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									                         MAYOR & COUNCIL AGENDA COVER SHEET

MEETING DATE:
                                               TITLE:
June 15, 2009
                                               Resolution of the Mayor and City Council Adopting the
CALL TO PODIUM:                                Personnel Rules & Regulations of the City of Gaithersburg

Margaret Daily, Human
Resources Director
RESPONSIBLE STAFF:                             SUPPORTING BACKGROUND:
                                               Following the recent adoption of amendments to the City Charter
Margaret Daily, Human
                                               and Personnel Ordinance by the Mayor and City Council on May 4,
Resources Director                             2009 (to be effective July 1, 2009), Personnel Rules & Regulations
                                               governing the employees of the City were developed at the
                                               direction of the City Manager (set forth as Attachment A to the
                                               Resolution).
AGENDA ITEM:
(please check one)                             A draft of the City of Gaithersburg Personnel Rules & Regulations
                                               Manual was made available to City staff to review and submit
      Presentation                             comments, and public comments were accepted until 5 p.m. on
      Proclamation/Certificate                 June 8, 2009. The City Manager has considered all feedback
      Appointment                              received in preparation of the final document. The rules,
      Public Hearing                           regulations, policies, and procedures contained in the Manual
      Historic District
                                               replace and supersede all previous versions of the same.
      Consent Item
      Ordinance
 X    Resolution
                                               Staff recommends approval of the Resolution and Rules &
      Policy Discussion                        Regulations by the Mayor and City Council, to be effective on July
      Work Session Discussion Item             1, 2009, concurrent with the amended Personnel Ordinance and
      Other:                                   Fiscal Year 2010.




PUBLIC HEARING HISTORY:
(Please complete this section if agenda item
is a public hearing)


Introduced                     06/01/09
Advertised (for public         06/02/09
comment)

                                               DESIRED OUTCOME:
                                               Vote on Resolution
Hearing Date
Comments Accepted              06/08/09
Policy Discussion




                                                                                                                61
                                    RESOLUTION NO. __________


                         RESOLUTION OF THE MAYOR AND CITY COUNCIL
                         ADOPTING PERSONNEL RULES & REGULATIONS
                               OF THE CITY OF GAITHERSBURG


                WHEREAS, Chapter 2 of the Gaithersburg City Code, entitled "Administration,"
     provides for the establishment of regulations; and

                WHEREAS, Chapter 17 of the Gaithersburg City Code, entitled "Personnel,"
     provides that the City Manager shall have the authority to issue regulations to administer the
     provisions of the Chapter; and

               WHEREAS, Section 59 of the Gaithersburg City Charter provides that the Mayor and
     City Council have the power to adopt personnel regulations governing the employees of the City
     and Chapter 2, Section 2-10, provides that regulations require approval of the Gaithersburg City
     Council:

                 NOW, THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City
     of Gaithersburg, that the Personnel Rules and Regulations of the City of Gaithersburg, as set
     forth in Attachment A hereto, "City of Gaithersburg Personnel Rules & Regulations Manual," be
     and they hereby are approved and adopted, and that the rules, regulations, policies, and
     procedures contained therein shall replace and supersede all previous versions of the same.

                 AND BE IT FURTHER RESOLVED that said Personnel Rules & Regulations shall be
     effective July 1, 2009.

                ADOPTED by the City Council this 15th day of June, 2009.




                                                        __________________________________
                                                        SIDNEY A. KATZ, Mayor and
                                                        President of the Council




     THIS IS TO CERTIFY that the foregoing
     Resolution was adopted by the City Council,
     in public meeting assembled, on the 15th
     day of June, 2009.



     ______________________________________
     Angel L. Jones, City Manager




62
     CITY OF
  GAITHERSBURG


 PERSONNEL RULES &
REGULATIONS MANUAL

    Effective FY 2010



                        63
                        CITY OF GAITHERSBURG
                PERSONNEL RULES & REGULATIONS MANUAL

                                                    PREFACE
     The Personnel Rules & Regulations of the City of Gaithersburg are authorized under Chapter 17 of the
     City of Gaithersburg City Code entitled "Personnel." The Personnel Rules and Regulations were prepared
     by the City Manager and adopted by the Mayor and City Council effective FY 2010.

     This document is known as the City of Gaithersburg Personnel Rules & Regulations Manual and will be
     referred to throughout as the "Manual." The Manual is comprised of the current personnel rules,
     regulations, policies, procedures, and practices that uniformly regulate and govern employment with the
     City. Also identified in the Manual are benefit programs and other services available to employees. As a
     consolidated reference guide, it also assists the supervisor in standardizing the application of the City's
     personnel system and serves to protect and clarify the rights and responsibilities of employees.
     Interpretations of the Manual should be directed to the Human Resources Director to ensure a consistent
     application of policies and practices throughout the City.

     The employment laws, rules, and regulations of other agencies may from time to time come in conflict
     with provisions of the Manual and the following order or precedence shall be used to reconcile such
     conflicts as they arise:

             In the event of a conflict between a section, subsection, or provision of the Manual with any
             Federal, State, and/or local laws, acts, statutes, or ordinances, the latter shall govern.

             The Manual is a comprehensive document identifying the, personnel rules, regulations, policies,
             procedures, benefits and individual rights that govern employment with the City. The Manual
             also replaces and supersedes all previous versions of the same, including but not limited to, staff
             or personnel policy manuals, general orders, administrative procedures, handbooks, and past
             practices.

             Department rules provide for the implementation of sections or subsections of the Manual
             consistent with the operational activities of the Department and outlines procedures for those
             activities not covered by the Manual. If a conflict should occur between a Department rule and
             the Manual, the Manual shall be in full force and effect.

     Each section or subsection of the Manual represents an independent statement. If Federal, State, or
     local law voids any section or subsection of the Manual, it does not invalidate any other provision.

     Access to this Manual shall be provided to all employees electronically via the City of Gaithersburg
     website located at www.gaithersburgmd.gov. An employee may request a printed copy of the Manual
     from the Human Resources Department.

     This Manual does not constitute an employment contract or modify the employment at will doctrine; it
     may be amended or added to at any time by the City Manager as necessary in order to carry out the
     effective and efficient operation of the City. Employees will be notified when an update occurs, but only
     the on-line version of the Manual, located at www.gaithersburgmd.gov, will be kept current. Printed
     pages of the updated sections will not be distributed with each revision or change and the on-line edition




64
of the Manual shall be the official version and shall take precedence over any previously printed copy of
the Manual.

The rules, regulations, policies, procedures and practices set forth in this Manual apply to all City
employees except where otherwise specified herein. Employees in classified service (as defined in the
City Charter and Chapter 17 of the City Code) are subject to adopted merit system rules and regulations.
Employees in unclassified service (as defined in the City Charter and Chapter 17 of the City Code) are not
subject to adopted merit system rules and regulations; except that the City Manager, City Attorney,
Assistant City Manager(s), and the Heads of all Departments established by the City Manager, referred to
in this Manual as "unclassified management employees," are eligible for certain benefits and employment
rights as established in Chapter 17 of the City Code and set forth in this Manual. (See the City Charter
and Chapter 17 of the Gaithersburg City Code [Personnel Ordinance] for more information.)

It is the responsibility of all employees to abide by the rules, regulations, policies, procedures, and
practices regulating employment with the City and their applicable department. Violations of the rules,
regulations, policies, procedures, and practices set forth in this Manual and/or by the employee's
department may result in disciplinary action in accordance with Section 1400 of the Manual, Disciplinary
Actions.

The personnel rules, regulations, policies, procedures, and practices set forth in this Manual are effective
at the beginning of the first pay period of Fiscal Year 2010 unless otherwise specified in this Manual.




                                                                                                               65
                     CITY OF GAITHERSBURG
             PERSONNEL RULES & REGULATIONS MANUAL

                                   TABLE OF CONTENTS

     SECTION 100.   INTRODUCTION
                    101. Welcome
                    102. Brief History
                    103. City Mission, Vision & Guiding Principles
                         103.1      Mission
                         103.2      Vision
                         103.3      Guiding Principles
                    104. Strategic Directions Overview – FY2010
                    105. Organizational Structure
                         105.1      City Charter & Code
                         105.2      Government
                         105.3      Departments

     SECTION 200.   MANAGEMENT AUTHORITY & RESPONSIBILITY
                    201. Responsibility for Administration
                    202. City Manager’s Open Door Policy
                    203. Human Resources Department
                    204. Management and Supervision
                    205. Employees
                    206. Personnel Records Retention

     SECTION 300.   RECRUITMENT AND SELECTION
                    301. Diversity and Equal Employment Opportunity (EEO)
                    302. Recruitment
                    303. Job Announcements
                    304. Eligibility for Employment in the United States
                    305. Minimum Employment Age
                    306. Employment Applications
                    307. Selection
                    308. New Hires
                    309. Employment/Supervision of Relatives (Nepotism)
                         309.1        Temporary Exceptions
                         309.2        Hire, Transfer, Promotion, and Reassignment
                         309.3        City's Right to Transfer
                         309.4        Existing Employees
                         309.5        Appeals Procedure
                    310. Reemployment Opportunities

     SECTION 400.   CLASSIFICATION PLAN
                    401.  Introduction
                    402.  Class Specifications
                    403.  Use for Other Personnel Functions
                    404.  Classified/Unclassified Service




66
                      404.1       Unclassified Management Employee
               405.   Classification Categories – Exempt/Non-Exempt
               406.   Maintenance of the Classification Plan
               407.   New Classification/Reclassification
               408.   Part-Time Employees

SECTION 500.   WORK RULES
               501. Work Schedules
                    501.1      Established Business Hours
                    501.2      Hours of Work/Normal Work Schedule
                    501.3      Meal Break
                    501.4      Alternative Work Schedules
                    501.5      Temporary Schedule Adjustment
               502. Work Attire
                    502.1      Purpose
                    502.2      Applicability
                    502.3      Work Attire
                    502.4      Uniforms
                    502.5      Exceptions
                    502.6      Enforcement
               503. Severe Weather & Other Emergencies
               504. Parking at City Facilities
               505. Vehicle Use Policy
                    505.1      Purpose & Scope
                    505.2      Qualifications/Standards for Operating City Vehicles
                    505.3      Responsibilities
                    505.4      General Rules for City Vehicle Use
                    505.5      Take-Home Vehicles
                    505.6      City Vehicle Accidents/Reporting
                    505.7      Emergency Repair Service
                    505.8      Personal Vehicles
                    505.9      Exceptions
               506. Commuter Van Pool Policy
                    506.1      Exceptions
                    506.2      Policy
                    506.3      Eligibility
                    506.4      Operator Selection/Requirements
                    506.5      Operator Responsibilities
                    506.6      Accidents/Reporting
                    506.7      Emergency Repair Service
                    506.8      Rider Responsibilities
               507. Travel Policy
                    507.1      General
                    507.2      Travel Guidelines
                    507.3      Requesting Approval of Day Travel or Conference & Overnight
                               Travel
                    507.4      Payment of Travel & Conference Expenses (Payment to Vendors)
                    507.5      Conference Travel Advance
                    507.6      Departmental Travel Coordinators
               508. Credit Card Program
                    508.1      Scope
                    508.2      Policy
                    508.3      Oversight

SECTION 600.   COMPENSATION
               601. Compensation Plan




                                                                                              67
                           601.1      Introduction
                           601.2      Purpose
                           601.3      Standards for Development
                           601.4      Maintenance
                    602.   Fair Labor Standards Act
                    603.   Minimum Wage
                    604.   Salary Schedules
                           604.1      Range Schedule
                           604.2      Step Schedule
                           604.3      Lateral Hire Schedule (Police Department Only)
                    605.   Compensation of Part-Time Employees
                    606.   Starting Compensation
                    607.   General Wage/Pay for Performance Adjustments
                    608.   Payroll Policies
                           608.1      Hours of Work
                           608.2      Pay Periods & Pay Days
                           608.3      Direct Deposit
                           608.4      Payroll Documentation
                           608.5      Payroll Deductions
                           608.6      Overpayment or Debt Recovery
                    609.   Compensation Policies
                           609.1      Promotion
                           609.2      Reclassification
                           609.3      Transfer
                           609.4      Demotion
                           609.5      Acting Appointment
                           609.6      Overtime
                           609.7      Compensatory Time
                           609.8      Holiday Pay
                           609.9      On-Call Pay
                           609.10 Stand-By Pay
                           609.11 Court Time Pay
                           609.12 Shift Differential Pay
                           609.13 Field Training Officers Pay
                           609.14 Police Sergeants Roll Call Pay
                           609.15 Multilingual Skills
                           609.16 Clothing Allowance
                           609.17 Facility Closure & Emergency Pay
                           609.18 Awards for Outstanding Service
                    610.   Pyramiding of Hours Worked Prohibited

     SECTION 700.   LEAVE, ATTENDANCE AND HOLIDAYS
                    701.  Attendance and Punctuality
                    702.  Annual Leave
                          702.1     Annual Leave Accrual
                          702.2     Scheduling of Annual Leave
                          702.3     Illness/Injury Prior To/During Annual Leave
                          702.4     Payment for Unused Annual Leave
                          702.5     Donating Annual Leave
                    703.  Sick Leave
                    704.  Personal Leave
                    705.  Compensatory Leave
                          705.1     Accrual of Compensatory Leave
                          705.2     Scheduling of Compensatory Leave
                          705.3     Payment for Accrued Compensatory Leave
                    706.  Bereavement Leave




68
               707.   Holiday Leave
               708.   Military Leave
               709.   Jury Duty Leave
               710.   Leave of Absence Without Pay
               711.   Official Leave With Pay (Administrative Leave)
               712.   Workers’ Compensation
               713.   Family & Medical Leave Act (FMLA)
                      713.1      Policy
                      713.2      Procedures

SECTION 800.   EMPLOYMENT CHANGES
               801. Introduction
               802. Promotions
               803. Reclassification
               804. Transfers
               805. Demotion
               806. Acting Assignment
                    806.1      Procedures
                    806.2      Compensation
                    806.3      Return to Original Position
               807. Alternate Duty
               808. Change in Job Status – Part-Time Employees
               809. Employee Resignation
               810. Involuntary Separation(Reduction in Force)
               811. Dismissal, Suspension, or Demotion
               812. Death of Employee
                    812.1      Survivor Retirement Benefits
                    812.2      Life Insurance Death Benefits
                    812.3      Payment of Accrued Leave Upon Employee’s Death
                    812.4      Health Insurance for Survivors
               813. Return of City Uniforms & Equipment
               814. Exit Interview
               815. Disbursement of Final Paycheck

SECTION 900.   FRINGE BENEFITS
               901. Insurance Programs
                    901.1     Introduction
                    901.2     Medical & Dental Insurance
                    901.3     Long-Term Care Insurance (UNUM)
                    901.4     Long-Term Disability Insurance
                    901.5     Life Insurance
                    901.6     Unemployment Insurance
                    901.7     COBRA
               902. Retirement Plans
               903. Other Fringe Benefits
                    903.1     Flexible Spending Accounts (HFS Benefits)
                    903.2     Employee Assistance Program (APS Healthcare)
                    903.3     GFit Wellness Program
                    903.4     Housing Stipend Program
                    903.5     Personal Cell Phone Program
                    903.6     Uniforms
                    903.7     Direct Deposit
                    903.8     Credit Union
                    903.9     Employee Recreational & Leisure Opportunities
                    903.10 Microsoft Home Use Program
               904. Fringe Benefits for Mayor & City Council Members




                                                                                69
                     905.   Domestic Partner Benefits

     SECTION 1000.   RETIREMENT BENEFITS
                     1001. Retirement Criteria
                     1002. Medical, Dental, & Other Benefits Upon Retirement
                     1003. Medical Care Premiums
                     1004. Changes to Coverage Upon and After Retirement
                     1005. Dental Care
                     1006. Long-Term Care
                     1007. Life Insurance
                     1008. Annual Leave
                     1009. Sick Leave
                     1010. Miscellaneous Benefits
                     1011. Payment of Medical, Dental & Long-Term Care Premiums
                     1012. Social Security
                     1013. Retirement Plans
                           1013.1 401A Money Purchase Plan
                           1013.2 401A Money Purchase Supplemental Retirement Plan
                           1013.3 401K Profit Sharing Retirement Plan
                           1013.4 457 Deferred Compensation Retirement Plan
                           1013.5 Roth IRA
                     1014. Vesting Schedule
                     1015. Retirement Celebrations

     SECTION 1100.   EMPLOYEE CONDUCT
                     1101. City Identification & Security Standards
                           1101.1 Purpose
                           1101.2 Scope
                           1101.3 Exceptions
                           1101.4 Policy
                           1101.5 Procedure
                     1102. Discrimination & Harassment
                           1102.1 Purpose
                           1102.2 Policy
                           1102.3 Applicability
                           1102.4 Examples of Prohibited Conduct
                           1102.5 Responsibilities & Expectations
                           1102.6 Complaint Process
                           1102.7 Prohibition Against Retaliation
                           1102.8 False Accusations & Information
                           1102.9 Confidentiality
                           1102.10 Training
                     1103. Drug-Free Workplace – Drug & Alcohol Testing Procedures
                           1103.1 Purpose & Goal
                           1103.2 Applicability
                           1103.3 Prohibited Behavior
                           1103.4 Drug & Alcohol Testing
                           1103.5 Substances to be Tested For
                           1103.6 Reasons for Testing
                           1103.7 Testing Procedure – Employee Random & CDL
                           1103.8 Prohibitions for Alcohol
                           1103.9 Prohibitions for Controlled Substances/Drugs
                           1103.10 Alcohol Testing
                           1103.11 Drug Testing
                           1103.12 Confirmation of Test Results
                           1103.13 Consequences of a Confirmed Positive Test Result




70
                        1103.14 Appeals
                        1103.15 Mandatory Referral to an Approved Counseling Program
                        1103.16 Return to Duty & Follow-Up Testing
                        1103.17 Confidentiality of Test Results
                        1103.18 Supervisor Training
                        1103.19 Employee Education
                        1103.20 Prior Notice of Testing Policy
                        1103.21 Consent
                        1103.22 Drug Free Workplace Requirements
                1104.   Ethics
                1105.   Information Technology Resources Use
                        1105.1 Purpose/Overview
                        1105.2 Privacy and Confidentiality
                        1105.3 Regulations/Procedures
                        1105.4 Email Access on Mobile Communications Devices
                        1105.5 Closing of Accounts
                        1105.6 Violations
                1106.   Political Activity
                1107.   Secondary Employment
                1108.   Smoking in the Workplace

SECTION 1200.   PERFORMANCE EVALUATIONS
                1201. Purpose
                1202. Scope
                1203. Policy
                1204. Procedures
                1205. Grievance Procedures

SECTION 1300.   EMPLOYEE TRAINING & DEVELOPMENT
                1301. Purpose
                1302. Training & Development Objectives
                1303. Training & Development Responsibilities
                1304. Tuition Assistance
                      1304.1 Purpose
                      1304.2 Eligibility
                      1304.3 Funding Amount
                      1304.4 Criteria
                      1304.5 Course Completion/Submission of Grades
                      1304.6 Dropped Courses
                      1304.7 Procedures
                      1304.8 Steps for Payment
                1305. Certification Examinations

SECTION 1400.   DISCIPLINARY ACTIONS
                1401. Introduction
                1402. Purpose
                1403. Applicability
                1404. Cause for Disciplinary Action
                1405. Disciplinary Action Responsibilities
                1406. Investigation Procedures; Administrative Leave
                1407. Disciplinary Action Procedures
                1408. Hearing
                1409. Grievances & Appeals
                1410. Disciplinary Probation
                1411. Employee Assistance Program




                                                                                       71
     SECTION 1500.   WORK RELATED INJURIES
                     1501. Workers’ Compensation Insurance
                     1502. Reporting an On-the-Job Injury or Illness
                     1503. Supervisor Responsibilities
                     1504. Adjudication of Workers’ Compensation
                     1505. Medical Documentation
                     1506. Missed Time
                     1507. Return to Duty
                     1508. Alternate Duty
                     1509. Benefits While on a Workers’ Compensation Absence
                           1509.1 Medical Benefits
                           1509.2 Prescriptions
                     1510. Benefit Payments
                     1511. Employer Benefits
                     1512. Retirement Plans
                     1513. Violations

     SECTION 1600.   HEALTH & SAFETY
                     1601. Accidents on City Property
                     1602. Universal Safety Precautions
                     1603. Hepatitis B Vaccination
                           1603.1 Procedure
                     1604. Driver Safety
                     1605. Working with Hazardous Materials

     SECTION 1700.   GRIEVANCE PROCEDURES
                     1701. Grievance Policy
                     1702. Eligibility
                     1703. Retaliation Prohibited
                     1704. Discrimination & Harassment Complaints
                     1705. Grievable Issues
                     1706. Grievance Procedures
                     1707. Appeals
                     1708. Role of Human Resources in Grievance Process

     Appendix A      DEFINITIONS




72
                PERSONNEL RULES & REGULATIONS MANUAL

                                          SECTION 100
                                         INTRODUCTION

Section 101. Welcome
         Welcome to the City of Gaithersburg. As a City of Gaithersburg employee, you are part of a
diverse workforce of dedicated professionals. You can take a great deal of pride in being associated with
a hard-working organization that has a long-standing tradition of providing the very best in municipal
services. The work we do every day contributes to the outstanding quality of life enjoyed by the citizens
and businesses of the Gaithersburg community through the development and delivery of reliable and
efficient services.

         Always keep in mind that the citizens of the City of Gaithersburg are our ultimate "employer." As
local public officials and employees, we are a service provider for City residents and the public in general.
Customer service is our highest priority. Each public contact is an opportunity for excellent
performance: whether it is handling a complaint, a request for service, or an occasional thank-you.
Customer service is not limited to our citizens, local businesses and the general public, but includes the
interaction between all City employees, representatives of other government agencies, suppliers,
providers of services, and other outside businesses and organizations with whom we work. The primary
goal is always to provide all of our customers with quality service in a prompt and courteous manner.

        Each individual in our organization plays an important role in carrying out the City’s mission and
ensuring that our community thrives. You are encouraged to be actively involved in this process, to
engage your supervisor, department head, and City Manager, and to support the principles of continuous
improvement and teamwork that we believe are necessary to accomplish our goals and continued
success. By working cooperatively, we not only strive to get the job done but to create a challenging and
stimulating work environment as well.

         As an employee of the City of Gaithersburg, it is important for you to understand the policies that
affect your employment. This Manual is designed as a comprehensive resource to provide you with basic
rules and regulations, as well as procedure and policy information. If you have additional questions
regarding these or other City policies, please ask your supervisor. You may also contact the Department
of Human Resources for further clarification or questions.

        You were selected for your position not only because you possess the skills and abilities needed
to perform your job, but also because you have shown that you can provide the excellence in service that
the City expects and the citizens deserve. We hope that your employment with the City will be a happy,
challenging, and rewarding experience.

Section 102. Brief History
         Gaithersburg began in 1765 as a small agricultural settlement known as Log Town. In 1850, the
post office was named "Forest Oak." The town officially became Gaithersburg when it was incorporated
on April 5, 1878.

         The City is named after Benjamin Gaither who built a house in 1802 on the property where the
famous Forest Oak tree used to grow. The Forest Oak grew at the site for nearly 300 years before it was
felled during a storm in the summer of 1997. The City logo, an oak tree encircled by a green "G," reflects
the importance of trees in Gaithersburg's past and present. In 1996, the City added the phrase, "A
CHARACTER COUNTS! City" to the logo. Gaithersburg's flag is white with the City's logo centered on it in
green.

         The building that now houses City Hall was once the home of Edward P. Schwartz who, in 1913,
established a famous peony garden on land that stretched from the railroad station to Hutton Street.




                                                                                                                73
     The garden included 410 varieties of peonies from all over the world. Each spring the garden was a
     tourist attraction visited by admirers, including President Woodrow Wilson. The City purchased the estate
     in 1958 and renovated the house for municipal offices. The peony is the City flower.

             Gaithersburg has undergone significant changes in recent years. The City is now an urban area
     and a suburb of Washington, D.C. It has become a major regional location for high-technology
     companies while commercial agriculture is close to non-existent. The rolling fields of wheat are now
     roads, housing developments, and commercial enterprises, but at the same time a number of historic
     communities and traditions have been preserved. In the 21st century Gaithersburg continues to grow
     while retaining many of the qualities of a small town that cherishes its rich, diverse heritage.

     Section 103. City Mission, Vision & Guiding Principles

     103.1 Mission
              The Gaithersburg City government exists to provide quality, cost effective, priority community
     services for its citizens. We are a CHARACTER COUNTS! City that serves as a catalyst for the
     involvement of residents, businesses, and organizations to ensure that Gaithersburg is a great place to
     live, work, learn, and play.

     103.2 Vision
             Gaithersburg will set the standard for other cities as a "special" place where people want to live,
     work, learn, and play.

             Gaithersburg will be a City that:

                Lives by the Six Pillars of CHARACTER COUNTS! (trustworthiness, respect, responsibility,
                 fairness, caring and citizenship).
             •   Has retained the best qualities of a small town and respects its heritage while embracing the
                 opportunities that new technologies provide.
             •   Has involved and supportive citizens and businesses reflecting the diversity of the
                 community.
             •   Has a fiscally conservative, proactive government.
             •   Has safe, highly livable neighborhoods with a variety of housing types and styles served by
                 diverse transportation options.
             •   Has a desirable business environment and diverse employment options.
             •   Has excellent learning opportunities that meet the needs of the community.
             •   Has attractive and beautifully maintained parks and public places.
             •   Has citizens and institutions that value cultural diversity and seeks ways to promote
                 involvement from all cultural groups.
             •   Has many leisure time activities that meet the needs of the community.
             •   Has a high quality, family-friendly environment for people of all ages and cultures.
             •   Has citizens with a strong sense of community and individual responsibility.
             •   Has a natural environment that is protected, respected, and enhanced.
             •    Has strong partnerships to meet the needs of the community.
             •    Has a community that encourages individual health and wellness.

     103.3 Guiding Principles
           Gaithersburg is guided by the Six Pillars of CHARACTER COUNTS! as demonstrated by:

             CUSTOMER FOCUS:                      We actively pursue the identification of citizen needs through
                                                  citizen involvement to provide effective service to our
                                                  community with efficiency, accountability, and a caring
                                                  attitude.

             OPEN COMMUNICATION:                  We promote honest, open communication and easy access
                                                  to information.




74
        CREATIVITY:                           We strive to improve the quality and efficiency of City
                                              services through creative approaches and new innovative,
                                              and cost effective technologies.

        FISCAL RESPONSIBILITY:                We provide quality services, of the best value, to effectively
                                              meet the needs of our community while maintaining a pay-
                                              as-you-go philosophy.

        COOPERATION:                          We promote a spirit of fairness, trustworthiness, respect,
                                              and teamwork among our elected officials, City employees,
                                              residential and business communities, neighboring
                                              jurisdictions, and other governmental agencies.

        COMMITMENT OF EXCELLENCE:             We strive to achieve excellence in all we do.

        CONTINUOUS IMPROVEMENT:               We advocate good citizenship and support the freedom to
                                              actively pursue suggestions, ideas, and creative approaches,
                                              leading to continuous improvement in everything we do.

Section 104. Strategic Directions Overview – FY2010
          The City of Gaithersburg’s Strategic Directions establish an overall approach to achieving the
City’s vision:

        •   Ensure that all planning and development considers and responds to the City’s
            environmental, transportation, economic, social, and civic needs.
        •   Implement traffic and transportation planning and management strategies to improve the
            safety, structure and function of streets, transit, bikeways, and sidewalks within the City.
        •   Actively pursue Gaithersburg Olde Towne District Master Plan.
        •   Maintain and enhance priority City services.
        •   Implement programs that improve current housing stock and pursue development and
            redevelopment opportunities that provide an appropriate mix of housing types in inclusive
            communities.
        •   Maintain support of neighborhood Community Policing programs.
        •   Provide quality parks, diverse cultural, artistic, and recreational opportunities for all ages and
            interests.
        •   Implement programs and policies to protect, enhance, and monitor our natural and built
            environment to support a sustainable quality of life.
        •   Actively pursue economic development programs and strategies.
        •   Ensure effective and consistent communication activities and implement programs that
            promote citizen involvement.
        •   Maintain, enhance and improve the City’s buildings and real property assets.


Section 105. Organizational Structure

105.1 City Charter & Code
        The Charter is the City's fundamental law and constitution. It establishes the name of the
municipality and form of government, enumerates the powers of the City Council, provides for City
elections and preparation of a budget, and establishes other legislative and administrative powers and
procedures. The first Charter of Gaithersburg was granted by the General Assembly of Maryland on April
5, 1878.

         The City Code is the compilation of all the laws of the City. The City Charter and Code are
available for public review at City Hall and on the City's website, www.gaithersburgmd.gov.




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     105.2 Government
              Gaithersburg is primarily located in the 9th Election District of Montgomery County, the 17th
     Legislative District, and the 8th U.S. Congressional District of the State of Maryland.

             The City is administered by a Council-City Manager form of government, adopted by the City in
     1962 to provide a strong Council elected by the people to govern the community and a City Manager
     chosen by the City Council to implement their programs and run the day-to-day business of the City.
     This form of government combines the voice of the citizens through the Mayor and Council with the
     professional training of a Manager.

              City elections are held on the first Tuesday after the first Monday in November in odd numbered
     years. The Mayor is elected to a four-year term and presides over the City Council. The Mayor is a non-
     voting position. The City Council has five elected members and each serves a four-year term. Council
     members elect a Vice President each year and each Council member has a vote. There are formal
     Council sessions every other Monday, which are televised, where the Mayor and Council discuss issues
     and pass legislation. On the off Mondays, there are work sessions. These are informal meetings, open
     to the public, where the Mayor and Council discuss relevant City business. This is a time of research,
     problem solving, and informal decision-making. Agendas for all City Council meetings are available on
     the City website.

             The City Manager is the chief executive officer and administrative head of the City government,
     supervising the daily affairs of the City government and implementing the legislative policy. The City
     Manager is appointed by the Council for an indefinite term and is selected based solely upon
     management qualifications. The City Manager is responsible for keeping the City Council informed and
     making recommendations regarding City needs. The City Manager appoints all City employees, except in
     cases where he/she delegates the authority, and coordinates the programs of all departments. The
     Council also delegates duties to the City Manager.

             The Mayor and Council also rely on a number of citizen committees, boards, and commissions to
     serve as advisors for or regulate such issues as beautification, environmental affairs, economic
     development, planning, and many more. All City committee members are appointed by the Mayor and
     confirmed by the City Council.

             Gaithersburg is a fiscally responsible City that has not incurred any bond debts since 1964. It
     has a pay-as-you-go financial philosophy; taxes on citizens of the City have remained the same for more
     than 40 years.

     105.3 Departments
           The City of Gaithersburg has nine departments:

             Office of the City Manager
             The City Manager directs and coordinates the general administration of the City government,
     which includes preparation of the annual budget. The Office of the City Manager provides management
     and administrative support for operating departments, programs, and initiatives established by the Mayor
     and Council. The City Manager coordinates the enforcement and execution of laws and ordinances of the
     City.

               Community & Public Relations
               The Community & Public Relations Department coordinates outreach and engagement activities
     throughout the community. It is comprised of the Community Services Division and the Public
     Information Office. Collaboratively, this department connects residents with services, engages residents
     in multicultural, educational, and volunteer initiatives, communicates and promotes City events and
     activities, and fosters collaboration and involvement.




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        Finance & Administration
        The Finance & Administration Department activities and responsibilities include the receipt and
disbursement of City funds, financial reporting, investment of idle funds, control of fixed assets, collection
of taxes and assessments for special projects, and assisting all departments in securing supplies,
materials, equipment and services. Duties also include assisting the City Manager in preparation of the
annual budget.

         Human Resources
         The Human Resources Department is responsible for providing a centralized program of
personnel administration for more than 300 City employees, including conducting recruitment for job
openings, distribution of employment information, classification and compensation, employee benefits,
training, and employee relations. The Department ensures a safe and healthy work environment that
stimulates personal growth and professional development.

        Information Technology
        The Information Technology Departments provides for personnel and operating costs associated
with the City's computer systems, telephone systems, and related information systems which generally
benefit all City departments.

        Parks, Recreation & Culture
        The Parks, Recreation & Culture Department provides quality programs, facilities, and parks in
accordance with the priorities established in the City's Strategic Plan and the Parks, Recreation, and Open
Space Plan. These programs, which are available to persons of all ages and cultures, are designed to
enhance quality of life and encourage a sense of pride in the community, highlighting Gaithersburg as an
outstanding place to live, work, learn, and play.

         Planning & Code Administration
         The Planning & Code Administration Department oversees growth and orderly development
within the City, and enforces all ordinances and codes that govern residential and commercial
construction within the corporate limits.

        Police
        The Gaithersburg Police Department is a nationally-accredited law enforcement agency that
shares responsibility for services with the Montgomery County Police, providing coverage 24 hours a day,
365 days a year. The Department operates under a philosophy of community policing and utilizes a
problem-solving approach to address patterns of criminal and traffic issues.

         Public Works
         The Public Works Department provides a variety of services such as snow removal, street
sweeping, repair and maintenance of streets, sidewalks, and storm drains, beautification of the City's
streets, public buildings, and parks, recycling, city vehicle maintenance, and storm water management.
The Department is in charge of maintaining all City facilities including custodial services, utilities, repairs,
supervision of construction, and service contracts for all major equipment. Engineering functions include
reviews of storm water management, sediment control, storm drainage, paving, and site plans for new
developments. The department's engineering staff administers capital improvement projects (CIP) for
road and storm drain projects.




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                      PERSONNEL RULES & REGULATIONS MANUAL

                                 SECTION 200
                     MANAGEMENT AUTHORITY & RESPONSIBILITY

     Section 201. Responsibility for Administration
              The City Manager or designee shall have the responsibility for implementing the provisions of this
     Manual and the authority to issue regulations to administer provisions of this Manual. The City Manager
     shall also have the responsibility for establishing and modifying the classification and compensation plans
     and for the general supervision of the personnel system.

     Section 202. City Manager's Open Door Policy
               The City Manager is available to any employee seeking to discuss work-related problems or
     concerns in an open and informal manner. When an employee has made a good faith effort to resolve
     challenges with their supervisor and/or Department Head and believes that their concerns have not been
     adequately addressed, they have the right to meet with the City Manager without fear of reprisal or
     retaliation.

     Section 203. Human Resources Department
            The Human Resources Department shall:

             a. Have overall responsibility for establishing, maintaining, and coordinating personnel
     transactions and records management systems and procedures for all City employees consistent with
     state and federal laws.

           b. Advise and assist supervision/management on all City personnel transactions and records
     management systems and procedures related to personnel.

     Section 204. Management and Supervision
            Management and supervision shall:

             a. Establish goals and provide leadership to employees for carrying out assigned tasks.

            b. Initiate personnel transactions for their employees, using forms prescribed by the Human
     Resources Department.

             c.   Direct and supervise all operations, functions, and the work of the employees.

            d. Determine the place to report to work, to determine methods, processes, and manners of
     performing work.

             e. Establish and revise schedules of work.

             f.   Assign shifts, work days, hours of work, and work locations.

             g. Designate, assign, or reassign all work duties.

             h. Evaluate the skill, ability, efficiency, and general work performance of employees.

             i.   Take actions, as necessary, to carry out the mission of the City.

     Section 205. Employees
            Employees shall be provided all pertinent personnel transactions that may affect their
     employment.




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         Each employee is required to notify supervision and/or the Human Resources Department of any
changes which may affect his/her employment or benefit status. Examples of changes in personal status
include, but are not limited to:

        a.   Marital status.
        b.   Dependent status.
        c.   Legal name change.
        d.   Change of beneficiaries.
        e.   Physical limitation.
        f.   Additional education, training, or certification.
        g.   Revocation of license, permit certification, or other credentials required for the job.
        h.   Changes of address or telephone number.

Section 206. Personnel Records Retention
        Official personnel records will be retained for a period of time from date of receipt in compliance
with federal, state, and local laws, and as the City Manager shall determine necessary. The Human
Resources Department shall be the custodian of all official personnel records.




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                     PERSONNEL RULES & REGULATIONS MANUAL

                                        SECTION 300
                                 RECRUITMENT AND SELECTION

     Section 301. Diversity & Equal Employment Opportunity (EEO)
              The City of Gaithersburg values diversity in its workforce. As an equal opportunity employer, the
     City of Gaithersburg shall base all personnel actions on merit and ability and no person shall be
     discriminated against on the basis of race, color, sex, sexual orientation, gender identity, ancestry, age,
     religion, national origin, marital or parental status, disability, or serious medical condition in practices
     involving recruitment, selection, training, promotions, transfers, disciplinary action, and other terms and
     conditions of employment.

     Section 302. Recruitment
            When a vacancy occurs in the City, the applicable Department Head submits a written request to
     the Human Resources Director to initiate the recruitment process. The Human Resources Director shall
     then make a recommendation on the request and forward it to the City Manager for authorization to
     proceed. The Human Resources Department coordinates the employment process for all positions in the
     City.

     Section 303. Job Announcements
             The City encourages and supports the self-development and advancement of employees within
     the organization and it is the general policy that all vacancies will be announced and open to current
     employees either prior to or concurrently with external recruitment efforts. Job announcements open to
     current employees only are posted in all municipal facilities and offices, including the Human Resources
     Department, in the employee newsletter, and are circulated to employees via email.

              Job announcements open to current employees and external applicants are posted in the public
     areas of City facilities; in the employee newsletter; on the employment page of the City's website; in the
     classified section of area newspapers; in high school or college placement offices; in professional
     journals, regional or national newspapers, or recruiting publications, if the position is of a specialized
     nature; and in other applicable recruitment sources. The City also has a job line (301-330-0050 *2440)
     updated with current information as jobs become available.

              The announcement period for job vacancies shall be at least one week unless otherwise
     authorized by the Human Resources Director or Department Head. Job announcements shall include
     information on the position (e.g., title, salary range, duties, number of positions, minimum and preferred
     qualifications, application process, etc.) so applicants have sufficient information to be able to consider
     whether to apply for the position.

     Section 304. Eligibility for Employment in the United States
             Except for sworn police officer positions, United States citizenship is not required for City
     employment. All new employees of the City, however, must meet the requirements of the federal
     "Immigration Reform and Control Act," which requires individuals to verify their eligibility to work in the
     United States. All new employees must be able to provide documentation showing they are a citizen or
     national of the United States, an alien lawfully admitted for permanent residence, or an alien authorized
     to be employed in the United States.

                All new employees shall complete a Certification of Identification Form (Form I-9). Form I-9
     requires that original documents establishing identity and employment eligibility be shown at the time
     employees complete their new hire paperwork. Form I-9 lists acceptable documents for establishing
     eligibility to work in the United States on the form. In order to determine whether Form I-9
     documentation is valid, the City of Gaithersburg uses E-Verify, an Internet based system operated by the
     Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that
     allows participating employers to electronically verify the employment eligibility of their newly hired
     employees.



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Section 305. Minimum Employment Age
       The City follows State and Federal restrictions concerning child labor laws. Minors aged 14
through 17 with a work permit may be employed in non-hazardous positions; a minor under the age of
14 may not be employed or permitted to work for the City of Gaithersburg.

          To be considered for employment as a sworn police officer, a candidate must be at least 21 years
of age.

Section 306. Employment Applications

        a. Submission
            All applications for City employment shall be submitted to and processed by the Human
Resources Department on forms or by methods prescribed by the Human Resources Department. Unless
otherwise determined by the City Manager, resumes, on-line submissions, and employment applications
are accepted for advertised positions only. Applications must be postmarked or received in the City of
Gaithersburg Human Resources Department by 5 p.m. on the closing date of the position, if one is
indicated. If no closing date is indicated, the position is open until filled. Applicants may submit one
completed employment application for multiple positions by listing all the positions applied for in the
space provided on the application.

             All applicants will receive a confirmation email or letter acknowledging receipt of their
application and indicating they will be contacted if they are selected for an interview. Applicants selected
for an interview will be contacted by the hiring department within three to five weeks after the
application is submitted (or three to five weeks after the closing date, if a closing date is specified).
Those not selected for an interview receive no further contact after the confirmation email or letter when
their application is submitted.

             Although resumes and on-line submissions that meet posted deadlines will be accepted, a
City employment application form must be completed by selected job applicants prior to or at the time of
interview. Employment applications shall include complete information relating to experience, education,
training, and any other relevant qualifications for the vacant position. Applicants providing false
information may be removed from the selection process, have a conditional offer of employment revoked,
or be terminated if already employed.

        b. Review & Referral
             The Human Resources Department will refer all applications received in response to a job
posting to the hiring department within five business days of receipt of application. At the request of the
hiring department, the Human Resources Department will review and screen all applications received to
recommend the most qualified candidates for the vacancy, based on selection methods developed in
consultation with the hiring department.

          c. Retention
             When a job applicant is hired, the original employment application will be placed in the
employee's personnel file. The employment applications and/or resumes of unsuccessful applicants will
be filed separately and retained for a period of one year as required by law.

Section 307. Selection

         a. Examinations & Testing
            During the selection process, examinations, skill assessments, tests, screening interviews,
examples of work ability, and other pre-employment evaluations and selection tools appropriate to the
position and as determined by the Department Head in consultation with the Human Resources Director,
may be used to determine the qualifications of applications. Police personnel may have a psychological
evaluation, polygraph examination, and other tests and examinations as deemed appropriate.

         b. Candidate Interviews
             The hiring department will arrange all interviews, including times and accessible locations for
the interviews to take place. The interviews of final candidates for classified positions or unclassified
management positions will be conducted by an interview panel, It is preferable for one member of the


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     interview panel to be from outside the hiring department. Interviews of sworn police officer candidates
     will be conducted following the selection process established by the Police Department.

                 The interviews of final candidates will be consistent for all candidates and will cover subject
     matter related to determining the qualifications for the position being sought. Interview guidelines and
     sample interview questions are available from the Human Resources Department.

              Unless authorized by the City Manager, the City will not reimburse applicants for travel expenses,
     lost time, or any other expense related to the interview and selection process. However, when
     specifically authorized by the City Manager, all or a portion of the moving expenses incurred by new
     employees moving to the City to accept employment may be borne by the City. Allowable expenses may
     include interview transportation costs and transportation charges for moving household belongings.

             c.   Reference & Employment Verification
                  At the discretion of the Human Resources Director, either the hiring department or the
     Human Resources Department will be responsible for conducting appropriate reference and employment
     verification prior to making a conditional offer of employment. Final candidates for Police Officer
     positions will undergo a comprehensive background investigation.

             d. Conditional Offer of Employment
                  Successful candidates emerging from a selection process are offered the job verbally by a
     representative of the hiring department. Upon verbal agreement of the terms, candidates for classified
     positions or unclassified management positions will be sent a formal conditional offer of employment. The
     conditional offer letter will be prepared by the Human Resources Department for the hiring Department
     Head's signature.

                  Offers are conditional pending the results of the applicable background investigation,
     required medical examinations and drug screens, and/or psychological evaluations. Written offers shall
     specify the terms of employment (e.g., estimated start date, rate of pay) and any requirements to be
     satisfied (e.g., acquiring a license or certification or requiring courses of study, etc.). The estimated
     starting date of employment should be at least 10 to 15 days following the date that the conditional offer
     of employment is made in order to allow ample time for the results of the background investigation and
     medical examination to be received. So far as is practical, the starting date shall be established at the
     beginning of a regular pay period.

     Section 308. New Hires

              a. Employment Application Processing
                 After the candidate has verbally accepted the position or signed and returned the conditional
     offer of employment letter, if applicable, the supervisor completes the hiring information on the last page
     of the employment application, obtains the necessary approval signatures, and forwards the application
     and supporting documents (e.g., resume, certifications, signed offer letter, etc.) to the Human Resources
     Department. The hiring process cannot proceed until the completed application is submitted to the
     Human Resources Department.

             b. Background Investigations
                  Final candidates for all classified positions or unclassified management positions receiving a
     conditional offer of employment must still satisfy the applicable reference and prior employment history
     checks. Besides references, candidates may also have criminal history, driver's license, educational
     degree, or certification checks conducted. If positions involve the handling of public funds, information
     systems, confidentiality, security, or public safety, final candidates may also be subject to a credit check.
     Where credit checks are required, the City will comply with the rights and notifications requirements
     outlined in the federal "Fair Credit Reporting Act." Background investigations described in this section will
     be conducted by the Human Resources Department.

             c.  Medical Examinations
                 Final candidates for all classified positions or unclassified management positions are required
     to pass a physical examination conducted by a City-designated medical health provider before the
     appointment becomes final. These examinations are designed to determine the ability of candidates to


82
perform the essential job functions of the position and to ensure that they will not endanger the health or
safety of themselves, coworkers, or the general public. The type of examination required is based upon
the job classification and functions of the position (e.g., administration, public worker, police officer,
etc.). As prescribed under privacy provisions of the ADA, medical records of all employees are kept
strictly confidential and are maintained in a file separate from the official personnel files housed in the
Human Resources Department. Individual employee medical records are only available on a need-to-
know basis.

         d. Police Officer's Reimbursement Agreement
            The City incurs significant costs in connection with the hiring, training, and outfitting of police
officers. Therefore, to ensure that the City receives the services of the police officer for a minimum of
two years in order to recoup the investment of time and money expended in training and outfitting the
employee, newly-hired sworn police officers must execute a Reimbursement Agreement with the City at
the time of hire. The Reimbursement Agreement establishes the terms and conditions of employment
and a reimbursement schedule should the employee terminate his/her employment with the City prior to
the end of the two-year period. (A sample Agreement is attached to this Section.)

         e. Fingerprinting
             Prospective employees for some positions involving a high degree of trust will be
fingerprinted and the prints forwarded to the FBI and State of Maryland (CJIS) for checking against its
records. Any candidate who refuses to be fingerprinted shall be disqualified.

        f.    Probationary Period
              All new classified employees and unclassified management employees serve a formal
probationary period. The length of the period ranges from a minimum of 12 months for most new hires
to longer periods (24 months) for sworn police officers (as outlined in the police officer's Reimbursement
Agreement signed at the time of hire). The probationary period provides the employee with the
opportunity to learn more about the City and demonstrate that he/she has the necessary skills and
abilities to perform the duties of his/her position in a satisfactory manner. This is an important time for
both the City and the employee as it provides the employee an opportunity to evaluate the City in
relation to his/her needs and provides the City an opportunity to do the same.

            Probationary employees are eligible for all City benefits (except tuition assistance). A
probationary employee will accrue leave during his/her probationary period; however, a probationary
employee may not use accrued annual and/or sick leave during the first six months of his/her
probationary period, except with the prior approval of the Department Head and City Manager.
Probationary employees are not eligible for pay for performance increases during the probationary period.

             The employee will be formally evaluated periodically during the probationary period to ensure
satisfactory progress in meeting job requirements and proficiency in performing essential job functions,
and to identify areas of improvement and development (see Section 1200, Performance Evaluations). If
the employee's work and/or conduct for the position meet expectations and are deemed to be
satisfactory at the end of the probationary period, he/she will be afforded all the benefits of the City's
merit system and will be eligible for a pay for performance increase subject to budgetary guidelines (see
Section 600, Compensation). If the employee's performance and/or conduct do not meet appropriate
standards, the employee's Department Head may recommend that the employee's probationary status be
extended for an additional six months or that the employee be terminated.

