HomeMy WebLinkAboutStaff Report 3.F 03/07/2016DATE: March 7, 2016
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Mana
Agenda Item #3.F
SUBJECT: Resolution Establishing the Compensation Plan for Employees in Unit 8
(Department Directors and Assistant City Attorneys)
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution establishing the
Compensation Plan for Employees in Unit 8 (Department Directors and Assistant City
Attorneys).
BACKGROUND
Employees in Unit 8 are not represented by a recognized employee organization. Unit 8 consists
of the department heads and the two Assistant City Attorneys. The individuals in this unit all
serve in at -will positions at the pleasure of the City Manager, and are compensated pursuant to
the Compensation Plan for the Unit, which is approved by the City Council. The City Attorney,
the City Clerk, and the City Manager are not members of Unit 8 and are compensated instead
under the terms of their employment agreements with the City Council. The Unit 8
Compensation Plan expired in June 2014.
The last compensation adjustment for this group was approved by the City Council in 2007.
Members have not received a cost of living adjustment since 2007, and have not received a merit
adjustment since 2008. Merit adjustments, which replace the step adjustments available to other
regular employees, can be granted to Unit 8 members by the City Manager on the basis of
performance. Merit adjustments were frozen during the Recession as a cost savings measure.
Each member of this group assumed their position during this freeze, has performed well since,
and would have received merit adjustments but for the freeze. The value of the attendant savings
has been as much as $144,000.
Compensation adjustments were recently granted to the City's Police Association, (PORP)
Public Safety Mid-level Managers (PPSMMA), AFSCME-represented employees, and
Professional and Mid-level Managers' Association (PPMMA). Bargaining is still open, and
ongoing, with the Petaluma Firefighter's Association. Consistent with the guiding principles for
bargaining approved by the City Council, each group was requested to provide some form of
economic contribution to help offset the cost of an increase. In addition to granting increases
that can be sustained from existing sources and reasonable revenue projections, and asking
employees to help offset the cost of their increase, the City Council has taken into consideration
how each group's compensation compares to that of comparator cities. Compensation for the
respective Unit 8 members falls below the averages for their comparators. Disparities range
from a low of 7.12 percent below average, to a high of 22.47 percent below average.
DISCUSSION
The recommended Compensation Plan for Unit 8 follows the same pattern as other bargaining
units with respect to base wage increase and offsets. Unit 8 has requested a four percent (4%)
increase to its base wage, for the one-year period from March 14, 2016, through March 13, 2017.
The cost of this increase is estimated, for the one-year period, at $74,000. The Unit will seek
updates to the compensation plan prior to March, 2017.
Like the agreements reached with the PPMMA, POAP, and PPSMMA, Unit 8 has also requested
an increase of the dental benefit from $1,500 per year to $2,000 per year. This is estimated to
cost $180 for the one-year period.
Unit 8 has, like the PORP, the PPMMA, and the PPSMMA, agreed to limit the City's cost
exposure by providing budget savings to help offset the cost of the four percent base wage
increase. Like the PPSMMA, Unit 8 has agreed to reduce Administrative Leave Cash -out for
Unit members to a maximum of 20 hours, down from 40. The value of these reductions is
estimated at $11,470.
In 2015, Unit 8 also voluntarily agreed to cap the City's obligation for their medical insurance at
January 2014 levels. One-year cost savings associated with this action are estimated at $14,700.
As noted in the Background, Unit 8 members have also foregone as much as $144,000 in merit
increases, since the last wage increase was approved by the Council, and was the only group to
forego salary step advancements during the period. The City utilized these savings during the
economic downturn. Merit adjustments will be re -instituted in 2016 with the performance
evaluations that are conducted for members of this group.
In summary, the recommended changes to the Unit 8 Compensation Plan are as follows:
Wages
• No adjustments are granted for the period between July 1, 2014 and March 13,
2016.
• All Unit 8 employees will receive a 4% base wage increase effective the first full
pay period following Council ratification.
Benefits
• Dental benefits will increase from $1,500 to $2,000 each calendar year, effective
immediately.
• The City's contribution to health premiums for employees and their covered
family members is capped at the contribution levels established effective
January 1, 2014.
A
• Administrative Leave Cash -out is reduced from 40 hours to a maximum of 20
hours.
FINANCIAL IMPACTS
The General Fund cost for the four percent increase through March 13, 2017 is estimated at
$74,000. The estimated cost of the higher dental benefit is $180 per year.
Two offsets currently reduce the impact to the General Fund.
1. The value of the Administrative Leave Cash -out reduction is estimated at $11,500.
2. In the long-term financial forecast, the City has assumed a 9% increase in City cost each
year for City contribution to medical premium. Therefore, the medical benefit cap on
costs as of January 1, 2014, results in a forecasted budget savings of $14,700.
The net General Fund cost of the proposed Compensation Plan for the one year period is
$47,980.
ATTACHMENTS
1. Resolution
2. Exhibit A, Unit 8 Compensation Plan
ATTACHNMNT 1
RESOLUTION NO. 2016 -XXX N.C.S.
