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01-20-2015 - Item 10 - FY 2014-2015 Department Heads' Employment Agreement Salary and BenefitsCity of West Covina Memorandum TO: nuelui Mayor and City Council Tom Mauk Interim City Manager Chris Freeland Deputy City Manager/Acting Human Resources Director AGENDA ITEM NO. 10 DATE January 20, 2015 SUBJECT: FISCAL YEAR 2014-2015 DEPARTMENT HEADS' EMPLOYMENT AGREEMENT- SALARY AND BENEFITS RECOMMENDATION: It is recommended that the City Council adopt the following resolution approving a one-year employment agreement with City of West Covina Department Heads: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING COMPENSATION AND BENEFITS FOR THE WEST COVINA DEPARTMENT HEADS DISCUSSION: The employment agreements for the City of West Covina Department Heads expired on June 30, 2014. Department Heads are not a unionized labor group, as such, their compensation and benefits are not in the form of a Memorandum of Understanding, but are granted by City Council resolution. A summary of the Department Head Benefits through June 30, 2014 are attached (Attachment No. 1). This summary outlines the compensation, benefits, duties and responsibilities of employees, as well as a variety of policies and procedures the Department Heads are subject to. Since 2009, the various City employee associations (Miscellaneous and Public Safety Groups) and Department Heads have participated in a variety of cost saving measures to assist the City recover from the recent recession, including, furloughs, paying the employee's contribution of their Public Employee Retirement System benefit, reduction in leave banks, etc. The City Council has engaged in the meet and confer process with the Department Heads and have reached an agreement on a compensation and benefits package that will cover the period of July 1, 2014, through June 30, 2015. The agreement contains changes to benefits and certain terms and conditions of employment, which are to be approved by the City Council by resolution (Attachment No.2). Currently, certain benefits provided to Department Heads are also provided to the City Council. City staff have indicated where those benefits are being changed for Department Heads, they will also change for the City Council. The specific changes are listed below. • Term: One (1) Year Agreement from July 1, 2014 through June 30, 2015. • Previous Agreement: All provisions from the previous agreement shall rollover, other than the items outlined below. 0 Floating Holidays: Increase floating holidays from 24 hours to 40 hours. • Medical and Dental Benefits: Maintain current medical benefit. Increase dental benefit from $53.28 per month to $62.23 per month. This benefit is also provided to the City Council. • Maximum Vacation Bank Caps: Increase Department Heads vacation bank caps. Department Heads are currently allowed to maintain a vacation bank of up to 320 hours depending on the numbers of years of service. Years of Service Hours of Vacation a Year (Current) Maximum Vacation Bank Cap (Proposed) Maximum Vacation Bank Cap Less than 1 80 240 300 1-9 120 280 350 10 128 288 360 11 136 296 370 12 144 304 380 13 152 312 390 Over 13 Years 160 320 400 • Annual Administrative Leave Cash Out/Rollover: Department Heads are currently allowed to cash out or rollover forty (40) hours of Administrative Leave per year. Department Heads are requesting to increase cash out to up to fifty (50) hours per year and the ability to rollover up to fifty (50) hours per year. There is no deadline on the use of these hours, but a maximum cap of one hundred (100) hours of rollover hours will be established. Administrative leave that is rolled over will be put into a separate leave account and will not be eligible for cash out the following year or upon separation from the City. • Vacation Leave Earned: Grant the City Manager the authority to negotiate the vacation accrual rate for new Department Heads up to 160 maximum hours. Currently, when a new Department Head joins the City, they accrue vacation at a rate of 80 hours per year. Many cities allow new Department Heads to accrue vacation hours based on the number of years of public service at any municipality and not based on the years of service with their new City. This is a disincentive for new Department Heads to join West Covina, as they are likely leaving an organization where they have developed seniority and more vacation earned. If the City Manager has this authority, he could negotiate a salary and leave package as another incentive to successfully attract experienced individuals to the City of West Covina. This benefit will be afforded to those Department Heads recently hired by the City of West Covina, including the Police Chief, Fire Chief, and Assistant City Clerk. Years of Service Hours of Vacation a Year Less than 1 80 1-9 120 10 128 11 136 12 144 13 152 Over 13 Years 160 Acting Pay Assignment: Section 3.16 of the City's Personnel Rules allows for employees in the various bargaining groups (Public Safety and Miscellaneous Groups) to serve in acting roles to the benefit of the organization and to receive additional compensation (5% of base pay) for serving in that role. However, a review of the Department Head summary of benefits and Personnel Policies, there is no language authorizing this additional Acting Pay Assignment for Department Heads. As such, Department Heads are seeking language that is consistent with all other bargaining groups, for those Department Heads serving in multiple departments. Those Department Heads that are serving in an acting capacity of a Department Head, in addition to their own Department may receiving acting compensation at a rate of five percent (5%) above their base salary after the completion of the thirtieth (30"i) calendar day of such appointment until the completion of the appointment, provided such appointment is approved by the City Council. Such acting appointment shall not exceed twelve (12) months, unless extension is approved by the City Council. Salary Survey: Conduct a salary survey as part of the upcoming budget discussion for Fiscal Year 2015-2016. The results of the survey are not binding to the City for inclusion in the next budget, but will provide valuable data for consideration. • One -Time Cash Out: Employees may cash out up to 50 hours of sick leave/vacation time from their sick leave and or vacation bank in addition to any existing cash -out options. LEGAL REVIEW: The City Attorney's office has reviewed this staff report, summary of benefits, and the attached resolution. FISCAL IMPACT: The Fiscal Impact is estimated to be approximately $21,210 for Fiscal Year 2014-2015. These expenses can be absorbed within the current City budget. Prepared By: Reviewed and Approved By: Chris Freeland Mike Lee Deputy City Manager/ Assistant City Manager/Community Acting Human Resources Director Development Commission Director Attachments: Attachment No. 1 — Department Head Benefits Summary July 1, 2013 — June 30, 2014 Attachment No. 2 — Department Heads' Salary and Benefits Resolution Fiscal Year 2014-2015 Attachment No. 1 CITY OF WEST COVINA DEPARTMENT HEAD BENEFITS July 1, 2013 — June 30, 2014 ARTICLE ARTICLE ONE ARTICLE TWO ARTICLE THREE TABLE OF CONTENTS SUBJECT PAGE SALARIES AND COMPENSATION ............... 