th day of August 25, 2006, between SAN DIEGO TROLLEY, INC., hereinafter referred to as “Employer,” and LOCAL UNION NO. 465 of the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AFL‑CIO, hereinafter referred to as “Union,” covering the classifications of employees specified in Article 2.

ARTICLE 1

PREAMBLE

The parties agree that this Agreement creates no rights or obligations other than those enumerated herein.

ARTICLE 2

UNION RECOGNITION

The Employer recognizes the Union as the sole and exclusive collective bargaining representative for employees in the following classifications: LRV Electromechanic, MOW Electromechanic, LRV Lineman, MOW Lineman, LRV Assistant Lineman, MOW Assistant Lineman, Revenue Maintainer I, Revenue Maintainer II, Revenue Maintainer III, Ridership Surveyor, Serviceperson, Storekeeper, Track Serviceperson, Revenue Processor/Collector, Data Entry Clerk, Train Operator, Station Attendant, Clerk/Typist, but excluding all other positions not specifically enumerated above.

The Employer also agrees to recognize the Union as the sole and exclusive collective bargaining representative for any new bargaining unit positions created during the term of this Agreement. When a new classification is added, the Employer will notify the Union within five (5) working days.

When a bargaining unit member is working outside the bargaining unit, he/she shall not perform a dual role of bargaining unit member and non-bargaining unit member. The Employer will not work a bargaining unit member in a non-bargaining unit position for more than 50 consecutive workdays, absent written agreement from the Union. Bargaining unit members working as auxiliary supervisors will wear clothing designating the employee as a supervisor.

ARTICLE 3

AGENCY SHOP

A. Membership in the Union is not compulsory. Employees have the right to join, not to join, maintain or drop their membership in the Union as they see fit. Neither party shall exert any pressure on, nor discriminate against, any employee as regards such matters.

B. Actual membership in the Union is separate, apart and distinct from the assumption by an employee of his/her obligation to financially support the Union from which he/she receives representation rights and benefits. The Union is required to represent all employees in the bargaining unit fairly and equally without regard as to whether or not an employee is a member of the Union. The terms of this Agreement have been made for all of the employees in the bargaining unit and not only for members of the Union; and this Agreement has been executed by the Employer. Accordingly, it is fair that each employee in the bargaining unit pay his/her own way and assume his/her fair share of the obligation along with the grant of equal benefits.

C. In accordance with the policy set forth under subparagraphs A and B above, all regular full‑time and part‑time employees shall, as a condition of employment, pay to the Union, the employees’ exclusive bargaining agent and representative, an amount of money equal to that paid by other employees in the bargaining unit who are members of the Union, which shall be limited to an amount of money equal to the Union’s regular and usual membership dues. Such payments shall commence 31 days following the date the employee commences work with the Employer.

D. Dues Checkoff. Employer agrees to deduct from the pay of each employee covered by the terms of this Agreement, who authorizes in writing and maintains such authorization with Employer for such deductions, all Union dues as may be established by the Union against such member. Employer shall remit such deductions once each month to the Union Financial Secretary. Union will indemnify and hold Employer harmless from any claims, suits, grievances, attorneys’ fees, or any other form of liability as a result of making payroll deductions for membership dues.

E. Delinquency. The Union shall periodically notify the Employer’s personnel administrator (or designee) in writing of the names of employees who have failed to comply with this article. This notification shall advise the Employer of the specific nature of the employee’s failure to comply with this article. The notification will further state that the employee has no valid excuse (e.g., the employee is in bankruptcy) for nonpayment of the dues and that the Union believes that there is no legal reason which relieves the employee of his/her obligation to pay the dues. A copy of this notification shall be sent to the employee by the Union.

Thereafter, the Employer shall send a “Notice of Intent to Terminate” to the employee in question, advising the employee that he/she will be terminated for non‑payment of union dues.

If, at the time of the termination hearing, the employee is unable to verify that he/she has complied with this article, the employee shall be discharged for non‑compliance with this article.

F. Indemnification. Union will indemnify and hold Employer harmless from any claims, grievances, suits or any other form of liability, including reasonable attorneys’ fees, arbitration fees and costs, arbitrator fees, court costs, court reporter fees, and any other expenses connected with dismissal of an employee, for which the Employer could otherwise be held responsible, including any monetary damages which may be awarded against the Employer, as a result of terminating an employee pursuant to this article. The Union shall pay the above‑listed costs and damages incurred by the Employer immediately upon presentation by the Employer of evidence of such costs and damages to the Union. The Employer shall not incur costs or fees unnecessarily.

ARTICLE 4

SENIORITY

A. Layoffs. If it becomes necessary through lack of work or funds or for other reasons to reduce the number of employees for more than five (5) workdays, layoffs shall be effected within job classifications. The order of layoff shall be based on seniority within job classifications.

B. Bumping Rights. An employee laid off from his/her present job classification may bump into the next lowest job classification in his/her department in which the employee has greatest company‑wide seniority, provided he/she is capable of performing all of the jobs in the lower classification. The employee may continue to bump into lower classifications, under the conditions set forth above, to avoid layoff.

C. Layoff in Lieu of Bumping. An employee who elects layoff in lieu of bumping maintains the reemployment rights set forth below.

D. Reemployment Rights. Laid off persons are eligible for reemployment in the job classification from which laid off for up to 12 months and shall be offered reemployment in the reverse order of layoff prior to the hiring of new employees to fill these positions.

E. Posting of Seniority Lists. Employer will maintain and post accurate seniority lists. When events cause changes to the seniority list, the Company will promptly post a new seniority list for the affected department, providing same to the Union. The Union shall have five (5) working days from each such posting within which to challenge said list. If no such challenge is made within this period, then the list shall conclusively be deemed to be correct.

F. Termination of Seniority and Employment. Employee’s seniority and employment shall be terminated by:

(1) Resignation;

(2) Discharge;

(3) Failure to appear for work for five (5) consecutive workdays without calling the Employer;

(4) 12 consecutive months on layoff;

(5) 12 consecutive months of leave of absence which is not due to industrial injury. This provision does not apply to authorized leaves of absence for Union business.

G. Seniority Within classification. Effective upon the signing of this Agreement, when more than one employee has the same seniority in a classification, the senior employee shall be determined by which employee has the greater seniority with the Company based on the hire date as a regular employee. When more than one employee has the same Company seniority, the senior employee shall be determined by those employees drawing a seniority number by lot.

ARTICLE 5

GRIEVANCE AND ARBITRATION PROCEDURE

A. General Rules.

(1) A grievance is a disagreement concerning the interpretation or application of the terms of this contract. The Employer and the Union encourage the settlement of disagreements informally at the employee‑supervisor level.

(2) The grievant may, but is not required to, be present at all steps of the grievance procedure. An aggrieved employee shall have the right to be represented by a Union representative at any step of the grievance procedure.

(3) Failure by the Employer at any step of this procedure to communicate the Employer’s decision on the grievance within the specified time limits shall permit the grievant to proceed to the next step of the procedure.

(4) Suspension: The Employer will make its best effort to schedule a suspension within 30 working days of issuance, depending on operational needs. In no event will suspensions be scheduled after 90 working days from issuance. If a suspension has not been scheduled within 90 working days, the infraction and the suspension will be noted in the employee’s file as time served.

B. Grievance Procedure.

(1) Step 1. After a dispute arises, the grievant and his/her immediate supervisor/superintendent will meet and attempt to informally resolve the grievance. The grievant may elect to bypass Step 1 and go directly to Step 2.

(2) Step 2. A grievance concerning matters other than a discharge shall be filed in writing by the grievant or Union with the Vice President of Operations or Director of Human Resources and Labor Relations or his/her designee within 10 working days of the event which forms the basis of the grievance. In the case of a grievance of a continuing nature, the grievance must be filed within 10 working days of the date the grievant or Union knew or should have known of the events upon which the grievance is based. A grievance concerning discharge shall begin at Step 2 of this procedure and must be filed within five (5) working days after the date of discharge, except where the employee is notified via certified mail, in which case he/she shall have 10 days from the certified mailing date of written notification of discharge.

(3) Step 3. The Vice President of Operations or Director of Human Resources and Labor Relations or his/her designee, shall meet with the grievant and Union representative within 15 working days after the submission of the grievance.

(4) Step 6. If the Union is not satisfied with the decision of the Vice President of Operations or Director of Human Resources and Labor Relations or his/her designee, the original grievance may be submitted to mediation upon the mutual written consent of the Employer and Union within 15 working days after the date of the decision.

(5) Step 7. If either party is not satisfied with the decision of the mediator, the original grievance may be submitted to arbitration upon written request within 15 working days after the date of decision. If the parties do not agree to mutually request mediation, as provided for in step 6, the original grievance may be submitted to arbitration upon written request by the Union within 15 working days after the decision of the President-General Manager or within 15 working days after the Employer rejects mediation, whichever is later.

C. Mediation Procedure.

(1) Use of the mediation procedure shall occur only upon the mutual written consent of the Employer and Union. The issue(s) to be submitted to mediation shall be limited to those set forth and defined in the original grievance, and the mediator’s authority shall be limited to the determination of the issue(s) thus set forth.

(2) The mediation shall be held before an impartial agency jointly selected by the parties, such as the federal or state mediation and conciliation service.

