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DATE: September 9, 2019
TO: Honorable Mayor and Members of the City Council
FROM: Peggy Flynn, City Manager6t
Charlie Castillo, Director of Human Resources
SUBJECT: Resolution Revising the Compensation Plan for Employees in Unit 8 (Department
Directors and Assistant City Attorneys)
RECOMMENDATION
It is recommended the City Council adopt the attached Resolution Revising the Compensation
Plan for Employees in Unit 8 (Department Directors and Assistant City Attorneys).
BACKGROUND
Unit 8 consists of the department heads and the two Assistant City Attorneys. The individuals in
this unit serve in at -will positions at the pleasure of the City Manager and are compensated
pursuant to the Compensation Plan for the Unit, which is approved by the City Council.
Employees in Unit 8 are not represented by a recognized employee organization. The Unit 8
Compensation Plan expired on April 30, 2019.
Negotiations with the City's miscellaneous bargaining units, Units 4, 9 and 11 of the Petaluma
Professional and Mid -Management Association (PPMMA), and Units 1, 2 and 3, the employees
represented by the American Federation of State, County, and Municipal Employees (AFSCME)
were conducted in 2018. Negotiations resulted in continuation of the 95/5% medical premium
formula that was approved in December 2017 for AFSCME and January of 2018 for PPMMA,
and a three percent salary increase effective July 1, 2018 for AFSCME and October 21, 2018 for
PPMMA. In good -faith, the City chose to hold off on changing the Compensation Plan for Unit 8
in hopes of resolving negotiations with the remaining mid -management groups first.
Understanding that negotiations can take time and that there has been continuing dialogue
between the remaining units, the City has decided to move forward with Unit 8 changes to
adequately update the unit's benefits and compensation structure.
DISCUSSION
Recommended revisions to the Unit 8 Compensation Plan (Plan) include the same benefits
awarded to AFSCME and PPMMA: continuation of the 95/5% medical formula, and a three
percent salary increase applied following City Council ratification of the updated Compensation
Plan, and effective retroactively to May 1, 2019. In addition, the uniform allowance for both
Police and Fire Chief, members of Unit 8, is increased from $300 a year to $1,500 to address the
cost of maintaining their uniforms and for internal parity with the City's other Public Safety
groups.
PUBLIC OUTREACH
There was no specific outreach performed in relation to this item aside from the normal public
meeting agenda process.
FINANCIAL IMPACTS
The estimated total cost of the salary increase and uniform pay is $72,800 of which $67,000 is
General Fund and $5,800 is from other funding sources. The 95/5% medical premium formula
was approved for the period April 2018 to April 2019 and will continue to be available through
April 2020. There is no additional cost for this portion of the agreement. A budget adjustment in
the amount of $72,800 will be brought forward in conjunction with the 15t quarter budget
adjustments.
ATTACHMENTS
Resolution with Exhibit A Compensation Plan
W
ATTACHMENT 1
RESOLUTION REVISING THE COMPENSATION PLAN FOR EMPLOYEES IN UNIT
8 (DEPARTMENT DIRECTORS AND ASSISTANT CITY ATTORNEYS)
WHEREAS, the Department Directors and Assistant City Attorneys in Unit 8 are not represented
by any recognized employee organization; and
WHEREAS, salaries, benefits, and working terms and conditions for these employees are
memorialized in the Compensation Plan for Unit 8; and
WHEREAS, the current Compensation Plan for Unit 8 was approved by the City Council in
April 2018 and was effective May 1, 2018 through April 30, 2019; 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 May 1, 2019 through
April 30, 2020 Compensation Plan for Unit 8 and recommends the City Council ratify said Compensation
Plan.
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 retroactive to May 1,
2019.
EXHIBIT A
COMPENSATION PLAN
between
CITY OF PETALUMA
and
DEPARTMENT DIRECTORS
May 1, 2019 THROUGH April 30, 2020
UNIT 8
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
SECTION 4 — HOLIDAYS..........................................................................................1
4.1 Holidays — Fixed Holidays
4.2 Holidays — Floating Holidays
SECTION5 — 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........................................................................3
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 .................5
SECTION 13 — LEAVES — SCHOOL VISITATION LEAVE...............................................6
SECTION 14 — LEAVES — LEAVE OF ABSENCE WITHOUT PAY....................................6
SECTION 15 — LEAVES — JURY DUTY LEAVE.............................................................6
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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.......................................6
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.........................................................................14
SECTION 27 — LIFE INSURANCE.............................................................................14
SECTION 28 — EMPLOYEE ASSISTANCE PROGRAM.................................................14
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SECTION29 — 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
19
SECTION 1 - TERM OF COMPENSATION PLAN
This Compensation Plan shall be effective commencing May 1, 2019 and ending April 30, 2020.
