City of Culver City, California
Agenda Item Report
Meeting Date: 06/13/2011 Item Number: A-2
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving an Executive
Compensation Plan
Contact Person/Dept.: Serena Wright Phone Number: 310-253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Dates:
Public Notification: (E-Mail) Agenda and Meetings – City Council (06/08/11); Culver City
Management Group (05/19/11)
Department Approval:
Serena Wright (05/19/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/19/11)
Chief Financial Officer Approval:
Jeff Muir (05/19/11)
City Manager Approval:
John M. Nachbar (05/19/11)
RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution approving an Executive
Compensation Plan.
BACKGROUND:
Traditionally, Culver City Executive Management was represented by the Culver
City Management Group (CCMG) for matters concerning wages, hours, terms and
conditions of employment. In July 2010, CCMG was notified that the City desired to
carve out Executive Management from the group. CCMG subsequently agreed with
this proposal. From a labor and employee relations standpoint, staff believes that it
is more appropriate that Executive Management is not represented by an organized
bargaining unit.
DISCUSSION:
The compensation plan being presented to the City Council for consideration and
adoption outlines the current salary and benefits received by Executive
Management. In addition, it also contains provisions that were recently negotiated
with CCMG. Some key elements include:
• Implementing a second retirement tier for new hires (including new hires receiving
the PEMHCA minimum retiree medical benefit if applicable)
• Eliminating the City’s pick-up of the CalPERS employee contribution rate
• Converting to a Cafeteria Plan for active employee health benefits
• Modifying retiree medical for active employees and new hires City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
This compensation plan will result in both short-term and long-term savings. Long-term
savings will be achieved by lowering the retirement benefit formula for new hires. The
City will realize savings beginning in Fiscal Year 2011/2012 with the implementation of
the Cafeteria Plan and Executives picking up an additional 3% of the CalPERS
employee contribution rate. Like CCMG, Executives will pick up the final 3% of their
employee contribution in Fiscal Year 2012/2013. The 4% growth cap on the monthly
medical benefit allowance provides certainty to the City in future budget costs and
protection against premium increases in excess of this amount. The restructuring of the
retiree medical benefit for current employees will also reduce the City’s overall long-
term liability.
ATTACHMENTS:
Proposed Resolution (with Executive Compensation Plan Attached)
MOTION:
That the City Council:
Adopt a resolution approving an Executive Compensation Plan.
MEETING DATE: 05/23/11
AGENDA ITEM: A Resolution to Adopt an Executive Compensation Plan
ATTACHMENTS
1. Resolution with Executive Compensation Plan
Pages
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;
RESOLUTION NO. 2011-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING AN EXECUTIVE COMPENSATION PLAN.
WHEREAS, the Culver City Management Group (CCMG) employee
representatives and City representatives have met and conferred and agreed to
separate the following Executive Management Classifications from being represented
by CCIVIG for wages, hours, terms and conditions of employment.
Assistant City Manager
Assistant to City Manager
Chief Financial Officer
Chief Information Officer
Community Development Director
Human Resources Director
Parks, Recreation and Community Services Director
Public Works Director/City Engineer
Transportation Director
NOW, THEREFORE, the City Council of the City of Culver City, DOES
HEREBY RESOLVE AS FOLLOWS:
1. The Executive Compensation Plan, a copy of which is attached
hereto and made a part hereof, is hereby approved.
2. The City Treasurer and the City Manager are hereby
authorized to adjust the budget and the records of employees necessary to pay the
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MARTIN R. COLE, City Clerk
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salaries and costs related to the terms of the approved Executive Compensation Plan.
APPROVED and ADOPTED this day of 2011.
MICHEAL O'LEARY, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
A 1 .7 elP A a
,4 -itAtifil _. - l'
CA 7 ,:f' OL A. SCHIN A7City Attorney. (f .\
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-2- CULVER CITY EXECUTIVE MANAGEMENT
COMPENSATION PLAN I. SPIRIT OF COMPENSATION PLAN
It is the spirit and intent of the compensation plan to recognize the collective
responsibilities that the participants in this plan hold as executives for the City of
Culver City. The participants are committed to providing the leadership necessary
to continue the excellent service provided to the Culver City community.
II. PARTICIPANTS
The Executive Compensation Plan (hereinafter "Plan") shall cover the following
classifications (hereinafter "Employees"), as may be amended.
Assistant City Manager
Assistant to the City Manager
Chief Financial Officer
Chief Information Officer
Community Development Director
Human Resources Director
Parks, Recreation and Community Services Director
Public Works Director/City Engineer
Transportation Director
III. COMPENSATION
A. Salary. The salary schedules specifying the salary range for each
classification covered by the Plan is attached as Appendix A. The City Manager
shall set salaries for each employee covered by the Plan within the specified
salary range. Annual salary adjustments shall be based upon demonstrated
consistent performance as evidenced by the annual performance planning,
review and evaluation process. The evaluation shall include an assessment of
general management skills and specific attainment of the goals and objectives
set forth by the City Council and City Manager.