(3) The mediation shall be conducted as an informal proceeding, but both parties may call witnesses to testify to events and submit documents to the mediator in support of their respective positions.

(4) After hearing the evidence, the mediator shall issue a decision sustaining or denying the grievance. This decision may be made the day of the hearing or within five (5) working days thereafter, where appropriate. The decision of the mediator shall not be binding on the parties.

(5) In order to reduce expenses associated with mediation, the parties agree that neither shall be allowed to have attorneys or counselors present at the mediation hearing.

(6) Employer agrees to contact the Union to schedule a mediation hearing within 45 days of a written request to do so by the Union.

D. Time Limits.

(1) For the purpose of Article 5 of this Agreement, “working days” means Monday through Friday, exclusive of holidays.

(2) A grievance not filed in writing with Employer within the time limits set forth in paragraph B will be forever barred. Failure by the grievant or Union to proceed to the next step in this procedure within the applicable time limit shall be deemed an abandonment of the grievance and the grievance shall be forever barred.

(3) The Employer and Union may waive the time limits set forth in Article 5 only by mutual agreement confirmed in writing by either party and timely sent to the other party. Such agreements will be dealt with on a case‑by‑case basis, without creating any precedent for future cases.

E. Elements of a Grievance. A grievance shall not be recognized under Article 5 unless it is in writing, presented to the Employer in a timely fashion as set forth above, and contains:

(1) a precise statement of the facts giving rise to the grievance;

(2) the specific contract provision(s) allegedly violated;

(3) a statement of how the facts indicate that the contract was violated; and

(4) the remedy sought.

This Section shall not apply to Step 1 of the Grievance Procedure (which is the informal resolution stage).

F. Arbitration Procedure.

(1) The issue(s) to be submitted to arbitration shall be limited to those set forth and defined in the original grievance, and the arbitrator’s authority shall be limited to the determination of the issue(s) thus set forth.

(2) The arbitration shall be held before an impartial arbitrator jointly selected by the Employer and Union. If the parties are unable to agree on an arbitrator, a list of seven (7) arbitrators shall be obtained from an appropriate agency and the parties shall alternatively strike names from the list until only one arbitrator remains who shall hear the grievance.

(3) As soon as reasonably possible after the arbitrator is selected, a hearing shall be held before the arbitrator. The arbitrator shall issue an award in writing pertaining only to the issues submitted to arbitration. The award of the arbitrator shall be final and binding on all parties.

G. Expenses. Each party shall be responsible for any expense incurred in connection with the presentation of its case in the grievance procedure, mediation and arbitration. The compensation of any witness called before a mediation or arbitration hearing shall be borne by the party calling the witness. All general expenses of mediation and arbitration, including that of the mediator or arbitrator, the place of hearing, transcripts of the record and the like shall be borne equally by the parties.

ARTICLE 6

GENERAL PROVISIONS

A. Rules and Regulations. The Union recognizes that the Employer may, from time to time, promulgate rules and regulations for the management of the business and the direction of its working force.

B. Just Cause. No employee may be disciplined or discharged without just cause.

C. Bulletin Boards. The Employer will provide one (1) bulletin board in each of its buildings. The Union agrees not to post controversial or political material and to remove dated material in a timely manner.

D. Employees to Advance Welfare of Employer. The Union agrees for its members (who are employees of the Employer) that they will individually and collectively perform loyal and efficient work and service, that they will use their best efforts to protect the property of the Employer, and that they will cooperate in promoting and advancing the welfare of the Company and the protection of its service to the public at all times. The Employer will cooperate with the Union in its efforts to promote harmony and efficiency among the employees.

E. Conflict With Applicable Laws. If during the term of this Agreement, mandatory laws applicable to and in conflict with any of the provisions herein shall become effective and thereafter govern the parties with respect to such conflicting provisions, this Agreement shall be subject to modifications by mutual agreement of the parties hereto, only in regard to the provisions which conflict.

F. Job Rotation Study. The Employer will evaluate the feasibility and effectiveness of rotating Maintenance, Revenue, MOW and Facilities employees between different functional areas. If an employee from Maintenance, Revenue, MOW or Facilities expresses their interest in writing to their supervisor, the Employer will try to place them in another assignment depending on SDTI’s operational needs.

ARTICLE 7

UNION BUSINESS

A. Union Access. Non-employee Union representatives and employee Union representatives will be permitted access to the Employer’s facilities for the purpose of conducting Union business. Such visitations shall be limited to official Union business and shall not be used for social interaction or any other purpose not directly related to the Union business giving rise to the visit. Union representatives will make every effort to provide reasonable advance notice of visits to a representative designated by the Employer. If reasonably possible, a Union representative will also notify a supervisor in the department or area where he/she intends to visit of his/her presence on the property.

The Union will be allowed to conduct an orientation session at the Employer’s facilities for each new class of employees. The orientation session will be conducted during the initial employee training period, at a time scheduled by the Employer. The Union’s orientation session shall be limited to one-half hour, and the purpose is to discuss Union business with the employees. The Union agrees this meeting will not be used to disparage or criticize the Employer, but rather to educate new employees as to the purpose and function of the Union.

B. No Interruption of Work. Union agrees that it will not in any way interrupt or delay employees during work periods or interfere with the Employer’s business by such visits.

C. No Pay for Union Business. The Employer will not pay wages to Employee Union representatives when they are conducting Union business including processing grievances and negotiating labor contracts. Such Union representatives shall not lose entitlement to fringe benefits for the time spent on such Union business so long as it does not require a leave of absence.

D. Union Contributions. The Employer hereby agrees to honor contribution deduction authorizations from its employees who are Union members in the following form:

I hereby authorize the Employer to deduct from my pay the sum of one‑fourth cent (1/4) for each straight time hour paid and to forward that amount monthly to the International Brotherhood of Electrical Workers, AFL‑CIO, Committee on Political Education, 1125 Fifteenth Street, N.W., Washington, D.C. 20005. This authorization is signed voluntarily and with the understanding that the IBEW‑COPE will use the money to make political contributions and expenditures in connection with federal, state, and local elections and that this voluntary authorization is in response to a joint fund raising effort by the IBEW and the AFL‑CIO.

The Union will indemnify and hold the Employer harmless from any claims, suits, or any other form of liability as a result of making the payroll deductions described above.

E. Shop Stewards. The Union may designate Shop Stewards as necessary. The Union will notify the company in writing of the appointment or removal of such stewards. Employees, acting in the capacity of Shop Stewards, will not interrupt or delay other employees during work periods or otherwise interfere with the Employer’s business. If a Shop Steward must be absent during any work period, he/she must first obtain permission to be absent from his/her supervisor. Such permission shall not be unreasonably denied. Employees will not be compensated by the Employer while acting in the capacity of a Shop Steward.

F. Release Time. Employees who are Union representatives and/or Shop Stewards shall be granted a reasonable amount of release time from work in order to conduct Union business including, but not limited to, attending grievance meetings, negotiating labor contracts and attending Union‑related conferences and meetings. Employee Union representatives and Shop Stewards must obtain permission from their supervisor for such release time. Such permission shall not be unreasonably denied. Employee Union representatives and Shop Stewards shall not be compensated by the Employer during such release times.

G. Leaves of Absence for Union Business. Employee Union representatives and/or Shop Stewards shall be granted reasonable leaves of absence for Union business. Employee Union representatives and Shop Stewards must obtain permission from the Employer for such a leave of absence. Employees seeking such a leave of absence shall submit their request in writing to a designated representative of the Employer, as soon as reasonably possible prior to the leave. Such permission shall not be unreasonably denied.

Leaves of absence for Union business shall be without pay. An employee on leave of absence for Union business shall be returned to the same or a similar position with the Employer, provided that such position exists, the Employer has an opening for an employee in such position, and the employee is qualified to perform the duties of such position. The Employer shall not apply the terms of this paragraph in a discriminatory manner.

H. Fringe Benefits While on Leave of Absence for Union Business. Employees on a leave of absence for Union business over 30 calendar days will, on the thirty‑first day of leave of absence, stop receiving Employer‑paid benefits. For health, dental and life insurance premiums, the Employer’s obligation to pay the premium shall end after making one (1) monthly payment beyond the date the leave of absence began. Thereafter, it shall be the employee’s obligation to pay the necessary premiums in order to maintain insurance coverage for that employee and his/her dependents.

Any employee on such a leave of absence over 30 days will stop his/her wage progression (step increases) through the compensation schedule, and will lose one‑twelfth of his/her vacation for each month of work missed after the first 30 days of leave. Such employees on leaves of absence over 30 days are not entitled to jury duty pay during any period of absence beyond that time. Such employees on leaves of absence are not entitled to holiday pay for any holiday occurring during the leave.

Employees on such leaves over 30 calendar days will retain their classification and company seniority, but will not accrue any benefits (such as vacation or holidays) during their period of absence.

ARTICLE 8

DEFINITIONS

A. The parties agree that the term “employee” wherever used in this contract, whether singular or plural, means and implies only those employees of Employer included within the bargaining unit as defined in Article 2 of this contract, and that this contract shall be limited only to said employees. Words used in this contract in the masculine or feminine gender shall include the other gender.

