City of Culver City, California
Agenda Item Report
Meeting Date: 07/14/2014 Item Number: A-5
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving an Updated
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 (07/09/14)
Department Approval:
Serena Wright (07/08/14)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/09/14)
Chief Financial Officer Approval:
Jeff Muir (07/08/14)
City Manager Approval:
John M. Nachbar (07/09/14)
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution approving an updated
Executive Compensation Plan.
BACKGROUND:
In June 2011, the City Council approved carving out Executive Management (EM)
level classifications from the Culver City Management Group (CCMG) and placing
those classifications in a non-represented capacity.
The City Council subsequently adopted an Executive Compensation Plan which
outlines the terms of conditions of employment for EM.
DISCUSSION:
The City Council will be considering adoption of a Memoranda of Understanding
(MOU) with CCMG on this evening’s agenda. Staff is recommending that the City
Council consider providing EM with the same benefits granted to CCMG by adopting
a resolution approving an updated Executive Compensation Plan. In summary,
those benefits include:
? 2% annual cost-of-living adjustment for each year of the three year term
? 1% annual lump sum non-recurring compensation for each year of the three
year term City of Culver City, California
Agenda Item Report
? Increase tuition reimbursement to $250 per unit
? $1,500 annual education incentive for possession of a Master’s degree or
above
? Provide 8 additional hours of floating holiday time in recognition of Cesar
Chavez day
? Convert the existing 2% Management Incentive Pay to base salary
FISCAL ANALYSIS:
The estimated on-going annual cost of this agreement will be $70,000 in the first
year, $115,000 in the second year and $161,000 in the third year. There is an
estimated additional cost of $23,000 in each year for the lump-sum compensation
that will not continue after the expiration of the MOU. Approximately ninety
percent (90%) of these costs will be paid by the General Fund, with the balance to
enterprise or special funds.
ATTACHMENTS:
1. Proposed Resolution with updated Executive Compensation Plan (Effective
July 1, 2014)
MOTION:
That the City Council:
Adopt a resolution approving an updated Executive Compensation Plan.
MEETING DATE: 07/14/14
AGENDA ITEM: Adoption of a Resolution Approving an Updated
Executive Compensation Plan.
ATTACHMENTS
1. Proposed City Council Resolution
1
2. Memorandum of Understanding 3
12
CULVER CITY EXECUTIVE MANAGEMENT
COMPENSATION PLAN
3
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.
Employees shall receive a 2% base salary adjustment each year in the pay
period that includes July 1 in 2014, 2015 and 2016
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 sixty dollars ($160.00) 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.
Executive Compensation Plan 2014 Page 2
4
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.
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
Bi-weekly Amount
15 $100 per month $46.16 per pay period
20 $200 per month $92.31 per pay period
25 $250 per month $115.39 per pay period
V. Management Incentive Pay
Effective upon full execution of this MOU, employees shall cease receiving
2% Management Incentive Pay. The 2% special compensation received
as Management Incentive Pay shall be added to employees’ base monthly
salary.
Executive Compensation Plan 2014 Page 3
5
VI. EDUCATION INCENTIVE PAY
The purpose of the Education Incentive benefit is to encourage and reward
employees for the pursuit and attainment of higher level education not
required by the employee’s current job classification.
Effective the first full pay period after July 1
st
, employees that possess a
Master’s Degree or higher from an accredited organization recognized by
the Department of Education shall receive a $1,500 annual education
incentive.
Employees shall provide a copy of his or her degree certificate to the Human
Resources Department.
VII. NON-RECURRING COMPENSATION
Employees shall receive a 1% lump sum payment upon full
execution of this agreement. Additionally, employees will receive a
1% lump sum payment in the first full pay period after July 1, 2015
and July 1, 2016. This compensation shall be reported to CalPERS
pursuant to California Code of Regulations (CCR) Section 571, Off-
Salary-Schedule Pay.
V. RETIREMENT
A. CalPERS Retirement Benefits
The City agrees to provide retirement benefits to eligible employees under
the California Public Employees' Retirement System (PERS) as follows.