             If an employee's probationary status is extended, the employee will be evaluated during the
six month period to determine if the employee is meeting expectations. If the employee's work and/or
conduct are deemed satisfactory at the end of the probationary period extension, he/she will be afforded
all the benefits of the City's merit system and eligible for a salary increase subject to budgetary guidelines
(see Section 600, Compensation). If the employee's performance and/or conduct do not meet the
appropriate standards, the Department Head may recommend to the City Manager that the employee be
terminated.

             Probationary employees may be terminated at any time during the probationary period with
or without cause at the sole discretion of the City. A termination during a probationary period is not
subject to the provisions of the City's Grievance Procedures Policy (Section 1700) nor the appeals process


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     described in the City's Personnel Ordinance unless the employee believes he/she has been discriminated
     against in the course of his/her employment with the City on the basis of race, color, sex, sexual
     orientation, gender identity, ancestry, age, religion, national origin, marital or parental status, disability,
     or serious medical condition.

              g. Orientation & Enrollments
                  The Human Resources Department conducts an orientation for all new classified employees
     and unclassified management employees on or prior to their first day of employment. During the
     orientation process, the employee completes his/her enrollment forms, receives an explanation of benefit
     programs, policies, and procedures, and obtains any other applicable information. All new employees will
     be advised how to access and acknowledge receipt of notification of this Manual.

                 Photo identification (e.g., driver's license, military ID, etc.), social security card, and/or other
     documents to verify the individual's eligibility to work in the United States must be available to be
     photocopied and verified during the orientation. The employee's City identification card will be prepared
     during the orientation.

                   On the employee's first day of employment, the Department to which the new employee is
     assigned will provide an orientation regarding operations, policies, procedures, and safety practices
     specific to the Department.

            h. Employee Number Assigned
                 Each employee is assigned an employee identification number when the employee is
     processed into the payroll system. The employee will use this number when requested on time and
     attendance records and other personnel documents.

             i.  Access to Personnel File
                 The Human Resources Department maintains the official City personnel files on all
     employees. Employees may review their personnel files upon request. An employee's supervisor or
     Department Head may also review the employee's file; and another Department Head or his/her designee
     may view the employee's personnel file if the employee is being considered for transfer or promotion to
     that department. Personnel files may not be removed from the Human Resources Department office.

             j. Emergency Contact Information
                A medical emergency can happen while the employee is at work; and for this reason all
     employees are requested to complete an Emergency Notification Form at the time of hire and to update
     the Form when changes occur or at least once annually. This sheet will provide critical information on
     whom to contact if the employee becomes ill or is injured while at work.

           A copy of the Emergency Notification Form is kept in the employee's Department and in the
     Human Resources Department.

     Section 309. Employment/Supervision of Relatives (Nepotism)
              The City employs uniform practices regarding the employment of relatives of employees of the
     City of Gaithersburg to prevent the appearance of partiality in the hiring, promotion, demotion,
     reassignment, and transfer of employees, thereby limiting the negative impact on morale and the
     appearance of impropriety. This policy applies to all employees of the City.

              It is the goal of the City to avoid the appearance of favoritism that may result from employment
     relationships with relatives and to minimize the potential for disruption or limitations in the workplace that
     may result from employment relationships with relatives. Therefore, it is the policy of the City that no
     City employee may do any of the following:

                 a. Participate in the process of hiring or reassigning a relative (including serving on
     interview panels while the relative is still being considered for employment).

                  b. Hire or cause to be hired a relative.




84
            c. Accept employment or reassignment when doing so would place him/her under the
supervision of a relative.

            d. Supervise a relative.

            e. Reassign or cause to be reassigned a relative.

            f.   Hear or investigate a grievance or an appeal from a relative.

309.1 Temporary Exceptions
         An employee may temporarily supervise a relative in the following situations:

             a. Two employees in a supervisory role, or an employee who is employed in a position
before a relative assumed a supervisory position over the relative, may, on a temporary transitional basis,
retain employment in their existing positions until such time as the City is able to reasonably transfer one
of the employees on a lateral basis to another position outside the supervision of the relative. The City
retains the right to decide which employee is to be involuntarily transferred on a lateral basis, taking into
consideration the needs of the organization.

             b. An employee is temporarily acting in the capacity of another position, temporarily filling a
vacant position, or is temporarily assigned to a special program or project. The Department Head or
his/her designee will closely monitor the situation to avoid any adverse impact. Upon conclusion of the
temporary assignment, the employee shall return to his/her previous duties to ensure compliance with
this policy as described above.

                During the temporary exception period, measures should be put into place by the
Department Head or his/her designee to ensure that the relative does not evaluate the employee's
performance, recommend changes in pay, or take any other personnel actions that could give rise to a
perception of favoritism resulting from nepotism. Such actions may include having another manager
review and approve such actions.

309.2 Hire, Transfer, Promotion, and Reassignment
             The City reserves the right to refuse to hire, promote, transfer, or otherwise reassign a
person to a position, shift, or other condition of employment in the same department, division, or work
area, wherein his/her relationship to a relative has the potential for creating adverse impact on the
supervision, safety, security, or morale of the workforce, involves a potential conflict of interest, places
limitations on other employee's opportunity for promotion within the department, or gives rise to a
reasonably foreseeable risk of nepotism in the future. The Department Head makes the determination of
whether adverse impact has the potential to exist or not and must be able to articulate his/her reason for
the decision.

309.3 City's Right to Transfer
         Notwithstanding any of the above, the City reserves the ultimate right to involuntarily transfer an
employee on a lateral basis, to a position of similar duties at such time as the relationship between two
or more relatives has the potential for creating adverse impact on the supervision, safety, security, or
morale of the workforce, or involves a potential conflict of interest, and such a position becomes
available.

         The implementation of the City's Right to Transfer requires a case-by-case consideration and
individualized assessment of the particular work situation for existing employees. Based upon
relationships/marital status existing prior to Fiscal Year 2010, or which are created after an employee is
hired by the City, the City Manager shall determine whether the continuing employment or promotion of
an employee has the potential for creating adverse impact on supervision, safety, security, morale, or
involves potential conflicts of interest. If the City Manager determines that any of the situations
described above apply, the City Manager for that reason may impose the Right to Transfer.

309.4 Existing Employees
       Although hiring of relatives as defined above is prohibited, the City recognizes that prior to Fiscal
Year 2010, there are situations where relatives have already commenced employment with the City and


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     that present employees may become related in the future. In such cases, no employee shall have direct
     supervision or control over, initiate, or participate in the following personnel actions which include, but
     are not limited to, appointment, transfer, promotion, demotion, layoff, suspension, termination, recall,
     work assignments, performance evaluations, timekeeping, or recommend changes in salary, or any other
     personnel action that may affect another City employee who is a relative as specified above.

              As to existing employees, and those existing employees who become related in the future, the
     City retains the right:

            a.. To refuse to place an employee in a relationship under the direct supervision of a relative
     where such has the potential of creating adverse impact on supervision, safety, security, or morale.

              b. To refuse to place relatives in the same department, division, or facility where such has the
     potential for creating adverse impact on supervision, safety, security, or morale, or involves potential
     conflicts of interest.

              c. To transfer/reassign the employment of an employee whose post employment
     relationships/marital status is indicative of the adverse impacts described above.

             d. To accept a resignation or terminate the employee should the employee refuse the transfer
     or reassignment or if no transfer or reassignment is available.

     309.5 Appeals Procedure
                 Any classified employee, as well as any unclassified management employee hired or
     appointed prior to June 30, 2009, who is terminated in accordance with this policy shall be entitled to
     appeal the decision to the Personnel Review Board in accordance with procedures set forth in Chapter 17,
     Section 17-9 of the City Code, Personnel Ordinance.

     Section 310. Reemployment Opportunities
             Former employees who have terminated or retired from employment with the City in good
     standing may be eligible to be rehired if they demonstrate the ability to perform the essential job
     functions.

             Applications from former employees will be processed using the same procedures and standards
     that govern all other employment applications and the former employee may be required to meet the
     same conditions of employment that would be expected of any other candidate (e.g., background
     investigation, medical examination, etc.) depending on the length of time the individual was not in City
     service. Employees who are rehired must update or complete new personnel forms as required by the
     Human Resources Department. Former employees who are rehired as classified employees or
     unclassified management employees are required to serve a probationary period as set forth in this
     Manual.

               A former classified employee or unclassified management employee who is rehired by the City as
     a classified employee or unclassified management employee shall be credited with prior service,
     excluding the time not in City service. Employment as a part-time or part-time intern employee is not
     eligible to be credited toward prior service.

             A classified employee or unclassified management employee rehired in FY2010 or thereafter shall
     accrue annual leave at the applicable rate based on the new hire date.




86
                 PERSONNEL RULES & REGULATIONS MANUAL

                                       SECTION 400
                                   CLASSIFICATION PLAN

Section 401. Introduction
         Each authorized position within the City has clearly assigned job functions. Candidates for these
positions must meet the minimum qualifications of the job as to education, experience, knowledge, skill,
and ability. All positions are assigned a specific classification, which may be singular in nature covering
only one position or representing multiple positions. Employees of the same classification share the same
title, minimum qualifications, and similar kinds of work activities, but may be assigned to different
departments, divisions, or work units. Thus, the tasks of individual employees within the same
classification can differ in response to the different operational needs of each department.

Section 402. Class Specifications
         The Classification Plan of the City represents a complete inventory of all positions within the
organization and the class to which they are allocated. A job coding system is used to designate each
class in the system. Each class title has a corresponding class specification that includes the Fair Labor
Standards Act (FLSA) status, position summary, pay grade, essential duties and responsibilities, minimum
and special qualifications, examples of typical duties performed, physical demands, and work conditions.
The class specification describes the minimum qualifications required by an employee assigned to that
class and not necessarily the actual qualifications of a current or prospective employee. Employees may
obtain copies of current class specifications on the City's website or in the Human Resources Department.

          The City Manager will classify all those positions in the City service which are required by Section
60 of the City Charter to be classified. The City reserves the right to modify class specifications and class
titles at any time to reflect changes in job activity. If such changes occur, it does not necessarily imply a
change in classification, or in the classification's placement in a salary schedule.

        When the City Council authorizes additional positions, the City Manager or his/her designee will
study the duties and responsibilities of the new position as it is created; and the position will either be
placed into an existing classification or, if there is not a sufficient match, a new classification will be
developed by the City Manager or his/her designee.

Section 403. Use for Other Personnel Functions
        The Classification Plan, aside from being a formal registry of positions, provides a basis for
several personnel functions. They include:

        a. Preparing recruitment advertisements that target specific segments of the labor market.

        b. Grouping of classes in the Compensation Plan with similar market values.

         c. Identifying areas of similar knowledge, skills, and abilities in providing developmental and/or
training programs.

       d. Providing class specifications for use in establishing work standards and evaluating employee
performance.

        e. Establishing standard position terminology for staffing and budgetary purposes.

Section 404. Classified/Unclassified Service
       The City Charter and the Personnel Ordinance (Chapter 17 of the City Code) establish the
composition of the classified and unclassified service.




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     404.1 Unclassified Management Employee
            For the purposes of this Manual, the City Manager, City Attorney, Assistant City Managers, and
     the Heads of all Departments established by the City Manager are referred to as unclassified
     management employees.

             The City Manager and City Attorney serve at the pleasure of the Mayor and City Council. All
     other unclassified management employees hired or appointed after June 30, 2009, serve at the pleasure
     of the City Manager.

     Section 405. Classification Categories – Exempt/Non-Exempt
              The Fair Labor Standards Act (FLSA) specifies eligibility criteria for overtime compensation.
     Certain positions, as defined under the FLSA, are exempt from overtime compensation regardless of the
     number of hours worked in a week. The class specification for each position indicates whether the
     position is exempt or non-exempt from the FLSA. The Personnel Ordinance (Chapter 17 of the City Code)
     establishes the definition of exempt and non-exempt employees.

     Section 406. Maintenance of the Classification Plan
              Changes can and do occur in the duties, work activity, or functions of positions. Department
     Heads are responsible to report any substantial changes in the permanent duties or responsibilities of a
     classified position to the Human Resources Director. These changes will be reviewed for possible
     modifications to the class specification.

              The City Manager, as part of the annual budgetary process, will periodically review the
     classification of all positions and, as a result, may combine existing classes or establish new ones, or
     reclassify positions as the needs of the City may require.

     Section 407. New Classification/Reclassification
               Changes in department operations and service delivery may result in the need for a new class of
     position(s) to perform significantly different duties and responsibilities not reflected in the current class of
     positions. In other situations, the difficulty or complexity of work, the level of responsibility, or the
     knowledge, skills and abilities required for a position or a class of positions may change so that a
     significant amount of the daily work no longer reflects the duties contained in the current class
     specification for an employee's classification. If it is believed that either of these situations exists, a new
     classification or reclassification request may be made.

              a. Requests
                 A request for a new classification or reclassification of a position may be initiated by an
     incumbent employee, a position supervisor, a Department Head, or the Human Resources Department
     during the annual budget process. Requests must be made through completion of a Position Description
     Questionnaire (PDQ) by the incumbent employee (or by the position supervisor if the position is vacant).
     After review of the PDQ, the Management Review Form must be completed by the position supervisor
     and Department Head and must be reviewed and signed by the City Manager.

                  Requests will be submitted to Human Resources for analysis, evaluation, and
     recommendation. When deemed appropriate by the City Manager, the Human Resources Director may
     submit the request to a human resources management consultant for analysis, evaluation, and
     recommendation. The City Manager will review the recommendation provided and will have final
     authority for approval or denial of the new classification or reclassification.

                  Reclassifications shall not be requested as a method of awarding an employee a salary
     increase.

              b. Approvals
                   If a new classification/reclassification request is approved, it will be effective at the beginning
     of the first pay period in the next fiscal year, except as otherwise directed by the City Manager. If a new




88
job title is assigned as part of the process, the new job title will be effective at the same time. An
employee must meet the minimum qualifications of the new classification in order to be reclassified.

        c.   Reconsideration
             If a new classification/reclassification request is not approved, the individual who made the
request may submit a Request for Reconsideration. The reconsideration process allows the individual a
final opportunity to provide additional information or data that was not included in the original submission
that he/she believes is pertinent to supporting the reconsideration request.

              The Reconsideration Request must be made through completion of a Request for
Reconsideration Form. The position supervisor and Department Head must review the reconsideration
request and indicate agreement or disagreement. Reconsideration requests will be submitted to Human
Resources for analysis, evaluation, and recommendation. When deemed appropriate by the City
Manager, the Human Resources Director may submit the reconsideration request to a human resources
management consultant for analysis, evaluation, and recommendation. The City Manager will review the
recommendation provided and will have final authority for approval or denial of the new classification or
reclassification.

         d. City Manager Authority
            The City Manager may direct the Human Resources Director to reclassify a position class at
any time throughout the fiscal year as the needs of the City may require. Such direction must be in
writing and must state the reasons the reclassification is warranted.

Section 408. Part-Time Employees
         Part-time employees are non-exempt, unclassified, and paid for work on an hourly basis. Part-
time employees have no right to continued employment or expectation of any coverage of benefits or
change in level of compensation. Part-time employees may be terminated with or without cause at the
City's discretion.

         a. Work Hours & Schedule
             Part-time and part-time intern employees shall not work more than 1300 total hours in a
fiscal year unless approved by the City Manager in advance. The employee's work hours and work
schedule will be established by his/her supervisor or Department Head.

        b. Change in Job Status
            Requests to change a part-time or part-time intern employee's job status will be considered
during the annual budget process.

        c.   Termination; Disciplinary Action
             Part-time or part-time intern employees are employed solely at the discretion of the City of
Gaithersburg and employment shall only continue for such time as the City of Gaithersburg is in need of,
or desirous of, the services of the employee. The employee may be terminated at any time at the
discretion of the City of Gaithersburg.

        d. Benefits
            Part-time employees and part-time intern employees are not eligible for benefits and do not
earn leave.




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                     PERSONNEL RULES & REGULATIONS MANUAL

                                               SECTION 500
                                               WORK RULES

     Section 501. Work Schedules
            The Work Schedule policy establishes guidelines for work schedules for all classified employees
     and unclassified management employees of the City of Gaithersburg.

     501.1 Established Business Hours
               The City of Gaithersburg's established business hours of operation are 8 a.m. to 5 p.m., Monday
     through Friday, except, that the City Manager may authorize alternative business/operating hours for City
     facilities on a case-by-case basis in order to best meet the needs of residents and other customers. The
     established business hours of each facility shall be posted in a prominent public location at the facility.

     501.2 Hours of Work/Normal Work Schedule
              The number of hours of work constituting a normal workweek for all classified employees and
     unclassified management employees is 40 hours, as established by the City Manager. Unless an
     alternative work schedule has been approved as set forth in this policy, an employee's normal work
     schedule follows the City's established hours of operation (8 a.m. to 5 p.m., Monday through Friday) or
     the business/operating hours for the facility authorized by the City Manager.

     501.3 Meal Break
             Classified employees and unclassified management employees shall be granted a meal break
     during the course of the workday pursuant to Fair Labor Standards Act (FLSA) regulations, as follows:

              a. Paid Meal Break
                  An employee who is non-exempt will be granted a paid meal break if the employee's regular
     daily job assignment (a) requires the employee to remain at the work site during the meal break and (b)
     if the employee is not completely relieved of all his/her duties during the meal break. Non-exempt
     employees who work an 8-hour workday are granted a 30-minute paid meal break; non-exempt
     employees who work a 10-hour workday are granted a 40-minute paid meal break.

             b. Unpaid Meal Break
                  Exempt employees and non-exempt employees who do not meet the criteria set forth in
     section (a) above are granted an unpaid meal period during the workday. An employee who may
     occasionally be required to remain at the work site and/or who is not completely relieved of his/her
     duties during the meal break may request a temporary schedule adjustment to offset time worked.

     501.4 Alternative Work Schedules
             The City values its employees and is committed to providing the flexibility often needed to help
     employees meet their personal and family responsibilities. Alternative work schedules help increase
     productivity and morale, facilitate commuting to work, and may also be implemented as work
     management alternatives when it benefits the City by improving recruitment and retention.

             Classified and unclassified management employees who are exempt from the requirements of the
     Fair Labor Standards Act (FLSA) may request an alternative work schedule that covers the pay period or
     the workweek. Classified employees who are non-exempt and who are covered by the Fair Labor
     Standards Act (FLSA) may request an alternative work schedule that covers the workweek.

             a. Eligibility
                In order to be eligible to participate in an alternative work schedule, an employee must:
                1. Maintain a "successful" rating on all performance reviews.
                2. Complete assigned work.




90
            3.   Use work time effectively.
            4.   Assure the same or improved level of customer service.
            5.   Maintain dependable attendance.
            6.   Document timekeeping accurately.

             While all classified employees and unclassified management employees are eligible to
participate in an alternative work schedule, an alternative work schedule may not be appropriate for
every work situation. Nothing in this policy guarantees that an employee will be allowed to work an
alternative work schedule.

         b. General Guidelines
             Employees are generally expected to set their regular work schedule within the City’s
established business hours of operation. However, the City may accommodate the reasonable request of
an employee to establish a regular alternative work schedule that varies from the City’s established
business hours provided the schedule adjustment does not unduly disrupt or adversely affect service to
the general public and/or operations of the City or the department and that no additional cost to the City
is incurred.

           The Department Head may implement, continue, or discontinue alternative work schedules
based on business needs. Approval of alternative work schedules should ensure that:

            1. The level and quality of customer service is maintained or increased.

            2. Schedules coordinate with needs of internal and external customers.

            3. Operational deadlines are met with no additional budgetary impact, i.e., increase in part-
time, overtime, or compensatory leave accrual.

            4. There are no undue administrative burdens.

            5. There are no safety concerns.

            6. Resources are used efficiently and effectively.

            7. There is no conflict with City policies or procedures.

            While the City endorses the concept of alternative work schedules, the City does not permit
work schedules to vary on a daily basis to accommodate an employee's personal preferences. Once
established and agreed upon by the employee and his/her immediate supervisor and Department Head,
the employee's alternative work schedule will become the employee's core work schedule; and the core
work schedule (hours and days of the week) must remain constant until a schedule change is made at
the employee's request or the Department Head's direction.

             An employee with an alternative work schedule must begin and end his/her work day at the
hours and on the days agreed upon and must fulfill the required number of hours per day or submit a
request for leave. One of the goals of an alternative work schedule is to reduce short-term absences
from work; for example, working an alternative schedule should allow employees to schedule many non-
emergency appointments or other personal activities or obligations outside of their required core work
hours.

           Alternative work schedules for non-exempt employees must not exceed 40 hours worked in a
week due to FLSA overtime and compensatory provisions. Alternative work schedules for exempt
employees have more flexibility since they are not bound by FLSA overtime and provisions.




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                 The Department Head is responsible for ensuring appropriate staffing coverage to meet the
     operating requirements of the department. The Department Head is also responsible for resolving
     intradepartmental schedule conflicts and assuring that proper coverage is maintained.

                 Employees on an alternative work schedule are responsible for attending all mandatory
     department meetings and training. Employees shall be expected to attend such events even if the
     meeting or training is scheduled during an "off" time. The employee must adjust his/her schedule
     accordingly and obtain the approval of his/her supervisor.

             c.   Alternative Work Schedule Options

                    1. Flex-Time Schedule
                         A flex-time schedule allows an employee to fulfill the required number of hours to be
     worked while having flexibility in establishing regular alternative hours to begin and end the work day or
     to establish regular alternative work days which vary from the City's established business hours. This
     flexibility will assist the employee in balancing work with home and personal commitments and
     obligations. The flex-time schedule must be approved by the employee's immediate supervisor and
     Department Head. Working a flex-time schedule does not mean the employee can adjust his/her
     beginning and ending hours and/or work days on a daily basis; the employee’s flex-time schedule must
     recur regularly and remain constant over each workweek.

                 2. Compressed Workweek
                     Compressed workweek is a work arrangement where an employee, with the approval of
     his/her supervisor and Department Head, works extra hours on a regularly scheduled work day so that
     the weekly or bi-weekly schedule is completed in fewer days. The accumulation, banking, or trading of
     compressed days off is not permitted.

             d. Timekeeping and Payroll; Holidays & Leave
                 If an employee works an alternative work schedule and his/her regular day off falls on an
     observed holiday, the employee shall receive another day off, with pay, to be taken in the calendar year
     in which the holiday occurs. For information on using holiday leave when working an alternative work
     schedule, see Section 700, Leave, Attendance & Holidays.

               e. Application Procedures
                   1. Employee completes a Request for Alternative Work Schedule (AWS) Form and forwards
     it to his/her immediate supervisor. After the Request for AWS Form is approved by the supervisor and
     Department Head, the alternative work schedule may be implemented and the original Request for AWS
     form forwarded to Human Resources to be filed in the employee's personnel folder. Human Resources
     will forward a copy of the Request for AWS Form to the Finance & Administration Department for
     timekeeping and payroll purposes. .

                 2. Due to FLSA requirements to pay overtime to non-exempt employees, once the
     employee has designated his/her regular day off, the employee cannot alter his/her scheduled day off.
     If a non-exempt employee is required to work on his/her regular day off, which may include training or
     conferences, the employee may be asked to change his/her work schedule for that week so that hours
     worked do not exceed the employee’s regular schedule.

     501.5 Temporary Schedule Adjustment
              It is expected that all professional, administrative, and management personnel will occasionally
     have to work extra hours to accomplish their jobs; however, the supervisor has the authority to
     occasionally adjust an employee’s hours within a pay period to allow an employee time off one day to
     offset required extra hours on another day. For example, if an exempt employee is required to spend
     two hours at a City Council meeting on one day, the supervisor may allow or direct the employee to take
     two hours off the following day or another day within that pay period. In the case of FLSA non-exempt
     employees, the two hours time off in this example must occur in the same week, since overtime eligibility
     accrues by the week, not by the pay period (i.e., normally after 40 hours in a week).




92
         The accumulation or banking of extra hours or use of extra hours outside the pay period (for
exempt employees) or week (for non-exempt employees) in which the hours were worked is not
permitted. If the employee is required to regularly attend a meeting, program, etc., outside of the City’s
established business hours and would like to adjust his/her schedule on a regular basis, the employee
should apply for an Alternative Work Schedule using the procedure set forth above.

Section 502. Work Attire

502.1 Purpose
        The purpose of this policy is to provide guidance to employees and supervisors relative to
appropriate work attire in order to promote a professional work environment and a positive image of the
organization but also allow for flexibility to maintain good morale, respect individual religious, racial,
gender-specific, and ethnic attire, and give due consideration to safety and sound business practice.

502.2 Applicability
        This policy establishes some broad parameters which apply to all employees of the City of
Gaithersburg; however, most departments have some uniqueness in terms of operating needs, uniform
requirements, customer expectations, and safety. Therefore, regulation of employee work attire will be
managed at the department level.

        Departments may establish more stringent requirements, based on needs, but may not establish
lower standards than those set forth herein, except as provided in the "Exceptions" section of this policy.
If the Department Head sets more stringent guidelines for his/her Department, he/she is responsible for
communicating the departmental work attire guidelines to all affected employees and for providing a
copy of the revised guidelines to the Human Resources Department.

502.3 Work Attire
        Since the City's customer base is diverse and is served by employees performing a variety of jobs
and duties, work attire and grooming should be appropriate to the employee's duties/responsibilities.
During business hours or when representing the City, employees may dress comfortably but are expected
to present a clean, neat, professional, businesslike, and tasteful appearance and demeanor. Clothing
may vary depending on the season, weather conditions, degree of contact with the public, nature of the
job, gender, and safety issues.

         Items of apparel that are not appropriate in any workplace include, but are not limited to:

         a. Clothing that is noticeably worn, faded, stained, discolored, patched, ripped, frayed, torn, or
dirty.

         b. Clothing that is revealing, transparent, or provocative including but not limited to tube tops,
halter tops, short sleeved or sleeveless undershirts, off-the-shoulder tops, midriff length tops, attire which
displays underwear or lack thereof, strapless dresses (unless worn with a jacket, sweater, or shirt), short
skirts/dresses (above mid-thigh), short-shorts, or cutoffs.

        c. Clothing with printed messages, slogans, statements, or graphic designs that may be
offensive and/or otherwise violate the City's Discrimination and Harassment policy.

        d. Clothing that is generally worn for exercise or relaxation including but not limited to
sweatshirts, sweatpants, warm-up suits, jeans or overalls of any color, beach wear (including beach or
pool footwear), spandex or Lycra (such as biker shorts), leotards, or leggings (unless worn under
appropriate-length dresses or skirts).

        Individual questions about appropriate attire in the department should be addressed to and
resolved by the Department Head or supervisor. Requests for guidance, advice, or assistance in
administrating or interpreting these guidelines should be directed to the Human Resources Director.




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     502.4 Uniforms
             The City of Gaithersburg will determine which employees will be required to wear uniforms and
     the department will issue appropriate clothing and accessories to those employees. An employee who is
     required to wear a City uniform while carrying out the duties of his/her position shall comply with the
     appropriate departmental policy including the following:

             a. Employee is responsible for wearing a City uniform while performing City-related work.

              b. Except as provided herein, a uniform, or any part thereof, shall be worn only while the
     employee is on duty or while en route to or from the City. No employee shall wear a City uniform while
     off duty, unless specifically approved on a City of Gaithersburg Application for Secondary Employment.

             c.   Safety boots and/or safety hard-soled shoes, if appropriate, shall be worn with the uniform.

            d. Employee is responsible for taking proper care of uniforms and accessories as directed by
     departmental guidelines.

            e. Deviations from the standard uniform (i.e., during hot or cold weather, etc.) must be
     approved by the employee's supervisor.

            f. Employees in uniform are perceived by the public to be "on duty" and representing the City;
     appearance and conduct reflect upon the City at all times.

     502.5 Exceptions
              At the discretion of the Department Head or supervisor, employees may be exempted from the
     guidelines of this policy due to the nature of the employee's work, environmental or weather conditions,
     for special projects requiring more casual attire (i.e., office clean-up days, organized City department or
     division social events), for special times designated by the department (i.e., Casual Friday, Casual
     Summer Dress Weeks), or for medical, religious, ethnic, or safety reasons.

             Nothing in this policy is intended to discriminate or hinder the advancement of diversity in the
     organization. Every effort shall be made to accommodate an employee's religious or ethnic dress,
     providing it does not violate the Occupational Health and Safety Act.

     502.6 Enforcement
             The Department Head and/or supervisor is responsible for enforcing the guidelines of this policy
     consistently and fairly within the department. The department head and/or supervisor has the authority
     to refuse to allow an employee who is inappropriately attired or whose appearance is not appropriate to
     begin work.

            If the Department Head or supervisor determines that an employee's attire is inappropriate for
     the workplace or that the employee's uniform is incomplete, he/she shall be required to leave the
     premises to change clothes. The employee will be required to use available annual, compensatory, or
     personal leave or leave without pay to cover the period of the absence.

     Section 503. Severe Weather & Other Emergencies
             As the City of Gaithersburg provides essential services to the citizens of Gaithersburg, every
     reasonable attempt will be made to open for business on all regularly scheduled workdays. However, in
     the event of severe weather-related or other general emergency conditions, the City Manager may
     declare a period of emergency in the City of Gaithersburg. If circumstances warrant, the City Manager
     may order City facilities to be closed and/or activities to be cancelled during the emergency period.

             During weather or other emergency situations that affect the region, unless otherwise declared
     by the City Manager, the City of Gaithersburg will follow the same policy as Montgomery County
     Government (NOT Montgomery County Public Schools) concerning closing facilities early or all day,




94
delayed openings (employees scheduled to work should report to work at the later specified time), and/or
liberal leave (City offices remain open and all employees scheduled to work should report to work as soon
as they feel travel conditions permit them to safely do so; employee may take leave without prior
authorization from their supervisor for any time they are delayed in reporting to work or if they are
unable to report for work). Employees should listen to local radio or television broadcasts or check the
City website for announcements or information.

         For information regarding special pay conditions during emergencies or times of severe weather,
refer to Section 600, Compensation.

Section 504. Parking at City Facilities
          Most City facilities provide ample free parking for City employees; however, employees at some
facilities will need a parking permit to park their personal vehicle in the facility's municipal parking lot.
The employee's supervisor will provide additional information. Employees working at City Hall should
contact the Human Resources Department for a City Hall parking permit.

         The City is not responsible for loss or damage to any vehicle, its accessories or contents,
resulting from an employee's negligence, acts of third parties (including, but not limited to, theft,
vandalism, or collision), acts of nature, fire, accident, or any cause other than the sole negligence of the
City. Employees are prohibited from parking in non-authorized locations including reserved, visitor,
handicap, and fire lane areas. Employees who violate these rules are responsible for parking tickets and
towing charges and may be subject to other disciplinary action.

Section 505. Vehicle Use Policy
          The operation of motor vehicles is essential to the City's operations; it facilitates the efficient and
effective use of City resources and the timely delivery of government services. Vehicle operation skills
and safe driving practices ensure that health, lives, and public property are preserved. Use of a City
vehicle by an employee is neither a right nor a privilege; rather, it is a trust and responsibility conferred
to facilitate necessary performance of job duties. While operating a City vehicle, employees are visible
and official representatives of the City; they should show every motor vehicle courtesy possible and
exhibit responsible behavior which reflects favorably upon the City of Gaithersburg and the individual
employee.

505.1 Purpose & Scope
         The purpose of this policy is to establish regulations and procedures for the use of City vehicles
and personal vehicles in conducting City business. The policy ensures that all City employees required to
drive City vehicles meet City driving standards as set forth in this policy and are in compliance with state
and local laws. The provisions of this policy shall apply to all employees of the City of Gaithersburg.

505.2 Qualifications/Standards for Operating City Vehicles
       a. City vehicles may be operated only by City employees who are at least 18 years of age and
who possess and maintain a valid driver's license for the type of vehicle being operated.

         b. An employee's driver's license must meet the minimum requirements for his/her position as
established on the class specification for the position.

        c. Employees operating commercial motor vehicles as defined by the Department of
Transportation must possess a valid commercial driver's license (CDL), regardless of whether the vehicle
being operated is on public or private property.

505.3 Responsibilities

        a. Fleet Maintenance
             1. Fleet Maintenance shall acquire and replace all City vehicles based on needs assessment
and available funding. The Fleet Maintenance Supervisor shall be responsible for allocating and assigning
City vehicles on a full-time or temporary basis for utilization by properly qualified employees as requested




                                                                                                                    95
     by Department Heads. Fleet Maintenance shall maintain a list of assignments of all City vehicles,
     including those assigned to employees for take-home use.

                  2. Fleet Maintenance shall establish and operate a regular preventative maintenance
     program for all City vehicles. Fleet Maintenance shall outfit each City vehicle with a first-aid kit and a
     checklist to be followed if the vehicle is involved in an accident/incident or if emergency repairs are
     needed (sample attached).

             b. Department Head
                  1. Each Department Head shall designate the assignment of City vehicles to personnel as
     required to conduct the Department's operations. The assignment of City vehicles during normal work
     hours shall be based upon job duties and shall be assigned in a manner consistent with Departmental
     workload and employee function; vehicles may be assigned full-time to individual employees or used as
     pool vehicles by the Department. The Department Head shall maintain a record of all vehicle
     assignments for his/her Department.

                  2. The Department Head shall notify the Human Resources Department of any employee
     who is required to operate a City vehicle as part of his/her job duties and shall verify that all employees
     in positions requiring operation of a motor vehicle possess a valid driver's license.

                  3. The Department Head shall ensure that all policies herein are met before authorizing the
     use of a City vehicle, that the vehicles assigned to his/her Department are operated as this policy
     dictates, that the vehicles meet all criteria outlined in this policy, and that each employee in his/her
     Department who operates a City vehicle adheres to the regulations set forth in this policy.

                  4. When a Department Head becomes aware of a suspension, restriction, revocation, or
     expiration of a City employee's driver's license, it is his/her responsibility to suspend the employee's use
     of a City vehicle until such time as satisfactory evidence is presented to the Department Head that such
     suspension, restriction, revocation, or expiration is no longer in effect.

               5. Department Heads shall ensure that employees who operate a personal vehicle for which
     reimbursement is received meet the requirements as defined in this policy.

             c.  Human Resources Department
                 The Human Resources Department shall provide a copy of this policy to all employees and
     maintain a signed acknowledgment of receipt of the policy in the employee's personnel file.

              d. Employees
                  1. Employees driving City vehicles shall comply with all relevant City policies and procedures
     including but not limited to the Vehicle Use Policy, Drug-Free Workplace Policy, Commuter Van Pool
     Policy, Personal Patrol Vehicle Program Policy, On-Call/Call Back Policy, and the Travel Policy.

                  2. Any employee who is assigned a take-home vehicle or who performs work that requires
     the operation of a City vehicle must notify his/her supervisor immediately when practicable, but in no
     case later than 24 hours following (a) an arrest for or being charged with a motor vehicle offense for
     which the punishment includes suspension, restriction, or revocation of the driver's license, or (b) the
     expiration of the employee's driver's license.

                  3. Any employee whose driver's license is suspended, restricted, revoked, or expired shall
     not drive a City vehicle until satisfactory evidence is presented to the department head that such
     suspension, restriction, revocation, or expiration is no longer in effect.

                  4. An employee who is issued a citation for any offense while operating a City vehicle must
     notify his/her supervisor immediately when practicable, but in no case later than 24 hours following the
     citation.




96
             5. An employee is personally responsible for any fines incurred as a result of driving or
parking violations while driving a City vehicle or the employee's personal vehicle while on City business,
unless the citation is for lack of maintenance of the vehicle or other act for which the City is responsible.

           6. Any employee who deliberately and/or willfully violates and/or circumvents the standards
and procedures described within this policy shall be subject to loss of any and/or all City vehicle privileges
and may be subject to other disciplinary action.

505.4 General Rules for City Vehicle Use
      When an employee operates a City vehicle, the following rules shall be observed:

        a. City vehicles may only be used for conducting City business, i.e., activities, jobs, tasks, or
other commitments that further the interests of the City or that provide a benefit to its citizens. City
vehicles shall not be used for private or personal business, except as otherwise provided in this policy.

         b. Employees operating a City vehicle may utilize the vehicle for incidental personal use
determined to be appropriate by the Department Head. Limited personal errands, including going to
meals on authorized meal breaks, could be permitted if within the general locality of the work site
provided such personal use does not substantially alter the employee's scheduled work activities or route
to or from a work site, or does not violate other existing Departmental or City policies.

        c. City vehicles may not be used in situations that are exclusively for personal use. Personal
use of a City vehicle that involves driving significantly out of the normal route is not permitted.

       d. A City vehicle may not be used outside the City boundaries unless approved in advance by
the Department Head, except to attend job-related meetings or training outside the jurisdiction or to
respond to a work-related emergency situation.

         e. City vehicles shall be operated in a safe and courteous manner at all times. Employees
driving City vehicles shall obey and comply with all applicable traffic and parking regulations, ordinances,
and laws concerning operation of motor vehicles. Employees should avoid distractions, such as eating
and/or drinking, while operating a City vehicle.

       f. Employees must carry a valid driver's license of the proper class and a City identification
badge while operating a City vehicle.

        g. Seat belts must be worn by the employee operating a City vehicle and by all passengers in
the vehicle during its operation.

         h. City vehicles may not be used to transport family members or other passengers not engaged
in City business without prior approval of the Department Head.

       i. City vehicles may not be used to transport pets or other animals except as necessary for the
completion of assigned City duties.

         j. Vehicles should contain only those items for which the vehicle is designed. The City shall not
be liable for the loss or damage of any personal property transported in the City vehicle.

        k.   Smoking in any City vehicle is prohibited.

         l. Employees should adhere to all State laws regarding the use of electronic devices such as cell
phones (talking or texting), pagers, digital assistants, laptops, and other electronic communication
devices.

        m. Employees may not operate City vehicles while under the influence of alcohol, illegal drugs,
or prescription drugs or medications which may interfere with effective and safe operation.




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              n. An employee may not carry a firearm or other weapon which is not required and/or utilized
     for his/her position with the City in any City vehicle while conducting City business.

              o. No additional or add-on equipment or accessories, including stickers or decals of any kind,
     shall be installed or added to any City vehicle without the express written consent of the Department
     Head and the Fleet Maintenance Supervisor.

             p. Employees are prohibited from using City vehicles during the time period when any of the
     following conditions exist: (1) paid and/or unpaid suspensions; (2) paid and/or unpaid leave; and (3)
     holidays, with the exception of working holidays.

             q. Employees using City vehicles are responsible for basic maintenance of the vehicle, including
     keeping the interior clean and free of litter/debris; checking the fluids, tire condition and air pressure,
     proper operation of exterior lights, and overall condition of the exterior; cleaning windows of dirt, ice, or
     snow when necessary; keeping preventive maintenance appointments; and reporting any operating
     problems to the Fleet Maintenance Division immediately upon detection.

             r. When not in use, City vehicles shall be kept on City property locations, except as otherwise
     provided in this policy.

              s. Employees shall take every precaution to ensure the safety of the City vehicle and its
     contents. The operator shall lock the vehicle and take the keys, except in those situations when a
     commercial parking garage requires the keys to be left with the vehicle. At no time should the vehicle be
     left running when unattended.

            t. Theft or vandalism must be reported immediately to the Police Department and the Human
     Resources Department.

            u. Employees that operate a City vehicle that has a gross vehicle weight over 10,001 pounds
     must have a DOT medical card.

     505.5 Take-Home Vehicles
              Generally, City vehicles are not permitted to be taken home or used for personal use by City
     employees. However, take-home vehicles may be provided to facilitate timely response to emergency
     situations which pose an immediate threat to the safety of the public or where the vehicle taken home by
     the employee is equipped in such a manner that performance of the employee's duties in his/her own
     vehicle would be impractical. Positions that utilize a take-home vehicle will be reviewed on an annual
     basis and must be approved each year.

             a. Permanent Assignment - Police Personnel
                 Police department personnel may be assigned a take-home vehicle in accordance with the
     provisions of the Personal Patrol Vehicle Policy (attached). The Personal Patrol Vehicle Policy shall not be
     amended without approval of the City Manager.

             b. Temporary Assignment
                  This policy does not preclude the Department Head from authorizing an employee to take
     home a City vehicle on a specific occasion to facilitate City business, such as when an employee takes a
     vehicle home overnight to travel directly from home to a meeting or conference the next day, when the
     employee is required to return to work that same evening for a meeting, and in other circumstances
     where it is in the best interest of the City that an employee have temporary use of a take-home vehicle.
     An employee requesting temporary assignment of a take-home vehicle shall complete the Request for
     Take-Home Vehicle Assignment Form (attached).

             c.   Take-Home Vehicle Use




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             When an employee operates a take-home vehicle, the employee shall follow the General
Rules for City Vehicle Use as set forth in this policy. The following rules shall also be observed:

             1. Take-home vehicles may be used for commuting to and from work, except as otherwise
provided in the Police Patrol Vehicle Policy, and for other limited purposes as provided herein, including
de minimis personal use, but shall not be used for general personal use. De minimis personal use
includes stopping for necessary personal errands or appointments while commuting to and from work,
while conducting City business, and during an employee's personal time during the workday.

             2. The take-home vehicle shall be parked, secured, and locked and remain at the
employee's home or other secure location when it is not being used for official business. An employee
who is assigned a take-home vehicle, especially a vehicle containing additional City equipment, must take
reasonable precautions to secure and safeguard all City property. When possible, employees will provide
secure, off-street parking for take-home vehicles.

             3. An employee who is assigned a take-home vehicle must notify his/her Department Head
of the location where the take-home vehicle is regularly secured.

             4. The take-home vehicle shall be returned to the City when the employee is in light duty
status, on leave for more than three (3) days, on administrative leave of any duration, suspended from
duty, or upon the request of the supervisor.

             5. The employee shall be responsible for maintaining both the interior and exterior of the
vehicle in a clean and safe condition.

            6. The employee shall be responsible for any tax liability incurred by the employee for
taking the vehicle to and from work, and shall provide any information required by the City to complete
the relevant tax forms regarding such use.

         d. Revocation of Take-Home Authorization
              Take-home authorization may be revoked for failure to comply with the provisions of this
policy; for a change in job assignment, duties, or responsibilities such that a take-home vehicle is no
longer justified; or when the Department Head determines it to be in the best interest of the City to
revoke such authorization.

505.6 City Vehicle Accidents/Reporting
       Employees involved in a motor vehicle accident in a City vehicle should observe the following
rules:

        a. In the event of an accident, the employee shall follow the procedure included in the Motor
Vehicle Accident/Incident Checklist (attached) provided in each City vehicle.

        b. Employee shall report the accident to the nearest law enforcement agency.

        c. Employee shall refrain from making statements regarding the accident with anyone other
than the investigating law enforcement representative and appropriate City officials. Statements made to
investigating authorities should be confined to truthful, factual observations. The employee shall
cooperate with law enforcement personnel, take notes on the facts of the accident, and take photographs
of the accident scene, if possible.

        d. Employee must report all accidents involving a City vehicle to their supervisor and to the
Human Resources Department, whether or not there is damage to the vehicle and/or the employee is
cited. Damage to the vehicle (including dents or scrapes), to local government property, or to other
property, must be reported immediately when practicable, but in no case later than 24 hours following
the accident.




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             e. Employee shall complete the appropriate Vehicle Accident Report in its entirety and submit
      the Report, along with copies of any reports from the investigating law enforcement agency, to the
      Human Resources Department.

              f. Post-accident drug and alcohol testing shall be administered to City employees after any
      accident involving a City vehicle as set forth in the Drug-Free Workplace Policy.

      505.7 Emergency Repair Service
              If a City vehicle requires emergency road service, the operator shall follow the procedure
      included on the Emergency Repair Service Checklist provided in each City vehicle (attached).

      505.8 Personal Vehicles
              No City employee may be required to use his/her personal vehicle for conducting City business.
      An employee using his/her personal vehicle to conduct City business assumes all risks and liabilities
      associated with such use.

             An employee using his/her personal vehicle to conduct City business shall be reimbursed for
      expenses as set forth in the City Travel Policy.

      505.9 Exceptions
              Any permanent exception to this policy may be requested by the Department Head in writing and
      granted by the City Manager. An exception that is urgent and temporary may be granted by the
      Department Head with notification to the City Manager.

      Section 506. Commuter Van Pool Policy
               This policy provides guidelines for use of a City-owned vehicle by employees for commuting
      purposes in order to encourage and promote participation in group transportation. The City recognizes its
      responsibility to continually strive to reduce the environmental impact of its work; creating a commuter
      pool for employees will assist in these efforts by reducing traffic congestion, alleviating parking problems,
      increasing energy conservation, and reducing pollution. This policy applies to all classified/unclassified
      merit system employees of the City.

      506.1 Exceptions
             Exceptions to this policy may be requested in writing by the Department Head and must be
      approved by the City Manager or his/her designee.

      506.2 Policy
                It is the policy of the City of Gaithersburg to provide a limited number of vehicles for use as
      commuter vehicles to classified/unclassified merit system employees. Eligibility to participate in the
      program will be determined by a lottery which will be held January 1 of each year. The number of
      employees eligible to participate will be determined by the number of vehicles available and their rider
      capacity as recommended by the Fleet Maintenance Supervisor. Vehicles in the commuter pool are
      strictly for use in transporting City employees to and from work.

      506.3 Eligibility
               a. On or about December 1 of each year, the Fleet Maintenance Supervisor will notify the
      Human Resources Department of the number of vehicles available for use in the commuter pool. This
      will determine the number of seats available.

              b. On or about December 15 of each year, the Human Resources Department will request the
      names of employees interested in participating in the program. Human Resources will determine a
      deadline for submission of names of interested employees. Once all names have been received, Human
      Resources will hold a lottery to select employees to participate in the program.




100
         c. In order to be eligible to participate, all riders/operators will be required to sign and return to
the Human Resources Department the City Vehicle Commuting Liability Waiver (attached) prior to
participating in the program.

       d. Employees with a revoked or suspended operator's license are eligible to participate as
passengers in the program.

506.4 Operator Selection/Requirements
        Once operators selected to participate have been identified, a primary and alternate operator will
be selected based on the ability to meet the following requirements:

        a.   Must   maintain a valid operator's license
        b.   Must   be at least 21 years of age
        c.   Must   not have a DUI or DWI violation within the past year
        d.   Must   have completed a safety course for driving the passenger van or have a CDL.

        Both primary and alternate operator will be assigned a set of vehicle keys.

506.5 Operator Responsibilities
        The operator shall observe all the general rules for operating a City vehicle as set forth in the
Vehicle Use Policy. Additionally, the operator shall:

        a. Use the vehicle only for commuting to and from a City facility (no personal use).

       b. Drive the van to and from work location and pick up and deliver riders according to the
agreed upon schedule.

        c.   Record van odometer reading daily in a vehicle mileage log.

         d. Ensure the vehicle's first aid kit and safety equipment (fire extinguisher and reflector kit) are
in place and that all riders know the location and use of safety equipment.

        e. Use the most direct route to the trip's destination.

       f. Establish a contingency plan and a communication system to notify riders in the event the
van and/or operator are unavailable for any reason.

        g. Maintain an up-to-date roster of riders with rider contact information and use the
contingency plan in the event the vehicle is not available for commuting purposes.

        h. Ensure the vehicle is parked in a designated commuter parking lot. Operators are prohibited
from taking the vehicle to their residence or from using the vehicle for personal use.

        i.   Notify supervisor if the vehicle will not be returned to the fleet for any reason.

506.6 Accidents/Reporting
        In the event of an accident, the driver shall follow the procedure included in the Motor Vehicle
Accident/Incident Checklist provided in each City vehicle and shall observe the same rules for reporting
accidents in City vehicles as set forth in the Vehicle Use Policy.