OF THE CITY OF PETALUMA, CALIFORNIA
RESOLUTION ESTABLISHING THE COMPENSATION PLAN FOR EMPLOYEES
IN UNIT 8 (DEPARTMENT DIRECTORS AND ASSISTANT CITY ATTORNEYS)
WHEREAS, the employees of Unit 8 are not represented by any recognized employee
organization; and
WHEREAS, the City Manager, pursuant to Section 28, City of Petaluma City Charter, is
required and empowered to make a recommendation to the City Council on matters related to
employee compensation; and
WHEREAS, the City Manager has reviewed and concurs with the proposed July 1, 2014
through March 13, 2017 Compensation Plan for Department Directors in Unit 8 and does
recommend the City Council ratify said Compensation Plan; and
NOW, THEREFORE, BE IT RESOLVED that the Compensation Plan for Department
Directors in Unit 8, being in the best interests of the City, and incorporated herein as Exhibit A,
is ratified and the terms and conditions of said Compensation Plan shall be effective July 1, 2014
through March 13, 2017.
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EXHIBIT A
-M •
UNIT 8
COMPENSATION PLAN
DEPARTMENT DIRECTORS
FISCAL YEAR July 1, 2014 — March 13, 2017
SectionProvision
Page
SECTION 1— TERM OF COMPENSATION PLAN
1
SECTION 2 — SALARIES
1
2.1 Salaries
1
2.3 Salaries - Emergency Operation Center
1
SECTION 3 — SPECIAL COMPENSATION — UNIFORM ALLOWANCE
1
SECTION 4 — HOLIDAYS
1
4.1 Holidays — Fixed Holidays
1
4.2 Holidays — Floating Holidays
2
SECTION 5 — VACATION
2
5.1 Vacation — Accrual Rate and Maximum Accrual Limits
2
5.2 Vacation — Scheduling
2
5.3 Vacation — Adjustment for Holidays
3
5.4 Vacation — Payment at Separation
3
SECTION 6 — LEAVES — ADMINISTRATIVE LEAVE
3
6.1 Administrative Leave - Annual Credit of Leave
3
6.2 Administrative Leave - Carry Forward of Leave
3
6.3 Administrative Leave - Pro -Ration of Leave Hours
3
6.4 Administrative Leave - Annual Payment for Unused Leave
3
6.5 Administrative Leave - Payment at Separation
3
SECTION 7 — LEAVES — SICK LEAVE
3
7.1 Sick Leave — Eligibility
3
7.2 Sick Leave — Accrual
3
7.3 Sick Leave — Transfer
4
7.4 Sick Leave — Retirement Payout
4
SECTION 8 — LEAVES — INDUSTRIAL INJURY LEAVE
4
SECTION 9 — LEAVES — BEREAVEMENT LEAVE
5
SECTION 10 — LEAVES — VICTIMS OF DOMESTIC VIOLENCE
5
AND SEXUAL ASSAULT LEAVE
SECTION 11— LEAVES — MILITARY LEAVE
5
SECTION 12 — LEAVES — ELECTION OFFICER LEAVE AND
5
VOTING LEAVE
SECTION 13 — LEAVES — SCHOOL VISITATION LEAVE
5
SECTION 14 — LEAVES — LEAVE OF ABSENCE WITHOUT PAY
6
SECTION 15 — LEAVES — JURY DUTY LEAVE
6
SectionProvision
Page
SECTION 16 — FAMILY CARE AND MEDICAL LEAVE (FMLA & CFRA)
6
16.1 FMLA and/or CFRA Leave
6
16.2 FMLA and/or CFRA — Second Opinion
6
SECTION 17 — LEAVES — PREGNANCY DISABILITY LEAVE
6
SECTION 18 — DISCRIMINATION, HARASSMENT, AND RETALIATION
PROHIBITED
6
SECTION 19 — REASONABLE ACCOMMODATION
7
SECTION 20 — CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
7
SECTION 21— HEALTH BENEFITS — ACTIVE EMPLOYEES
8
21.1 Active Employees —PEMHCA Contribution
8
21.2 Additional Contribution
9
21.3 Employee Contribution
9
SECTION 22 — HEALTH BENEFITS — RETIRED EMPLOYEES
9
22.1 Retired Employees — Ca1PERS and PEMHCA
9
22.2 "Unequal Contribution" Method for Health Care Premium Payments for Retirees
9
22.3 Ca1PERS Annuitant — PEMHCA Health Benefits
10
22.4 Less Than 12 Years of Service — Not Receiving PEMHCA Health Benefits
10
22.5 Less Than 12 Years of Service — Receiving PEMHCA Health Benefits
10
22.6 12-19 Years of Service — Not Receiving PEMHCA Health Benefits
11
22.7 12-19 Years of Service — Receiving PEMHCA Health Benefits
11
22.8 20 Years or More of Service — Not Receiving PEMHCA Health Benefits
11
22.9 20 Years or More of Service — Receiving PEMHCA Health Benefits
11
SECTION 23 — CASH IN -LIEU OF HEALTH AND DENTAL BENEFITS
12
SECTION 24 — SECTION 125 PLAN
12
SECTION 25 — DENTAL INSURANCE
13
SECTION 26 — VISION INSURANCE
13
SECTION 27 — LIFE INSURANCE
13
SECTION 28 — EMPLOYEE ASSISTANCE PROGRAM
13
SECTION 29 — DISABILITY INSURANCE
14
SECTION 30 — DEFERRED COMPENSATION
14
30.1 Deferred Compensation Plan — 457 Plan
14
30.2 Deferred Compensation Plan— Discretionary Plan - 401 (A)
14
EXHIBIT A SALARY TABLE
15
SECTION 1- TERM OF COMPENSATION PLAN
This Compensation Plan shall be effective commencing July 1, 2014 and ending March 13,
2017.