1 FRINGE BENEFITS .................................... 4 LEAVE POLICIES ...................................... 10 APPENDIX 1 SALARY SCHEDULE .................................. 26 ARTICLE ONE SALARIES AND COMPENSATION SALARY See Appendix A for the corresponding salary schedule. II. DEFERRED COMPENSATION A. The City shall contribute for each Department Head three hundred dollars ($300.00) per month to a deferred compensation plan. B. Department Heads.may select their preferred deferred compensation plan from a list of plans provided by the City. C. Department Heads may apply the City's contribution as they determine to medical, dental, or Life insurance premiums. D. Department Heads may take cash in lieu of depositing funds in deferred compensation. III. PERS BENEFIT PLANS A. 2.5% at age 55 (West Covina Employees Hired Prior to January 1, 2011) Department Heads classified as miscellaneous employees by PERS shall participate in the 2.5% at age 55 PERS retirement benefit plan. The City shall pay 100% of the PERS employer cost. Each employee shall pay the full employee cost of eight percent_(8%). Such contribution shall be made on a pre-tax basis. B. 2% at age 60 (Classic PERS Members) Department Heads classified as miscellaneous employees by PERS hired on or after January 1, 2011, shall participate in the 2% at age 60 PERS retirement benefit plan. The City shall pay 100% of the PERS employer cost. Each employee shall pay the full employee cost of seven percent (7%). Such contribution shall be made on a pre-tax basis. 1 C. 3% at age 50 (West Covina Employees Hired Prior to January 1, 2011) Department Heads classified as safety employees by PERS shall participate in the PERS 3% at age 50 PERS retirement benefit plan. The City shall pay 100% of the PERS employer cost. Each employee shall pay the full employee cost of nine percent (9%). Such contribution shall be made on a pre-tax basis. D. 3% at age 55 (Classic PERS Members) Department Heads classified as safety employees by PERS hired on or after January 1, 2011, shall participate in the 3% at age 55 PERS retirement benefit plan. The City shall pay 100% of the PERS employer cost. Each employee shall pay the full employee cost of nine percent (9%). Such contribution shall be made on a pre-tax basis. IV. PERS RETIREMENT BENEFITS The contract between the City and Public Employees' Retirement System (PERS) shall provide the following benefits. A. Unused Sick Leave Unused accumulated sick leave may be converted to additional service credit at the time of retirement pursuant to PERS Section 20862.8. B. One Year Final Compensation 1. Retirement benefits for Department Heads classified as miscellaneous employees shall be computed using the One -Year Final Compensation Option under PERS Section 20024.2. 2. Retirement benefits for all current Department Heads classified as safety employees shall be computed using the One -Year Final compensation Option under PERS Section 20024.2. 3. Retirement benefits for all Department Heads classified as safety employees hired on or after December 19, 2012, shall be based on an average of the highest three (3) years of compensation. C. 4th Level Survivor Benefits Fourth Level of 1959 Survivor Benefits PERS Section 21574 for Department Heads. 2 D. Military Buy Back Military service credit as public service credit under PERS section 21024. V. EPMC REPLACEMENT RETIREMENT PLAN A. The City will provide to those Miscellaneous Department Heads retiring from the City a supplemental retirement plan that will provide a benefit based on .70% of PERSable compensation. The age and years of service factors utilized by PERS will be multiplied by .70% of their single highest year PERSable compensation to determine this benefit value. This benefit will be paid annually in January of each year and will include a 2% cost of living adjustment each year during the life of the retiree. At the time of retirement, Miscellaneous Department Heads can make a one-time election to receive either the ongoing annual stipends or a lump sum payment based on the present value of those annual stipends. B. The City will provide to those Sworn Department Heads retiring from the City a supplemental retirement plan that will provide a benefit based on .89% of PERSable compensation to all Sworn Department Heads. The age and years of service factors utilized by PERS will be multiplied by .89% of their single highest year PERSable compensation to determine this benefit value. This benefit will be paid monthly and will include a 2% cost of living adjustment in January of each year during the life of the retiree. At the time of retirement, Sworn Department Heads can make a one-time election to receive either the ongoing monthly stipends or a lump sum payment based on the present value of those monthly stipends. C. This benefit will not be available to Department Heads appointed or promoted on or after January 1, 2013. 3 ARTICLE TWO FRINGE BENEFITS FRINGE BENEFITS ADMINISTRATION PROVISION A. ' Administration The City reserves the right to select, administer, or fund any fringe benefits programs involving insurance that now exist or may exist in the future. B. Selection and funding 1. In the administration of fringe benefits programs involving insurance, the City shall have the right to select any insurance carrier, self insure, or other method of providing coverage to fund the benefits provided, as long as the benefits of the plan are substantially the same. 2. The City may choose to exercise its right to select the insurance carrier and select Medicare as the City's Retirement Insurance Carrier for eligible Department Heads and retirees. In such case, the Department Heads and retirees who are eligible will be required to enroll in Medicare and continue to be eligible to participate in other City medical plans. II. CAFETERIA PLAN City contributions for Medical, Dental, and Vision Insurance will be provided as set forth below for all Department Heads. To comply with the Public Employees' Hospital and Medical Care Act (PEMCHA), the City will contribute the statutory minimum amount for the provision of medical insurance. In addition, the City will contribute an additional amount for current Department Heads into a cafeteria plan in accordance with IRS Code Section 125. These additional amounts will be as follows: A. Health Insurance 1. Any West Covina employee, hired before June 30, 2012, who does not participate in the City's health insurance plan and can demonstrate that he/she has health insurance coverage from another source will receive a City contribution of six hundred dollars ($600) per month. This amount may be received as cash, 4 0 contributed to the employee's deferred compensation plan or be used to purchase dental or vision insurance. 