506.7 Emergency Repair Service
        If a City vehicle requires emergency road service, the operator shall follow the procedure
included on the Emergency Repair Service Checklist provided in each City vehicle. If the van will not
operate before riders are picked up, the operator will notify riders that the contingency plan is in effect.

506.8 Rider Responsibilities




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             Riders are responsible for complying with all federal, state, and local motor vehicle regulations
      and laws and ensuring that the operator has current rider contact information.

              Riders are also responsible for arranging alternative transportation to and from work in the event
      the van is not available for use in the commuter pool or in the event of an emergency resulting in the
      need of the employee to leave work outside of the agreed upon schedule.

      Section 507. Travel Policy
                The City Manager or designee may grant official administrative leave with pay for the purpose of
      having employees attend professional or technical conferences or short-term courses, in matters relating
      to official duties, or for other purposes. All such conferences and meetings must be directly related to the
      employee's professional field and position with the City. With the approval of the City Manager or
      designee, travel expenses may be reimbursed or advanced to employees attending such meetings. Such
      expenses may include registration, transportation, meals, and lodging.

      507.1 General
              a. Each Department has an assigned travel coordinator. This person will assist employees in
      the Department with conference/seminar registrations, making transportation and hotel arrangements,
      coordinating all necessary approvals and requests for a travel advance or for reimbursement of expenses.
      The travel coordinator will have copies of all forms available or may replenish the needed forms by
      contacting the Finance Department.

               b. All overnight conference travel requests, including estimates of all expenses to be incurred in
      connection with the conference travel, must be pre-approved by the Department Head to be eligible for a
      travel advance or reimbursement of expenses. All departmental travel requests must be pre-approved by
      the Department Head and a copy forwarded to Finance & Administration. All Department Head travel
      requests must be pre-approved by the City Manager or designee and a copy forwarded to Finance &
      Administration.

              c. All day travel requests, including estimates of all expenses to be incurred in connection with
      the conference travel, must be pre-approved by the Department Head to be eligible for a travel advance
      or reimbursement of expenses.

      507.2 Travel Guidelines

               a. Day Travel
                  1. Definition
                      Local conference travel is that performed within the commuting area of the normal work
      location and which can be completed within one day.

                   2. Modes of Transportation
                       Employees should carpool whenever possible, either by private or City vehicle. Only the
      cost of a single vehicle traveling to the same destination is authorized when multiple travelers can travel
      in the same vehicle, whether City-owned, private, or rental.

                       (a) City-Owned Vehicles. City vehicles will be used to the maximum extent practical in
      performance of day travel. The settlement of any fine or penalty imposed for traffic or other violations
      with respect to the use or operation of City vehicles is the responsibility of the individual operator
      concerned. The City will not pay or reimburse any cost involved, or take any action for the abatement of
      such fine or penalty.

                       (b) Privately-Owned Vehicles. The use of privately-owned vehicles is permissible for
      day travel only when it is determined to be advantageous to the City, or when City vehicles are not
      available. A mileage allowance will be paid to the employee who uses his/her private automobile for day
      travel, without regard to the number of passengers in the vehicle. Employees using their personal
      vehicle to conduct normal day-to-day business (errands, meetings, pick-ups, and deliveries, etc.) should




102
use the City's Mileage Allowance Claim Form to request reimbursement for mileage, tolls, parking, etc.
The employee should complete the necessary information for each trip (including number of miles) and
should retain all receipts (parking, tolls, etc.) for submission with the Form. For more information, see
"Requesting Approval of Day Travel or Conference and Overnight Travel." City employees will be
reimbursed at the prevailing IRS rate per mile for properly authorized travel in private vehicles.

                  (c)   Rail/Bus. Public transportation facilities (i.e., bus, Metro, etc.) should be used
where feasible.

            3. Meals Allowance
                Meal reimbursement associated with partial day's travel is not a tax-free reimbursable
expense. IRS regulations state that travel reimbursement is not taxable when an employee, who is
traveling away from home on business, stops for sleep. The trip must take the employee far enough
away from home so that an extended rest or overnight stay would ordinarily be necessary. In
accordance with the IRS regulations, the City does not reimburse partial day's meal expenses. Meals will
be reimbursed as described in this policy.

       When the employee is ready to request reimbursement, he/she should submit the completed
Form to the Department Head/designee for approval. The Form will be forwarded to the Finance &
Administration Department for processing. City of Gaithersburg Day Travel Forms are available from the
Department's travel coordinator and on CityNet.

        b. Conference & Overnight Travel
             1. Definition
                 Conference and overnight travel encompasses all travel where an employee will be away
from his/her normal work location beyond the normal duty day and includes, but is not limited to, the
following types of travel: operational (travel in connection with City business); professional/technical
meetings and conferences; conventions; and training/education.

             2. Modes of Transportation
                 The mode of transportation used will be that which will enable the traveler to make the
most productive use of his/her time at the least personal inconvenience and at the lowest overall cost.
The City will pay for or reimburse the amount of round-trip air/rail/bus fare to the location of the
conference, convention, or training/education opportunity. In the event the employee wishes to return
from another location, the City will pay/reimburse for whichever is less expensive.

                 (a) City-Owned Vehicle. Maximum use will be made of City vehicles when it can be
determined that the destination is not adequately served by public transportation; the employee is
required to be in travel status for an extended period of time and is required to move about extensively
in the destination area; and/or the use of a City ca would result in savings of substantial time or money.

                 (b) Air/Rail/Bus. Employees who use commercial carriers for transportation on official
business will use the most economical accommodations available.

                  (c) Air Travel. The City has accounts with travel agencies in the immediate area to
arrange for air travel. The Department's travel coordinator may make all reservations through the travel
agency, or airline reservations may be arranged using the City credit card by the Finance &
Administration Administrative Assistant. Travel is authorized on regularly scheduled airlines at
coach/tourist rates. Tickets will be delivered to and billing will be handled through Finance &
Administration. The employee should work with the travel coordinator in obtaining the best possible
travel accommodations at the lowest possible cost. In case where the amount saved would exceed the
additional expenses incurred (hotel, meals, etc.), an employee may be authorized to leave before or stay
over the travel dates requested in order to take advantage of special airline rates.

                (d) Rental Car. Rental car is permitted at destination when it is less expensive than
other transportation modes such as taxis, airport limousines, and airport shuttles.




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                       (e) Taxicabs. The use of taxicabs will be limited to travel to and from the airport and
      to and from the hotel and the location of the conference, meeting, or event. Where possible, airport
      shuttle services should be the preferred mode of transportation between the airport and hotel, as they
      are normally more cost effective.

                      (f)   Other. Other modes of transportation may be used provided they are modes
      normally used for transporting persons employed in private business in the locality in which travel is
      being performed.

               3. Joint Travel. When two or more employees are traveling to the same destination,
      maximum use will be made of special group travel discounts, joint use of taxicabs, etc.

                  4. Meals Allowance. Meal costs will be paid by the City for all approved overnight travel.
      Per diem reduction applies to the following circumstances:

                       (a) An employee is on approved overnight travel. On the day of travel to or from the
      destination, per diem should be adjusted according to the departure and return times (see below). Meals
      not incurred during the travel should be excluded.

                      (b) Meals and incidental per diem will be reduced to account for meals furnished at no
      cost or nominal cost to employees by associations, institutions, other government agencies, etc.

                      (c)   If meal costs are provided in the cost of a conference, the per diem will be reduced
      accordingly.

                      (d) A flat $5 per diem is paid for each day of extended travel for incidental expenses
      such as bellhop/waiter/taxi/limousine tips, personal telephone calls, laundry, and transportation between
      lodging or business and places where meals may be taken. The incidentals amount is not prorated on a
      travel departure or return date. The flat $5 is paid on all travel days.

                      (e) Reimbursement is allowed by a member of appointed committees, boards, or
      commissions, or the City Manager or designee, where the meal is related to official City business. Meals
      are reimbursable (to include gratuities) at the prescribed allowance for a 24-hour period as follows:

                                                                              Total Trip
                            Meals                             Starts Before                  Ends After
                            Breakfast        $12              7:00 a.m.           or         9:00 a.m.
                            Lunch            $18              12:00 p.m.          or         2:00 p.m.
                            Dinner           $31              6:00 p.m.           or         7:00 p.m.
                            Incidentals       $5
                            Total            $66

      507.3 Requesting Approval of Day Travel or Conference & Overnight Travel
                  Employees attending any type of conference, regardless of whether it is local or non-local
      travel, must complete, in advance of travel, a "Conference & Overnight Travel Request Form" or "Day
      Travel Request Form."

               a. Completing the Appropriate Travel Request Form
                    To make a travel request, the employee should obtain a Travel Request Form from the
      Department's travel coordinator. The employee then completes all information requested on the Form.
      Included in the Reason for Travel Section should be the conference name, location, and dates. Also
      included on the Form should be the Department to which all expenditures related to the conference
      travel will be charged along with an estimate of all expenses to be incurred related to the conference
      travel (registration, transportation, lodging, miscellaneous); and, if applicable, a request for any cash




104
advance (for lodging or miscellaneous expenses) that may be needed. If necessary, the employee should
work with the Travel Coordinator in completing the Form and determining the estimated expenditures.

        b. Approval of the Appropriate Travel Request Form
            Once the Form has been completed, the employee should submit it to the Department Head
or designee for approval. After all necessary approvals have been secured, the employee should return
the Conference Travel Request From to the Travel Coordinator for processing.

        c.   Processing the Appropriate Travel Request Form
             Upon receiving the fully approved Form, the travel coordinator will submit the original to the
City Manager or designee for approval. The City Manager's Office will forward the approved form to the
Finance & Administration Department. The Travel Coordinator will provide the employee with a copy of
the Form and retain a copy for the Department's records. The Finance & Administration Department will
retain the original copy of the Conference Travel Request Form and all requests for payment of expenses
relating to the request will be attached as they are processed.

507.4 Payment of Travel & Conference Expenses (Payment to Vendors)
              On the travel expense form, there are four basic categories of expenses related to travel:
Registration (a fee paid to attend the conference, meeting, etc.); transportation (by air, rail, or bus);
lodging (hotel accommodations); and miscellaneous (meals [including tips], mileage [private car], gas
[City car], taxi, airport shuttle [including tips], parking/tolls, and other expenses). Expenses for
registration, transportation, and lodging can either be prepaid by the City; can be reimbursed to the
employee after the conference travel when the employee pays for expenses with his/her own funds; or
can be paid after the City is billed by the vendor (for example, the City will be billed directly by the travel
agency for air transportation). Miscellaneous expenses can be reimbursed to the employee when the
employee pays for the expenses with his/her funds and provides all receipts (excluding meals), or the
employee can request a travel advance not to exceed $250, unless authorized in advance by the City
Manager or designee, to assist with payment of these expenses.

        a. Travel Expense Form
             When the employee submits his/her approved Travel Request Form to the travel coordinator,
the travel coordinator will provide the employee with a Travel Expense Form which the employee will use
to request payment of all expenses related to the conference travel. The travel coordinator will work with
the employee in completing and submitting the Expense Form. All checks issued for conference travel
expenses as requested by the Travel Expense Form will be returned to the employee for disbursement.

            The Expense Form is divided into sections representing the four general areas of conference
travel expenses: Registration, Transportation, Lodging, and Miscellaneous. Payment for one or more of
these expenses may be requested at any time by completing the appropriate section(s) and returning the
Form to the travel coordinator for approval. Upon receiving the request, the travel coordinator will
compare the request against the original estimated expense(s) and sign the appropriate section(s) of the
Form. (If there is a significant difference between the original estimate and the actual expense, the
request may need to be approved by the Department Head.)

             After approving the expense request, the travel coordinator will forward the original Travel
Expense Form to the Finance & Administration Department, along with a copy of the approved Day
Travel Request Form or Conference Overnight Request Form, and provide a copy of the Travel Expense
Form to the employee. The employee will use this copy to make the next request for expense(s) to be
paid relating to this conference travel request, and will continue to follow the same procedure until all
expenses relating to the conference travel have been paid. The travel coordinator will then ensure all
receipts are attached, reconcile, sign and forward to the Department Head/designee for signature. It will
then be forwarded to Finance & Administration. All expenses relating to the conference travel must be
reconciled within 30 days.

           (1) Registration. Enrollment fees for conferences may be prepaid or billed to the City. The
employee should complete the information requested in the appropriate section of the Travel Expense




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      Form and forward to the travel coordinator. Where prepayment is a requirement, the travel coordinator
      must submit conference registration forms and the signed copy of the Travel Expense Form to the
      Finance & Administration Secretary, who will use the City credit card to register the employee.

                    (2) Transportation. If a travel agency is used to make air transportation accommodations,
      the City will be billed directly for these charges by the agency. The employee should complete the
      information requested in the appropriate section of the Travel Expense Form and submit to the travel
      coordinator to authorize the payment. As necessary, the travel coordinator must submit conference
      registration forms and the signed copy of the Travel Expense Form to the Finance & Administration
      Secretary, who will use the City credit card to arrange airline reservations for the employee.

                  (3) Lodging. When possible, expenses for hotel accommodations should be prepaid by the
      City. If necessary, an employee may use a personal credit card to guarantee and pay for hotel
      accommodations and request reimbursement at the end of the travel. As necessary, the travel
      coordinator must submit conference registration forms and the signed copy of the Travel Expense Form
      to the Finance & Administration Secretary, who will use the City credit card to reserve one night's lodging
      for the employee. If neither of these options is viable, the employee should request a conference Travel
      Advance to pay for the hotel accommodations.

                 (4) Miscellaneous Expenses. An employee must provide receipts or appropriate
      documentation for all expenses for which he/she desires to be reimbursed. Miscellaneous expenses are
      reimbursable for the following items:

                      (a)    Work-related communications expense (telephone, messengers, etc.).

                      (b) Customary tips for waiter (tips must be based on the usual and customary
      amounts, 15 percent to 20 percent, for City reimbursable amounts), bellhops, skycaps, baggage handling,
      and valet parking.

                      (c)    Business related long distance telephone calls.

                       (d) Employees may request reimbursement for one personal long distance call home
      daily, not to exceed 10 minutes, while out of the City on business.

              b. Non-reimbursable Expenses
                 The following expenses are not allowable for reimbursement:

                  (1) Travel expenses incurred to obtain or maintain training and certificates that are not
      associated with an employee's job requirements.

                  (2) Personal travel insurance (e.g., life or medical insurance).

                  (3) Personal expenses (e.g., laundry, valets, haircuts).

                  (4) Self-entertainment activities (e.g., pay television, movies, nightclubs, health clubs,
      theaters, sporting events, etc.).

                   (5) Mileage or transportation expenses when an employee is transported by another traveler
      who is entitled to mileage or transportation expenses.

                  (6) Loss of funds or personal belongings while traveling.

                (7) Any charges not specifically related to the conference/travel (e.g., additional charges for
      accommodations, meals, or travel either before or after the conference or for any expenses incurred by
      family members if an employee's spouse and/or children accompany the traveler on an official business
      trip).




106
            (8) Alcoholic beverages.

            (9) Meals provided as part of registration.

                 (a) There will be no meal allowance where conference, seminar, or business meeting
fees include the cost of the meal or if the meal is part of an official event associated with the conference,
seminar, or business meeting (such as a luncheon or banquet); or

                (b) Any meal furnished at no cost to the employee by a school or vendor while
attending a course of instruction if the cost of the meal is ultimately paid for as part of the cost of
instruction; or

               (c) Continental breakfasts, provided by either the place of lodging or the conference,
and heavy hors d'oeuvres.

507.5 Conference Travel Advance
            Travel advances, as well as prepayments to vendors, are authorized to City officials and
employees when required. In either case, approved travel authorization for expected travel and training
costs must be made prior to making such advance payments.

        a. Requesting a Conference Travel Loan Advance
            To request an advance prior to the travel or conference, an employee must complete the Day
Travel Request Form or Conference & Overnight Travel Request Form. If the amount requested differs
from the original estimate, the employee must provide additional information to the travel coordinator
and the change must be approved by the Department Head or designee. The request for the Travel
Advance may not be presented to Finance & Administration more than 10 working days prior to the
conference travel. All outstanding Travel Advances must be settled before a new Travel Advance may be
requested. Requests for Travel Advances must be submitted to Finance & Administration at least seven
working days in advance of the actual date of travel.

         b. Reconciliation of Conference Travel
              Within 30 days of the return to work following the conference/travel, the employee must
reconcile the total amount of the travel by completing a Travel Expense Form and attaching all receipts.
If the employee spent less than the amount of the Travel Advance, the employee will reimburse the City.
Payment may be made with cash, check (made payable to the City of Gaithersburg), or money order. If
the Travel Advance is not repaid within 30 calendar days after returning from a travel assignment,
Finance & Administration will deduct the Travel Advance from the employee's payroll check. A deduction
of up to 50 percent of the employee's net pay will be made each pay period until the Travel Advance is
paid in full. The employee is responsible for compiling the total requested for reimbursement and
ensuring associated receipts are attached. The City will not reimburse for items not supported by the
requisite receipts, unless specifically approved by the Department Head.

             If the employee spent more than the amount of the Advance, or no Travel Advance was
requested, and all applicable receipts are provided, the employee should return the Form and receipts to
the travel coordinator. After obtaining necessary authorization by the travel coordinator and the
Department Head or designee, a check will be issued to the employee in the amount of the difference
between the amount of the travel estimate and amount actually spent less travel advance. Financial
reconciliation, either the amount owed to the City or the amount due to the employee must be submitted
to Finance & Administration.

507.6 Departmental Travel Coordinators
       For a list of Departmental travel coordinators, contact the Department of Finance &
Administration.

Section 508. Credit Card Program




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               The Credit Card Program (CCP) establishes minimum standards for possession and use of City
      credit cards for authorized purchases.

              The Credit Card Program is established to save the City time and money. By allowing the Bank
      and the merchants to process most of the paperwork, the City will eliminate the need to issue manual
      checks, speed the processing time for travel and arrangements, and reduce the number of invoices to be
      processed.

              While it is the intent of this program to improve the efficiency and effectiveness of the City,
      nothing in this policy and/or procedures is intended to replace the current policy and/or procedures
      defined under the City Purchasing and Travel Regulations.

      508.1 Scope
              This policy applies to all City employees permitted to use a City credit card. City Manager
      authorized City credit cards are held by the following:

              Position                                  Number of Cards
              Mayor                                           1
              City Council Members                            5
              City Manager                                    1
              Assistant City Managers                         2
              Human Resources                                 1
              Legal Services                                  1
              Department Directors                            TBD
              Municipal Clerk                                 1
              Finance & Administration Department             3

             Additional credit cards may be issued when and as approved by the City Manager for whom and
      when determined to be in the best interest of the City of Gaithersburg.

      508.2 Policy

              a. Limitations
                  City credit cards are to be used for travel reservation, business meals, and items where
      online purchase provides for a better price and reduced staff time. The card may also be used for the
      immediate purchase of items deemed to be in the best interest of the City where requesting a manual
      check would not be practical.

                   The use of the City credit card for alcohol, personal purposes or purchases in excess of the
      limits authorized by the City Purchasing and Travel Regulations is prohibited.

              b. Controls
                   The City of Gaithersburg uses internal management controls and reports from the card
      issuing bank system, to manage and audit the process to ensure that procedures are followed. The use
      of the Credit Card Program must comply with the City of Gaithersburg Purchasing and Travel Regulations.

      508.3 Oversight
              The Department of Finance & Administration is responsible for the Citywide contract
      administration of the Credit Card Program. Finance & Administration will issue overall policy guidance,
      pay Bank of America for all purchases/credits made by participating Departments, and post related
      charges/credits to the financial accounting system.

              Each individual assigned a card is responsible for determining that purchases under this program
      meet City purchasing regulations, policies, and procedures determined to further the business of the City.
      Employees shall be made aware that City credit cards will not be used for personal purchases and under
      no circumstances will alcohol be purchased.




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         The City Manager or his/her designee is responsible for the fiscal oversight/approval and
reconciliation of the credit card statements of the Mayor and City Council and those of the Assistant City
Managers. The Director of Finance & Administration is responsible for the fiscal oversight/approval and
reconciliation of the credit card statements of the City Manager and all other credit cards, ensuring
reconciliation of all credit card statements. The Director of Finance & Administration or designee will
monitor the issuance of cards, ensure prompt reconciliation of monthly statements, and prepare payment
documents for input in the financial system to generate payment.

         Credit cards maintained in the Department of Finance & Administration are available for use by
City employees authorized by Department Heads to make travel related, store purchases, and/or online
purchases. Each card is numbered and must be checked out by an employee, who must sign for the
card. When the card is returned, it must be accompanied by appropriate documentation and a coded
receipt signed by the Department Heads or his/her designee. Unless pre-approved by the Director of
Finance & Administration, credit card purchases may not be used for items in excess of the Purchase
Order limit.

       Finance & Administration will maintain a credit card action inventory for each card issued in the
name of the City.




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                       PERSONNEL RULES & REGULATIONS MANUAL

                                                SECTION 600
                                               COMPENSATION
      Section 601. Compensation Plan

      601.1 Introduction
              The City Manager shall present once each year a proposed compensation plan for the next
      succeeding fiscal year. Such plan shall be deemed to be approved by the City Council unless it is modified
      by the Council as part of the adoption of the budget. The City’s Compensation Plan consists of all salary
      and other monetary benefits afforded to the various job classifications of the City’s workforce.

      601.2 Purpose
               The City strives to provide the quality of life desired by the community through services provided
      by its various departments. The most important vehicle for providing these services is through City
      employees. The purpose of the Compensation Plan is to attract, retain and motivate a highly qualified
      and competent work force to provide the quality of service the citizens expect and deserve.

               The City shall seek to be competitive within the labor market, subject to the availability of funds.
      This will be accomplished through comparative wage surveys of applicable external markets. Internal
      equity is maintained through a program of reviewing each job class within the City and making
      compensation and adjustments to applicable positions when needed. In addition, the City's performance
      evaluation system is monitored to ensure the fair and consistent treatment of employees advancing
      through the salary range or salary steps of their respective position. Pay ranges shall include a minimum
      rate, a midpoint rate, and a maximum rate for each class.

      601.3 Standards for Development
               The Compensation Pay Plan is directly tied to the Classification Plan and is determined on the
      basis of:

              a.   Uniformity of pay for each class.
              b.   Relative difficulty and responsibility of positions.
              c.   Prevailing wages within the identified relevant public and private sector markets.
              d.   Cost of living index.
              e.   Financial policies of the municipality.
              f.   Difficulty in recruiting suitable employees.
              g.   Other economic considerations.

      601.4 Maintenance
              The City Manager shall direct the Human Resources Director to conduct internal and external
      analyses of the Compensation Plan as part of the annual budget process to identify whether or not, and
      how much, salary ranges and/or other monetary benefits require adjustment.

      Section 602. Fair Labor Standards Act
               The Fair Labor Standards Act establishes "standards" for minimum wages, maximum hours,
      overtime pay, and child labor. All employees at every level in the City are responsible for compliance
      with the FLSA, as amended. Responsibilities for the administration and interpretation of the FLSA
      include determining the existence of an employer-employee relationship; determining an employee's
      exempt or non-exempt status under the FLSA; interpreting and applying minimum wage, work time,
      coded hours, overtime, work schedules, special residency agreements, and other FLSA provisions such as
      child labor standards.

      Section 603. Minimum Wage




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        The City follows minimum wage requirements as established by the Fair Labor Standards Act
(FLSA). The FLSA required minimum wage will be $7.25 effective July 24, 2009.

Section 604. Salary Schedules
         Each salary schedule lists the applicable salary rates or ranges within that schedule. All current
job classifications are assigned to an appropriate salary rate or range on the applicable salary schedule
that reflect both the required qualifications and comparable market values for each classification. Salary
schedules are effective at the beginning of each fiscal year.

604.1 Range Schedule
         Employees appointed to a classification in a salary range schedule may be eligible for increases in
compensation at the beginning of each fiscal year as recommended by the City Manager and approved by
the City Council during the budget process. The amount of the increase is based upon a general wage
adjustment and the results of the employee's performance evaluation.

604.2 Step Schedule
        Employees appointed to a classification in a salary step schedule may be eligible for a general
wage adjustment at the beginning of each fiscal year as recommended by the City Manager and
approved by the City Council through the budget process. Employees may be eligible to advance to the
next step of the salary schedule based upon the results of the employee's performance evaluation and 12
months of continuous employment.

604.3 Lateral Hire Schedule (Police Department Only)
         Newly hired sworn police officers who have eligible prior police/law enforcement experience may
be eligible to receive a salary incentive upon hire provided the applicant meets eligibility criteria. To be
considered eligible to be hired under the lateral hiring policy, a police officer candidate must have been a
salaried employee within one or more of the following listed categories of public safety/police/law
enforcement agencies, excluding Special Police Officers (SPOs), with powers of arrest and the lawful
authority to carry a firearm during the course of his/her official duties and employment:

        a. A federal police/law enforcement agency
        b. A state/U.S. territory police/law enforcement agency
        c. A county police/law enforcement agency
        d. A city police/law enforcement agency
        e. A university/college police/law enforcement agency
        f. A military police unit/detachment
        g. A state or county sheriff's department (does not include those employed exclusively within
the arena of corrections or detention).

         Candidates eligible to be hired under the lateral hiring policy will receive a salary incentive for
prior qualifying law enforcement experience, up to a maximum of 5 years. The calculation will be based
on the candidate's length of eligible prior police/law enforcement experience. Partial years of qualifying
service will be rounded up or down for purposes of compensation (service) credit. (Six months or less of
qualifying service will be rounded down and seven months or more of qualifying service will be rounded
up.) This program does not provide for the lateral transfer of rank, rights, or seniority. All police officer
candidates are hired with the job title of Police Officer I.

Section 605. Compensation of Part-Time Employees
        Part-time,and part-time intern employees will be paid for work on an hourly basis. The rate-of-
pay for all part-time employees is set by the City Manager or his/her designee and continued employment
or changes in rate of pay should not be expected. The hourly rate will be determined by the Director of
Human Resources based on information received from the Department Head regarding the duties to be
performed and the skills needed to accomplish the task.

Section 606. Starting Compensation




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              Based on applicable prior experience, candidates will be hired at a rate between the minimum
      and the midpoint for the appropriate pay grade. If a candidate is exceptionally well qualified, or if other
      extenuating circumstances exist, the candidate may be hired at an amount above the midpoint of the
      appropriate pay grade provided the starting salary is approved by the City Manager or his/her designee.

      Section 607. General Wage/Pay for Performance Adjustments
              Based upon recommendations from the City Manager as part of the annual budget process, the
      City Council may allocate funds for general wage adjustments and pay for performance adjustments.
      The Department of Human Resources will calculate annual general wage adjustments and pay for
      performance adjustments based on the employee's performance evaluation and recommendations from
      the Department Head.

              a. Classified Employee and Unclassified Management Employee
                  An employee who receives a performance rating of Successful for the prior review period
      may be eligible to receive the general wage adjustment and a performance based pay adjustment at the
      beginning of each fiscal year except sworn police officers who will receive performance based pay
      adjustments on their law enforcement service anniversary date. In order to receive a performance based
      pay adjustment, an employee must have a performance evaluation on record for the previous fiscal year.

               A classified employee or unclassified management employee with a rating of Unsuccessful for the
      prior review period may not be eligible to receive the general wage adjustment and/or the performance
      based pay adjustment.

              b. Probationary Employee
                  A probationary employee who receives a performance rating of Successful for the prior
      review period may be eligible to receive a prorated general wage adjustment and a performance based
      pay adjustment upon completion of his/her probationary period. Upon successful completion of the
      probationary period, the employee will also be afforded all of the rights and privileges of the merit
      system.

                  A probationary employee with a performance rating of Unsuccessful for the prior review
      period may not be eligible to receive the general wage adjustment and/or the performance based pay
      adjustment. Additionally, the employee's probationary period may be extended or the employee may be
      terminated at the sole discretion of the City.

                   Upon successful completion of the probationary period, the new annual salary of an
      employee on the range salary schedule is prorated based on the number of pay periods remaining in the
      current fiscal year. The prorated salary is calculated as follows:

                   1. Calculate New Biweekly Salary:
                       Current annual salary ÷ 26 (number of pay periods in fiscal year) = current biweekly
      salary; current biweekly salary x percentage of general wage/performance based pay adjustment (as
      approved in fiscal year budget) = new biweekly salary.

                   2. Calculate New Annual Salary:
                       New biweekly salary – current biweekly salary = increase per pay period; increase per
      pay period x number of remaining pay periods in the fiscal year = total salary increase for remaining pay
      periods; total salary increase for remaining pay periods + current annual salary = new prorated
      annualized salary.

                 Upon successful completion of the probationary period, an employee on the step salary
      schedule moves to the next step within his/her pay grade.

                  The successful end of probation increase is a one-time adjustment and is effective at the
      beginning of the pay period in which the probationary period ends. Thereafter, classified employees and




112
unclassified management employees receive general wage adjustments and/or performance based pay
adjustments in the manner set forth in Section 607 (a) above.

        c.  Part-Time Employee
            Part-time and part-time intern employees may be eligible for a general wage adjustment
after successfully completing one year of service, and thereafter, as part of the annual budget process
based on Department Head and City Manager recommendations. Any other pay rate increase or
adjustment for a part-time and/or part-time intern employee must be approved by the City Manager or
his/her designee.

        d. Special Wage Adjustment
            At the recommendation of the Department Head, the City Manager may authorize a wage
adjustment to encourage retention of highly qualified City employees and to address pay inequities if
he/she believes it to be in the best interest of the City to do so. A wage adjustment cannot result in the
employee's salary being below the minimum or above the maximum of the employee's salary range.

Section 608. Payroll Policies

608.1 Hours of Work
        Salaries are computed under the City's Compensation Plan on the basis of 52 weeks for a work
year of not more than 2,080 hours for all employees. The normal work week for classified employees
and unclassified management employees shall be 40 hours worked or on paid leave within a seven day
period as determined by the City Manager. Classified employees and unclassified management
employees shall be granted a meal break during the course of the workday pursuant to Fair Labor
Standards Act (FLSA) regulations (see Section 501.3, Meal Break).

608.2 Pay Periods & Pay Days
       City employees are paid on a biweekly basis. The standard pay period begins on a Sunday and
ends 14 calendar days later on Saturday (12 a.m. Sunday through 11:59 p.m. Saturday).

       Paychecks or earning statements (if the employee has direct deposit) are issued by the Finance &
Administration Department on Fridays of the week following the pay period. If the Friday is a holiday,
paychecks or earnings statements are issued to employees on the last working day before the holiday.

        Employees separating from the City are normally paid for any hours due during the payroll period
of separation when the payroll is processed for that pay period. The pay period schedule for the current
calendar year is available in the Human Resources Department and on CityNet.

608.3 Direct Deposit
          The City encourages employees to have their paychecks processed through a direct deposit with
their designated financial institution(s). Employees must complete a Direct Deposit Enrollment Form and
submit it to Human Resources to enroll in direct deposit and to make changes to financial institution
and/or account information. The direct deposit paycheck is posted at the employee's designated financial
institution(s) the same day that non-direct deposit paychecks are issued.

608.4 Payroll Documentation

        a. New Hires
           Newly hired employees must complete all payroll paperwork before starting to work.

         b. Documentation for Changes
             Changes that affect the employee's compensation (e.g., title, grade, salary, department
activity account, etc.) must be documented using an electronic Personnel Action Form. The Personnel
Action Form is initiated by the employee's supervisor, approved by the Department Head, and forwarded
to the Human Resources Department to effect the change. Exceptions to this policy shall occur only with




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      the prior authorization of the Human Resources Director and only as an alternative method of
      documentation to expedite the payroll process (e.g., memorandum, email, etc.).

      608.5 Payroll Deductions
             The Finance & Administration Department will make appropriate deductions from an employee's
      pay under federal, state, or county statutes and regulations. The following deductions may be made
      from an employee's paycheck:

              a. Mandatory
                   Automatic payroll deductions are made from all paychecks for Federal and State income
      taxes (per individual W-4 Form), and applicable Social Security and Medicare taxes.

              b. Court Directed
                  The City shall deduct designated sums from the employee's wages in compliance with all
      court ordered deductions for child support, restitution, and wage garnishments. Any administrative fees
      authorized will be applied. The City will only change, modify, or stop court ordered deductions by the
      terms of a subsequent court order.

              c.  Insurance Premiums
                  Payroll deductions are made for any applicable employee co-payment for insurance
      premiums for the City's medical, dental, long-term care, or optional insurance programs. Signed
      enrollment forms or deduction authorization cards are required before deductions are made. Premium
      deductions are made biweekly.

              d. Savings
                  Several voluntary savings programs are available to employees, including 401K Profit
      Sharing, 457 Deferred Compensation, Roth IRA, and Montgomery County Credit Union. Signed
      enrollment forms or deduction authorization cards are required before any deductions are made.

              If there are insufficient earnings in a biweekly paycheck to adequately cover an employee's
      authorized deductions, the remaining unpaid balance due will be deducted from future paychecks or a
      mutually agreeable alternative method of payment will be implemented.

      608.6 Overpayment or Debt Recovery

              a. Recovery of Overpayment to Employee
                   1. If the City overpays an employee, the City may deduct money from the employee's pay
      to recover the overpayment. The City must give the employee written notice and may give the employee
      a three day time frame to negotiate repayment before the City automatically deducts the amount of the
      overpayment from the employee's pay.

                  2. An employee who is overpaid by the City has a duty to promptly notify the Finance &
      Administration Department of the overpayment.

                3. The City may take disciplinary action against an employee who knew about the
      overpayment but failed to notify the City.

              b. Recovery of Employee Debt to the City
                  The City may collect a debt owed to the City by an employee or former employee and deduct
      the amount owed from unpaid salary, accrued annual leave or compensatory time, or retirement
      contributions owed to the employee. The City must give the employee or former employee written notice
      of the debt owed and may give the employee a three day time frame to negotiate repayment.

      Section 609. Compensation Policies

      609.1 Promotion




114
        When an employee is promoted, the employee will receive a 5 percent salary increase per pay
grade increase, or the employee's salary will be increased to the minimum of the new pay grade/pay
step, whichever is greater unless a higher salary is warranted. Increases over 5 percent require City
Manager or designee approval.

609.2 Reclassification
         a. When a position is reclassified to a higher grade, the employee in the position will have
his/her salary increased to the minimum of the new pay grade/pay step, and the employee may receive
an additional salary increase as approved by the City Manager or designee.

         b. When a position is reclassified to a lower grade, the employee in the position may remain at
his/her current salary as long as it is within the range of the new classification. If the employee's current
salary is above the maximum of the new pay range, the employee's salary will be adjusted after one
year.

609.3 Transfer
         When an employee is transferred into a position which has the same pay grade as his/her current
position, the employee may maintain his/her current salary within the pay grade.

609.4 Demotion
        Salary adjustment may be determined by the City Manager or his/her designee based on the
reason for demotion.

609.5 Acting Appointment
        To be eligible for acting appointment compensation, an employee must be appointed to act in the
capacity of another employee in a position at least one grade higher than the employee's regular position
pursuant to the guidelines set forth in Section 806, Acting Assignment; and the employee must directly
supervise other employees as part of his/her acting appointment responsibilities.

         An acting appointee shall be eligible to receive additional compensation if the duration of the
acting appointment is 15 days or more. Additional compensation shall be paid to the appointee
retroactively to the date said appointment began. The acting appointee shall receive additional
compensation for the acting appointment as approved by the City Manager.

       Any merit increase earned by the employee during the period of his/her acting appointment will
be based on the employee's salary prior to assuming the acting appointment.

        The Fair Labor Standards Act (FLSA) designation of the position being temporarily filled (exempt
or non-exempt) shall take precedence with regard to the provisions of the FLSA concerning overtime pay
and compensatory leave, regardless of the FLSA designation of the previous position of the acting
appointee.

609.6 Overtime
       Employees in positions other than those specifically exempted from the Fair Labor Standards Act
(FLSA) may be required to work overtime. This may involve extending the workday, weekend work,
evening work, holidays, or such time as necessary to meet the operational needs of the City. Overtime is
time worked beyond an employee's standard hours in a workweek.

        Overtime is computed with the workweek beginning on Sunday and ending on Saturday.
Overtime shall be kept to a minimum and shall be used to relieve occasional peak-load needs,
emergencies, or hours critical to public safety needs and not to provide for constant recurring
requirements. Its use for accomplishing regular services that can be provided during a regular work
schedule is usually prohibited. An employee has no entitlement to be assigned overtime work. Overtime
may be mandated when related to the health, welfare, or safety of either the public or employees.
Except in emergency situations, employees shall not work in excess of authorized scheduled hours




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      without prior approval of the supervisor. In the event of emergency situations, the written approval shall
      be documented not later than the following workday.

              The FLSA specifies eligibility criteria for overtime compensation. Certain positions, as defined
      under the FLSA, are exempt from overtime compensation regardless of the number of hours worked in a
      week. The position description for each job classification shall indicate whether the position is exempt or
      non-exempt from the FLSA.

              FLSA overtime shall include all hours worked by a non-exempt eligible employee in excess of 40
      hours in a standard work week. For purposes of calculating overtime, annual and holiday leave approved
      in advance are counted as actual hours worked.

              There shall be no "pyramiding" of overtime. Compensation shall not be paid, nor compensatory
      time earned, more than once for the same hours under any section of this Manual.

               Compensation for authorized hours of overtime worked by non-exempt employees is at a rate of
      one-and-one-half (1½) times the employee's straight time hourly rate of pay. An overtime rate is paid
      for all hours worked in excess of 40 hours during a seven day work cycle (12 a.m. Sunday through 11:59
      p.m. Saturday).

              Fractional hours of overtime work will be rounded for payroll purposes to 15 minute increments
      in accordance with FLSA.

             Employees in executive, administrative, or professional positions as defined by the FLSA are
      exempt from the overtime provisions. Employees within these positions should have no expectation for
      compensation for hours worked over 40 hours in any given work week. The compensation for exempt
      employees is designed to be the remuneration for the performance of assigned duties regardless of the
      hours needed to complete those tasks.

      609.7 Compensatory Time
               Non-exempt employees working in excess of 40 hours during a workweek may request
      compensatory time in lieu of pay for overtime hours worked. The request for compensatory time must
      be approved by the Department Head or designee. Compensatory time for hours worked is one-and-
      one-half (1½) times each hour of overtime worked. Employees shall earn compensatory time for hours
      actually worked in accordance with the following provisions:

              a. Employees may accumulate compensatory time up to a maximum of 40 hours. Upon
      reaching the maximum limit of accumulated compensatory time, the employee will receive overtime pay
      as stated in the Overtime Section (609.6).

             b. Scheduling of accumulated compensatory time will be at the mutual agreement of the
      employee and the Department Head or his/her designee.

               c. Compensatory time shall not be accumulated from one calendar year to the next. An
      employee shall have until December 31 to use any unused compensatory time; the employee shall be
      paid for any unused compensatory time remaining after December 31.

            d. Upon separation from City employment, employees will be paid for unused hours of
      compensatory time at their regular straight-time hourly rate of pay.

              There is no compensatory time for exempt employees.

      609.8 Holiday Pay
              As far as is practicable, each classified employee and unclassified management employee will
      receive paid holiday leave on each holiday observed by the City (as set forth in Section 707, Holiday
      Leave). However, an employee may be required to work on the observed or substitute holiday when the




116
employee's job responsibilities support services or events provided by the City on that day. Additionally,
an employee may be required to work on an observed holiday when the observed holiday falls on a
Saturday or Sunday and the City has designated a substitute holiday on the preceding Friday or following
Monday to be observed as a holiday for that year for each eligible employee. (See Section 707, Holiday
Leave)

        For the purposes of this section, actual hours worked shall include holiday and annual leave
approved in advance. An overtime rate is paid for all hours worked in excess of 40 hours during a normal
workweek. However, as noted in Section 610, there shall be no "pyramiding" of hours worked (e.g., an
employee cannot count observed or substitute holiday hours worked at the overtime rate of 1½ as
actual hours worked for the purpose of calculating hours worked in excess of 40 in a normal workweek).

         An employee who is required by his/her Department Head or designee to work on an observed
and/or substitute holiday due to staff shortage or other operational necessity shall be compensated as
follows:

           a. Non-Exempt Employees

             1. A non-exempt employee working on an observed or substitute holiday on the employee's
regularly scheduled workday will receive:

                 (a)   Regular pay for the hours scheduled to be worked on the employee's normal
workday; and

                (b) Overtime pay at the rate of 1½ times the regular hourly rate for each hour worked
for the normal workday on which the holiday occurs, and for each hour worked in excess of the normal
workday.

             2. A non-exempt employee working on an observed or substitute holiday on the employee's
regularly scheduled day off will receive:

              (a) Regular pay for the hours scheduled to be worked on the employee's normal
workday OR eight hours of holiday leave scheduled within the calendar year the holiday was earned; and

                (b) Overtime pay at the rate of 1½ times the regular hourly rate for each hour worked
for the normal workday on which the holiday occurs, and for each hour worked in excess of the normal
workday; and

              (c) Regular hour-for-hour compensatory leave equal to the employee’s normal
workday (compensatory time awarded in this case is not eligible for overtime pay); and

              3. A non-exempt employee working on BOTH the observed AND the substitute holiday will
receive:

               (a) Regular pay for hours scheduled to be worked in the normal workday on which the
observed and substitute holiday occur; and

                (b) Overtime pay at the rate of 1½ times the regular rate of pay for each hour worked
for the normal workday on EITHER the observed or the substitute holiday, but not for both days; and for
each hour worked in excess of the normal workday.

           b. Non-Exempt Employees - Compensatory Time in Lieu of Holiday Pay

           At the employee's option, or whenever budgetary limitations preclude the payment of
overtime pay for holiday work, the employee may be awarded compensatory leave as follows:




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                 1. Hour-for-hour compensatory leave for the hours worked on a holiday, equal to the
      employee's normal workday; and

                   2. Compensatory time at the rate of 1½ times each hour worked in excess of the normal
      workweek.

                 An employee's request for compensatory time in lieu of holiday pay must be approved by the
      Department Head or designee.

              c.   Holiday Falls on an Employee's Regularly Scheduled Day Off
                   If an observed or substitute holiday falls on a non-exempt or exempt classified employee's or
      unclassified management employee's regularly scheduled day off, the employee shall receive eight hours
      of holiday leave on another day to be taken in the calendar year in which the holiday occurs. If both the
      observed and substitute holiday fall on an employee's regularly scheduled days off, the employee may
      receive eight hours of holiday leave on another day for only one of those days.

      609.9 On-Call Pay
               Certain non-exempt employees who are specifically designated and required to be available and
      ready to work when needed to handle unanticipated situations occurring outside of standard working
      hours are considered to be "on call." An employee "on call" is not required to remain at his place of work
      and is free to engage in his own pursuits, subject only to the understanding that the employee may be
      contacted to perform unanticipated and unscheduled work.

               If a Department Head or designee requires the employee “on call” to return to a work status to
      perform an unanticipated and unscheduled work assignment, usually of an emergency nature, the City
      must pay the employee a minimum of three (3) hours of overtime or the actual overtime hours worked
      for each separate instance, excluding travel time. An employee that is required to respond to a call, two
      or more times during the initial three hour period, will not be entitled to receive additional compensation
      until three hours have elapsed since he/she initially responded to the call.

             An employee "on call" receives compensation only if actual work is performed. An exempt
      employee is not eligible to earn on-call pay. (See Section 501.5, Work Rules)

      609.10 Stand-By Pay
               Certain non-exempt employees who are required to remain ready and available to work during a
      specified period of time beyond the employee’s standard working hours and expected to return to the
      worksite within a 30 minute timeframe are considered to be "on stand-by" and are eligible to receive
      stand-by compensation whether or not they are called into work. Only the Department Head or designee
      can authorize a person to be on stand-by status. An employee in “stand-by” status must provide the
      Department Head or designee with contact information through which the employee can be promptly
      contacted.

             An employee in stand-by status will receive no more than one hour of stand-by compensation at
      the employee's overtime rate for each 24-hour period or less that the employee is in stand-by status
      until:

              a. The employee is contacted to perform unscheduled work and has reported to work; or

              b. The employee's next regularly scheduled work period; or

              c.   The employee is contacted and relieved from stand-by status.

            If the employee on stand-by is required to report to work, the City must pay the employee a
      minimum of three (3) hours of overtime or the actual overtime hours worked.




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        The City will not pay stand-by compensation to an employee who is “on-call” or is working
regular or overtime work hours. An employee that is required to respond to a call, two or more times
during the initial three hour period, will not be entitled to receive additional compensation until three
hours have elapsed since he/she initially responded to the call.

        An exempt employee is not eligible to earn stand-by pay.

609.11 Court Time Pay
         A sworn officer who is required, on his/her regular day off, to attend a job related court
appearance as a witness or complainant or ordered to appear at a criminal or civil proceeding that arose
out of his/her duties as a police officer for the City shall be paid a minimum of three (3) hours of
overtime or the actual overtime hours worked, excluding travel time. When an officer is required to
appear in court two or more times during the initial three hour period, the officer will not be entitled to
receive additional compensation until three hours have elapsed since he/she initially appeared in court
that day.

609.12 Shift Differential Pay
        A sworn police officer, up to and including the rank of Sergeant, shall receive Shift Differential
pay for each hour worked as follows:

        a. Evening Shift (3 p.m. to 1 a.m.)         $.75
        b. Midnight Shift (8 p.m. to 6 a.m.)       $1.00

609.13 Field Training Officers Pay
      Sworn police officers who have been selected and trained as Field Training Officers (FTOs) are
compensated $3.00 per hour during the period of time they are actively training new officers.

609.14 Police Sergeants Roll Call Pay
        A police sergeant who supervises a shift and who is present for roll call for an additional one-half
hour prior to or an additional one-half hour after the end of his/her regular shift may be compensated for
the one-half hour time period at the rate of one and one-half times his/her normal rate of compensation;
provided, that the actual time worked at roll call is in excess of the sergeant's normal 40-hour workweek.

         In the event the sergeant is absent, then a corporal who is performing supervisory tasks in the
sergeant's absence and who is present for roll call for an additional one-half hour prior to or an additional
one-half hour after the end of his/her regular shift may be compensated for the one-half hour time period
at the rate of one and one-half times his/her normal rate of compensation; provided, that the actual time
worked at roll call is in excess of the corporal's normal 40-hour workweek.

       For the purposes of this section, actual time worked shall include holiday and annual leave
approved in advance.

609.15 Multilingual Skills Pay
          Classified employees or unclassified management employees who provide multilingual services in
the course of their City government employment are eligible for multilingual skills compensation. To be
eligible:

        a. An employee must use multilingual skills to assist the general public on a regular and
frequent basis; for the purpose of this policy, regular and frequent is defined as daily use; and

       b. Multilingual skills must be necessary to provide services and are essential to successful
performance of official functions; and

        c. The position performs in a setting where there is a demonstrated public need for the
designation.




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               Prior to becoming eligible for the pay differential, the employee must successfully pass a
      certification examination administered by the Human Resources Department. Employees interested in
      becoming certified should contact the Human Resources Department to schedule testing.

              Multilingual proficiency will be determined by a standardized oral and/or written competency test
      conducted by the Human Resources Department. Employees who fail the multilingual proficiency test
      may retake the test after six (6) months. Fees for tests cancelled or rescheduled with less than 24 hours
      notice will be deducted from the employee’s paycheck.

                The rate of pay for employees who successfully pass the certification examination is $80 per pay
      period.

               The Human Resources Department administers the Multilingual Pay Policy, including proficiency
      testing and certification. The Department will also periodically review and report on the number and
      location of employees designated as multilingual.