SECTION 2 - SALARIES
2.1 Salaries
Salary Ranges shall be as specified in Exhibit "A" for each classification.
2.2 Salaries — Emergency peration Center
Employees of Unit 8 who are required to work when called to an activated Emergency
Operation Center (EOC) local emergency shall be paid at their regular hourly rate for all
hours beyond their normal workday.
SECTION 3 — SPECIAL COMPENSATION — UNIFORM ALLOWANCE
The classifications of Police Chief and Fire Chief shall receive three -hundred dollars ($300.00)
per year as a Uniform Allowance. This amount shall be paid in December.
SECTION 4 - HOLIDAYS
4.1 Holidays — Fixed Holidays
The City shall observe twelve (12) fixed -date holidays. These holidays shall be
established for the City's fiscal year as determined by City Council resolution. The
holidays for the period of July 1, 2014 through March 13, 2017 are as follows:
Independence Day
Labor Day
Columbus Day
Veterans' Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve
Christmas Day
New Year's Day
Martin Luther King Day
Presidents' Day
Memorial Day
When a holiday falls on a Saturday, that holiday will be observed on the prior Friday.
When a holiday falls on a Sunday, that holiday will be observed on the following
Monday. Should this conflict with a Friday or Monday designated holiday, the Friday or
Monday holiday will occur on the preceding Thursday or following Tuesday.
Observance by an employee of a designated religious event may be granted, if practical,
with at least seven (7) days prior approval required for such leave, under the following
methods:
(A) Time charged to accrued vacation allowance; or
(B) Time off without pay.
4.2 Holidays — Floating Holidays
During the Fiscal Year the City will authorize one (1) "Floating Holiday" per employee,
which may be taken by the employee at a time selected by the employee, subject to
operational requirements and approval determined by the City. Employees hired between
July 1, and December 31 will be eligible for a "Floating Holiday" during the course of the
Fiscal Year.
SECTION 5 - VACATION
Years of
Unit 8 Service
Vacation
Accrual (hrs)
Accrual Limit
(hrs)
0-4
80
240
5-9
120
360
10
128
384
11
136
408
12
144
432
13
152
456
14
160
480
15
168
504
16
176
528
17
184
552
18
192
576
19 or greater
200
600
5.1 Vacation — Accrual Rate and Maximum Accrual Limits
Employees shall accrue vacation hours at the rate specified in the above table. The City
Manager may at his/her discretion set an annual vacation accrual rate for an employee
above the accrual rate in the table in section 5.
Vacation time shall not be accumulated in excess of three (3) years or three times an
employee's annual vacation accrual as indicated in the vacation chart above.
5.2 Vacation — Scheduling
The times during a calendar year in which an employee may take his/her vacation shall
be determined by the City Manager with due respect for the wishes of the employee and
particular regard for the needs of the service. If the requirements of the service are such
that an employee cannot take part or all of his/her annual vacation in a particular calendar
year, such vacation shall be taken during the following calendar year.
5.3 Vacation - Adjustment for Holidays
Employees who are granted time off for scheduled holidays shall not have such holidays
charged as vacation leave when the vacation leave and holiday(s) coincide.
5.4 Vacation — Payment at Separation
Employees who separate City employment shall be paid for all accrued unused vacation
leave earned prior to the effective date of separation.
SECTION 6 — LEAVES — ADMINISTRATIVE LEAVE
6.1 Administrative Leave — Annual Credit of Leave
Employees shall be credited with eighty (80) hours of administrative leave each fiscal
year.
6.2 Administrative Leave — Carry Forward of Leave
Employees may carry forward up to forty (40) hours of unused administrative leave into
the next fiscal year. Employees shall not maintain balances of more than one hundred
and twenty (120) hours.
6.3 Administrative Leave - Pro -Ration of Leave Hours
Employees hired or appointed after July 1 shall be credited with a pro -rated amount of
administrative leave based upon hire or appointment date through June 30.
6.4 Administrative Leave — Annual Payment for Unused Leave
Employees shall receive payment for up to twenty (20) hours of unused administrative
leave at the end of the fiscal year. Payment shall be at the employee's base pay rate as of
June 30. Payment shall be made on the last pay period of the fiscal year.
6.5 Administrative Leave - Payment at Separation
Employees who separate employment shall receive payment of up to forty (40) hours of
unused administrative leave. Payment shall be at the base pay rate at the time of
separation.
