City of Culver City, California
Agenda Item Report
Meeting Date: 08/26/2013 Item Number: C-2
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: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Dates:
Public Notification: (E-Mail) Agenda and Meetings – City Council (08/20/13)
Department Approval:
Serena Wright (08/14/13)
City Attorney Approval:
Carol Schwab (by H. Baker) (08/19/13)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (08/20/13)
City Manager Approval:
John M. Nachbar (08/20/13)
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 and conditions of employment for EM.
DISCUSSION:
The City Council recently adopted Memoranda of Understanding (MOU) with the
Culver City Employees Association (CCEA) and the Culver City Management Group
(CCMG). 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% lump sum bonus
• Increase annual administrative leave by 6 hours
• Increase deferred compensation contribution by $17.75 per pay period
• Increase cafeteria allowance up to $49 per month based on family status
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
The estimated one-time cost for the 2% bonus is $39,650 City-wide, and $36,280 of
that is for the General Fund. The increase in the administrative leave bank will not
result in a direct payment to employees, but will likely be used in lieu of vacation
time which does have a cash value of approximately $2,500 per year. The increased
deferred compensation match is estimated to cost $5,000 City-wide, with $4,560 of
that from the General Fund. The increased cafeteria benefit allowance will cost
$2,540 City-wide, with $2,200 from the General Fund.
ATTACHMENTS:
1. Proposed Resolution with Updated Executive Compensation Plan (Effective
July 1, 2013)
MOTION:
That the City Council:
Adopt a Resolution approving an updated Executive Compensation Plan.
MEETING DATE: 08/26/13
AGENDA ITEM: Adoption of a Resolution Approving an Updated
Executive Compensation Plan.
ATTACHMENTS
Pages
1 Resolution
1 — 2
2. Executive Management Compensation Plan,
3 —22
Effective July 1, 2013 RESOLUTION NO. 2013-R
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING AN EXECUTIVE COMPENSATION PLAN.
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WHEREAS, City representatives have met and determined to amend the
7 Executive Compensation Plan which outlines wages, hours, terms and conditions of
8 employment for the following classifications:
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Assistant City Manager Assistant to City Manager
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Chief Financial Officer Chief Information Officer
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Community Development Director Human Resources Director
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Parks, Recreation and Community Public Works Director/City Engineer
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Services Director
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Transportation Director
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NOW, THEREFORE, the City Council of the City of Culver City, DOES
17 HEREBY RESOLVE AS FOLLOWS:
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1. The Executive Compensation Plan, a copy of which is attached
19 - hereto and made a part hereof, is hereby approved.
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III
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28 APPROVED and ADOPTED this day of
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2013
JEFFREY COOPER, MAYOR
City of Culver City, California
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ATTEST:
MARTIN R. COLE, City Clerk CARRL-A. SCHWAB, City Attorney
A13-00621
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2. The City Manager and Chief Financial Officer are hereby
2 authorized to adjust the budget and the records of employees necessary to pay the
3 salaries and costs related to the terms of the approved Executive Compensation Plan.
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28 CULVER CITY EXECUTIVE MANAGEMENT
COMPENSATION PLAN
EFFECTIVE JULY 1, 2013
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.
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
Executive Compensation Plan
Effective July 1, 2013
Page 2
4 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. Employees may, at their option, contribute in excess of the
City's matching contribution per pay period to the plan.
1. 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.
2. 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 Monthi Amount Bi-weekiv 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
Employees hired prior to November 1, 2011 shall receive 2% Management
Incentive Pay. This additional pay provides eligible Employees extra pay in
recognition of the unique nature of their jobs and the special skills, knowledge
and abilities required. The compensation is paid as earned for normally required
duties performed during normal work hours. It is not compensation in lieu of
Executive Compensation Plan
Page 3
Effective July 1, 2013 overtime or in lieu of other benefits that are excluded from consideration under
the statutes and regulations of the Public Employees' Retirement System.
Pursuant to the California Code of Regulations (CCR) Section 571, Management
Incentive Pay shall be reported to CalPERS as special compensation.
VI. SIGNING BONUS
Employees shall receive a 2% bonus upon City Council approval of this Plan.
This bonus may be used at the discretion of the Employee. This compensation
shall be reported to CalPERS pursuant to California Code of Regulations (CCR)
Section 571, Off-Salary-Schedule Pay.
VII. RETIREMENT
A. CalPERS Retirement Benefits
GOVE RhiNENT
CODE SECTION BENEFIT
20037
For Employees that retire on or before
December 31, 2006 and hired after July 1.2011:
Threpar Firpl rsompensti ,,n: Final c"rnr.nsation i.S |1010|Lle
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 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.
Executive Compensation Plan
Page 4
Effective July 1, 2013 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 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.
2. Employees shall pay a total of 8 percent (8%) of the CalPERS
Employee contribution rate through a bi-weekly payroll deduction.
VIII. MEDICAL INSURANCE
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. The City will
contribute the PERS statutory minimum on behalf of each participant in the
program. The statutory minimum for 2013 is $115 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
Executive Compensation Plan
Page 5
Effective July 1, 2013 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
Farnily
$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.