      609.16 Clothing Allowance
              A clothing allowance is additional compensation afforded to employees for the purchase of
      required clothing and equipment. The City Manager may authorize employees some form of clothing
      allowance based upon the operational requirements of their Department and the customary activities of
      the employee requesting the allowance. This will be reported as taxable income to the employee.

      609.17 Facility Closure & Emergency Pay
                In the event of urgent situations or dangerous weather or general emergency conditions, the City
      Manager may declare a period of emergency in the City. If circumstances warrant, the City Manager will
      order City facilities to be closed and/or activities to be cancelled during the emergency period. During
      weather or other emergency situations that affect the region, unless otherwise declared by the City
      Manager, the City will follow the same policy as Montgomery County Government concerning closing
      facilities, delayed openings, and/or liberal leave.

              a. Facilities Closed
                  If City facilities are closed due to a weather related or other general emergency, the
      following methods will be applied in compensating employees during the period of emergency.
      Employees should use the guidelines noted below in reflecting the facility closure on their time and
      attendance records.

                    1. Employees Scheduled to Work and Did Work

                        (a) Non-Exempt Employees
                            Non-exempt employees will receive compensation at their regular hourly rate for
      hours actually worked and additional compensation at their regular hourly rate for the period of the
      emergency which coincides with their normally scheduled work day.

                        (b)  Exempt Employees
                             Exempt employees who, at the direction of their supervisor, are required to work
      during any period of the emergency may apply additional hours worked toward flex time as outlined in
      Section 501.4, Alternative Work Schedules.

                        (c) Part-Time Employees
                            Part-time employees who, at the direction of their supervisor, are required to work
      during the period of emergency will be compensated at their regular rate of pay for all hours worked
      during the period of emergency.

                    2. Employees Scheduled to Work But Did Not

                        (a)   Classified Employees and Unclassified Management Employees




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                      Classified employees and unclassified management employees will be granted
administrative leave only for the period of the emergency that coincides with their selected work period.

                (b)    Part-Time Employees
                       Part-time employees will be given the opportunity to make up the hours they were
scheduled to work, if possible, and will be paid at their standard pay rate for those hours.

             3. Employees Scheduled to Work and Did Work,
                Such Work Was in Excess of Normal Work Day

                (a)   Non-Exempt Employees
                      Non-exempt employees will receive compensation at their regular hourly rate for
hours worked and additional compensation at the rate of 1½ times their regular hourly rate (as overtime
pay or compensatory time earned) for the period of the emergency which coincides with time worked in
excess of the normal work day.

                (b)    Exempt Employees
                       Exempt employees who, at the direction of their supervisor, are required to work
during the period of the emergency may apply additional hours worked toward a temporary schedule
adjustment (see Section 500, Work Rules).

                (c)   Part-Time Employees
                      Part-time employees who, at the direction of their supervisor, are required to work
during the period of emergency will be compensated at their regular rate of pay for all hours worked
during the period of emergency. (See above.)

             4. All Employees Not Scheduled to Work or in Paid Leave Status
                 Employees on a regular day off (including employees on compressed work schedules) or
in a leave status (i.e., annual, sick, personal, compensatory, etc.) during the period of emergency receive
no additional compensation. Such employee cannot receive administrative leave or an alternate day off.

             5. Employees Who Worked on a Scheduled Day Off
                Same as #3 above.

        b. Delayed Opening
             If a delayed opening is declared (either by the City Manager or by Montgomery County
Government), all employees scheduled to work are expected to report to work at the later specified time.
If unable to do so:

            Classified employees and unclassified management employees would be required to
take annual, compensatory, or personal leave for the remainder of the work day.

             Part-Time Employees would not be compensated.

        c.   Liberal Leave Policy
             If a liberal leave policy is declared (either by the City Manager or by Montgomery County
Government), City offices remain open and all employees should report to work as soon as they feel
travel conditions permit them to safely do so. If an employee is delayed or unable to report to work
when a liberal leave policy is in effect:

            Classified employees and unclassified management employees may take annual,
compensatory, or personal leave without prior authorization from their supervisor for any time they may
be delayed in reporting to work or unable to report to work.

             Part-Time Employees will not be granted compensation for time missed.




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                  If a liberal leave policy goes into effect during the day, classified employees and
      unclassified management employees who desire to leave may take annual, compensatory, or
      personal leave. Part-Time employees who desire to leave early will not be compensated for the hours
      they were scheduled to work but did not.

      609.18 Awards for Outstanding Service
              An employee who performs the duties and responsibilities of his/her position in an outstanding
      manner and whose work generally is well above expectations shall be eligible to be considered for an
      outstanding service award as approved by the City Manager.

      Section 610. Pyramiding of Hours Worked Prohibited
             There shall be no "pyramiding" of hours worked. Compensation shall not be paid, nor
      compensatory time earned, more than once for the same hours under any section of this Manual.




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                PERSONNEL RULES & REGULATIONS MANUAL

                                  SECTION 700
                         LEAVE, ATTENDANCE & HOLIDAYS

Section 701. Attendance and Punctuality
        It shall be the policy of the City to require good attendance and punctuality on the part of its
employees. Authorized absences must be pre-approved by the employee's supervisor. Unauthorized or
excessive absences or tardiness will not be tolerated.

Section 702. Annual Leave
        All classified employees and unclassified management employees are eligible to earn and accrue
paid annual leave (vacation leave). An employee's rate of accrual is based on the employee's years of
service with the City. The Department Head or his/her designee shall have the exclusive right to
authorize vacation leave requests and the maximum number of employees that can be on leave at any
time in order to maintain an effective working force at all times.

702.1 Annual Leave Accrual
         All classified employees and unclassified management employees begin accruing annual leave
with the first payroll period and each subsequent payroll period. Annual leave is credited to each
employee after it is earned; no provision will be made for advance crediting of annual leave. Annual
leave is accrued on a calendar year basis; annual leave in excess of 240 hours at the end of any calendar
year shall be credited to accumulated sick leave. An employee's paycheck/earning statement stub shows
his/her accrued annual leave balance.

         Annual leave hours are earned by classified employees and unclassified management employees
at a rate that corresponds to the years of service according to the schedule below:

                                                         Number of Hours
                         Year of Service
                                                      Accrued Per Pay Period
                               0–3                               3.69
                               4–6                               4.62
                               7–9                               5.54
                              10 – 12                            6.46
                           After 12 Years                        7.38

702.2 Scheduling of Annual Leave
         Employees are required to request annual leave in advance and may only utilize time up to the
total number of hours accrued at the time leave is taken. Employees should make the leave request as
far in advance as required and in the manner determined by departmental procedure. In scheduling
annual leave, the City will attempt to meet an employee's scheduling preference; however, the final
authorization is at the discretion of the Department Head or his/her designee based on the operational
needs of the department.

         A probationary employee hired after the beginning of FY 2010 may not use accrued annual leave
until the completion of six months of his/her probationary period, except with the prior approval of the
Department Head and the City Manager.

        An employee who works an approved Alternative Work Schedule (AWS) and takes a full workday
of annual leave on a regularly scheduled workday must use the amount of annual leave consistent with
the normal hours worked in a day on the employee's core work schedule (e.g., if an employee works four
10-hour days and requests annual leave on one of his/her regular workdays, the employee must take 10
hours of annual leave on that day).




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      702.3 Illness/Injury Prior To/During Annual Leave
               An occasion may arise when an employee becomes ill or is injured on a scheduled workday prior
      to and extending over a period of scheduled annual leave. If using available sick leave prior to the
      annual leave period, the scheduled annual leave may be canceled and the employee may continue using
      available sick leave until the end of the medical absence.

               An employee who becomes ill or who is injured after a period of scheduled annual leave has
      begun does not have an automatic right to use sick leave instead of annual leave. If such a situation
      should occur, the leave period will still be charged as annual leave for the remaining time of the
      scheduled annual leave period and not converted to sick leave unless the employee provides written
      medical documentation verifying the employee's injury or illness during the scheduled annual leave
      period, and certifying that the illness or injury would have prevented the employee from reporting to
      work if the employee had been in a normal work status.

      702.4 Payment for Unused Annual Leave
              a. Upon Termination of Employment
                  Classified employees and unclassified management employees who have earned annual leave
      and who resign from the City service with two weeks' notice or who are terminated due to a reduction in
      force may request payment in full for all unused annual leave or may take such unused portion of their
      annual leave, except that an employee may not be in a leave status in his/her final two weeks of
      employment with the City. Classified employees and unclassified management employees who are
      terminated shall be paid for their unused annual leave. In no event shall such leave, taken or paid for,
      exceed 240 hours.

              b. Upon Request
                  In the City Manager's discretion, a classified employee or unclassified management employee
      may receive payment for unused annual leave, provided that the employee requests such in writing using
      the appropriate form available on CityNet or from the Human Resources Department.

      702.5 Donating Annual Leave
              An employee is prohibited from donating annual leave to another employee except as permitted
      under the Donated Annual Leave Program as described in Section 703, Sick Leave.

      Section 703. Sick Leave
             City employees are expected to report to work each day, on time and as scheduled. However,
      employees sometimes become ill or hurt and are not able to work, resulting in the acceptable use of sick
      leave.

               a. Sick Leave Accrual
                   Employees begin accruing sick leave hours with the first payroll period and each subsequent
      payroll period. All classified employees and unclassified management employees shall accrue 4.62 hours
      of sick leave each pay period. Sick leave may be accrued with no maximum, providing excellent
      protection against an unexpected or prolonged illness. An employee's paycheck/earning statement stub
      shows his/her accrued sick leave balance.

              b. Notifying Supervisor of Sick Leave Usage
                  Employees shall make the request to use sick leave to their immediate supervisor or
      Department Head/designee as far in advance as required and in the manner determined by departmental
      procedure. Employees shall report to their immediate supervisor or Department Head/designee on each
      subsequent sick day absent from a scheduled day of work unless an alternate schedule of reporting is
      authorized by Departmental policy. An employee's failure to report when absent on sick leave shall be
      considered absent without leave and the employee may be subject to disciplinary action.

                   A probationary employee hired after the beginning of FY 2010 may not use accrued sick
      leave until the completion of six months of his/her probationary period, except with the prior approval of
      the Department Head and the City Manager.

               An employee who works an approved Alternative Work Schedule (AWS) and takes a full workday
      of sick leave on a regularly scheduled workday must use the amount of sick leave consistent with the


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normal hours worked in a day on the employee's core work schedule (e.g., if an employee works four 10-
hour days and requests sick leave on one of his/her regular workdays, the employee must take 10 hours
of sick leave on that day).

        c.   Use of Sick Leave
             Conditions under which sick leave may be taken are:

             1. Personal illness.

           2. Illness of a child, spouse, sibling, parent, parent-in-law, in loco parentis, or any other
person who resides in the employee's household.

             3. Visit to an outpatient unit, a doctor's office, or a therapy session.

             4. Birth or placement of a child for adoption or foster care.

        d. Proof of Need
            Any employee who desires to use consecutive days of sick leave equivalent to the number of
days in the employee's normal workweek (e.g., four days, five days, etc.) shall submit written medical
documentation confirming the illness or injury and the employee's inability to report to work in order to
be granted such leave.

           For shorter periods of absence, caused by illness or injury, the employee's Department Head
may accept the employee's oral statement as to the reason for the absence. However, the Department
Head may require medical certification if it is deemed appropriate.

        e. Advancement of Sick Leave
            In exceptional cases, a non-probationary classified employee or unclassified management
employee may be advanced, with prior approval from his/her Department Head and the City Manager,
unearned paid sick leave for a serious health condition as defined under the City's Family Medical Leave
Act (FMLA) policy. An employee requesting an advancement of sick leave will be required to provide
medical certification from the employee's treating physician and be eligible for and be in Family Medical
Leave (FMLA) status.

             Upon returning to work, the employee shall not be permitted to use accrued sick leave until
the debt to the City has been repaid. In the event an employee is terminated from City employment
before the debt to the City is repaid, the remaining portion of unearned paid sick leave shall be deducted
from the employee's unpaid salary, accrued annual leave, compensatory time, or retirement contributions
owed to the employee. The City must give the employee or former employee written notice of the
deduction and an opportunity to respond within three days.

           An employee requesting an advancement of sick leave must submit such request in writing
and complete a Recovery of Employee Debt Agreement.

        f.   Payment for Unused Sick Leave
             An employee who terminates from the City under any circumstances other than retirement
shall not receive payment for unused sick leave.

              Upon retirement from the City service, a classified employee and unclassified management
employee shall be paid 25 percent of the sick leave which he/she has accumulated to his/her credit as of
the date of retirement. For the purposes of this section, the definition of "retirement" shall be that which
is set forth in Section 1000, Retirement Benefits.

        g. Use of Sick Leave When on Annual Leave
           See Section 702.3, Illness/Injury Prior To/During Annual Leave.

        h. Family Medical Leave Act Eligibility




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                  Certain absences chargeable to sick leave may also be eligible for entitlement under the
      Family Medical Leave Act (FMLA) during part or all of the absence. See Section 713, Family Medical
      Leave Act for more information.

              i.   Donated Annual Leave Program
                   The Donated Annual Leave Program provides a procedure for classified employees and
      unclassified management employees who have depleted their leave balances due to unforeseen
      circumstances to receive donations of annual leave from their coworkers to help ensure continuing
      income for the employee. The program is supplemental in nature and depends entirely upon voluntary
      donations by other classified employees and unclassified management employees.

                   Classified employees and unclassified management employees who have exhausted all of
      their accrued annual, sick, compensatory, and personal leave as a result of unforeseen personal illness or
      injury or the unforeseen illness or injury of an immediate family member, as outlined in the Family
      Medical Leave Act (FMLA), which requires the presence of the employee are eligible to receive annual
      leave donations under this program. (See Section 713, Family Medical Leave Act)

                  Under this program, donated annual leave hours are converted to dollars at the donating
      employee's rate of pay and the employee receiving the donation is paid at his/her rate of pay.

                  1. Requesting Leave
                      A Department Head may make a request to the Human Resources Department for
      annual leave donations for an employee that meets the eligibility requirements. Requests for donations
      must be made on the Donated Annual Leave Program Request Form available on CityNet and from the
      Human Resources Department. The Human Resources Department will verify all information submitted
      and issue a Citywide request for annual leave donations for the employee.

                      An employee may receive no more than 12 weeks (60 workdays) of donated leave within
      a 12-month period under the Donated Annual Leave Program policy, consistent with the guidelines of the
      Family Medical leave Act (FMLA).

                 2. Donating Leave
                     Employees desiring to donate leave in response to a request should do so by completing
      the Donated Annual Leave Program Donation Form and returning it to the Human Resources Department.

                      Only accrued annual leave may be donated as part of this program. An employee
      making a donation must have an annual leave balance of the equivalent of 40 hours of accrued leave
      remaining after the leave donation is deducted. An employee may only donate leave in one-hour
      increments. An employee who is terminating his/her employment and who has in excess of the
      maximum allowed annual leave accrued (240 hours) may not donate that excess leave under this
      program.

                      Making a leave donation is entirely voluntary. No employee will be required to donate
      leave to any other employee, and the identities of employees that have donated may not be revealed to
      other employees, including the recipient.

                      Leave donated for an employee will be deducted proportionately from all donors and will
      only be deducted from the donor's leave balance when and if it is used. The amount of leave deducted
      from the donor's leave balance will be indicated on the donor's paycheck/earnings statement stub.

      Section 704. Personal Leave
              Classified employees and unclassified management employees are eligible to use 16 hours of
      accrued sick leave each calendar year to attend to personal obligations. If the 16 hours of personal leave
      are not used during the calendar year, they convert back to accrued sick leave. An employee's
      paycheck/earning statement stub shows his/her accrued personal leave balance.

      Section 705. Compensatory Leave
             Non-exempt employees working in excess of 40 hours during a workweek may request
      compensatory time in lieu of pay for overtime hours worked. The request for compensatory time must


126
be approved by the Department Head or designee. Compensatory time for hours worked is one-and-
one-half (1½) times each hour of overtime worked.

705.1 Accrual of Compensatory Leave
         Employees may accumulate compensatory time up to a maximum of 40 hours. Upon reaching
the maximum limit of accumulated compensatory time, the employee will receive overtime pay as stated
in Section 600, Compensation.

705.2 Scheduling of Compensatory Leave
         Employees are required to request compensatory leave in advance and may only utilize time up
to the total number of hours accrued at the time leave is taken. Employees should make the leave
request as far in advance as required and in the manner determined by departmental procedure. In
scheduling compensatory leave, the City will attempt to meet an employee's scheduling preference;
however, the final authorization is at the discretion of the Department Head or his/her designee based on
the operational needs of the Department.

        An employee who works an approved Alternative Work Schedule (AWS) and takes a full workday
of compensatory leave on a regularly scheduled workday must use the amount of compensatory leave
consistent with the normal hours worked in a day on the employee's core work schedule (e.g., if an
employee works four 10-hour days and requests compensatory leave on one of his/her regular workdays,
the employee must take 10 hours of compensatory leave on that day).

705.3 Payment for Accrued Compensatory Leave
      An employee will be paid for accrued compensatory leave pursuant to Section 600,
Compensation.

Section 706. Bereavement Leave
        Classified employees and unclassified management employees will be granted bereavement leave
and excused from work with pay for the equivalent of up to three working days following the death of the
employee's spouse/domestic partner, child/stepchild, parent/stepparent, parent-in-law, sibling/half-sibling
or stepsibling, daughter/son-in-law, grandparent, grandchild, legal guardian, in loco parentis, or any
other person who resides in the employee's residence and is financially dependent upon the employee.
The employee shall request use of bereavement leave in the manner determined by departmental policy.
Bereavement leave will not be deducted from any other leave earned by the employee.

         If an employee needs additional time off from work following the three days of bereavement
leave, the first two working days of additional time off may be taken as sick leave. Any further approved
time off must be taken as annual leave.

        A working day shall be considered the normal hours an employee works in a regular workday or
an approved Alternate Work Schedule workday (e.g., if an employee works four 10-hour days on his/her
alternate Work Schedule, one day of bereavement leave will be 10 hours).

Section 707. Holiday Leave
         a. Observed City Holidays
            Classified employees and unclassified management employees shall receive 8 hours of paid
holiday leave for the following 10 holidays observed by the City:

              Holiday                                 Day/Date Observed
              New Year's Day                          January 1
              Martin Luther King Jr. Day              Third Monday in January
              Presidents Day                          Third Monday in February
              Memorial Day                            Last Monday in May
              Independence Day                        July 4
              Labor Day                               First Monday in September
              Veterans Day                            November 11
              Thanksgiving Day                        Fourth Thursday in November
              Thanksgiving Friday                     Fourth Friday in November


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                     Christmas Day                             December 25

                   The standard observance of a holiday shall be on the day on which it occurs as shown above.
      If the New Year's Day, Independence Day, Veterans Day, or Christmas Day holiday falls on a Saturday or
      Sunday, a substitute holiday will be observed. If the holiday falls on a Saturday, the preceding Friday is
      the substitute holiday and observed as a holiday for that year for each eligible employee. If the holiday
      falls on a Sunday, the following Monday is the substitute holiday and observed as a holiday for that year
      for each eligible employee.

                   In addition to the paid holiday leave for observed or substitute holidays as listed above, each
      classified employee and unclassified management employee shall receive 12 additional hours of
      discretionary floating holiday pay to be used within the calendar year, with prior approval of the
      supervisor. Employees should make the leave request as far in advance as required and in the manner
      designated by Departmental procedure. In scheduling discretionary floating holiday leave, the City will
      attempt to meet an employee's scheduling preference; however, the final authorization is at the
      determination of the Department Head or his/her designee based on the operational needs of the
      Department.

                   Holiday leave will not be deducted from any other leave earned by the employee. The City
      Manager is authorized to designate additional days as observed City holidays, provided it is in the best
      interest of the City.

              b. Use of Holiday Leave
                  City offices will be officially closed on the 10 observed or substitute holidays listed in Section
      (a) above; and unless otherwise scheduled to work in support of City services or events, classified
      employees and unclassified management employees must take holiday leave on those official or
      substitute holidays when offices are closed.

                    An employee who works an approved Alternative Work Schedule (AWS) and takes holiday
      leave when City offices are closed may use no more than 8 hours of observed/substitute holiday leave on
      that day, and must use annual, compensatory, personal, or discretionary floating holiday leave for the
      remaining hours consistent with the normal hours worked in a day on the employee's core work schedule
      (e.g., if an employee works four 10-hour days in a regular workweek and one day is an observed or
      substitute holiday, the employee must take 8 hours of observed/substitute holiday leave and 2 hours of
      annual, compensatory, personal, or discretionary floating holiday leave to equal the 10-hour day).

            Under no circumstances may the total holiday leave used by a classified employee or unclassified
      management employee exceed 92 hours in a calendar year.

              c.   Working on an Observed or Substitute Holiday
                   See Section 600, Compensation.

               d. Holiday on Regularly Scheduled Day Off
                   If an observed or substitute holiday falls on a non-exempt or exempt classified employee's or
      unclassified management employee's regularly scheduled day off, the employee shall receive eight hours
      of holiday leave on another day to be taken in the calendar year in which the holiday occurs. If both the
      substitute and actual holiday fall on an employee's regularly scheduled days off, the employee may
      receive eight hours of holiday leave on another day for only one of those days, not both.

      Section 708. Military Leave
               Any employee who is a member of any United States Military Reserve or National Guard Unit and
      is required to engage in training exercises will be granted military leave not to exceed two weeks in any
      one year. Such employee, for each regular working day or holiday that he/she is required to engage in
      training, shall be paid his/her full regular salary. Such leave will not be deducted from any other leave
      earned by the employee. Leave without pay may be granted to a classified employee or unclassified
      management employee called for military service other than training exercises.

      Section 709. Jury Duty Leave



128
        Any classified employee or unclassified management employee called upon for jury service shall
be granted leave for that purpose for each day that he/she is required to report for jury service and shall
be paid for each such day his/her full salary. Where the release from jury service on any given day will
permit an employee to reach his/her City office or work site one hour or more prior to the end of his/her
regular workday, he/she shall report for work. Such leave will not be deducted from any other leave
earned by the employee.

Section 710. Leave of Absence Without Pay
         In the discretion of the Department Head or designee, requests for leave of absence without pay
for periods of up to five workdays may be granted. The Department Head must notify the City Manager
of all requests granted.

         Requests for leave of absence without pay of more than five days not to exceed six months must
be made in writing to the City Manager, who may approve the request at his/her discretion. In cases
exceeding five workdays, an employee will be required to pay the cost incurred by the City for his/her
own medical and dental insurance, long-term care insurance, life insurance, disability insurance, and
other fringe benefits.

Section 711. Official Leave With Pay (Administrative Leave)
         The City Manager or designee may grant official leave with pay for the purpose of having a
classified employee or unclassified management employee attend to matters related to official duties.
Such leave will not be deducted from any other leave earned by the employee.

Section 712. Workers' Compensation
       See Section 1500, Work Related Injuries.

Section 713. Family & Medical Leave Act (FMLA)
       The purpose of family or medical leave is to balance the demands of the workplace with the
needs of family. It is the policy of the City of Gaithersburg to grant family and medical leave to
employees, in accordance with the Family & Medical Leave Act of 1993.

713.1 Policy
         An eligible employee is entitled to family or medical leave paid, unpaid, or a combination of paid
and unpaid for the birth of a child and to care for such child; for the placement of a child for adoption or
foster care; to care for the employee’s seriously-ill child, spouse, sibling, parent, parent-in-law, or in loco
parentis; or because of a serious health condition that makes the employee unable to perform his or her
essential job functions; a qualifying “exigency” for a covered family member on active duty for short-
notice deployment, military events, and post-deployment activities; and to care for a spouse, son
daughter, parent or next of kin who is a member of the armed forces and is undergoing medical
treatment or is medically unfit to perform military duties due to an injury or illness incurred while on
active duty.

          An employee can take up to twelve (12) weeks of leave in a 12-month period under this policy.
The 12-month period for family or medical leave will commence with the first use of family or medical
leave. Each time an employee takes family or medical eligible leave, the amount of leave taken is
subtracted from the 12 weeks of available leave, and the balance remaining is the amount the employee
is entitled to take for the remainder of the 12-month period.

        An employee who is the spouse, son, daughter, or parent can take up to 12 weeks of unpaid
leave for certain situations related to a “qualifying exigency” of a covered military member, such as short-
notice deployments and post-deployment activities.

         An employee who is the spouse, son, daughter, parent or next of kin of a covered service
member can take up to 26 weeks of unpaid leave in a single 12-month period to care for the service
member, provided that the total number of weeks of leave to which both a husband and wife may take to
care for a service member may not exceed 26 workweeks in a single 12-month period.

        During an approved family or medical leave, an employee may continue their City sponsored
benefits at the same rate as an active at work employee.


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              Neither sick nor annual leave shall accrue to an employee during a term of family or medical
      leave without pay.

               At the expiration of the family or medical leave, the employee has the right to, and shall be
      reinstated to, the position he/she vacated, if the position still exists; or, if not, to any other vacant
      position in the same class.

              If a husband and wife both work for the City, the amount of family or medical leave entitlement
      which the husband and wife may take for those purposes shall not exceed a combined total of twelve
      (12) weeks leave in a 12-month period.

      713.2 Procedures
               a. Employee Request for Leave
                   1. Whenever the need for family or medical leave is foreseeable, the employee will notify
      his/her supervisor at least 30 days in advance of when the leave is to begin, or as soon as possible and
      practicable. An employee undergoing planned medical treatment is required to make a reasonable effort
      to schedule the treatment so as to minimize disruption to the City's operation.

                   2. If an employee fails to provide 30 days notice for foreseeable leave with no reasonable
      excuse for the delay, the leave request may be denied up to 30 days from the date the employer receives
      verbal notice.

                  3. If the need for family or medical leave is not foreseeable, the employee is required to
      follow the Department's regular call-in procedures for reporting an absence, unless there are unusual
      circumstances preventing the employee from doing so.

                   4. If any case in which the necessity for leave due to active duty of a family member is
      foreseeable, whether because the spouse, or a son, daughter, or parent, of the employee is on active
      duty, or because of notification of an impending call or order to active duty in support of a contingency
      operation, the employee shall provide such notice to the employer as is reasonable and practicable.

                  5. Requests for family or medical leave must be submitted to the Department Head via the
      Family or Medical Leave Request Form. Such request must be given by the employee or by the
      employee's representative (e.g., spouse, family member, or responsible party) if the employee is unable
      to give such notice personally.

                     6. Upon request for family or medical leave, the Department Head will forward the request
      to the Human Resources Director who will confirm the employee's eligibility based on the date the
      requested leave is scheduled to commence, or to confirm the employee's eligibility based on a projection
      that the employee will be eligible on the date leave would commence, or may advise the employee when
      the eligibility requirements are met.

                  7. The employee has satisfied the notification requirement, even if he/she is not eligible for
      family or medical leave at the time the request is submitted.

                   8. Upon receiving notice from an employee of his/her need to take family or medical
      qualifying leave, the Human Resources Director shall respond with memorandum which provides
      information which the employee needs to know about his/her responsibilities while on family or medical
      leave. The memorandum shall include:

                         (a) A requirement that the employee provide certification of medical necessity for the
      leave by providing a Certification of Physician or Practitioner Form by their health care provider within 15
      days of the request and that failure to do so may result in continuation of the leave being denied until the
      certification is received.

                       (b) A requirement that the employee provide periodic reports of his/her status and
      intent to return to work to his/her designated Department Head/designee;



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                 (c)   Information regarding the required use of any accrued leave the employee may
have;

                (d) Provide information on health insurance premium payments of the employee's
portion while on unpaid leave;

               (e) Provide information on the requirement of a fitness-for-duty certification before the
employee can return to his/her position;

                 (f)   Provide information that if the employee should not be medically able to perform
the essential functions of the position held prior to the leave, or to a comparable position; and

                 (g) Notice of the consequences of the fraudulent use of family or medical leave which
is termination on the first offense.

                 The employee is required to sign this memorandum acknowledging the receipt of a copy
of it and his/her understanding of its contents.

        b. Certification of the Serious Health Condition
            1. The City will require medical certification to support a claim for leave for an employee's
own serious health condition or to care for the serious health condition of an immediate family member
as provided for in the Certification of Physician or Practitioner Form. Human Resources will make this
request in writing. The employee is responsible for:

                 (a)   Providing this form to the Human Resources Department within 15 calendar days
of the request; or

                 (b)   For providing a reasonable explanation for the delay.

                  Failure to provide timely certification may result in a denial of continuation of leave until
the certification is submitted. Disciplinary action may be taken against the employee for being on
unauthorized leave of absence.

              2. In its discretion, the City may require a second medical opinion and periodic
recertification at the City's expense. If the first and second opinions differ, the City, at its own expense,
may require the binding opinion of a third health care provider, approved jointly by the City and the
employee or the employee's representative. The City's health care provider may contact the employee's
health care provider for clarification of any certification. Additional information will not be requested by
the City's health care provider.

        c.  Recertification of Serious Medical Condition
            The Human Resources Director may request the employee obtain recertification at any
reasonable interval, but not more than every 30 days unless:

             1. The employee requests an extension of leave; or

           2. The circumstances of the original certification have significantly changed (e.g., duration,
nature, complications of illness); or

            3. The Human Resources Director has received information which casts doubt on the
continuing validity of the certification; or

            4. The employee is unable to return to work after Family or Medical Leave because of the
continuation, recurrence, or onset of a serious health condition thereby preventing the recovery of health
insurance premiums made by the City on the employee's behalf.

      d. Protection of Information
         In order to protect employee health information, only a Human Resources profession or
management official will contact health care providers in order to obtain medical certifications. Under no


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      circumstances may the employee's direct supervisor contact health care providers. Those permitted to
      contact health care providers may not ask for additional information beyond what is required in the
      certification form.

              e. Periodic Reporting Required of Employee
                  The Human Resources Director shall require an employee on Family or Medical Leave to
      report periodically on his/her status and intent to return to work by contacting the employee's
      Department Head/designee.

                    Failure of an employee to comply with the reporting requirements of this procedure may
      result in disciplinary action up to and including termination.

              f.   After Expiration of Family or Medical Leave Entitlement
                   If the employee advises the Department Head or designee that he/she does not intend to
      return to work, the employee shall be asked to confirm that intent in writing. Employees who do not plan
      to return to work at the expiration of family or medical leave should notify their supervisor no later than
      the expiration of leave. The employee will then be terminated, and the employee's entitlement to
      reinstatement, continued leave, and all other benefits will cease. The employee shall be directed to
      contact the Human Resources Director regarding COBRA health insurance coverage.

                   Failure to return to work without giving adequate notice at the expiration of the leave may
      result in termination. If the employee is unable to return to duty to perform the essential functions of
      his/her position because of a physical or mental condition, including the continuation of a serious health
      condition, the City's obligations under the Americans with Disabilities Act (ADA) will govern.

              g. Leave Entitlement/Usage
                 1. Family or Medical Leave will run concurrent with a workers' compensation absence.

                   2. Under some circumstances, employees may take family or medical leave intermittently –
      which means taking leave in blocks of time, or by reducing the normal weekly or daily schedule. Where
      family or medical leave is for the birth or placement of a child for adoption or foster care, use of
      intermittent leave is subject to the employer's approval, will be considered on a case-by-case basis, will
      be based on the needs of the employer, and is limited to a period of six months. Family or medical leave
      may be taken intermittently whenever it is medically necessary to care for a seriously ill family member,
      or because the employee is seriously ill and unable to work. If leave is requested on this basis, however,
      the City may require the employee to transfer temporarily to an alternative position which better
      accommodates recurring periods of absence or a part-time schedule, provided that the position has
      equivalent pay and benefits.

                   3. If requested, family or medical leave must be granted to an employee in a permanent
      position working at least 20 hours per week with at least one year of service with the City. The 12-month
      period for family and medical leave will commence with the first use of family or medical leave.

                  4. For part-time employees and those who work variable hours, the family or medical leave
      entitlement is calculated on a pro-rata or proportional basis (e.g., an employee who is scheduled to work
      20 hours per week is entitled to 240 hours).

                  5. Employees requesting family or medical leave are required to exhaust all accrued sick
      leave, annual leave, compensatory leave, or other approved leave, as appropriate, prior to the use of
      leave without pay.

               h. Family Leave
                  1. Family leave used in connection with the birth or the placement of a child for adoption or
      foster care must be completed within 12 months of the date of the birth or placement of the child.

                   2. Family leave may be taken intermittently or on a reduced schedule, only with the
      supervisor's approval.




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            3. Employees may request family leave as needed under this procedure but are guaranteed
family leave only so long as the cumulative total of family or medical leave absences do not exceed 12
weeks during a 12-month period.

        i.   Medical Leave
             1. As a general rule, where inpatient care is not involved, absences of more than three days
(and requiring the continuing treatment of a health care provider) for the employee's serious health
condition or for the care of a sick family member will be considered eligible for medical leave.

             2. Prenatal care is explicitly included; routine physical exams are explicitly excluded.

           3. Employees may request medical leave as needed under this procedure but are
guaranteed medical leave only so long as the cumulative total of family or medical leave absences does
not exceed 12 weeks during a 12-month period.

            4. Nothing in this policy limits the right of employees to request sick leave in order to
provide necessary care and attendance to a sick family member under existing sick leave policies.

             5. An employee will be required to provide medical certification from a health care provider
indicating the need for medical leave, the continuation of medical leave, and/or the ability of the
employee to return to work.

                 (a) Medical certifications must state, in the case of the employee's serious health
condition, that he or she is unable to perform the functions of the position.

                (b) Where the employee is requesting medical leave to care for a seriously ill family
member, the health care provider must either certify that the third-party care is required or that the
employee's presence would be beneficial to the patient. Such certification, in conjunction with an
employee's statement of the care he/she will provide, will be sufficient to satisfy this requirement.

                 (c) If intermittent leave or leave on a reduced schedule is required, the medical
certification must describe the treatment regimen provided (i.e., doctors' visits, therapy, etc.).

             6. Medical leave will be granted on an intermittent basis or on a reduced work schedule if
certified as necessary by the health care provider.

        j.    Continuation of Benefits
              1. Employees on family or medical leave whose health insurance coverage level changes
(i.e., individual to two party) are responsible for filing the appropriate health insurance forms within the
specified time period. Employees whose coverage level increases are responsible for the increased
employee contribution.

              2. During the leave period, the City will continue coverage under the health insurance plan
in which the employee is participating prior to going on leave, at the level and under the conditions
coverage would have been provided, if the employee had not gone on leave. If an employee is in a paid
leave status, the employee's share will continue to be paid through payroll deduction. Employees who
are in a leave without pay status must submit premiums to Human Resources for all applicable benefits
(i.e., health, dental, long-term care, medical savings account, dependent care, and personal cell phone)
by the first of each month. Health insurance coverage will be canceled after a required payment is more
than 30 days late. Payment must be made to the City of Gaithersburg Human Resources Department, 31
South Summit Avenue, Gaithersburg, MD 20877, and must be in the form of a personal check or money
order.

            3. If health insurance coverage lapses due to nonpayment of the required premium or
employee's cancellation of coverage, the employee may request restoration of health insurance upon
return from leave. Health insurance coverage will be restored effective the first day of the month
following the employee's return from family or medical leave. A written request to restore health
insurance must be received by the Human Resources Department within 60 days of returning to work.



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                   4. An employee that chooses not to return to work at the expiration of the family or medical
      leave will be terminated from the City's health and dental insurance and will be required to reimburse any
      contributions to health and dental insurance made by the City while the employee was in a leave without
      pay status. An employee that chooses to return to work in a capacity that does not meet the eligibility
      requirements for health and dental insurance or chooses not to return to work will be eligible for COBRA
      (Consolidated Omnibus Budget Reconciliation Act) coverage.

                  5. Employees who terminate employment while on family or medical leave will be eligible
      for COBRA if they meet COBRA eligibility requirements. The effective date for COBRA coverage will be
      based on the date of termination.

              k. Alternate duty
                  The City may not require, but an employee with a serious health condition may voluntarily
      agree, to perform "alternate duty" work in order to accommodate his/her circumstances. Time spent
      performing alternate duty work does not count against an employee's FMLA leave entitlement.

              l.  Return to Former Position
                  After the expiration of the employee's entitlement to 12 weeks of family or medical leave
      within the 12-month period, employees must return to duty. If the employee is unable to return to duty
      to perform the essential functions of his/her position because of a physical or mental condition, including
      the continuation of a serious health condition, the City's obligations under the Americans with Disabilities
      Act (ADA) will govern.

               m. Return to Work Procedure
                    1. For family or medical leave due to the employee's own serious medical condition and
      upon being released by his/her personal physician, the employee is required to provide a written
      certification by his/her personal health care provider of fitness to return to work. This certification must
      indicate any restrictions of the employee's ability to perform the essential functions of his/her position
      and specifically address the employee's ability to perform the essential functions of his/her job.
      Additionally, if an employee takes intermittent leave under the FMLA – such as a few days each month –
      and reasonable job safety concerns exist, the City may require the employee to turn in a fitness-for-duty
      certification before returning to work. This certification shall be provided to the City's Human Resources
      Director.

                    2. The employee shall not be restored to his/her position prior to receipt of written
      certification from a health care provider and/or a fitness-for-duty certification and until any applicable
      Americans with Disabilities Act (ADA) considerations are resolved.

                   3. An employee on family or medical leave must be returned to the same or an equivalent
      position as that held when the leave commenced. The City cannot guarantee that the employee will be
      returned to his/her original job. There is an exception to this provision in the case of key employees,
      who may be denied job restoration if such denial is necessary to prevent substantial economic harm to
      the City. The designation of an employee as a key employee shall be made by the Department Head (or
      the appointing authority in the case of a Department Head who is requesting leave) as soon as practical
      after the Department Head (or appointing authority) learns of the need for use of family or medical leave.

                   4. Any exception to this provision requires the approval of the Human Resources Director
      prior to the employee's return to work. Departments requesting permission to return an employee to a
      different but equivalent position must provide the Human Resources Director with detailed justification of
      the reason the employee cannot be returned to his/her former position.

              n. Recordkeeping/Time & Attendance
                   1. The Human Resources Department will be responsible for maintaining records of family
      and medical leave, for tracking the amount of family and medical leave used within the 12-month period,
      and for notifying the employee in writing that family or medical leave is being designated.

                   2. In addition to the type of leave requested (annual, sick, compensatory, or leave without
      pay), the leave request form should include a notation that the absence is for family or medical leave.



134
            3. Time and attendance records should be coded with the routine codes for sick leave,
annual leave, compensatory leave, or family or medical leave.

             4. When leave is taken intermittently or on a reduced schedule, only the time actually taken
as family or medical leave may be charged against the employee's entitlement.

        o. Accrual of Annual/Sick Leave
           An employee will not accrue any annual or sick leave during unpaid family or medical leave.

          p. Consequences to the Employee for Fraudulently Obtaining
              Family or Medical Leave
              An employee who submits fraudulent documentation to obtain family or medical leave is not
protected by the Family and Medical Leave Act job restoration or maintenance of health insurance benefit
provisions. Fraudulent requests for family or medical leave will be considered a violation of City policy
and will result in termination on the first offense. Fraudulent documentation, for example, would include
falsified or forged Certification of Physician or Practitioner Forms.




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                      PERSONNEL RULES & REGULATIONS MANUAL

                                           SECTION 800
                                       EMPLOYMENT CHANGES

      Section 801. Introduction
               The job status of an employee may change several times during their course of employment with
      the City. These changes may be due to a transfer, a promotion, a reduction, an acting appointment, or
      separation from employment. Any change in job status shall be implemented via a properly completed
      and authorized Personnel Action Form. All personnel actions should be effective at the beginning of a
      pay period, except as otherwise provided.

      Section 802. Promotions
              a. Employees who meet the following requirements may make application for and/or be
      considered for a promotion:

                  1. Meets the minimum qualifications for the job or has clearly demonstrated the ability to
      perform the job.

                  2. Has a satisfactory record of performance in his/her current position.

              b. An employee's expressed interest in a position will not jeopardize his/her current position or
      future opportunities.

               c. An employee who makes application for a promotion or transfer may be required to take job-
      specific testing.

              d. An employee is not required to notify his/her present supervisor when applying for a
      promotion or transfer; however, the employee must have the approval of his/her present supervisor if
      he/she schedules appointments, interviews, etc., during regular work hours. Such scheduling should be
      at a time when it will cause the least disruption of work and may be limited to a reasonable number of
      interviews by his/her supervisor.

               e. After an employee is offered and accepts a promotion, a Personnel Action Form must be
      initiated by the position supervisor and approved by the Department Head.

              f. The performance of an employee who has received a promotion shall be closely monitored
      by his/her supervisor and the employee shall receive a written performance evaluation from his/her
      supervisor no later than six months from the date of the promotion. If the employee who was promoted
      does not meet performance requirements in the higher position, an improvement plan must be developed
      during the evaluation process and the employee may be placed in a probationary status. If the required
      improvement is not achieved, other action may be recommended by the supervisor, up to and including
      termination.

               g. Certain classifications are identified in a progression series where promotion to the next
      higher level is based on the employee’s satisfactory attainment of specified education or experience.
      Employees promoted under these circumstances need not have a six-month performance evaluation in
      the new position.

            Adjustments to an employee's compensation during a promotion are covered in Section 600,
      Compensation.

      Section 803. Reclassification




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         Positions may evolve over time resulting in job responsibilities being performed that are
significantly different from those associated with the current job description. Employees, supervisors,
Department Heads, or the Human Resources Director may seek the reclassifications of positions, typically
during the budget process. The procedures for submitting a reclassification request are detailed in
Section 400, Classification Plan. Adjustments to an employee's compensation during a reclassification are
covered in Section 600, Compensation.

Section 804. Transfers
         An employee may be transferred to a different position in the same class or to a different class in
the same grade after applying and approved for a vacant position in the same or different activity,
division, or department. Transferring employees retain the same employment anniversary date.

       A Personnel Action Form to transfer the employee must be initiated by the position supervisor
and approved by the Department Head.

         If an employee transfers from one department to another, within 30 days of the employee's
transfer the department from which the employee has transferred should complete a performance
evaluation covering the employment period until the date of transfer. Receiving departments should
complete a second performance evaluation covering the period from the date of the transfer until the
employee's next regularly scheduled performance evaluation. The employee's performance based pay
adjustment will be based on the combined results of both evaluations. Evaluations should be conducted
according to the guidelines set forth in Section 1200, Performance Evaluations.

      Adjustments to an employee's compensation during a transfer are covered in Section 600,
Compensation.

Section 805. Demotion
         For personal reasons, or under certain circumstances, an employee may wish to apply for a
voluntary demotion to another position. A demotion request may also be initiated by a Department Head
when the employee is not rendering satisfactory service in the position he/she holds; when the employee
loses a certification or license required to do essential job functions; in accordance with reduction-in-force
procedures; or for disciplinary reasons.

       A Personnel Action Form to demote the employee must be initiated by the position supervisor
and approved by the Department Head.

       Adjustments to an employee's compensation in the event of a demotion are covered in Section
600, Compensation.

Section 806. Acting Assignment
        Occasionally, positions vital to the organization must be filled immediately on a temporary basis
in order to maintain effective operation of the organization. In such instances, another classified
employee or unclassified management employee may be temporarily appointed to assume some or all of
the responsibilities of the position for a period of time.

          Temporarily appointing a classified employee or unclassified management employee to another
position provides the employee an opportunity to obtain and/or enhance valuable skills, knowledge, and
abilities that will increase the employee's effectiveness in his/her current position as well as improve
his/her career opportunities with the City of Gaithersburg.

806.1 Procedures
      The following procedures should be followed in requesting an acting appointment:

       a. The Department Head shall submit a written request for the acting appointment to the
Human Resources Director. The written request must outline the critical needs which support the
temporary appointment, indicate the anticipated duration of the appointment, verify that the request




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      meets the criteria set forth in the definition of "acting assignment," and recommend an appointee who is
      a classified employee or unclassified management employee that meets the documented qualifications for
      the position, and who is capable of performing the full range of job duties of the position.

              b. The Human Resources Director will submit the request to the City Manager for approval. The
      City Manager must approve all requests for acting appointments.

               c. Assignment of an acting appointee is expected to be temporary in nature. The City
      recognizes that no employee can perform all the duties of two full-time positions, regardless of the
      classification of the position. Therefore, when an acting appointment calls for an employee to serve in
      two capacities, the City takes the reasonable position that the appointed employee will distribute his or
      her effort and time between the two positions and that the employee will not be able to perform all of
      the duties of his or her regular appointment in addition to the duties of the interim position.

              d. The employee and his/her supervisor shall mutually agree on the essential duties and
      responsibilities to be performed when an employee is appointed to serve in a dual capacity.

      806.2 Compensation
             Adjustments to an employee's compensation during an acting assignment are covered in Section
      600, Compensation.

      806.3 Return to Original Position
              At the end of the period of authorized acting capacity, the employee shall return to the position,
      grade, salary, and FLSA designation held prior to the acting capacity appointment with appropriate
      adjustments for merit pay increases received while in the acting capacity appointment.

      Section 807. Alternate Duty
              Alternate duty is defined as temporary work, which can be accomplished by an injured or ill
      employee within the stipulated medical or physical limitations, and without exposing others to the risk of
      being harmed. Alternate duty is further defined as temporary work, which when accomplished, will
      contribute to the fulfillment of the mission of the department as distinguished from "make work"
      assignments created solely to accommodate ill or injured employees.

              The Department Head and the Human Resources Director will determine, based on medical
      documentation, if alternate duty is available within the department or in another department.
      An employee must notify the Human Resources Director and Department Head or designee of their
      release for alternate duty by the employee's treating physician. An employee that is released for
      alternate duty but refuses the alternate duty assignment will record all time missed as annual leave.

             Employees released to alternate duty will be advised via the employee’s Department Head or
      designee if alternate duty is available.

              It is the responsibility of the employee to inform all health care providers of the City's alternate
      duty policy. Failure to do so may result in disciplinary action.

      Section 808. Change in Job Status – Part-Time Employees
              Requests to change a part-time or part-time intern employee's job status will be considered
      during the annual budget process.

             If a part-time employee is promoted to a classified or unclassified management position, the
      employee's prior part-time service is not credited toward the classified or unclassified management
      employment. The employee begins classified employee or unclassified employee status as a new hire.

      Section 809. Employee Resignation
             Resignations should be in writing, signed by the employee, and preferably submitted at least two
      weeks before the effective date. The resignation shall be forwarded by the Department Head to the




138
Human Resources Department and the City Manager. A brief, signed statement identifying the effective
date of the resignation is adequate. The reason(s) for resigning may be presented but is not necessary.
The Department Head/designee must also notify the Human Resources Department in writing via a
Personnel Action Form when an employee terminates.

         Employees who resign in good standing may be eligible to be rehired. Employees who resign in
lieu of termination will not be eligible for rehire.

        Employees who wish to withdraw their resignation must submit a written request to the
Department Head explaining the reasons for the desired withdrawal. If the Department Head decides to
rescind a resignation, the City’s Reemployment Opportunities guidelines will be followed.

Section 810. Involuntary Separation (Reduction in Force)
         Should the need arise, the City may be required to temporarily reduce the number of employees
in a Department and will attempt to do so with the least impact on employees. The City Manager is
authorized to release any employee on the City payroll because of lack of work or funds or abolishment
of position. The City Manager will consider first the types of activities to be curtailed and the services
thereby affected. Involuntary separation may be initiated by the Department Head due to shortage of
funds or work, the abolition of a position(s), or other material changes in the duties or organization, or
for related reasons which do not reflect unfavorably upon the service of the employee. The duties
performed by the employee may be assigned to other employees already working in the appropriate
classification.