SECTION 7 — LEAVES — SICK LEAVE
7.1 Sick Leave — Eligibility
Sick leave with pay shall be granted to all employees as set forth in this section. Sick
leave is not a right, which an employee may use at his discretion, but rather, shall be used
only in case of personal illness, disability or the serious illness or injury of an employee's
family member, which requires the employee's attention. The term family members shall
include: spouse, children, parents, spouse's parents, brothers, sisters or other individuals
whose relationship to the employee is that of a dependent or near dependent.
7.2 Sick Leave — Accrual
Sick leave shall accrue to all full-time employees at the rate of eight (8) hours for each
month of continuous service. No employee shall accumulate more sick leave in any year
than provided
7.3 Sick Leave — Transfer
Employees wishing to donate hours of sick leave to another employee may do so by
sending a written request, approved by his/her department director, to the Human
Resources office naming the individual to receive the sick leave and the amount donated,
with the following restrictions:
(A) Employees who wish to transfer sick leave must retain a minimum of 160 hours
of sick leave to be eligible to transfer sick leave.
(B) Transfer amounts shall be limited to the number of actual hours needed and used
by the receiving employee.
(C) Any donated sick leave hours unused by recipient shall be returned to the donor.
The employee receiving the sick leave transfer must have zero (0) hours of
accrued sick leave, vacation, and CTA leave on the books.
(D) Employees may not buy or sell sick leave. Only the time may be transferred.
(E) Employees may not transfer sick leave upon separation of service.
(F) Transfer of sick leave shall be allowed between all Units.
(G) No more than ninety (90) workdays of sick leave may be received by an employee
for any one illness or injury.
7.4 Sick Leave — Retirement P
In the event of the death or retirement of an employee who has completed ten (10) or
more years of continuous service with the City, the employee shall be paid or shall
receive to his/her benefit fifty percent (50%) of his accumulated but unused sick leave not
to exceed four -hundred -eighty (480) hours. The employee may elect not to receive this
benefit and instead place all sick leave hours into the Ca1PERS sick leave conversion
benefit.
SECTION 8 — LEAVES — INDUSTRIAL INJURY LEAVE
Benefits shall be payable in situations where miscellaneous employee absence is due to industrial
injury as provided in California State Workers' Compensation Law. During the first three (3)
workdays when the employee's absence has been occasioned by injury suffered during his/her
employment and he/she receives workers' compensation, he/she shall receive full pay. Following
this period, sick leave may be a supplement to the workers' benefits provided the employee.
Compensation is at his/her regular rate for a period not to exceed six (6) months, or until such
sick leave is exhausted, or the disability is abrogated, or that employee is certified "permanent
and stationary" by a competent medical authority. The City shall pay him/her the regular salary,
based on the combination of the workers' compensation benefit plus sick leave.
All public safety employees receiving full salaries in lieu of temporary disability payments
pursuant to Section 4850 of the labor code are entitled to accumulate sick leave during such
periods of sick leave. Sick leave for industrial injury shall not be allowed for a disability
resulting from sickness, self-inflicted injury, or willful misconduct.
The City may retire any employee prior to the exhaustion of accumulated sick leave, at which
time all accrued but unused sick leave shall be abrogated, subject only to the limitations provided
under this Compensation Plan.
SECTION 9 — LEAVES — BEREAVEMENT LEAVE
An employee shall be granted up to thirty-two (32) hours of bereavement leave in the event of
death in the employee's immediate family. For the purpose of bereavement leave, immediate
family shall mean spouse, qualified domestic partner, father, father-in-law, mother, mother-in-
law, brother, brother-in-law, sister, sister-in-law, child (including stepchildren), step-parents,
grandparents and grandchildren or person with whom the employee has a relationship in loco
parentis. Up to an additional eight (8) hours of accrued sick leave may be granted to supplement
bereavement leave.
In the event an employee must travel more than three -hundred (300) miles to attend a funeral or
memorial service, an additional eight (8) hours of bereavement leave shall be granted instead of
the use of eight (8) hours of sick leave.
SECTION 10 — LEAVES — VICTIMS OF DOMESTIC VIOLENCE AND
SEXUAL ASSAULT LEAVE
The City of Petaluma provides appropriate leave, in accordance with California Labor Code
Section 230.
SECTION 11— LEAVES — MILITARY LEAVE
The City of Petaluma shall grant military leave benefits to eligible employees in accordance with
California's Military Leave Laws found in Military & Veteran's Code 389 et seq., the Federal
Uniformed Services Employment and Re-employment Rights Act (USERRA), found at 389
U.S.C. 4301 et seq., and the City of Petaluma Resolution No. 2004-200 N.C.S. Employees in the
Ready Reserves of the Armed Forces who are ordered to active military duty or training under
Executive Order 13223, shall have continued benefits in effect throughout his/her active duty
training for a period of three -hundred sixty-five (365) calendar days or until the date of discharge
from military service, whichever occurs first, unless this policy is changed by action of the City
Council.
SECTION 12 — LEAVES — ELECTION OFFICER LEAVE AND VOTING LEAVE
When an employee's actual work schedule otherwise would prevent the employee from voting in
any State, County, or General election, the employee may be granted up to two (2) hours of paid
time to vote, in accordance with Election Code 14000. The employee must provide the City with
at least two (2) working days' notice that he or she will be taking time off to vote.