2. All employees hired on or after July 1, 2012, who do not participate in the City's health insurance plan and can demonstrate that he/she has health insurance coverage from another source will receive a City contribution of three hundred dollars ($300). This amount may be received as cash, contributed to the employee's deferred compensation plan or be used to purchase dental or vision insurance. 3. An employee who selects an Employee Only medical plan will receive a City contribution in an amount that when added to the PEMCHA statutory minimum amount equals the monthly Los Angeles Region Kaiser Employee Only medical premium or $600 whichever is greater. 4. An employee who selects an Employee plus One medical plan will receive a City contribution in an amount that when added to the PEMCHA statutory minimum amount equals the monthly Los Angeles Region Kaiser 2-party medical premium. 5. An employee who selects an Employee plus Two or More (Family) medical plan will receive a City contribution in an amount that when added to the PEMCHA statutory minimum amount equals the monthly Los Angeles Region Kaiser Family medical premium. 6. Should the monthly City contribution exceed the monthly medical premium amount, any excess amount can be received as cash, contributed to the employee's deferred compensation plan or be used to purchase dental or vision insurance. B. Dental Insurance In addition to the above amount for medical insurance, the cafeteria amount shall also include up to $53.28 monthly for dental insurance for the member and eligible dependents. If the dental insurance plan selected by the member is less than $53.28, the cafeteria amount shall be the cost of the dental insurance plan selected. If the dental insurance plan selected by the member is equal to or more than $53.28 per month, the cafeteria amount shall be $53.28. C. Vision Insurance In addition to the above amounts for medical and dental insurance, the cafeteria amount shall also include the employee only monthly cost for W vision insurance. Employees may enroll eligible dependents in the plan at the employee's cost. III. RETIREE HEALTH BENEFIT — CITY'S MONTHLY CONTRIBUTION A. City Contribution Amount— Miscellaneous Department Heads Provided that Miscellaneous Department Heads elect to participate in the Public Employees' Medical and Hospital Care Act (PERS Health Plan) following retirement from the City, the City shall contribute an amount equal to the PEMCHA statutory minimum towards the payment of premiums for retiree health insurance under the program. B. City Contribution Amount — Safety Department Heads (Police Chief and Fire Chief) The City shall pay a capped $1,004.80 per month per eligible retiree towards the payment of premiums for retiree health insurance. Safety Department Heads may elect to participate in the Public Employees' Medical and Hospital Care Act (PERS Health Plan). If a retired member should select an insurance carrier other than a carrier selected by the City, the City contribution shall be made to the employee upon submitting to the City proof of the selected insurance carrier's premium. It is understood that the contributions hereinabove set forth are due and payable to reduce the cost of retired members' health insurance premiums. IV. SUPPLEMENTAL RETIREMENT PLAN -MISCELLANEOUS DEPARTMENT HEADS Miscellaneous Department Heads shall receive a Supplemental Retirement Benefit in the amount of $807 per month upon retirement. This amount shall receive a cost -of -living adjustment effective on the anniversary date of commencement of the Retirement Benefit. Department Heads must have five years of service with the City, and retire from the City, to be eligible for the Supplemental Retirement Benefit. V. RETIREE DENTAL INSURANCE BENEFIT Department Heads that retire directly from City employment shall be allowed to participate in the City's employee dental insurance program based on employee monthly premium rates. The City shall not contribute to the monthly premium. 0 VI. SECTION 125 PLAN A. The City has established a program consistent with Section 125 of the IRS Code, which enables employees to voluntarily use pre-tax earnings for medical, dental, and dependent care expenses. B. It is understood by the parties that participation in the plan is voluntary for Department Heads and the City will not be obligated to contribute to pay any employee costs for those who participate in the plan. VII. LIFE INSURANCE A. Term Policy The City shall provide all Department Heads a term life insurance policy in the amount of $100,000 while employed and with a benefit of $10,000 following retirement directly from the City. Department Heads can voluntarily purchase additional life insurance from $10,000 to $500,000. The cost per $1,000 of coverage is based on age. Any additional life insurance over $100,000 will require a health screening, and will be at employee's or retiree's own expense. B. Accidental Death & Dismemberment (AD&D) The City currently provides a $100,000 AD&D insurance policy, while on duty. Employees can purchase additional AD&D benefits from $10,000 to $500,000. The cost per $1,000 of coverage is based on age. Any additional AD&D insurance over $100,000 will require a health screening, and will be at employee's own expense. Vill. LONG TERM DISABILITY INSURANCE The City shall provide for all Department Heads a long-term disability insurance (LTD) plan, which provides sixty percent (60%) of monthly earnings, to a maximum benefit of $5,000 per month. Benefits become payable on the later of: 1) 180 days; or 2) the date your accumulated leave time is exhausted. Coverage after 90 days may be purchased by the employee through payroll deduction and must be purchased within thirty (30) days of employment. 7 IX. TUITION REIMBURSEMENT PROGRAM A. Maximum Reimbursement Department Heads' maximum annual tuition reimbursement (including books) shall be one thousand and five hundred dollars ($1,500.00) per fiscal year subject to budget appropriations. B. Administrative Policy The specific details of the Tuition Reimbursement Program is set forth in Administrative Policy approved on August 13, 1992, and as amended thereafter. C. Reimburse City If Terminate Within Two Years 1. Any Department Head who received tuition reimbursement and terminates (excluding layoffs) within two (2) years after receiving reimbursement must pay back reimbursed monies to City at i termination. 