B. “Hire Date” is the date of commencement of employment as a regular (non‑temporary) employee.

C. “Anniversary Date” is the annual date of recurrence of the employee’s hire date.

D. “Classification Date” is the date an employee enters a job classification.

E. “Continuous Service” means employment, without interruption by termination or resignation, from the original date of employment. No credit shall be given for service as a temporary employee when determining an employee’s continuous service.

F. “Immediate Family” includes only spouse, children, sister, brother, father, mother, father‑in‑law, mother‑in‑law, grandparent, or grandchild, or any of the aforementioned step or adopted relatives.

G. “Promotion” is change of classification to one in which the maximum rate of pay is higher than the maximum rate of pay in which the employee is currently employed. A promotion does not occur when an employee changes from a part‑time position to a full‑time position within the same classification and at the same contractual pay rate.

ARTICLE 9

PERSONNEL CATEGORIES AND DEFINITIONS

A. The Employer may create categories other than those enumerated below as the need arises. The Employer shall determine which employees shall be employed in each category listed below, based upon qualifications as determined by, but not limited to, job knowledge, job skill, job abilities, attendance and employment record.

Existing employees shall be entitled to bid for any new bargaining unit positions added after ratification of this agreement.

B. Definitions.

(1) “Regular Full-Time employees.” Includes maintenance and administration employees who normally work a 40 hour week on a predetermined schedule, normally eight (8) hours per day for five (5) consecutive days, and have successfully passed the probationary period. Also includes transportation employees with a predetermined schedule who have successfully passed the probationary period. The Employer will attempt to equalize scheduled hours for full‑time transportation employees so that they work as close to 40 hours per week as possible.

(2) “Regular Part-Time employees.” Those who are regularly scheduled to work less than 40 hours per week but with no minimum hours guaranteed. Employer agrees that no more than 50% of the servicepersons shall be part‑time employees. It is the intention of the Employer not to schedule part‑time employees to work more than 32 hours per week except in unusual circumstances beyond the Employer’s control or in emergencies.

Part-time train operators may bid a priority day off. Employer will not schedule the part-time train operator to work on his/her priority day off unless all other part-time train operators who do not have a priority day off are unavailable. There shall be no penalty if Employer calls a part-time train operator into work on a priority day off, so long as the Employer follows the provisions of this paragraph.

Part-time train operators may also submit an AM or PM preference to Employer, and Employer will not schedule the part-time train operator to work a shift other than his/her preference unless all other part-time train operators with a preference to work that shift are unavailable. There shall be no penalty if Employer calls a part-time train operator into work at a time that is not consistent with the employee’s AM or PM preference, so long as the Employer follows the provisions of this paragraph.

(3) “Temporary employees.”

a. “Temporary replacements.” Those employees who have been hired to perform a bargaining unit job due to a vacancy or absence of a bargaining unit member, not to exceed six (6) months, unless mutually extended by the parties. Such employees shall be compensated at the entry level rate of pay for the classification to which they are assigned. Such employees are not subject to any provisions of this Agreement, except Article 10, Sections B, C, D and E; Article 11, Sections C and D; Article 12, Sections B and C and Article 18.

b. “Temporary employee.” Those employees who have been hired to perform a job not part of the normal job duties of bargaining unit employees for a duration not to exceed six months, unless mutually extended by the parties. Such employees shall be compensated at the minimum wage, unless a different pay rate is mutually agreed to in writing by the parties. Such employees are not subject to any provisions of this Agreement, except Article 10, Sections B, C, D and E; Article 11, Sections C and D; Article 12, Sections B and C and Article 18.

c. A temporary replacement or temporary employee who applies for a regular position will be given consideration for the position prior to the company reviewing outside candidates.

d. The company agrees not to utilize the foregoing provisions to erode the bargaining unit.

(4) “Probationary employees.” The first 180 days of regular employment shall be considered a probationary period, except that the probationary period for new train operators will be 180 days after the date the train operator is qualified, rather than the date of hire. During the probationary period, an employee may be terminated without notice and without recourse through the grievance and arbitration procedure. The probationary period may be extended by mutual agreement between Employer and Union. During the first 180 days of regular employment, the employee does not accrue benefits. However, after completion of the first 180 days of regular employment, an employee’s benefits shall be deemed to have accrued from his/her hire date.

C. Employee Classifications:

Maintenance Department

(1) LRV Electromechanic

(2) MOW Electromechanic

(3) LRV Lineman

(4) MOW Lineman

(5) LRV Assistant Lineman

(6) MOW Assistant Lineman

(7) Track Serviceperson

Administration Department

(8) Revenue Maintainer III

(9) Revenue Maintainer II

(10) Revenue Maintainer I

(11) Revenue Processor/Collector

(12) Storekeeper

(13) Serviceperson

(14) Clerk/Typist

(15) Data Entry Clerk

(16) Station Attendant

(17) Ridership Surveyor

Transportation Department

(18) Train Operator

Employer reserves the right to require employees with appropriate qualifications to work outside of their classification on a temporary basis when necessary.

ARTICLE 10

QUALIFICATIONS FOR HIRING AND CONTINUED EMPLOYMENT

A. Vacancies. Vacancies shall be posted as soon as reasonably practical for at least 10 working days, and applications shall be accepted from all qualified persons. A current employee shall be given preference over other applicants, provided the current employee is equally qualified.

In the absence of an employee, the Shop Steward may bid for a vacancy on behalf of the employee.

B. Examination. As Employer may determine from time to time, examination for a vacancy may consist of any one test or a combination of tests, including written, oral, performance, physical, medical, or psychological, to evaluate the training, experience, capability, or other qualifications of the applicant for that vacancy. If the Employer requires performance test(s) in filling a vacancy, such test(s) shall be given to all applicants for the position.

C. All vacancies shall be filled by appointments from the most qualified applicants and in accordance with applicable federal and state laws. Appointments shall be in writing and shall specify position, job description, starting pay rate, and whether full‑time, part‑time or temporary.

D. Physical Examinations. Each employee shall be required to meet the medical standards established by the Employer. These standards shall be reasonably related to the performance of the job duties of the employee. At the reasonable discretion of the Employer, each employee may be scheduled and must take a physical examination upon demand by the Employer. Said examination shall be by a doctor designated by the Employer, and shall be at the Employer’s expense.

E. Drug/Alcohol Testing. The Union acknowledges that the Employer maintains a drug and alcohol policy. The Union has not agreed to any specific policy that has been or may be adopted by the Employer and reserves all future bargaining rights and its right to grieve any discipline, pursuant to Articles 5 and 6.

F. Promotions.

(1) Promotions (or advancement from part‑time to full‑time status) shall be based on qualifications as determined by but not limited to job knowledge, job skill, job abilities, attendance and employment record.

Employees in the apprenticeship program shall be given due consideration for promotion when a vacancy occurs in a higher classification within the apprenticeship program.

(2) Nothing in paragraph F(l) above shall be construed to obstruct a bona fide affirmative action plan in accordance with government regulations.

(3) If the qualifications of two or more employees are found to be equal, seniority shall be used to make the final promotional decision.

G. Trial Period. The first 30 days after an employee is awarded a position in another job classification will be considered the “assimilation” period. No employee may be removed from that new position during the assimilation period in order that the employee may develop in his/her new position.

An employee who is awarded a position in another job classification and fails to demonstrate ability to perform the work required by the job, or fails to meet the accepted work standards for the job, may be returned to that employee’s former position at any time not later than six (6) months from the date the employee was awarded the new position. During the time that the employee is in the promoted position, the employee shall receive the appropriate rate of pay for that position. An employee who elects to return to his/her former position must do so within six (6) months from date he/she was awarded the new position to maintain classification seniority in the former position. An employee who elects to return after six (6) months can do so if a vacancy exists but he/she shall lose classification seniority in the former position.

H. An employee who is promoted to a higher classification (as defined in Article 8, paragraph G) shall receive the next higher rate of pay within the new classification above that employee’s rate at the time of the promotion and shall thereafter progress at the time increments of that classification.

I. Seniority Upon Return to the Bargaining Unit.

(1) An Employee who accepts employment with the Employer which is outside of the bargaining unit shall lose the classification seniority held at the date of moving from the bargaining unit.

(2) However, an employee who accepts employment with Employer that is outside of the bargaining unit may, for a period of up to six (6) months after accepting that position, elect to return to his/her or her former classification in the bargaining unit at the discretion of the Employer and provided that a position is available. In such a case, upon return to the bargaining unit position, the employee will regain his/her or her classification seniority as held on the date of moving from the bargaining unit, provided that the employee has continued to pay his/her or her Union dues or Agency shop equivalent in accordance with Article 3, Agency Shop, of this Agreement.

(3) An employee who elects to return to the bargaining unit after six (6) months may do so, at the discretion of Employer and provided a position is available. In such a case, employee would return at the entry level of the classification from which he/she left and the date of return would become his/her seniority date within the classification.

(4) An employee who accepts employment with a different Employer shall forfeit classification seniority. Upon return to employment with the Employer, a returning employee shall attain classification seniority in the same manner as all newly hired employees.

ARTICLE 11

SCHEDULING AND BREAKS

A. Schedule Changes. No change in the scheduled workweek or the scheduled starting times of the workday shall be effective unless that employee is notified at least seven (7) calendar days in advance. Such notice is not required for overtime work. Employer will attempt to give employee as much advance notice as is feasible for scheduled overtime work.