SECTION 13 — LEAVES — SCHOOL VISITATION LEAVE
Employees may take up to forty (40) hours in a year to participate in the child's school activities,
in accordance with Labor Code section 230.8.
SECTION 14 — LEAVES — LEAVE OF ABSENCE WITHOUT PAY
The City Manager may grant a regular or probationary employee leave of absence without pay
pursuant to State and Federal Law. Good cause being shown by a written request, the City
Manager may extend such leave of absence without pay or seniority or benefits for an additional
period not to exceed six (6) months. No such leave shall be granted except upon written request
of the employee setting forth the reason for the request, and the approval will be in writing. Upon
expiration of a regularly approved leave or within a reasonable period of time after notice to
return to duty, the employee shall be reinstated in the position held at the time leave was granted.
Failure on the part of an employee on leave to report promptly at its expiration, or within a
reasonable time after notice to return to duty shall be cause for discharge.
SECTION 15 — LEAVES — JURY DUTY LEAVE
Any employee summoned for jury duty shall be entitled to a leave of absence with full pay for
such period of time as may be required to attend the court in response to such summons. Any
employee may retain payment for travel but shall make payable to the City any and all fees
which the employee may receive in payment for service as a juror. For Grand Juries this
compensation shall not extend beyond twenty (20) working days.
SECTION 16 - FAMILY CARE AND MEDICAL LEAVE (FMLA & CFRA)
16.1 FMLA and/or CFRA Leave
The City shall provide family and medical care leave for eligible employees as required
by City policy, state and federal law and as specifically provided in the Federal Family
and Medical Leave Act of 1993 (FMLA) and the California Family Rights Act of 1993
(CFRA). If possible, employees must provide thirty (30) days advance notice of leave.
16.2 FMLA and/or CFRA — Second Opinion
The employee shall provide the City with a health care provider certification. The City,
at City expense, may require a second opinion on the validity of the certification. Should
a conflict arise between health providers, a third and binding opinion, at City expense
shall be sought.
SECTION 17 — LEAVES — PREGNANCY DISABILITY LEAVE
The City shall provide pregnancy disability leave (PDL) for eligible employees as required by
City policy and applicable law and as specifically provided in the Fair Employment and Housing
Act and the Family Medical Leave Act. If possible, employees must provide thirty (30) days
advance notice of leave.
SECTION 18 - DISCRIMINATION, HARASSMENT, & RETALIATION PROHIBITED
The City and its employees are prohibited from discriminating against an applicant or employee
because the employee is in a "protected class" (based on age, race, etc.) in taking any personnel
actions (such as hiring, promotion, discipline, etc.) Employees are prohibited from harassing
any employees due to race,
sex, age, etc. The City and its employees are prohibited from retaliating against an employee
because the employee has filed a complaint of discrimination or harassment or opposed actions
by other employees that constituted discrimination or harassment.
SECTION 19 - REASONABLE ACCOMMODATION
In accordance with the California Fair Employment and House Act (FEHA) and the Americans
with Disability Act (ADA), the City will reasonably accommodate any know protected disability
of an employee.
SECTION 20 — CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
The City will establish a different level of benefits (two-tiered retirement) for newly hired Safety
— Police, Safety - Fire and Miscellaneous employees. Effective upon agreement with the City's
other Miscellaneous or Safety bargaining units, the City shall amend its contract with Ca1PERS.
The amended contract shall provide that Safety — Police employees hired after the effective date
of the amendment shall receive the 3% at 55 formula retirement plan and the three-year final
average compensation; instead of the current benefit of 3% at 50 formula retirement plan and
one-year final average compensation. The amended contract shall provide that Safety — Fire
employees hired after the effective date of the amendment shall receive the 3% at 55 formula
retirement plan, no Post Retirement Survival Allowance — 50% as provided by Sections
21624/26/28, and the three-year final average compensation; instead of the current benefit of 3%
at 50 formula retirement plan, Post Retirement Survival Allowance -50% as provided by Sections
21624/26/28, and one-year final average compensation. The amended contract shall provide that
Miscellaneous employees hired after the effective date of the amendment shall receive the 2% at
60 formula retirement plan and the three-year final average compensation; instead of the current
benefit of 2% at 55 formula retirement plan and one-year final average compensation.
The establishment of this second tier of benefits shall not affect the benefits currently in effect
for employees hired prior to the effective date of the CalPERS contract amendment. Effective
June 30, 2001, the City provided Police Safety members with the three percent (3%) at fifty (50)
formula retirement plan. The City's contract with Ca1PERS includes the following optional
benefits:
• Fourth Level - 1959 Survivor's Benefit as provided in Section 21574 (June 30, 1996).
• Military Service Credit as provided in Section 21024 (January 4, 1996).
• One -Year Final Compensation as provided in Section 20042 (July 1, 1982).
• Credit for Unused Sick Leave as provided in Section 20965 (July 1, 1982).
• Cost of Living Allowance two percent (2%) as provided by Section 21329 (July 1,
1982).
• Retired Death Benefit of five -hundred dollars ($500.00) as provided in Section 21620
(July 1, 1982).
