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Staff Report 4.A 01/28/2019
DATE: January 28, 2019 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Amy Reeve, Director of Human Resources SUBJECT: Resolution Appointing Peggy Flynn to the Position of Petaluma City Manager and Approving the Agreement for At -Will Employment of City Manager, Including Annual Salary and Benefits to be Effective February 25, 2019 RECOMMENDATION Itis recommended that the City Council adopt the attached Resolution Appointing Peggy Flynn to the Position of City Manager of the City of Petaluma and Approving and Authorizing the Mayor to Sign on Behalf of the City the Agreement for At -Will Employment of City Manager Including Annual Salary and Benefits to be Effective February 25, 2019. BACKGROUND City Manager John Brown retired as City Manager effective November 28, 2018 after serving the City for more than ten years beginning in April 1, 2008. After a nation-wide recruitment process, the City Council voted unanimously to appoint Peggy Flynn as the City Manager, subject to successful completion of reference and background checks, and to reaching satisfactory terms and conditions for an employment contract. Ms. Flynn has agreed to the terms and conditions set forth in the Employment Contract, attached hereto as Exhibit A. The term of the contract will commence on February 25, 2019 and continue for a three-year period expiring on February 24, 2022, with an automatic one-year extension effective on February 25th of each year, unless the contract is terminated earlier in accordance with its terms. DISCUSSION After afour-month recruitment process, the City Council unanimously agreed to appoint Peggy Flynn as the next Petaluma City Manager. Ms. Flynn has host recently served as the Assistant City Manager for the City of Novato and has more than 20 years of local government experience, including serving in top management positions for various special districts. Section 54953, Subdivision (c), paragraph (3) of the Government Code, part of the Brown Act, provides that prior to taking final action, the legislative body shall orally report a summary of a recommendation for final action on the salary, salary schedules or compensation paid in the form of fringe benefits of a local agency executive during the open meeting in which the final action is to be taken. Accordingly, key provisions of the at -will employment contract attached as Exhibit A are summarized in the following, and will be orally summarized at the January 28 City Council meeting: Tei m. The effective date of the contract is February 25, 2019 and the initial term is for three years. The contract provides for an annual, one-year extension, in each year of the contract unless either party gives notice of termination in accordance with the contract. Salary: The annual salary is $210,000 Vacation and Other Leaves: 80 hours of Vacation Leave, at the start of employment increasing with years of service are provided annually. Administrative Leave of 96 hours per year is provided, of which a maximum of 40 may be carried forward to a subsequent fiscal year. The maximum Administrative Leave accrual is 136 hours. The contract authorizes sell back of a maximum of 20 hours of unused administrative leave hours per year, except that during the first two years of the contract term, to off -set what is anticipated to be an initial work -load that will aHow only limited use of accrued leaves, the City Manager is authorized to receive cash back for a maximum of 50 hours of unused Administrative Leave annually. Sick Leave will accrue at 8 hours per month, which is consistent with accrual rates for Unit 8, Department Directors, Health Benefits: Health benefits are consistent with those offered employees in Unit 8, Department Directors, and includes Medical, Dental, Vision, Long Term Disability, Life Insurance, Employee Assistance Program. Other Benefits: The contract includes a monthly car allowance of $400 per month, to compensate for the City Manager's use of a personal vehicle in the conduct of City business. CaIPERS: The City Manager will contribute 10% to the cost of Ca]DUD S retirement, which is consistent with employees in Unit 8, Department Directors. Termination and Severance: Except for the not -for -cause termination provision in Section 2 of the City Manager's employment agreement, which is related to the annually -renewing three-year contract term, the termination and severance provisions in the City Manager's employment agreement are the same as in the employment contract of the former City Manager, John Brown, and in the employment contract of the City Attorney, Eric Danly. The termination provisions provide for 7 months severance pay for termination by the City Council that is not for cause, and for termination without severance for termination for cause as specified in the agreement. The termination provisions also include obligations to reimburse the City for certain expenses in the event of a conviction for crimes involving abuse of office. The California legislature enacted such requirements as a result of the events in the City of Bell and they have been a requirement for contracts with local agency executive staff since then. The City Manager employment contract is consistent with statutory requirements. The City Manager contract isattached to the City Managerappointment Resolution as Exhibit A. 2 In appointing Peggy Flynn as the next Petaluma City Manager, the Petaluma City Council selected a candidate with a strong leadership and municipal management background and expertise in land use and management, economic development, redevelopment, and water utility operations and flood protection. Ms. Flynn also brings extensive experience in leading successful community engagement initiatives. FINANCIAL IMPACTS Sufficient budget appropriations have been included in the FY 18/19 adopted budget to cover the annual salary of $210,000 and all other benefits. No budget amendments will be required as part A this action. ATTACHMENTS 1. Resolution Appointing Peggy Flynn as Petaluma City Manager including: a. Exhibit A: Agreement for At -Will Employment of City Manager b. Attachment 1: Benefits c. Attachment 2: Long Term Disability Insurance for Employees ATTACHMENT 1 Resolution No. 20IV-XXX N.C.S. oI the City of Petaluma, California RESOLUTION APPOINTING PEGGY FLYNN TO THE POSITION OF CITY MANAGER OF THE CITY OF PETALUMA AND APPROVING AND AUTHORIZING THE MAYOR TO SIGN ON BEHALF OF THE CITY THE AT - WILL EMPLOYMENT CONTRACT INCLUDING ANNUAL SALARY AND BENEFITS TO BE EFFECTIVE FEBRUARY 25, 2019 WHEREAS, City Manager John C. Brown retired from his position as Petaluma City Manager on November 28, 2018 after serving the City for more than ten years beginning in April 1, 2008; and, WHEREAS, the City conducted anation-wide recruitment for a new City Manager; and, WHEREAS, the City desires to employ the services of Peggy Flynn as the next City Manager of the City of Petaluma; and WHEREAS, it is the desire of the Petaluma City Council, as the governing board of the City, to provide certain benefits, and to establish conditions of employment and to set working conditions for the City Manager; and WHEREAS, Ms. Flynn desires to accept employment as City Manager of Petaluma; and WHEREAS, the City Council voted unanimously to appoint Peggy Flynn as the Petaluma City Manager, subject to reaching satisfactory terms and conditions for an employment contract, and authorized the City Attorney to negotiate an employment contract on behalf of the City; and, WHEREAS, the City and Ms. Flynn have negotiated terms and conditions set forth in the Agreement for At -Will Employment of City Manager, attached to and made a part hereof as Exhibit "A;" and WHEREAS, the term of the City Managers employment contract will commence on February 25, 2019 and continue for athree-year period expg on 4 February 24, 2022, with an automatic one-year extension occurring on February 25of each year unless the contract is terminated earlier in accordance with its terms; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. Peggy Flynn is hereby appointed to serve the City Council and the Petaluma community as the next Petaluma City Manager, with all the powers and duties established for the position of City Manager by the Petaluma City Charter, the Petaluma Municipal Code, and other applicable law. 2. The Agreement for At -Will Employment of City Manager attached to and made a part of this resolution as Exhibit A is hereby approved. 