B. Voluntary 457 Deferred Compensation Plan. City agrees to provide a
deferred compensation plan for employees covered herein pursuant to IRS Code
Section 457. The City's maximum contribution to deferred compensation shall be
one hundred forty-two dollars and twenty-five cents ($142.25) per pay period for
employees that contribute a minimum of seventy-six dollars and twenty-five cents
($76.25) per pay period and a dollar per dollar match for employees that
contribute less than seventy-six dollars and twenty-five cents ($76.25) per pay
period.
The deferred compensation plan is a benefit, and as such the contribution by the
City on behalf of the employee shall not change the employee's salary range.
Executive Compensation Plan 2011 Page 2 Employees may, at their option, contribute in excess of the City's matching
contribution per pay period to the plan.
a. Conversion of Excess Accruals
The City will permit employees to convert and defer the
dollar value of excess accruals of floating holiday hours or
vacation time.
b. Changing Contributions
Employees may reduce the amount of their bi-weekly
deferred compensation contribution at any time with a
minimum of two (2) weeks advance written notice on the
appropriate form to the Human Resources Department.
Employees may increase the amount of their bi-weekly
deferred compensation contribution during quarterly open
enrollment.
IV. LONGEVITY PAY
In recognition of continuous full-time employment, excluding unpaid breaks in
service, the City shall provide non-cumulative Longevity Pay as follows:
Years of
Continuous
Service Monthly Amount
$100 per month
$200 per month
$250 per month $115.39 per pay period
$46.16 per pay period
$92.31 per pay period
Executive Compensation Plan 2011 Page 3 Executive Compensation Plan 2011 Page 4
V. RETIREMENT
A. CalPERS Retirement Benefits
GOVERNMENT _
CODE SECTION BENEFIT
For unit employees that retire on or before
December 31, 2006 and hired after July 1, 2011:
20037
Three-year Final Compensation: Final compensation is the
average full-time monthly pay rate for the highest thirty-six
(36) consecutive months; the City also coordinates with
Social Security, therefore the final compensation will be
reduced by $133.33.
For unit employees that retire on or after
January 1, 2007 and hired prior to July 1, 2011:
20042
One-Year Final Compensation: Final compensation is the
average full-time monthly pay rate for the highest twelve
(12) consecutive months; the City also coordinates with
Social Security, therefore the final compensation will be
reduced by $133.33.
20055 Prior Service Credit: Employees may be eligible to
purchase prior service credit.
20124 Military Service Credit: Employees may be eligible to
purchase up to four (4) years of service credit.
21329 Two percent (2%) COLA: Beginning the 2nd calendar year
after the year of retirement, retirement and survivor
allowances will be adjusted annually on a compound basis
of two percent (2%); the adjustment may not be greater
than the change in the CPI.
21353 2% at Age 60: Base retirement plan of two percent (2%) at
age 60 for all unit employees hired after July 1, 2011.
21354.4 2.5% at Age 55: Base retirement plan of two and one-half
percent (2.5%) at age 55 for all employees hired prior to
July 1,2011.
21548 Pre-retirement Option 2: Upon the death of a member
who was eligible to retire, the spouse may receive an
allowance equal to the amount the member would have
received if the member had retired for service retirement
on the date of death and elected Option 2W. 21551 Death Benefit: Provides that death benefits paid to a
spouse of a member who died prior to retirement will
continue in full should the spouse remarry.
21620 Retired Death Benefit of $500: Upon the death of a retiree,
a .one-time lump sum payment of five-hundred dollars
($500) will be paid to the retiree's designated survivor(s),
or to the retiree's estate.
B. RETIREMENT CONTRIBUTION
1. The CalPERS employee contribution of eight percent (8%) is
established by State legislation.
All employees shall pay 2 percent (2%) of the CalPERS employee
contribution rate through a bi-weekly payroll deduction.
3. Effective July 1, 2011 all employees shall pay a total of 5 percent
(5%) of the CalPERS employee contribution rate through a bi-
weekly payroll deduction.
4. Effective July 1, 2012 all employees shall pay a total of 8 percent
(8%) of the CalPERS employee contribution rate through a bi-
weekly payroll deduction.
VI. MEDICAL INSURANCE
A. CAFETERIA PLAN
The City contracts with the Public Employees' Retirement System (PERS)
for medical insurance coverage. Eligible new hires are covered under the
program on the first day of the month following enrollment. Effective
January 1, 2012, or upon implementation, the City will contribute the
PERS statutory minimum on behalf of each participant in the program.
The statutory minimum for 2012 is $112 per month. A participant is
defined as any of the following individuals: (1) a covered employee, (2) a
covered current retiree, and (3) a covered surviving annuitant of a
deceased retiree. Inclusive of the statutory minimum, the City will provide
current employees with flexible benefits through a cafeteria plan as
provided below:
Employee $ 536.00
Employee +1 $ 1,007.00
Family $ 1,290.00
Executive Compensation Plan 2011 Page 5 The monthly flex dollar allowance may be used in accordance with the
terms of the cafeteria plan to purchase benefits offered under the cafeteria
plan and other supplementary products or, after mandatory health
elections have been made, converted to taxable income.
