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CC - Item 5D - Adoption of Resolutions No. 2021-47 Establishing Salary and Benefits for City Council, and Resolution 2021-50 Establising Salary and Benefits for Executive ManagementROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER DATE: OCTOBER 26, 2021 SUBJECT: ADOPTION OF RESOLUTIONS NO. 2021-47 ESTABLISHING SALARY AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD AND RESOLUTION NO. 2021-50 ESTABLISHING ANNUAL SALARY AND BENEFITS FOR CLASSIFICATIONS IN THE UNREPRESENTED EXECUTIVE MANAGEMENT GROUP THROUGH JUNE 30, 2023 SUMMARY Resolution No. 2021-47 describes the salary and benefits for the City Council while Resolution 2021-50 describes salary and benefits for Executive Management (formerly known as Management) employees of the City effective July 1, 2021 through June 30, 2023. DISCUSSION The salary for the City Council is set by Ordinance and not changed herein, although language has been removed regarding attendance at two Council Meetings per month since this notation is not in the originating Ordinance. The only benefit changes are to the Cafeteria Style Health benefit and reinstatement of the Wellness Program both of which were implemented for all employee groups. Cleanup language, as with all employee group Resolutions and Memorandum of Understanding, has also been incorporated. The Executive Management group of employees are unrepresented and therefore, do not bargain for terms and condition of their employment. However, traditionally, the group has received compensation consideration and benefit changes afforded to other employee groups in the City. Further, in recognition of the increased duties and responsibilities assigned to these positions and in consideration of required efforts required in addition to and outside of normal work hours, additional benefits have been granted to this group of employees as is typical in governmental agencies. These are unique positions in that their jobs involve complete responsibility for the operation of a major function of the City's organization. And as an organization, it is imperative that the City be able to attract and retain well-qualified directors to ensure efficient and effective operations and provide stability and consistency within departments. As the City has experienced high turnover within the Executive Management group, as well as challenges in recruiting to AGENDA ITEM 5.1) City Council Meeting — Council & Exec Salary and Benefits — Reso No. 2021-47 and Reso No. 2021-50 October 26, 2021 Page 2 of 5 effectively fill these vacancies, the Resolution before the City Council has been crafted in a manner to improve recruitment and retention efforts. The City Manager and City Clerk, while part of the Executive Team of the City, are not included in the Executive Management group Resolution, however both positions have been afforded the same level of benefits as provided within the Executive Management Salary and Benefit Resolution. It is the intent that the benefits provided within Resolution be provided to the City Manager and City Clerk but that any increase in salary for either position, including the 2% across- the-board increase, will be negotiated at a later time. Resolution No. 2021-50 (Attachment B) describes salary and benefits for the classifications within this group. In addition to various language clean-up and updates, Exhibit A to the Resolution has been reformatted to include a table of contents, is organized by categories (Opening, Compensation, Benefits, Schedules/Leaves, and Other), and has replaced `Team Member' with `employee' throughout the document. The key terms of the Resolution are described below. Opening Section: • Applicability/Purpose — This updated section provides clarifying language regarding the Resolution and provides a purpose for the Resolution. • Objective of the Compensation Plan Relative to Executive Management_ — A new section stating objects of the plan such as the ability to recruit and retain well-qualified executives. Severability and Non -Discrimination — As part of the updating language throughout the Resolution, these sections have been added. Compensation: • Step Implementation — A step system will not be implemented for the Executive Management group. These positions will stay within a defined range as approved by the City Council with appointments made within those ranges by the City Manager. • Salary Increase — As proposed, salary ranges for positions within this group will be set to the average of the top salary range of the City's thirteen survey cities. The minimum salary amount is proposed at 30% below the maximum. On November 1, 2021, and June 27, 2022, all employees will receive a 2% salary increase. • Compensation Plan — A new section to describe the compensation plan, including the compensation determination, evaluation purpose, standards for the annual evaluation and performance rating, and implements a continuing pay for performance plan for executive at top step for at least one year. • Management Incentive Pay — Adds a new Management Incentive Pay plan at 6% of base pay due to the unique nature of executive management jobs and to provide a recruitment/retentive incentive for the group. • Bilingual Pay — This incentive has been deleted from the proposed Resolution. • Auto Allowance — The City Manager is currently authorized to grant up to $500/month in auto allowances to executive management employees. The only update to this section is City Council Meeting — Council & Exec Salary and Benefits — Reso No. 2021-47 and Reso No. 2021-50 October 26, 2021 Page 3 of 5 the addition of language to allow the Assistant City Manager to be issued a City vehicle in lieu of the current auto allowance. • Technology Allowance — This new section authorizes the allowance of $100/month for employees using personal cell phones in lieu of city issued devices based on City Manager approval. This replaces the Administrative Policy currently in place for City employees within this group. Benefits: Cafeteria Style Health, Welfare, and Savings Benefit — The Cafeteria Style Health benefit provides $1,700/month to employees towards the cost of health, dental, and vision premiums. Any unused benefit is paid to employees in either taxable cash or deposits to the employee's deferred compensation account. Employees who choose to opt -out of City provided health coverage, under defined conditions, are allowed to take the $1,700 monthly allowance in taxable cash or deferred compensation contributions. Beginning November 1, 2021, the City will provide an additional $100/month for `out-of-pocket' health. costs with no additional cash -back allowance. Additionally, beginning December 1, 2021, new hires will not receive any unused portion of the allowance and the opt -out allowance is reduced to $500/month. Deferred Compensation Program (457) — For employees hired prior to July 1, 2010, the City provides, and contributes to, a Deferred Compensation 401A Plan based on years