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HomeMy WebLinkAboutResolution 2017-055 N.C.S. 04/17/2017Resolution No. 2017 -055 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 in Unit 8 are not represented by any recognized employee organization; and WHEREAS, the City Manager, pursuant to Section 28 of the Charter of the City of Petaluma, and as the City's Municipal Employee Relations Officer (Resolution No. 5375 N.C.S.), 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 April 24, 2017 Compensation Plan for Unit 8 and does recommend the City Council ratify said Compensation Plan; and NOW, THEREFORE, BE IT RESOLVED that the Compensation Plan for Unit 8, being in the best interests of the City of Petaluma, and incorporated herein as Exhibit A, is ratified and the terms and conditions of said Plan, attached to and incorporated as Exhibit A, shall be effective May 1, 2017, or as otherwise noted in the Plan. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved 4 to Council of the City of Petaluma at a Regular meeting on the 17th day of April, 2017, � four by the following vote: AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller NOES: None ABSENT: None ABSTAIN: ATTEST: City Resolution No. 2017 -055 N.C.S. Page 1 Exhibit A COMPENSATION PLAN between CITY OF PETALUMA and DEPARTMENT DIRECTORS May 1, 2017 THROUGH April 30, 2018 UNIT 8 Resolution No. 2017 -055 N.C.S. Page 2 SECTION 1— TERM OF COMPENSATION PLAN ............................ ..............................1 SECTION 2 — SALARIES ............................................................. ..............................1 2.1 Salaries 2.2 Salaries - Emergency Operation Center SECTION 3 — SPECIAL COMPENSATION — UNIFORM ALLOWANCE .............................1 SECTION4 — HOLIDAYS ............................................................ ..............................1 4.1 Holidays — Fixed Holidays 4.2 Holidays — Floating Holidays SECTION 5 — VACATION ............................................................ ..............................2 5.1 Vacation — Accrual Rate and Maximum Accrual Limits 5.2 Vacation— Scheduling 5.3 Vacation — Adjustment for Holidays 5.4 Vacation— Payment at Separation SECTION 6 — LEAVES — ADMINISTRATIVE LEAVE ....................... ..............................3 6.1 Administrative Leave - Annual Credit of Leave 6.2 Administrative Leave - Carry Forward of Leave 6.3 Administrative Leave - Pro - Ration of Leave Hours 6.4 Administrative Leave - Annual Payment for Unused Leave 6.5 Administrative Leave - Payment at Separation SECTION 7 — LEAVES — SICK LEAVE .......................................... ..............................4 7.1 Sick Leave — Eligibility 7.2 Sick Leave — Accrual 7.3 Sick Leave — Transfer 7.4 Sick Leave — Retirement Payout 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 VOTING LEAVE .................6 SECTION 13 — LEAVES — SCHOOL VISITATION LEAVE ................. ..............................6 SECTION 14 — LEAVES — LEAVE OF ABSENCE WITHOUT PAY ...... ..............................6 SECTION 15 — LEAVES — JURY DUTY LEAVE ............................... ..............................6 Resolution No. 2017 -055 N.C.S. Page 3 SECTION 16 — FAMILY CARE AND MEDICAL LEAVE (FMLA & CFRA) .........................6 16.1 FMLA and/or CFRA Leave 16.2 FMLA and /or CFRA — Second Opinion SECTION 17 — LEAVES — PREGNANCY DISABILITY LEAVE ........... ..............................7 SECTION 18 — DISCRIMINATION, HARASSMENT & RETALIATION PROHIBITED .......... 7 SECTION 19 — REASONABLE ACCOMMODATION ........................ ..............................7 SECTION 20 — CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM ..................7 SECTION 21— HEALTH BENEFITS — ACTIVE EMPLOYEES ............ ..............................9 21.1 Active Employees — PEMHCA Contribution 21.2 Additional Contribution 21.3 Employee Contribution SECTION 22 — HEALTH BENEFITS — RETIRED EMPLOYEES ......... ..............................9 22.1 Retired Employees — Ca1PERS and PEMHCA 22.2 "Unequal Contribution" Method for Health Care Premium Payments for Retirees 22.3 Ca1PERS Annuitant— PEMHCA Health Benefits 22.4 Less Than 12 Years of Service —Not Receiving PEMHCA Health Benefits 22.5 Less Than 12 Years of Service — Receiving PEMHCA Health Benefits 22.6 12 -19 Years of Service — Not Receiving PEMHCA Health Benefits 22.7 12 -19 Years of Service — Receiving PEMHCA Health Benefits 22.8 20 Years or More of Service — Not Receiving PEMHCA Health Benefits 22.9 20 Years or More of Service — Receiving PEMHCA Health Benefits SECTION 23 — CASH IN -LIEU OF HEALTH AND DENTAL BENEFITS ...........................12 SECTION 24 — SECTION 125 PLAN .............................................. .............................13 SECTION 25 — DENTAL INSURANCE ........................................... .............................13 SECTION 26 — VISION INSURANCE ............................................ .............................13 SECTION 27 — LIFE INSURANCE ................................................ .............................13 SECTION 28 — EMPLOYEE ASSISTANCE PROGRAM .................... .............................14 SECTION 29 — DISABILITY INSURANCE ..................................... .............................14 SECTION 30 — DEFERRED COMPENSATION ............................... .............................14 30.1 Deferred Compensation Plan — 457 Plan 30.2 Deferred Compensation Plan— Discretionary Plan - 401 (A) EXHIBIT A — SALARY TABLE .................................................... .............................15 Resolution No. 2017 -055 N.C.S. Page 4 SECTION 1- TERM OF COMPENSATION PLAN This Compensation Plan shall be effective commencing May 1, 2017 and ending April 30, 2018. SECTION 2 - SALARIES 2.1 Salaries Salary Ranges shall be as specified in Exhibit "A" for each classification. Effective May 8, 2017 all members will receive a salary increase based on market adjustments applied to bring the salary ranges towards the median of the market. Increases shall be applied as follows. Positions found to have been five (5) to 9.9 percent below median shall receive a three (3) percent adjustment. Positions found to have been ten (10) to 14.9 percent below median shall receive a five (5) percent adjustment, and positions found to have been 15 percent or more below median shall receive a seven (7) percent adjustment. Effective the first payroll following the adoption of a contract amendment with Ca1PERS and concurrent with all members paying an additional three percent (3 %) towards PERS retirement, all unit members shall receive a 3% base wage increase. 2.2 Salaries — Emergency Operation 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 May 1, 2017 through April 30, 2018 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 Resolution No. 2017 -055 N.C.S. Page 5 Observance: The actual date of the observed holidays is determined by City Council resolution each fiscal year. If participating in a 5/8 schedule, 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. If participating in a 4/10 schedule, when a holiday falls on a Friday or Saturday, that holiday will be observed on Thursday. 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 Wednesday 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. Fixed holidays currently provided for in the Compensation Plan will be based on the employee's regular work shift. For example, if an employee works a 4/10 schedule, s /he shall receive ten (10) hours of pay for the holiday. If an employee works a 9/80 schedule, s /he shall receive nine (9) hours of pay for the holiday, or eight (8) hours pay if the holiday falls on their regularly scheduled eight (8) hour workday as part of their 9/80 schedule. If an employee works a 5/8 schedule (five days /week, eight hours /day), s /he shall receive eight (8) hours of pay for the holiday. The same shall be true for any employee whose regular work week is fewer than forty (40) hours per week, except that no such employee shall receive more than eight (8) hours of pay for the holiday. 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. SECTIONS - VACATION Years of 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 Resolution No. 2017 -055 N.C.S. Page 6 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 beat 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. Resolution No. 2017 -055 N.C.S. Page 7 SECTION 7 — LEAVES — SICK LEAVE 7.1 Sick Leave — Eli ig bility 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 Payout 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/her 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, or the employee may do a combination of both; to receive a payout of up to fifty percent (50 %) of his /her accumulated but unused sick leave not to exceed four hundred eighty (480) hours with the balance placed 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) Resolution No. 2017 -055 N.C.S. Page 8 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. Resolution No. 2017 -055 N.C.S. Page 9 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. Resolution No. 2017 -055 N.C.S. Page 10 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 CalPERS. 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 Ca1PERS 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). Resolution No. 2017 -055 N.C.S. Page 11 • 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. Effective the first payroll following the adoption of a contract amendment with CalPERS, all employees shall pay an additional three percent (3 %) towards PERS retirement. For Classic employees, this three percent (3 %) is added to the current seven percent (7 %) employee Resolution No. 2017 -055 N.C.S. Page 12 contribution, for a total contribution often percent (10 %). Employees subject to the PEPRA formula shall also pay an additional three percent (3 %) on top of their required employee contribution, which is currently 6.25% but is subject to change by PERS. The parties shall work collaboratively to expedite formal adoption of a contract amendment with CalPERS to reflect this cost - sharing agreement under which the employee is paying a portion of the employer contribution to PERS. 