Section 811. Dismissal, Suspension, or Demotion
       See Section 1400, Disciplinary Action.

Section 812. Death of Employee
         There are certain benefit rights for the survivor(s) or estate of employees who die during active
employment with the City. See Section 1500, Work Related Injuries, if the employee's death occurs on
the job.

         Department Heads must notify the Human Resources Department immediately of the death of an
employee. Department Heads may also contact the Employee Assistance Program (EAP) to request that
a representative be available on-site to assist co-workers in dealing with the employee’s death.
Departments may also wish to refer surviving family members to the Employee Assistance Program for
grief counseling. The Human Resources Department staff is also available to coordinate such services.

812.1 Survivor Retirement Benefits
          Each City retirement plan provides surviving beneficiaries and/or estate benefits. A copy of the
employee’s death certificate should be forwarded to the appropriate retirement plan administrator to
initiate survivor benefit process. The Human Resources Department will coordinate the completion of all
necessary paperwork for benefit claims with the deceased employee’s beneficiaries.

812.2 Life Insurance Death Benefits
        The Human Resources Department will process a claim with the City’s group life insurance carrier
upon the receipt of a death certificate from the beneficiary. If the death was accidental, the group life
insurance plan provides an additional Accidental Death & Dismemberment benefit.

812.3 Payment of Accrued Leave Upon Employee's Death
         The employee’s beneficiary or estate will receive the compensation for any time due during the
pay period during which the employee died. Depending upon the employee’s classification status, hours
of accrued but unused vacation and compensatory time leave will be paid in a lump sum on a subsequent
payroll disbursement.

        The Finance & Administration Department will calculate the employee's final paycheck and return
it to Human Resources. The Human Resources Department will deliver the check to the beneficiary listed




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      on the employee's most recent Designation of Beneficiary Authorized to Receive Final Payroll Check in the
      Event of Death Form.

      812.4 Health Insurance for Survivors
               The spouse and eligible dependents of a deceased employee may be eligible for continuation in
      the City’s group medical and dental insurance programs under COBRA eligibility until the limits are
      reached (see Section 900, Fringe Benefits). Participation must have existed prior to and be continuous
      and uninterrupted from the date of death of the employee.

      Section 813. Return of City Uniforms & Equipment
              Departments are responsible for obtaining all City-issued property (e.g., I.D. cards, keys,
      purchasing cards, tools, phones, manuals, computers, protective gear, etc.) during the termination
      process. A completed Out-Processing Form should indicate any City property not returned and the cost of
      each item listed. The cost of City property not returned by employees, as well as any tuition
      reimbursement required to be paid as indicated in the Tuition Assistance Policy (Section 1300), will be
      deducted from the employee’s final paycheck.

      Section 814. Exit Interview
                 All terminating employees are encouraged to schedule an appointment for an exit interview with
      the Human Resources Department before leaving the City. Exit interviews are one of the best ways to get
      true and honest feedback from employees. An employee's honest feedback will not result in
      repercussions from statements made during an exit interview and will not be used to prevent future
      eligibility for rehire. The exit interview is an integral part of the City’s employee retention efforts. The City
      is always looking for ways to keep its employees and feedback is valued.

              The Human Resources Department will provide an exiting employee with the following important
      information concerning benefits at the time of termination of City service:

               a. Medical/Dental Insurance
                   Medical/dental insurance coverage remains in effect after termination of employment through
      the end of the month for which payment is made for the coverage. An employee may continue his/her
      current coverage in the City's group medical and dental insurance programs under COBRA eligibility until
      the limits are reached (see Section 900, Fringe Benefits).

              b. Life Insurance
                 This coverage will terminate with employment.

              c.   Long-Term Care Insurance
                   This coverage will terminate with employment; however, the employee has the opportunity
      to convert the coverage to an individual long-term care plan under the City's group coverage.

              d. Retirement Plans
                   The employee may keep his/her funds in his/her City retirement account, withdraw the
      funds, or transfer the funds to another qualified plan.

      Section 815. Disbursement of Final Paycheck
              When an employee resigns his/her position, the earned salary or wages plus any other
      compensation (such as annual leave accrual) shall be due and payable on the next regular payday. When
      an employee is dismissed from employment, the earned salary or wages plus any other compensation
      (such as annual leave accrual) shall be due and payable no later than the fifth (5th) calendar day
      following dismissal. Exempt employees will be paid a proportionate part of that employee’s full salary for
      the time actually worked in the last week of employment. The employee’s final paycheck will be
      forwarded to the City’s Human Resources Department for disbursement.




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                PERSONNEL RULES & REGULATIONS MANUAL

                                         SECTION 900
                                       FRINGE BENEFITS

Section 901. Insurance Programs

901.1 Introduction
        The City provides classified employees and unclassified management employees with certain
group insurance programs and offers them the opportunity to voluntarily elect participation in other
optional insurance programs. These programs include a wide range of plans including health, dental,
long-term care, life, and other specialized insurance plans. The City strives to remain competitive in its
benefit programs and to maintain a reasonable level of cost sharing with employees. Payments for the
employee's share of insurance premiums of both provided coverage and elected optional programs are
made through payroll deduction during each payroll period.

901.2 Medical & Dental Insurance
         All classified employees and unclassified management employees are eligible for medical and
dental insurance through the City's group insurance providers. Employees may elect to enroll in either
single, two person (the employee + one dependent), or family coverage under one of the options
offered. The City retains the right to review the insurance policies on an annual basis and change
providers, change the type of plans, or institute other cost saving measures. Any changes to medical
insurance coverage, premiums, etc., are effective at the beginning of the fiscal year.

        The City's current medical insurance provider is United Health Care. Employees may choose
coverage under the HMO Plan or the PPO Plan. Monthly premiums for the City's group medical insurance
plans are a shared responsibility; the City pays eighty-five (85) percent of the lowest monthly premium in
each tier (single, two-person, or family) and the employee pays the remaining fifteen (15) percent. An
employee that selects coverage under another more expensive plan must pay the additional premium
cost.

         The City's current dental insurance provider is Assurant Employee Benefits, an indemnity plan
with a dental maintenance organization (DMO) option. Employees may select a dentist of their choice, or
using the DMO option, may receive increased savings for services provided if they select a participating
dentist. Monthly premiums for the City's group dental insurance plans are a shared responsibility; the
City pays eighty-five (85) of the lowest monthly premium in each tier (single, two-person, or family) and
the employee pays the remaining (15) percent.

        Employee paid medical and dental insurance premiums are paid with pre-tax dollars, thereby
reducing the employee’s taxable income and increasing the employee’s take-home pay.

       Information outlining the medical and dental benefit plan options is provided to eligible
employees at the time of employment and prior to the City's Open Enrollment period (see below).

         a. New Enrollments
             New employees have up to 30 calendar days to enroll in medical and/or dental insurance
coverage. Coverage is effective on the employee's first day of employment. If the employee's coverage
begins prior to the 15th of the month, he/she will be responsible for paying his/her portion of the
premium for that month (through payroll deduction). If the employee's coverage begins on or after the
15th of the month, the employee will begin paying his/her portion of the premium in the first paycheck of
the next month.

        An employee who does not enroll in the City’s medical insurance within thirty 30 calendar days of
his/her hire date, or who waives medical coverage and does not provide proof of other current medical




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      insurance coverage, will automatically be enrolled in employee only single coverage in the lowest cost
      health care plan. An employee who does not enroll in the City’s dental insurance within 30 calendar days
      of his/her hire date will not be able to enroll until the next open enrollment period (July 1) unless the
      employee has a qualified change in status.

             b. Reenrollment/Open Enrollment
                 Employees who do not initially enroll in a group medical and/or dental program when they
      begin employment with the City, or desire to transfer from one plan to another (for example, from the
      HMO to the PPO in the medical insurance plan) may do so during the annual open enrollment period.
      Open enrollment is conducted during the month of May each year, and all changes, transfers, etc.,
      become effective at the beginning of the fiscal year.

               c. Change Due to Qualifying Event
                  An employee and/or his/her dependent(s) may be able to enroll or disenroll in a medical or
      dental plan during the plan year if they experience a "qualifying event" as defined in the plan documents:

                    1.    Birth/adoption of a child
                    2.    Marriage
                    3.    Termination of employment of employee's spouse/domestic partner
                    4.    Divorce
                    5.    Death of spouse/domestic partner or other dependent
                    6.    Dependent child is no longer an eligible student
                    7.    Employee becomes eligible for coverage under spouse's/domestic partner's health/dental
      care (i.e., new    employment, spouse's/domestic partner's employer's open enrollment period, etc.).

                   A change due to a qualifying event must be made within 30 days of the qualifying event (i.e.,
      the date of the marriage or birth of the child, the effective date of the adoption or divorce, etc.).
      Appropriate documentation of the qualifying event will be required. If the change is not made within 30
      days, the employee must wait until the next annual open enrollment period to change medical and/or
      dental coverage. It is the responsibility of participating employees with medical and/or dental coverage to
      keep the Human Resources Department informed of all current dependent member information.

              d. Medicare Coverage
                  An employee and/or his/her spouse must enroll in Medicare coverage as soon as they reach
      the age of 65 and become eligible for Medicare Part A and/or Part B coverage. (The employee and/or
      spouse must provide proof of Medicare coverage to the Human Resources Department.) At that time,
      Medicare Part A and Part B become the primary medical insurer and the City's becomes the supplemental
      secondary medical insurer. The City may pay or contribute to the cost of the supplemental secondary
      insurance, but will not pay any of the Medicare premium.

              e. Contribution in Lieu of Medical/Dental Insurance
                  Employees who are covered by another medical and/or dental plan (outside of the City's
      coverage) must show proof of that coverage. Those employees may elect not to participate in the
      medical and/or dental plans offered by the City and may request that the City contribute a portion of its
      share of the cost of individual coverage under the City's medical and/or dental plan to a Retirement
      Health Savings (RHS) Plan, a non-taxable savings plan. The City contributes 50 percent of its cost of
      individual medical coverage and 100 percent of its cost of individual dental coverage to the RHS Plan.
      Employees may use monies contributed to the RHS Plan for eligible health, dental and long term care
      expenses not reimbursed through the employee’s insurance.

               f. End of Coverage
                  When an employee separates from City service, his/her medical and/or dental insurance
      coverage will end on the last day of the month following termination. See Section 901.7, COBRA for
      more information on continuation of coverage under the City's group plans.




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           For information on medical/dental insurance coverage at the time of retirement, please see
Section 1000, Retirement Benefits.

901.3 Long-Term Care Insurance (Unum)
         Long-term care is the assistance received when someone needs help with two or more activities
of daily living – such as dressing, bathing, going to the bathroom, eating, or moving about – or when
someone suffers a severe cognitive impairment. This care could be provided in the home, in an assisted
living or residential care facility, or in a skilled nursing facility such as a nursing home. Long-term care
insurance will assist the employee in paying these associated costs; it can help an employee preserve
independence and financial security, and can help relieve the employee's family members of the burden
of making decisions about how to pay for care.

         Long-term care insurance base plan coverage is provided free of charge to all classified
employees and classified management employees. Base plan coverage provides an employee with a
maximum benefit of $72,000 ($2,000 per month for facility care for a period of three years; 50%
coverage for home care). Employees also have the option of purchasing an inflation protection feature
and/or increased levels of coverage and benefit duration for themselves and/or long-term care insurance
coverage for their spouse/domestic partner at group rates; these costs are paid by the employee through
payroll deduction during each payroll period. Other family members of the employee (parents,
grandparents, siblings, children (18 or over), or the employee's spouse's/domestic partner's parents or
grandparents) are eligible to apply for long-term care insurance coverage at group rates by submitting
enrollment materials directly to the provider.

         a. New Enrollments
             New employees have up to 30 days to enroll in long-term care coverage. Employees who
enroll in the basic plan, as well as employees who select additional benefits up to and including $4,000
per month benefit amount and facility benefit duration of 3 or 6 years, are guaranteed issue of coverage
and are not required to complete a medical questionnaire. Employees who enroll after 30 days, as well
as those who choose to buy benefits over the guarantee issue limits ($5,000 or $6,000 per month benefit
amount and/or unlimited facility benefit duration) will be required to complete a medical questionnaire
and must be approved for coverage by the provider. An employee's spouse/domestic partner who is
applying for long-term care insurance coverage must always complete a medical questionnaire and be
approved for coverage by the provider.

        b. Open Enrollment
             Employees who do not initially enroll in long-term care coverage when they begin
employment with the City, or employees who desire to make a change in their coverage, may do so
during the annual open enrollment period. Open enrollment is conducted during the month of May each
year, and all changes, transfers, etc., become effective at the beginning of the fiscal year.

            Employees must complete a medical questionnaire and must be approved for coverage by
the provider whenever a change in guaranteed issue coverage is requested.

        c.  Qualifying Event
            An employee and/or his/her spouse/domestic partner may enroll or disenroll in long-term
care coverage during the plan year if they experience a "qualifying event. For information on qualifying
events, refer to the Medical/Dental insurance above.

         d. End/Continuation of Coverage
             Long-term care insurance coverage for the employee (and the employee's spouse/domestic
partner) end on the employee's last day of employment. However, the employee and his/her
spouse/domestic partner have the option of continuing long-term care insurance coverage under the
City's group plan when the employee has separated from City employment. If the employee desires to
continue coverage, he/she must assume the portion of the premium paid by the City. More information
on continuing long-term care insurance coverage will be provided to the employee during the exit
interview.




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                 For information on long-term care insurance coverage at the time of retirement, please see
      Section 1000, Retirement Benefits.

      901.4 Long-Term Disability Insurance
                Long-term disability insurance is provided as a source of income protection for all classified
      employees and unclassified management employees if an employee is injured on or off the job. This
      coverage will provide the employee with up to 60 percent of his/her salary, up to a maximum of $6,500
      per month, beginning 90 days after the onset of disability; however, income received from third party
      payees, such as Social Security, Workers' Compensation, etc., may be an offset to long-term disability
      benefits. This is an employer taxable fringe benefit; therefore, any income an employee receives from
      long-term disability insurance is not taxed. An employee’s long-term disability coverage is effective the
      first of the month following the employee’s hire date.

               Medical, dental, and life insurance benefits will be provided to the disabled employee on the
      same basis as an active employee. Long-term disability insurance benefits continue if an employee’s
      active service ends due to a disability for which benefits under the policy are or may become payable.
      Premiums for the employee will be waived while disability benefits are payable. In the event the
      employee does not return to active service, this insurance ends when the disability ends or when benefits
      are no longer payable, whichever occurs first.

               An employee that meets the definition of disabled is encouraged to apply for Family Medical
      Leave (FMLA). FMLA provides the employee job protection for up to twelve (12) weeks. At the
      expiration of FMLA, the employee has the right to, and shall be reinstated to, the position he/she
      vacated, if the position still exists; or, if not, to any other vacant position in the same class. An employee
      who is unable to, or who chooses not to, return to work at the expiration of his/her FMLA is subject to
      termination. (See Section 713, FMLA.)

                A disabled employee, as outlined in the City’s long-term disability policy that meets the City’s
      criteria for retirement would continue to be provided the same benefits as a retiree.

                An employee, as outlined in the City’s long term disability policy, that does not meet the City’s
      criteria for retirement would continue to be provided medical, dental, long term care and life insurance
      benefits on the same basis as an active employee, as long as the employee meets the long term disability
      policy’s definition of disabled.

               If an employee is unable to return to duty to perform the material duties of his/her position
      because of a physical or mental condition, including the continuation of a serious health condition, the
      City’s obligations under the Americans with Disabilities Act (ADA) will govern.

              Human Resources can assist any employee who wishes to apply for Long-Term Disability
      Benefits.

      901.5 Life Insurance
             Life insurance benefits are provided to all classified employees and unclassified management
      employees at no cost to the employee.

               a. Basic Life & Accident Insurance (CIGNA)
                    In the event of the employee's death due to natural causes or accident, the employee's
      beneficiary will receive three times the employee's annual salary up to a maximum of $350,000. In the
      event an employee suffers a severe bodily injury as a result of an accident, the employee's beneficiary
      will receive the maximum benefit, or portion thereof, depending on the injury sustained. If the
      employee's death or severe bodily injury is the result of an automobile accident and the employee is
      wearing a seatbelt, the employee's beneficiary will receive an additional benefit up to a maximum of ten
      (10) percent of the insured’s benefit not to exceed ten thousand ($10,000).




144
        b. Accidental Death & Dismemberment (CIGNA)
             In addition to the above policy, if an employee's death or severe bodily injury is due to an
accident, the employee's beneficiary will receive four times the employee's annual salary up to a
maximum of $250,000. If the employee's death or severe bodily injury is the result of an automobile
accident and the employee is wearing a seatbelt, the employee's beneficiary will receive an additional
benefit up to a maximum of ten (10) percent of the insured’s benefit not to exceed ten thousand
($10,000).

901.6 Unemployment Insurance
         Employees of the City may apply for Unemployment Insurance Benefits at the expiration of their
employment. Rules and regulations regarding eligibility are available through the State of Maryland’s
Division of Unemployment Insurance.

901.7 COBRA
        a. General Guidelines
             The City of Gaithersburg adheres to all requirements of the Consolidated Omnibus Budget
Reconciliation Act (COBRA) as they apply to City employees. The City is required to offer covered
employees and covered family members the opportunity for a temporary extension of health coverage at
group rates when coverage under the health plan (a medical and/or dental plan) would otherwise end
due to certain qualifying events.

            The covered employee may have the right to elect COBRA health plan continuation coverage
if the employee loses his/her City of Gaithersburg sponsored group health coverage because of a
termination of employment (for reasons other than the employee's gross misconduct) or a reduction in
hours of employment.

            The covered spouse of an employee may have the right to elect COBRA health plan
continuation coverage if the spouse loses City of Gaithersburg sponsored group health coverage because
of any of the following reasons:

           1. Termination of the City of Gaithersburg employee's employment (for reasons other than
gross misconduct) or reduction of the employee's hours of employment with the City of Gaithersburg.

            2. Death of the City of Gaithersburg employee.

            3. Divorce or, if applicable, legal separation from the employee.

            4. The employee becomes entitled to Medicare.

            The covered dependent child of an employee may have the right to elect COBRA health plan
continuation coverage if the dependent child loses City of Gaithersburg sponsored group health coverage
because of any of the following reasons:

            1. Termination of the employee's employment (for reasons other than gross misconduct) or
reduction of the employee's hours of employment with the City of Gaithersburg.

            2. Death of the employee of the City of Gaithersburg.

            3. Parents' divorce or, if applicable, legal separation.

            4. The City of Gaithersburg employee becomes entitled to Medicare.

            5. The dependent ceases to be a "dependent child" under the terms of the health plan.

        b. Employee, Spouse & Dependent Notifications Required




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                   In accordance with federal law, the employee, spouse, or other family member has the
      responsibility to notify the City of Gaithersburg Human Resources Department of a divorce, legal
      separation, or a child losing dependent status while covered by a City of Gaithersburg sponsored group
      health plan. This notification must be made within 60 days from whichever date is later, the date of the
      event or the date on which health plan coverage will be lost, under the terms of the insurance contract
      because of the event.

                  This notification must be made in writing and include the following information: the name
      of the covered employee, the name of the covered dependent, the plan affected, a description of the
      event, and the date of the event. Verifying documentation must accompany the notification, such as
      HIPPA certificate from another employer, or the fact page of a divorce or separation decree.

                   If this notification is not completed according to the above procedures and within the
      required 60-day notification period, then rights to continuation coverage will be forfeited. Employees
      should carefully read the dependent eligibility rules contained in their provider booklet so they are
      familiar with when a dependent ceases to be a dependent under the terms of the plan. The City of
      Gaithersburg will notify the City's sponsored health plan of the employee's termination of employment,
      reduction in hours, or death.

              c.   Election Period and Coverage
                   Once the City of Gaithersburg Human Resources Department has received notice a qualifying
      event has occurred, the Human Resources Department will notify covered individuals (also known as
      qualified beneficiaries) of their rights to elect continuation coverage. Each qualified beneficiary has
      independent COBRA election rights and will have 60 days to elect continuation coverage. The 60-day
      election window is measured from the later of the date health plan coverage is lost due to the event or
      from the date of COBRA notification. This is the maximum period allowed to elect COBRA, as the
      plan does not provide an extension of the election period beyond what is required by law. If
      a qualified beneficiary does not elect continuation coverage within this election period, then rights to
      continue health insurance will end and they will cease to be a qualified beneficiary.

                   If a qualified beneficiary elects continuation coverage, they will be required to pay the entire
      cost for the medical and/or dental insurance. The City of Gaithersburg is required to provide the qualified
      beneficiary with coverage that is identical to the coverage provided under the plan to similarly situated
      non COBRA participants and/or covered dependents. Should coverage change or be modified for non
      COBRA participants, then the change and/or modification will be made to their coverage as well.

              d. Length of Continuation Coverage – 18 Months.
                  If the event causing the loss of coverage is a termination of employment (other than for
      reasons of gross misconduct) or a reduction in work hours, then each qualified beneficiary will have the
      opportunity to continue coverage for 18 months from the date of the qualifying event.

              e. Social Security Disability
                   The 18 months of continuation coverage can be extended for an additional 11 months of
      coverage, to a maximum of 29 months, for all qualified beneficiaries if the Social Security Administration
      determines a qualified beneficiary was disabled according to Title II or XVI of the Social Security Act on
      the date of the qualifying event or at any time during the first 60 days of continuation coverage. In the
      case of a newborn or adopted child that is added to a covered employee's COBRA coverage, then the first
      60 days of continuation coverage for the newborn or adopted child is measured from the date of the birth
      or the date of the adoption. It is the qualified beneficiary's responsibility to obtain this disability
      determination from the Social Security Administration and provide a copy of the determination to
      the City of Gaithersburg Human Resources Department within 60 days after the date of
      determination and before the original 18 months expire.

                   This extension applies separately to each qualified beneficiary. If the disabled qualified
      beneficiary chooses not to continue coverage, all other qualified beneficiaries are still eligible for the
      extension. If coverage is extended, and the disabled qualified beneficiary has elected the extension, the




146
applicable premium rate is 150 percent of the premium rate. If only the non-disabled qualified
beneficiaries extend coverage, the premium rate will remain at the 100 percent level. It is also the
qualified beneficiary’s responsibility to notify the City of Gaithersburg Human Resources Department
within 30 days if a final determination has been made that they are no longer disabled.

        f.   Secondary Events
             Another extension of the 18 month continuation period can occur, if during the 18 months of
continuation coverage, a second event takes place (divorce, legal separation, death, Medicare
entitlement, or a dependent child ceasing to be a dependent). If a second event occurs, then the original
18 months of continuation coverage can be extended to 36 months from the date of the original
qualifying event date for eligible dependent qualified beneficiaries. If a second event occurs, it is the
qualified beneficiary’s responsibility to notify the City of Gaithersburg Human Resources Department in
writing within 60 days of the second event within the original 18 month COBRA timeline. In no event,
however, will continuation coverage last beyond three years from the date of the event that originally
made the qualified beneficiary eligible for continuation coverage. A reduction in hours followed by a
termination of employment is not considered a second event for COBRA purposes.

        g. Length of Continuation Coverage – 36 Months
            If the original event causing the loss of coverage was the death of the employee, divorce,
legal separation, Medicare entitlement, or a dependent child ceasing to be a dependent child under a City
of Gaithersburg sponsored group health plan then each qualified beneficiary will have the opportunity to
continue coverage for 36 months from the date of the qualifying event.

           h. Eligibility, Premiums, and Potential Conversion Rights
               A qualified beneficiary does not have to show they are insurable to elect continuation
coverage; however, they must have been actually covered by the plan to be eligible for COBRA
continuation coverage. An exception to this rule is if while on continuation coverage a baby is born or
adopted by a covered employee qualified beneficiary. If this occurs, the newborn or adopted child can be
added to the plan and will gain the rights of all other qualified beneficiaries. The COBRA timeline for the
newborn or adopted child is measured from the date of the original qualifying event. Procedures and
timelines for adding these individuals can be found in the employee's benefits booklet and must be
followed. The City of Gaithersburg Human Resources Department reserves the right to verify COBRA
eligibility status and terminate continuation coverage retroactively if the employee is determined to be
ineligible or if there has been a material misrepresentation of the facts.

              A qualified beneficiary will have to pay the entire applicable premium for continuation
coverage. These premiums will be adjusted in the future if the applicable premium amount changes. In
addition, if continuation coverage is extended from 18 to 29 months due to a Social Security disability,
the City of Gaithersburg can charge up to 150 percent of the applicable premium during the extended
coverage period. Qualified beneficiaries will be allowed to pay on a monthly basis. In addition there will
be a maximum grace period of thirty (30) days for the regularly scheduled monthly premiums. At the
end of the 18 months or three years of continuation coverage, a qualified beneficiary must be allowed to
enroll in an individual conversion health plan if an individual conversion plan is available at that
time.

        i.  Cancellation of Continuation Coverage
            The law provides COBRA continuation coverage will end prior to the maximum continuation
period for any of the following reasons:

             1. City of Gaithersburg ceases to provide any group health plan to any of its employees.

             2. Any required premium for continuation coverage is not paid in a timely manner.

            3. A qualified beneficiary first becomes, after the date of COBRA election, covered under
another group health plan that does not contain any exclusion or limitation with respect to any pre-
existing condition of such beneficiary other than such an exclusion or limitation which does not apply to




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      or is satisfied by such beneficiary by reason of the Health Insurance Portability and Accountability Act of
      1996.

                   4. A qualified beneficiary first becomes, after the date of COBRA election, entitled to
      Medicare.

                   5. A qualified beneficiary extended continuation coverage to 29 months due to a Social
      Security disability and a final determination has been made that the qualified beneficiary is no longer
      disabled.

                  6. A qualified beneficiary notifies the City of Gaithersburg Human Resources Department
      they wish to cancel COBRA continuation coverage.

                7. For cause, on the same basis that the plan terminates the coverage of similarly situated
      non-COBRA participants.

              j.   Notification of Address Change
                   To insure all covered individuals receive information in a timely manner, it is important that
      the employee promptly notifies the City of Gaithersburg Human Resources Department of any address
      change as soon as possible. Failure on the employee's part to do so will result in delayed COBRA
      notifications or a loss of continuation coverage options.

      Section 902. Retirement Plans
               Classified employees and unclassified management employees are eligible to enroll in all City of
      Gaithersburg retirement plans immediately upon hire. The City's retirement benefits administrator is
      ICMA-RC (International City/County Management Association-Retirement Corporation), which manages
      and administers retirement plans exclusively for the benefit of public sector employers and employees.
      For information on the Retirement Plans offered, see Section 1013, Retirement Plans.

      Section 903. Other Fringe Benefits

      903.1 Flexible Spending Accounts (HFS Benefits)
              Flexible Spending Accounts allow classified employees and unclassified management employees
      to pay for certain health, dental and dependent care expenses with pre-taxed dollars, which means that
      taxable earnings are reduced so the employee pays less taxes on earnings, thereby increasing take home
      pay. The maximum amount that can be set aside for health care expenses per calendar year is $3,000;
      and the maximum that can be set aside per calendar year for dependent care is $5,000. Employees
      wishing to participate in either of these plans must enroll/reenroll each January 1. The City of
      Gaithersburg pays all administrative costs.

      903.2 Employee Assistance Program (APS Healthcare)
              The City provides the Employee Assistance Program (EAP) as a free, simple, and confidential
      means for an employee and his/her family to deal with personal problems and sources of work/life stress.
      The EAP provides short-term professional, confidential counseling for employees and their family
      members at no out-of-pocket expense to the employee. The employee and each of his/her dependents
      may receive up to six free counseling sessions. If an issue requires referral to other resources, the EAP
      professional will work with the individual to identify the most appropriate and affordable resources to help
      meet the individual's needs.

              To speak with an EAP professional or to schedule an appointment, an employee should call 800-
      765-0770 and indicate he/she is a City of Gaithersburg employee. EAP services are available 24 hours a
      day, seven days a week. The EAP program is strictly confidential. The City pays the EAP provider base
      on the number of employees and does not receive any information regarding the names of the
      employees contacting the EAP.

      903.3 GFit Wellness Program




148
        The GFit Employee Wellness Program is a healthy lifestyle incentive program dedicated to
educating, motivating, and empowering classified employees and unclassified management employees to
take an active role in preserving their good health and improving their overall quality of life. By providing
employees with quarterly reimbursement for eligible expenses, the City of Gaithersburg is committed to
improving the health status of its employees. Expenses for spouses or other dependents are not
reimbursable through this Program.

         a. Reimbursable Amount
             Through the GFit Program, employees may be reimbursed up to a maximum of $35 per
month for eligible expenses related to health and wellness activities that contribute to their improved
fitness, health and well-being. Expenses for spouses or other dependents are not reimbursable through
this Program.

        b. Eligible Expenses
           Eligible expenses include, but are not limited to:

                Fitness Center/Gym Membership
                Personal Trainer Fees
                Sports League Registration Fees (e.g., softball, basketball, bowling)
                Lesson/Class Fees (e.g., dancing, swimming, golf, aerobics, yoga)
                Managed Weight Loss Programs* (e.g., Jenny Craig, Weight Watchers)
                Managed Smoking Cessation Programs (e.g., hospital sponsored)
                Nutritionist Advice Fees
                 *Weight Loss supplements are not eligible.

             Items reimbursed through an employee's Flexible Spending Account are not eligible for
reimbursement through the GFit Program. Contact the Human Resources Department to determine if a
health or wellness activity not mentioned above will be eligible for reimbursement prior to submitting a
request for reimbursement.

        c.   Procedure for Reimbursement
             1. Employee pays the fee for the activity (membership, class, program, etc.), directly to the
provider.

              2. Employee arranges for the provider to furnish him/her with a receipt or statement which
verifies his/her participation in the eligible program. The statement must include employee's name, must
indicate that the employee is/was a participant in the program, and must provide a detailed proof of
payment (itemized receipt, credit card statement, contract, etc.). It is the employee's responsibility
to arrange with the provider to provide "proof of participation."

            3. Employee must complete a GFit Program Claim Form (available on CityNet or in Human
Resources), attach all receipts/participation statements, and return to the Human Resources Department
by the due date. Requests for reimbursement may only be submitted quarterly, and are due to Human
Resources no later than:

                 - October 15th (July/August/September)
                 - January 15th (October/November/December)
                 - April 15th (January/February/March)
                 - July 15th (April/May/June)
                 Absolutely no late submissions will be accepted - no exceptions!

          4. Costs will be reimbursed to the employee in his/her paycheck as soon as possible after
reimbursement request is submitted (maximum of $105 per quarter).

              Note that all reimbursements will be considered taxable income, so when possible, it is
more advantageous to use monies set aside in Flexible Spending Accounts (FSA) to pay for eligible health




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      and wellness expenses, since using FSA allows payment of expenses with pre-tax dollars, reducing
      taxable earnings and increasing take home pay.

      903.4 Housing Stipend Program
               To encourage municipal employees to live in the jurisdiction they serve, income qualified
      classified employees and unclassified management employees may receive a housing stipend to assist in
      the costs of rent or mortgage payments.

             Employees are eligible for the program immediately upon hire. To be eligible, the employee
      must reside within the corporate limits of Gaithersburg and be a signer or co-signer on the lease or
      mortgage for the residence; and the total household gross income for all members of the household aged
      18 and over, regardless of relationship to employee, must meet the income limits shown below:

             a.    Employees whose total household income is at or below 80 percent of Area Median
      Income (AMI) for the Washington Metropolitan Area as determined by the Department of Housing and
      Urban Development (HUD) on an annual basis shall be entitled to a monthly housing stipend of $300 a
      month.

                     Maximum Income Based on Household Size*
                     1 person household:           $57,512
                     2 person household:           $65,728
                     3 person household:           $73,944
                     4 person household:           $82,160
                     5 person household (or more): $88,733

              b.    Employees whose total household income is between 80 percent and 120 percent of AMI
      as determined by the HUD on an annual basis shall be entitled to a monthly housing stipend of $200 a
      month.

                     Maximum Income Based on Household Size*
                     1 person household:            $86,268
                     2 person household:            $98,592
                     3 person household:           $110,916
                     4 person household:           $123,240
                     5 person household (or more): $133,099

              *Adjusted annually; income limits shown are for period of May 2009 – April 2010

               Total household gross income is defined as income from all sources including but not limited to
      full-time employment, part-time employment, alimony, child support, disability, and social
      security/retirement benefits. The stipend is not available to employees who reside in City-owned
      housing.

               Eligible employees may apply for this program at any time by completing the Housing Stipend
      Application Form and submitting it to the Human Resources Department. Once approved, the employee
      will continue to receive the stipend until renewal and recertification is required (on April 15 of each year
      when updated HUD AMI data is available). At the time application is made or renewed, the employee is
      required to submit the following documentation for each member of the household aged 18 and over,
      regardless of relationship to the employee, to verify residency and the total household gross income:

              a.   Copy of   lease or mortgage signed or co-signed by the employee;
              b.   Copy of   prior year Federal tax return;
              c.   Copy of   prior year W-2 Form;
              d.   Copy of   proof of any other supplemental income not reported on Federal tax return or W-2
                   Form.




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       Failure to submit the required documentation will result in the employee being ineligible for the
housing stipend.

        Employees approved for the housing stipend will receive payment of the stipend with the first
paycheck of each month. Employees will not receive any retirement plan employer contributions on the
stipend payment. IRS regulations require the City to treat this stipend as taxable income which will be
reported on the employee's year-end W-2.

         Any employee who knowingly submits inaccurate or incomplete financial data in connection with
applying for or obtaining a housing stipend, or knowingly receives a housing stipend he/she is not
entitled to shall be required to reimburse the City for all monies received to which they were not entitled
and will be subject to disciplinary action.

         Pursuant to Mayor and City Council Resolution No. 91-08, this program was effective on October
1, 2008, and will terminate on September 30, 2010, unless the City Council authorizes the City Manager
to continue the program.

903.5 Personal Cell Phone Program
         Classified employees and unclassified management employees receive discounted service rates
and are eligible to purchase up to two personal cell phones through this program, offered through AT&T's
government cell phone plan. Under this program, employees are not required to sign a contract, may
change service plans without penalty, and are not assessed administrative costs, such as activation or
termination fees. Cost of the phones and monthly service plan fees are paid by the employee through
payroll deduction. Cell phone plans and equipment lists are available from the Human Resources
Department.

903.6 Uniforms
         Uniforms are provided at no cost to all City employees who are required to wear uniforms as part
of their normal job duties.

903.7 Direct Deposit
         The City encourages employees to have their paychecks processed through a direct deposit
agreement with their designated financial institution(s). Employees must complete a Direct Deposit
Enrollment Form and submit it to Human Resources to enroll in direct deposit and to make changes to
financial institution and/or account information. The direct deposit paycheck is posted at the employee's
designated financial institution(s) the same day that non-direct deposit paychecks are issued.

903.8 Credit Union
         Classified employees and classified management employees have the option of participating in
the Montgomery County Employees Federal Credit Union (MCEFCU), a member-owned, not-for-profit
financial institution dedicated to serving Montgomery County government employees, local employee
groups, and their families.

        MCEFCU has two locations:

        Germantown Headquarters                       Rockville Branch
        19785 Crystal Rock Drive                      20 Courthouse Square
        Suite 201                                     Suite 101
        Germantown, MD 20874                          Rockville, MD 20850
        301-279-1964                                  301-279-1964

        Enrollment information is available from the Human Resources Department. More information
about the MCEFCU can be found at http://www.mcefcuhb.org/index.html.




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      903.9 Employee Recreational & Leisure Opportunities
                Classified employees, classified management employees, as well as retirees from the City, their
      dependents (under the age of 22) and/or family members residing year-round at the same address as the
      employee or retiree receive a complimentary individual membership to all City recreation facilities. Fees
      for all other membership plans are 50 percent off the applicable resident rate.

               Employees hired to work on a part-time basis, working at least 25 hours per week on a
      consistent schedule on a continuing year-round basis may purchase an individual membership at City
      recreation facilities at 50 percent off the resident rate. A complimentary individual membership will be
      granted to the employee after one year of employment.

              City identification must be presented in order for employees or retirees to be eligible for these
      opportunities. More information is available on the Recreation & Leisure Opportunities for City of
      Gaithersburg Employees brochure.

      903.10 Microsoft Home Use Program
               Classified employees and unclassified management employees are eligible to participate in
      Microsoft's Home Use Program (HUP). This program enables an employee to get a licensed copy of most
      Microsoft Office desktop PC applications to install and use on his/her home computer. Due to the limited
      number of licenses available, classified employees and unclassified management employees' participation
      is on a first come, first served basis.

              Under the Home Use Program, classified employees and unclassified management employees
      who are users of Microsoft Office Enterprise 2003 may purchase and acquire a licensed copy of Microsoft
      Office Enterprise 2007 software to install and use on a home computer at a cost of $19.95 (plus tax and
      any other applicable charges). Employees may continue using Microsoft Office Enterprise 2007 while
      they are under employment with the City of Gaithersburg.

              Classified employees and unclassified management employees interested in purchasing the
      software must contact the Human Resources Department for further information.

      Section 904. Fringe Benefits for Mayor & City Council Members
               The Mayor and members of the City Council may elect to join or become members of any group
      medical or dental plan offered to eligible employees of the City on an individual or family plan basis
      provided that the subscriber pays the full cost of coverage without contribution or reimbursement from
      the City. The City may pay or contribute to the cost of any other insurance benefit plans for the Mayor
      and members of the City Council as determined by resolution of the City Council.

              The Mayor and members of City Council who leave City service may continue medical, dental,
      and/or other insurance benefits through the City’s group plans provided they are eligible therefore and
      provided they have served as Mayor and/or member of the City Council for a cumulative total of eight (8)
      years prior to leaving City service.

      Section 905. Domestic Partner Benefits
               The City of Gaithersburg prohibits discrimination on the basis of sexual orientation. Therefore,
      the City has determined it is appropriate to include a same gender domestic partner, and his or her
      dependents, in the definition of immediate family and eligible dependent for use of leave and entitlement
      to health related benefits.

               a. Eligibility
                   To be eligible for domestic partner benefits, the classified employee or unclassified
      management employee and his/her domestic partner must sign an Affidavit of Domestic Partnership, in
      the presence of a notary public, under penalty of perjury, declaring that all of the standards required by
      the City for the establishment of a domestic partnership have been satisfied as follows:

                  1. The employee and his/her domestic partner are members of the same gender.




152
           2. The employee and his/her domestic partner have a committed relationship, plan to
remain together indefinitely, and are responsible for each other's welfare.

             3. The employee and his/her domestic partner have shared the same legal residence for at
least twelve (12) months and are responsible for contributing financially or otherwise to the relationship.

             4. The employee and his/her domestic partner are at least eighteen (18) years of age.

             5. The employee and his/her domestic partner have voluntarily consented to the
relationship, without fraud or duress.

            6. Neither the employee nor his/her domestic partner is married to, or is in a domestic
partnership with, any other person.

            7. The employee and his/her domestic partner are not related by blood or affinity in a way
that would disqualify them from marriage under State law if the employee and his/her domestic partner
were members of the opposite gender.

             8. The employee and his/her domestic partner are legally competent to contract.

             9. The employee and his/her domestic partner share sufficient financial and legal
obligations. This must be evidenced by copies of at least two (2) of the following documents:

                (a)    A joint housing lease, mortgage, or deed.

                (b)    Joint ownership of a motor vehicle.

                (c)    A joint checking or credit account.

                (d) Designation of the domestic partner as a primary beneficiary receiving at least 50
percent of the other partner's life insurance, retirement benefits, or residuary estate under a will.

                (e) Designation of the domestic partner as holding a durable power of attorney for
health care decisions regarding the other domestic partner.

            All affidavit information will be held confidential and only disclosed to the extent necessary to
provide and administer benefits, or as authorized by the employee or domestic partner, or to the extent
required by law.

        b. Eligible Benefits
            Any benefit that the City provides for a classified employee or unclassified management
employee’s spouse or for the dependents of an employee's spouse, will be provided, in the same manner
and to the same extent, for the domestic partner of a City employee, and for the dependents of a City
employee's domestic partner, respectively, including benefits equivalent to those provided under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), the Family and Medical Leave Act of
1993, and other federal laws. However, because of the provisions of federal tax law, the receipt of these
benefits may have tax or other financial implications for the City employee.

             If neither the employee's domestic partner, nor the domestic partner's dependents, qualify
under federal tax law as the employee's legal tax dependents, however, the employee will not be eligible
to receive reimbursements from the employee's Flexible Spending Account or Dependent Care
Reimbursement Account for expenses incurred by them or on their behalf.

        c.   Enrollment




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                  Once the employee has filed the Affidavit of Domestic Partnership with the City's Human
      Resources Director, the employee will need to do the following in order to enroll his/her domestic partner
      and his/her partner's eligible dependents under the City's group health, dental, and/or long-term care
      insurance plans:

                  1. For initial enrollment, complete all enrollment materials required by the health, dental,
      and/or long-term care insurance plans that the employee has selected. These materials may consist of
      the following:

                       (a) A benefit enrollment form, if the employee is changing his/her level of coverage
      due to the addition of his/her domestic partner and his/her partner's eligible dependents.

                         (b) A dependent information form, if the employee is adding his/her domestic partner
      and his/her partner's eligible dependents. Please note that the insurance companies may also require
      proof of eligibility, such as birth certificate, in order to add coverage for the employee's partner's eligible
      dependents.

                       All forms must be received by the Human Resources Department within thirty (30) days
      of employment or the occurrence of a qualifying event that first permits the employee to enroll his/her
      domestic partner and/or his/her partner's eligible dependents. Otherwise, the employee will have to wait
      until the next open enrollment period to add his/her domestic partner and/or his/her partner's eligible
      dependents.

                  2. For re-enrollment every plan year, the employee will need to provide any additional
      evidence of his/her domestic partnership during the annual open enrollment process, unless he/she is
      making changes in the coverage he/she has selected.

              d. Taxes
                  Internal Revenue Service regulations require different tax treatment for group insurance
      costs associated with domestic partner coverage in cases where the domestic partner does not qualify as
      a tax dependent under the Internal Revenue Code. In determining the tax effects of domestic partner
      coverage, the City will assume that neither the domestic partner, nor the domestic partner's eligible
      dependents, qualify as the employee's tax dependents, unless the employee is able to provide
      documentation to the contrary.

                  For each group insurance plan to which the employee adds his/her domestic partner and
      his/her partner's eligible dependents:

                  1. The employee will be responsible for paying the difference between his/her share of the
      premium cost for single coverage and his/her share of the premium cost for the coverage level that
      includes the addition of the employee's domestic partner and the partner's eligible dependents.

                  2. The portion of the employee's total premium cost that is attributable to his/her individual
      coverage (and coverage for any of the employee's own tax-qualified dependents) will continue to be
      deducted from the employee's paycheck, before taxes. However, the portion of the employee's total
      premium cost that is attributable to covering the domestic partner and/or the partner's eligible
      dependents will be deducted from the employee's paycheck after taxes.

                  3. The amount that the City contributes towards the cost of covering the employee's
      domestic partner and the partner's eligible dependents under the City's group health insurance and/or
      dental insurance plans will be considered as taxable compensation that has been provided to the
      employee. Under a concept known as "imputed income," the employee will be treated as if the City has
      paid the employee an additional amount of cash on which the employee was taxed, which the employee
      uses to purchase the coverage for his/her domestic partner and the partner's eligible dependents. This
      means that the value of the City's contribution will be taxed and subject to income tax withholding, Social
      Security taxes, and unemployment taxes. As a result, the employee may want to increase the existing




154
amount of withholding that is applied to his/her paychecks, so that enough money is withheld from each
of his/her paychecks to pay the taxes due on all of his/her compensation -- both the cash that he/she
receives as well as the value of the City's contribution for covering his/her domestic partner and the
partner's eligible dependents.

             See attachment regarding tax implications for examples of how adding a domestic partner
and/or the partner's dependents to the City's group health plan will change an employee's paycheck and
tax situation.

             For retired employees who pay their portion of group health and/or dental insurance costs
with after-tax deductions from their retirement check, the addition of a domestic partner and the
partner's eligible dependents to those group insurance plans will not affect the amount of premiums
deducted from the check but will have only the imputed income effect described above.

             The summary of tax consequences described above is meant only to address some of the
questions that an employee might have about the tax implications of domestic partner health and dental
benefits. It is not, nor is it intended to be, exhaustive or exclusive. In the event that this material
conflicts with local, state, or federal law, the language of the local, state, or federal law will be the final
authority. An employee should contact his/her tax preparer so that he/she fully understands how he/she
may be specifically impacted by the receipt of these domestic partner benefits.

         e. Dissolution of Domestic Partnership
              Should the employee's relationship with his/her domestic partner end, or should the
employee no longer meet the domestic partnership requirements, then the domestic partner and the
partner's eligible dependents will no longer be eligible for coverage under the City of Gaithersburg's
group health, dental, and long-term care insurance plans. The employee must notify the Human
Resources Department within thirty (30) days of the termination event by completing an Affidavit of
Dissolution of Domestic Partnership. In such cases, benefits will terminate or continue for the domestic
partner and the partner's eligible dependents to the same extent that they would for a former spouse, or
for the eligible dependents of a former spouse, under similar circumstances (for example, under COBRA).




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                       PERSONNEL RULES & REGULATIONS MANUAL

                                             SECTION 1000
                                         RETIREMENT BENEFITS

      Section 1001. Retirement Criteria

               a. General Retirement Plan
                   An employee may retire under the City of Gaithersburg's General Retirement Plan at age 50
      years with at least 15 years of service, provided that the total of age (in years) plus years of service shall
      equal at least 75. An employee may, at his/her option, use his/her accumulated sick leave hour for hour
      as additional service to meet eligibility requirements. Any sick leave so used would not then be subject to
      a payment therefore as specified in the section entitled "Sick Leave."

              b. Early Retirement Plan
                  An employee may retire under the City of Gaithersburg's Early Retirement Plan at age 46
      years with at least 20 years of service. An employee under the Early Retirement Plan may, at the
      employee's option, use accumulated sick leave hour for hour as additional service to meet eligibility
      requirements. Any sick leave so used would not then be subject to a payment therefore as specified in
      the section entitled "Sick Leave."

      Section 1002. Medical, Dental & Other Benefits Upon Retirement
              Medical, dental, and other insurance benefits will be provided to retirees on the same basis as for
      active employees. Benefits added after an employee's retirement date will not be provided to the retiree.

             In the event of the death of a retiree, the surviving spouse or domestic partner may continue
      coverage under the benefit plans available to retirees as if he/she was the retiree, under the same terms
      and conditions as the retiree, except that the surviving spouse or domestic partner may only cover
      dependents who were eligible for coverage at the time of the retiree's death, including an unborn child.

      Section 1003. Medical Care Premiums
              Employees retiring under the General Retirement Plan who elect to continue medical coverage
      through the City retain the type of coverage in force at the time of retirement and pay the same
      percentage of the medical insurance premiums as an active employee. Employees retiring under the
      Early Retirement Plan who elect to continue medical coverage through the City use the same provider
      and contribute 5 percent more in employee share cost of premiums than paid by employees in the
      General Retirement Plan.