SECTION 2 — SALARIES
2.1 Salaries
Salary Ranges shall be as specified in Exhibit "A" for each classification.
Effective the first full pay period following approval by the City Council, all unit members
shall receive a three percent (3%) base wage increase retroactive to May 1, 2019.
2.2 Salaries — Emergency peration Center
Employees of Unit 8 who are required to work when called to an activated Emergency
Operation Center (EOC) local emergency shall be paid at their regular hourly rate for all
hours beyond their normal workday.
SECTION 3 — SPECIAL COMPENSATION — UNIFORM ALLOWANCE
The classifications of Police Chief and Fire Chief shall receive one thousand five hundred dollars
($1500.00) 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, 2019 through April 30, 2020 are as follows:
Memorial Day
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
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
2019-2020 City of Petaluma / Unit 8 Compensation Plan
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.
SECTION 5 — 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
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.
2019-2020 City of Petaluma / Unit 8 Compensation Plan
Vacation time shall not be accumulated' in excess of three (3) years or three times an
employee's annual vacation accrual as indicated in the vacation chart above.
5.2 Vacation — Scheduling
The times during a calendar year in which an employee may take his/her vacation shall be
determined by the City Manager with due respect for the wishes of the employee and
particular regard for the needs of the service. If the requirements of the service are such that
an employee cannot take part or all of his/her annual vacation in a particular calendar year,
such vacation shall be taken during the following calendar year.
5.3 Vacation - Adjustment for Holidays
Employees who are granted time off for scheduled holidays shall not have such holidays
charged as vacation leave when the vacation leave and holiday(s) coincide.
5.4 Vacation — Payment at Separation
Employees who separate City employment shall be paid for all accrued unused vacation
leave earned prior to the effective date of separation.
SECTION 6 — LEAVES — ADMINISTRATIVE LEAVE
6.1 Administrative Leave — Annual Credit of Leave
Employees shall be credited with eighty (80) hours of administrative leave each fiscal year.
6.2 Administrative Leave — Carry Forward of Leave
Employees may carry forward up to forty (40) hours of unused administrative leave into the
next fiscal year. Employees shall not maintain balances of more than one hundred and
twenty (120) hours.
6.3 Administrative Leave - Pro -Ration of Leave Hours
Employees hired or appointed after July 1 shall be credited with a pro -rated amount of
administrative leave based upon hire or appointment date through June 30.
6.4 Administrative Leave — Annual Payment for Unused Leave
Employees shall receive payment for up to twenty (20) hours of unused administrative leave
at the end of the fiscal year. Payment shall be at the employee's base pay rate as of June 30.
Payment shall be made on the last pay period of the fiscal year.
6.5 Administrative Leave - Payment at Separation
Employees who separate employment shall receive payment of up to forty (40) hours of
unused administrative leave. Payment shall be at the base pay rate at the time of separation.
SECTION 7 — LEAVES — SICK LEAVE
7.1 Sick Leave — Eligibility
Sick leave with pay shall be granted to all employees as set forth in this section. Sick leave
is not a right, which an employee may use at his discretion, but rather, shall be used only in
2019-2020 City of Petaluma / Unit 8 Compensation Plan
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 CalPERS sick leave conversion benefit.
SECTION 8 — LEAVES — INDUSTRIAL INJURY LEAVE
Benefits shall be payable in situations where miscellaneous employee absence is due to industrial
injury as provided in California State Workers' Compensation Law. During the first three (3)
workdays when the employee's absence has been occasioned by injury suffered during his/her
employment and he/she receives workers' compensation, he/she shall receive full pay. Following
this period, sick leave may be a supplement to the workers' benefits provided the employee.
Compensation is at his/her regular rate for a period not to exceed six (6) months, or until such sick
2019-2020 City of Petaluma / Unit 8 Compensation Plan 4
leave is exhausted, or the disability is abrogated, or that employee is certified "permanent and
stationary" by a competent medical authority. The City shall pay him/her the regular salary, based
on the combination of the workers' compensation benefit plus sick leave.