In the event that premiums and/or costs for the selected benefits exceed
the monthly flex dollar allowance, the balance will be paid by the
employee through automatic pre-tax payroll deduction, as permitted under
IRS Code Section 125.
The City will pay up to an additional 4% towards the increased cost of
medical premiums in a calendar year. The average increase in HMO
dental, vision, life and PERS monthly health care premiums for active
employees shall be calculated by subtracting the average cost of
premiums for all available City-offered health-care plans for the current
year from the average cost of premiums for all available City-offered
health-care plans for the upcoming year. If this percentage is less than
4%, then the City allowances shall be increased only by that percentage.
If this percentage equals or exceeds 4%, the City allowances shall be
increased by 4%. If there is a year where the average premium increase
is 0%, or there is an overall decrease, the City contribution shall not be
adjusted. In addition, the City shall continue to provide flex dollars to cover
100% of HMO dental, vision and life insurance premiums.
B. Medical Insurance Premiums — Opt-Out Option (NON-PERSABLE)
Employees may elect to discontinue participation in the CalPERS Health
Plan. Employees electing to cancel City medical insurance coverage for
themselves and all eligible family members must provide proof of
coverage through another (non-City) benefit plan (e.g., spouse's coverage
through another employer), and must waive any liability to the City for their
decision to cease coverage under the City's medical insurance plan.
Employees electing to opt out will receive the above allotted single-party
flex dollars toward other items in the full flex cafeteria plan or convert it to
taxable income.
C. Re-Enrollment In City Medical Insurance Plan
After opting-out, re-enrollment can only occur during the open enrollment
period or after a qualifying event (proof of loss of coverage by the non-City
plan). Coverage will commence per the plan document.
A qualifying event shall be defined as set forth in the PERS medical plan,
a copy of which is available in the Human Resources Department.
Executive Compensation Plan 2011 Page 6 D. DENTAL INSURANCE
The City shall continue contracting for the current or comparable program.
All unit employees shall be eligible to enroll qualified dependents and will
pay the premium costs for such enrollment through the full flex cafeteria
plan.
The City retains the exclusive right to determine the contents, limits of
coverage, and the contractor for such insurance.
For dental insurance plans, when a unit employee is the spouse of
another benefited City employee, the affected employees shall have the
option of:
• individual coverage; or
• one (1) employee may select a plan and list the spouse as a
dependent.
E. VISION INSURANCE
The City shall continue contracting for the current or comparable
program. All unit employees shall be eligible to enroll qualified
dependents and will pay the premium costs for such enrollment through
the full flex cafeteria plan.
For vision insurance plans, when a unit employee is the spouse of
another benefited City employee, the affected employees shall have the
option of:
• individual coverage; or
• one (1) employee may select a plan and list the spouse as a
dependent.
F. LIFE INSURANCE
The City shall continue contracting for the current or comparable program
for Term Life Insurance Group coverage of $50,000.
G. RETIREE MEDICAL INSURANCE
Employees hired prior to July 1, 2011 that retire on or
before December 31, 2011
The City's monthly contribution for medical insurance provided through the
PERS Health plan, for active employees hired prior to July 1, 2011 and
who retire on or before December 31, 2011, shall be as follows:
(i)
Executive Compensation Plan 2011 Page 7 All plans except PERSCare:
• City shall pay ninety-five percent
(95%) of the monthly medical plan
premium; and
• Employees and retirees shall pay
five percent (5%) of the monthly
medical plan premium.
PERSCare Plan:
• City shall pay seventy percent
(70%) of the monthly PERSCare
premium; and
• Employee and retirees shall pay
thirty percent (30%) of the
monthly PERSCare premium.
(ii) Employees hired prior to July 1, 2010 that retire
after December 31, 2011
Upon retirement with a minimum of 5 years City service, employees
who were hired prior to July 1, 2011 shall be eligible to receive up to
$500.65/mo based on plan enrollment for retiree only, which is
inclusive of the statutory minimum; and pre-65 spousal/dependent
coverage shall be provided up to an additional $437.00/rno subject to
vesting. Vesting for pre-65 spousal/dependent coverage is contingent
upon the employees' years of City service. Employees who retire with
6 years of City service shall be eligible to receive 20% of the maximum
pre-65 spousal/dependent allowance, and another 20% for each
additional year of City service up to 100% of the maximum dependent
allowance after 10 years of City service (i.e. 6 years = 20%, 7 years =
40%, 8 years = 60%, 9 years = 80%, 10 years = 100%). The City's
contribution towards retiree medical insurance shall not increase by
more than 4% annually based on the CalPERS rates in effect as of
January 1, 2011. If the average premium increase of CalPERS medical
insurance plans exceeds 4%, any additional amount shall be borne by
the annuitant.