      Section 1004. Changes to Coverage Upon and After Retirement
               The employee may elect to continue health insurance benefits and retain the type of coverage in
      force at retirement. The employee cannot increase his/her health insurance coverage at the time of
      retirement, unless the employee has a qualifying change in family status. However, the employee and/or
      his/her spouse/domestic partner must enroll in Medicare coverage as soon as they reach the age of 65
      and become eligible for Medicare Part A and Part B coverage. (The retiree and/or spouse/domestic
      partner must provide proof of Medicare coverage to the Human Resources Department.) At that time,
      Medicare Part A and Part B become the primary medical insurance carrier and the City's insurance carrier
      becomes the supplemental secondary medical insurance carrier. The City may pay or contribute to the
      cost of the supplemental secondary insurance, but will not pay any of the Medicare premium.

              The retiree will remain eligible to change health and/or dental insurance plans and add eligible
      dependents during the annual Open Enrollment period, which is held at the same time as for active
      employees. Open Enrollment is currently held during the month of May and changes filed during this
      period generally become effective on July 1.




156
         It is the retiree’s responsibility to notify Human Resources of any change, which would alter the
retiree's health insurance coverage and/or premiums. If the change is not received within 60 days after
the date of the event, the retiree may be required to wait until the next open enrollment period. It is
also the retiree’s responsibility to notify Human Resources of an address change.

Section 1005. Dental Care
        Employees retiring under the General Retirement Plan who elect to continue dental coverage
through the City use the same provider and pay the same percentage of the dental insurance premiums
as an active full-time employee. Employees retiring under the Early Retirement Plan who elect to
continue dental coverage through the City use the same provider and contribute 5 percent more in
employee share cost of premiums than paid by employees in the General Retirement Plan.

Section 1006. Long-Term Care
        A retiree will continue to use the same provider and pay the same amount for long-term care
insurance as an active employee pays.

Section 1007. Life Insurance
        The City will continue to carry a life insurance policy on the retiree that will cover death by
natural or accidental causes in the amount listed below. There is no cost to the retiree:

            Under Age 70:     $50,000
            Age 70 to 74:     $32,500
            Age 75 and Older: $25,000

Section 1008. Annual Leave
       A separate check will be written to the employee for his/her remaining annual balance not to
exceed 240 hours. Taxes, social security, and 401K contribution will be withheld.

Section 1009. Sick Leave
         A separate check will be written to the employee for 25 percent of the employee's accumulated
sick leave. Taxes, social security, and 401K contribution will be withheld. The employee may choose to
apply accumulated sick leave to years of service to meet the retirement criteria in lieu of payment for
accumulated sick leave.

Section 1010. Miscellaneous Benefits
        Retirees may continue personal cell phone service through the City at the same rate as an active
employee and must pay cell phone bills monthly. Retirees may continue to use City recreational facilities
and classes at the same rates as an active employee. A membership card will be issued to the retiree
which will allow the retiree access to City facilities and classes.

Section 1011. Payment of Medical, Dental, & Long-Term Care Premiums
        Upon retirement, an employee will elect to pay medical, dental, and/or long-term care insurance
premiums (a) by monthly deduction from their Retirement Health Savings (RHS) Account, or (b) directly
to the City of Gaithersburg on a monthly, quarterly, semi-annual, or annual basis. Retirees who fail to
pay insurance premiums on schedule risk termination of coverage.

Section 1012. Social Security
         Social Security is also known as OASDI (Old-Age, Survivor, and Disability Insurance). Social
Security is a federal program funded by employer contributions and employee payroll deductions. Its
intent is to provide a fixed monthly benefit for retirees. The level of payment depends on the length of
time the individual has worked.

        Employment with the City of Gaithersburg is covered under the Federal Social Security System.
Employee contributions to the Social Security Administration are matched equally by the City. Further
information about Social Security benefits can be obtained from the local office of the Social Security
Administration.




                                                                                                             157
              Both the employer and the employee contribute to Social Security based on federal government
      guidelines.

      Section 1013. Retirement Plans
              Classified employees and unclassified management employees are eligible to enroll in all City of
      Gaithersburg retirement plans immediately upon hire. The City's retirement benefits administrator is
      ICMA-RC (International City/County Management Association-Retirement Corporation), which manages
      and administers retirement plans exclusively for the benefit of public sector employers and employees.

              Once enrolled, employees will receive quarterly statements from ICMA-RC by mail and also have
      24/7 access to their retirement accounts, either online at the ICMA-RC website (www.icmarc.org) or
      through ICMA-RC's automated telephone service. Employees may also contact the Human Resources
      Department to make changes in contribution amounts, investment allocations, and basic information
      (name, marital status, beneficiaries, etc.).

              The 401A, 401A Supplemental, and 401K (described below) are defined contribution plans.
      Defined contribution plans are plans in which the employer and/or employee contribute a fixed or defined
      percentage of the employee's current salary to the plan. The employee controls where the money is
      invested. At retirement, the employee receives both the employer and employee contributions, along
      with the earnings gained on the contributions; and the employee determines the distribution amount
      he/she will receive based on the value of the account and distribution options selected by the employee.

             If an employee leaves employment prior to retirement, the balance of the employee's retirement
      accounts may remain in an ICMA-RC account or be rolled over into a new employer plan or IRA.

              Employee and/or employer contributions to all retirement plans (except the Roth IRA) are pre-
      taxed and tax deferred. When the employee withdraws the money, it will be taxed.

       1013.1 401A Money Purchase Retirement Plan
              The City of Gaithersburg will contribute the equivalent of 8 percent of the employee's base
      annual salary to the 401A Retirement Plan at no cost to the employee. This retirement plan has a
      gradual vesting schedule as shown below; an employee is fully vested after 5 years of service.

      1013.2 401A Money Purchase Supplemental Retirement Plan
              This retirement plan is available to eligible employees in the Public Works Department and Police
      Department who have physically demanding jobs. The City of Gaithersburg will contribute up to a
      maximum of 5 percent of the employee's annual base salary to the 401A Supplemental Retirement Plan if
      the employee is contributing at least 5 percent in the 401K Profit Sharing Plan and at least 5 percent in
      the 457 Deferred Compensation Plan. This retirement plan has a gradual vesting schedule as shown
      below; an employee is fully vested after 10 years of service.

      1013.3 401K Profit Sharing Retirement Plan
              The City of Gaithersburg will match 3 percent of the first 5 percent contributed by the employee
      to the 401K Retirement Plan. This retirement plan has a gradual vesting schedule as shown below; an
      employee is fully vested after five years of service. Contributions to this plan are tax deferred.

              In calendar year 2009, the maximum annual amount that an employee under the age of 50 may
      contribute to the 401K Profit Sharing Plan is $16,500; the maximum annual amount that an employee
      over the age of 50 may contribute is $22,000.

      1013.4 457 Deferred Compensation Retirement Plan
              This is a supplemental retirement plan which is funded through employee contributions only.
      Part-time employees are eligible to participate in this retirement plan. No vesting period is required. All
      contributions are tax deferred.




158
        In calendar year 2009, the maximum annual amount that an employee under the age of 50 may
contribute to the 457 Deferred Compensation Plan is $16,500; the maximum annual amount that an
employee over the age of 50 may contribute is $22,000.

1013.5 Roth IRA
         This is a supplemental retirement plan which is funded through employee contributions only. No
vesting period is required. Contributions are not tax deferred; earnings on Roth IRA accounts may be
distributed tax-free, provided they are not withdrawn in the first five years.

        In calendar year 2009, the maximum annual amount that an employee under the age of 50 may
contribute to the Roth IRA Plan is $5,000; the maximum annual amount that an employee over the age
of 50 may contribute is $6,000.

Section 1014. Vesting Schedule
         A City employee is vested (obtained legal rights to retirement funds contributed by the employer)
in the retirement plans per the following schedule:

                                             401A & 401K               401A Supplemental
              Years of Service            Vesting Percentage           Vesting Percentage
                     0                            0%                           0%
                     1                            0%                           0%
                     2                            0%                           0%
                     3                          33 1/3%                        0%
                     4                          66 2/3%                        0%
                     5                           100%                          0%
                     6                             --                         20%
                     7                             --                         40%
                     8                             --                         60%
                     9                             --                         80%
                     10                            --                         100%

         An employee who leaves the City's employment before being partially or fully vested would be
entitled to all contributions made by the employee.

Section 1015. Retirement Celebrations
       The following procedures and guidelines shall be followed in acknowledging/celebrating an
employee's retirement from City service:

       a. Human Resources notifies the the City Manager and the Department Head of the employee's
planned retirement date.

        b. City Manager advises the Municipal Clerk to prepare a proclamation from the Mayor and City
Council and to order a retirement gift to be presented from the City (currently a clock valued at
approximately $50). Any personal gifts to be presented to the retiree must be paid for by donations from
those wishing to contribute toward the cost.

        c. The City will fund a luncheon or reception in the retiree's honor in an amount not to exceed
$500. Any cost for the event in excess of $500 must be paid for by donations from those attending or
wishing to contribute toward the cost. (Any celebration event planned for the retiree that does not meet
the guidelines set forth below must be paid for by donations/contributions.) Guidelines for organizing the
luncheon or reception are as follows:

            1. The retiring employee's Department Head or supervisor (or designee) shall be
responsible for planning the event. The host(s) are responsible for extending invitations and accepting
responses and donations. (Tips on planning a retirement celebration are attached.)



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                  2. The activity/program may not be a "surprise" for the employee and may not be
      conducted in the manner of a "roast."

                  3. The Mayor and City Council and all City employees must be extended an invitation to the
      event.

                    4. The activity, program, and special guest list (family members, close friends, other City
      officials, committee members, volunteers, etc.) must be coordinated with the employee who is retiring.
      Any special guests wishing to speak at the event must be coordinated with the City Manager.

                   5. The retirement luncheon or reception may be held during regular business hours
      provided it lasts no longer than 1½ hours.

                  6. No alcoholic beverages may be served at the event.

                   7. The event may be held at a City facility, provided a facility or room is available. The
      rental fee for a City facility/room will be waived; however, the celebration host(s) is(are) responsible for
      following all guidelines, rules, regulations, and obligations associated with renting a City facility/room.

                   8. The Department Head/supervisor (or designee) organizing the celebration should submit
      all check requests and receipts for expenditures associated with the event (not to exceed $500) to the
      Human Resources Director for approval. All retirement celebration events should be charged to Account
      No. 1135-542000.

              d. A retiree who is eligible to receive a service award during the year of his/her retirement, but
      who has not received the award prior to his/her actual retirement, will receive the service award at the
      retirement celebration.

               e. If the retiring employee prefers, the City will not hold a retirement event for them. The
      retiree will receive the proclamation, gift, and service award (if appropriate) from the City.




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                PERSONNEL RULES & REGULATIONS MANUAL

                                      SECTION 1100
                                    EMPLOYEE CONDUCT

Section 1101. City Identification & Security Standards

1101.1      Purpose
         To enhance the City's mission of providing high quality public service; to provide standards and
requirements for the issuance and display of identification; to provide a consistent method of
identification; to provide an additional means of establishing a safe workplace for employees; to provide
a safe environment for the public to conduct business.

1101.2    Scope
        This policy applies to all employees of the City of Gaithersburg while on City property and/or
while conducting City business in the community; and to all visitors to City facilities or properties.

1101.3   Exceptions
       Exceptions to this policy may be requested in writing by the Department Head and must be
approved by the City Manager or his/her designee.

1101.4      Policy
         It is the policy of the City of Gaithersburg that employees and the public be provided with the
highest quality public service in the safest possible environment while conducting business. All persons
working or conducting business on City property and/or in the community will adhere to these
identification and security standards.

1101.5    Procedure

         a. Employee Identification Badge

           1. Issuance
              (a) The Human Resources Department will issue employee identification badges to all
incumbent employees upon initial implementation of this policy (2009). Following policy implementation,
new employees will be issued an identification badge on or about the employee's hire date.

                 (b) Badges are the property of the City of Gaithersburg; and employees are
responsible for safeguarding the badge issued to them at all times.

                 (c) Employees may not loan their badge to any other person nor shall they attempt to
use an identification badge not assigned to them for any purpose.

                 (d) Identification badges of all City employees may be updated/reissued on regular
intervals as determined by the City Manager or his/her designee.

                (e) The Human Resources Department will maintain a master list of all employees to
whom identification badges are issued.

              2. Display
                 (a) All City employees (as outlined in this policy) must be prepared to present their
identification badge upon request at all times. Employees are encouraged to wear their identification
badges while on City property or in a City facility, and/or while conducting City business in the
community, except when wearing the identification badge presents a safety issue due to the nature of
the work being performed.




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                        (b) The Department Head has the authority to require some or all employees in his/her
      Department to wear their identification badges while on City property, in a City facility, and/or while
      conducting City business in the community. Any employee required to wear his/her identification badge
      shall be notified in writing by the Department Head; notification shall include guidelines indicating when
      the badge is required to be worn.

                       (c) When wearing the identification badge it should be worn in a location of the
      employee's choosing, preferably at waist level or above so the employee identification photo side of the
      badge is clearly visible to others at all times. The City will provide a clip or lanyard for each employee to
      wear the identification badge.

                       (d) The identification badge must be kept free of decoration and may not be defaced
      or altered with pins, stickers, decals, etc.

                    3. Replacement
                       (a) Temporary Replacement
                            (1) An employee who reports to work without his/her identification badge must
      immediately advise his/her supervisor or Department Head and request issuance of a temporary
      identification badge.

                             (2) The temporary identification badge will be issued by the Human Resources
      Director or his/her designee. The badge will be date-stamped and issued for no more than two
      consecutive business days.

                              (3) The employee must produce his/her permanent identification badge prior to
      the expiration of the temporary badge and return the temporary badge to the Human Resources Director
      or his/her designee.

                             (4) If the employee cannot produce his/her permanent identification badge prior
      to the expiration of the temporary badge, he/she must follow the procedure to replace the badge as
      outlined in subsection (b).

                           (5) An employee who requests a temporary replacement identification badge
      more than two (2) times in a calendar year may be subject to disciplinary action.

                      (b)    Replacement of Lost/Stolen/Destroyed Badge

                             (1) An employee whose identification badge is lost, stolen, or destroyed must
      advise his/her supervisor or Department Head as soon as he/she becomes aware of the loss.

                              (2) An employee will be allowed one (1) free replacement within any 36 month
      period. Thereafter, the employee will be charged $10.00 for a replacement identification badge and
      $5.00 for a clip or lanyard. There will be no charge for issuance of a new badge due to name change or
      department transfer.

                           (3) The employee must contact the Human Resources Department to schedule
      an appointment to have his/her identification badge replaced.

                  4. Surrender
                      (a) Each Department is responsible for ensuring that, as part of the employee
      termination procedure, the identification badge is collected prior to the issuance of a final paycheck.

                       (b) The Department Head or his/her designee shall collect the identification badge and
      clip/lanyard from an employee terminating from City service and immediately forward them to the Human
      Resources Department. The identification badge must be surrendered if:




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                        (1)   The employee is permanently terminated from City service, voluntarily or
involuntarily.

                        (2)   The employee is suspended or placed on leave due to disciplinary action.

                       (3) The employee is on a voluntary or involuntary extended period of absence or
administrative leave, paid or unpaid.

               (c) The badge need not be surrendered if an employee is on an extended period
(more than 30 days) of absence due to family medical leave, professional or military training, or jury
service.

              5. Disciplinary Action/Penalties
                   (a) Improper use of an employee identification badge, or failure to comply with this
policy, will result in disciplinary action as set forth in the City's Personnel Ordinance.

               (b) Failure to surrender the employee identification badge at the time of termination or
other absence as set forth in this policy will result in a $250 fine to be deducted from the employee’s
paycheck or other legal action as deemed appropriate.

        b. Security Access Rights
            Department Heads will designate those employees who are granted security access rights
and therefore authorized to use their identification badge to enter or access City facilities or secure work
areas. Designation will be based on need (for example, employees responsible for opening facility,
employees who work outside a facility's normal hours of operation, etc.).

         c.Unauthorized Persons
           An employee who observes any unauthorized individual (employee or visitor) in a secure
work area should, at their discretion:

              1. Immediately report the person to a supervisor or Department Head; or

              2. Initiate a request for emergency assistance (9-1-1).

Section 1102. Discrimination and Harassment

1102.1     Purpose
         The City of Gaithersburg is committed to providing a work environment in which all individuals
are treated with respect and dignity. The City believes that all employees are entitled to a workplace free
of discrimination and harassment, including sexual harassment; and expects employees to treat each
other and its customers with courtesy and respect. No person should be required to endure
discrimination or harassment by supervisors or coworkers or work in a hostile environment as a condition
of employment.

        The purpose of this policy is to make it clear that the City strictly prohibits any form of unlawful
discrimination or harassment in the workplace and to establish procedures for reporting behavior
prohibited by the law and this policy.

1102.2     Policy
         Unlawful discrimination/harassment undermines the integrity of the employment relationship,
compromises equal employment opportunity, debilitates morale, and interferes with work productivity.
The City does not tolerate any form of unlawful discrimination or harassment on the basis of race,
religion, sex, sexual orientation, gender identity, color, ancestry, serious medical condition, national
origin, age, disability, marital or parental status, political opinions or affiliations, or lawful employee
organization activities in City employment, City operated programs, services or facilities.




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      1102.3      Applicability
               This policy applies to all employees of the City of Gaithersburg. Conduct prohibited by this policy
      is unacceptable in the workplace and in any location that can be reasonably regarded as an extension of
      the workplace, including but not limited to business trips, any off-site business-related social function, or
      any facility where City business is being conducted and discussed.

      1102.4     Examples of Prohibited Conduct
               Discrimination and harassment may take many forms, including but not limited to:

                a. Discrimination
                   Personnel decisions based on stereotypes or assumptions about the abilities, traits, or
      performance of individuals on the basis of race, religion, sex, sexual orientation, gender identity, color,
      ancestry, serious medical condition, national origin, age, disability, marital or parental status, political
      opinions or affiliations, or lawful employee organization activities; denying employment opportunities to a
      person because of marriage to, or association with, an individual on the basis of race, religion, sex,
      sexual orientation, gender identity, color, ancestry, serious medical condition, national origin, age,
      disability, marital or parental status, political opinions or affiliations, or lawful employee organization
      activities.

                b. Verbal Harassment
                    Use of epithets, innuendos, threats, derogatory comments or references, slurs or jokes,
      gestures, pranks, teasing, or other banter, including negative stereotyping, on the basis of race, religion,
      sex, sexual orientation, gender identity, color, ancestry, serious medical condition, national origin, age,
      disability, marital or parental status, political opinions or affiliations, or lawful employee organization
      activities. Verbal harassment may also include sexual remarks or well-intentioned compliments about a
      person’s clothing, body, or sexual activities.

               c.    Physical Harassment
                     Assault, unwelcome or hostile touching or contact, intimidation, impeding or blocking
      movement, and/or any physical interference with normal work or movement when directed at an
      individual on the basis of race, religion, sex, sexual orientation, gender identity, color, ancestry, serious
      medical condition, national origin, age, disability, marital or parental status, political opinions or
      affiliations, or lawful employee organization activities.

                d. Visual Forms of Harassment
                    Displaying or distributing written or graphic material in the workplace that is derogatory,
      demeaning, or displays hostility on the basis of race, religion, sex, sexual orientation, gender identity,
      color, ancestry, serious medical condition, national origin, age, disability, marital or parental status,
      political opinions or affiliations, or lawful employee organization activities, including but not limited to
      jokes, posters, notices, bulletins, magazines, cartoons, drawings, advertisements, videos, Internet sites,
      or other electronic media.

               e. Sexual Favors
                   Unwelcome sexual advances, expectations, propositions, requests, demands, or pressure for
      sexual favors, and other verbal or physical conduct of a sexual nature which are implicitly or explicitly a
      term or condition of an employee’s employment, are used as the basis of employment decisions, or affect
      or interfere with the employee’s work performance.

               f.  Hostile Environment
                   Conduct including the above-referenced behavior(s) that has the purpose or effect of
      creating an intimidating, hostile, or offensive work environment on the basis of race, religion, sex, sexual
      orientation, gender identity, color, ancestry, serious medical condition, national origin, age, disability,
      marital or parental status, political opinions or affiliations, or lawful employee organization activities.

      1102.5        Responsibilities and Expectations




164
             a. City Manager
                The City Manager shall be responsible for assigning responsibility and accountability for
implementation of the City’s discrimination and harassment policy and procedures. He/She shall take all
steps necessary to set a positive example and to support and encourage actions and attitudes in the
organization that prevent discrimination and harassment from occurring. He/She shall direct the
investigation and respond to all complaints involving Department Heads, the Assistant City Manager(s),
the City Attorney, and the Human Resources Director.

        b. Human Resources Director
             The Human Resources Director shall be responsible for ensuring that all complaints of
discrimination and harassment are investigated thoroughly and are responded to in a timely fashion.
He/She shall direct the investigation and respond to all complaints involving City employees except as
indicated in subsection (a) of this section.

           The Human Resources Director shall assist, advise, or consult with employees, supervisors,
and Department Heads regarding the harassment and discrimination policy, complaint procedures, and
incidents.

         c.  Department Heads and Supervisors
             Department Heads and Supervisors are responsible for enforcing this policy and expected to
take all steps necessary to set a positive example, prevent discrimination/harassment from occurring, and
maintain a productive, non-hostile and non-discriminatory work environment.

             Department Heads/Supervisors are expected to take all allegations of discrimination or
harassment, including sexual harassment, seriously. Any Department Head or Supervisor who is aware
of discrimination and/or harassment in the workplace and condones it by action or inaction or fails to
report or investigate it will be subject to disciplinary action and may become legally liable.

              Department Heads/Supervisors shall assist, advise, or consult with employees and the
Human Resources Director regarding the harassment policy, complaint procedures, and incidents and
shall assist in the investigation of complaints involving employee(s) in their departments. If a complaint
is substantiated, the Department Head/Supervisor shall take appropriate corrective or disciplinary action.

       d. Employees
           Employees are expected to treat each other with respect and consideration and shall not
engage in actions or behaviors that violate or encourage violation of the City’s discrimination and
harassment policy.

              Prompt, appropriate, direct action must be taken to stop incidents of discrimination or
harassment. In some situations, a person may not realize that his/her behavior is unwelcome and/or
offensive. Therefore, an offended employee is encouraged to clearly tell the offending individual that the
behavior is unwelcome, offensive, and/or inappropriate and request that the conduct stop immediately.
However, such action by the offended employee is not required prior to reporting the incident(s) or
initiating a complaint.

             An employee who believes that he/she has been subjected to any form of prohibited
discrimination/harassment, or who witnesses another individual or group of individuals being subjected to
such discrimination or harassment, is strongly encouraged to promptly report the incident(s) to a non-
involved supervisor, Department Head, Human Resources Director, or City Manager, and/or file a
complaint. Prompt action will help ensure that the problem is identified, investigated, and resolved as
expediently as possible.

           Employees are expected to fully cooperate with investigations of discrimination and
harassment incident(s). Failure to cooperate in an investigation may result in disciplinary action.

1102.6        Complaint Process




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               An employee who feels that he/she has been a victim of discrimination or harassment may make
      a complaint, without fear of retaliation, according to procedures set forth in the City's Grievance
      Procedures. The complaint will be investigated promptly and thoroughly according to the guidelines of
      that policy; and if found to have merit, immediate steps will be taken to end the discrimination or
      harassment and appropriate disciplinary action will be taken.

      1102.7      Prohibition Against Retaliation
              Retaliation against any employee who alleges that he/she was the victim of discrimination and/or
      harassment or against any employee who provides information in the course of an investigation into
      claims of unlawful discrimination/harassment in the workplace is prohibited by this policy. Any employee
      bringing a complaint, providing information for an investigation, or testifying in any proceeding under this
      policy will not be subject to adverse employment consequences based upon such involvement or be the
      subject of retaliation.

              Retaliation in any form against a complainant who exercises his/her right to make a complaint
      under this policy is strictly prohibited, and will itself be cause for appropriate disciplinary action. In
      addition, the failure by a department head or supervisor to promptly initiate disciplinary action after
      having been directed to do so by the City Manager or Human Resources Director will also be cause for
      appropriate disciplinary action.

      1102.8    False Accusations and Information
              Any employee who knowingly makes a false accusation of unlawful discrimination or harassment,
      or who knowingly provides false information in the course of an investigation of a complaint, may be
      subject to disciplinary action.

      1102.9     Confidentiality
               All complaints and investigations shall be handled, to the extent possible, in a manner that will
      protect the privacy interests of those involved; however, confidentiality cannot be guaranteed.

      1102.10 Training
               The City will provide information and training to all employees regarding the discrimination and
      harassment policy, prevention of unlawful discrimination and harassment, and the procedure to be
      followed in filing complaints when unlawful discrimination/harassment has allegedly occurred. Training
      will be provided during the orientation process at the time of hire and at other regular intervals as
      determined by the City Manager and Human Resources Director.

               Department Heads, supervisors, and other managerial staff will periodically receive specialized
      training to assist them in creating an environment of respect in the workplace and in recognizing,
      responding to, and resolving complaints of unlawful discrimination and harassment. New Department
      Heads, supervisors, or managers will receive specialized training within 60 days of their appointment.

               All employees shall sign an acknowledgment as evidence of training after completing each
      training session.

      Section 1103. Drug-Free Workplace – Drug & Alcohol Testing Procedures

      1103.1     Purpose and Goal
               The City of Gaithersburg is committed to protecting the safety, health, and well being of all
      employees and individuals in the workplace. The City recognizes that alcohol abuse and drug use pose a
      significant threat to the City's goals. The City has established a drug-free workplace program that
      balances the respect for individuals with the need to maintain an alcohol- and drug-free environment.

      1103.2    Applicability
              Any individual who conducts business for the City, is applying for a position, or is conducting
      business on the City's property is covered by the drug-free workplace policy. The policy applies during all




166
working hours, whenever conducting business or representing the City, including while on call or on
standby status.

1103.3      Prohibited Behavior
         It is a violation of the drug-free workplace policy to use, possess, or sell, except as required by
an individual's job duties, or trade, alcohol, illegal drugs, or intoxicants.

1103.4    Drug and Alcohol Testing
        Each employee, as a condition of employment, will be required to participate in pre-employment,
post-accident, reasonable suspicion, return-to-duty and follow-up testing upon selection or request of
management. Safety sensitive employees, as defined in this policy, shall also be required to participate in
random testing.

        To ensure the accuracy and fairness of the testing program, all testing will be conducted
according to Department of Health & Human Services (DHHS)/Substance Abuse and Mental Health
Services Administration (SAMHSA) guidelines where applicable and will include a screening test; a
confirmation test; the opportunity for a split sample; review by a Medical Review Officer, including the
opportunity for employees who test positive to provide a legitimate medical explanation, such as a
physician's prescription, for the positive result; and a documented chain of custody.

        Any employee who tests positive will be immediately removed from duty and will be placed on
administrative leave without pay for the remainder of the day.

        An employee will be subject to the same consequences of a positive under the influence test if
he/she refuses the screening or the test, adulterates or dilutes the specimen, substitutes the specimen
with that from another person or sends an imposter, will not sign the required forms or refuses to
cooperate in the testing process in such a way that prevents completion of the test.

         All drug testing information will be maintained in separate confidential records. All information
received by the City through the drug-free workplace program is confidential communication. Access to
this information is limited to those who have a legitimate need to know in compliance with relevant laws
and management policies.

1103.5   Substances to be Tested For
        When drug and alcohol screening is required under the provisions of the policy, a urinalysis test
and evidential breath test will be given to detect the presence of the following substances:

         a.   Alcohol (ethyl)
         b.   Amphetamines (e.g., speed)
         c.   Barbiturates (e.g., Amobarbital, Butabarbital, Phenobarbital, Secobarbital)
         d.   Benzodiazephines
         e.   Cocaine or cocaine metabolite
         f.   Opiates (e.g., Codeine, Heroin, Morphine, Hydromorphone, Hydrocodone)
         g.   Phencyclidine (PCP)
         h.   THC (Marijuana)

1103.6     Reasons for Testing
         a. Job Applicant Testing: General Standard
             All job applicants will be required to undergo a drug and alcohol test as part of a pre-
placement physical examination prior to their final appointment. Failure to successfully pass this test
shall constitute reasonable cause for elimination of that individual from any further consideration for
employment.

        b. Employee Testing: Reasonable Suspicion
            In order to maintain a safe, secure, and productive environment for employees, the City may
require a current employee to undergo drug and alcohol testing if there is reasonable suspicion that the




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      employee is under the influence of drugs or alcohol during work hours, or when the employee is acting in
      any capacity in which the employee may be representing the City. Circumstances which constitute a
      basis for determining reasonable suspicion may include, but are not limited to:

                 1. Specific, personal observation by employee's supervisor, division head, or Department
      Head concerning employee's job performance including but not limited to: increased tardiness or
      absenteeism, increased mistakes, missing deadlines, undependability, lying, overreacting to criticism,
      performance far below job expectations.

                   2. Specific, personal observation by employee's coworker, supervisor, Department Head, or
      other reliable and credible source of:

                      (a) Abnormal, erratic, unusual, or uncharacteristic behavior, including but not limited
      to: nervous, sleepy, confused, excited, fatigued, insulting, aggressive, belligerent, exaggerated
      politeness, combative, quarrelsome, uncooperative, and/or overly talkative.

                       (b) Physical symptoms of drug and/or alcohol use, including but not limited to: glassy,
      bloodshot, or watery eyes; breath or body odors; slurred, rambling, thick, or slow speech; unusual
      sweating, crying, tremors, or quick/erratic movements; poor coordination and/or reflexes such as
      stumbling, falling, staggering or needing support.

                   3. Direct observation of drug or alcohol use.

                      The supervisor of an employee suspected of being impaired by drugs or alcohol will
      immediately convene a meeting with the suspected employee to question the employee on his/her
      behavior. The supervisor with concurrence of his/her Department Head will then make a determination as
      to whether the employee is to return to the worksite or should be referred to the City’s Human Resources
      Director, the Department Head, or the City Manager for further assessment and/or testing.

                      An employee suspected or determined to be under the influence of alcohol or drugs will
      be provided transportation to and from the testing facility. Additional arrangements will be made to
      ensure the employee’s safety and well being, if deemed necessary.

                       Supervisors are required to detail in writing the special facts, symptoms, or observations
      which formed the basis for their determination that reasonable suspicion existed to warrant the testing of
      an employee. Copies of this documentation shall be forwarded to the appropriate Department Head and
      to the Human Resources Director. The facts underlying the determination of reasonable suspicion should
      be disclosed to the employee at the time the determination to refer the employee to testing is made.

              c.   Employee Testing: Random
                   The following employees who are in safety sensitive positions which could endanger public
      health, safety, and welfare will be subject to random drug and alcohol testing:

                   1. Employees who are required to operate City vehicles or heavy machinery and/or whose
      class specification indicates that they are required to maintain a valid driver's license.

                   2. Employees who are sworn police officers.

                   3. Employees to whom a City vehicle has been assigned.

                   4. Employees who receive, process, prepare and/or distribute cash or checks or handle
      credit card transactions as an essential part of their position.

                   5. Employees who work with children or youth.




168
          6. The City Manager, City Attorney, Assistant City Managers, and Department Heads of all
Departments established by the City Manager.

             An employee who moves into a safety sensitive position from a position that is not safety
sensitive will be notified in writing by the Department Head that he/she is subject to random drug and
alcohol testing. No random testing will take place until at least 30 days after the employee receives the
written notification.

            The random selection process will take place as follows:

            1. Each employee subject to testing will be assigned a number.

            2. These numbers will be entered into a random selection.

            3. The employee whose number is selected will be subject to random drug testing.

           4. If the employee selected is absent from work, or if the Department Head does not send
the employee for testing on the scheduled day, the employee will be rescheduled for testing at a later
date.

             5. If the test is cancelled by either the testing laboratory or the employer, the employee
selected for testing will be placed back into the selection pool.

         d. Employee Testing: CDL
            This policy is required by the Omnibus Transportation Employee Testing Act of 1991 and the
regulations promulgated thereto. (49 CFR Part 382) (the “federal regulations”).

             Effective January 1, 1995, the Department of Transportation (DOT) requires all employees
that hold a CDL and could potentially drive a vehicle requiring a CDL be subjected to the DOT Drug and
Alcohol Testing Regulations. This will include all employees while they are or could be expected to
operate and inspect, service, attend, load, or unload a commercial vehicle. All City of Gaithersburg CDL
required positions shall comply with the DOT testing regulations, which include testing 50 percent of CDL
license holders per year.

        e. Employee Testing: Post-Accident
            Post-accident drug and alcohol testing will be conducted on an employee involved in an on-
the-job accident (vehicular or otherwise) where the performance of the employee could have contributed
to the accident as follows:

             1. Post-Accident: Vehicle
                 The driver or operator of any City-owned or leased vehicle or other motorized equipment
involved in an accident.

           2. Post-Accident: Non-Vehicle
               Any employee whose performance either contributed to any accident or injury or whose
performance cannot be completely discounted as a contributing factor to an accident.

             An employee failing to report an accident to his/her supervisor as soon as reasonably
possible following the accident may be subject to disciplinary action.

             Post-accident drug and alcohol testing should be administered as soon as possible following
the accident. The employee's supervisor or Department Head will arrange for transporting the employee
to the collection site. Nothing in this policy shall be construed to require the delay of necessary medical
attention for injured people following an accident.




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                   The alcohol test should be administered within two (2) hours, but no more than eight (8)
      hours, following the accident; and the drug test should be administered no later than thirty-two (32)
      hours following the accident. If the tests cannot be performed within the specified time frame, the
      reasons for failure to test should be documented by the supervisor or Department Head and given to the
      Human Resources Director.

                   No employee required to take a post accident alcohol test shall use alcohol for eight hours
      following the accident or until the alcohol test has been performed, whichever occurs first. A driver who
      is subject to post-accident testing shall remain readily available for the testing or shall be deemed by the
      City as having refused to submit to testing. An employee who refuses to be tested or avoids meeting the
      specified time limits will be considered as having a positive test result and will be subject to disciplinary
      action.

                   In the event that federal, state, or local officials conduct breath or blood tests for the use of
      alcohol and/or urine tests for the use of controlled substances following an accident, the City may request
      testing documentation from such agencies, and may require the employee to sign a release allowing the
      City to obtain such test results.

                   If the driver is so seriously injured that he/she cannot provide a sample of urine, breath, or
      saliva at the time of the accident, the City may require the driver to provide authorization for the City to
      obtain hospital records or other documents that would indicate the presence of controlled substances or
      alcohol in the driver’s system at the time of the accident.

      1103.7 Testing Procedure – Employee Random & CDL
               Department Heads will be notified by confidential memo of those employees selected for testing.
      The memo will include the name of the employee(s) selected for testing, the date the test is to be done,
      directions to the testing site, and the test forms the employee will need to take with him/her to the
      testing site.

               On the scheduled testing day, the Department Head will notify the employee he/she has been
      selected to be tested and instruct the employee to report to the testing facility within one hour following
      receipt of notification. The Department Head may send the employee for testing at any time during the
      employee's work day/shift; however, the employee should be sent for testing as early in the work
      day/shift as possible. If the employee selected is absent from work or if the department head does not
      send the employee for testing on the scheduled testing day, the employee will be rescheduled for testing
      at a later date. Refusal to take the test on the scheduled day may result in disciplinary action up to and
      including termination.

      1103.8     Prohibitions for Alcohol
               A driver may not report for duty or stay on safety sensitive duty if they:

               a. Have used alcohol in the past four (4) hours;

               b. Have an alcohol concentration of 0.02 or greater.

               Employees are prohibited from using or being in possession of alcohol while on the job (unless it
      is being transported in cargo).

      1103.9    Prohibitions for Controlled Substances/Drugs
              Drivers who use drugs are considered medically unqualified to drive. A driver may not report for
      duty or stay on safety sensitive duty if they:

              a. Have used any controlled substance. The exception to this rule would be if a physician has
      prescribed the substance and has advised the driver that it does not interfere with the ability to safely
      operate a motor vehicle. In this case, the employee must notify his/her supervisor that he/she has such




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a prescription and provide written proof that the physician will allow the employee to perform his/her
duties at work.

        b. Have tested positive for a controlled substance.

1103.10 Alcohol Testing
         The process for alcohol testing must meet the standards set by the National Highway Traffic
Safety Administration. Regulations require that an Evidential Breath Test (EBT) device be used for
alcohol testing. The test must be administered by a Breath Alcohol Technician (BAT). The procedure will
be as follows:

       a. The test will be done in an area that provides privacy and prevents unauthorized personnel
from seeing or hearing the test results.

       b. The employee tested must provide approved picture identification (i.e., driver’s license) to
the BAT, and if requested, the BAT must provide identification to the employee.

         c. The federally approved Breath Alcohol Testing Form will be used. Refusal to sign the form
will have the same result as the refusal to test.

       d. The test involves having the employee blow into the mouthpiece of the EBT for at least six
seconds, or until an adequate amount of breath is obtained for testing.

        e. The BAT must show the employee the test results from the EBT. The results will then be
given to the employer in a confidential manner.

         f. If the employee refuses to be tested or refuses to sign the form, the BAT will note this and
notify the employer immediately. Refusal to test will have the same result as a positive test.

        g. If the employee is unable or states that he/she is unable to test, then:

            1. The BAT will make a second attempt to test.

           2. If the second attempt is unsuccessful, the BAT will note that a second attempt was made
and then notify the employer immediately and

               (a) The employer will require the employee to be evaluated by a physician (selected
by the employer) concerning the medical ability for the employee to take the test;

                (b) If the physician determines that the employee has a medical condition that will
prevent the employee from testing, the physician will provide the employer with a written statement to
that effect. The result cannot be regarded as a refusal to test.

           3. If the physician determines that there is no medical condition that would prevent the
employee from testing, the results will have the same result as a refusal to take the test.

1103.11 Drug Testing
        Drug testing will be done by analyzing an employee’s urine sample. This analysis will be done at
a laboratory certified by the Substance Abuse and Mental Health Services Administration (SAMHSA) of the
Department of Health and Human Services (DHHS). The procedure will be as follows:

         a. Urine collection will be done in a location that provides privacy to the employee. The sample
will be split into two separate containers, sealed, labeled, and sent to the drug testing laboratory. One
sample will be tested and the second sample will be saved for future use as a confirmation test, if
needed. Refusal to submit to a urine test will have the same results as testing positive.




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              b. A screening test will be performed on the primary sample. If this test is positive, a
      confirmation test will be performed for each drug identified in the screening test.

               c. A medical review officer (MRO) will examine the test results. If the primary test sample is
      positive, the MRO will make reasonable effort to contact the employee to report the positive result and to
      determine if there is a medical reason for the positive test result. If the employee can document why the
      test result is positive, and if the MRO finds it is a legitimate medical use, the test may be reported as
      negative to the employer.

             d. Upon notification of a positive test, the employee then has 72 hours to request a test of the
      second split sample. If so requested, the MRO will direct the laboratory, in writing, to send the split
      specimen to another DHHS-certified laboratory for the confirmation test.

             e. If the analysis of the split sample or reanalysis of the first sample does not confirm the
      presence of a drug, the MRO will cancel the results of prior tests and report this to the employer and the
      employee.

               f. The MRO will interpret all drug tests and give the results to the employer by any confidential
      means of communication. Within three days, the MRO will follow up with a signed written notification of
      the test results.

              g. The MRO must show the employee the results from the test. The results will then be given
      to the employer in a confidential manner.

               h. If the employee refuses to be tested or refuses to sign the form, the MRO will note this and
      notify the employer immediately. Refusal to test will have the same result as a positive test.

      1103.12 Confirmation of Test Results
               The split sample of an employee or job applicant whose primary drug test yields a positive result
      will be tested to confirm the positive test results. An employee or job applicant whose primary alcohol
      test yields a positive result shall be given a second test. If the results from the initial test are different
      than the confirmation test, the confirmation test results will be used.

      1103.13 Consequences of a Confirmed Positive Test Result
              One of the goals of the drug-free workplace program is to encourage employees to voluntarily
      seek help with alcohol and/or drug problems. If, however, an individual violates the policy, the
      consequences are serious.

               a. Applicants
                  Job applicants will be denied employment with the City if their initial positive drug test results
      have been confirmed. Applicants shall be informed in writing by the City if they are rejected on the basis
      of confirmed positive drug test results.

              b. Probationary & Part-Time Employees
                   If a probationary or part-time employee’s positive test result has been confirmed, the City
      may terminate the employee or at the City’s sole discretion, may refer probationary or part-time
      employee to mandatory participation in an approved counseling program. Any probationary or part-time
      employee referred to such a program will be subject to the same participation and retesting requirements
      as stated for classified employees and unclassified management employees, below.

              c.   Classified Employees and Unclassified Management Employees
                   If an employee’s positive test result has been confirmed, the employee is subject to
      mandatory participation in an approved substance abuse counseling program. Any employee
      participating in such a counseling program will retain his or her position of employment with the City
      unless (1) the City learned of the positive test result as a consequence of a motor vehicle or work related
      accident or (2) an employee has had a prior positive test result. If condition (1) or (2) is applicable, the




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City reserves the right to terminate the employee. In addition, the City reserves the right to take any
other disciplinary action including, but not limited to, suspension and/or demotion. If additional tests
result in a confirmed positive test, the employee is subject to immediate termination. An employee
required to have rehabilitation requiring lost time from work will be required to use (in this order)
accumulated annual leave, compensatory leave, and sick leave during this absence. Participation in the
substance abuse program will be monitored by the Human Resources Director. All information regarding
treatment will be held in the strictest confidence.

             Follow-up testing will be unannounced, and at least six (6) tests must be conducted in the
first 12 months once an individual tests positive. Follow-up testing may be extended for up to 60 months
following return to duty. Subsequent positive tests will result in disciplinary action up to and including
termination. Factors to be considered in determining the appropriate disciplinary response include the
employee’s work history, length of employment, current job performance, and the existence of past
disciplinary actions. For all sworn police officers, any disciplinary action shall be conducted in accordance
with the Law Enforcement Officer’s Bill of Rights.

1103.14 Appeals
        If disciplinary action is taken because of a positive test result, an eligible employee may file a
grievance as set forth in Section 1700, Grievance Procedures.

1103.15 Mandatory Referral to an Approved Counseling Program
         The City of Gaithersburg recognizes that alcohol and drug abuse and addiction are treatable
illnesses. The City also realizes that early intervention and support improve the success of rehabilitation.

         To support City employees, upon the first confirmed determination that an employee has a
positive test for under the influence of drugs or alcohol, the City shall refer the employee to an approved
counseling program for assessment, counseling, and rehabilitation unless the employee’s drug or alcohol
use has resulted in an accident serious enough to warrant dismissal. Participation in this counseling
program is mandatory. Refusal to participate in mandatory counseling will result in disciplinary action up
to and including termination. Disciplinary action based on a violation of the City’s drug and alcohol policy
is not automatically suspended by an employee’s participation in an approved counseling program and
may be imposed when warranted.

         Voluntary participation in an approved counseling program prior to an under the influence
confirmed test result is encouraged. An employee seeking participation in such a program shall contact
the Human Resources Director who shall coordinate and oversee the participation. Any such contact will
be held in the strictest of confidence by the Human Resources Director. No disciplinary action will be
brought as a result of volunteering to participate in such a program. Employees who, prior to an under
the influence test result, voluntarily identify themselves as drug or alcohol users and obtain counseling
and rehabilitation through an approved counseling program shall not be disciplined for their drug and/or
alcohol use if they thereafter refrain from violating the City’s policy on drug and alcohol abuse. All
employees, however, can be disciplined for any incidents resulting from their violation of the City’s policy
and drug and alcohol abuse or violation of the work rules. The Human Resources Director will provide
information about approved employee counseling services, if requested by a City employee.

1103.16 Return to Duty and Follow-Up Testing
         Following evaluation and treatment, if any in order to return-to-duty, the employee must submit
to and successfully complete follow-up testing. Follow-up testing is separate from and in addition to the
City’s reasonable suspicion, post-accident, and random testing procedures. The schedule for follow-up
testing shall be unannounced and in accordance with the instructions described above.

1103.17 Confidentiality of Test Results
         All information from an employee's or applicant's drug and alcohol test is confidential and only
those with a need to know are to be informed of test results. Disclosure of test results to any other
person, agency, or organization is prohibited unless written authorization is obtained from the employee
or applicant. Any person who inappropriately discloses confidential information is subject to disciplinary




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      action up to and including termination. The results of positive drug tests shall not be released until the
      results are confirmed. The records of unconfirmed positive test results and negative test results shall be
      destroyed by the testing laboratory.

      1103.18 Supervisor Training
               Supervisory personnel shall be trained in identifying drug and alcohol use among employees.
      The purpose of this training will be to help supervisors recognize the conduct and behavior giving rise to
      a reasonable suspicion of drug or alcohol use; identify employees who need counseling and employee
      assistance programs; be aware of those employees who pose an immediate safety threat; communicate
      City policy on drug and alcohol use; indicate available employee assistance resources; understand how
      they can deal with an employee suspected of drug or alcohol use; and communicate and take appropriate
      disciplinary action.

              This training will consist of at least 60 minutes on recognizing alcohol misuse, and at least 60
      minutes on recognizing controlled substances use. The training shall cover the physical, behavioral,
      speech, and performance indicators of probable alcohol misuse and use of controlled substances.

      1103.19 Employee Education
            The City will conduct education/outreach of employees via:
            a. Discussion groups on drug abuse/City policy;
            b. Videotapes/pamphlets on drugs in the workplace;
            c. Communication of available employee assistance;
            d. Communication of available health benefits for drug/alcohol treatment.

      1103.20 Prior Notice of Testing Policy
              The City will provide written notice of its drug and alcohol testing policy to all employees. No
      testing will take place until at least 30 days after notice of the existence of this policy.

      1103.21 Consent
              Compliance with the City's Drug and Alcohol Testing Policy is a prerequisite to employment and a
      condition of continued employment for all City staff positions.

               Before a drug and alcohol test is administered, job applicants will be asked to sign a consent
      form authorizing the test and permitting release of test results to those municipal officials with a need to
      know. Those municipal officials with a need to know include the City Manager, Assistant City Manager,
      City Attorney, Human Resources Director, and the employee’s Department Head. The consent form shall
      provide space for employees and applicants to acknowledge that they have been notified of the City’s
      drug testing policy. Employees and applicants may at the time of the test provide the Medical Review
      Officer a list of those medications that have been recently used. The list of medications, if provided, shall
      be sealed and held as confidential until there has been a positive test result. In the event of a confirmed
      positive test result, the list of medications shall only be disclosed to the Medical Review Officer who will
      determine whether the positive result was due to the lawful use of any of the listed medications. Also,
      employees and applicants may choose to provide to their supervisor or the Human Resources Director
      such a list after being notified of a confirmed positive result. The Human Resources Director will then
      provide this list to the Medical Review Officer.

              a. Refusal to Consent: Applicants
                   A job applicant who refuses to consent to a drug and alcohol test will be denied employment
      with the City.

              b. Refusal to Consent: Employees
                  An employee who refuses to consent to a drug and alcohol test is subject to disciplinary
      action up to and including termination. An employee, upon written request to the appropriate
      Department Head within three (3) days of his/her refusal, shall be entitled to a hearing prior to the City’s
      decision that such refusal warrants disciplinary action. The reason(s) for the refusal shall be considered
      in determining the appropriate disciplinary action. The hearing shall be held in accordance with the




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provisions of City of Gaithersburg Code. If disciplinary action is taken because of refusal to consent, an
eligible employee may file a grievance as set forth in Section 1700, Grievance Procedures.

1103.22 Drug Free Workplace Requirements
         Each employee engaged in the performance of a federal grant shall be given a copy of the City’s
drug and alcohol policy. As a condition of employment under a federal grant, all employees will abide by
the terms of this policy and the drug free workplace requirements of the federal grant and notify the City
in writing of any conviction for a violation of a criminal drug statute occurring in the workplace no later
than five days after such conviction.