3. The Mayor is hereby authorized and directed to execute on behalf of the City an Agreement for At -Will Employment PO4 Manager with Peggy Flynn that is substantially in accordance with that attached to this resolution as Exhibit A, subject to such final changes as the City Attorney may recommend consistent with applicable law. 5 EXHIBIT A AGREEMENT FOR AT -WILL EMPLOYMENT OF CITY MANAGER Background Peggy Flynn possesses the necessary education, experience, skills and expertise to serve as the Petaluma City Manager, and the Petaluma City Council desires to employ her in that capacity. Peggy Flynn desires to serve as the Petaluma City Manager in accordance with the City Council's direction as the City's legislative body, and all applicable laws, regulations and rules. Accordingly, on January 28, 2019, by a vote of the Petaluma City Council adopted Resolution no. 2019- approving and authorizing the Mayor to execute on behalf of the City this Agreement for At -Will Employment of City Manager ("Agreement") appointing Peggy Flynn as City Manager of the City of Petaluma. Agreement This Agreement is made by the City of Petaluma, ("the CITY"), a California charter city, and Peggy Flynn ("CITY MANAGER"). The CITY and CITY MANAGER may be referred to individually in this Agreement as a PARTY and collectively as "the PARTIES." This Agreement will be effective February 25, 2019 (the "Effective Date"), which will be CITY MANAGER's first day of employment as the Petaluma City Manager. The PARTIES agree as follows: 1. Appointment of City Manager: Commencing on the Effective Date, CITY MANAGER is hereby appointed as City Manager of the City of Petaluma in accordance with this Agreement and all applicable laws, regulations and rules. 2. Term: The term of this Agreement ("Term") shall commence on the Effective Date and continue for athree-year period expiring on February 24, 2022 (the "Expiration Date"). Notwithstanding the Expiration Date, the Term will automatically extend by an additional year without further notice or action of the PARTIES commencing on February 25 of each year, thereby establishing a new three-year Term and new Expiration date, unless either PARTY gives the other written notice of termination by or before November 25. If either PARTY provides notice of termination in accordance with this provision, the Term will expire at the conclusion of the three-year Term then in effect without further notice or action of the PARTY, unless the PARTY giving notice of termination rescinds the notice in writing before the commencement of the final year of the Term then in effect. Notwithstanding this provision, this Agreement may be terminated before the expiration At Will Employment Agreement City 1Vlanager Peggy Flynn of the Term in accordance with Section 20. If the CITY terminates this Agreement by giving notice in accordance with this section, the City will have no obligation to pay severance pursuant section 21 regarding such termination. 3. ployment: CITY MANAGER will bean at -will employee of the CITY in accordance with California Labor Code Section 2922 and will serve at the pleasure of the City Council. The CITY's Personnel Rules, Policies, Procedures, Ordinances and Resolutions will not apply to CITY MANAGER, and nothing in this Agreement confers upon CITY MANAGER any right to or expectation of any right or property interest in continued employment by the CITY. If the CITY terminates CITY MANAGER's employment, whether with or without cause, CITY MANAGER will be entitled to only that due process that is provided by City Charter or ordinance, or this Agreement. Nothing in this Agreement will limit the right of CITY MANAGER to resign at any time subject to the requirements in Section 20 of this Agreement. Past or future CITY enactments or other actions of the City Council may designate CITY MANAGER as the chief executive of other CITY -related legal entities, such as financing authorities and/or joint powers agencies. 4. CITY MANAGER Obligations and Understandings a. Duties and Authority i. CITY MANAGER shall be the chief executive officer of the City and be responsible to the City Council for the proper administration of all City affairs. ii. CITY MANAGER shall be vested with all of the powers and perform all of the duties as set forth concerning CITY MANAGE 's position in applicable laws of the State of California, the Petaluma Charter (including, without limitation, Sections 23 and 24 of Article VI), the Petaluma Municipal Code, CITY ordinances and resolutions, and City Council policies as may be established from time to time, and such other duties and functions as the City Council may from time to time assign. The CITY MANAGER shall administer and enforce polices established by the City Council and promulgate rules and regulations as necessary to implement such policies. Accordingly, CITY MANAGER shall be required to: A. Attend all meetings of the City Council, unless excused. B. Direct the review of all agenda documents and preparation of the, agenda for all regular and special meetings of the City Council. C. Direct the work of all CITY officers, employees and departments appointed by and/or under the supervision of the CITY MANAGER. At Will Employment Agreement City N/Ia nlger Pegg>' Flynn 2 D. Implement changes that the CITY MANAGER believes will result in greater efficiency, economy, or improved public service in the administration of CITY affairs. E. From time to time, recommend to the City Council adoption of such measures as the CITY MANAGER may deem necessary or expedient for the health, safety, or welfare of the community, or for the improvement of CITY services. The CITY MANAGER shall conduct and direct research in administrative practices in order to bring about greater efficiency and economy in CITY government and develop and recommend to the City Council long-range plans to improve CITY operations and prepare for future CITY growth and development. F. From time to time, and based on the CITY MANAGER's best judgment, propose to the City Council the consolidation, or combination or reorganization of offices, positions, departments, or units under the CITY MANAGER's authority and/or supervision. The CITY MANAGER may be the head of one or more CITY departments. G. Provide management training and develop leadership qualities among department heads as necessary to build a CITY management team that can plan for and meet future challenges. H. Exercise control of CITY government in emergencies as authorized by the Petaluma Municipal Code and other applicable law. b. Hours of Work i. CITY MANAGER is an exempt employee. CITY MANAGER is expected to engage in those hours of work that are necessary to fulfill the obligations of the CITY MANAGER's position. The position does not have set hours of work