Effective July 1, 2012, or as soon as implementation can occur; the
City shall make available a retiree health care trust (RHS) to enable
employees to prefund retiree health care expenses while employed by
the City. The City shall match the first $25 per pay period of the
employee contribution to the RHS. The individual accounts can be
utilized after separation of service for reimbursement of all qualified
medical expenses, including insurance premiums, in accordance with
IRS Section 213. The Retiree Health Savings Trust shall reimburse
expenses in accordance with the Internal Revenue Code. Employees
understand that changes to contributions and/or disbursements from
the RHS can change at any time pursuant to federal laws and
regulations.
Executive Compensation Plan 2011 Page 8 (iii) Employees hired on or after July 1, 2011
Upon retirement, employees hired on or after July 1, 2011 shall be
eligible to receive a City contribution for retiree medical in accordance
with Government Code 22892. The City shall contribute an amount not
to exceed the California Public Employees' Medical and Hospital Care
Act (PEMHCA) contribution, as determined by CalPERS on an annual
basis. The statutory minimum amount for 2011 is $108/mo.
Effective July 1, 2012, or as soon as implementation can occur; in
addition to the receipt of the CalPERS statutory minimum as provided
in the previous paragraph, the City shall make available a retiree health
care trust (RHS) to enable employees to prefund retiree health care
expenses while employed by the City. Mandatory participation is
required. The City shall match the first $25 per pay period of the
employee contribution to the RHS. The individual accounts can be
utilized after separation of service for reimbursement of all qualified
medical expenses, including insurance premiums, in accordance with
IRS Section 213. The Retiree Health Savings Trust shall reimburse
expenses in accordance with the Internal Revenue Code. Employees
understand that changes to contributions and/or disbursements from
the RHS can change at any time pursuant to federal laws and
regulations.
VII. IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT
The City provides a flexible spending account for medical expenses and
dependent care, pursuant to Section 125 of the Internal Revenue Service Code
(Section 125), as amended. Under Section 125, the maximum annual amount an
employee may contribute for future medical and dependent care expenses
reimbursement is five thousand dollars ($5,000), exclusively.
Pursuant to Section 125, employees may contribute pre-tax earnings into these
accounts. The medical expense contribution may be used for reimbursement of
medical expenses such as deductibles, co-pays and expenses in excess of what
insurance covers. Dependent care expenses may not be reimbursed until after
they are actually incurred - i.e., after the care has been provided, and not when
the participant is formally billed. Reimbursable dependent care expenses are
non-health care expenses that include insuring a qualified dependent's well-
being and protection. Qualified dependents are children under age 13, disabled
spouses and other dependents who are physically or mentally incapable of self-
care, and who regularly spend at least eight hours each day in the taxpayer's
household.
Executive Compensation Plan 2011 Page 9 Pursuant to Section 125, eligible reimbursable expenses must be incurred within
the calendar year, January 1 st through December 31 st, and must be submitted for
reimbursement no later than March 31 se of the following calendar year. Receipts
submitted after March 31 st in the following calendar year shall be forfeited.
There are other limitations and restrictions set forth by the Internal Revenue
Service.
VIII. PHYSICAL WELL-BEING
The City agrees to make available to each employee, by means of
reimbursement, $500 each fiscal year. Unused funds may be carried over from
one (1) fiscal year to the next fiscal year, not to exceed a total of two (2) fiscal
years.
The Physical Weil-being benefit shall be used for one (1) or more of the following
purposes:
• Medical examination by the health provider of the employee's
choice.
• Membership in a health club or fitness center.
• Other formal wellness programs provided by professionals
(smoking cessation, weight control, nutrition, or similar
programs).
• Reimbursement for employee or eligible dependent medical
expenses (deductibles or co-payments) not covered by the
employee's health, dental or vision insurance.
IX. CAR ALLOWANCE
In accordance with City Policy, employees shall receive a monthly stipend in the
amount of $350. This amount shall be inclusive of any mileage reimbursement
owed for business related travel in personal vehicles.
X. CELL PHONE ALLOWANCE
In accordance with City Policy, employees shall receive a taxable stipend of $60
per pay period to cover business related phone calls.
XI. TUITION REIMBURSEMENT
The City agrees to reimburse employees up to one hundred dollars ($100) per
applicable accredited college unit, plus the actual costs of books, registration
fees and parking permit fees, pursuant to Administrative Policy 11-08, as
amended.
Executive Compensation Plan 2011 Page 10 XII. ON-DUTY DEATH/FUNERAL BENEFIT
In recognition of services rendered, should any employee die in the line of duty,
the City will provide the family of the employee a funeral benefit of seven
thousand five-hundred dollars ($7,500).
XIII. HOURS OF WORK/ EXEMPT FROM OVERTIME
Hours of work shall be whatever is needed to successfully accomplish the
operations of the department and goals/objectives of the City. All positions
covered herein are considered exempt from the overtime provisions of the Fair
Labor Standards Act (FLSA).
