LETTER OF AGREEMENT. by and between MUNICIPALITY OF ANCHORAGE. and the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 1547 IBEW

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1 LETTER OF AGREEMENT by and between MUNICIPALITY OF ANCHORAGE and the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 1547 Subject: Clarification to Contractual Language for the Collective Bargaining Agreement Approved August 5, 2014 IBEW This Agreement is between the Municipality of Anchorage (MOA) and the International Brotherhood of Electrical Workers, Local 1547 (IBEW). The MOA and the IBEW are parties to a Collective Bargaining Agreement (CBA). The purpose of this agreement is to clarify problematic language of the newly approved CBA. Language was discovered that will negatively impact department operations so the MOA and the IBEW worked collaboratively to resolve these issues. A majority of these changes are minor clarifications to allow flexibility for management in scheduling, clarify confusing language, and define current classifications. There are some substantive changes that impact current pay practices. One addition was inadvertently left out of the new CBA and the others are to create a more effective way to calculate employees pay. 1. Effective August 5, 2014 language in Types of Positions will be amended by the following: Section 3.1 B. Temporary. Temporary employees are those employees hired to augment the work force whenever the work load temporarily requires additional help, or in the event of an emergency or unanticipated condition (or situation) or to relieve regular employees during absences. Temporary employees are eligible for health and insurance benefits. Temporary employees hired prior to Assembly approval of this Agreement will continue to receive holiday pay and leave accrual in addition to the health and insurance benefits. The MOA may extend temporary employment for an additional six (6) months. Any temporary Employee extended by the MOA beyond the initial six (6) months shall continue to receive pay as a temporary MOA employee, shall begin to accrue full fringe benefits under this Agreement, and shall be paid the basic hourly wage rate for the classification in which they are

2 working. The maximum authorized extension is six (6) months, unless up to an additional six (6) months is mutually agreed to by the MOA and Union. C. NECA Temporary (Under "Inside/Outside" Agreement). Any linemen, wiremen, equipment operators, and apprentices hired for a temporary period shall be based on the current contract pay scale and overtime provisions established in the "Inside/Outside" Agreement negotiated by IBEW Local Union 1547, including fringe benefits of health and welfare and pension, payable to the joint account established by IBEW and the parties to the "Inside/Outside" Agreement. NECA Temporary employees hired prior to Assembly approval of this Agreement will continue to receive holiday pay in addition to the fringe benefits of health and welfare and pension. Any NECA temporary employee extended by the MOA beyond the initial six (6) months shall continue to receive pay and benefits as described above as well as MOA recognized holidays with pay and leave accrual. The maximum authorized extension is six (6) months, unless up to an additional six (6) months is mutually agreed to by the MOA and Union. 2. Effective August 5, 2014 language in Scheduling will be amended by the following: Section Work Schedules Work schedules for the employees shall be determined by the Municipality within the parameters set forth in other provisions of this Agreement. With mutual agreement between the Municipality and the Union changes to schedules defined in the work ru les can be modified based on operational necessity. 3. Effective August 5, 2014 language in Meal Breaks and Rest Breaks will be amended by the following: Section 4.2 C. All employees except in the Operations and Generation Divisions as described in Work Rules (Article 9) shall not normally be required to work through their scheduled meal period. 4. Effective August 5, 2014 language in High Time will be amended by the following: Section 5.11 High Time Premium All employees required to work seventy (70) feet or higher above the ground or safe floor level shall be paid, ground to ground or safe floor level to safe floor level, an additional one (1) straight time hour for all time worked (hour for hour) above applicable hourly factored rate of pay.