• Death Benefit Continues as provided in Section 21551 (January 1, 2000).
• Prior Service Credit as provided in Section 20055 (July 1, 1982).
Effective June 30, 2001, the City provided Fire Safety members with the three percent (3%) at
fifty (50) formula retirement plan. The City's contract with Ca1PERS includes the following
optional benefits:
• Fourth Level - 1959 Survivor's Benefit as provided in Section 21574 (May 4, 1998).
• Military Service Credit as provided in Section 21024 (January 4, 1996).
• One -Year Final Compensation as provided Section 20042 (November 1, 1981).
• Credit for Unused Sick Leave as provided in Section 20965 (November 1, 1981).
• Post Retirement Survivors Allowance — fifty percent (50%) as provided by Sections:
21624, 21626, and 21628 (January 1, 1987).
• Cost of Living Allowance two percent (2%) as provided by Section 21329 (November
1, 1981).
• Retired Death Benefit of five -hundred dollars ($500.00) as provided in Section 21620
(November 1, 1981).
• Post Retirement Survivor Allowance Continues as provided in Section 21635 (January
1, 2000).
• Death Benefit Continues as provided in Section 21551 (January 1, 2000).
• Prior Service Credit as provided in Section 20055 (November 1, 1981).
The City provides Miscellaneous members with the two percent (2%) at fifty-five (55) formula
retirement plan. The City's contract with Ca1PERS includes the following optional benefits:
• Third Level - 1959 Survivor's Benefit as provided in Section 21573 (April 5, 1999).
• Military Service Credit as provided in Section 21024 (January 1, 1992).
• One -Year Final Compensation as provided Section 20042 (November 1, 1980).
• Credit for Unused Sick Leave as provided in Section 20965 (November 1, 1980).
• Cost of Living Allowance two percent (2%) as provided by Section 21329 (April 1,
1971).
• Retired Death Benefit of five -hundred dollars ($500.00) as provided in Section 21620
(December 1, 1969).
• Death Benefit Continues as provided in Section 21551 (January 1, 2000).
• Prior Service Credit as provided in Section 20055 (January 1, 1950).
The City shall continue to defer that portion of the employee's contribution paid to Ca1PERS
through section 414(h)(2) of the Internal Revenue Code pursuant to City of Petaluma Resolution
90-363 N.C.S.
SECTION 21— HEALTH BENEFITS — ACTIVE EMPLOYEES
21.1 Active Employees — PEMHCA Contribution
The City currently provides health benefits through the California Public Employees'
Retirement System (Ca1PERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for each
employee's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to CalPERS. This amount is established annually by PERS and is the
minimum amount the agency must pay on behalf of the employee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 26.2.
21.2 Additional Contribution
The amount of the City's additional contribution for current employees and their covered
family members shall be $575.95 for employee only, $1,264.95 for employee plus one, and
$1,678.34 for employee plus two or more. These amounts do not include the City PEMCHA
contribution identified in 26.1. The City's additional contribution shall not exceed these
amounts unless and until a different amount is negotiated by the parties.
21.3 Employee Contribution
Employees shall contribute to his/her CalPERS Health Premium in the amounts less the
City's PEMHCA contribution and less the additional benefit paid by the City.
SECTION 22 — HEALTH BENEFITS — RETIRED EMPLOYEES
22.1 Retired Employees — CalPERS and PEMHCA
The City currently provides health benefits through the California Public Employees'
Retirement System (CalPERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). In order for a retired employee to be eligible to
receive health benefits through CalPERS upon retirement, a retired employee must meet the
following definition of "annuitant" under CalPERS law:
(A) Employee must be a member of CalPERS; and
(B) Employee must retire within one -hundred -twenty (120) days of separation from
employment with the City of Petaluma and receive a monthly retirement allowance
from CalPERS.
22.2 "Unequal Contribution" Method for Health Care Premium Payments for Retirees
The City uses the "unequal contribution" method for health care premium payments for
annuitants (retirees) as permitted under Government Code section 22892. Under this
method, the City is required annually to increase the total monthly annuitant health care
contribution to equal an amount not less than the number of years the City has been in the
PEMHCA program multiplied by five percent (5%) of the current monthly employer
contribution for active employees until the time the City's contribution for annuitants equals
the City's PEMHCA contribution paid for active employees.
By way of explanation, for calendar year 2009, the formula for determining the City's
PEMHCA contribution for retirees is as follows:
15 years in the PEMHCA program x 5% = 75% x $101 (minimum employer contribution for
active employees for 2009) _ $75.75.
16 years in the PEMHCA program x 5% = 80% x $105 (minimum employer contribution for
active employees for 20 10) _ $84.00.
For calendar year 2011, the formula for determining the City's PEMHCA contribution for
retirees is as follows: 17 years in the PEMHCA program x 5% = 85% x $108 (minimum
employer contribution for active employees for 2011) _ $91.80
For calendar year 2012, the formula for determining the City's PEMHCA contribution for
retirees is as follows: 18 years in the PEMHCA program x 5% = 90% x $112 (minimum
employer contribution for active employees for 2012) _ $100.80
For calendar year 2013, the formula for determining the City's PEMHCA contribution for
retirees is as follows: 19 years in the PEMHCA program x 5% = 95% x $115 (minimum
employer contribution for active employees for 2013) _ $109.25
Effective calendar year 2014 the "unequal contribution" method for health care premium
payments for annuitants (retirees) will be at the twenty year mark. Thus, the City's
contribution for the PEMHCA program will be at 100% (5% x 20 years). Therefore the
monthly employer contribution for annuitants is the required minimum PEMHCA
contribution.