The seven (7) day advance notice requirement does not apply if:

a. the shift is moved forward or backward for a period of not more than two hours; and

b. 48 hours’ notice is given to the Employee; and

c. there has not been another change of the employee’s scheduled shift during the same workweek.

The seven day advance notice provision shall also not apply in cases of emergencies or unforeseen circumstances, cases where the Employer is unable to post a schedule seven (7) days in advance for a particular run, or to schedules for part‑time or temporary employees.

B. Scheduling of Transportation Run Picks and Maintenance and Administration Shift Picks. Employer agrees to hold run and shift picks at least twice per year for each department, unless Union and Employer mutually agree that a run or shift pick is not necessary for a particular department(s). For the Maintenance and Administrative Departments, the shift picks will be held in July and December each year.

The Employer will flag the runs at the time of the run pick that may or are likely to be impacted by special events. It is understood by both parties that there may be occasions when a run that was not flagged needs to be modified.

After a schedule is posted, the selection of assignments open for bid within that schedule shall be by seniority within job classification. In the absence of an employee, the Shop Steward may pick on behalf of the employee.

Employer shall notify Union prior to the preparation of each run pick schedule, maintenance and/or administration shift pick schedule. Employer shall provide a copy of new run cuts to the Union as early as practicable before implementation, but no less than seven calendar days prior to shift pick, to solicit feedback. Union may provide input and suggestions to Employer or designate appropriate members to do so. Employer will give due consideration to written input and suggestions in drafting these schedules and provide a brief written response to such input. Employer is not bound, however, to adopt any such input or suggestions in the drafting of these schedules.

Full-time train operators will be allowed to bid on runs to Qualcomm Stadium (or any other professional sports stadium subsequently built) only if Employer has scheduled eight-hour runs for a particular event at the stadium.

Employees who have been on a leave of absence for any reason for 90 days or more and are not scheduled to return to work by the date of a shift pick will not be permitted to bid an assignment. When such employee returns, he or she will be given an available assignment until the next shift pick. For the Transportation Department, when the affected employee returns, he or she will be given a relief assignment (full-time or part-time, depending on the employee’s status) until the next run picks. For all employees, at the next shift pick, such employee will be allowed to bid based on seniority pursuant to the normal procedures.

C. Meal Breaks. Bargaining unit employees in the maintenance and administration departments working a shift in excess of six (6) hours shall receive a meal period, without pay, of 30 minutes to be taken approximately midway through their shift, but not to exceed five (5) hours after the start of the shift. When an employee is required to work through a scheduled meal period, the employee has the option of taking the meal period later in the shift. If the employee elects not to take a later meal period or if a later meal period is not available due to the needs of the operation, the Employer will have the option of giving the employee either 30 minutes of pay at the overtime rate of pay or allowing the employee to leave work 45 minutes early without loss of pay.

D. Rest Breaks. Bargaining unit employees in the maintenance and administration departments shall receive a 10 minute break for rest and relaxation twice a day during an eight (8) hour shift at times designated by their supervisors, which insofar as practicable shall be in the middle of each work period. Employees working over four (4) but less than eight (8) hours per day shall receive one 10 minute rest break.

ARTICLE 12

OVERTIME

A. Distribution. All overtime within the same job classification shall be distributed as evenly as possible. This shall not preclude the Employer from using any qualified available employees when overtime becomes necessary or in the case of an emergency. The least senior available, qualified employee or employees shall be required to work overtime when assigned.

B. Definition. Work beyond eight (8) hours in one (1) workday or work of more than 40 hours in one workweek is overtime. For purposes of overtime compensation only, if the employee’s actual workday or week overlaps more than one pay period, the employee’s actual workday or week shall take precedence and the employee’s overtime pay shall be calculated based on the actual hours worked in the day or week; the actual hours worked during any one shift shall not be divided into different workdays or weeks.

Overtime is based on “time worked” and does not include sick time, vacations, holidays not worked, or other time not actually worked. Overtime must be approved in advance by the highest ranking Supervisor present in the employee’s department or the Controller. Failure to obtain prior approval may result in discipline to that employee being compensated for overtime worked.

C. Compensation. Paid compensation for overtime will be as follows:

(1) One and one‑half (1‑1/2) times the employee’s regular rate of pay for all hours worked in excess of eight (8) hours up to and including 12 hours in any one (1) workday, and for all hours worked in excess of 40 hours up to and including 48 hours in one (1) workweek; and

(2) Double the employee’s regular rate of pay for all hours worked in excess of 12 hours in any one workday or in excess of 48 hours in any one workweek.

D. (1) Call In or Call Back on Scheduled Workday. If any supervisor or manager telephones an employee at his/her residence to request he/she begin work earlier than that employee’s normal starting hour, the employee shall receive time and one‑half for such earlier hours, with a minimum of two (2) hours guaranteed. An employee called back to work after leaving Employer’s premises shall receive time and one‑half for the hours worked thereafter on that workday, with a minimum of two (2) hours guaranteed.

(2) Days Off Call Back. In the event an employee is unexpectedly called back to work on a scheduled day off, he/she shall be guaranteed a minimum of 2 hours at time and one‑half his/her regular rate. Time worked beyond the two hour minimum will be paid at overtime rates provided the employee has worked a total of 40 hours during the workweek.

E. Time Off After Overtime Work. If an employee is required to work overtime or if a shift change occurs, the employee shall have eight (8) hours off before commencing his/her or her next shift.

F. Holidays. Time worked on holidays shall be governed by Article 17, Holidays.

ARTICLE 13

PAY PERIOD AND DEDUCTIONS

A. Workweek. A workweek shall be defined as seven (7) consecutive days commencing at 12:00 a.m. Sunday and ending at 11:59:59 the following Saturday.

B. Pay Period. The pay period shall commence on Sunday and end Saturday 14 days later. Pay day shall be Friday following the end of the pay period; but if that Friday is a holiday hereunder, pay day shall be the workday before the holiday.

C. Payroll Deductions. No payroll deduction shall be made except as required by law or as mutually agreed upon by the Employer and employee.

ARTICLE 14

TEMPORARY ASSIGNMENT

An employee assigned temporarily for at least one (1) full workday to a higher paying classification, shall receive the lowest step scale for that classification which is above the current rate of pay for that employee. Entitlement to overtime for said work shall be as provided for in the higher classification, and all other benefits shall be as provided for in the employee’s original classification.

ARTICLE 15

VACATIONS

A. Scheduling. Annual vacation leave is a right; time at which vacation leave is taken is a privilege. Vacation leave shall be granted at times approved by Employer. An employee must take accrued vacation hours annually; however, an employee may request and be given pay in lieu of vacation in multiples of 8 hours. Upon implementation of the Ellipse software or equivalent software for payroll, employees who cash out unused sick or vacation time may receive such cash out via a separate check or have it included in their regular paycheck. All leave that is cashed out will be taxed at the supplemental rate as defined by the Internal Revenue Service. The amount of leave (vacation and sick) that may be sold back is limited to 100 hours during a calendar year on semiannual intervals, during December and June (not including the amount to reduce the sick leave balance to 400 by December 31, 2007).

An employee may take his/her annual vacation in increments of no less than eight (8) hours, subject to the Employer’s right to control the scheduling of vacations. No employee may take in one calendar year more vacation time than the amount that employee accrues for a one-year period. Employees must give Employer reasonable advance notice before using vacation time, and vacation leave must be approved in advance by Employer. The Employer shall determine the maximum number of employees to be on vacation on any given day.

To the extent the employees within a given job classification are eligible to bid for vacation schedules, such bidding shall be performed by seniority within the classification. Within each classification, the Employer shall determine the maximum number of employees to be on vacation at any given time.

B. Hours Worked to Qualify.

(1) To qualify for a full vacation with pay, a full‑time employee must work at least 12 months following his/her hire date.

(2) To qualify for a full vacation with pay, a part‑time employee must work at least 12 months following his/her hire date.

C. Amount.

(1) Every full‑time employee shall be entitled to paid vacation after continuous service as follows:

After 1 year – 80 hours/2 weeks (48 hours for a part-time employee)

After 5 years – 120 hours/3 weeks (72 hours for a part-time employee)

After 10 years – 160 hours/4 weeks (96 hours for a part-time employee)

After 20 years – 200 hours/5 weeks (120 hours for a part-time employee)

(2) Every part-time employee shall, after the same length of continuous service, be entitled to 60% of the vacation hours for a full‑time employee and may take accrued hours in equivalent weeks.

(3) The maximum vacation benefit that an employee may have on the books at any time is 240 hours (six weeks). For employees with more than 240 hours on the books as of the date of execution of this Amended Agreement, all such hours will be paid out. Once an employee accrues 240 hours of vacation pay on the books, any additional vacation pay earned beyond 240 hours will be paid out by the Employer at the end of each calendar year, or at the time of an employee’s termination, whichever comes first.

D. Vacation Pay Accrual. No employee shall accrue vacation pay or time during their probationary period. However, employees successfully passing the probationary period shall be deemed to have accrued vacation from their hire date. Employees leaving the employ of Employer prior to their anniversary date will receive a pro rata share of vacation pay representing their vacation time earned for that year.