         The City will notify the appropriate grant agency in writing within ten calendar days after
receiving a notice for violation of a criminal drug statute providing the person’s title and grant
identification number.

          Within thirty calendar days upon receiving a notice for violation of a criminal drug statute, the
City will follow the actions as noted in the Gaithersburg City Code.

Section 1104. Ethics
          Chapter 7A of the Gaithersburg City Code contains "Conflict of Interest" provisions which apply to
all City employees, regardless of position. The purpose of these provisions is to ensure that City
employees undertake their respective jobs without favoritism or partiality to any individual or business
entity in the general public and are not engaging in improper activities under the law. The City Ethics
Commission, appointed by the Mayor and City Council, processes and makes determinations concerning
complaints filed by anyone alleging violations of the City's Ethics Ordinance.

        The Conflict of Interest provisions of the Ethics Ordinance prohibit an employee from:

         a. Participating on behalf of the City in any matter which would, to their knowledge, have a
direct financial impact on them, as distinguished from the public generally, their spouses or dependent
children or business entities with which they are affiliated.

        b. Holding or acquiring interests of 5 percent or greater in any business that has or is
negotiating contracts with the City where the contracts are in excess of $2,500.

         c. Being employed by any business entity negotiating contracts in excess of $2,500 with the
City or which is regulated by their agency, except as exempted by the Ethics Commission.

       d. Holding any outside employment relationships that would directly impact their impartiality or
independence of judgment with regard to their official capacities.

        e. Representing any parties, for contingent fees, before any City agency or department.

         f. Within one year following termination of City service, acting as compensated representatives
of others in connection with any specific matters within their official responsibilities in which they
participated substantially as a City employee.

        g. Soliciting any gift from any person or business entity.

         h. Accepting any gift from any person or business entity that has or is negotiating a contract
with the City or is regulated by their agency, except where such gifts would not present a conflict of
interest as determined by the Ethics Commission.

        i.   Using the prestige of their position except to aid or benefit the public generally.

         i. Passing on confidential information acquired in their official City position for their own benefit
or for the benefit of others.




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              k. While employed with the City or within one year following termination of City service,
      purchasing any property or equipment from the City, either directly or through a third party such as an
      auction house, unless the purchase is subject to prior written approval by the City Manager.

              The Ethics Commission developed a "Conflict of Interest Statement" to educate employees
      regarding their duties and obligations as a City employee under the Ethics law. All employees are
      required to read and sign this Statement at the time of hire.

               The City's Ethics Ordinance requires the City Manager, City Attorney, Assistant City Manager(s),
      and Department Heads to file a Financial Disclosure Statement annually, no later than January 31 of each
      calendar year, with the Ethics Commission. The Statement must disclose any gifts, the value of which is
      $10 or more, received during the preceding calendar year from any person having a contract with the
      City or any person regulated by their agency. The Statement must identify the donor of the gift and its
      approximate value at the time of receipt.

               For more information on the City's Ethics Ordinance, see Chapter 7A of the Gaithersburg City
      Code.

      Section 1105. Information Technology Resources Use

      1105.1      Purpose/Overview
               The purpose of this policy is to set forth the guidelines and standards for use of the City's
      information technology resources, including but not limited to desktop computers, servers, networks,
      related equipment and software applications, supporting systems and the data transmitted on those
      systems, Internet services, Intranet services (CityNet), telephones, voice mail, electronic mail (email),
      facsimile machines, photocopiers, printers, and related office equipment and supplies.

              The City of Gaithersburg maintains technological resources to facilitate operations and
      communications, to improve access to and exchange of information, to increase efficiency and
      productivity, to connect citizens to government, and to assist City employees in providing effective and
      high quality services to the public.

              All employees of the City of Gaithersburg are subject to the provisions of this policy. Contractors
      of the City of Gaithersburg are not authorized any personal use of City technology unless it is specifically
      permitted by contract or other memoranda of agreement.

      1105.2       Privacy and Confidentiality
              Information technology resources are the sole property of the City of Gaithersburg. The City
      reserves the right to inspect technology systems, including any and all files stored thereon, and monitor
      communications for improper use at any time without advance notice or consent. The use of technology
      resources is not necessarily secure, private, or anonymous.

              Business telephone calls may be monitored or recorded for legitimate business purposes such as
      providing training, instruction, or protection against abusive calls.

      1105.3       Regulations/Procedures
               Employees are authorized to use the City's information technology resources in accordance with
      the obligations and responsibilities specified below:

              a. Authorized Purposes for Use
                   Employees shall use information technology resources for purposes related to their
      employment with the City and for the enhancement of their job related functions. Occasional and
      incidental personal use of the City of Gaithersburg's technology resources may be permitted, provided
      that such use does not:




176
              1. Interfere with the performance, productivity, employment duties, or other obligations to
the City, of the user, or any other City employee.

             2. Interfere with the use of technology resources by the City.

             3. Burden the City with anything more than de minimis additional costs, to be determined in
the City's sole discretion. De minimis means a minimal amount as defined by Internal Revenue Service
(IRS) regulations.

             4. Include any activity that is prohibited under any City policy.

             5. Damage the integrity or operability of the City's IT resources and/or systems.

        b. Authorized Access
            Employees shall keep server account identification and passwords confidential. Only those
employees who have been authorized by a Department Head shall have access to City applications that
contain confidential or sensitive information or data (such as addresses, phone numbers, customer
purchase history, customer payment history, etc.). Under no circumstances shall an employee use such
information or data for personal reasons or for any purpose other than carrying out defined job duties.

             Employees are prohibited from accessing or attempting to access information technology
resources for which they do not have explicit authorization by means of user accounts, valid passwords,
file permissions, or other legitimate access and authentication methods. It is a violation of this policy to
grant another individual access to any City accounts that have been authorized to an employee or to use
another employee's authorized accounts, user ID's, or passwords.

        c.   Prohibited Activities
             Certain use of City equipment is prohibited, including but not limited to:

              1. Viewing, sending, soliciting, downloading, or storing material that is likely to be
considered threatening, disruptive, defamatory, inflammatory, profane, obscene, pornographic, or
sexually explicit; that could be construed as a harassment or disparagement of others based on their
race, national origin, citizenship, ethnicity, ancestry, marital status, sex, sexual orientation, age, disability,
religion, or political beliefs; that pertains to or advocates violence, illegal gambling, illegal weapons, or
terrorist activities; that promotes unethical practices; or any activity prohibited by Federal or State law or
City regulation or policy. The City reserves the right to determine whether any material or activity
violates this prohibition. The incidental and unsolicited receipt of sexually explicit or extremist material,
such as might be received through email, shall not constitute a violation of this section, provided that the
material is promptly deleted and neither stored nor forwarded to other parties, provided that forwarding
to and storing by the City's spam filter shall not be considered a violation of this policy.

             2. Uploading or otherwise transferring out of the City's direct control any software licensed
to the City or data owned or licensed by the City without explicit written authorization.

            3. Loading software onto City equipment without the approval and guidance of a supervisor
and the Information Technology Department. Software includes, but is not limited to, computer games,
screen savers, chat programs, customized cursors, freeware, shareware, and non-City email programs.

                3.5    The installation of hardware onto City computers, networks, phones, or office
equipment. Hardware includes, but is not limited to, desktop computers, laptop computers, printers, disk
storage devices, Random Access Memory (RAM), and monitoring devices.

             4. Using sensitive or confidential data from City applications for any purpose other than
carrying out defined job duties, and/or transmitting sensitive or confidential data to non-City parties
including, but not limited to, citizens, contractors, organizations, and members of the press, without the
permission of a Department Head.




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                  5. Using technology for commercial purposes or in support of other "for profit" activities
      such as outside employment or business (for example, selling real estate, preparing and copying a
      newsletter, or preparing tax returns for a fee).

                     6. Using technology to raise funds for any outside activity or personal cause, to endorse any
      product or service, to participate in lobbying or prohibited partisan political activity (e.g., expressing
      opinions about candidates or distributing campaign literature), except for communication with elected
      officials in the course of regular job duties.

                  7. Acquiring, reproducing, transmitting, distributing, or using: any controlled information,
      including computer software and data, protected by copyright, trademark, privacy laws; other proprietary
      data or material with other intellectual property rights beyond fair use; or export-controlled software or
      data.

                   8. Using technology resources to post personal messages to external news groups, bulletin
      boards, or other public forums. Employees must not give the appearance that they are acting in an
      official capacity or that the City endorses or sanctions their personal activities or beliefs.

                  9. Repeatedly downloading or sending/storing large files via email. Allowable sizes can vary
      according to bandwidth and storage capabilities, to be determined in the City's sole discretion.

                  10. Creating, copying, or transmitting chain letters or other mass mailings, regardless of the
      subject matter.

                  11. Engaging in disruption or vandalism of technology resources, including but not limited to
      uploading, downloading, or creating computer viruses and/or in any other malicious attempt to harm or
      destroy technology equipment, materials, or the data of any other user.

                 12. Removing from City premises any City technology resources or equipment without the
      express permission of the Information Technology Director.

                   13. Making long distance phone calls, except in an emergency. Personal long distance phone
      calls should be made by using a personal calling card.

             d. Duty to Report
                 Employees shall report promptly any security problem or misuse of any City system to their
      immediate supervisor or to the Information Technology Director.

      1105.4      Email Access on Mobile Communications Devices
              At the City's discretion, the City may provide access to the City email system via cellular
      telephones, Personal Digital Assistant (PDA) devices, etc. The use of personal (non-City) devices to
      access mail must first be approved by a Department Head.

                In the event that any device is lost, users must contact the IT Department within 24 hours so
      that IT staff can disassociate the device from the email system. Additionally, the City reserves the right
      to utilize its remote management capabilities to electronically disable or remove data from the lost device.
      The City will do so without regard to the potential loss of personal data or third-party applications which
      may have been purchased by the device's user.

      1105.5       Closing of Accounts
               The City shall close an employee's accounts and terminate access to files, email, networks, and
      other technology resources when the individual's employment with the City ends, unless it is in the City's
      best interest to maintain that access. Access to a terminated employee's email and files may be provided
      to a replacement employee if it is in the City's best interest to do so.




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1105.6       Violations
         Any employee who violates any provisions of this policy is subject to suspension or revocation of
access privileges and/or disciplinary action up to and including termination of employment, civil litigation,
and/or criminal prosecution for misuse of information technology resources. A violation of this policy
shall be administered in accordance with Section 1400, Disciplinary Actions.

Section 1106. Political Activity
        No employee of the City may participate in political activity during working hours or while
representing the City in an official capacity. An employee who is elected or appointed as Mayor or a
member of the City Council of the City of Gaithersburg must resign his/her position with the City prior to
taking office.

Section 1107. Secondary Employment
        The primary position held by a classified employee or unclassified management employee of the
City shall take precedence over any other occupational interest of the employee. No classified employee
or unclassified management employee of the City shall engage in any secondary position that (1) will
cause or could cause a conflict of interest, or the appearance of a conflict of interest, with City
employment and/or (2) interfere with or take precedence over the employee's performance of the duties
and responsibilities of his/her primary position.

        Any employee desiring to engage in secondary employment, including self-employment, shall
request approval from his/her Department Head and the City Manager prior to accepting or engaging in
such employment (or if already engaged in such employment, prior to continuing) by completing and
gaining approval for the secondary employment via the Application for Secondary Employment.

         If the Department Head and/or the City Manager determine that a conflict of interest exists, the
request to engage in secondary employment will be denied. If the request is approved, such approval
will remain in effect until (1) the employees ends the secondary employment voluntarily; (2)
circumstances regarding the secondary employment change necessitating submission of a new
Application; or (3) in the opinion of the Department Head, the secondary employment has resulted in a
conflict of interest or is interfering with or taking precedence over the employee's performance of the
duties and responsibilities of his/her primary position and approval of the secondary employment is
rescinded.

       Secondary Employment Applications will be maintained by the Human Resources Department in
the employee's personnel file. It is the employee's responsibility to advise his/her Department Head and
the Human Resources Department of changes in or termination of secondary employment.

        Classified employees and unclassified management employees may occupy part-time positions
with the City, provided the duties of the part-time position are significantly different from those of the
primary position. The Human Resources Director or his/her designee shall verify that the employee's
part-time employment is in a different capacity than the employee's primary employment (pursuant to
Fair Labor Standards Act regulations). Requests will be approved by the Human Resources Director;
requests denied will be returned to the Department Head, who will advise the employee.

          Employees sustaining an injury arising out of non-City employment resulting in lost time from the
City will not be covered by the City of Gaithersburg. Lost time due to such an injury will be charged to
the employee's accrued paid leave.

        Employees who hold secondary employment and fail to maintain a valid Secondary Employment
Application will be subject to disciplinary action as set forth in Section 1400, Disciplinary Actions.

Section 1108. Smoking in the Workplace
       The City of Gaithersburg is committed to providing a safe and healthy environment for
employees, citizens, and other users of City facilities. Accordingly, as provided in Chapter 18A of the




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      Gaithersburg City Code, "Smoking and Tobacco Products Placement," smoking is prohibited in all City-
      owned and City-leased offices, buildings, and vehicles.

              Each facility has a designated outdoor area where smoking is permitted. The area is equipped
      with an appropriate receptacle for discarding spent tobacco, ashes, and cigarette butts. Smoking is
      prohibited discouraged at or near main entrances to City-owned or City-leased buildings where the public
      normally enters and exits.

               As provided in Chapter 18A, Section 18A-3, of the City Code, smoking may be permitted in
      private, enclosed offices in City government workplaces when the door leading to another workplace is
      closed, or in workplace areas so large that smoking by one person would not affect another person (as
      designated by the City Manager or his designee). If a private, enclosed office is a shared workplace,
      smoking is permitted only with the consent of the nonsmokers and only if appropriate ventilation is
      provided.

               Complaints concerning violations of this policy should be directed to the employee's immediate
      supervisor for resolution. Complaints concerning violation of this policy where the employee or person is
      not known should be reported to the supervisor of that office/area and that area should be monitored
      when possible.
       Violations of the policy shall be administered in accordance with Section 1400, Disciplinary Actions.

              For more information on the City's Smoking Ordinance, see Chapter 18A of the Gaithersburg City
      Code.




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                PERSONNEL RULES & REGULATIONS MANUAL

                                  SECTION 1200
                            PERFORMANCE EVALUATIONS

Section 1201. Purpose
          The purpose of the employee performance evaluation policy is to provide a comprehensive
process by which each employee is periodically and regularly evaluated on his/her individual performance
as it relates to his/her position. Regular performance evaluations:
           Help employees clearly define and understand their responsibilities
           Suggest ways in which employees can improve performance
           Facilitate better working relationships
           Provide a historical record of performance
           Contribute to professional development
           Provide a fair basis for awarding compensation based on merit

Section 1202. Scope
        This policy applies to all classified employees and unclassified management employees, but may
also apply to other employees as determined by the supervisor.

Section 1203. Policy
       The employee performance evaluation process is intended to accomplish the following objectives:

       a. To allow the supervisor to communicate to the employee performance expectations and
department/division goals and to allow for the mutual exchange of information about performance
between the supervisor and the employee.

        b. To enhance individual employee performance and ensure effective City operations.

        c. To promote and support performance/behavior which is in conformance with the City's
values-based culture.

       d. To document both formal and informal performance discussions held with the employee
throughout the review period.

         e. To document performance areas in which the employee does well and those areas which
require improvement; to establish performance goals and plans to correct performance shortcomings and
focus on employee development.

        f. To determine successful completion of the probationary period and to determine successful
progress in meeting performance requirements following a promotion.

        g. To help guide management decisions regarding employee salary increases, wage
adjustments, training needs, assignments, promotions, transfers, demotions, disciplinary actions,
continued employment with the City, and for such other purposes as may be deemed advisable.

Section 1204. Procedures

        a. Supervisor Responsibilities

            1. Clear Performance Standards
                 (a) Each supervisor is responsible for setting and communicating clear performance
standards for his/her employees at the beginning of and throughout the review period.




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                       (b) In evaluating employees, supervisors shall consider factors such as the experience
      and training of the employee, the job description, and the employee's attainment of previously set goals
      and objectives.

                   2. Formal Evaluations
                       On a regular basis and as described in this policy, each supervisor is responsible for
      conducting formal performance evaluations on each subordinate employee. A formal performance
      evaluation includes completing an Employee Evaluation Form, meeting with the employee to discuss the
      employee's performance and update the employee's work plan, and developing a performance
      improvement plan (if necessary). Performance evaluations shall include a summary of all past informal
      discussions related to performance during the review period and future performance goals.

            b. Employee Responsibilities
                1. The employee shall be responsible for following through on goals, objectives and
      comments as noted on the evaluation.

                   2. Each employee must complete an annual self-evaluation of his/her own performance as
      part of the formal evaluation process.

                 3. Each employee has the right to comment on his/her performance evaluation. If the
      employee chooses to do so in writing, such comments will be included in his/her personnel file.

                 4. Each employee is encouraged to provide feedback regarding his/her supervisors'
      performance as part of the formal evaluation process. This feedback may be submitted confidentially if
      the employee so desires.

              c.   Performance Evaluation Schedule

                   1. Timely Processing
                       The Human Resources Department will develop and maintain a system to assist
      supervisors in completing performance evaluations on time. The timely processing of performance
      evaluations is one of the most important leadership responsibilities for those in supervisory positions.

                      It is the Department Head's responsibility to ensure that performance evaluations are
      completed and returned to the Human Resources Department in a timely manner and no later than the
      due date established by the Human Resources Department.

                        Performance evaluations that are not fully completed will be returned to the department
      for completion.

                   2. Frequency
                       (a) Annual Review
                             Each employee will receive an annual performance evaluation to be conducted
      prior to the end of the fiscal year. All evaluation forms must be completed, approved and submitted to
      the Human Resources Department following the performance evaluation discussion by the date
      established by the Human Resources Department.

                        (b) New Hires & Promotions
                            Newly hired employees and employees who have received a promotion will be
      evaluated a minimum of (6) months from the date of hire or the date of promotion, and at six-month
      intervals while the employee is in a probationary status. During this six-month period, supervisors should
      closely monitor employees and perform frequent, informal counseling and evaluations.

                        (c)  Performance Issues
                             Supervisors must conduct a formal performance evaluation at any time when the
      supervisor considers the employee's level of performance to be below standards and/or require




182
development. A Performance Improvement Plan must be completed as part of the performance
evaluation and shall include measurable suggestions for change and specific time frames in which those
changes are to occur, along with consequences should the employee fail to make the required changes.

        d. Performance Evaluation Forms

           1. Employee Evaluations
               Formal employee performance evaluations must be completed using standard forms
developed and made available to all supervisors by the Human Resources Department.

            2. Work Plan
                At the time of hire, the employee and the supervisor will establish a work plan outlining
the employee's primary duties and responsibilities and continuing projects, special projects or
assignments, and established goals and objectives for the position. Thereafter, the work plan will be
reviewed and updated as part of the evaluation process. The information in the work plan is used to
assist the employee and supervisor in communicating and reaching mutual goals. The Work Plan may be
on the Work Plan form or a separate document.

           3. Self-Evaluations
               In addition to regular and periodic review by supervisors, each City employee must
complete an annual evaluation of their own performance during the review year. Formal self-evaluations
must be completed using a standard form developed by and available from the Human Resources
Department.

             4. Supervisor Feedback
                 Each City employee is encouraged to provide feedback regarding his/her supervisors'
performance during the review year. Formal supervisor feedback must be offered using the standard
form developed by and available from the Human Resources Department; however, the employee will not
be required to sign the feedback form. Each supervisor will receive a summary of all feedback received.
Employees may provide feedback for their immediate supervisor and all in-line supervisors up to and
including the City Manager.

             5. Retention
                The completed performance evaluation packet will become part of the employee's
personnel file maintained by the Human Resources Department.

        e. Approvals
             Performance evaluation forms shall be reviewed and signed by the secondary supervisor (if
applicable) and the Department Head before the immediate supervisor shall discuss and review the
performance evaluation with the employee.

        f.  Performance Evaluation Discussion
            Supervisors will conduct a discussion with the employee regarding the performance
evaluation. The purpose of the discussion is to review past performance, address any questions about
the performance review, and to set goals and objectives for the period ahead.

        g. Employee Signature

          1. Following the performance evaluation discussion, the employee should be asked to
comment on the evaluation and acknowledge it by signing and dating the form.

             2. The employee will be given a copy of the signed evaluation.

           3. The employee's signature indicates that the performance evaluation took place and that
the employee understands what was communicated. The employee's signature does not indicate that the
employee agrees with the assessment.




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                  4. If the employee declines to sign the form, he/she should be encouraged to discuss any
      concerns.

                  5. If, after such discussion, the employee still declines to sign the evaluation, the supervisor
      should note "employee declined to sign" on the form, add his/her initials and the date, and give the
      employee a copy of the evaluation.

                6. The supervisor should notify the secondary supervisor (if applicable) and the Department
      Head when an employee declines to sign the performance evaluation form.

      Section 1205. Grievance Procedures
              Any classified employee or unclassified management employee who believes that his or her
      performance evaluation is not a true reflection of his/her work performance should try to resolve
      differences in discussions with his/her immediate supervisor. If agreement cannot be reached, the
      employee may follow the guidelines for filing a grievance as set forth in Section 1700, Grievance
      Procedures.




184
                PERSONNEL RULES & REGULATIONS MANUAL

                              SECTION 1300
                   EMPLOYEE TRAINING AND DEVELOPMENT

Section 1301. Purpose
        The City of Gaithersburg believes that training and development are integral components of work
performance and are inherently tied to the City's mission, goals, workforce planning, and the provision of
services to the public. The City values the potential of its employees and believes that developing
employee potential, through coaching, education and training, and on-the-job training is critical to
organizational effectiveness.

        It is the responsibility of the Department Head, the supervisor, and the employee, working in
partnership, to determine the work goals and training needs for each. Specific training is subject to
management approval based on available resources. The program enables the City to fill future positions
from within its own ranks and provides for the professional growth of employees.

Section 1302. Training & Development Objectives
       The objectives shall be designed and established to achieve the following:

        a. Improve the quality of services provided by the City through its staff.

       b. Improve the quality of performance for each individual employee and the various
departments of the City.

        c.   Prepare employees for career advancement.

      d. Create a work force with the occupational skills necessary to meet current and future
employment needs.

        e. Keep employees current on changing technologies in the workplace.

Section 1303. Training & Development Responsibilities

        a. Human Resources Department
             The administration of employee training and development falls under the general
responsibility of the Human Resources Department, but shall strongly depend on input and cooperation of
all Departments.

        b. Department Heads
            Department Heads shall share in the responsibility for an effective personnel development
program. Department Heads will ensure that training and development plans are prepared, updated, and
discussed by supervisors and employees as part of the performance evaluation process and are
consistent with the mission and needs of the Department.

        c.   Supervisors
             Supervisors have the primary responsibility for initiating communication about training and
individual development including but not limited to:

           1. Working in partnership with individual employees to assess training needs and coordinate
work group and individual employee development plans.

             2. Ensuring implementation of employee development plans.




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                  3. Incorporating training and development into the performance evaluation process.

               d. Employees
                    City employees have responsibility for initiating discussion to identify and assess their own
      specific training needs including but not limited to:

                 1. Working in partnership with supervisors to meet their own training and development
      needs and those of the work group.

                  2. City employees may identify, where possible, certain needs related to their individual
      work experiences which are required to meet all of the performance and advancement criteria which may
      be defined and established by City management.

      Section 1304. Tuition Assistance

      1304.1 Purpose
             To encourage and support the efforts of City of Gaithersburg employees to obtain skills,
      knowledge, and abilities that increase the effectiveness of work performance in their present position and
      improve their career opportunities in the City of Gaithersburg.

      1304.2 Eligibility
              All classified employees and unclassified management employees of the City are eligible for this
      benefit. Assistance is not available to employees on probation or in a leave status.

      1304.3 Funding Amount
               Tuition assistance funds are based on budget allocations and availability. Availability of funds is
      limited to those budgeted in the fiscal year in which assistance is requested; funds cannot be split
      between fiscal years. Funds are distributed based on the fiscal year in which the course starts.

      1304.4 Criteria
               a. An employee who receives tuition assistance must agree to remain employed by the City for
      a period of at least 24 months following receipt of tuition assistance funds. Any employee who receives
      tuition assistance and leaves City employment within 12 months of receiving the tuition assistance shall
      repay to the City all tuition assistance funds they received during the 12 months prior to actual date of
      termination. Any employee who leaves City employment between 12 and 24 months of receiving the
      tuition assistance shall repay to the City the pro-rated amount due depending on the number of months
      remaining before the 24-month commitment is met. The amount of repaid tuition assistance funds may
      be reduced or waived by the City Manager in the event that the employee is terminated due to a
      reduction in force.

                   As a recipient of tuition assistance, the employee authorizes the City to deduct the balance
      owed for tuition assistance from his/her paycheck or any other final payments due to the employee. The
      employee understands that, if sufficient funds are not available to satisfy the tuition assistance owed to
      the City, the employee will pay the balance owed to the City by personal check, cash, or money order on
      or before their final workday. The tuition assistance does not have to be repaid if the employee dies or is
      considered disabled under the City's long-term disability insurance program.

              b. The employee and the Department Head must be able to demonstrate that the course work
      is:

                  1. Directly related to the employee's current City work or normal career progression; or

                  2. Part of a degree program or curriculum that is City job related; or

                    3. Directly supportive or improves skills required for current job assignments, duties, or
      responsibilities that are a condition of continued employment; or




186
             4. Required by law or regulation.

            Course work that does not qualify for tuition assistance as job-related under the criteria
above may be approved by the City Manager if it is to prepare the employee to make a career change
within the City. This approval must be in writing and be obtained prior to registration or payment for any
course.

        c.   The course work must allow the employee to:

            1. Obtain education or training towards a certificate, associate degree, undergraduate
degree, or graduate degree (higher education institutions must be fully accredited); or

             2. Take a credit or non-credit course or seminar; or

             3. Complete a GED program (limited to two tests per employee).

        d. Tuition Assistance funds may be used for training or education offered by one of the
following public or private organizations where the primary purpose is educational:

             1. College or university; or

             2. Vocational or business school; or

             3. Professional, scientific, or technical institute; or

             4. An agency or business that offers courses or training.

        e. The following do not qualify for tuition assistance:

             1. Auditing of a course; or

             2. Credit courses taken on an audit basis (e.g., no grade); or

             3. Exams given to receive credit for work life experience; or

             4. Courses or classes that are self-paced or that are open-ended; or

             5. Courses or classes for which a letter grade or pass/fail grade is not earned; or

            6. Books, manuals, software, supplies, etc., required for the course or any other materials
and items that may be used outside of the class (calculators, computers, etc.); or

             7. Application fees or other extra fees such as late registration, library book returns,
parking, travel, food, lodging, and other costs incidental to the credit courses.

1304.5 Course Completion/Submission of Grades
         Successful completion of a course is a grade equivalent of a "C" or better in each undergraduate
course and grade equivalent of a "B" or better for each graduate course. In circumstances where
pass/fail is the only grading system used, a pass grade must be earned.

        Employees must submit a grade report to the Human Resources Department within 30 days of
course completion to verify the grade received. If the grade report indicates that the employee has not
successfully completed the course as defined above, the employee must reimburse the City for the
full amount of the tuition assistance funds received for the applicable course. Funds may be
repaid by cash or check made payable to the City of Gaithersburg or through payroll deduction.




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               If the employee fails to provide the grade report within 30 days of course completion, the Human
      Resources Department will send one written reminder to the employee that the grade report must be
      submitted immediately. If the employee does not provide the grade report within five business days
      after the date of the written reminder, the full amount of the tuition assistance funds received for the
      applicable course will be deducted from the employee's paycheck, the employee's eligibility to receive
      tuition assistance benefits will be suspended for up to one year, and the employee may be subject to
      further disciplinary action.

             Classes must be taken during off-duty hours or during periods of approved leave. No
      compensatory leave accrual or overtime compensation will be granted for courses taken in off-duty
      hours.

               The employee's department is responsible for maintaining tuition assistance records on each
      employee who uses the program, including information on what courses were taken, dates of courses,
      costs of tuition, and completion of courses.

      1304.6 Dropped Courses
              Employees who drop a course are required to notify Human Resources within 10 days of
      dropping the course and must reimburse the City for any tuition assistance paid within 30 days of
      dropping the course. Failure to do so will result in payroll deduction and suspension of tuition
      assistance benefits for up to one year. Failure to adhere to the terms of this policy may subject the
      employee to disciplinary action.

             In the event that a class is canceled or rescheduled, an alternate class may be selected. The
      employee must repeat the approval process within two weeks after the course start date.

      1304.7 Procedures

               a. How to Apply
                   The Tuition Assistance Program Application must be completed prior to course registration to
      determine if the expenses for the class are eligible for reimbursement. Tuition Assistance Program
      Application forms are available in the Human Resources Department or on CityNet. These submissions
      must be received by the Department Head within a reasonable period prior to the day the class starts.
      Failure to submit the request in a timely manner may cause it to be denied at the discretion of the
      Department Head. The City will not pay late fees.

             b. Steps for Approval
                 1. Requests for tuition assistance submitted after the course has been completed may not
      be approved for reimbursement at the discretion of the Department Head. Prior to course registration,
      the employee completes Section I of the Tuition Assistance Application Form and submits it to the
      Department Head for approval (Section II).

                  2. The Department Head reviews the request to determine need, job relatedness, and
      funding availability. If approved, the Department Head completes Section II of the Tuition Assistance
      Form and forwards the original to the Human Resources Department. If the Department Head
      disapproves, the Form is returned to the requesting employee.

                  3. The Human Resources Director or his/her designee reviews the form for job relatedness
      and compliance with policy, and determines availability of funds. If approved, the original will remain in
      the Human Resources Department, a copy is returned to the Department Head, and the employee is
      authorized to register for the course.

      1304.8 Steps for Payment




188
        After tuition assistance has been approved, the employee may request payment for the course in
one of two ways: (a) payment advance; or (b) payment reimbursement. The employee should follow
the steps for the preferred method of payment as outlined below.

          a. Payment Advance
             To request an advance of tuition for the course:

           1. Employee completes and submits completed Tuition Assistance Program Application for
Department approval.

             2. Employee submits approved request to Human Resources.

            3. Human Resources forwards copy of the approved request to the Finance Department for
issuance of tuition assistance check.

            4. Tuition assistance check is forwarded to the employee; employee registers, pays for, and
attends the course.

               5. Within 10 days after receipt of tuition assistance check, employee must forward the paid
tuition bill along with the course description, fee schedule from the course catalog, and the original
receipts verifying payment of assistance amount requested to the Human Resources Department.
Receipts must include employee's name and must provide a detailed proof of payment (itemized receipt,
credit card statement, contract, etc.).

            6. Within 30 days after completion of the course, the employee must submit a grade report
to the Human Resources Department to verify that the employee satisfactorily completed the course with
a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. If
the grade transcript indicates that the employee did not satisfactorily complete the course, the employee
must reimburse the City in full. Any grade that is failing, incomplete, or withdrawn will not be considered
as successful completion.

          b. Payment Reimbursement
             To request reimbursement of tuition for the course:

             1. The employee registers, pays for the course with his/her personal funds, and attends the
course.

           2. Employee completes and submits completed Tuition Assistance Program Application for
Department approval.

            3. Employee submits the approved Tuition Assistance Program Application, the grade report
for the course completed, and the paid tuition bill along with the course description, fee schedule from
the course catalog, and the original receipts verifying payment of assistance amount requested to the
Human Resources Department. Receipts must include employee's name and must provide a detailed
proof of payment (itemized receipt, credit card statement, contract, etc.).

            4. Human Resources verifies the documentation and forwards to the Finance Department
for issuance of a reimbursement check.

             5. Finance Department forwards check to employee.

Section 1305. Certification Examinations
        The City will pay expenses incurred for maintaining required certifications and licensures. The
City may pay for initial certifications and licensures as recommended by the supervisor and approved by
the Department Head. Expenses may include registration, lodging, travel, and testing on City time.




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              The Department Head will review requests for initial examination expenses and, if deemed
      appropriate, will approve City payment of expenses incurred in obtaining the certification.

               The City will pay only for expenses incurred relative to the first examination of any specific
      certification which is applicable to the employee's position within the City's organizational structure. If
      the employee fails the test on his/her first attempt, all expenses related to subsequent testing to receive
      the certification will be the sole responsibility of the employee.

               When the City pays expenses incurred in obtaining specialized job-related certification, the
      employee will incur an obligation to continue employment with the City for one year from the date of
      certification completion. If an obligated employee voluntarily resigns from City employment within one
      year after the end date of the certification completion, the employee will reimburse the City a pro-rated
      portion of the cost of the certification expenses.




190
                 PERSONNEL RULES & REGULATIONS MANUAL

                                      SECTION 1400
                                  DISCIPLINARY ACTIONS
Section 1401. Introduction
         The City of Gaithersburg recognizes that the success of City government in providing quality and
efficient public services directly correlates with appropriate employee conduct and performance.
Employee behavior which is positive and supportive of the goals of effective municipal management is
fully encouraged. On occasion, the work behavior, production, or personal conduct of an employee may
fail to meet acceptable standards of performance or is inconsistent with the goals and needs of the City.
Supervisors are responsible to bring such situations to the attention of the employee in a timely manner
with the goal of correcting the unacceptable behavior. If such behavior continues, disciplinary action may
be issued.

Section 1402. Purpose
         The purpose of this policy is to establish procedures for informing an employee of conduct or
performance below acceptable standards, to give an employee fair warning and counseling so that
individual expectations are understood, to provide supervisors with corrective action guidelines, and to
provide for appropriate documentation of the actions taken. All City of Gaithersburg employment is "at
will" and nothing contained in this policy negates or supersedes the "at will" policy or creates an
employment contract.

Section 1403. Applicability
         All City employees are subject to disciplinary action. Such discipline may include, but is not
limited to, oral reprimand/counseling, written reprimand, suspension, demotion, loss of pay, or
termination.

Section 1404. Cause for Disciplinary Action
       Causes for disciplinary action shall include, but not be limited to, the following:

        a. Incompetence, inadequate performance, or nonperformance of assigned duties.

         b. Neglect of duty or negligence in performance of duty causing a substantial risk of personal
injury or damage to property.

         c. Possession, distribution, or use of illegal drugs or intoxicants in the workplace; reporting for
work under the influence of intoxicants; the misuse of legal drugs which create a substantial risk of injury
to self or others or which impair work performance; a positive drug/alcohol test or refusal to take a
drug/alcohol test.

        d. Habitual or excessive absence or tardiness, or abuse of sick leave privileges.

        e. Absence from duty without authorization or failure to notify one's supervisor when unable to
report to work on time.

         f. Conviction of a felony, or conviction of any crime where the conviction would tend to impair
effectiveness as a City employee or tend to bring discredit or reproach upon the City or department
involved.

        g. Violation of City safety rules or policies.

       h. Violation of the provisions of federal or state law, or the City Charter, ordinances, this
Manual, or any other City rules or regulations including department-specific policies during working hours.




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              i. Discourteous treatment of the public or City officials or employees, offensive conduct or
      language or conduct unbecoming a City employee; behavior or actions on the part of the employee,
      either on or off duty, which hinder or jeopardize the successful operation of the City, undermine
      teamwork and cooperation among City employees, or undermine the public confidence in the City or its
      employees.

              j.   Insubordination, willful disobedience, or failure to follow a lawful supervisory directive.

              k.   Negligence or carelessness with money or other property of the City.

              l. Inappropriate or unauthorized personal use of City resources, including, but not limited to,
      tools and equipment, materials and supplies, vehicles, facilities and grounds, work time, and information
      resources and technologies.

              m. Falsification, alteration, or destruction of City documents or intentional destruction of City
      property.

              n. Unauthorized use or disclosure of confidential information.

              o. Dishonesty, including giving false information or withholding information on personnel
      documents, benefit forms, accident reports, etc., or making false claims or misrepresentations to obtain
      benefits.

              p. Fraud in securing employment.

              q. Falsification of time and attendance records.

             r. Physical violence, including engaging in acts of bodily harm or threatening to inflict bodily
      harm, physical intimidation, harassment, verbal or written threats of violence.

             s. Using or threatening or attempting to use personal or political influence in securing
      promotion, transfer, change of rate of pay or nature of work, or other status or condition of employment.

             t. Inducing, or attempting to induce, an officer or employee in the service of the City to commit
      an unlawful act or to act in violation of any lawful department or official regulation or order.

              u. Taking for personal use any fee, gift, or other valuable thing in the course of work or in
      connection with it, when such gift or other valuable thing is given in the hope or expectation of receiving
      a favor or better treatment than that accorded other persons.

               v. Any other act which is detrimental to the good order, discipline, and repute of the City or the
      City service.

      Section 1405. Disciplinary Action Responsibilities
             In general, supervisors shall consider the following elements in determining when and how to
      implement disciplinary action:

             a. Notice
                 Employees shall be informed of rules and regulations on performance standards and/or
      misconduct and the consequences of sub-par performance or committing a workplace infraction.

             b. Reasonableness
                  Rules and regulations pertaining to performance standards and/or misconduct shall be
      reasonable and pertinent to the job/workplace.

              c.   Investigation




192
           All investigations concerning an employee's performance and/or misconduct shall be
performed in a fair, objective, and timely manner.

        d. Equitable Treatment
            Similar instances of poor performance and/or misconduct shall receive similar treatment in
terms of discipline; however, disciplinary actions may be increased for repeated violations.

        e. Preponderance of Evidence
           Discipline shall be based upon a strong supporting body of evidence, rather than speculation
and/or unfounded information.

        f.   Proportional
             Discipline issued shall be proportional to the poor performance and/or misconduct
committed.

        g. Progressive and Corrective
              Excluding serious and other egregious offenses, discipline issued shall be progressive in
nature (i.e., verbal, written, etc.) and clearly display corrective attempts to remedy the employee's
performance through training and/or counseling (i.e., re-training, EAP, etc.).

Section 1406. Investigation Procedures; Administrative Leave
         When an immediate supervisor becomes aware of evidence of the need for employee discipline,
he/she shall investigate the circumstances of the misconduct or lack of performance and make a
determination that there is sufficient evidence of misconduct or lack of performance, prior to deciding
upon the type of disciplinary action to be recommended or taken. Documentation of the discipline
investigation or of the conduct shall be required on the part of the immediate supervisor in order to
establish appropriate records. The Human Resources Department will be available to assist in such
investigations.

        In cases where investigations of a more substantial nature are required, the following types of
review shall be administered:

        a. Administrative Review
            Investigations of non-criminal violations conducted in the absence of immediate or conclusive
evidence involving any City employee. These investigations shall be conducted by the Department Head
and the Human Resources Director or designees, who shall obtain sufficient information, including
documentation and/or sworn statements, in order to determine the necessity or level of disciplinary
action. The Human Resources Director or designee shall assume responsibility for acquiring any
necessary sworn statements. Administrative investigations shall be conducted expeditiously.

        b. Criminal Investigations
             Investigations conducted when criminal violations are allegedly committed by any employee
of the City. These investigations shall be conducted by the City Police or other appropriate law
enforcement agency, in collaboration with the Human Resources Director.

       In instances where an investigation of serious, unlawful, and/or other extreme misconduct is
necessary, and there is reasonable concern that a crime has occurred, a criminal investigation shall be
conducted.

         During the investigation of an incident of employee misconduct or other performance violation,
the City Manager may place an employee on administrative leave with full pay and benefits. Such leave
will be for the length of the pending investigation. Placement on administrative leave occurs when the
nature of the incident creates an environment that compromises the employee's or other employees'
safety or ability to effectively perform job duties, or otherwise adversely impacts the interests of the City.




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              If disciplinary measures are not recommended after the investigation, the administrative leave
      period shall not be considered as disciplinary in nature. A document confirming a favorable
      determination as to the matter should be made a part of the employee's personnel file.

      Section 1407. Disciplinary Action Procedures
               The City of Gaithersburg promotes a policy of progressive and corrective discipline, i.e., discipline
      which gradually increases depending upon the severity and/or frequency of the infractions. The goal is
      to put the employee on notice of unacceptable conduct and to give the employee a reasonable
      opportunity to modify his/her behavior.

              Progressive disciplinary action, including but not limited to oral reprimand/counseling, written
      reprimand, suspension, demotion, and termination, is preferred when circumstances support its use. Oral
      reprimands/counseling and written reprimands should be utilized as an element to motivate employees to
      choose behavior conducive to the individual's growth, development, and most importantly, to insure the
      successful operation of the City and its services. However, the City is not obligated to follow progressive
      steps of discipline in every instance; management reserves the right and prerogative to make disciplinary
      decisions based on repeated occurrences of varying incidents, past performance, or severity of the
      incident. Certain misconduct is considered so contrary to the public interest that dismissal shall be the
      only appropriate disciplinary measure.

               The City retains the right to treat each occurrence on an individual basis without creating a
      precedent for situations which may arise in the future. This case-by-case method is designed to take
      individual circumstances and/or mitigating factors into account. These provisions are not to be construed
      as a limitation upon the retained rights of the City, but are to be used as a guide.

               Appropriate progressive disciplinary action will be determined as outlined in the procedures below
      after considering the severity of the offense, previous infractions, time intervals between offenses,
      effectiveness of prior disciplinary actions, overall work performance and teamwork, etc. All disciplinary
      action taken must be properly documented as described in the procedures outlined below. The failure of
      an immediate supervisor and/or Department Head to document and/or take disciplinary action for
      misconduct, or the failure to forward completed disciplinary documents to the Human Resources
      Department, shall serve as grounds for disciplinary action.

              Guidelines for administering progressive disciplinary actions are as follows:

               a. Oral Reprimand/Counseling
                   An oral reprimand/counseling is used to correct minor misconduct or performance problems
      where more severe disciplinary action is not warranted and to counsel the employee on improvements
      expected. Counseling serves as a warning against further repetition of employee behavior. The
      consequences of not correcting the misconduct or performance problems will result in more progressive
      disciplinary action.

                  The supervisor shall complete a Record of Discussion Form summarizing the oral
      reprimand/counseling. The employee shall be required to sign the form signifying that he/she has read
      and discussed the contents with the supervisor. The Record of Discussion Form shall be forwarded to the
      Human Resources Department for retention in the employee's personnel file, with a copy provided to the
      employee. The employee may submit comments on a separate sheet for inclusion in the record.

              b. Written Reprimand
                   A written reprimand may be issued by the supervisor for continued misconduct, performance
      problems of a minor nature, or for more serious matters that do not warrant suspension or other
      advanced disciplinary action. The written reprimand shall include a complete description of the
      incident(s) of misconduct, inappropriate behavior, work habits, or performance which require
      improvement; previous records of discussion; a time frame within which the employee must correct or
      improve his/her behavior; and a warning that future violations or failure to correct the misconduct or
      performance problems will result in further disciplinary actions up to and including termination.




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            Written reprimands shall be signed by the employee to acknowledge receipt and forwarded
to the Human Resources Department for retention in the employee's personnel file, with a copy provided
to the employee. The employee may submit comments on a separate sheet for inclusion in the record.

        c.  Suspension
            A suspension is a temporary removal from job duties and responsibilities with loss of pay.
Suspensions are used to discipline employees for serious misconduct or performance problems, or for
repeated and uncorrected minor misconduct or performance problems. Disciplinary suspensions may be
up to 30 days based upon the circumstances surrounding the employee misconduct. If the suspension is
for more than one day, it shall be issued on a consecutive working day basis.

            Suspension shall be issued when an employee’s actions constitute extreme misconduct or
unlawful behavior, or when instances of progressive discipline support a suspension for a specified period
of time. With the written authorization of the Department Head and the Human Resources Director or
their designees, immediate supervisors have the authority to issue a suspension for three working days or
less. Suspensions of more than three working days require the approval of the City Manager or designee.

             The employee being suspended shall be notified in writing by the immediate supervisor. The
written notification shall consist of the reason for the action and the duration of the suspension and an
explanation of the employee's rights to appeal the suspension. It shall also include a statement that
future violations will result in further disciplinary action up to and including termination. Written
notification of the suspension shall be signed by the suspended employee acknowledging receipt of the
written notification and forwarded to the Human Resources Department for inclusion in the employee's
personnel file, with a copy provided to the employee, the Department Head, and the Finance &
Administration Director for payroll purposes. The employee may submit comments on a separate sheet
for inclusion in the record.

            Any employee who is suspended without pay shall be entitled to all fringe benefits and
continue to earn annual and sick leave during the period of suspension.

         d. Demotion
              A demotion consists of an employee being involuntarily removed from a higher job
classification to a lower job classification in a lower pay grade with a corresponding reduction in salary as
determined by the City Manager. Although not limited to such instances, demotions may occur in some
cases because of an inability to fulfill the duties of the higher level job classification in a satisfactory
manner, or a failure to comply with employment conditions, such as loss of a certification or license
required for performing essential job functions. A demotion may occur in conjunction with other forms of
disciplinary action.

           The immediate supervisor should discuss the potential demotion of an employee with their
Department Head and the Human Resources Director prior to a written recommendation for demotion.
The Department Head shall submit the written recommendation to the City Manager for approval.

              Written notification of the demotion shall be provided to the employee by the Department
Head. Such notice shall include the final decision, the reason(s) for the decision, the employee's new
classification title, the new pay range and pay rate, the effective date of the demotion and an explanation
of the employee's rights to appeal the demotion. Written notification of the demotion shall be signed by
the employee acknowledging receipt of the notification, and forwarded to Human Resources for inclusion
in the employee's personnel file, with a copy provided to the employee and to the Director of Finance &
Administration for payroll processing. The employee may submit comments on a separate sheet for
inclusion in the record.

        e. Termination




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                  The termination of an employee is the permanent removal from employment with the City.
      This occurs when the misconduct or performance problem is severe in nature, or not corrected following
      lesser forms of discipline. At such time all employee benefits cease, except as otherwise provided by law.

                   The immediate supervisor shall provide thorough documentation and discuss
      recommendations for an employee's termination with their Department Head and the Human Resources
      Director or their designees. Upon receiving a written recommendation from the supervisor, the
      Department Head shall submit the documentation to Human Resources. The recommendation for
      termination must be approved by the City Manager.

                   Written notification of the termination shall be provided to the employee by the Department
      Head in person; however, if attempts to deliver the notification in person are unsuccessful, notification
      shall be sent via U.S. certified mail to the most recent address on record in the employee's personnel file.
      The notification shall include the reasons for the termination, documentation upon which the Department
      Head relied in formulating the recommendation and an explanation of the employee's rights to appeal the
      termination; and a copy of the termination notification will be placed in the employee's personnel file and
      forwarded to the Director of Finance & Administration for payroll processing.

                   At the time of termination, employees are required to surrender to their Department Head or
      designee all City property which may be in their possession or custody and all other conditions for
      termination must be complied with prior to issuance of final paycheck.

      Section 1408. Hearing
              Before suspending, demoting, or terminating an employee, the City Manager shall provide the
      employee a reasonable opportunity to be heard, provided that an employee may be suspended without a
      hearing when, in the City Manager's judgment, immediate suspension is required.

      Section 1409. Grievances & Appeals
              An eligible employee may file a grievance concerning any form of disciplinary action in
      accordance with Section 1700, Grievance Procedures. An employee who has been suspended, demoted,
      or terminated and who meets the requirements set forth in Chapter 17 of the Gaithersburg City Code
      (Personnel Ordinance) shall be eligible to file an appeal with the Personnel Review Board.