The City pays this contribution directly to Ca1PERS. The retiree is required to contribute to
the cost of the health benefit coverage. The retiree's monthly contribution shall be the cost of
the monthly health benefit premium less the amount of the City's contribution.
22.3 CalPERS Annuitant — PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a Ca1PERS annuitant as
defined in Section 22.1 and receives health benefits under the PEMHCA, the employee is
eligible to receive the City's PEMHCA contribution amount specified in Section 24.5
below, regardless of the number of years of service with the City of Petaluma.
22.4 Less Than 12 Years Of Service — Not Receiving PEMHCA Health Benefits
A retired employee with less than twelve (12) years of service with the City of Petaluma
who is not enrolled in the Ca1PERS health benefit program does not receive any retiree
benefit from the City.
22.5 Less Than 12 years of Service — Receiving PEMHCA Health Benefits
A retired employee with less than twelve (12) years of service with the City of Petaluma who
is a Ca1PERS annuitant as defined in Section 22.1 and enrolled in the Ca1PERS health benefit
program is eligible to receive the City's PEMHCA contribution amount. according to the
following schedule:
Calendar Year
City's PEMHCA contribution
2009
$75.75
2010
$84.00
2011
$91.80
2012
$100.80
2013
$109.25
2014
Minimum PEMHCA contribution as set by Ca1PERS
A
22.6 12-19 Years of Service — Not Receiving PEMHCA Health Benefits
A retired employee with twelve to nineteen (12-19) years of service with the City of
Petaluma who is not enrolled in the Ca1PERS health benefits program shall receive direct
payments in the amount of one -hundred -twenty dollars ($120.00) each month, effective
the first month following the expiration of health benefit coverage.
22.7 12-19 Years of Service — Receiving PEMHCA Health Benefits
A retired employee with twelve to nineteen (12-19) years of service with the City of
Petaluma who is a Ca1PERS annuitant as defined in Section 22.1 and enrolled in the
Ca1PERS health benefit program is eligible to receive the City's PEMHCA contribution
amount specified in this section. The City's cash retiree benefit is sent directly to the retiree.
Calendar
Year
City Monthly PEMHCA
contribution
City Monthly Cash Retiree
Benefit
Total
Benefit
Amount
2009
$75.75
$44.25
$120.00
2010
$84.00
$36.00
$120.00
2011
$91.80
$28.20
$120.00
2012
$100.80
$19.20
$120.00
2013
$109.25
$10.75
$120.00
2014
Minimum PEMHCA
contribution as set by
Ca1PERS.
Total Benefit amount of $120.00
minus City monthly PEMHCA
contribution
$120.00
It is the responsibility of the retiree to notify the City in writing if he or she is no longer
participating in the Ca1PERS health benefit program. Following receipt of the written notice,
the City will commence direct payment of the one -hundred -twenty dollars ($120.00) at the
beginning of the following month.
22.8 20 Years or More of Service — Not Receiving PEMHCA Health Benefits
A retired employee with twenty (20) or more years of service with the City of Petaluma
who is not enrolled in the Ca1PERS health benefits program shall receive direct payments
in the amount of one -hundred -forty dollars ($140.00) each month, effective the first month
following the expiration of health benefit coverage.
22.9 20 Years or More of Service — Receiving PEMHCA Health Benefits
A retired employee with twenty (20) years or more of service with the City of Petaluma
who is a Ca1PERS annuitant as defined in Section 22.1 and enrolled in the CalPERS
health benefit program shall receive a benefit payment of one -hundred -forty dollars
($140.00) per month as specified in this section.
The City's cash retiree benefit is sent directly to the retiree.
The following chart indicates the amount of the City's PEMHCA contribution and the
amount of the cash payment to the retiree in the coming years:
Calendar
Year
City Monthly PEMHCA
contribution
City Monthly Cash Retiree
Benefit
Total
Benefit
Amount
2009
$75.75
$64.25
$140.00
2010
$84.00
$56.00
$140.00
2011
$91.80
$48.20
$140.00
2012
$100.80
$39.20
$140.00
2013
$109.25
$30.75
$140.00
2014
Minimum PEMHCA
contribution as set by
Ca1PERS.
Total benefit amount of
$140.00 minus City monthly
PEMHCA contribution
$140.00
It is the responsibility of the retiree to notify the City in writing if he or she is no longer participating
in the Ca1PERS health benefit program. Following receipt of the written notice, the City will
commence direct payment of the one -hundred -forty dollars ($140.00) at the beginning of the
following month.