E. Rate of Pay. An employee’s vacation rate of pay shall be the employee’s straight‑time hourly rate at the time the vacation is taken.

F. Posting of Vacated Vacation Slots. When vacations become permanently vacated in the Transportation Department, said vacations will be posted so that eligible employees may bid those vacations based on seniority. The successful bidder must have sufficient vacation accrued on the books.

G. Catastrophic Leave Pool. During the term of the agreement the Employer and the Union will investigate the development of a system whereby employees are allowed to donate vacation or sick leave to another employee who meets strict eligibility guidelines and controls.

ARTICLE 16

LEAVES OF ABSENCE

A. General Leaves of Absence.

(1) Leaves Are Without Pay. Except as otherwise provided in this Agreement, all leaves of absence for any reason shall be without pay.

(2) Notice to Employer. Employees seeking leave shall submit their request in writing to the Department Superintendent/Administrator or their designee as soon as reasonably possible prior to the requested date of leave, but no later than two (2) weeks prior to the requested date of leave, except in emergencies.

(3) Conditions of Discretion. Leave of absence without pay for an employee is a matter of administrative discretion. However, such discretion shall be exercised as fairly and uniformly as feasible. The Employer shall grant leave only if a severe personal emergency exists beyond the Employee’s control, which would require the Employee’s resignation if leave were not granted and that Employee’s past performance and dependability are such that the inconvenience of the Employee’s absence is thereby justified.

B. Sick Leave.

(1) Eligibility and Amount. Each full‑time employee on the first day following his/her first six (6) months of continuous employment shall be entitled to six (6) paid sick days when absent due to the employee’s personal illness resulting from either causes beyond that employee’s reasonable control, or enforced quarantine of that employee required by community health regulations, which sick leave shall be payable commencing the first day of any sick leave. The full‑time employee shall then earn and be entitled to one (1) paid sick day for each month worked thereafter. Employees should attempt to receive necessary medical and dental attention while on their own time. Employees may use sick time for medical or dental appointments in one (1) hour increments. There shall be credited against Employer’s obligation any amounts which are or shall be paid to an employee through a government or private self‑insured disability or industrial insurance or other such program or plan.

(2) Notice to Employer. As a condition of receiving sick leave pay, an employee shall notify Employer as soon as practical of the necessity for being absent from work and shall notify Employer of the expected date of return to work. When calling in sick, Transportation and Maintenance employees must attempt to talk to a live person. They must first attempt to call their designated Supervisor to notify Employer of their absence. In the event that the telephone is not answered or is busy, the employee shall leave a message on the voice mail system and must also contact Central Control. Employer may require reasonable proof of the need for such sick leave as a condition of its payment, and may require an examination by the Employer’s physician prior to return to work. In the case of sick leave in excess of one (1) week, employee shall give Employer as much notice as possible, preferably, 48 hour notice of expected return to work.

(3) Payment of Unused, Accumulated Sick Leave Pay. Sick leave accrual is capped at 400 hours. Employees who exceed 400 hours at the end of a calendar year will have excess hours cashed out (which will not count toward the 100 hour cash out limit). Employees who are over the 400 hour cap as of April 1, 2006 have until January 1, 2008 to get below the 400 hour cap. A minimum of one hundred and forty-four (144) hours of sick leave must remain after cash out is complete. All unused paid days of sick leave at the end of each six (6) month period shall be accumulated and available during successive six (6) month periods until used. Upon termination of employment and/or at semiannual intervals (during December and June), an employee may demand and receive in cash all or any part of unused sick leave beyond one hundred and forty-four (144) hours by making written request for same to his/her immediate supervisor who must forward the request to Administration for payment provided that the amount of leave (vacation and sick) sold back does not exceed 100 hours during a calendar year (not including the amount sold back to reduce the sick leave balance to 400 at the end of the year). Upon implementation of the Ellipse software or equivalent software for payroll, employees who cash out unused sick or vacation time may receive such cash out via a separate check or have it included in their regular paycheck. All leave that is cashed out will be taxed at the supplemental rate as defined by the Internal Revenue Service. Up to three (3) paid days of accrued and unused sick leave may be used for paternity leave.

C. Pregnancy Disability Leave.

(1) Eligibility. Pregnancy disability leave is provided when an employee is disabled due to pregnancy. This includes time off needed for prenatal care, severe morning sickness, doctor ordered bed rest, childbirth, recovery from childbirth and any related medical conditions.

(2) Amount of Leave Available. Up to four (4) months pregnancy disability leave is available before or after birth, at any time the employee is unable to work because she is disabled by pregnancy, childbirth or related medical conditions. The four months do not have to be taken at one (1) time.

(3) Notification. If possible, the employee shall notify Employer in writing at least 30 days in advance before pregnancy disability leave begins, and shall specify the date the leave will begin and the estimated duration of the leave. If 30 days notice is not possible, the employee shall provide written notice as soon as practical. The leave request must be supported by a medical certification of the need for leave. Prior to returning to work, the employee must provide a medical certification which verifies that she is able to perform her original job duties.

(4) Benefits During Leave. Employees on pregnancy disability leave shall be entitled to benefits in accordance with Article 16, Section F.

(5) Return to Work. Unless otherwise permitted by law, the Employer shall reinstate an employee returning from pregnancy disability leave to the same position she held at the time she went on leave. If the same position is no longer available, Employer shall offer a comparable position.

Employees who wish to request a pregnancy disability leave should contact the Human Resources Administrator for a leave of absence request form and further information regarding their rights and obligations under the pregnancy leave laws.

D. Funeral Leave. A full‑time or part‑time employee with six (6) months or more of continuous service is entitled to a paid leave of absence not to exceed three (3) workdays, to attend the funeral and other matters directly connected therewith of a member of the employee’s immediate family, provided that when possible, the employee shall notify Employer at least one (1) day in advance. Paid funeral leave shall not be limited to one (1) occurrence per year. Employer may require reasonable proof of need for funeral leave.

E. Military Leave.

(1) Eligibility. All regular full-time and part-time employees who are ordered to military duty or training shall be granted a military leave of absence. The cumulative absence may not exceed five (5) years, except where the law permits otherwise.

(2) Entitlement to Reemployment. To be entitled to reemployment, the employee must separate from military service under honorable conditions and return to work or apply for reemployment within the time required by law. Generally, for federal military service from one (1) to thirty (30) days, the employee must report back to work at the beginning of the first regularly scheduled workday that falls eight (8) hours after the employee returns home; for service of 31 to 180 days, the employee must apply for reemployment no later than 14 days after the completion of service; and for service of 181 days or more, the employee must apply for reemployment no later than 90 days after completion of service. When a service member is hospitalized due to a service connected injury, he/she or she will be given up to two (2) years to apply for reemployment.

(3) Reemployment Rights.

a. Reemployment rights. Will be in accordance with applicable law.

b. Conflicting claims. If there are conflicting reemployment claims, the person who left the position first has priority.

c. Changed circumstances. Employer will be excused from employing an otherwise eligible employee after military leave if the Employer’s circumstances have changed so much that reemployment would be impossible or unreasonable.

(4) Health Insurance Continuation. For federal military leaves, the employee may elect to continue health plan coverage for up to 18 months. The employee will be required to pay the full group rate premium for coverage.

(5) Use of Accrued Vacation. Employees may, but shall not be required to, use any accrued vacation during military leave.

(6) Other Benefits. Employees who return to work after federal military leave will be entitled to the seniority and all seniority based benefits they would have obtained, with reasonable certainty, had they remained continuously employed. For non-seniority based benefits, the employee will be entitled to the same benefits that are available for other leaves of absence.

(7) Paid Leave. A full or part-time employee with at least six (6) months of continuous service shall be entitled to receive compensation while on military leave for the annual two-week military reserve training. Eligible employees will receive the difference, if any, between the employee’s regular straight time rate of pay and the employee’s military pay during the period of service, not to exceed 20 paid working days. Employer may require reasonable proof of the employee’s eligibility for such paid leave. Employees on military leave for other reasons, including the monthly two‑day military reserve duty requirements, shall not be eligible for any compensation from Employer.

(8) Compliance with the law. Employer reserves the right to deviate from these provisions, as necessary, to comply with applicable state or federal laws.

F. Termination of Benefits and Seniority During Leaves of Absence.

(1) Employees on Leaves of Absence Not Caused by Industrial Injury

a. Health and dental insurance benefits for employees on family and medical leave shall continue in accordance with Article 16, Section G.

b. Employees on non-family and medical leave for a period of less than 31 days will continue to receive benefits. For a leave of absence lasting 31 days or longer, the Employer’s obligation to pay the premiums for health, dental and life insurance shall end after making one (1) monthly payment beyond the date the leave of absence began, after which the employee is obligated to pay the necessary premiums to maintain insurance coverage for that employee and his/her dependents.

Any employee on such a leave of absence over 30 days will stop his/her progression through the compensation schedule (step increases), and will lose one twelfth of his/her vacation for each month of work missed after the first 30 days of leave. Employees on leave of absence over 30 days are not entitled to jury duty pay during any period of absence beyond that time. Employees on leave of absence are not entitled to holiday pay for any holiday occurring during the leave.