2. Department Head reimbursement shall be based on pro -rated monthly basis over a 24-month period. X. CAR ALLOWANCE Department Heads are currently provided with a City car or the option of a three hundred dollar ($300) per month car allowance in lieu of having a City car. XI. MISUSE OF BENEFITS Department Heads who fraudulently gain or fraudulently attempt to gain for themselves or others by deception, omission, or fraud the benefits of the City's Workers' Compensation, retirement, medical, dental, or other insurance policies or any other benefit to which they would not otherwise be entitled shall be subject to: a) denial of requested benefits; and/or b) disciplinary action up to and including termination. I ARTICLE THREE LEAVE POLICIES I. HOLIDAYS A. Official Fixed Holidays 1. The City shall recognize the following days as official City fixed holidays. President's Day Memorial Day Independence Day Labor Day Thanksgiving Day 2. Fixed Holidays — Full Shift Leave With Pav Each fixed holiday granted to employees shall be a full shift of up to ten (10) hours of time off with pay. Any additional time taken off above ten hours per each fixed holiday must be deducted from the employee's other leaves, such as vacation, floating holiday leave, or compensatory time. 3. City Hall and most City departments will be permanently closed from Christmas Day through New Year's Day. The Christmas Day and New Year's Day holidays will be part of this closure and thus have been removed from the list of fixed holidays, with the exception of New Year's Day when it falls on a Sunday. In this case New Year's Day will be observed on the following Monday. Christmas Eve will only be recognized as a Holiday when it falls on a Monday through Thursday in any given year. 4. Each year employees will receive a separate bank of holiday hours that can only be used to cover their absence from work from December 25'h through January 1st. The amount of these separate holiday hours granted to each employee will be based on the employee's normal work hours on these days. The employee must be an active employee of the City of West Covina on the above dates to receive these holiday hours. 5. Any employee required to work between December 25th and January 15f on their normal work day(s) will receive compensatory 10 time off or holiday pay based on actual hours worked up to a maximum of forty (40) hours. 6. Holiday in -lieu pay shall be limited to a maximum of twenty (20) hours per fiscal year. Any holiday in -lieu time in excess of twenty (20) hours must be taken as compensatory time off. 11. Should the City eliminate the above compensated holiday closure from December 25'h through January 15', the following fixed holidays shall be recognized. New Year's Day Presidents' Day Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve (unless Christmas Sunday, or Monday) Christmas Day 12. Fixed Holidays — 10 Hours Leave With Pay falls on a Saturday, Each fixed holiday granted to Department Heads shall be ten (10) hours of time off with pay. B. Floating Holiday Leave I 1. In addition to the City's fixed holidays, Department Heads shall be eligible to use up to twenty-four (24) hours of Floating holiday leave per each calendar year as approved by the City Manager. 2. Floating holiday leave becomes usable January 1 of each calendar year and must be used by December 31 of the same calendar year. The hourly equivalent may not be paid in lieu of time off. 3. Floating holiday leave may not be accumulated and carried over into the next calendar year. Any unused floating holiday leave time remaining at the end of each calendar year, if any, shall be null and void unless approved by City Manager. 4. If a Department Head is unable to use Floating Holiday leave due to work urgency, industrial injury, extended medical leave, special j or pre -scheduled leave, the City Manager can authorize to carry i over unused holiday leave balance for a period not to exceed six (6) months per fiscal year. 10 5. New Department Heads are not eligible to receive and use floating holiday leave until they have been continuously employed with the City for a period of one (1) month. 6. New Department Heads appointed after the beginning of the calendar year are entitled to floating holiday leave at a rate of .923 hours per pay period of full-time employment. C. Floating Holiday Leave — Reinstated Department Heads Reinstated Department Heads shall receive floating holiday leave credit for all prior service in the current year in ascertaining the number of hours usable and when they may be used. D. Floating Holiday Leave — Terminating Department Heads 1. Terminating Department Heads who have not used all the floating holiday leave that they are entitled to shall be paid off at the rate of 1.54 hours per pay period of full time employment in the current calendar year. 2. If the terminating Department Heads have taken more floating holiday leave time than they are entitled to, the amount of time taken in excess shall be deducted from vacation, sick leave pay-off, or salary when final payroll checks are computed. E. Limitations on Holiday Leave A temporary Department Head, who is filling a full-time position, during the absence of a regular Department Head on a military leave of absence for military duty, shall be entitled to the same holidays as a regular Department Head. F. Status Eligibility Department Heads are eligible to receive holiday leave with pay only if they are in a "paid status" on the regularly scheduled workday or workday immediately preceding the holiday and the regularly scheduled workday or workday immediately following the holiday. "Paid status" includes vacation, sick leave, compensatory time, and injured on duty. G. Observation of Saturday and Sunday Holidays 1. For those Department Heads whose normal workweek is Monday through Thursday, when a holiday falls on a Sunday, the following Monday shall be deemed to be the holiday in lieu of the day observed. 2. When a holiday falls on a Friday, the preceding Thursday shall be deemed to be the holiday in lieu of the day observed. H. Holidays Occurring on Regular Scheduled Day Off For all other Department Heads, when a holiday falls on a regularly scheduled day off, the Department Head shall be entitled to ten (10) hours leave time for the holiday. This time can be taken as either ten (10) hours "holiday in lieu" leave time or pay, at straight time at the employee's hourly rate of pay, at the discretion of the Department Head. I. Holiday Scheduling The City reserves the right to require Department Heads to work on fixed holidays. II. VACATION A. . Vacation Policy It is the policy of the City that when possible, Department Head vacations be taken annually in the year earned. The time during the year at which a Department Head may take vacation shall be determined by the City Manager, with due regard for the wishes of the Department Head and particular regard for the service needs of the City. B. Vacation Leave Earned and Accumulated Eligible Department Heads shall earn and accumulate to a maximum vacation leave as follows: Months; of Service ,w ' Hours Accumulated , Per Pa y.`Period Hours,, Accumulated Per Month Maximum Accruals 1 — 12' 3.08 6.67 240 13 — 108 4.62 10.00 280 109 — 120 4.92 10.67 288 121 — 132 5.23 11.33 296 133 — 144 5.54 12.00 304 145 — 156 5.85 12.67 312 157 + 6.15 13.33 320 " At completion of 12 months add 40 hours 12 0 C. Limitation — Vacation Leave Accrual 1. Department Heads shall not be allowed to accrue vacation leave beyond the stated maximums. 