      Section 1410. Disciplinary Probation
               Disciplinary probation is for a defined period of time, up to but not exceeding 12 months in
      length, that an employee's conduct or performance must be maintained within clearly defined and agreed
      to levels. Probation can occur simultaneously with other forms of discipline. An employee placed on
      disciplinary probation shall receive a written notice stating the beginning and ending dates of the
      probation period. The notice or agreement shall also include the standard of conduct or performance
      that the employee must achieve during the period, the dates to review the employee's progress, and the
      consequences of the employee's failure to satisfy the agreed upon standards

      Section 1411. Employee Assistance Program
              In addition to the disciplinary actions, the supervisor should be mindful of the fact that on
      occasion, problems, difficulties, and/or stresses on or away from the job can adversely impact an
      employee’s ability to perform their assigned duties or conduct themselves properly on the job. Therefore,
      supervisors may exercise the option of suggesting or requiring an employee to meet with the
      Employee Assistance Program. This meeting will give the employee an opportunity to express and reveal
      non-job related problems in a confidential setting and perhaps find assistance to resolve those problems.
      Supervisors need to know that the Employee Assistance Program is not limited to alcohol and drug abuse
      problems. Personal counseling in order to deal with personal crises such as financial problems, marital
      problems, parental problems, and any other life stressors can be effectively addressed through the
      Employee Assistance Program.




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        If a supervisor observes a significant adverse change in an employee’s behavior and there are no
apparent signs of alcohol or drug abuse, it would be wise for the supervisor to suggest or, if deemed
appropriate, to require that the employee meet with the Employee Assistance Program Coordinator.




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                      PERSONNEL RULES & REGULATIONS MANUAL

                                     SECTION 1500
                            WORK-RELATED INJURIES OR ILLNESS

      Section 1501. Workers' Compensation Insurance
               All employees are covered by Workers' Compensation Insurance in the event they sustain a work
      related injury, illness, or death that arises out of the course of employment with the City. In the event of
      an employee’s death, spouses and dependents are entitled to survivor benefits as determined under the
      Workers’ Compensation Act. Workers’ Compensation leave runs concurrently with Family Medical Leave
      (FMLA).

      Section 1502. Reporting an On-the-Job Injury or Illness
               Employees who believe they have suffered a work-related injury must immediately report the
      injury to his/her Department Head or designee no later than the end of the business day on which the
      injury or illness occurred. All work-related injuries or illnesses, including those that do not require
      emergency medical care, must be reported. Upon being advised of an injury, the Department Head or
      designee shall immediately provide notice to the Human Resources Department. The Department Head or
      designee is also responsible for reporting all work-related injuries to the City's workers' compensation
      insurer.

      Section 1503. Supervisor Responsibilities
              It is the responsibility of the Department Head or designee to notify Human Resources when an
      employee is absent from work due to a work-related injury or illness. The Department Head or designee
      should code an employee’s compensable missed time from work as workers’ compensation leave on the
      employee’s time record, with the exception of the initial three days which should be recorded as sick
      leave provided:

               a. The Department Head or designee and the Human Resources Department have received
      notification from the workers’ compensation insurer that the claim is compensable.

             b. The Department Head or designee and the Human Resources Department have medical
      documentation from the treating physician stating the employee is not fit for duty and the time period the
      employee is expected to be absent from work.

               The Department Head or designee is also responsible for submitting to Human Resources a copy
      of any time record reflecting an employee’s time missed from work due to a workers’ compensation
      injury. Failure to do so will result in the time out being charged to annual leave.

      Section 1504. Adjudication of Workers' Compensation
                The City's workers’ compensation insurer will investigate the circumstances surrounding the
      injury, illness, or death of an employee. In accordance with applicable Maryland law, the insurer will
      determine if the employee’s injury, illness, or death is compensable. The insurer will notify the employee,
      the supervisor and the Human Resources Department as to the status of the injured workers’ claim. If
      the claim is determined to be non-compensable, the insurer will notify the employee, the supervisor and
      the Human Resources Department in writing of the denial.

      Section 1505. Medical Documentation
               Employees requesting time off because they are unable to perform essential job functions due to
      a work related injury or illness must provide the City with medical documentation from the employee’s
      treating health care provider. This documentation must state he/she is unable to perform his/her normal
      work duties based on the employee’s job description, the projected length of inability to return to work or
      the ability to return to work in a modified work status (alternate duty).




198
         All medical documentation must be provided to the Human Resources Department. Failure to do
so will result in the time out being charged to annual leave.

Section 1506. Missed Time
         An employee that misses three workdays or less due to a work-related injury or illness,
irrespective of whether the claim is accepted or denied, must record the missed time as sick or annual
leave. The first three days an employee is absent from work is not compensable for lost wages under
Workers’ Compensation Insurance and will be charged to the employee’s sick leave or annual leave. Sick
or annual leave charged to the employee for the first three days missed due to the injury will be credited
back to the employee if the employee misses more than 15 days of work due to the work-related injury
or illness.

           Employees are only entitled to lost time benefits if a health care provider authorizes time off
work due to the compensable injury or illness. Upon returning to work after an injury or illness,
employees will be required to use other paid leave, such as sick or annual leave, to attend any medical
appointments related to the work related injury.

Section 1507. Return to Duty
        Prior to returning to duty, the employee must provide a full medical release from the treating
physician which specifies all restrictions, if any, upon the employee's ability to perform his or her full
range of duties. Failure to provide medical documentation verifying absence from work and the length of
your inability to work will result in missed time being charged to annual leave.

         Employees recuperating from an injury or illness, and unable to perform essential job functions,
shall provide the City with medical documentation from the employee’s treating physician identifying any
limitations the employee may have based on the employee’s job description. The documentation must
also state the date on which the employee will next be examined or released for full duty.

Section 1508. Alternate Duty
        Alternate duty is defined as temporary work, which can be accomplished by an injured or ill
employee within the stipulated medical or physical limitations, and without exposing others to the risk of
being harmed. Alternate duty is further defined as temporary work, which when accomplished, will
contribute to the fulfillment of the mission of the department as distinguished from "make work"
assignments created solely to accommodate ill or injured employees.

        The Department Head and the Human Resources Director will determine, based on medical
documentation, if alternate duty is available within the department or in another department.
An employee must notify the Human Resources Director and Department Head or designee of their
release for alternate duty by the employee's treating physician. An employee that is released for
alternate duty but refuses the alternate duty assignment will record all time missed as annual leave with
the approval of the Department Head or designee.

       Employees released to alternate duty will be advised via the employee’s Department Head or
designee if alternate duty is available.

        It is the responsibility of the employee to inform all health care providers of the City's alternate
duty policy. Failure to do so may result in disciplinary action.

Section 1509. Benefits While on a Workers' Compensation Absence
       In the event the third-party claims administrator determines that the injury or illness is
compensable, employees are entitled to, but not limited to, the following benefits:

1509.1 Medical Benefits
          Employees needing care will be treated, and if necessary, transported to an emergency care
facility. Employees receiving medical treatment must forward all medical bills to the Human Resources
Department for processing. The City’s third party claims administrator will pay all medical bills related to




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      an employee’s injury or illness that are determined to be reasonable and customary by the third party
      claims administrator. Employees requiring medical treatment while on duty will be directed to the City’s
      Workers’ Compensation Managed Care Program (a medical provider network that assists the injured
      worker throughout their medical treatment). Employees may also choose their own treating physician. If
      a claim is deemed to be non-compensable by the City’s Workers’ Compensation Managed Care Program
      and the employee seeks treatment through their treating physician, the employee or the employee’s
      health care provider will be responsible for any medical expenses incurred.

      1509.2 Prescriptions
              If an employee needs a prescription as a result of a work-related injury or illness, the employee's
      supervisor will provide the employee with information regarding the workers’ compensation pharmacy
      program. (Supervisors can obtain this information from the Human Resources Department.) This will
      allow the employee to have the prescription filled without any co-pay or out-of-pocket expenses.

      Section 1510. Benefit Payments
                Under the City's Workers' Compensation policy, an employee will be provided with full pay, up to
      the first 90 days after an accident, if the employee is unable to return to work. After ninety (90) days,
      Workers' Compensation will pay sixty-six and two-thirds percent (66 2/3%) of the employee's gross
      average weekly wage at the time injury or illness up to a statutorily established cap. Any income the
      employee receives from Workers' Compensation is not taxed.

               a. Temporary Total Disability (TTD)
                    Employees authorized time off work for more than three days are entitled to TTD benefits.
      TTD benefits are paid at a rate of sixty-six-and-two-thirds percent (66 2/3%) of the employee's average
      weekly wage, at the time of injury or illness up to the State’s maximum allowed benefit. Average weekly
      wages are calculated on injured employee's regular wages for the fourteen (14) weeks prior to the date
      of injury. Employees are entitled to TTD benefits for as long as they are authorized off work due to the
      injury or illness, or until they have reached maximum medical improvement as determined by a health
      care provider. Although not required by state law, the City will contribute an additional thirty-three and
      one-third percent (33 1/3%) of the employees’ annual salary for the first ninety days the injured worker
      is unable to work.

               b. Permanent Partial Disability (PPD)
                   In some cases employees may suffer a PPD as a result of an injury or illness and may be
      entitled to compensation for the disability. The Workers’ Compensation Act determines the amount of
      PPD compensation.

              c.  Permanent Total Disability (PTD)
                  If employees reach the maximum medical improvement and are still medically unable to
      return to work, they may be entitled to PTD benefits. These benefits are paid at a rate determined under
      the Workers’ Compensation Act.

      Section 1511. Employer Benefits
             The employee’s cost for his/her benefits will remain unchanged if the employee is unable to
      perform his/her job duties due to a work related injury. The employee is responsible for coordinating
      payment of all applicable premiums with the Human Resources Department.

      Section 1512. Retirement Plans
               City contributions to an employee's retirement plans will be calculated on the 1/3 salary paid by
      the City for the first ninety-days (90) the employee is unable to return to work due to the work related
      injury.

      Section 1513. Violations
               Any person who knowingly and with intent to injure, defraud, or deceive any employer or
      employee, insurance company, or self-insured program, or who files a statement of claim containing any
      false or misleading information, will be subject to disciplinary action.




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                 PERSONNEL RULES & REGULATIONS MANUAL

                                         SECTION 1600
                                        HEALTH & SAFETY

Section 1601. Accidents on City Property
        All accidents on City property resulting in personal injury or property damage involving the
general public must be accurately and comprehensively documented. In the event of personal injury,
employees on the scene should make every effort to make the injured person comfortable; if deemed
necessary, an ambulance should be requested as soon as possible.

        The Human Resources Department should be contacted as soon as possible and no more than 24
hours after the incident. The appropriate Local Government Insurance Trust form must be completed and
submitted to the Human Resources Department. Forms are available on CityNet or in the Human
Resources Department.

        City employees who witness an accident or who are at an accident site shall not speak on behalf
of the City regarding responsibility for any loss sustained.

Section 1602. Universal Safety Precautions
         The City supports and promotes universal safety precautions to eliminate or minimize the spread
of infectious diseases consistent with OSHA standards. Employees shall be provided with the education
and equipment necessary to recognize and prevent or reduce potential workplace hazards from
bloodborne pathogens. All employees are required to follow these provisions and procedures when
exposure to or handling of body fluids during the performance of their job duties may be reasonably
anticipated. Copies of this program shall be located at each site where employees report to work.

Section 1603. Hepatitis B Vaccination
        The Hepatitis B vaccine series or a titer test is offered at no cost to any City employee that is in a
high occupational exposure position or who has had an exposure incident. The vaccine series is optional;
an employee may refuse the series by signing the Hepatitis B Waiver Form. The employee is eligible to
receive the vaccine series at any time during his/her employment at no cost, even if initially refused by
the employee.

1603.1 Procedure
        a. At the time of hire, employees hired to positions at risk for occupational exposure will be
offered the Hepatitis B vaccine series or a titer test.

      b. If the employee has already had the Hepatitis B vaccination series, he/she needs to supply
documentation of the vaccination dates to the Human Resources Department.

         c. If the employee agrees to have the Hepatitis B vaccination series, the schedule consists of
three injections: the first injection; the second injection one month after the first; and the third injection
six months after the first. The City's medical care provider is responsible for administering the vaccine
series as recommended.

         d. At present, the Occupational Safety and Health Administration (OSHA) does not require a
follow-up Hepatitis B titer, but recommends that six weeks to six months following the completion of the
series, a titer be checked. The employee is encouraged to get this titer checked; this service is free of
charge to employees in positions at risk of occupational exposure.

            1. An employee should contact Human Resources to schedule an appointment for a titer
check.




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                  2. The City follows the Centers for Disease Control (CDC) recommendation that routine
      booster or a new Hepatitis B series is not advised when low titers are detected.

             e. Documentation of the Hepatitis B vaccination series and the results of the titer are kept in
      the employee's medical file. Upon request, a copy is available to the employee.

      Section 1604. Driver Safety
              An employee operating a City vehicle shall observe all the standards and general rules for
      operating a City vehicle as set forth in the Vehicle Use Policy (See Section 505).

      Section 1605. Working with Hazardous Materials
               It is the policy of the City that all hazardous materials will be managed in accordance with the
      Federal Hazard Communication Standard and Maryland’s Right To Know Law, as they apply to:
      Acquisition of Hazardous Materials, Storage and Transportation, Health Assessment, and Disposal of
      Hazardous Waste.

              Employees who may be reasonably anticipated to work with hazardous materials during the
      performance of their job duties will be trained on the potential hazards of the substances used at their
      respective work stations. Employees are expected to follow these provisions and procedures when
      exposed to or handling hazardous materials during the performance of their job duties.




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                PERSONNEL RULES & REGULATIONS MANUAL

                                     SECTION 1700
                                 GRIEVANCE PROCEDURES

Section 1701. Grievance Policy
        It is the policy of the City of Gaithersburg to provide a fair process whereby employees may voice
complaints concerning specific issues related to their employment with the City. The objective is to
improve employee-management relations through a prompt and impartial method of resolving problems
and settling conflicts in a fair, equitable, and timely manner. All actions at any stage of the grievance
process shall be characterized by fairness, frankness, courtesy, confidentiality, and respect for the dignity
of each individual involved.

        Employees are encouraged to informally discuss employment concerns and complaints with their
immediate supervisor, the department chain of command, or with the Human Resources Department,
whichever is most appropriate given the issue. Every effort should be made to resolve issues at the
lowest supervisory level possible in a manner that is acceptable to all individuals involved.

Section 1702. Eligibility
        Except as otherwise provided, only classified employees and unclassified management employees
who have successfully completed their probationary period (as defined in this Manual) are eligible to use
the grievance procedures process.

Section 1703. Retaliation Prohibited
        Employees shall not be subjected to retaliation for making a complaint or filing a grievance. Any
employee, who feels he/she has been retaliated against for making a complaint, filing a grievance, or
supporting a co-worker's complaint or grievance, shall immediately report the matter to the Human
Resources Director or the City Manager.

Section 1704. Discrimination & Harassment Complaints
        Any City employee who believes that he/she has been a victim of discrimination, harassment, or
sexual harassment as defined in this Manual may follow the procedures set forth in this policy or may
make a complaint directly to the Human Resources Director or the City Manager. All discrimination,
harassment, and/or sexual harassment complaints made to a supervisor or Department Head must be
reported in writing to the Human Resources Director or the City Manager (if the Human Resources
Director is involved in the complaint). Complaints must be made within 15 calendar days of the alleged
discrimination or harassment.

        The Human Resources Director and/or the City Manager will ensure that discrimination and
harassment complaints are investigated promptly and thoroughly; if found to have merit, immediate
steps will be taken to end the discrimination or harassment and appropriate disciplinary action will be
taken.

         Nothing in this policy shall preclude an employee from utilizing other available remedies under
existing local, state, and federal legislation.

         The City will make every effort to protect the confidentiality of employees involved in a claim of
discrimination or harassment, to the extent that the investigation process permits. However, in the event
of a legal proceeding, some records the City maintains may not be considered privileged from disclosure.

Section 1705. Grievable Issues
        In general, grievable issues are those actions or inactions which the employee believes have
affected his/her status or conditions of employment or complaints concerning specific issues related to
his/her employment with the City. Such issues include, but are not limited to, differences of opinion




                                                                                                                203
      regarding work relationships or work environment, significant disagreement with performance evaluation,
      and/or disciplinary actions.

               The City of Gaithersburg reserves the right to manage the affairs and operation of the City
      government, and accordingly, complaints involving management rights and prerogatives, (e.g.,
      classification plan, salary schedules, contents of ordinances and resolutions, etc.) are not grievable. If
      there is a question as to whether an employee has access to the Grievance Procedure or whether an
      employee's complaint is grievable, the Department Head must contact the Human Resources Director to
      request a ruling. The Human Resources Director will consult with the City Attorney and/or City Manager
      and rule on the question of grievability within 10 calendar days of the request; the Grievance Procedure
      time limits will be extended accordingly. A copy of the ruling will be sent to the employee desiring to file
      the grievance.

      Section 1706. Grievance Procedures
              When an employee has a complaint, the following successive steps are to be taken unless
      otherwise provided. The number of calendar days indicated for each step should be considered the
      maximum, unless otherwise provided, and every effort should be made to expedite the process. Any
      grievance not initiated or taken by the grievant to the next step within the stated time limits will be
      considered resolved. Any grievance response not timely provided to the grievant shall permit the
      grievant to immediately proceed to the next step in the grievance process. The parties may by mutual
      agreement waive any or all intermediate steps or meetings, with the exception of the initial complaint
      and reducing the grievance to writing. The parties may, by mutual agreement, extend any of the time
      periods established in these procedures. At each phase of the process, supervisory personnel shall inform
      the employee of the next step in the process and the time limits, should the decision not be satisfactory
      to the employee.

               a. Informal Resolution
                   Prior to the submission of a formal grievance, the employee and his/her supervisor should
      meet to discuss the problem and seek to resolve it informally. Either the employee or the supervisor may
      involve the respective Department Head and/or Human Resources Director as a resource to help resolve
      the grievance.

              b. Formal Resolution

                  1. Step 1
                       If no resolution to the grievance is reached informally, the employee who wishes to
      pursue a grievance shall present the grievance to the appropriate supervisor in writing. The grievance
      must be presented within 15 calendar days of the event or within 15 calendar days of learning of the
      event or condition. The supervisor shall respond to the grievance within 10 calendar days after receipt of
      the grievance. The supervisor should, and is encouraged to consult with any employee of the City in
      order to reach an impartial, fair, and equitable determination or decision concerning the grievance. Any
      employee consulted by the supervisor in the process of investigating the complaint is required to
      cooperate to the fullest extent possible.

                       The response from the supervisor for each step in the formal grievance process shall be
      in writing and signed by the supervisor. In addition, the employee shall sign a copy to acknowledge
      receipt thereof. The supervisor shall send copies of the grievance and response to the Department Head
      and the Human Resources Director.

                   2. Step 2
                       If the grievance is not resolved by the supervisor to the satisfaction of the employee, and
      the supervisor is not the Department Head, the employee may present the grievance in writing to his/her
      Department Head within 10 calendar days after receipt of the response from Step 1. The Department
      Head shall respond to the complaint, stating the determination or decision within 10 calendar days after
      receipt of the grievance. The Department Head's response shall be in writing and signed by the




204
Department Head. In addition, the employee shall sign a copy to acknowledge receipt thereof. The
Department Head shall send a copy of the grievance and response to the Human Resources Director.

             3. Step 3
                  If the grievance is not resolved to the satisfaction of the employee at the end of Step 2,
and the Department Head is not the City Manager, the employee may present the grievance in writing to
the City Manager. The employee should attach all responses received from the supervisor and/or
Department Head to the grievance. Within 10 calendar days after receipt of the grievance, the City
Manager will call a meeting which will include the employee, the employee's supervisor, the Department
Head, the Human Resources Director, and any other persons involved in the grievance. The City
Manager will make a written report of his/her decision within five calendar days following the meeting
and will deliver the decision to the employee, supervisor, Department Head, and Human Resources
Director.

Section 1707. Appeals
        The City Manager's decision on a grievance shall be final for all situations other than those which
may be appealed pursuant to Chapter 17 of the Gaithersburg City Code, Personnel Ordinance, Section
17-9, entitled "Filing of Appeal," which states:

         "All classified employees, as well as any Department Head or Assistant City Manager hired or
appointed prior to June 30, 2009, who have been suspended, demoted or terminated may file an appeal
in writing to the Personnel Review Board and may request a hearing thereon. Such appeal shall state the
pertinent facts relative to the action which is being appealed and shall be signed by the employee and
filed with the Personnel Review Board within five days after receipt by the employee of the notice of such
suspension, demotion or termination."

Section 1708. Role of Human Resources in Grievance Process
       Throughout the grievance process, the role of the Human Resources Department shall be to:

         a. Advise parties (including employees, supervisors, Department Heads, and the City Manager)
of their rights and responsibilities under this policy, including interpreting the grievance and other policies
for consistency of application.

        b. Be a clearinghouse for information and decisions in the matter including maintaining of all
grievance documents.

        c.   Give notices to parties concerning timetables of the process.

        d. Assist in drafting statements, if requested.

        e. Facilitate the resolution of conflicts in the procedures or of the grievance at any step in the
process.

        f. Determine whether or not additional time shall be allowed to either side in unusual
circumstances if the parties cannot agree upon extensions when needed or indicated.




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                      PERSONNEL RULES & REGULATIONS MANUAL

                                                 APPENDIX A
                                                 DEFINITIONS

      The following definitions apply throughout these rules and regulations unless the content clearly
      indicates another meaning.

      Acting Appointee: An employee appointed to temporarily assume the duties, obligations,
      responsibilities, and authority of another employee who will be absent from work for a specified length of
      time, or of a position that is vacant as a result of the resignation, retirement, dismissal, death, or other
      permanent absence of the employee previously appointed to the position.

      Active Duty: (Pursuant to Section 713.) The term "active duty" means duty under a call or order to
      active duty under a provision of law referred to in Section 101(a)(13)(B) of Title 10, United States Code.

      Administrative Leave: Leave authorized by the City Manager during investigations of misconduct or
      performance violations and/or in cases of emergency. Unless other specified, administrative leave shall
      be with full pay and benefits.

      Alcohol: The intoxicating agent in beverage alcohol, ethyl alcohol, or other low molecular weight
      alcohols including methyl or isopropyl alcohol.

      Alternate Duty: Temporary work which can be accomplished by an injured or ill employee within the
      stipulated medical or physical limitations, and without exposing others to the risk of being harmed, and
      which when accomplished, will contribute to the fulfillment of the mission of the department as
      distinguished from "make work" assignments created solely to accommodate ill or injured employees.

      Alternative Work Schedule (AWS): A prescheduled, fixed, continuous schedule of hours that
      deviates from the City’s established business hours.

      Annual Leave: Leave with pay granted to an employee at a specific rate to be used by an employee
      with prior approval from management.

      Appeal: A formal request to the Personnel Review Board for reconsideration of a decision made by the
      City Manager regarding an employee's suspension, demotion, or termination.

      Applicant: An individual who has filed an application for a vacant position and desires to be considered
      for appointment to a position in the City service.

      As Soon As Possible and Practicable: (As pursuant to Section 713) As soon as both possible and
      practical, taking into account all of the facts and circumstances in the individual case. For foreseeable
      leave where it is not possible to give as much as 30 days notice of the need for family or medical
      qualifying leave and its anticipated start and duration, “as soon as practicable” would mean verbal notice
      within one or two business days of when the need for leave became known to the employee.

      Authorized Purchases: Purchases that further the business of the City for legitimate business
      purposes. Each purchase must be allowed by law and policy, and be within budget authority.

      Cardholder: The Mayor and City Council or an employee authorized by the City Manager to be the
      single user of a City credit card. The credit card bears the individual's name and/or that of the City of




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Gaithersburg and may be used to pay for official purchases in compliance with this policy and the City's
internal procedures.

CDL: Commercial Driver's License.

Chain of Command: Vertical employment relationship in which an employee is accountable to a direct
supervisor and that supervisor is accountable to another supervisor, and so on. Any person in this
relationship is in the chain of command. For example, a laborer is accountable to a lead, who is
accountable to a supervisor, who is accountable to a Department Head, who is accountable to the City
Manager. All persons in this example are in the chain of command, or in the direct line of managerial
oversight.

Child: (Pursuant to Section 713) Biological, adopted or foster children, a stepchild, a legal ward, or a
child of a person standing in loco parentis, who is less than 18 years of age, or 18 years of age or older
and incapable of self-care because of a mental or physical disability.

City: The Gaithersburg municipal government, composed of the Mayor, City Council, the City Manager,
and all departments and employees which comprise the organization designed to provide services to the
citizens of the municipality.

City Credit Card: Plastic payment device or a specific account number issued by a bank in the name of
the City of Gaithersburg facilitating travel reservations, business meals, and small dollar value purchases
on behalf of the City.

City Council: The duly elected or appointed officials who comprise the legislative body of the
Gaithersburg municipal government with powers defined by Maryland law and the City Charter.

City Manager: An administrator appointed by a City Council to manage the affairs of the municipality;
for the purposes of this Manual, City Manager means the City Manager or his/her designee.

CityNet: The City’s in-house web site that serves employees only. Intranet pages on this site may link
to the Internet, but the intranet is not able to be accessed by the general public. It provides a standard
way to publish information to employees such as City policy, news, schedules, medical and insurance
forms and training manuals, etc.

City Vehicle: Any vehicle owned, rented, or leased by the City of Gaithersburg.

Class: One or more positions which are sufficiently alike to warrant using the same (or similar) title,
qualification requirements, examination, and pay grade.

Class Specification: A written description of a class, which includes the position title, a general
statement of duties and responsibilities, a summary of the most important features of a job class in terms
of the general nature of the work involved, and the types of workers required to perform it efficiently. It
describes the job, not the individual who fills it.

Classification: The assignment of a job to a particular job title in an associated pay grade.

Classification Plan: The sum total of all class specifications in the municipal service.

Classified employee: Classified employees comprise all positions not specifically designated in the
Personnel Ordinance as in the unclassified service. All positions included in the classified service shall be
subject to the adopted merit system rules and regulations.




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      COBRA: Consolidated Omnibus Budget Reconciliation Act; provides covered employees and covered
      family members the opportunity for a temporary extension of health coverage at group rates when
      coverage under the health plan (a medical and/or dental plan) would otherwise end due to certain
      qualifying events.

      Compensation Plans: A complete inventory of all positions within the organization and the class to
      which they are allocated.

      Compensatory Time: Time granted to employees covered by the Fair Labor Standards Act in lieu of
      pay for overtime hours worked.

      Complaint: A complaint is an employee's informal expression of disagreement or dissatisfaction with
      issues that have affected his/her status or conditions of employment or concerning specific issues related
      to his/her employment with the City.

      Compressed Workweek: Any schedule which allows a full-time employee to work the equivalent of a
      complete workweek in less than five days.

      Contingency Operation: (Pursuant to Section 713) The term "contingency operation" has the same
      meaning given such term in Section 101(a)(13) of Title 10, United States Code.

      Continuing Regimen of Treatment: (Pursuant to Section 713) Treatment which usually includes:
      two or more visits to a health care provider; two or more treatments by a health care practitioner on
      referral from, or under the direction of a health care provider; a single visit to a health care provider that
      results in a regimen of continuing treatment under the supervision of a health care provider (for example,
      a course of medication or therapy to resolve the health condition or pregnancy or prenatal care).

      Core Work Hours: A designated period of time during an employee’s workweek when he/she is
      expected to be working and available in person unless in a leave status.

      Covered Service Member: (Pursuant to Section 713) A member of the Armed Forces, including a
      member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or
      therapy, is otherwise in an outpatient status, or is otherwise on the temporary disability retired list, for a
      serious injury or illness.

      De minimis: A minimal amount, as defined by Internal Revenue Service (IRS) regulations.

      Demotion: Movement of an employee from a position in one job classification to a position in another
      job classification of decreased responsibility or complexity of duties and in a lower pay grade.

      Department Head: An employee designated with the responsibility for operation and management of a
      department of the City government established by the City Manager. For the purposes of this Manual,
      Department Head means the Department Head or his/her designee.

      Disability: A physical or mental impairment that substantially limits one or more major life activities of
      an individual.

      Discrimination: Any act or failure to act (whether by itself or as a part of a practice), the effect of
      which is to adversely affect or adversely differentiate against an individual or group of individuals in any
      employment or personnel action on the basis of race, religion, sex, sexual orientation, gender identity,
      color, ancestry, serious medical condition, national origin, age, disability, marital or parental status,
      political opinions or affiliations, or lawful employee organization activities unless based upon a bona fide
      occupational qualification. An employment or personnel action shall include all phases of the




208
employment relationship including, but not limited to, recruitment, testing, hiring, reclassification,
promotion, demotion, transfer, layoff, suspension, termination, rates of pay, benefits, and selection for
training.

Documentation: Documents or supporting references or records.

Domestic Partner: An individual in a committed, personal relationship with a City employee whom the
employee cannot marry solely because the partner is the same gender as the employee.

Employee: A compensated person who holds a position with and performs services for the City.

Established Business Hours: The hours when customers may reasonably expect to transact business
at a City facility. Established business hours for the City of Gaithersburg are 8 a.m. to 5 p.m.

Exempt Employee: An employee who is employed in a bona fide executive, administrative, or
professional capacity as outlined by the Fair Labor Standards Act (FLSA). An exempt employee is not
subject to the Fair Labor Standards (FLSA) overtime and compensatory leave provisions. The employee is
not entitled to overtime pay for hours worked in excess of 40 hours in a workweek.

Fair Labor Standards Act (FLSA): The Federal law which sets minimum wage, overtime pay, equal
pay, recordkeeping, and child labor standards for employees who are covered by the Act.

Family Leave: (Pursuant to the Section 713) Leave used in connection with the birth or placement of a
child for adoption or foster care.

Family Medical Leave: Leave granted under the Family and Medical Leave Act of 1993.

Flex-time: Fixed work days and fixed work day arrival and departure times for individual employees
which may fall outside the City's established business hours of operation.

Further the Business of the City: A purchase is made to further the business of the City only when
the purchase: (a) is authorized by law, City regulation, and/or by organizational policy and procedures;
(b) will promote or support the lawful operation of the City on whose behalf the purchase is made; (c)
may be paid by public funds that are currently available to the Department by appropriation, or other
legislative authority for the purpose of the purchase.

General Wage Adjustment: An adjustment made in wages that corresponds with a change in the cost
of living.

Grievance: An employee's formal expression of disagreement or dissatisfaction with issues that have
affected his/her status or conditions of employment or concerning specific issues related to his/her
employment with the City.

Harassment: Any act directed toward another, when such act includes verbal or physical conduct that
defames or shows hostility toward the employee on the basis of race, religion, sex, sexual orientation,
gender identity, color, ancestry, serious medical condition, national origin, age, disability, marital or
parental status, political opinions or affiliations, or lawful employee organization activities. Harassment
also includes any prohibited act directed toward the individual's family, friends, or associates, intended or
perceived by the alleged victim to be intended to create an intimidating, hostile, or offensive working
environment or interfering with or apparently intending to interfere with the alleged victim's work
performance.




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      Harassment of a Sexual Nature: Any act or behavior of a sexual nature which is not welcomed, is
      personally offensive to the alleged victim, and/or interferes with the ability of the alleged victim and/or
      his/her coworkers to effectively carry out the duties of their positions, including but not limited to
      unwelcome sexual advances, requests for sexual favors, or other verbal, visual, or physical conduct.
      Conduct of a sexual nature constitutes sexual harassment when: (a) submission to such conduct is made
      either explicitly or implicitly a term or condition of an employee's employment; or (b) submission to, or
      rejection of, such conduct by an employee is used as the basis for employment decisions affecting the
      employee; or (c) such conduct has the purpose or effect of unreasonably interfering with an individual's
      work performance or creates an intimidating, hostile, or offensive working environment. Differences in
      individual values and culturally diverse customs may make it difficult for employees to recognize their
      own behavior or that of their peers, subordinates, or non-employees as sexual harassment. An
      investigation and decision based on all the available facts must be made to determine whether a
      particular action or incident constitutes sexual harassment. Negative consequences to the offender place
      a responsibility on supervisors and employees to report factual and truthful information in filing and
      investigating complaints of sexual harassment.

      Health Care Provider: (Pursuant to Section 713) A doctor of medicine or osteopathy, podiatrist,
      clinical psychologist, optometrist, chiropractor, nurse practitioner, nurse-midwife, clinical social worker.

      Health Maintenance Organization (HMO): An organization that arranges for a network of physicians,
      health care practitioners, and facilities to provide a wide spectrum of health care services to members
      covered under contracts issued by the HMO.

      Hearing: A formal review of the facts and circumstances surrounding a personnel action.

      Hire Date: The date on which an employee begins employment with the City.

      Immediate Family Member: (Pursuant to Section 713) Child, spouse, parent, parent-in-law, in loco
      parentis as defined above.

      Incapable of Self-Care: (Pursuant to Section 713) Individual requires active assistance or supervision
      to provide daily self-care in several of the “activities of daily living” (ADL). ADL include adaptive activities
      such as caring appropriately for one’s grooming and hygiene, bathing, dressing, eating, cooking,
      cleaning, shopping, taking public transportation, paying bills, maintaining a residence, using telephones
      and directories, using a post office, etc.

      In loco parentis: (Pursuant to Section 713) Those parents with day-to-day responsibilities to care for
      and financially support a child or, in the case of an employee, who had such responsibility for the
      employee when the employee was a child. A biological or legal relationship is not necessary.

      Insubordination: Failure to obey a direct lawful order of a supervisor or someone higher in the chain
      of command.

      Intermittent Leave: (Pursuant to Section 713) Leave taken in separate blocks of time due to a single
      illness or injury, rather than for one continuous period of time. Intermittent leave is required based on
      medical necessity for all eligible uses of family or medical leave except for childbirth and child placement.
      For these exceptions, the Department Head, at his/her discretion and the employee may agree to
      provisions of intermittent leave.

      Job: The name given to a group of positions that are alike enough in duties and responsibilities to be
      assigned the same pay grade and to require substantially the same qualifications.

      Job Applicant: A person who applies to become an employee of the City.




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Job Title: The label for a job which reflects the content of all positions assigned to the same job class.

Key Employee: (Pursuant to Section 713) A salaried employee who is among the highest paid 10
percent of all the employees employed by the City and residing within 75 miles of their worksite.

Leave: An authorized absence from regularly scheduled work hours for reasons specified in the Manual
(e.g., holiday, annual, sick, bereavement, jury, etc.).

Leave With Pay: Authorized absence from work with pay.

Leave Without Pay: Authorized absence from work without pay.

Manual: The City of Gaithersburg Personnel Rules & Regulations Manual.

Maximum: The highest salary the City would pay to have the job performed.

Medical Documentation: Original supporting records/certifications from a medical provider that state
an employee is unable to perform his/her normal work duties based on the employee’s job description,
the projected length of inability to return to work, or the ability to return to work in a modified work
status (alternate duty).

Medical Leave: (Pursuant to Section 713) Leave used for recuperation from a serious health condition
that renders the employee unable to perform the functions of the position, or leave used to care for an ill
or disabled child, spouse, sibling, parent, parent-in-law, or in loco parentis.

Merit system: A system of personnel rules and regulations for classified employees which may provide
for competitive examinations, the use of eligible lists, a classification plan, a compensation plan, a
probation period, appeals by classified employees from termination, suspension, or demotion and fringe
benefits.

Midpoint: The midpoint of the pay grade represents the salary level paid for a competent employee
with considerable experience who performs all duties of the job at a satisfactory level.

Military Leave: Paid leave granted to an employee who is a member of any United States Military
Reserve or National Guard Unit and is required to engage in training exercises not to exceed two weeks
in any one year.

Minimum: The lowest salary the City would expect to pay to have the job performed.

Nepotism: The showing of favoritism to a relative.

New Hire: A person not previously employed by the City.

Next of Kin: (Pursuant to Section 713) The nearest blood relative of that individual.

Non-Exempt Employee: An employee who is not employed in a bona fide executive, administrative, or
professional capacity as outlined by the Fair Labor Standards Act (FLSA) and who is subject to the FLSA
overtime pay and compensatory leave provisions of FLSA.

On-Call: A non-exempt employee specifically designated and required to be available and ready to work
when needed to handle unanticipated situations occurring outside of standard working hours.




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      Outpatient Status: (Pursuant to Section 713) With respect to a covered service member, means the
      status of a member of the Armed Forces assigned to: a military medical treatment facility as an
      outpatient; or a unit established for the purpose of providing command and control of members of the
      Armed Forces receiving medical care as outpatients.

      Overtime: Hours that an employee is directed and authorized to work in excess of 40 hours per week.

      Parent: (Pursuant to Section 713) A biological parent of an employee or an individual who stands or
      stood in loco parentis to an employee when the employee was a child.

      Parent-in-law: (Pursuant to Section 713) A biological parent of an employee’s spouse.

      Part-time Employee: An employee whose position meets at least one of the following criteria: (1) is
      of a short-term duration; (2) is for a specific purpose or program; (3) is seasonal in nature; or (4) whose
      work hours are expected to be below 25 hours per work week.

      Part-time Intern Employee: An employee hired to work in a position that is created to provide hands-
      on municipal government experience and/or professional/career development for a high school student or
      college undergraduate or graduate student. The position must be created for a specific purpose or
      program and must terminate at the expiration of a specified period of time.

      Pay for Performance Adjustment: Pay advancement based on an employee's work performance as
      assessed through the performance evaluation process.

      Pay Day: Friday of the week following the pay period.

      Pay Grade: A component of the Classification and Compensation Plan which stipulates the salary range
      to be paid for all job titles assigned to that grade. Jobs are assigned to pay grades based on a
      combination of internal and external considerations.

      Pay Period: A two-week period, of which there are 26 specified per fiscal year. The City’s standard pay
      period begins at 12:00 a.m. (midnight) on Sunday and ends at 11:59 p.m. on Saturday two weeks later.

      Pay Range: A component of the Classification and Compensation Plan which stipulates the minimum,
      midpoint, and maximum pay rates established for each salary grade.

      Pay Rate: The rate of pay of an employee.

      Pay Step: A component of the Classification and Compensation Plan which stipulates the salary range to
      be paid based on years of service.

      Performance Evaluation: An assessment of an employee's work.

      Personal Leave: Leave granted to a classified employee or unclassified management employee to
      attend to personal obligations, subject to pre-approval of the supervisor. Personal leave is deducted from
      the employee's accrued sick leave balance.

      Personal Purchases: Purchases that do not further the business of the City and purchases that do
      benefit an employee or other person individually, rather than facilitate the discharge of the official
      functions or duties of the City of Gaithersburg. Any non-business use of a City credit card that personally
      benefit the employee or third party rather than the City. All personal purchases using a City credit card
      are expressly prohibited.




212
Personal Vehicle: A vehicle owned, rented, or leased by a City employee which may be used to
conduct official City business.

Personnel Action Form: The form used to report appointments, terminations, or a change in status or
compensation of an individual employee. The Personal Action Form should be used each time there is an
action that should be recorded in the individual's personnel file or that requires payroll action. Use it as a
transmittal form for approval of the personnel action.

Physical or Mental Disability: (Pursuant to Section 713) Physical or mental impairment that
substantially limits one or more of the major life activities of an individual.

Position: An opening or a job occupied by a single employee.

Positive Test: A drug or alcohol test result that shows the presence of alcohol or controlled substances
in excess of the following levels:

                                                All Employees               Sworn Officers
                 Alcohol                        0.02                        0.02
                 Amphetamines                   500 ng/mL                   500 ng/mL
                 Barbiturates                   200 ng/mL                   200 ng/mL
                 Benzodiazepines                300 ng/mL                   300 ng/mL
                 Cocaine Metabolite             150 ng/mL                   150 ng/mL
                 Opiates                        2000 ng/mL                  300 ng/mL
                 Phencyclidine (PCP)            25 ng/mL                    25 ng/mL
                 Marijuana (THC)                15 ng/mL                    15 ng/mL

Preferred Provider Option (PPO): A network-based plan that encourages members to receive
covered services from preferred physicians, health care practitioners, or facilities. Members may elect to
use non-preferred physicians, health care practitioners, or facilities but generally will have higher out-of-
pocket costs and more administrative tasks if they do.

Probation: A formal period of employment (of 12 or 24 months) during which an employee has an
opportunity to learn more about the City and demonstrate that he/she has the necessary skills and
abilities to perform the duties of his/her position in a satisfactory manner.

Probationary Employee: An employee who is serving his/her probationary period of employment
during which time the employee may be terminated at will.

Progressive Discipline: Discipline issued that is progressive in nature (i.e., verbal, written, etc.) and
clearly displays corrective attempts to remedy the employee's performance through training and/or
counseling.

Promotion: Movement of an employee from a position in one job classification to a vacant position in
another job classification of increased responsibility or complexity of duties and in a higher pay grade.

Pyramiding Pay: Compensation paid more than once for the same hours.

Qualifying Exigency: (Pursuant to Section 713) (a) Short-notice deployment; (b) Military events and
related activities; (c) Childcare and school activities; (d) Financial and legal arrangements; (e)
Counseling; (f) Rest and recuperation; (g) Post-deployment activities; and (h) Additional activities not
encompassed in the other categories; but agreed to by the employer and employee.




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      Random Testing: A system of drug and alcohol testing imposed without individualized suspicion that a
      particular individual is using illegal drugs, and may be either a uniform announced testing of designated
      employees; or a statistically random sample of employees based on a neutral criterion.

      Reasonable Accommodation: Any modification or adjustment to a job, the work environment, or the
      way in which the work is customarily done that makes it possible for a qualified individual with a disability
      to perform the essential functions of the job and ensure equal employment opportunity.

      Reasonable Suspicion: A belief based on specific objective facts and reasonable inferences drawn
      from those facts.

      Reclassification: Movement of a position's title and/or pay grade assignment to a higher or lower
      classification.

      Reduced Leave Schedule: (Pursuant to Section 713) A leave schedule that reduces an employee’s
      usual number of working hours per work week or hours per work day. A reduced leave schedule is
      required based on medical necessity for all eligible uses of family or medical leave except for childbirth or
      child placement. For these exceptions, the Department Head, at his/her discretion, and the employee
      may agree to provisions for a reduced leave schedule.

      Reduction in Force: The termination of an employee which occurs when a regular position has been
      abolished because of material changes in duties, or shortage or stoppage of work or funds, or other
      reasons in the best interest of the City, as determined by the City Manager.

      Rehire: Re-employment of a former employee who left the municipal service in good standing.

      Relative: (Pursuant to Section 309) Immediate family by blood, marriage, previous marriage, or
      adoption including the following: spouse, child/stepchild, parent/stepparent, sibling, half-sibling,
      grandparent, aunt, uncle, niece, nephew, cousin, or any other person residing in the employee's
      residence or financially dependent upon the employee.

      Resignation: Voluntary termination from City employment prior to retirement.

      Retiree: An classified employee or unclassified management employee who leaves City employment
      under the City's General Retirement Plan or Early Retirement Plan.

      Retirement: Termination from City employment under the City's General Retirement Plan or Early
      Retirement Plan.

      Retirement Date: The date on which a City employee retires.

      Safety Sensitive Position: Employees in positions which meet one or more of the following criteria:
      (1) employee who is required to operate City vehicles or heavy machinery and/or whose class
      specification indicates that they are required to maintain a valid driver's license; (1) employee who is a
      sworn police officers; (3) employee to whom a City vehicle has been assigned; (4) employee who
      receives, processes, prepares, and/or distributes cash or checks or handles credit card transactions as an
      essential part of his/her position; (5) employee who works with children or youth; (6) unclassified
      management employees (the City Manager, City Attorney, Assistant City Managers, and Heads of all
      Departments established by the City Manager).

      Salary: Payment for work performed that is pre-determined and uniform from one payday to the next
      and does not depend on the number of hours worked.




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Salary Schedules: Matrices that list the applicable salary rates or ranges approved for employees in
the municipal service.

Serious Health Condition: (Pursuant to Section 713) An illness, injury, impairment, or physical or
mental condition that requires either inpatient care, or a continuing regimen of treatment by a health
care provider.

Serious Injury or Illness: (Pursuant to Section 713) In the case of a member of the Armed Forces,
including a member of the National Guard or Reserves, means an injury or illness incurred by the
member in the line of duty on active duty in the Armed Forces that may render the member medically
unfit to perform the duties of the member’s office, grade, rank, or rating.

Service: A period of paid City employment by an employee.

Sibling: (Pursuant to Section 713) Biological brother or sister of an employee.

Sick Leave: Leave with pay granted to an employee at a specific rate to be used by an employee under
specific conditions with approval from management.

Spouse: (Pursuant to Section 713) A husband or wife of an employee as defined or recognized under
Maryland law for the purposes of marriage.

Standby Duty: A non-exempt employee required to remain ready and available to work during a
specified period of time beyond the employee's standard working hours and expected to return to the
worksite within a 30-minute timeframe.

Supervise, Supervision, and Supervisor: An employment relationship in which an employee’s
relative is in the employee’s "chain of command" or in the direct line of managerial oversight.

Suspension: Temporary removal from job duties and responsibilities with loss of pay. An employee
who is suspended without pay shall be entitled to all fringe benefits and to continue to earn vacation and
sick leave during the period of suspension.

Take-Home Vehicle: Any City vehicle which is assigned to a particular employee to take home for
business-related purposes as identified in this policy.

Termination: Permanent removal from employment with the City of Gaithersburg. Except as otherwise
provided by law, all employee benefits cease at the time of termination.

Titer: A test that measures the presence and amount of antibodies in the blood. These antibodies may
be against a particular type of tissue, cell, bacteria, virus, or other external substance.

Transfer: Movement of an employee to a position in the same classification or to a position in a
different classification in the same grade level. A transfer is not considered a promotion or demotion.

Unauthorized Absence: Absence from duty without supervisory approval.

Unclassified Employee: An employee in the unclassified service as set forth in the Personnel
Ordinance. Unclassified employees are (a) the City Manager, Assistant City Manager(s), City Attorney,
and the heads of all departments established by the City Manager; and (b) part-time, temporary, unpaid
offices and positions, and employees by contract or agreement. Except as provided in the Charter, all
unclassified employees hired or appointed after June 30, 2009, shall serve at the pleasure of the City
Manager.




                                                                                                             215
      Unclassified Management Employee: The City Manager, City Attorney, Assistant City Manager(s),
      and the Heads of all Departments established by the City Manager

      Unclassified Official: A public official in the unclassified service as set forth in the Personnel
      Ordinance. Unclassified officials are (a) the Mayor, Council Members, either elected or appointed; and
      (b) members of City boards, commissions, and committees.

      Unclassified Service: Comprised of public officials and employees as set forth in the Personnel
      Ordinance who are not included within the merit system.

      Vacancy: An authorized position not occupied by an incumbent which has been approved by the City
      Manager for filling

      Vehicle: Any automobile, truck, van, trailer, or other self-propelled equipment (including golf carts), or
      trailer-mounted equipment which is towed by a self-propelled piece of equipment, which may be marked
      or unmarked with City identification, and/or licensed for use on public roadways.

      Wage: Payment that is calculated according to the number of hours worked and which may fluctuate
      from one pay day to the next as the number of hours worked varies.

      Workweek: The Fair Labor Standards Act (FLSA) defines an employee’s workweek as a fixed and
      regularly recurring period of 168 hours – seven consecutive 24 hour periods.

      Year of Service: Employment service credited to a classified employee or unclassified management
      employee of the City based on the anniversary of the employee's hire date; a classified employee or
      unclassified management employee's years of credited service are used to determine eligibility for some
      City benefits.




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