The definition of “new” member and “classic” member are set forth in
Appendix B of this MOU.
Executive Compensation Plan 2014 Page 4
6
GOVERNMENT
CODE SECTION
BENEFIT
7522.20 (a)
“New” Members, as defined by the Public Employees
Pension Reform Act (PEPRA), hired on or after
January 1, 2013
2% @ Age 62: Base retirement plan of two percent (2%)
at age 62 for all unit employees defined as “new” members
by AB 340 and hired on or after January 1, 2013.
20037
For unit employees that retire on or before
December 31, 2006 and hired after July 1, 2011:
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.
20042
For unit employees that retire on or after
January 1, 2007 and hired prior to July 1, 2011:
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 2
nd
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
Executive Compensation Plan 2014 Page 5
7
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. CALPERS EMPLOYEE CONTRIBUTION FOR “CLASSIC MEMBER”
EMPLOYEES HIRED PRIOR TO JULY 1, 2011
1. The CalPERS employee contribution of eight percent (8%) for the
2.5% @ 55 retirement plan is established by State legislation.
Employees shall be responsible for the full PERS employee
contribution payment which is currently eight percent (8%)
2. The City continues to pay all other PERS employer related costs for
PERS benefits provided by the City.
3. The City has adopted the CalPERS resolution in accordance with
Internal Revenue Code section 414(h)(2) to ensure that the
employee contribution is made on a pre-tax basis.
C. CALPERS EMPLOYEE CONTRIBUTION FOR “CLASSIC MEMBER”
EMPLOYEES HIRED ON OR AFTER JULY 1, 2011
1. The PERS employee contribution rate of seven percent (7%) for the
2% @ 60 retirement plan is established by State legislation. Unit
employees shall be responsible for the full PERS employee
contribution payment which is currently seven percent (7%).
2. The City continues to pay all other PERS employer related costs for
PERS benefits provided by the City.
3. The City has adopted the CalPERS resolution in accordance with
Internal Revenue Code section 414(h)(2) to ensure that the
employee contribution is made on a pre-tax basis.
Executive Compensation Plan 2014 Page 6
8
D. CALPERS EMPLOYEE CONTRIBUTION FOR “NEW MEMBER”
EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013
1. Unit employees defined as new members by PEPRA are covered
under the 2% at age 62 retirement formula. New members shall be
responsible for paying the employee contribution rate of one-half of
the total normal cost of the plan as determined by CalPERS.
2. The City continues to pay all other PERS employer related costs
for PERS benefits provided by the City.
3. The City has adopted the CalPERS resolution in accordance with
Internal Revenue Code section 414(h)(2) to ensure that the
employee contribution is made on a pre-tax basis.
VI. MEDICAL INSURANCE
A. CAFETERIA PLAN
The City contracts with the California 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. the City will contribute the PERS statutory minimum on behalf
of each participant in the program. The statutory minimum for 2014 is
$119 per month and $122 per month for calendar year 2015. 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 $ 664.00
Employee +1 $ 1,143.00
Family $ 1,422.00
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.
Executive Compensation Plan 2014 Page 7
9
The City will contribute up to an additional 4% towards the increased cost
of medical premiums in a calendar year. The average increase in PERS
monthly health care premiums for active employees shall be calculated by
subtracting the average cost of Los Angeles area Basic premiums for all
available City-offered CalPERS health-care plans for the current year from
the average cost of Los Angeles area Basic premiums for all available
City-offered CalPERS 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 (“Opt-Out). 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.
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.
Executive Compensation Plan 2014 Page 8
10
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
(i) 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 retired on or before December 31, 2011 or “Grandfathered
Employees, shall be as follows:
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.
Executive Compensation Plan 2014 Page 9
11
“Grandfathered employees” is defined as unit employees that, as of
December 31, 2011, have twenty (20) or more years of CalPERS
service (excluding “Air Time”) or, unit employees that retire on or
before January 1, 2022 with twenty-five (25) years or more of Culver
City service.