2. No Department Head shall lose earned vacation leave because of work urgency as approved by management. Work urgency is defined as the department's need to have the Department Head at work to perform duty assignments for a specified period of time. 3. If a Department Head has reached the maximum allowed unused vacation leave balance, and is unable to take vacation leave due to work urgency, industrial injury, extended medical leave, special or pre -scheduled leave as authorized by management, the Human Resources Director will approve a waiver of the maximum allowed unused balance for a period not to exceed six (6) months per fiscal year. D. j Vacation Leave Accrual for Holidays When a fixed holiday falls within a scheduled vacation period, absence on that day shall be charged to holiday hours. An employee must be on paid status on the day before and after the holiday to be compensated for the holiday. E. , Payment for Unused Vacation Leave Time at Termination Any Department Head, who has been in continuous full-time service of the City for a period of six (6) full months or more, who is terminating his/her employment, shall be paid for accrued vacation leave time on the effective date of termination. F. Payment for Unused Vacation Upon request of the Department Head and with approval of the City Manager, in order to address unusual or emergency conditions, a Department Head may be paid the straight time daily equivalent of his/her salary in lieu of vacation time off. Such payment shall be for no more than forty (40) hours in any one calendar year, except as otherwise provided herein. G. Vacation Cash -Out 13 1. Department Heads with less than five (5) years City service, exempt or non-exempt, may receive payment in lieu of up to eighty (80) hours of accumulated vacation time in any one calendar year upon filing a written request with the Finance Department five days prior to requested date of issuance of the check, upon approval of the City Manager. 2. Department Heads with five (5) or more years of City service, exempt or non-exempt, may receive payment in lieu of up to 120 hours accumulated vacation time in any one calendar year upon filing a written request with the Finance Department five (5) days prior to requested date of issuance of the check, upon approval of the City Manager. H. � Vacation Leave — Reinstated/Reemployed Department Heads Any Department Head who is reinstated or reemployed under the provisions of these rules shall accrue vacation at the same rate as prior to his/her termination. I. Vacation Leave — New Department Heads 1. New Department Heads — Upon completion of six (6) consecutive months of full-time service, may be credited with one-half of the annual vacation leave and may begin using such accrual. Thereafter, Department Heads may use vacation as they complete each month of service. 2. Each Department Head shall be granted an additional forty (40) hours of vacation leave with pay, upon completion of one year of employment, at the employee's first anniversary date. Additional vacation, based on length of service, will accrue pursuant to these rules (see Article Five, Section II-B chart.) III. ADMINISTRATIVE LEAVE i A. Amount of Administrative Leave Department Heads will receive a maximum of one hundred (100) hours per year in administrative leave. In November of each year, Department Heads will also have the ability to cash- out or carry-over forty (40) hours to the following year. If a Department Head chooses to carry over forty (40) hours, they must be used within one year beginning in January to December of the following year. 14 E B. Additional Administrative Leave Department Heads will receive additional Administrative Leave, based on their annual vacation earnings. Such additional leave shall be calculated at the rate of twenty-five percent (25%) of the Department Head's annual earned vacation rate as of January 1 of each year. C. Administrative Leave Policy The specific details of the Administrative Leave Policy is set forth in Administrative Policy approved October 1, 1996, and as amended thereafter by the City Manager. IV. SICK LEAVE A. Sick Leave Benefit 1. Sick leave is a benefit and not a right and is to be utilized by Department Heads who are unable to work because of an injury or illness not arising out of the course of their employment, except as provided otherwise in this article. 2. The sick leave benefit should be thought of as an insurance policy; it insures and protects Department Heads from a loss in wages when they are unable to work because of an illness or injury. B. Sick Leave Earned 1. Department Heads shall accrue ninety-six (96) hours of sick leave per calendar year. 2. Following completion of thirty (30) calendar days of continuous full- time service, each Department Head shall accrue 3.69 hours per pay period of sick leave pay. Thereafter for each pay period of service in which the Department Head has worked or has been paid for one-half (1/2) or more of the actual number of working hours in a pay period, he/she shall continue to accrue hours of credit for sick leave with pay. 3. Sick leave may be used by new Department Heads following thirty (30) calendar days of employment. 4. Unused sick leave may be accumulated without limit. 15 C. Reinstatement of Sick Leave 1. Any Department Head who is reinstated to full-time City employment shall be given full credit for his/her unused accumulated sick leave at the time of termination, provided, however, that no payoff for accumulated sick leave was received upon termination. 2. Upon reemployment, a Department Head who has separated employment in good standing will have sick leave time reinstated in amount accumulated at the time of separation up to a maximum of 320 hours. In the event that through the course of continued employment accumulated sick leave exceeds 320 hours, payoff for such excess accumulations shall be in accordance with the payoff provisions of the program, but in no case shall the aggregate of such amount(s) exceed that provided by the policy. D. Sick Leave Annual Payoff Program The employee Sick Leave Annual Payoff Program shall be administered as follows: 1. By November of each calendar year, the City will determine the amount of unused sick leave for each regular Department Head. 2. The maximum amount of sick leave hours cashed each calendar year at the Department Head's hourly rate is forty (40) hours. 3. Each Department Head must carry over to a sick leave "bank" a minimum of fifty-six (56) current year unused hours in December, and may request cash payment for any hours above fifty-six (56) current year unused hours or may add it to the sick leave bank. 4. Sick leave used by a Department Head during each calendar year will be charged against the Department Head's current year earnings. 5. If fifty-six (56) hours per calendar year of unused sick leave are not available, the number of unused hours must be carried over to the sick leave bank. 6. To qualify for this program, Department Heads shall not be allowed to change sick leave to other forms of paid leave. 