and the CITY MANAGER is expected to be available, as necessary, at all times. ii. Ti is recognized that the CITY MANAGER must devote substantial time to the business of the CITY outside of the CITY's customary business hours, and to that end the CITY MANAGER's schedule of work each day and week shall vary in accordance with the work required to be performed. The CITY MANAGER shall spend sufficient hours on site to perform her duties. However, the CITY MANAGER has discretion over the City Manager's work schedule and work location. As an exempt employee, CITY MANAGER will not receive overtime or extra compensation for work performed outside normal business hours. However, CITY MANAGER will receive administrative leave in accordance with section 11(c). At Will Employment Agreement City Manager Peggy Flynn J 5. iiis The CITY MANAGER shall not spend more than 12 hours per month in teaching, consulting, speaking or other non -CITY connected business for which compensation is paid without the express, prior written consent of the City Council. Except as specified in this paragraph, the CITY MANAGER agrees to remain in the exclusive employ of the CITY, and to devote her full productive time and attention to the CITY's business during the term of this Agreement in accordance with its terms. CITY Obligations and Understandings a. The CITY shall provide the CITY MANAGER with the compensation, incentives and benefits specified in this Agreement, as from time to time amended by written consent of both PARTIES. b. The CITY shall provide the CITY MANAGER with a private office, administrative support, staff, office equipment, supplies, and automobile allowance as specified in this Agreement, and all other facilities and services reasonably necessary for the performance of her duties. c. The CITY shall pay for (or provide the CITY MANAGER reimbursement for) all actual business expenses. The CITY shall provide the CITY MANAGER a credit card to charge appropriate and lawful CITY business expenses. d. The CITY agrees to pay the professional dues, subscriptions, travel and subsistence expenses on behalf of the CITY MANAGER which are necessary for the CITY MANAGER's continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for the CITY MANAGER's continued professional growth and advancement. Said reimbursement includes governmental groups and committees upon which the CITY MANAGER serves or may serve as a member. Said expenses may also be reimbursed or paid for or on behalf of the CITY MANAGER for short courses, institutes and seminars that are necessary for the professional development of the CITY MANAGER. e. Given the importance of technological tools to the effective and efficient conduct of the CITY's business, the CITY shall provide computer, laptop computer, printer, high-speed internet access, cellular phone, IPad or subsequent type devices, electronic calendar, fax, copy machine and similar devices to the CITY MANAGER at the CITY's expense, both at the CITY MANAGER's office and at the CITY MANAGER's residence as needed to carry out the duties of the position. All such equipment shall remain the property of the CITY. f. The City Council sets policy for the governance and administration of the CITY, and it implements its policies through the CITY MANAGER. g. The City Council recognizes that to meet the chall enges facing the CITY it must exercise decisive policy leadership. As one step in cal-�ying out this leadership At Will Employment Agreement City Mana0 4 er Peggy Flynn responsibility, the City Council commits to spending time each year outside of regular City Council meetings to work with the CITY MANAGER and staff on setting goals and priorities for the CITY government, and to work on issues that may be inhibiting the maximum achievement of CITY goals. h. In accordance with Section 24(B) of Article VI of the Petaluma Charter: neither the City Council nor any of its appointees shall dictate, or interfere with the exercise of the CITY MANAGER's judgment regarding the appointment, discipline or removal of subordinate officers or employees in the administrative service of the CITY; and except for the purpose of inquiry, the City Council will deal with the administrative service solely through the CITY MANAGER, and the City Council members will not give orders to subordinates of the CITY MANAGER. i. The City Council members will coordinate with the CITY MANAGER such that criticism of CITY staff members shall be done privately through the CITY MANAGER. j. The City Council members will not interfere with the execution of the powers and duties of the CITY MANAGER. The CITY MANAGER is expected to be appropriately and promptly responsive to all City Council members, collectively and individually, but shall take orders and direction from the City Council when it is sitting as a body in a lawfully -held meeting. 6. Mutual Obligations and Understandings a. Annual performance evaluations are an important way for the City Council and CITY MANAGER to ensure effective communications about expectations and performance. b. The City Council recognizes that for the CITY MANAGER to respond to its needs and to grow in the performance of the CITY MANAGER'S role, it is necessary for the City Council to provide the CITY MANAGER performance feedback. provide the CITY MANAGER performance feedback, the City Council will conduct an evaluation of the CITY MANAGER's performance at least once a year. Performance evaluations for the purpose of mid -course corrections may occur more often than once a year. The City Council may choose to establish a subcommittee to meet with the CITY MANAGER periodically over the course of each year to measure progress on stated goals and priorities. d. The CITY MANAGER's annual performance evaluation shall use criteria developed jointly by the City Council and CITY MANAGER. e. The City Council and CITY MANAGER shall define such goals and performance objectives as they mutually determine are necessary for the proper operation of the At Will Employment Agreement City Manager Peggy Flynn 5 CITY for the attainment of the City Council's policy objectives and shall establish relative priority of the CITY goals and performance objectives. 7. Compensation: a. The CITY agrees to pay CITY MANAGER an annual base salary of $210;000.00, payable in installments at the same time that the other management employees of the CITY are paid. b. The CITY may increase CITY MANAGER'S compensation in such amounts and to such extent as the City Council may determine is desirable on the basis of any annual salary review of CITY MANAGER. 8. Benefits: CITY MANAGER will be entitled to the benefits specified in Attachment 1 which is attached to and made a part of this Agreement. 9. Disability: If CITY MANAGER is permanently disabled or otherwise unable to perform her duties because of sickness, accident, injury, mental incapacity or health for a period of ninety (90) successive days beyond any accrued sick leave, subject to satisfaction of the CITY's reasonably accommodation obligations, the CITY will have the option to terminate this Agreement. Upon termination pursuant to this section, the CITY will have no obligation to pay severance pursuant to Section 21. 10. Use of Vehicle: CITY MANAGER will be provided a monthly automobile allowance of $400.00 in exchange for making her vehicle available for her own use and for CITY -related business and/or functions during, before, and after normal working hours. The monthly automobile allowance is intended to defray costs that the CITY MANAGER incurs in utilizing her personal vehicle for CITY business. The automobile allowance shall appear on the CITY MANAGER's payroll stub as ordinary income and part of her salary but will not be considered part of the CITY MANAGER's base salary for purposes of this Agreement. 