XIV. OFFICIAL PAID CITY HOLIDAYS
Official Paid City Holidays for employees shall be considered nine (9) hours
leave with pay. Official Paid City Holidays occurring on an employee's regularly
scheduled day off may, at the employee's discretion, be paid to the employee in
the same pay period; or carried-over for use on another day, no later than June
30th of the same fiscal year.
Official City Paid Holidays shall be as follows:
• New Year's Day (The first day of January)
• Martin Luther King Day (Third Monday in January)
• Memorial Day (Last Monday in May)
• Independence Day (The fourth day of July)
• Labor Day (First Monday in September)
• Thanksgiving Day (Fourth Thursday in November)
• Friday After Thanksgiving Day
• Christmas Day (Twenty-fifth day of December)
• Any one-time special day designated by the President of the
United States or the Governor of California requiring the City
offices to close in recognition of a public feast, thanksgiving or
holiday.
• Any day authorized by the City Manager.
• When an Official Holiday falls on a Saturday, the Friday
immediately preceding the Saturday shall be deemed to be the
day of the Official Paid City Holiday.
• When an Official Holiday falls on a Sunday, the Monday
immediately following the Sunday shall be deemed to be day of
the Official Paid City Holiday.
Executive Compensation Plan 2011- Page 11 XV. FLOATING HOLIDAY LEAVE TIME
Employees shall be eligible to receive forty (40) hours of paid Floating Holiday
leave annually. Floating holiday balances shall be paid on the pay period that
includes June 30' and the new accrual bank will be available and eligible for use
on or after July 1 st .
Employees hired after July 1 8t shall receive pro-rated floating holiday leave time
in proportion to the time remaining within the respective calendar year calculated
from the first day of the month following the date of hire and June 30 th of the
following calendar year.
XVI. VACATION LEAVE
Vacation hours shall accrue each pay period at one twenty-sixth (1/26) of the
annual accrual rate (i.e., annual accrual rate divided by 26). Exceptions to the
maximum allowable accruals may be granted by the City Manager or his/her
designee, to meet exceptional departmental staffing needs.
TA0 .11)FV.ACATION:;:LEAIWRENEFITS.:FOR:
FULL TIME UNIT EMPLOYEES
1 st thru 4th
Year
5thi:thrtk::14th
Year
Sul thru 20
Year
21' Year and
theróafter
80 hours 120 hours 160 hours 8 hours per year for
each year of service
A. ACCUMULATION OF VACATION LEAVE
Vacation time may be accumulated by employees to a maximum of twice
the annual accrual of vacation hours for which the employee is eligible.
Once an employee has accrued the maximum amount of vacation leave,
no further vacation leave shall be accrued until the employee's level of
accrued vacation has been reduced to less than the maximum. At that
time, the employee shall again begin accruing vacation but at no time may
he/she accrue more than the maximum allowed pursuant to this section.
Executive Compensation Plan 2011 Page 12 Sick Leave Accrual Rate
Si-weekly
Accrual rate
3.693 hours
(96 hrs / 26 pay
periods)
Monthly
Accrual rate
8 hours
Annual
adertiairate.
...... .
96 hours
Executive Compensation Plan 2011 Page 13
B. BI-WEEKLY PAYOFF OF EXCESS VACATION ACCRUALS — NON-
PERSABLE
Vacation time which accumulates in excess of the maximum allowed shall
be paid on the next regular bi-weekly paycheck, thereby bringing the
employee's vacation balance to no more than the maximum allowable.
C. VACATION PAYOFF UPON TERMINATION — NON-PERSABLE
Any employee who terminates employment shall be paid (non-PERSable)
for such vacation time accrued but unused as of the date of the
termination.
XVII. SABBATICAL LEAVE
Sabbatical Leave with pay may be approved for up to three (3) weeks by
the City Manager for employees with at least ten (10) years of service for
the purpose of participating in programs including but not limited to:
• Internships in conjunction with advanced degree programs;
• On-loan executive programs;
• Travel/study programs related to the employee's City
responsibilities;
• Directed research pursuant to a pre-approved outline and
submission of a report on a subject of benefit to the City/City
employees; and/or,
• Professional development or certification programs.
Upon approval, employees shall be required to submit a report to the City
Manager detailing or summarizing, as appropriate, the program or
activities attended and the value gained, and will be required to share
his/her experience as training for other City employees within sixty (60)
days after his/her return to active duty.
XVIII SICK LEAVE
Employees shall accrue sick leave each bi-weekly pay period pro-rated on
an annual basis and be credited as follows: TIER 1:
$.10K LEAVE PAYOFF AT
THREE HUNDRED ........