All public safety employees receiving full salaries in lieu of temporary disability payments pursuant
to Section 4850 of the labor code are entitled to accumulate sick leave during such periods of sick
leave. Sick leave for industrial injury shall not be allowed for a disability resulting from sickness,
self-inflicted injury, or willful misconduct.
The City may retire any employee prior to the exhaustion of accumulated sick leave, at which time
all accrued but unused sick leave shall be abrogated, subject only to the limitations provided under
this Compensation Plan.
SECTION 9 LEAVES — BEREAVEMENT LEAVE
An employee shall be granted up to thirty-two (32) hours of bereavement leave in the event of death
in the employee's immediate family. For the purpose of bereavement leave, immediate family shall
mean spouse, qualified domestic partner, father, father-in-law, mother, mother-in-law, brother,
brother-in-law, sister, sister-in-law, child (including stepchildren), step-parents, grandparents and
grandchildren or person with whom the employee has a relationship in loco parentis. Up to an
additional eight (8) hours of accrued sick leave may be granted to supplement bereavement leave.
In the event an employee must travel more than three -hundred (300) miles to attend a funeral or
memorial service, an additional eight (8) hours of bereavement leave shall be granted instead of the
use of eight (8) hours of sick leave.
SECTION 10 — LEAVES — VICTIMS OF DOMESTIC VIOLENCE
AND SEXUAL ASSAULT LEAVE
The City of Petaluma provides appropriate leave, in accordance with California Labor Code Section
230.
SECTION 11— LEAVES — MILITARY•LEAVE
The City of Petaluma shall grant military leave benefits to eligible employees in accordance with
California's Military Leave Laws found in Military & Veteran's Code 389 et seq., the Federal
Uniformed Services Employment and Re-employment Rights Act (USERRA), found at 389 U.S.C.
4301 et seq., and the City of Petaluma Resolution No. 2004-200 N.C.S. Employees in the Ready
Reserves of the Armed Forces who are ordered to active military duty or training under Executive
Order 13223, shall have continued benefits in effect throughout his/her active duty training for a
period of three -hundred sixty-five (365) calendar days or until the date of discharge from military
service, whichever occurs first, unless this policy is changed by action of the City Council.
SECTION 12 — LEAVES — ELECTION OFFICER LEAVE AND VOTING LEAVE
When an employee's actual work schedule otherwise would prevent the employee from voting in any
State, County, or General election, the employee may be granted up to two (2) hours of paid time to
2019-2020 City of Petaluma / Unit 8 Compensation Plan
vote, in accordance with Election Code 14000. The employee must provide the City with at least two
(2) working days' notice that he or she will be taking time off to vote.
SECTION 13 — LEAVES — SCHOOL VISITATION LEAVE
Employees may take up to forty (40) hours in a year to participate in the child's school activities, in
accordance with Labor Code section 230.8.
SECTION 14 — LEAVES — LEAVE OF ABSENCE WITHOUT PAY
The City Manager may grant a regular or probationary employee leave of absence without pay
pursuant to State and Federal Law. Good cause being shown by a written request, the City Manager
may extend such leave of absence without pay or seniority or benefits for an additional period not
to exceed six (6) months. No such leave shall be granted except upon written request of the
employee setting forth the reason for the request, and the approval will be in writing. Upon expiration
of a regularly approved leave or within a reasonable period of time after notice to return to duty, the
employee shall be reinstated in the position held at the time leave was granted. Failure on the part
of an employee on leave to report promptly at its expiration, or within a reasonable time after notice
to return to duty shall be cause for discharge.
SECTION 15 — LEAVES — JURY DUTY LEAVE
Any employee summoned for jury duty shall be entitled to a leave of absence with full pay for such
period of time as may be required to attend the court in response to such summons. Any employee
may retain payment for travel but shall make payable to the City any and all fees which the employee
may receive in payment for service as a juror. For Grand Juries this compensation shall not extend
beyond twenty (20) working days.
SECTION 16 - FAMILY CARE AND MEDICAL LEAVE (FMLA & CFRA)
16.1 FMLA and/or CFRA Leave
The City shall provide family and medical care leave for eligible employees as required by
City policy, state and federal law and as specifically provided in the Federal Family and
Medical Leave Act of 1993 (FMLA) and the California Family Rights Act of 1993 (CFRA).
If possible, employees must provide thirty (30) days advance notice of leave.