11. Vacation, Sick, Administrative and Holiday Leave: a. Vacation leave shall accrue and be credited to CITY MANAGER'S personal account in accordance with Attachment 1. b. Sick leave shall accrue and be credited to CITY MANAGER's personal account in accordance with Attachment 1. At Will Employment Agreement City l�tanager Peggy Flynn 6 c. Administrative leave shall be credited to CITY MANAGER's personal account at the rate of 96 hours per year. The City Council recognizes that it may be difficult for the CITY MANAGER to make full use of her accrued administrative leave during the first two years of the Term. Accordingly, commencing on the Effective Date and expiring February 24, 2021, CITY MANAGER may elect to receive a payment equal ,to CITY MANAGER's unused administrative leave balance in that year of up to fifty (50) hours. Beginning on February 25, 2021 and thereafter, without further action of the PARTIES, unless this Agreement is otherwise amended, CITY MANAGER may elect to receive a payment equal to CITY MANAGER's unused administrative leave balance in that year up to twenty (20) hours. CITY MANAGER may carry forward up to forty (40) hours of unused administrative leave into the next fiscal year. CITY MANAGER may not maintain a balance of more than 136 hours of administrative leave. Carry4o ward administrative leave may only be taken as paid time off, has no cash value, and shall not be included in the totals subject to payment under Section 20(a)(3). d. Holidays will be credited to CITY MANAGER'S account in accordance with Attachment 1. 12. Disability, Health, and Life Insurance: a. The CITY agrees to purchase and to pay during the term of this Agreement, premiums on term life insurance policies equal in amount to one and one-half (1-1/2) times the amount of the annual base salary of CITY MANAGER as specified in Section 7. b. The CITY agrees to provide and to pay the CITY's share of premiums for medical, dental, and vision insurance for CITY MANAGER and her dependents in accordance with Attachment 1. CITY MANAGER will have the right to select medical, dental and vision coverage from the plan options specified in Attachment 1. c. The CITY agrees to have in force and make required premium payments for CITY MANAGER'S participation in the CITY'S current group disaty plan. 13. Retirement: a. CITY MANAGER has previously been enrolled into the California Public Employment Retirement System ("PERS") and CITY will continue CITY MANAGER's enrollment in PERS during the Term and make all required contributions on the CITY MANAGER's behalf making up the entire employer's share of CITY MANAGER's participation in PERS. CITY MANAGER will pay all required contributions on the CITY MANAGER's behalf malting up the entire employee's share of CITY MANAGER's participation in PERS. b. -CITY MANAGER has been enrolled in PERS through an agency that participates in PERS as a classic employee and has participated and shall continue to participate At Will Employment agreement City Manager Peggy 1=1ynn 7 during the Term in the 2% at 60 formnia retirement plan provided to Miscellaneous PERS members, calculated at the three-year final average rate of compensation. c. CITY MANAGER's participation in the PERS 2% at 60 retirement plan for Miscellaneous PERS members pursuant to the CITY's contract with PERS includes the optional benefits in the CITY's PERS contract that are specified in Attachment 1. 14. Bonding: The CITY will bear the full cost of any fidelity or other bonds required of CITY MANAGER under any law or ordinance. 15. Continuity: In the event of a change of the elected representation of the -City Council, there will be a ninety (90) day period commencing upon the seating of new City Council members when the City Council may take no action regarding the provisions of this Agreement, unless both PARTIES agree or the action is for cause in accordance with Section 20(e). 16. Attorney Fees: In the event of any suit or action by either PARTY under this Agreement, the prevailing party in the suit or action will be entitled to reasonable attorney fees and costs to be fixed by the court. 17. Other Terms and Conditions of Employment: The City Council, in consultation with CITY MANAGER, may fix any other terms and conditions of employment, as it may determine from time to time, relating to the performance of CITY MANAGER's duties, provided such terms and conditions are not inconsistent with or in conflict with the terms of this Agreement, the Petaluma City Charter, the Petaluma Municipal Code or any other applicable state or federal law. 18. Indemnification: a. The CITY will defend, hold harmless and indemnify CITY MANAGER against any. tort, civil rights, personnel, discrimination, or professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of CITY MANAGER's duties in accordance with the provisions of California Government Code Section 825 and following, as amended from time to time, and provide a defense in accordance with California Government Code Section 995 and following. Notwithstanding anything to the contrary in this Agreement, the CITY reserves the right to refuse to provide a defense of CITY MANAGER for the reasons set forth in California Government Code Section 995.2 or other applicable provisions of law. At will Employment Agreement City 1�Ian�ger Peggy Flynn 8 b. Following termination of this Agreement for any reason, the CITY agrees to pay CITY MANAGER reasonable consulting fees and travel expenses when CITY MANAGER serves as a witness, advisor and/or consultant to the CITY. regarding pending litigation. 19. Notices: Notices pursuant to this Agreement must be in writing given by deposit in the custody of the United States Postal Service, first class postage prepaid, addressed as follows: a. CITY: Mayor and City Council 11 English Street Petaluma CA 94952 b. CITY MANAGER: Peggy Flynn 11 English Street Petaluma CA 94952 Alternatively, notices required pursuant to this Agreement maybe personally served in the same manner as is applicable to civil judicial process. Notice will be deemed given as of the date of personal service or as of the date of deposit of such written notice, postage prepaid, with the United States Postal Service. 20. Tej•mination of Employment: a. Termination by Either Party i. The PARTIES may terminate this Agreement with or without cause by giving notice in accordance with Section 2, Section 19, and this Section 20 of this Agreement, as applicable. During the period following notice of termination by either PARTY and until the termination becomes effective, all the rights and obligations of the PARTIES under this Agreement will remain in effect. Upon separation from CITY employment for any reason, CITY MANAGER will be paid for all earned, accrued, and unused vacation, administrative leave, and floating holidays, subject to the limits on payments for unused administrative leave in Section 11(c). At \will Employment Agreement City 3\tanager Pe�;�y Flym� b. Termination by CITY MANAGER without Cause: i. For purposes of this Agreement, termination by CITY MANAGER without cause will be deemed to occur when CITY MANAGER gives the City Council written notice of termination of this Agreement without cause as defined in this provision. ii. CITY MANAGER will give the CITY a minimum of sixty (60) days written notice in advance of termination without cause, unless the PARTIES agree otherwise. . For purposes of this Agreement, termination by CITY MANAGER without cause means termination in the absence of