AisjAgpffrFOug(484) liptmpA
Tier I
Maximum
Accurnulat
. . .
ion
Amount of oejoy
Sick Leave Payoff
Amount of Eli-weekly
...Sick Leave Accrued
• g 5070
384 hours 1.85 hrs X hourly rate 1.85 hours 3.693
A. BI-WEEKLY PAYOFF PLAN: UNUSED SICK LEAVE ACCRUAL (NON-
PERSABLE)
1. When an employee has accumulated three hundred and eighty-four
hours (384) hours of unused sick leave credit, the employee will,
thereafter, be eligible for payment in each pay period of a portion of the
unused sick leave accrued during the preceding pay period, subject to
the following conditions:
hours
(1/2 [50%] of bi-weekly
accrual rate of 3.693
hours)
• The unit employee must maintain at least three hundred and eighty four
(384) hours of sick leave accruals.
• if the sick leave accrual balance falls below three hundred and eighty four
(384) hours at any time, the unit employee will become ineligible for any
unused sick leave payment until such time as her/her sick leave accruals
again exceed three hundred and eighty four (384) hours.
2. Employees with at least three hundred and eighty four (384) hours but
less than seven hundred and twenty (720) hours of accrued sick leave
may be paid for one-half (50%) of sick leave accrued and unused in
each pay period as set forth in the Tier 1 table above.
3. The remaining unused sick leave in each pay period shall be added to
the employee's accrual bank up to the seven hundred and twenty (720)
hour maximum.
4. As an alternative to Tier 1 Sick Leave payoff, eligible employees
may:
• Elect on or before December 1 of each year not to participate
in the bi-weekly payoff plan and instead accrue unused sick
leave for the ensuing calendar year (January through
December). However, eligible employees may only accrue to
a maximum of seven hundred and twenty (720) hours ; or
Executive Compensation Plan 2011 Page 14 TIER Z
SICK LEAVE.PAYOPFArsEvericfitiNDRED ,AND::TWENTY'.(720Y1410LIRS ,...,:.,. .
Bi-weekly
Accrual Rate
3.693 hours
Tier .2 .
filexitntirti
Accumulation
720 hours
Amount of Bi-weekly
:Sick Leave Payoff
@ 75%
(Non-PERSable)
2.7 hrs X hourly rate
(3/4 [75%] of Pi-weekly
accrual rate of 3.693
hours)
Amount tif:Bi4Weekly:
Sick Leave Eorfeited
.92 hours
• Employees who accumulate and maintain a minimum credit of
three hundred and eighty four (384) hours of unused sick
leave may elect, once annually, to have a lump sum of ninety-
six (96) hours of accrued sick leave paid to him/her. In order
to qualify for this benefit, this time would need to be otherwise
payable to the employee upon separation from employment.
5. Employees at the maximum accrual of seven hundred and twenty
(720) hours will be paid for three-fourths (75%) of accrued unused
sick leave in each pay period and shall forfeit the remaining
accruals as set forth in the following Tier 2 table:
B. SICK LEAVE PAYOFF UPON RETIREMENT OR FAVORABLE
RESIGNATION — (NON-PERSABLE)
With retirement or favorable resignation after 10 years (120 months) or
more of City service, all accumulated sick leave accruals shall be paid off
at the unit employee's base hourly rate.
C. SICK LEAVE PAYOFF UPON THE DEATH OF AN EMPLOYEE — NON-
PE RSABLE
Upon an employee's death, his/her beneficiaries or estate shall be entitled
to receive the same accumulated leave benefit payoff as the employee
would have received were he/she alive and had favorably resigned or
retired.
Any payoff under this benefit is non-PERSable.
Executive Compensation Plan 2011 Page 15 XIX. PRE-RETIREMENT DISTRIBUTION OF LEAVE ACCRUALS — NON-
PERSABLE
1. An employee giving irrevocable notice of his/her intent to retire within three
(3) years (36 calendar months) may have accrued leaves, which are
otherwise payable upon retirement, distributed in equal installments to his/her
paychecks over the months preceding retirement, with a maximum duration of
thirty-six (36) months.
2. Such distributions may be taken as taxable earnings, or may be used for
deposit in the deferred compensation account under the terms of the Section
457 Catch-up provisions.
3. Such distributions are not reportable to PERS as compensation and will not
affect PERS retirement benefits.
XX. INJURY ON DUTY LEAVE (10D)
A. UP TO SIX (6) MONTHS MAXIMUM SALARY CONTINUANCE
1. If an employee is injured-on-duty (10D) and the claim is determined
to be compensable, an employee may be eligible for salary
continuance. Salary continuance is to be paid during the period for
which temporary disability is required pursuant to Workers'
Compensation Laws of the State of California, an amount which,
when added to such temporary disability benefits and earnings from
other employment, will equal the employee's normal base salary for
the period.
2. Salary continuance payments shall be subject to normal tax
deductions and other mandatory or voluntary deductions, but
without deduction from sick leave or vacation leave accruals, and
shall be provided for a period not to exceed six (6) calendar months
from the date of the injury.
3. In no case shall such compensation be paid for a period of time in
excess of the employee's continuous service immediately prior to
such injury.