Employees on any such leave of absence over 30 calendar days will, on the 31st day of leave of absence, stop accruing seniority for any purposes under this Agreement including, but not limited to, company and classification seniority for purposes of determining shifts, vacations and holidays. An employee on a leave of absence for any reason will retain the seniority previously earned up to the 30th day of the leave of absence and will retain the seniority they have accumulated prior to the leave when they return to work with the Employer. This paragraph does not apply to authorized leaves of absence for Union business.

(2) Employees on Leave of Absence Caused by On‑the‑Job Injury. Employees on leave of absence caused by on‑the‑job injury will continue to accrue company and classification seniority while on leave. For health, dental and life insurance premiums, the Employer shall continue to pay the Employer’s portion of the health care premium when an employee is on an approved worker’s compensation leave. It shall be the employee’s obligation to pay their portion of the necessary premiums in order to maintain insurance coverage for that employee and his/her dependents.

Employees on industrial leave of absence over 30 calendar days will, on the thirty-first day of leave of absence, stop accruing all benefits other than health, dental and life insurance. Any employee on such a leave of absence over 30 days will stop his/her progression through the compensation schedule, and will lose one‑twelfth of his/her vacation for each month of work missed after the first 30 days of leave. Such employees on leave of absence over 30 days are not entitled to jury duty pay during any period of absence beyond that time. Such employees on a leave of absence are not entitled to holiday pay for any holiday occurring during the leave.

G. Family and Medical Leave. Regular employees with more than one (1) year of employment with at least 1,250 hours of service in the previous 12 months may request an unpaid family and medical leave for the following purposes: (1) to care for a newborn, newly adopted or new foster child of the employee; (2) to care for the employee’s child, spouse or parent with a serious health condition; or (3) for the employee’s serious health condition.

Family and medical leaves are available for up to 12 workweeks in a 12-month period. The 12-month period will be calculated based on the 12-month period measured forward from the date of employee’s first use of leave.

Employees may take leave on an intermittent or reduced work schedule basis when the health care provider certifies that it is medically necessary for the care of their parent, child or spouse or because of their own serious health condition. For serious health conditions, intermittent or reduced work schedule leave may be taken in increments of time of one (1) hour or more. Intermittent leave is also available to care for a new child, but such leave must be taken in increments of two (2) weeks or more except on two occasions it may be less than that.

Eligible employees will continue to receive health and dental insurance benefits on the same terms and conditions as when working, for up to 12 workweeks in the designated 12-month period.

Employees who wish to request a family and medical leave should contact the Human Resources Administrator for a leave of absence request form and further information regarding their rights and obligations under the family and medical leave laws.

Nothing in this Section shall be construed in any way to abrogate the rights and obligations of both the Employer and the Employee under all applicable family and medical leave laws.

ARTICLE 17

HOLIDAYS

A. Days and Pay. Each full‑time employee shall receive eight (8) hours of pay, and each part‑time employee shall receive pay equal to 60% of the full‑time amount for each of the following holidays not worked:

New Year’s Day	Labor Day
Memorial Day	Thanksgiving Day
Independence Day	Christmas Day
Floating Holiday (in lieu of Columbus Day)	Floating Holiday (in lieu of Veteran’s Day)
Floating Holiday (in lieu of President’s Day)	Floating Holiday (in lieu of Martin Luther King Day)
Floating Holiday (in lieu of Cesar Chavez Day)

However, if an employee’s schedule requires him/her to work on one (1) of these holidays, employee shall, nevertheless, be required to work on that holiday at regular pay and shall arrange with Employer for a substitute day during which the employee shall not be required to work and shall receive regular pay for eight (8) hours if a full‑time employee. Full‑time employees shall have the option of taking eight (8) hours holiday pay in addition to pay for the time worked when they work a holiday. Part‑time employees shall be required to take holiday pay as provided above in addition to pay for the time worked.

B. During Vacation. A holiday falling within an employee’s vacation period entitles the employee to an additional paid day of vacation.

C. Weekends/Scheduled Day Off Holidays. A holiday falling on Sunday shall be observed and paid on the following Monday; a holiday falling on Saturday shall be observed and paid on the preceding Friday. For full-time employees, if a holiday falls on an employee’s scheduled day off, the employee is entitled to the option of either a paid day off in lieu of the holiday, or 8 hours of holiday pay.

D. Eligibility. To qualify for holiday pay, an employee must be employed by the Employer for at least 45 days before the holiday and shall work that employee’s last scheduled workday before and at least the first 50 percent of that employee’s scheduled workday after the holiday. An employee absent from work due to reasons such as illness, injury, or leave of absence on the days stipulated above shall not be eligible for holiday pay.

E. Rate of Pay for Unscheduled Work on a Holiday. If an employee is required to work and reports for work on the holiday which would not have been a normally scheduled day of work for that employee, in addition to the pay which the employee receives under paragraph A, the employee shall receive one and one‑half (1‑1/2) times that employee’s straight‑time hourly rate of pay for the hours worked that day, which shall in no event provide less than four (4) hours’ pay at the time and one‑half (1‑1/2) rate.

ARTICLE 18

ACCESS TO EMPLOYEE RECORDS

Each employee may inspect at reasonable times and at reasonable intervals that employee’s personnel file, provided sufficient advance notice is given to the Human Resources Administrator. At the employee’s request, the Company will attach a brief written statement by the employee to any written disciplinary action which the Company places in the employee’s personnel file.

All written reports, letters, statements, reprimands and evaluations reflecting upon an employee shall be placed in his/her personnel file and a copy supplied to the employee.

ARTICLE 19

JURY DUTY

When a regular full‑time employee is required to be in any court or courthouse for jury duty, Employer shall provide jury duty pay on the following basis:

A. Conditions. Employees must present official court certificates to Employer showing dates when called for jury duty, time served, and remuneration received.

B. Notice to Employer. The employee must present the jury duty notice to Employer as soon as possible, but no later than the employee’s next regularly scheduled workday. If Employer believes that the person is a key employee, an effort shall be made to obtain a release from jury duty.

C. Amount of Pay. If Employer does not obtain such release, and the employee is required to serve jury duty, Employer shall pay the difference in the employee’s wages between jury duty pay and the employee’s regular straight‑time hourly wage rate for hours of work missed. Pay for time spent on jury duty shall apply only on days which the employee affected would otherwise have worked his/her regularly scheduled shift.

D. Limit. Employer shall pay the above for only one (1) jury duty call period, not to exceed 22 paid days, during any two (2) year period. Employer and Union may mutually agree in writing to additional paid jury days.

E. Scheduling. If employee’s jury duty schedule will impose hardship on employee if employee is required to work his/her regular shift (e.g., employee serves on jury duty during the day and is working the night shift), Employer will make every effort to accommodate employee’s schedule by making a schedule change for the employee during the period of jury duty service.

ARTICLE 20

WITNESS DUTY

When a regular full‑time employee is requested by the Employer or its agents or attorneys to testify in any legal proceedings, the Employer shall pay the difference in the employee’s wages between any witness compensation received and the employee’s regular straight‑time hourly wage rate for hours of work necessarily missed by such proceedings. Employee must provide notice to Employer of his/her expected absence for such legal proceedings as soon as employee is notified by Employer’s agents or attorneys that employee will be needed to testify.

ARTICLE 21

HEALTH INSURANCE

A. Eligibility. Every full‑time employee shall be eligible for coverage under Employer’s group health insurance program on the first day of the month following completion of the first 180 days of regular employment.

Every part-time employee shall be eligible for coverage under Employer’s group health insurance program on the first day of the month following completion of twenty one (21) months of continuous service as a regular employee of Employer.

B. Premium Payment.

(1) Full-Time Employees. Eligible full-time employees who choose Bonus Option (1) under the Signing Bonus Option in Article 26 will have the Employer pay $320.55 per month from September 1, 2006 to December 31, 2006 (this represents the full cost of Kaiser “employee only” coverage. For eligible full-time employees who choose Signing Bonus Option (2) the Employer will contribute $217.50 per month for single coverage from September 1, 2006 to December 31, 2006. Thereafter, the Employer will contribute the following amounts each month during the indicated time frames:

Effective Date of Cap	Full-Time Employee Premium Cap
Signing Bonus Option (2) 9/1/2006 – 12/31/2006	$217.50
January 1, 2007	$290.00
January 1, 2008	$312.00
January 1, 2009	$342.00

If premiums exceed the maximum Employer contribution at any time during this Agreement or thereafter, Employer shall withhold so much of each employee’s wage payments as necessary to pay the excess premiums.

Part-Time Employees. Employer shall pay one-half (50%) of the entire premium for eligible part-time employees’ health insurance, provided the premium for said insurance does not exceed the caps set forth above for full-time employees. Every part-time employee shall be eligible for coverage under Employer’s health insurance program on the first day of the month following completion of twenty-one (21) months of continuous service with Employer.

(2) If premiums exceed the above caps, Employer shall pay one-half (50%) of the maximum Employer contribution for full-time employees, in the applicable year.

(3) Dependents. Employer shall not pay any premium for dependent coverage of part-time employees. For full-time employees, Employer shall pay a maximum amount per month towards the additional premium charged for dependent coverage of each full-time employee according to the following schedule:

Effective Date of Cap	Full-Time Employee Dependent Premium Cap
September 1, 2006	$163.00
January 1, 2007	$176.00
January 1, 2008	$190.00
January 1, 2009	$205.00

Employer shall only be obligated to make such dependent premium payments if employee pays the remaining amount for the dependent coverage. If premiums exceed the maximum Employer contribution for dependents at any time during this Agreement or thereafter, Employer shall withhold so much of each employee’s wage payments as necessary to pay the excess premiums.