an uncured material breach by CITY of this Agreement as defined in provision (c) of this section. c. Termination by CITY MANAGER with Cause: i. For purposes of this Agreement, termination by CITY MANAGER with cause will be deemed to occur when CITY MANAGER gives the City Council written notice of termination of this Agreement with cause as defined in this provision. ii. CITY MANAGER must declare material breach of this Agreement in writing to the CITY specifying the basis for the declaration, and the CITY will have thirty (30) days from receipt of notice to cure the declared material breach. iii. For purposes of this Agreement, termination by CITY MANAGER with cause means termination for CITY's material breach of this Agreement declared by CITY MANAGER and not cured by the CITY in accordance with this provision. d. Termination by CITY without Cause. i. For the purposes of this Agreement, termination by CITY without cause will be deemed to occur when: A. A majority of the City Council votes to terminate CITY MANAGER at a duly authorized public meeting without cause, as defined in provision (e) (1) of this Section. B. The City Council, the citizens of the CITY, or the California Legislature acts to amend any provisions of the City Charter, CITY codes, or other legislation pertaining to the role, powers, duties, authority, or responsibilities of the CITY MANAGER in a way that substantially changes the form of CITY government or the role, powers, duties, authority At Will Employment Agreement City I\9an ager Peggy Flynn l0 or responsibilities of the CITY MANAGER. CITY MANAGER will have the right to declare that such amendments in the absence of cause as defined in provision (e)(1) of this Section constitute termination without cause. C. The City Council unilaterally reduces the base salary, compensation or any other financial benefit of CITY MANAGER. CITY MANAGER will have the right to declare that such reduction in the absence of cause as defined in provision (e)(I) of this Section constitutes termination without cause. D. The CITY will give CITY MANAGER a minimum of sixty (60) days written notice in advance of termination without cause in accordance with this provision unless the PARTIES agree otherwise. e. Termination by CITY for Cause: i. For purposes of this Agreement, cause for termination by CITY means: A. Willful and repeated failure to perform the duties of CITY MANAGER or other material breach of this Agreement declared in writing by CITY by notice in accordance with Section 19 and this Section 20 and not cured within thirty days of receipt of notice of the declared material breach; B. Conviction of CITY MANAGER for an employment related criminal act; C. Conviction of CITY MANAGER for a felony; or D. A finding by a court, jury, State or Federal Attorney General, the Fair Political Practices Commission, or any successor agency, that CITY MANAGER engaged in intentional or negligent misconduct in relation to the performance of the CITY MANAGER's duties. ii. Prior to terminating this Agreement for cause, the CITwill give CITY MANAGER at least ten (10) days prior written notice of the charges or other alleged cause for termination. Within the ten-day notice period, but not earlier than five days after the notice has been given, the City Council will meet with CITY MANAGER in closed session and give CITY MANAGER an opportunity to address the City Council regarding the alleged cause for termination. CITY MANAGER may also choose to have complaints or charges brought against her heard in open session in accordance with California Government Code Section 54957, subdivision (b), paragraph 2. After hearing CITY MANAGER's response to the alleged cause for termination, the City Council will decide whether to terminate this Agreement and inform CITY MANAGER in writing of its decision. At Will F_mployment Agreei��ent City I��lana��er Pei=gy Flynn iii. CITY MANAGER will not be entitled to severance pursuant to Section 21 of this Agreement upon termination by CITY for cause in accordance with this section. 21. Severance Pay: a. If CITY terminates this Agreement during its term without cause as defined in Section 20(e), then CITY MANAGER will be entitled to severance payment equal to seven (7) months of base salary specified in Section 7 at the rate in effect at the time of termination, plus CITY's share of the cost of continuing health, dental, and vision insurance for CITY MANAGER and all dependents as provided in Section 12(b) and Attachment 1 for seven (7) months. At CITY MANAGER's election, and pursuant to CITY MANAGER's written instructions at the time of termination, severance pay shall be paid either in a lump sum cash payment within thirty (30) days of the date of termination, or in equal monthly payments. Should CITY MANAGER elect to receive severance pay in equal payments, the number of such monthly payments will not exceed seven (7). b. All payments required under this Section are subject to and shall be interpreted to comply with the limitations set forth in California Government Code Sections 53260 and 53261. The CITY's share of the cost of Health, Dental and Vision benefits shall continue for the same duration of time as covered in the settlement or until CITY MANAGER finds other employment, whichever occurs first. c. If CITY terminates CITY MANAGER for cause in accordance with Section 20(e), she will not be entitled to a severance payment. 22. Reimbursement Required for Conviction for Crime Involving Abuse of Office. a. In accordance with California Government Code Sections 53243, 53243.1, and 53243.2, if CITY MANAGER is convicted of a crime involving an abuse of her office or position, all the following will apply: i. If CITY MANAGER is provided with paid leave salary pending an investigation, CITY MANAGER must fully reimburse the CITY any salary provided for that purpose. ii. If the CITY pays for the legal criminal defense of CITY MANAGER, CITY MANAGER must fully reimburse CITY any funds provided for that purpose. . If this Agreement is terminated, any cash settlement related to the termination that CITY MANAGER may receive from the CITY imist be fully reimbursed to CITY, or, if a cash settlement related to termination of this Agreement has not yet been paid, the CITY is excused from paying the cash settlement. At \✓ill Employment Agreement City Ntanager Peggy Flynn 12 b. For the purposes of this section, abuse of office or position means either: i. an abuse of public authority, including, but not limited to, waste, fraud, and violation of the law under color of authority; or ii. a crime against public justice, including, but not limited to, a crime described in Title 7 (commencing with Section 92) of Part 1 of the California Penal Code. 23. Miscellaneous: a. This Agreement reflects the entire agreement between the PARTIES. This Agreement may not be modified, except by written agreement executed by both PARTIES. b. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, will be deemed severable, will not be affected and will remain in effect. c. This Agreement will be governed by the laws of the State of California. d. The PARTIES agree that any ambiguity in this Agreement will not be construed or interpreted against, or in favor of, either PARTY. e. This Agreement will bind and inure to the benefit of the successors, heirs and assigns of the PARTIES. [Signatures on next page] At \\gill Employment Agreement City Manager Peggy Flynn l� CITY MANAGER By Peggy Fiynn, City Manager DATED: ATTEST: Claire Cooper City Clerk APPROVED AS TO FORM: Eric W. Danly City Attorney 14 CITY Teresa Barrett, Mayor DATED: At \A�ill Employment Agreement City Manager Peggy Flynn ATTACHMENT 1 BENEFITS 1. Vacation Leave Accrual Rate. Vacation leave hours shall accrue at the rate specified in the schedule below: Years of Service Vacation Accrual khrS 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 The total amount of accrued but unused vacation may not exceed three (3) times the rate of annual accrual as specified in the schedule above. Upon separation from employment PEGGY FLYNN shall be paid for all accrued unused vacation leave. 