B. EXTENSION OF LEAVE AND SALARY CONTINUANCE
When an employee's temporary disability exceeds the six (6) calendar
months of salary continuance set forth above, the City may extend this
salary continuance for up to an additional six (6) months if the unit
Executive Compensation Plan 2011 Page 16 employee is not otherwise eligible for retirement, light or modified duty or
disability transfer, subject to the approval of the City Manager.
C. EXHAUSTION OF SALARY CONTINUANCE
1. When an employee exhausts such salary continuance as set forth
above, or is denied extension of salary continuance, he/she may
elect to utilize accumulated sick leave or vacation leave accruals
which, when added to temporary disability payments and earnings
from other employment, will equal his/her normal base salary,
subject to normal deductions.
2. When an employee's temporary disability payments stop, and
he/she is still unable to return to work, he/she may elect to utilize
accumulated sick leave or vacation leave accruals equal to his/her
normal base salary, subject to normal deductions.
D. CITY INITIATED DISABILITY RETIREMENT
If, at any time during a temporary disability absence, the City receives
medical information which indicates that the employee will not be able to
return to performance of the duties of his/her position, the City may initiate
disability retirement procedures.
E. LIMITATIONS
An employee who is absent, as a result of a compensable work related
injury, for a period of time less than three days, shall have such leave
deducted from sick leave credit unless temporary disability payments are
required to be paid pursuant to Workers' Compensation Laws of the State
of California.
)00. ADMINISTRATIVE LEAVE
In accordance with City Policy, employees shall receive ninety (90) hours of paid
administrative leave in recognition of the leadership roles that the employees
have within the City organization and that the fulfillment of their duties and
responsibilities may require an extended work effort. Administrative leave time is
not accrued and has no cash value.
Executive Compensation Plan 2011 Page 17 XXII. MISCELLANEOUS LEAVES WITH PAY
A. BEREAVEMENT LEAVE
Paid bereavement leave of up to forty (40) hours shall be provided for
leave of absence due to the death of a member of an employee's
immediate family.
Immediate family is defined as follows:
• Brothers • Sisters
• Children • Spouse
• Child's Spouse • Spouse's Brothers
• Grandchildren • Spouse's Grandparents
• Grandparents • Spouse's Parents
• Parents • Spouse's Sisters
• Registered Domestic • Stepchildren
Partner • Stepparents
• Siblings' Spouse
If special circumstance exists wherein another person reasonably
substitutes for one of the foregoing, (i.e., foster parent, legal
guardian, foster child, legal ward, etc.) the employee must register
that special circumstance with the Human Resources Department
in writing in advance in order to qualify for the bereavement leave.
B. JURY DUTY
An employee called to serve on any jury during scheduled work days shall
receive his/her regular base compensation for such time served to a
maximum of ten (10) working days for each jury summons.
The employee shall forfeit jury fees to the City, but shall retain any
mileage compensation provided. In the event the employee is required to
serve in excess of ten (10) compensated work days, he/she may use
accrued leave and retain excess jury fees for that period.
C. MILITARY LEAVES OF ABSENCE
Military leave with pay shall be granted in accordance with applicable state
and federal law; and applicable City policies.
Executive Compensation Plan 2011 Page 18 )0(11I. FAMILY MEDICAL LEAVE ACT (FMLA) AND CALIFORNIA FAMILY RIGHTS
ACT (CFRA)
Pursuant to State and Federal laws, employees shall be eligible for Family and
Medical Leave of absence (FMLA) and California Family Rights Act (CFRA) for:
• The birth of a child of the employee;
• Disability due to pregnancy — FMLA only;
• The placement of a child with an employee in connection with
the adoption or foster care by that employee;
• The care of the employee's child with a serious health condition;
• The care of a spouse or parent with a serious health condition;
• Any qualifying exigency arising out of a spouse, child or parent
called to active military duty ; or
• The employee's own serious health condition.
Such leave rights apply to all employees with twelve (12) months or more service
With the City prior to the leave request who have worked a minimum of 1,250
hours in the preceding twelve (12) months. The employee shall be required to
use sick leave for any FMLA illness or medical-related absence, and may use
vacation or other accrued leaves if sick leave has been exhausted. Upon
expiration of FMLA, if the unit employee remains on leave, he/she shall be
responsible for maintaining his/her insurance benefits, either by use of sufficient
accrued paid leave or by payment of the required premiums.
Employees should contact the Human Resources Department for specific
provisions and requirements. Failure to do so could result in a misunderstanding
of rights and obligations, and could cause loss of leave benefits or loss of
insurance coverage.
XXIV. PREGNANCY DISABILITY LEAVE (PDL)
Pregnancy Disability Leave of up to four (4) months shall be provided to eligible
employees covered herein pursuant to the Fair Employment Housing Act
(FEHA). Pregnancy Disability Leave without pay shall not be granted until
accrued sick leave has been exhausted.