16.2 FMLA and/or CFRA — Second Opinion
The employee shall provide the City with a health care provider certification. The City, at
City expense, may require a second opinion on the validity of the certification. Should a
conflict arise between health providers, a third and binding opinion, at City expense shall be
sought.
SECTION 17 — LEAVES — PREGNANCY DISABILITY LEAVE
The City shall provide pregnancy disability leave (PDL) for eligible employees as required by City
policy and applicable law and as specifically provided in the Fair Employment and Housing Act
and the Family Medical Leave Act. If possible, employees must provide thirty (30) days advance
2019-2020 City of Petaluma / Unit 8 Compensation Plan 6
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 CalPERS contract amendment. Effective June 30,
2001, the City provided Police Safety members with the three percent (3%) at fifty (50) formula
retirement plan. The City's contract with CalPERS includes the following optional benefits:
• Fourth Level - 1959 Survivor's Benefit as provided in Section 21574 (June 30, 1996).
• Military Service Credit as provided in Section 21024 (January 4, 1996).
• One -Year Final Compensation as provided in Section 20042 (July 1, 1982).
Credit for Unused Sick Leave as provided in Section 20965 (July 1, 1982).
Cost of Living Allowance two percent (2%) as provided by Section 21329 (July 1,
1982).
Retired Death Benefit of five -hundred dollars ($500.00) as provided in Section 21620
(July 1, 1982).
2019-2020 City of Petaluma / Unit 8 Compensation Plan
• 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 CalPERS
through section 414(h)(2) of the Internal Revenue Code pursuant to City of Petaluma Resolution
90-363 N.C.S.
Effective February 26, 2018, all employees shall pay an additional three percent (3%) towards PERS
retirement. For Classic Safety — Police employees, this three percent (3%) is added to the nine percent
(9%) employee contribution, for a total contribution of twelve percent (12%). Employees subject to
the PEPRA formula shall also pay an additional three percent (3%) on top of their required employee
contribution of twelve -point twenty-five percent (12.25%) but is subject to change by PERS. For
Classic Miscellaneous employees, this three percent (3%) is added to the seven percent (7%) employee
contribution, for a total contribution of ten percent (10%). Employees subject to the PEPRA formula
shall also pay an additional three percent (3%) on top of their required employee contribution of six -
point seventy-five percent (6.75%) but is subject to change by PERS.
2019-2020 City of Petaluma / Unit 8 Compensation Plan E
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 21.2.
21.2 Additional Contribution — Effective January 1, 2019
The amount of the City's additional contribution for current employees and their covered family
members shall be $600.64 for employee only, $1,330.48 for employee plus one, and $1,768.38 for
employee plus two or more. These amounts do not include the City PEMCHA contribution
identified in 21.1. The City's additional contribution shall not exceed these amounts unless and until
a different amount is defined by the compensation plan.
Coverage
2019 Health Rates
PEMHCA
2019 Health Rate
City's Benefit
Total 2019 City's
Employee
(Based on 2019 Kaiser
Contribution
Less the PEMHCA
Contribution of 95%
Contribution Rate
Contribution
Permanente Rates)
(Added to the City's
Contribution
KAISER
Benefit Contribution)
Employee
Only
$768.25
$136.00
$632.25
$600.64
$736.64
$31.61
Employee + 1
$1,536.50
$136.00
$1,400.50
$1,330.48
$1,466.48
$70.03
Employee + 2
$1,997.45
$136.00
$1,861.45
$1,768.38
$1,904.38
$93.07
or more
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
2019-2020 City of Petaluma / Unit 8 Compensation Plan
(B) Employee must retire within one -hundred -twenty (120) days of separation from
employment with the City of Petaluma and receive a monthly retirement allowance from
CalPERS.
22.2 "Unequal Contribution" Method for Health Care Premium Payments for Retirees
The City uses the "unequal contribution" method for health care premium payments for
annuitants (retirees) as permitted under Government Code section 22892. Under this method,
the City is required annually to increase the total monthly annuitant health care contribution to
equal an amount not less than the number of years the City has been in the PEMHCA program
multiplied by five percent (51/o) 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, or 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 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 CalPERS. The retiree is required to contribute to the
cost of the health benefit coverage. The retiree's monthly contribution shall be the cost of the
monthly health benefit premium less the amount of the City's contribution.