The City will pay 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 premiums for all available City-offered
CalPERS health-care plans for the current year from the average cost of
premiums for all available City-offered CalPERS health-care plans for the
upcoming year. Employee 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 (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.
Executive Compensation Plan
Page 6
Effective July 1, 2013 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 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 an 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 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 an 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.
Executive Compensation Plan
Page 7
Effective July 1, 2013 G. RETIREE MEDICAL INSURANCE
1. 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: PERSCare Plan:
• City shall pay ninety-five percent • City shall pay seventy percent
(95%) of the monthly medical (70%) of the monthly PERSCare
plan premium; and premium; and
• Employees and retirees shall • Employee and retirees shall pay
pay five percent (5%) of the thirty percent (30%) of the
monthly medical plan premium. monthly PERSCare premium.
"Grandfathered Employees" is defined as Employees that, as of
December 31, 2011, have twenty (20) or more years of CalPERS
service (excluding "Air Time") or, Employees that retire on or before
January 1, 2022 with twenty-five (25) years or more of Culver City
service.
2. Employees hired prior to July 1, 2011 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
$520.681mo 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.
Executive Compensation Plan
Page 8
Effective July 1,2013
ID 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.
3. 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 2013 is $115/mo.
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.
IX. 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 ($2,5000), exclusively.
Executive Compensation Plan
Page 9
Effective July 1,2013 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 sti 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.
X. PHYSICAL WELL-BEING
The City agrees to provide $500 annually to each 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.
XI. 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.
Executive Compensation Plan
Page 10
Effective July 1, 2013 XII. 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.
XIII. 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.
XIV. 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).
XV. 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).
XVI. 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)
Executive Compensation Plan
Effective July 1, 2013
Page 11
t3 OF.,y4pAppkwAw';::,aNgElwFw : ;
FULL TIME EMPLOYEES
thru 20i
Year
21•Year and
thereafter
80 hours 120 hours 160 hours 8 hours per year for
each year of service
• 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.
XVII. 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 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.
XVIII. VACATION LEAVE
Vacation hours shall accrue each pay period at one twenty-sixth (1/26) of the
annual accrual rate (Le., 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.
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
Executive Compensation Plan
Page 12
Effective July 1, 2013 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.
XIX. 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.
XX. SICK LEAVE
Employees shall accrue sick leave each bi-weekly pay period pro-rated on an
annual basis and be credited as follows:
Executive Compensation Plan
Effective July 1,2013
Page 13 Bi-weekly
Accrual
Rate
Tier 1
Maximum
Accurnulat '
ion
Anion:litof Bi-weekly
LeavaPayoff
:
(NOrt -1-)h}gSabW
Amount of Bi-weekly
Sick Leave Accrued
@50%
"
, SICK LEAVE PAYOFF AT
..THR:gp ,s...uNpRgDAND .:ElefiTY FOUR (384)
3.693 384 hours 1.85 hrs X hourly rate
1.85 hours
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:
hours
(1/2 [50%] of bi-weekly
accrual rate of 3.693
hours)
• The 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 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.
Executive Compensation Plan
Page 14
Effective July 1,2013 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 LEAVEPAYOFFATSEVEN ,HUNDREO:.ANDHTWENTY: (7 .4)11pogs ,:.!.
, .
3.693 hours 720 hours
Amount of Bi-weekl ,
Sick Leave payoff
@ 75%
(Non-PERSable)
2.7 his X hourly rate
(314 [75%] of bi-weekly
accrual rate of 3.693
hours)
Amount of Si-weekly
Sick Leave Forfeited
g 25%
.92 hours
Bi-weekly
Accrual Rate
T
Accumulation
aximum
B. SICK LEAVE PAYOFF UPON RETIREMENT OR FAVORABLE
RESIGNATION — (NON-PERSABLE1
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 Employee's base hourly rate.
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Effective July 1,2013 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.
XXI. 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.
)0(11. INJURY ON DUTY LEAVE (I0D)
A. UP TO SIX (6) MONTHS MAXIMUM SALARY CONTINUANCE
1. If an Employee is injured-on-duty (I0D) 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.
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Effective July 1,2013
Page 16
fg 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 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.
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Effective July 1, 2013
/
9 )0(11I. 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.
XXIV. 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
• Children
• Child's Spouse
• Grandchildren
• Grandparents
• PnrAntR
• Registered Domestic Partner
• Siblings' Spouse
• Sisters
• Spouse
• Spouse's Brothers
• Spouse's Grandparents
• 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.
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Effective July 1, 2013 C. MILITARY LEAVES OF ABSENCE
Military leave with pay shall be granted in accordance with applicable state
and federal law; and applicable City policies.
XXV. 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
hnrirQ in the preceding twelve (1 9) 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 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.
XXVI. 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.
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Effective July 1, 2013 XXVII. 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
(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.
XXVIII. 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.
XXIX. 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 may at his or her sole discretion,
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.
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Effective July 1, 2013