16 • E. Sick Leave Payoff Upon Termination Upon termination of over three years of full-time salaried City service, other than by discharge, shall be paid for one third (1/3) of all sick leave accrued to the time of such termination at current compensation to a maximum of 400 hours. F. Use of Sick Leave 1. Approval Department Head sick leave can only be granted upon the approval of the City Manager in the case of bona fide illness or injury of the Department Head or in the event of the care or attendance of serious illness or death of a member of the Department Head's immediate family. 2. Physician's Certificate on Use of Sick Leave The City Manager may require evidence in the form of a physician's certificate, or written statement, as to reason for any Department Head's absence of two (2) or more consecutive working days for which sick leave was requested. A failure to supply or provide said certificate or written statement shall be grounds for denial of sick leave pay and the imposition of such disciplinary action as may be deemed appropriate. 3. Physical Examination May be Required Any Department Head absent from work, due to illness or accident, may be required by the City Manager to submit to and successfully complete a physical examination before returning to active duty. The physical examination will be conducted by a physician of the City's choice, with all costs to be paid by the City. G. Use of Sick Leave — Care of Immediate Family 1. No more than forty-eight (48) hours of sick leave within any calendar year may be granted to a Department Head for the care or attendance upon members of his/her immediate family. 2. The phrase "immediate family," for the use of sick leave, is defined under Bereavement Leave of this Article Five, as spouse, parent, grandparent, brother, sister, child, stepchild, grandchild, and in- laws. 17 H. Temporary Disability 1. A Department Head who is entitled to temporary disability indemnity under Div. 4, Div. 4.5 of the State Labor Code may elect to take that number of days or portions of days of his/her accumulated sick leave, or his/her accumulated vacation, as when added to his/her disability indemnity will result in payment to him/her of his/her full salary. 2. When his/her accumulated sick leave, or vacation, or both are exhausted, he/she is still entitled to receive disability indemnity. Sick Leave Limitations No Department Head shall be entitled to sick leave with pay while absent from duty on account of the following causes. 1. Disability arising from sickness or injury purposely self-inflicted or caused by any of his/her own willful misconduct. 2. Sickness or disability sustained while on leave of absence, other than regular vacation leave or sick leave. 3. Disability or illness arising from compensated employment other than with the City of West Covina. J. Sick Leave During Vacation Sick leave shall not be used in lieu of or in addition to vacation leave. However, a Department Head who becomes seriously ill on an approved vacation may contact the City Manager and request that sick leave be granted in lieu of vacation for the period of illness. The City Manager has discretion in approving or disapproving such request. K. Holiday During Sick Leave Observed holidays occurring during sick leave shall not be deducted from Department Head's sick leave time. L. Use of Sick Leave to Offset Disability Retirement No Department Head shall use sick leave days to offset the date of disability retirement. The effective date of disability retirement shall be as soon as practicable after the City's physician has determined that the Department Head can no longer perform the duties of his/her or an alternate position. IR V. WORK RELATED DISABILITY LEAVE A. Injury/Illness Arising Out Of and In The Course of Job Duties Whenever Department Heads of the City are disabled, whether temporarily or permanently, by injury or illness arising out of and in the course of their duties, they shall be entitled, regardless of their period of service with the City, to leave of absence while so disabled, without loss of salary. Temporary disability compensation, if any, being considered as and credited to salary for this purpose — for the period of such disability, but not exceeding one (1) year, or until such earlier date as they are determined to be permanent and stationary and unable to return to their usual and customary duties. 1. The leave of absence hereby granted shall be in addition to, and shall not be charged to or deducted from, accumulated sick leave except as provided here. 2. Such leave, however, shall not be paid for more than three (3) days unless and until such Department Heads are determined by the City to be legally entitled to receive benefits under the Workers' Compensation Law of the State of California based upon such injury or illness. When and while applicable, this section shall supercede the provisions of the Grievance Procedure. B. Salary Increases During Leave Relative to Department Heads, (1) salary increases which would have come due during a disability leave shall take effect upon the day the employee returns to regular duties in accordance with existing rules; (2) holidays occurring during disability shall not be counted as disability leave days, but shall be considered as holidays for which time off has been utilized; and (3) vacation and sick leave benefits shall continue to accrue during periods of industrial disability leaves. C. Review of Safety Committee The first three (3) work days of absence of Department Heads due to a disability shall be charged to the Department Head's usable accumulation of sick leave or other time off benefits; provided, however, that the Safety Committee or its sub -committee, upon request of the Department Head, shall review the circumstances of the injury. If the Safety Committee rules that the Department Head had no possible opportunity to prevent or reduce the injury through any alternative action, disability time off charged to the employee's time off benefits may be restored. Such restorations 19 shall be limited to causes where no danger could have been anticipated or precautions and actions taken by the Department Head to prevent or reduce the injury. Appeal of Safety Committee determinations provided for in this section shall be made to the City Manager, whose decision shall be final. VI. BEREAVEMENT LEAVE Bereavement leave up to forty (40) hours per occurrence will be available to a Department Head in the event of the death of said Department Head's immediate family member, which is defined as a grandparent, parent, spouse, in-laws, child, stepchild, grandchild, brother, or sister. If additional bereavement leave is necessary, sick leave may be used as approved by the City Manager. Evidence of proof may be requested. VII. MILITARY LEAVE A. State Military and Veteran's Code Military leave with pay shall be granted in accordance with Section 395 of the State Military and Veteran's Code. B. Inactive Military Service 1. Any Department Head who is on inactive duty such as scheduled reserve drill periods, and who has been in the service of the public agency from which leave is taken for a period not less than one year immediately prior to the day on which the absence begins shall be entitled to receive his/her salary or compensation as such public employee for the first thirty (30) calendar days of any such absence. 