22.3 CalPERS Annuitant — PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a CalPERS annuitant as
defined in Section 22.1 and receives health benefits under the PEMHCA, the employee is
2019-2020 City of Petaluma / Unit 8 Compensation Plan 10
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 CalPERS health benefit program does not receive any retiree benefit
from the City.
22.5 Less Than 12 years of Service — Receiving PEMHCA Health Benefits
A retired employee with less than twelve (12) years of service with the City of Petaluma who
is a 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
2018 $133.00
2019 $136.00
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
2018 $133.00 $7.00 $140.00
2019 $136.00 $4.00 $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.
2019-2020 City of Petaluma / Unit 8 Compensation Plan 11
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:
Calendar
City Monthly PEMHCA
City Cash Retiree Benefit
Total
Year
Contribution
Benefit
Amount
2018
$133.00
$7.00
$140.00
2019
$136.00
$4.00
$140.00
Total benefit amount of $140.00
2020
Minimum PEMHCA contribution
minus
the City monthly PEMHCA
$140.00
as set by CalPERS.
contribution.
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 -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 CalPERS Kaiser — Bay -Area Region 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
2019-2020 City of Petaluma / Unit 8 Compensation Plan 12
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.
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 dental plan for the term of the Memorandum of Understanding and pay the total
premium costs for the employee and eligible dependents. The annual maximum benefit amount is two
thousand dollars ($2,000.00) per person. Orthodontic coverage (for dependent children only) shall be
provided at 50% of the dentist's allowed fee (subject to a $2,000 lifetime maximum per dependent
child). Dependent children are eligible for dental and orthodontic coverage from birth to age 26.
2019-2020 City of Petaluma / Unit 8 Compensation Plan 13
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 once a calendar year with a twenty -five -dollar
($25.00) copay. Frames are available once a calendar year with a maximum benefit of one hundred
eighty dollars ($180.00). Single vision, lined bifocal, and trifocal lenses are available once a calendar
year and are covered with no copay.
SECTION 27 — LIFE INSURANCE
The City shall provide employees with life insurance in the amount of one and one-half (1.5) times
the employee's annual salary rounded to the nearest even dollar, not to exceed two -hundred thousand
dollars ($200,000.00)
SECTION 28 — EMPLOYEE ASSISTANCE PROGRAM
The City will provide an Employee Assistance Program to employees and his/her immediate families.
This licensed counseling service will provide assistance and referrals for marriage and family
problems, alcohol and drug dependency, emotional, personal, and stress-related concerns and other
issues. All counseling services are confidential.
SECTION 29 — DISABILITY INSURANCE
The City shall provide for a long-term disability plan, with the premium to be paid for by the City.
SECTION 30 - DEFERRED COMPENSATION
30.1 Deferred Compensation Plan — 457 Plan
The City of Petaluma shall make available to the members of this unit the City's Deferred
Compensation Plan.
30.2 Deferred Compensation Plan — Discretionary Plan — 401(A) Plan
The City of Petaluma shall make available to the members of this unit the City's 401 (A) Plan.
New members will have an opportunity to designate a one-time choice of an additional
employee contribution level within ninety (90) days of their appointment date. For additional
information, contact the Human Resources office.
2019-2020 City of Petaluma / Unit 8 Compensation Plan 14
EXHIBIT A — SALARY TABLE Unit 8
Compensation Plan
Salary Ranges Effective May 1, 2019 Factoring in a
3% Base Wage Increase
Classification
Monthly Salary Range
ASSIST CITY MANAGER
$11,155.42 - $14,475.67*
ASSIST CITY ATTORNEY
$11,115.76 - $13,512.37
DIRECTOR OF HUMAN RESOURCES
$10,738.38 - $13,935.50
DIRECTOR OF ECONOMIC DEVELOPMENT
AND OPEN GOVERNMENT"
$10,738.38 - $13,935.50
DIRECTOR OF FINANCE
$10,738.38 - $13,935.50
DIR OF PUBLIC WORKS & UTILITIES
$11,155.42 - $14,476.66
FIRE CHIEF
$13,421.96 - $16,104.75
POLICE CHIEF
$13,296.31- $17,616.13
*Effective September 1, 2019, the Assistant City Manager monthly salary range will be $12,436.67 -
$16,137.33, which includes an adopted salary adjustment per Resolution# 2019-137 N.C.S.
**The Director of Economic Development and Open Government classification and pay range were
established effective August 5, 2019 per Resolution# 2019-137 N.C.S.
2019-2020 City of Petaluma / Unit 8 Compensation Plan 15