2. Sick Leave A. Sick Leave — Eli�ibilit Sick leave is not a right, which may used at discretion, but rather, sick leave shall be used only in case of personal illness, disability or the serious illness or injury of a family member, which requires the attention of PEGGY FLYNN. The term family members shall include: spouse, children, parents, spouse's parents, brothers, sisters or other individuals whose relationship to PEGGY FLYNN is that of a dependent or near dependent. B. Sick Leave —Accrual Sick leave shall accrue at the rate of eight (8) hours for each month of continuous service. C. Sick Leave —Transfer If PEGGY FLYNN wishes to donate hours of sick leave to another employee she may do so by sending a written request to the Human Resources office naming the individual to receive the sick leave and the amount donated, with the following restrictions: i. PEG FLYNN must retain a minimum of 160 hours of sick leave to be eligible to transfer sick leave. ii. Transfer amounts shall be limited to the number of actual hours needed and used by the receiving employee. iii. 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. iv. Employees may not, buy or sell sick leave. Only the time may be transferred. v. Employees may not transfer sick leave upon separation of service. vi. Transfer of sick leave shall be allowed. vHe No more than ninety (90) workdays of sick leave may be received by an employee for any one illness or injury. D. Sick Leave —Retirement Payout In the event of the death or retirement and the completion of ten (10) or more years of continuous employment with the City, PEGGY FLYNN shall be paid or shall receive a benefit of fifty percent (50%) of her accumulated but unused sick leave not to exceed four -hundred -eighty (480) hours. She may elect not to receive this benefit and instead place all sick leave hours into the CalPERS sick leave conversion benefit. 3. Holidays and Holiday Leave. The City observes the following twelve (12) holidays: 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 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 2 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. Floating Holiday. Each fiscal year PEGGY FLYNN shall be provided one floating holiday which may be taken by her at a time she selects, subject to operational requirements of the City. 5. Health Benefits A. PEMHCA Contribution The City currently provides health benefits through the California Public Employees' Retirement System (Cairn 3) Health Benefits Program under the Public Employees' Medical and Hospital Care Act (PEMHCA). The City's employer contribution for each employee shall be the minimum required by PEMHCA. The City pays this contribution directly to CalPERS. B. Additional Benefit Amount Paid by the City The City shall pay the additional contribution amount specified in the schedule below entitled "Total 2019 City's Contribution Rate" for PEGGY FLYNN and her covered family members. J C. Contribution PEGGY FLYNN shall contribute to her CalPERS Health Premium in the amounts less the City's PEMHCA contribution and less the additional benefit paid by the City. 6. Health Benefits —Retired A. Retired — Ca1PERS 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: i. Employee must be a member of Ca1PERS; and ii. 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. B. "Unequal Contribution" Method for Health Care Premium Payments for Retirees The City uses the "unequal conh•ibution" method for health care premium payments for annuitants (retirees) as pei7nitted 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 2019 Health PEMHCA Total 2019 Rates (Based on City's Contribution City's Coverage 2019 Kaiser Benefit (Added to the Contribution Permanente Contribution City's Benefit Rate Rates) Contribution) Employee Only $768.25 $600.64 $136.00 $736.64 Employee +1 $1,536.50 $15330.48 $136.00 $1,466.48 Employee +2 or more $1,997.45 $1,768.38 $136.00 $1,904.38 C. Contribution PEGGY FLYNN shall contribute to her CalPERS Health Premium in the amounts less the City's PEMHCA contribution and less the additional benefit paid by the City. 6. Health Benefits —Retired A. Retired — Ca1PERS 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: i. Employee must be a member of Ca1PERS; and ii. 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. B. "Unequal Contribution" Method for Health Care Premium Payments for Retirees The City uses the "unequal conh•ibution" method for health care premium payments for annuitants (retirees) as pei7nitted 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 2010) = $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 20125 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 marls. 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. C. Ca1PERS Annuitant —PEMHCA Health Benefits In accordance with the PEMHCA provisions if an employee is a Ca1PERS annuitant as defined by CalPERS and receives health benefits under the PEMHCA, the employee is eligible to receive the City's PEMHCA contribution amount specified below, regardless of the number of years of service with the City of Petaluma. D. Less Than 20 Years of Service —Not Receiving PEMHCA Health Benefits A retired employee with less than twenty (20) 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. E. Less Than 20 Years of Service —Receiving PEMHCA Health Benefits 5 A retired employee with less than twenty (20) years of service with the City of Petaluma who is a CalPERS annuitant as defined by CalPERS and enrolled in the CalPERS health benefit program is eligible to receive the City's PEMHCA contribution amount specified in the chart below: Calendar Year City Monthly PEMHCA contribution 2019 $136.00 2020 Minimum PEMHCA contribution as set by CalPERS F. 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. G. 20 Years or More of Service-_I�eceivin� PEMHCA Health Benefits A retired employee with twenty (20) years or more of service with the City of Petaluma who is a CaIPERS annuitant as defined by CalPERS and enrolled in the CalPERS health benefit program shall receive a benefit payment of one -hundred - forty dollars ($140.00) per month minus the City's monthly PEMHCA as specified in the chart below. The following chart indicates the amount of the City's PEMHCA contribution and the amount of the cash payment to the retiree when the retiree is receiving PEMHCA health benefits: Calendar City Monthly City Monthly Cash Retiree Total Year PEMHCA Benefit Benefit contribution Amount $136.00 $4.00 $140.00 2019 Minimum PEMHCA Total benefit amount of $140.00 I contribution as set by minus City monthly PEMHCA $140.00 t 2020 CalPERS. contribution H. 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-hundred4orty dollars ($140.00) at the beginning of the following month. 7. California Public Employees' Retirement System. Effective January 1, 2013 the City of Petaluma became subject to the Public Employees' Pension Reform Act of 2013 (PEPRA) and benefits offered to newly hired employees will be in accordance with PEPRA. 6 Prior to January 1, 2013, the City established a different level of benefits (two-tiered retirement) for Miscellaneous employees. The amended contract provides that Miscellaneous employees hired on or after December 28, 2012 shall receive the 2% at 60 formula retirement plan and the three-year final average compensation. 