2. Pay for such purposes shall not exceed thirty (30) days in any one year of public agency service, all service of said public employee in the recognized military service shall be counted as public agency service. 3. The City may grant a military leave of absence without pay for an indefinite period of time to any Department Head who is called into active military service even though the Department Head does not meet the one (1) year of continuous service requirements. 20 C. Active Military Service 1. Each full-time Department Head of the City who has been or is called to active military service with the Armed Forces of the United States in connection with the activation of the Military Reserves shall be entitled to military leave with full pay for the period of absence on military service in excess of the period covered by said Rule 10, Section 10.26. 2. The amount of pay each such Department Head shall be entitled to receive from the City for said additional period of military leave shall be the difference between the gross pay and allowances actually received by the officer or employee from the United States for such service and the gross wages that said Department Head would have received from the City Of West Covina if he or she had not been called to active military duty, subject to all necessary and appropriate deductions and withholdings. 3. The City shall also provide continued health and dental benefits to the Department Heads' dependents, provided that the dependents were covered for those benefits prior to the Department Head being called to active duty. Further, contributions to deferred compensation from the Medical and Dental Insurance benefit shall not be made during the time of activation. 4. The City shall not pay any wage or benefit provided for in this resolution until and unless the Department Head who requests such payment provides satisfactory proof and documentation of eligibility to receive payment in accordance with procedures established by the City Manager. Vill. JURY DUTY A. Jury Duty Policy No deductions shall be made from the salary of a Department Head while on jury duty if he/she has waived or remitted to the City the fee for jury duty paid for hours the Department Head is scheduled to work. If he/she has not so waived or remitted the jury fee, he/she shall be paid only for the time actually worked in his/her regular position. A Department Head accepted for jury duty shall immediately notify the City Manager in writing whether or not he/she waives or remits his/her jury fee to the City. 21 B. Jury Fees Returned to the City The City will grant a Department Head required to serve on jury duty, or to report for examination to serve on jury duty, one (1) time for a maximum of 160 hours, paid leave for such purposes during any three (3) consecutive years of employment. All fees received by the Department Head for jury duty, exclusive of mileage, shall be remitted to the City. City Administrative procedures will govern further details of this program. IX. FAMILY CARE LEAVE A. Birth or Adoption Leaves due to pregnancy or subsequent to the birth or adoption of a child for parental care purposes, will be granted for a reasonable period of time by the City Manager, provided such period, including paid leave and leave without pay, shall not exceed four months. Such leave shall not be conditioned on whether the Department Head is medically disabled but must be directly associated with the birth or adoption of a child. Only those Department Heads with at least one (1) year of continuous City employment shall be eligible. B. Family Illness Leaves due to serious health condition of a child, spouse or parent of a Department Head may be granted for a reasonable period of time by the City Manager, provided such period including paid and unpaid leave, shall not exceed twelve (12) weeks in any twelve (12) month period. Only those Department Heads with at least one year of continuous City employment shall be eligible. Certification from a health care provider that the Department Head's leave is necessary and the prospective length of such leave may be required upon request. Family care leave shall be administered in a manner consistent with Sections 12945, 12945.2 and 19702.3 of the California Government Code. California law shall prevail unless preempted by federal law. C. Use of Paid Leave 1. Paid benefit time such as vacation, personal leave days, compensatory time and administrative leave may be taken during any family leave period so long as the total time off does not exceed twelve (12) weeks. Such leave must be used prior to a Department Head taking leave without pay except during the disability period of a female employee, which is in conjunction with the birth of a child. Sick leave may only be used during the 22 disability period or as provided under Personnel Rules. All Department Heads on family care leave are entitled to return to the same or comparable position. 2. More specific details on'the Family Medical Leave Policy is set forth in the City's Administrative Policy on the subject (dated 1/3/94 & 4/6/94). X. SPECIAL LEAVE OF ABSENCE WITH PAY When a Department Head has exhausted all sick leave and vacation time to which he/she is entitled, the City Council may, upon showing of good cause and justifiable and deserving circumstances, grant to such Department Head a leave of absence with pay for a period not exceeding six months and subject to such conditions as the City Council may deem advisable. If temporary disability payments are paid to such Department Head during any such leave of absence with pay, they shall be credited to and considered a part of his/her salary, and the City shall pay only the difference which when added thereto would equal his/her full salary. The aggregate of all such leave shall not be more than one year. XI. LEAVES OF ABSENCE WITHOUT PAY A. Unauthorized Absence — Automatic Termination Any Department Head absent from his/her job for more than two (2) working days without prior permission of the City Manager, shall be considered to have automatically terminated his/her employment with the City, unless such leave is extended as approved by the City Manager for mitigating circumstances. B. Unauthorized Absence — Other Disciplinary Action Any unauthorized absence may be cause for disciplinary action. C. Authorized Absence 1. Upon the request of the Department Head, a leave of absence without pay may be granted by the Council or City Manager to a Department Head, who immediately preceding the effective date of such leave, shall have completed at least one year of continuous service. 2. A Department Head shall not be entitled to a leave of absence as a matter of right, but only upon good and sufficient reason. 