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 (CalPERS) 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, Resolution No. 2017 -055 N.C.S. Page 13 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 Ca1PERS 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. Resolution No, 2017 -055 N.C.S. Page 14 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 CalPERS annuitant as defined in Section 22.1 and enrolled in the CalPERS health benefit program is eligible to receive the City's PEMHCA contribution amount according to the following schedule: Calendar Year City's PEMHCA Contribution 2017 $128.00 2018 $133.00 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 CalPERS health benefits program shall receive direct payments in the amount of one - hundred and twenty -eight dollars ($128.00) 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 CalPERS annuitant as defined in Section 22.1 and enrolled in the CalPERS 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 City Monthly PEMHCA City Cash Retiree Benefit Total Year Contribution Benefit Amount 2017 $128.00 $12.00 $140.00 2018 $133.00 $7.00 $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 CalPERS health benefit program. Following receipt of the written notice, the City will commence direct payment of the one - hundred and twenty -eight dollars ($128.00) 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 CalPERS 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 CalPERS 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: Resolution No. 2017 -055 N.C.S. Page 15 Calendar City Monthly PEMIICA City Cash Retiree Benefit Total Year Contribution Benefit Amount 2017 $128.00 $12.00 $140.00 2018 $133.00 $7.00 $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. For All Employees Hired On or After June 1, 2017: For all employees hired on or after June 1, 2017, the cash in -lieu amount for health benefits shall be $400.00 per month. Employees shall not be eligible for cash in -lieu for dental benefits. Upon declining medical insurance, the employee will be required to meet the terms and conditions regarding the City's medical plan. If an employee decides to stop receiving the medical cash back and wishes to re- enroll into the City's medical plan, then s /he must meet the current terms and conditions of the City medical plan. The City cannot guarantee that once the employee leaves a particular medical plan, s /he may be able to re- enroll in his /her prior plan and under the same terms and conditions of his /her prior plan. Resolution No. 2017 -055 N.C.S. Page 16 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 $ $2,000 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- eighty dollars ($180.00) and Progressive lenses are available every twelve (12) months with a maximum benefit of three - hundred dollars ($300.00). 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) Resolution No. 2017 -055 N.C.S. Page 17 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. Resolution No. 2017 -055 N.C.S. Page 18 EXHIBIT A — SALARY TABLE Department Directors Compensation Plan- Unit 8 Salary Ranges Effective: March 14, 2016 (4% Increase) Classification Salary 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 ire Chief $12,049.02 - $14,457.39 olice Chief $12,168.00 - $16,121.25 EXHIBIT A — SALARY TABLE Department Directors Compensation Plan- Unit 8 Salary Ranges Effective: May 8, 2017 Classification Salary Range Assistant City Attorney $10,477.68 - $12,736.70 Assistant City Manager $10,515.05 - $13,645.64 Director of Finance $10,121.96 - $13,135.52 Director of Human Resources $10,121.96 - $13,135.52 Director of Public Works and Utilities $10,515.05 - $13,645.64 Fire Chief $12,651.47 - $15,180.26 ,Police Chief $12,533.04 - $16,604.89 *This salary table shows the salary range after market adjustments are applied to bring the ranges towards the median of the market. EXHIBIT A — SALARY TABLE Department Directors Compensation Plan- Unit 8 Salary Ranges Effective: First Payroll Following the Adoption of a Contract Amendment with CalPERS for Employee Cost Share (3% Increase) Classification Salary Range Assistant City Attorney $10,792.01- $13,118.80 Assistant City Manager $10,830.50 - $14,055.00 Director of Finance $10,425.62 - $13,529.58 Director of Human Resources $10,425.62 - $13,529.58 Director of Public Works and Utilities $10,830.50 - $14,055.00 Fire Chief $13,031.02 - $15,635.67 Police Chief $12,909.03 - $17,103.03 *This salary table shows the salary range after the 3% Employee Cost Share to CalPERS is applied and wages are adjusted accordingly. Resolution No. 2017 -055 N.C.S. Page 19