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Secfion 3. In the event a grievance goes to arbitration, the arbitrator shall have <br />jurisdiction only over disputes arising out of grievances and the arbitrator shail have no <br />authority to add to, subtract from or modify in any way, the provisions of tnis Agreement. The <br />arbitration will be conducted under the voluntary labor arbifration rules of the American <br />Arbifrafion Association. <br />Section 4. Ali awards of the arbitrator and all pre-arbitrafion grievance settlements <br />reached by the Union and the City shall be final, binding, and conciusive on the City, the Union, <br />and the employees. A grievance may be withdrawn without prejudice by the Union at any time <br />during Steps 1, 2, 3 or 4 of the grievance procedure. All monies agreed to be due in a <br />prearbitration settlement or fol(owing an arbitration award shalf be paid to the employee on the <br />payday for the pay period foliowing the date of the agreement as to the exact amount owed. <br />Such sum shal( be issued in a separate payroll check. <br />Section 5. No grievance wili be processed unless it is filed within the time Iirnit <br />established for fi(ing grievances, lf a grievance is not appealed by the Union to the next higher <br />step within the time limits estabfished in the grievance procedure, fhe grievance wi11 be deemed <br />to be settled an the basis of the City's last answer. If the City fails to answer a grievance within <br />the time fimits, the grievance will automatically be appealed to the third step in the grievance <br />procedure. Section 6. The time limits set fofth in the grievance procedure shall, unless extended by <br />mufiual written agreement of the Cify and the Union, be binding on both parties. Working days' <br />as used in the grievance procedure shall not include Saturdays, Sundays or hoiidays. <br />Section 7. In determining fhe time periods provided for under the grievance procedure, the <br />initial day of the operative event shal( be excluded and the required number of days shall then <br />be computed successively, excluding Saturdays, Sundays, and holidays. <br />Section 8. A policy grievance is defined to mean a grievance in which a controversy has been <br />raised, the na#ure of which, if not resolved wifl affect the entire bargaining unit or members