23 D. Leave of Absence Without Pay - Duration 1. Request for leave of absence without pay shall be submitted to the City Manager, and shall state specifically the reasons for the request, the date when leave is desired to begin, and the probable date of return to work. 2. The City Manager may approve the request of leave of absence without pay, of one hundred twenty (120) calendar days or less. 3. The City Manager may approve requests of more than one hundred twenty (120) calendar days, not to exceed one (1) full year. 4. The City Manager may later, due to mitigating circumstances, extend such leave of absence without pay for one (1) additional full year. 5. A physician statement shall be required of any Department Head who requests leave of absence without pay as a result of medical conditions. E. Leave of Absence — Employee Injured on Job The City Council may grant a leave of absence without pay for an indefinite period of time to any Department Head who is injured on the job, or has a serious illness even though the Department Head does not meet the one-year of continuous service requirements. F. Accrual of Benefits Leave of absence without pay granted by the City shall not be construed as a break in service of employment, and rights accrued at the time leave is granted shall be retained by the Department Head; however, vacation credits, sick leave credits, increases in salary and other similar benefits shall not accrue to a person granted such leave during the period of absence. A Department Head reinstated after leave of absence without pay shall receive the same step in the salary range he/she received when he/she began his/her leave of absence. Time spent on such leave without pay shall not count toward service for increases within the salary range, and the Department Head's salary anniversary date shall be set forward one month for each thirty (30) consecutive days taken. 24 E XII. FAILURE TO RETURN FROM LEAVE A. Failure of the Department Head to return to his/her employment upon the termination of any authorized leave of absence shall constitute an automatic termination from City service of that Department Head, unless such leave is extended as approved by management for mitigating circumstances. B. The City reserves the right to revoke or cancel any authorized leave for reasons, which the City finds to be sufficient. PAM Appendix 1 CITY OF WEST COVINA EXECUTIVE MANAGEMENT CLASSIFICATIONS AND SALARY RANGES July 1, 2014 Salary Range Classification Pay Ranee Beginning Tom Assistant City Clerk DH310 $ 83,520 $ 112,740 $ 6,960 $ 9,395 Assistant City Manager DH250 $ 122,688 $ 165,588 $ 10,224 $ 13,799 Assistant City Manager/CDC Director DH251 $ 138,996 $ 187,644 $ 11,583 $ 15,637 Community Development Director CE105 $ 116,412 $ 157,176 $ 9,701 $ 13,098 Communications Director DH066 $ 83,040 $ 112,080 $ 6,920 $ 9,340 Community Services Director DH020 $ 101,424 $ 136,932 $ 8,452 $ 11,411 Deputy City Manager DH260 $ 90,660 $ 122,400 $ 7,555 $ 10,200 Environmental Management Director DH210 $ 86,484 $ 116,760 $ 7,207 $ 9,730 Finance Director DH040 $ 110,652 $ 149,388 $ 9,221 $ 12,449 Fire Chief DH180 $ 139,152 $ 175,332 $ 11,596 $ 14,611 Human Resources Director DH070 $ 99,036 $ 133,716 $ 8,253 $ 11,143 Finance & Admin. Services Director DH041 $ 129,048 $ 174,216 $ 10,754 $ 14,518 26 • Planning Director Police Chief Public Works Director/City Engineer Risk Management Director *Salaries effective July 1, 2013 DH090 $ 92,460 $ 124,824 $ 7,705 $ 10,402 DH075 $ 151,188 $ 190,500 $ 12,599 $ 15,875 DH060 $ 119,436 $ 161,256 $ 9,953 $ 13,438 DH380 $ 80,016 $ 108,048 $ 6,668 $ 9,004 • - • Attachment No. 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING COMPENSATION AND BENEFITS FOR WEST COVINA DEPARTMENT HEADS WHEREAS, the City of West Covina has met and conferred with representatives for the Department Heads; and WHEREAS, the City of West Covina and the Department Heads have agreed upon certain changes to the benefits and terms and conditions of employment in an agreed upon as outlined in this resolution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Term: One (1) Year Agreement from July 1, 2014 through June 30, 2015. SECTION 2. Previous Agreement: All provisions from the previous agreement shall rollover, other than the items outlined below. SECTION 3. Floating Holidays: Increase floating holidays from 24 hours to 40 hours. SECTION 4. Dental Benefits: Increase dental benefit from $53.28 per month to $62.23 per month. SECTION 5. Maximum Vacation Bank Caps: Increase Department Heads vacation bank caps to: Years of Service Hours of Vacation a Year (Current) Maximum Vacation Bank Cap (Proposed) Maximum Vacation Bank Cap Less than 1 80 240 300 1-9 120 280 350 10 128 288 360 11 136 296 370 12 144 304 380 13 152 312 390 Over 13 Years 1 160 320 400 SECTION 6. Annual Administrative Leave Cash Out/Rollover: Department Heads are allowed to cash out to up to fifty (50) hours of Administrative Leave per year and the ability to rollover up to fifty (50) hours of Administrative Leave per year. There is no deadline on the use of these hours, but a maximum cap of one hundred (100) hours of rollover hours will be established. Administrative leave that is rolled over will be put into a separate leave account and will not be eligible for cash out the following year or upon separation from the City. SECTION 7. Vacation Leave Earned: The City Manager is authorized to negotiate the vacation accrual rate for new Department Heads up to 160 maximum hours, based on the number of years of public service at any municipality and not based on the years of service with the City of West Covina. SECTION 8. Salary Survey: City of West Covina to conduct a salary survey as part of the upcoming budget discussion for Fiscal Year 2015-2016. The results of the survey are not binding to the City for inclusion in the next budget. • • SECTION 9. One -Time Cash Out: Employees may cash out up to 50 hours of sick leave/vacation time from their sick leave and or vacation bank in addition to any existing cash -out options. SECTION 10. Acting Pay Assignment: Acting pay is intended to compensate those employees assigned to perform a significant portion of a higher level position having a greater degree of responsibility and independence and/or requiring a significantly higher level of expertise. Those Department Heads that are serving in an acting capacity of a Department, in addition to their own Department may receiving acting compensation at a rate of five percent (5%) above their base salary after the completion of the thirtieth (30111) calendar day of such appointment until the completion of the appointment, provided such appointment is approved by the City Council. Such acting appointment shall not exceed twelve (12) months, unless extension is approved by the City Council. SECTION 11. That the Mayor is authorized to sign and the City Clerk shall certify to the adoption of this resolution and thereafter the same shall be in full force and effect. PASSED, APPROVED AND ADOPTED this 20`h day of January, 2015. ATTEST: Nickolas S. Lewis City Clerk Fredrick Sykes Mayor I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of West Covina at a regular meeting thereof held on January 20, 2015 by the following vote of the Council: AYES: NOES: ABSTAIN: ABSENT: Nickolas S. Lewis City Clerk APPROVED AS TO FORM: Kimberly Hall Barlow City Attorney