(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
$520.68/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 $454.48/mo 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. The average increase in PERS
monthly health care premiums shall be calculated by subtracting the
average cost of Los Angeles area Basic (non-Medicare) premiums for
all available City-offered CalPERS health-care plans for the current
year from the average cost of Los Angeles area Basic (non-Medicare)
premiums for all available City-offered CalPERS 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. Employees shall only be eligible to receive the
City contribution towards retiree medical insurance based on his or her
family status at the time of retirement. This amount shall only be
increased by up to 4% of the average cost of CalPERS Basic (non-
Medicare) Los Angeles area premiums as described above.
Executive Compensation Plan 2014 Page 10
12
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.
(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 2014 is $119/mo and $122
per month for calendar year 2015.
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 two thousand five hundred dollars ($2,500), exclusively.
Executive Compensation Plan 2014 Page 11
13
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.
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
st
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 provide $500 annualy to each unit employee effective the first
full pay period after July 1
st
.
The Physical Well-being benefit is recommended to 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 $375. This amount shall be inclusive of any mileage reimbursement
owed for business related travel in personal vehicles.
X. CELL PHONE ALLOWANCE
Executive Compensation Plan 2014 Page 12
14
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 two hundred fifty dollars ($250)
per applicable accredited college unit, plus the actual costs of books, registration
fees and parking permit fees. Applicable procedures and eligibility requirements
shall be pursuant to Administrative Policy II-08, as amended.
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
Executive Compensation Plan 2014 Page 13
15
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.
XV. FLOATING HOLIDAY LEAVE TIME
Employees shall be eligible to receive forty-eight (48) hours of paid Floating
Holiday leave time each July. Eight (8) of these hours have been provided in
recognition of Cesar Chavez day. Floating holiday balances shall be paid on the
pay period that includes June 30
th
and the new accrual bank will be available and
eligible for use on or after July 1
st
.
Employees hired after July 1
st
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.
TABLE OF VACATION LEAVE BENEFITS FOR
FULL TIME UNIT EMPLOYEES
|1010|st
thru 4
th
Year
|1010|th
thru 14
th
Year
15
th
thru 20
th
Year
21
st
Year and
thereafter
80 hours
120 hours
160 hours
8 hours per year for
each year of service
A. ACCUMULATION OF VACATION LEAVE
Executive Compensation Plan 2014 Page 14
16
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.
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. BI-ANNUAL ACCRUAL CASH OUT ELECTION
A. ELIGIBILITY
The City shall provide unit employees’ the option to cash out vacation and
floating holiday leave banks. Unit employees must maintain a minimum
vacation leave bank balance of forty (40) hours in order to be eligible.
B. PROCEDURE
Accrual cash outs shall only be permitted each June 1
st
and December 1
st
.
Unit employees must submit a written request to the Human Resources
Department prior to the end of the regular payroll deadline for that pay
period. Upon proper notification, cash out elections shall be included in the
paycheck for the first full pay period that includes June 1
st
and
December1
st
as requested.
XVIII. 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;
Executive Compensation Plan 2014 Page 15
17
• 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.
XIX. SICK LEAVE
Employees shall accrue sick leave each bi-weekly pay period pro-rated on
an annual basis and be credited as follows:
Sick Leave Accrual Rate
Bi-weekly
Accrual rate
Monthly
Accrual rate
Annual
accrual rate
3.693 hours
(96 hrs / 26 pay
periods)
8 hours
96 hours
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:
TIER 1:
SICK LEAVE PAYOFF AT
THREE HUNDRED AND EIGHTY FOUR (384) HOURS
Bi-weekly
Accrual
Rate
Tier 1
Maximum
Accumulat
ion
Amount of Bi-weekly
Sick Leave Payoff
@ 50%
(Non-PERSable)
Amount of Bi-weekly
Sick Leave Accrued
@ 50%
Executive Compensation Plan 2014 Page 16
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3.693
hours
384 hours 1.85 hrs X hourly rate
(1/2 [50%] of bi-weekly
accrual rate of 3.693
hours)
1.85 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
• 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:
TIER 2:
SICK LEAVE PAYOFF AT SEVEN HUNDRED AND TWENTY (720) HOURS
Bi-weekly
Accrual Rate
Tier 2
Maximum
Amount of Bi-weekly
Sick Leave Payoff
Amount of Bi-weekly
Sick Leave Forfeited
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Accumulation @ 75%
(Non-PERSable)
@ 25%
3.693 hours
720 hours
2.7 hrs X hourly rate
(3/4 [75%] of bi-weekly
accrual rate of 3.693
hours)
.92 hours
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-
PERSABLE
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.