3 5. Effective August 5, 2014 language in Operation Division Work Rules will be amended by the following: Section E. Distribution Transformer Testing and Repair. Distribution transformer testing and repair shall be done by journeymen linemen under the supervision of working transformer foremen; apprentices may be used for handling and cleaning up of transformers, oil cut-outs, oil switches, and other miscellaneous shop work. 6. Effective August 5, 2014 language in Fleet Service Vehicle Mechanic Work Rules will be amended by the following: Section A. Fleet service mechanic personnel shall conform to the Operations standard work week (Section 9.1.1) and Operations night service crew shift (Section ). Employees working the Operations night service crew shift shall receive a ten percent (10%) shift differential for all hours worked. 7. Effective August 5, 2014 language in Section Generation and Dispatch Work Rules will be amended by the following: Section 9.5 P. Boiler License Premium Pay Enhancement. Regular employees assigned to Generation meeting the State of Alaska testing and hour requirements, upon obtaining on their own initiative a 1st class Boiler Operator License, shall be compensated at an additional five and seven-tenths percent (5.7%) above the employee's base rate, while employed in the Generation Division, including the Chief Shop Steward if employed in the Generation Division at the time of appointment. Q. Water Treatment Technician Premium. Operator/Mechanics fully qualified for and regularly assigned to water treatment work shall be compensated at five percent (5%) above Journeyman Operator/Mechanical base rate. RQ. Plant Shift Operators. For safety reasons, once a generation turbine is running, there will be two (2) operators on shift; when a single plant operator starts a generation turbine and cannot reach the plant superintendent/foreman or on-call supervisor, they have the authority to call out a second operator. (Section letter change only) SR. Power Dispatch (Section letter change only) 8. Effective August 5, 2014 language in Article 11 Classification and Wage Rates will add under Classification chart Municipal Light & Power section:

4 Water Treatment Technician Percent of Base Rate % Prior Agreement $49.27 Effective first full pay period after Assembly approval $50.00 First full pay period of 2015 $50.75 First full pay period of 2016 $ Effective first full pay period after Assembly approval of this Letter of Agreement, the language in Power Dispatch Trainee Program Completion will be amended by the following: Section D. During the training period, the Power Dispatch Trainee shall receive an additional five percent (5%) premium pay. Upon the successful completion of the training period, when the Power Dispatch Trainee becomes eligible to bid a position as Power Dispatcher, the employee shall continue to receive a five percent (5%) premium pay enhancement so long as the employee remains a Power Dispatch Trainee. During the periods when a Power Dispatch Trainee is not assigned to Dispatch, the employee shall receive the premium pay enhancement outlined above. However, in no event shall a Power Dispatch Trainee receive more than a Power Dispatcher's rate of pay. If a Power Dispatch Trainee declines to bid on an open Power Dispatch position, the employee is no longer considered a Power Dispatch Trainee and the employee will lose the five percent (5%) premium pay enhancement. Pursuant to AMC D., each and every collective bargaining contract, agreement, modification, written interpretation, or other change, alteration or amendment, no matter how denominated, shall include a summary of requirements and remedial provisions, and the certification under oath or affirmation by each duly authorized representative signing on behalf of a party. The duly authorized representatives, on behalf of the parties to this agreement, hereby affirm and certify as follows: A This agreement complies with Anchorage Municipal Code section B. Section requires Assembly approval o( all modifications and amendments, no matter how denominated. C. Absent Assembly approval as required by section , any modification or amendment, no matter how denominated, shall be deemed null and void, and any payments made shall be recoverable by the Municipality. D. Absent Assembly approval as required by section , written clarifications and interpretations within the definition of "administrative letter" are invalid. E. Section prohibits the use of administrative letters to vary the explicit terms of a labor agreement.

5 F. Intentional actions in violation of section are subject to fines and penalties under section G. Remedial actions: In the event the provisions of section are violated by administrative action, any labor agreement, agreement, modification, written interpretation, or other change, alteration or amendment, no matter how denominated, shall be null and void with no force or effect. SIGNED FOR THE MUNICIPALITY: c2. Z yl/' IY Nancy Bear Usera Date Acting Director, Employee Relations SIGNED FOR THE IBEW: a ~ 9-1,J -/'( b us~e= Date IBEW Chief Shop Steward