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). • 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 defer that portion of PEGGY FLYNN'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. 8. Cash In -Lieu of Health and Dental Benefits. If PEGGY FLYNN has health benefit insurance coverage from a source other than the City, or health benefit insurance coverage from a City employee, she may request cash in lieu of health benefits. To be eligible for the cash in -lieu benefit program she must waive her coverage under the City's health benefits, agree to the terms and conditions of the cash in -lieu benefit program and have written verification of health benefits insurance. Fo�� All Em�loyees Hzfed Oji 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 W7 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 pIan. 9. Section 125 Plan. The City of Petaluma shall make available to PEGGY FLYNN 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 a tax savings through the following programs: 7 Pre -Tax Health Insurance Premiums This program allows employees to pay his or her share of health insurance premiums with pre-tax dollars. Flex Spen ding�Accounta (FSA0) i. 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. ii. Dependent Care Reimbursement This program permits employees to pay for most child and or dependent care expenses with pre-tax dollars. 10. Dental Insurance. The City shall provide a dental plan and pay the total premium costs for PEGGY FLYNN and her eligible dependents. The maximum benefit amount is two - thousand dollars ($2,000.00) 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 $2,000.00 lifetime maximum per person). 11. Vision Insurance. The City shall provide a vision plan for PEGGY FLYNN and her 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 dollar ($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). 12. Employee Assistance Program. The City will provide an Employee Assistance Program to PEGGY FLYNN and her immediate family. 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. 13. Long Term Disability Insurance. The City shall provide PEGGY FLYNN with the same long-term disability benefit plan as provided to City employees as outlined in Attachment 2 — Long Term Disability Insurance for Employees of City of Petaluma. Currently that benefit plan is provided through CIGNA and replaces 60% of annual earnings to a maximum of $5,000 per month after being disabled for 60 days. 14. Deferred Compensation. The City of Petaluma shall make available to PEGGY FLYNN a Deferred Compensation Plan. 0 15. Industrial Injury Leave. Benefits shall be payable in situations where PEGGY FLYNN'S absence is due to industrial injury as provided in California State Workers' Compensation Law. During the first three (3) workdays when her absence has been occasioned by injury suffered during her employment and she receives workers' compensation benefits, she shall receive full pay. Following this period, sick leave may be a supplement to the workers' compensation benefits provided. Compensation is at 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 she is certified "permanent and stationary" by a competent medical authority. The City shall pay her the regular salary, based on the combination of the workers' compensation benefits plus 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 PEGGY FLYNN 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 his Agreement. 16. Bereavement Leave. PEGGY FLYNN shall be granted up to thirty-two (32) hours of bereavement leave in the event of death in her 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 PEGGY FLYNN 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. 17. Victims of Domestic Violence and Sexual Assault Leave. The City of Petaluma provides appropriate leave, in accordance with California Labor Code Section 230. 18. Military Leave. The City of Petaluma shall grant military leave benefi ts 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. 9 19. Election Officer and VotinI4 Leave. If PE Gy FLYNN'S actual work schedule otherwise would prevent her from voting in any State, County, or General election, she may be granted up to two (2) hours of paid time to vote, in accordance with Election Code 14000. She must provide the City with at least two (2) working days' notice that she will be taking time off to vote. 20. School Visitation Leave. The City of Petaluma provides up my (40) hours of unpaid leave in a year to participate in the child's school activities, in accordance with Labor Code section 230.8. 21. Leave of Absence without Pay. The City Council may grant PEGGY FLYNN with a leave of absence without pay pursuant to State and Federal Law. Good cause being shown by a written request, the City Council may extend such leave of absence without pay or benefits for an additional period not to exceed six (6) months. No such leave shall be granted except upon written request of PEGGY FLYNN setting forth the reason for the request, and the approval will be in writing. 22. Jury Duty Leave. Should PEGGY FLYNN be summoned for jury duty she 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. She may retain payment for travel but shall make payable to the City any and all fees which she may receive in payment for service as a juror. For Grand Juries this compensation shall not extend beyond twenty (20) working days. 23. Family Care and Medical Leave (FMLA & CFRA). FMLA and/or CFRA Leave The City shall provide family and medical care leave for PEGGY FLYNN 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. FMLA and/or CFRA —Second Opinion PEGGY FLYNN 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. ATTACHMENT 2 Long-term Disability Insurance Coverage–paid byyouremp(oyer Eligibility–Active, full-time employees regularly working a minimum of zo hours per week are eligible immediately. Monthly Benefit–This plan pays a benefit of up to 6o%of your monthly covered earnings —to a maximum of s5,000 per month. Your benefit amount will be reduced by any amounts payable to you by any of the sources listed underthe "Effects of Other Income Benefits" section. Definition of Disability– Disability means that, solely because of a covered injury or sickness, you are unable to perform the material duties of your regular occupation and you are unable to earn 80% or more of your indexed earnings from working in your regular occupation. After benefits have been payable for 24 months, you are considered disabled if solely due to your injury or sickness, you are unable to perform the material duties of any occupation for which you are (or may reasonably become) qualified by education, training or experience, and you are unable to earn 80% or more of your indexed earnings. We will require proof of earnings and continued disability. Covered Earnings– Covered earnings means your wages or salary, not including bonuses, commissions, overtime pay and other extra compensation. Elimination Period–You must be disabled for 6o days before benefits may be payable. Benefit Duration– Once you qualify for benefits underthis plan, you continue to receive them until the end of the benefit period shown below, or until you no longer qualify for benefits, whichever occurs first. Your benefit period begins on the first day after you complete your elimination period. And, should you remain disabled, your benefits continue according to the following schedule, depending on your age at the time you become disabled. Age at Age 62 or younger 63 64 65 66 67 68 69+ Disability Duration of To age 65 