XX. 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.
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XXI. INJURY ON DUTY LEAVE (IOD)
A. UP TO SIX (6) MONTHS MAXIMUM SALARY CONTINUANCE
1. If an employee is injured-on-duty (IOD) 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
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.
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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
1. 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.
2. Unit employees receiving IOD payments, salary continuance, and/or
temporary disability payments:
a. Shall be available for follow-up treatment, diagnosis,
therapy, and related matters, unless authorized to leave the
area for extenuating circumstances with prior authorization
from Risk Management, and
b. Shall be required to provide an address and phone number
where they can be contacted, if they plan to be away from
their residence. Shall be required to notify Risk Management
immediately upon change of residence and contact
information.
c. May not receive CalPERS service credit during the time of
absence.
XXII. ADMINISTRATIVE LEAVE
In accordance with City Policy, employees shall receive ninety - six (96) 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.
XXIII. MISCELLANEOUS LEAVES WITH PAY
A. BEREAVEMENT LEAVE
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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
• Parents
• Registered Domestic
Partner
• Siblings’ Spouse
• Spouse’s Parents
• Spouse’s Sisters
• Stepchildren
• Stepparents
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.
XXIV. 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:
Executive Compensation Plan 2014 Page 21
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• 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.
XXV. 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.
XXVI 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.
Example: An employee who regularly works eighty (80) hours each bi-
weekly pay period, must be paid a minimum of twenty eight (28) hours
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(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.
XXVII. 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.
XXVIII. 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 the Successor Agency to the Culver City Redevelopment Agency, the
Culver City Housing Authority, the Culver City Parking Authority, and other
similar bodies, the City Attorney may at his or her sole discretion, prior to
recommending any settlement of the litigation to the City Council and/or the
Successor Agency to the Culver City Redevelopment Agency, the Culver City
Housing Authority, the Culver City Parking Authority, and other similar bodies,
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 the Successor Agency to the Culver City Redevelopment
Agency, the Culver City Housing Authority, the Culver City Parking Authority, and
other similar bodies at any session at which the settlement is to be discussed.
Executive Compensation Plan 2014 Page 23
25APPENDIX “B”
DEFINITIONS OF “NEW MEMBER” AND “CLASSIC MEMBER” PER THE PUBLIC
EMPLOYEES’ PENSION REFORM ACT OF 2013 (PEPRA).
The following is provided for informational purposes only in order to assist unit
employees with understanding their retirement benefits. This information is not intended
to be a comprehensive overview of the benefit changes provided by PEPRA. Unit
employees should contact CalPERS for specific information on how these changes may
affect his or her retirement benefits.
New Member
Government Code section 7522.04(f) defines “new member” as follows:
(f) “New member” means any of the following:
(1) An individual who becomes a member of any public retirement system for the
first time on or after January 1, 2013, and who was not a member of any other
public retirement system prior to that date.
(2) An individual who becomes a member of a public retirement system for the
first time on or after January 1, 2013, and who was a member of another public
retirement system prior to that date, but who was not subject to reciprocity under
subdivision (c) of Section 7522.02.
(3) An individual who was an active member in a retirement system and who,
after a break in service of more than six months, returned to active membership in that
system with a new employer.
Classic Member
CaIPERS refers to all members who do not fit within the definition of “new member” as a
classic member.
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