XXV. MAINTENANCE OF BENEFITS WHILE ON LEAVE
Employees must be paid a minimum of thirty-five percent (35%) of their regularly
scheduled bi-weekly working hours to be eligible to receive City provided benefits
including vacation and sick leave accruals.
Executive Compensation Plan 2011 Page 19 Example: An employee who regularly works eighty (80) hours each bi-
weekly pay period, must be paid a minimum of twenty eight (28) hours
(35% of 80 = 28) of his/her accruals when out on leave to be eligible for
City provided benefits including vacation and sick leave accruals.
Employees who are not paid the minimum number of hours required shall be
responsible for the payment of their insurance benefits, and shall not be eligible
for vacation and sick leave accruals.
XXVI. LEAVES OF ABSENCE WITHOUT PAY
An employee may present to the City Manager for approval a request for a leave
of absence without pay not to exceed one (1) year. The employee shall indicate
the basis of the leave in his/her request.
Leaves of absence without pay may be granted for illness exceeding
accumulated sick leave, child care absences exceeding pregnancy disability
leave, special education, special duty for another governmental agency,
extension of vacation time, seeking political office or any other reason which is
deemed to be in the best interests of City government.
XXVII. LEGAL DEFENSE
In the event an employee covered herein is named as an individual defendant in
litigation involving conduct in his/her official capacity as an agent for the City
and/or Redevelopment Agency, the City Attorney will, prior to recommending any
settlement of the litigation to the City Council and/or Redevelopment Agency,
consult with the employee concerning the proposed settlement and present the
employee's oral or written comments concerning the proposed settlement to the
City Council and/or Redevelopment Agency at any session at which the
settlement is to be discussed.
Executive Compensation Plan 2011 Page 20 EXECUTIVE MANAGEMENT CLASSIFICATIONS
As of May 1,2011
The following classifications are covered under the Executive Compensation Plan, as may be amended.
Asst City Manager
Asst to the City Manager
Chief Financial Officer
Chief information Officer
MGMT 687 A OAE015 76.331 13,230.71 158,768.48
687 B OAE015 80.232 13,906.88 166,882.56
687 C OAE015 84.331 14,617.37 175,408.48
687 D OAE015 88.641 15,364.44 184,373.28
687 E OAE015 93.170 16,149.47 193,793.60
MGMT 594 A 0AD025 48.019 8,323.29 99,879.52
594 B OAD025 50.473 8,748.65 104,983.84
594 C 0AD025 53.052 9,195.68 110,348.16
594 D 0AD025 55.763 9,665.59 115,987.04
594 E 0AD025 58.612 10,159.41 121,912.96
MGMT 679 A OAE018 73.350 12,714.00 152,568.00
679 B OAE018 77.098 13,363.65 160,363.84
679 C OAE018 81.038 14,046.59 168,559.04
679 D OAE018 85.179 14,764.36 177,172.32
679 E OAE018 89.531 15,518.71 186,224.48
MGMT 663 A OAE001 67.725 11,739.00 140,868.00
663 B OAE001 71.185 12,338.73 148,064.80
663 C OAE001 74.824 12,969.49 155,633.92
663 D OAE001 78.648 13,632.32 163,587.84
663 E OAE001 82.666 14,328.77 171,945.28
Community Development Director MGMT 644 A OAE007 61.607 10,678.55 128,142.56
644 B OAE007 64.755 11,224.20 134,690.40
644 C OAE007 68.064 11,797.76 141,573.12
644 D OAE007 71.542 12,400.61 148,807.36
644 E OAE007 75.198 13,034.32 156,411.84
Human Resources Director
MGMT 643 A OAE011 61.301 10,625.51 127,506.08
643 B OAE011 64.432 11,168.21 134,018.56
643 C OAE011 67.725 11,739.00 140,868.00
643 D OAE011 71.185 12,338.73 148,064.80
643 E OAE011 74.824 12,969.49 155,633.92
Parks, Rec & Cmty Svc Director MGMT 642 A OAE009 60.996 10,572.64 126,871.68
642 B OAE009 64.112 11,112.75 133,352.96
642 C OAE009 67.388 11,680.59 140,167.04
642 D OAE009 70.833 12,277.72 147,332.64
642 E OAE009 74.452 12,905.01 154,860.16
Public Works Dir/City Engineer MGMT 673 A OAE003 71.185 12,338.73 148,064.80
673 B OAE003 74.824 12,969.49 155,633.92
673 C OAE003 78.648 13,632.32 163,587.84
673 D OAE003 82.666 14,328.77 171,945.28
673 E OAE003 86.891 15,061.11 180,733.28
Transportation Director
MGMT 655 A 0AE012 65.079 11,280.36 135,364.32
655 B OAE012 68.404 11,856.69 142,280.32
655 C OAE012 71.899 12,462.49 149,549.92
655 D OAE012 75.573 13,099.32 157,191.84
655 E OAE012 79.435 13,768.73 165,224.80