or the date Payments the 42 nd itis monthly 36 30 �4 21 18 I.5 12 (months) benefit is payable, if later Termination of Disability Benefits Your benefits will terminate on the earliest of any ofthe following dates: the date the insurance company determines you are no longer disabled; the date you earn from any occupation more than the percentage of indexed earnings as defined in your definition of disability; the date the maximum benefit period ends, the date you cease to get appropriate care, the date you die; the date you refuse to participate without good exb 01/2019 Cigna cause in all required phases of the rehabilitation plan, the date you fail to cooperate with us in the administration of the claim. Benefits may be resumed if you begin to cooperate in the rehabilitation plan within 3o days of the date benefits terminated. Effects of Other Income Benefits—The disability benefit provided by this plan is a total benefit; that is, it will be reduced by any disability benefits payable on behalf of you or your dependents, or a qualified third party on behalf of you or your dependents, whether or not you are actually receiving them. Other income sources that may reduce your benefits underthis plan include: Any Social Security disability or retirement benefits you or any third party receive (or are assumed to receive) on your own behalf; or which your dependents receive (or are assumed to receive) because of your entitlementto such benefits. — Benefits payable by a Canadian and/or Quebec provincial pension plan. Amounts payable underthe Railroad Retirement Act. — Amounts payable under local, state, provincial orfederal government disability or retirement plan or law as it pertains to the employer. Employer -paid portion of company retirement plan benefits. Amounts payable by company sponsored sick leave or salary continuation plan. Amounts payable by any franchise or group insurance or similar plan. Benefits payable underwork-loss provisions of any mandatory "no fault" auto insurance. Any amounts paid on account of loss of earnings or earning capacitythrough settlement, judgment, arbitration or otherwise, where a third party may be liable, regardless of whether liability is determined. Amounts payable under any workers' compensation (including temporary or permanent disability benefits), occupational disease, and unemployment compensation. This includes damages, compromises or settlements paid in place of such benefits, whether or not liability is admitted. Income sources that WILL NOT reduce your benefits underthis plan are: — Benefits paid by personal, individual disability income policies. Individual deferred compensation agreements. Employee savings plans, including thrift plans, stock options or stock bonuses. — Individual retirement funds, such as IRA or 401(k) plans. Profit-sharing, investment or other retirement or savings plans maintained in additionto an employer- sponsored pension plan. Additional Plan Details Earnings While Disabled During the first z4 months that benefits are payable, benefits will be reduced if benefits plus income from employment exceeds l00% of pre- disability covered earnings. Afterthat, benefits will be reduced by So%of earnings from employment. Pre-existing Conditions Benefits are not payable for medical conditions for which you incurred expenses, took prescription drugs, received medical treatment, care or services (including diagnostic measures,) or for which a reasonable person would have consulted a physician during the 3 months just priorto the most recent effective date of insurance. exb 01/2019 Benefits are not payable for any disability resulting from apre-existing condition unlessthe disability occurs afteryou have been insured underthis plan for at least 12 months after your most recent effective date of insurance. This limitation also appliesto newly added or increased benefits. Limited Benefit Period Disabilities caused by or contributed to by any one or more of the following conditions are subject to a time limit of 24 months: Anxiety -disorders, delusional (paranoid) or depressive disorders, eating disorders, mental illness, somatoform disorders (including psychosomatic illnesses). Benefits are payable during periods of hospital confinement for these conditions for Cigna hospitalizations lasting more than 14 consecutive days that occur before the 24 -month lifetime limit is exhausted. Once the 24 -month benefits are exhausted, the plan pays no further benefits. Disabilities caused by or contributed to by any one or more of the following conditions are subject to a lifetime limit of 24 months: Alcoholism, drug addiction or abuse. Benefits are payable during periods of hospital confinement forthese conditions for hospitalizations lasting more than 14 consecutive days that occur before the 24 -month lifetime limit is exhausted. Once the 24 -month benefits are exhausted, the plan pays no further benefits. Exclusions This plan does not pay benefits for a disabilitywhich results, directly or indirectly, from any of the following: Suicide, attempted suicide, or whenever you injure yourself on purpose; war or any act of war, whether or not declared; active participation in a riot; commission of a felony; the revocation, restriction or non -renewal of your license, permit or certification necessary for you to perform the duties of your occupation, unless solely due to injury or sickness otherwise covered by the policy. In addition, we will not pay disability benefits for any period of disability during which you are incarcerated in a penal or corrections institution for any reason. Plan Termination Coverage terminates ifthe group policy is terminated, if you cease to be in active service, if you are no longer a member of an eligible class of employees, the day after the last date for which premium has been paid by you or the employer, or the date you become eligible for a plan of benefits intended to replace this coverage. If you are disabled and receiving benefits under this plan, your benefits and coverage will continue until the expiration of your benefit period, or until you no longer qualifyfor benefits underthe plan, whichever comes first. When Coverage Takes Effect Your coverage takes effect on the later of the program's effective date, the date you become eligible, the date we receive your completed enrollmentform, or the date you authorize any necessary payroll deductions. If you have to submit evidence of good health, your coverage takes effect on the date we agree, in writing, to cover you. If you're not actively at work on the date your coverage would otherwise take effect, you'll be covered on the date you return to work. Family Survivor Benefit If you die while receiving disability benefits, we will pay a survivor benefit based on i00% of the total of your last month's benefit plus the amount of any ability earnings by which this benefit had been reduced forthat month. This plan pays a single lump sum equal to 3 months of benefits. We pay this benefit directly to your lawful spouse, or to your children in equal shares, if there is no lawful spouse. If you have no lawful spouse or children, we pay this benefit to your estate. This information is a brief description of the importantfeatures of the plan. It is not a contract. Terms and conditions of coverage are set forth in Group Policy No. LK -960782. Please referto yourCertificate of Insurance or Summary Plan Description for more detailed information. Coverage is underwritten by Life Insurance Company of North America, a Cigna company. "Cigna" and theTree of Life logo are registered service marks of Cigna Intellectual Property, Inc. © Cigna 2014 exb 01/2019