C. Coverage. In order to obtain coverage, an eligible employee must sign the appropriate form indicating his/her desire to have coverage as well as a payroll deduction authorization allowing the Employer to make deductions as necessary for premium payments as set forth above. Coverage shall be uniform for each eligible employee and shall be described in a booklet to be distributed to each employee at hire date. Employees not enrolling within 30 days of their eligibility will not be allowed to join until the “open enrollment” period designated by the insurance carrier, if such an “open enrollment” period is offered.

D. Health Plan. As of July 1, 2002, all Employees will switch from the current Kaiser plan to the CalPERS health plan. Beginning in July 2002, SDTI will contribute $1 per month towards retiree healthcare (for those retirees who enroll in a CalPERS health plan), and the contribution for retirees will be increased annually by 5% of SDTI’s contribution for active employees until such time as the contributions are equal (which will not occur during the term of this Agreement).

E. Employee Assistance Program. This program will be available to all employees. However, if the utilization does not exceed 5% of the employee count from July 1, 2007 to June 30, 2008, the Employee Assistance Program will end on or after September 1, 2008.

ARTICLE 22

DENTAL INSURANCE

A. Eligibility. Every full‑time employee shall be eligible for coverage under Employer’s group dental insurance program on the first day of the month following completion of the 180-day probationary period.

Every part-time employee shall be eligible for coverage under Employer’s group dental insurance program on the first day of the month following completion of twenty one (21) months of continuous service with Employer.

B. Premium Payment.

(1) Full‑Time Employees. Employer shall pay the entire premium for eligible full‑time employees’ dental insurance provided the premium does not exceed $27.50 per month until December 31, 2009. If premiums exceed the maximum Employer contribution at any time during this Agreement or thereafter, Employer shall withhold so much of each employee’s wage payments as necessary to pay the excess premiums.

(2) Part-Time Employees. Employer shall pay one-half (50%) of the entire premium for eligible part-time employees’ dental insurance, provided the Employer contribution does not exceed $13.75 per month until December 31, 2009. If premiums exceed the maximum Employer contribution at any time during this Agreement or thereafter, Employer shall withhold so much of each employee’s wage payments as necessary to pay the excess premiums.

(3) Dependents. Employer shall not pay any premiums for dependent coverage for part-time employees. For full-time employees, Employer shall pay 50 percent of the premium for dependents of full-time employees, provided that the Employer’s contribution does not exceed $13.75 per month until December 31, 2009. Employer shall only be obligated to make such dependents’ premium payments if employee pays the remaining amount for the dependent coverage. If premiums exceed the maximum Employer contribution for dependents at any time during this Agreement or thereafter, Employer shall withhold so much of each employee’s wage payments as necessary to pay the excess premiums.

C. Coverage. In order to obtain coverage, an eligible employee must sign the appropriate form indicating his/her desire to have coverage, as well as a payroll deduction authorization allowing the Employer to make deductions as necessary for premium payments as set forth above. Coverage shall be uniform for each eligible employee and shall be described in a booklet to be distributed to each employee at hire date. Employees not enrolling within 30 days of their eligibility will not be allowed to join until the “open enrollment” period designated by the insurance carrier, if such an “open enrollment” period is offered.

ARTICLE 23

LIFE INSURANCE

A. Eligibility.

(1) Every full‑time employee shall be eligible for $50,000 of coverage under Employer’s group life insurance plan on the first day of the month following completion of the 180-day probationary period.

(2) Every part-time employee shall be eligible for $25,000 of coverage under Employer’s group life insurance plan following completion of two (2) years of continuous service with Employer.

B. Premium Payment.

(1) Employer shall pay the entire premium for full‑time employees’ life insurance coverage. No dependent coverage will be provided by the Employer.

(2) Employer shall pay the entire premium for part-time employees’ life insurance coverage. No dependent coverage will be provided by the Employer.

C. Coverage. Coverage shall be uniform for each eligible employee (except as set forth above) and shall be described in a booklet to be distributed to each employee when they become eligible for such insurance.

D. Supplemental Insurance. Employees will be eligible to purchase additional life insurance under the Employer’s supplemental life program with the full cost of the premiums to be paid by employees selecting such coverage.

ARTICLE 24

RETIREMENT

All full and part‑time employees shall participate in the Public Employees Retirement System (PERS) Plan developed for Employer. This plan provides retirement benefits and is in lieu of participation in the Social Security program. Coverage shall be described in a booklet to be distributed to each employee at hire date. The current retirement formula is the 2‑percent-at-age-55 formula.

Employer will not pay any portion of the employee’s seven percent (7%) required contribution to PERS.

Employees who retire from Employer with at least five (5) years of service at Employer will be provided with a lifetime transit saver pass for the employee and their spouse or registered domestic partner (as defined by the State of California) only.

ARTICLE 25

MILEAGE REIMBURSEMENT

A. Use of Personal Vehicle. An employee who is required to use that employee’s personal vehicle for official business of Employer at Employer’s express request shall be reimbursed for such use at a rate equal to the rate provided under Internal Revenue Code or regulations thereunder for a business deductible expense on a mileage basis.

B. Conditions for Reimbursement. No employee, however, shall be authorized to use a personal vehicle if an official vehicle is available. Further, that employee must provide proof that employee possesses a valid California driver’s license for the class of vehicle to be driven, and that the employee is currently covered by, and will continue to maintain in force during the time that the employee is driving such vehicle, an insurance policy with a coverage in the amount of no less than what is required by the Department of Motor Vehicles, State of California. However, any employee who must in the performance of their job duties operate a company vehicle and hold a California driver’s license must continue to possess an acceptable driving record as determined from time to time by applicable Employer insurance carriers.

ARTICLE 26

COMPENSATION

A. Pay Increase. For all classifications, straight time hourly rate will be increased

by:

2.5% effective September 1, 2006

2.75% effective January 1, 2007

3.25% effective April 15, 2008

3.5% effective April 1, 2009

B. Signing Bonus Option (may only select one)

(1) Within two pay periods of ratification of this agreement, all IBEW represented employees hired before August 1, 2006 will receive a $616.00 bonus (this is the gross amount of the bonus before required tax withholding) OR

(2) Any Employee who is covered by a SDTI health plan (primary only) as of August 1, 2006 may elect to receive a bonus in the amount of $1,028.16 (this is the gross amount of the bonus before required tax withholding).  If an employee chooses this option, SDTI will only contribute $217.50/month for that employee's health care for the months of September through December 2006.   (In other words, an employee choosing this option with a higher bonus will contribute more towards his/her health care for the remainder of this calendar year.)  Any employee wishing to exercise this option must submit their written request for this bonus to Human Resources by September 6, 2006.

C. Training Wage for New Train Operators. New Train Operators will be paid $10.81 per hour throughout the required training program for Train Operators retroactive to October 3, 2005. The Training wage will increase to $11.10 effective January 1, 2007, $11.46 effective January 1, 2008, $11.86 effective January 1, 2009. Train Operator Trainees will not operate alone in revenue service. Upon successfully completing and passing all requirements of the training program and receiving certification, new Train Operators will move into Step A of the wage progression for Train Operators.

D. Compensation Schedule. Except as specifically provided elsewhere herein, employees will be paid only for hours actually worked. The Compensation Schedule for straight time hourly rates shall be as follows, commencing September 1, 2006:

DEPARTMENT/POSITION

	Step A	Step B	Step C	Step D	Step E	Step F
TRANSPORTATION:
Train Operator	$16.99	$18.79	$19.71	$20.62	$21.50	$22.65
Train Operator (hired after 1/31/06)	16.99	17.85	18.66	19.67	20.65	22.65
Student Train Operator	10.81
MAINTENANCE:
Electromechanic	23.06	23.76	24.20	24.74	25.35
Lineman	19.65	20.41	21.14	21.90	22.65
Ass’t Lineman	14.38	15.69	17.02	18.34	19.65
Track Servps.	14.38	15.69	17.02	18.34	19.65	21.14
ADMINISTRATION:
Rev. Mtr. III	23.06	23.76	24.20	24.74	25.35
Rev. Mtr. II	19.65	20.41	21.14	21.90	22.65
Rev. Mtr. I	14.38	15.69	17.02	18.34	19.65
Rev. Proc./ Collector	12.95	13.63	14.44	15.00	15.69
Serviceperson	12.92	13.45	14.05	14.61	15.24
Storekeeper	12.92	13.45	14.05	14.95	16.29
Ridership Surveyor	12.92	13.45	14.05	14.61	15.24
Clerk/Typist	12.88	13.59	14.44	15.00	15.69
Data Entry	12.88	13.59	14.44	15.00	15.69

The Compensation Schedule for straight time hourly rates shall be as follows, commencing January 1, 2007:

DEPARTMENT/POSITION

	Step A	Step B	Step C	Step D	Step E	Step F
TRANSPORTATION:
Train Operator	$17.46	$19.31	$20.25	$21.19	$22.09	$23.27
Train Operator (hired after 1/31/06)	17.46	18.34	19.17	20.21	21.22	23.27
Student Train Operator	11.11
MAINTENANCE:
Electromechanic	23.69	24.41	24.87	25.42	26.05
Lineman	20.19	20.97	21.72	22.50	23.27
Ass’t Lineman	14.78	16.12	17.49	18.84	20.19
Track Servps.	14.78	16.12	17.49	18.84	20.19	21.72
ADMINISTRATION:
Rev. Mtr. III	23.69	24.41	24.87	25.42	26.05
Rev. Mtr. II	20.19	20.97	21.72	22.50	23.27
Rev. Mtr. I	14.78	16.12	17.49	18.84	20.19
Rev. Proc./ Collector	13.31	14.00	14.84	15.41	16.12
Serviceperson	13.28	13.82	14.44	15.01	15.66
Storekeeper	13.28	13.82	14.44	15.36	16.74
Ridership Surveyor	13.28	13.82	14.44	15.01	15.66
Clerk/Typist	13.23	13.96	14.84	15.41	16.12
Data Entry	13.23	13.96	14.84	15.41	16.12

The Compensation Schedule for straight time hourly rates shall be as follows, commencing April 15, 2008:

DEPARTMENT/POSITION

	Step A	Step B	Step C	Step D	Step E	Step F
TRANSPORTATION:
Train Operator	$18.03	$19.94	$20.91	$21.88	$22.81	$24.03
Train Operator (hired after 1/31/06)	18.03	18.94	19.79	20.87	21.91	24.03
Student Train Operator	11.47
MAINTENANCE:
Electromechanic	24.46	25.20	25.68	26.25	26.90
Lineman	20.85	21.65	22.43	23.23	24.03
Ass’t Lineman	15.26	16.64	18.06	19.45	20.85
Track Servps.	15.26	16.64	18.06	19.45	20.85	22.43
ADMINISTRATION:
Rev. Mtr. III	24.46	25.20	25.68	26.25	26.90
Rev. Mtr. II	20.85	21.65	22.43	23.23	24.03
Rev. Mtr. I	15.26	16.64	18.06	19.45	20.85
Rev. Proc./ Collector	13.74	14.46	15.32	15.91	16.64
Serviceperson	13.71	14.27	14.91	15.50	16.17
Storekeeper	13.71	14.27	14.91	15.86	17.28
Ridership Surveyor	13.71	14.27	14.91	15.50	16.17
Clerk/Typist	13.66	14.41	15.32	15.91	16.64
Data Entry	13.66	14.41	15.32	15.91	16.64

The Compensation Schedule for straight time hourly rates shall be as follows, commencing April 1, 2009:

DEPARTMENT/POSITION

	Step A	Step B	Step C	Step D	Step E	Step F
TRANSPORTATION:
Train Operator	$18.66	$20.64	$21.64	$22.65	$23.61	$24.87
Train Operator (hired after 1/31/06)	18.66	19.60	20.48	21.60	22.68	24.87
Student Train Operator	11.87
MAINTENANCE:
Electromechanic	25.32	26.08	26.58	27.17	27.84
Lineman	21.58	22.41	23.22	24.04	24.87
Ass’t Lineman	15.79	17.22	18.69	20.13	21.58
Track Servps.	15.79	17.22	18.69	20.13	21.58	23.22
ADMINISTRATION:
Rev. Mtr. III	25.32	26.08	26.58	27.17	27.84
Rev. Mtr. II	21.58	22.41	23.22	24.04	24.87
Rev. Mtr. I	15.79	17.22	18.69	20.13	21.58
Rev. Proc./Collector	14.22	14.97	15.86	16.47	17.22
Serviceperson	14.18	14.77	15.43	16.04	16.74
Storekeeper	14.19	14.77	15.43	16.42	17.88
Ridership Surveyor	14.19	14.77	15.43	16.04	16.74
Clerk/Typist	14.14	14.91	15.86	16.47	17.22
Data Entry	14.14	14.91	15.86	16.47	17.22

E. Tenure Increases. For all employees hired after February 1, 2006 (except Electromechanic, Lineman, Asst. Lineman and Maintainers I, II, and III) upon completion of twelve (12) months of continuous employment since the employee’s most recent control date (date of most recent employment or promotion), that employee shall receive a wage increase to the next higher step as shown on the Compensation Schedule, commencing on the first day of the first full pay period following that control date, unless the Vice President in that employee’s department determines that a wage increase is inappropriate due to significant documented performance deficiencies during the previous twelve (12) months. Employees hired on or before January 31, 2006 and Electromechanic, Lineman, Asst. Lineman and Maintainers I, II, and III will remain at six (6) month progressions through the Compensation Schedule, pursuant to the provisions above. The progression will also remain at six (6) month progressions through the Compensation Schedule, pursuant to the provisions above for Electromechanic, Lineman, Asst. Lineman and Maintainers I, II, and III.

F. Upon the Compensation Schedule becoming Effective. Immediately upon the Compensation Schedule becoming effective, each currently employed employee shall be placed at that step for his/her classification which is equal to his/her present rate, or to the next higher rate if there is no step exactly equal to his/her present rate. Any employee whose present rate exceeds the highest step rate in his/her classification on the Compensation Schedule becoming effective, shall not suffer a reduction of his/her current hourly rate because of the application of the Compensation Schedule.

G. Additional Compensation for Instructors. Train Operators who are selected by Employer to train student Train Operators will receive one (1) additional hour of pay for each full workday in which they serve as an instructor for student Train Operators. Employer has the sole discretion to choose which Train Operators will be selected as instructors.

H. Additional Compensation for Tamper Operation. Because of the special skill and experience required to run the Tamper, a Track Serviceperson will receive the Electromechanic rate of pay (at Step “C”) under the collective bargaining agreement only while operating the Tamper. If an employee assisting the Tamper Operator is also a certified Tamper Operator, they will receive the same rate of pay during Tamper operations only. The pay rate for this work will be at Step “C” only. Employees will not receive incremental increases to a higher step for Tamper work at six month intervals.

ARTICLE 27

NO STRIKE – NO LOCKOUT

A. Intent. It is the intent of the Employer and the Union to insure uninterrupted trolley service to the public during the life of this Agreement.

B. No Work Stoppage or Other Concerted Activity. During the term of this Agreement, neither the Union, its officers, agents, members, nor any employee will authorize, instigate, aid, participate in or engage in a strike, work stoppage, slowdown, boycott, picket line or any other interruption of the Employer’s operations.

C. No Lockout.

(1) During the term of this Agreement, Employer shall not engage in a lockout as a result of a labor dispute.

(2) A layoff, shutdown or curtailment of service for economic or business considerations is not to be construed or found to be a lockout.

ARTICLE 28

JOINT APPRENTICESHIP TRAINING COMMITTEE

The joint apprenticeship training committee shall be composed of an equal number of Employer and employee representatives. Employer will pay the costs associated with running the apprenticeship program and will have final decision making authority on all issues which arise before the committee.

ARTICLE 29

UNIFORMS

As long as the Employer requires uniforms to be worn by employees as a condition of employment, such uniforms shall be provided and maintained by Employer. Said uniforms and all other items furnished by the Employer (including, but not limited to, tools and equipment) must be returned by employee upon termination of employment. Union agrees on behalf of employees that Employer may deduct from employee’s last paycheck the replacement cost of uniforms or other items furnished by Employer in the event such items are not returned by employee.

ARTICLE 30

LABOR/MANAGEMENT COMMITTEE

The parties agree to form a “Labor/Management” committee to meet regularly in order to improve communication and resolve issues before they become grievances.

ARTICLE 31

DURATION, TERMINATION AND RENEWAL

The term of this Agreement is from January 1, 2006, to and including December 31, 2009; however, the provisions of this Agreement are not effective until August 25, 2006. This Agreement shall be in and remain in full force and effect for additional periods of one (1) year thereafter, with the proviso that should either party desire to change, modify or terminate this Agreement on the expiration date, notice in writing shall be served on the other party not later than 60 days prior to the expiration date, or the expiration date of any subsequent yearly period, that the party giving such notice desires to terminate the Agreement at the end of such yearly period, or to negotiate amendments or changes of the terms or provisions hereof as generally set forth in such notice, and negotiations shall begin not later than 45 days prior to the expiration date, or the expiration date of any subsequent yearly period.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.

SAN DIEGO TROLLEY, INC.

Dated: By:

Peter D. Tereschuck

President and General Manager

Dated: By:

Jeffrey M. Stumbo

Director of Human Resources and Labor

Relations

Dated: By:

Cliff Telfer

Chief Financial Officer

Dated: __________________ By:______________________________________

Mary Jane Greenland

Human Resources Administrator

LOCAL UNION 465, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

Dated: By:

James Craig Leatherman, President

Dated: By:

John C. Hunter, Business Manager and

Financial Secretary

Dated: By:

Marty Hunter

Assistant Business Manager

Dated: By:

Jerry Fecher, Business Representative

Dated: By:

Richard K. Cupples, Unit Chairman

Dated: By:

Allan H. Getter, Committee Member

Dated: By:

Don Estep, Committee Member

Dated: By:

Al Sandoval, Committee Member

Dated: By:

Ken Olsen, Committee Member