SECTION 23 - CASH IN -LIEU OF HEALTH AND DENTAL BENEFITS
Employees with health and or dental benefit insurance coverage from a source other than the
City, or employees with health and dental benefit insurance coverage from a City employee, may
request cash in lieu of health and dental benefits. To be eligible for the cash in -lieu benefit
program employees must waive his/her coverage under the City's health and/or dental benefits,
agree to the terms and conditions of the cash in -lieu benefit program and have written
verification of health and/or dental benefits insurance.
The cash in -lieu amount for health coverage shall be in the amount of fifty percent (50%) of the
health insurance premium amount of the Ca1PERS Kaiser — Bay-Area/Sacramento that the City
would otherwise pay for the employee and his or her family members. The cash in -lieu amount
for dental insurance benefits shall be in the amount of fifty percent (50%) of the established
dental program composite rate.
Upon declining medical and/or dental insurance, the employee will be required to meet the terms
and conditions regarding the City's medical and/or dental plan. If an employee decides to stop
receiving the medical/dental cash back and wishes to re -enroll into the City's medical and/or
dental plan, then he/she must meet the current terms and conditions of the City's medical and/or
dental plan. The City cannot guarantee that once the employee leaves a particular medical and/or
dental plan, he/she may be able to re -enroll in his/her prior plan and under the same terms and
conditions of his/her prior plan.
SECTION 24 — SECTION 125 PLAN
The City of Petaluma has established and shall offer to eligible employees an Internal Revenue
Code (IRC) Section 125 plan. The Section "125 plan is subject to federal law and plan
provisions.
The Section 125 Plan offered by the City provides employees with a tax savings through the
following programs:
(A) Pre -Tax Health Insurance Premiums
This program allows employees to pay his or her share of health insurance
premiums with pre-tax dollars.
(B) Flex Spending Accounts (FSAs)
(1) Medical Reimbursement
This program permits employees to pay for common out-of-pocket
medical expenses (not covered by insurance) such as deductibles, co -pays,
and vision and dental care with pre-tax dollars.
(2) Dependent Care Reimbursement
This program permits employees to pay for most child and or dependent
care expenses with pre-tax dollars.
SECTION 25 — DENTAL INSURANCE
The City shall provide a dental plan for the term of the Compensation Plan and pay the total
premium costs for the employee and eligible dependents. The maximum benefit amount is two
thousand dollars ($2,000) per person per calendar year. Orthodontic coverage shall be provided
for dependent children under the age of nineteen (19) years and is 50% of the dentist's allowed
fee (subject to a $1,000 lifetime maximum per person).
SECTION 26 — VISION INSURANCE
The City shall provide a vision plan for employees and eligible dependents. The cost shall be
paid for by the City. Employees are eligible for eye exams every twelve (12) months with a
twenty-five ($25.00) deductible. Frames are available every twelve (12) months with a maximum
benefit of one -hundred -twenty dollars ($120.00) and lenses are available every twelve (12)
months with a maximum benefit of two -hundred dollars ($200.00).
SECTION 27 — LIFE INSURANCE
The City shall provide employees with life insurance in the amount of one and one-half (1.5)
times the employee's annual salary rounded to the nearest even dollar, not to exceed two -
hundred thousand dollars ($200,000.00)
SECTION 28 — EMPLOYEE ASSISTANCE PROGRAM
The City will provide an Employee Assistance Program to employees and his/her immediate
families. This licensed counseling service will provide assistance and referrals for marriage and
family problems, alcohol and drug dependency, emotional, personal, and stress-related concerns
and other issues. All counseling services are confidential.
SECTION 29 — DISABILITY INSURANCE
The City shall provide for a long-term disability plan, with the premium to be paid for by the
City.
SECTION 30 - DEFERRED COMPENSATION
30.1 Deferred Compensation Plan — 457 Plan
The City of Petaluma shall make available to the members of this unit the City's Deferred
Compensation Plan.
30.2 Deferred Compensation Plan — Discretionary Plan — 401(A) Plan
The City of Petaluma shall make available to the members of this unit the City's 401 (A)
Plan. New members will have an opportunity to designate a one-time choice of an
additional employee contribution level within ninety (90) days of their appointment date.
For additional information, contact the Human Resources office.
EXHIBIT A — SALARY TABLE
Department Directors Compensation Plan- Unit 8
Salary Ranges Effective July 1, 2014
Classification
Salary Range
Assistant City Attorney
$9,781.25 - $11,889.17
Assistant City Manager
$9,449.18 - $12,262.43
Director of Finance
$9,449.18 - $12,262.43
Director of Human Resources
$9,449.18 - $12,262.43
Director of Public Works and Utilities
$9,449.18 - $12,262.43
Fire Chief
$11,585.60 - $13,901.33
Police Chief
$11,700.00 —15,501.20
Salary Ranges Effective March 14, 2016 (4% increase)
Classification
Sala Ran e
Assistant City Attorney
$10,172.50 - $12,365.73
Assistant City Manager
$9,827.15 - $12,752.93
Director of Finance
$9,827.15 - $12,752.93
Director of Human Resources
$9,827.15 - $12,752.93
Director of Public Works and Utilities
$9,827.15 - $12,752.93
Fire Chief
$12,049.02 - $14,457.39
[Police Chief
$12,168.00 - $16,121.25