of service. In addition, the City provides for employees, but does not contribute to, a Deferred Compensation 457 Plan. This practice has not been memorialized within the Resolution previously. The proposed Resolution includes language documenting the existence of the Plan and that it is voluntary on the part of the employee. • Wellness Program— The City provides up to $300 reimbursement for qualifying expenses through the City's Wellness Program. Due to financial constraints, this program had been suspended in the past. Beginning with the effective date of this Resolution, the program and funding has been reinstated. Schedules/Leaves: • Vacation Buy Back — The City currently allows employees to cash -in up to 60 hours available vacation hours. If the employee has hours in Vacation Bank A (hours unused prior to June 30, 2011), those hours must be cashed -in before hours in Bank B. For 2021 only, the City will allow the cash -in of 40 hours of Bank B vacation hours even if Bank A hours exist. • Administrative Leave — Executive Management employees are currently allotted 80 hours of executive leave each January 1. Hours not used by December 31 are forfeited. The language within the proposed Resolution leaves the number of Administrative Leave hours at 80 but changes those hours from a lump sum to a bi-weekly accrual with a 2 -year cap. • Sick Leave — Employees accrue 10 sick leave hours per year with unlimited accumulation. With the adoption of this Resolution, sick leave hours will be capped at 500 hours for all employees hired after November 30, 2021. City Council Meeting — Council & Exec Salary and Benefits — Reso No. 2021-47 and Reso No. 2021-50 October 26, 2021 Page 4 of 5 • Holidays — The City currently provides 9 set holidays and 2 floating holidays to employees. Effective beginning in calendar year 2022, the list of holidays observed shall be modified to add Cesar Chavez (March 31), Juneteenth (June 19), and Christmas Eve (December 24) and eliminate both floating holidays. • Floating Holidays — As stated above, floating holidays have been eliminated beginning calendar year 2022. • Flexible Scheduling Due to Special Events — This section has been updated to include the elimination of the Fall Fiesta from the list of named special events leaving only the 4th of July Parade/Carnival/Fireworks event as a `all hands' event. Revised language also provides more specific criteria for when hours can/will be flexed in lieu of banking of hours for time worked on special events. • JM Du — The City currently provides up to 80 hours of paid jury duty leave but does not provide for the possibility of a more lengthy trial. To support City employees' civic duty, language has been included to compensate employees based on trial length with approval of the City Manager but does require employees to return to work after being released from jury duty each day provided at least one-half of their shift remains. Other: • This section has been eliminated from the Resolution because this is not a represented employee group and there is no similar need for documentation of these existing rights. • Emergency Waiver Provision — This new article provides for limited temporary waiver of Resolution provisions when events due to circumstances beyond the control of the City, such as acts of God, fire, flood, etc., occur and the City's need for more flexibility to respond to those events. STAFF RECOMMENDATION It is recommended that the City Council adopt Resolution No. 2021-47 approving annual salary and benefits for the City Council and Resolution No. 2021-50 approving salary and benefits for the Executive Management Group. FISCAL IMPACT The estimated on-going incremental annualized cost for the Executive Management unit Resolution is $77,000 which includes the 2% across-the-board salary increase and implementation of the Management Incentive Plan. The cost associated with implementation of the salary survey results is dependent on where Executives will be placed but the cost comparison from top of range before the averages are implemented and after is approximately $83,000. The cost of the second year 2% across-the-board increase is approximately $17,300. The budget impact for FY 2021-22 is less than the above amounts due to the partial year implementation and executive vacancies being filled with retired annuitants who receive salary only — no benefits. Under these conditions, the estimated impact to the current budget is $36,000, with approximately $29,000 of that amount City Council Meeting — Council & Exec Salary and Benefits — Reso No. 2021-47 and Reso No. 2021-50 October 26, 2021 Page 5 of 5 paid by the General Fund. The appropriations needed for this action will be presented in the Mid - Year Budget Report. Estimates costs for annual increase to City Council benefits is $2,400. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Paula Chamberlain, Interim Finance Director Attachments A: Resolution 2021-47 B: Resolution 2021-50 Exhibit A to Resolution Attachment A Resolution No. 2021-47 RESOLUTION NO. 2021-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING SALARY AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD WHEREAS, City Council Members are critical to the efficientand effective operations of the City, due to the policy-making nature and responsibilities of the position; and NOW THEREFORE, BE IT RESOLVED that effective October 26, 2021, the salary and benefits for the City Council Members will be as follows: SECTION 1: COMPENSATION Members of the City Council will receive $1,118.63 per month pursuant to Ordinance No. 841. SECTION 2: HEALTH INSURANCE PROVIDER The City contracts with California Public Employees' Retirement System (Ca1PERS) to serve as the health insurance provider for the City. SECTION 3: CAFETERIA -STYLE HEALTH, WELFARE & SAVINGS BENEFIT The City will provide each full-time City Council Member with $1,700 per month for use towards enrolling in any of the City offered health, dental, and vision plans. Effective November 1, 2021, the City will provide an additional $100 per month for excess health care premiums with no cash - out value. Unused Contributions. For Council Members elected/appointed on or prior to November 30, 2021, any unused remainder of the $1,700 monthly cafeteria -style benefit will be put into a 457 deferred compensation plan up to the maximum amount allowed by law. Council Members elected/appointed after November 30, 2021, will not be compensated for any unused portion of the cafeteria -style benefit. 2. Excess Premiums. Employees shall be required to pay any cost of the health, dental, and vision premiums for their selected plans that exceeds the amount of the City's monthly contribution. 3. Opt -O . Council Members elected/appointed on or prior to November 30, 2021, may also choose to waive coverage and receive the entire benefit as deferred compensation (457 Plan -up the maximum contribution allowed by law) but must first show proof of group health insurance coverage through an individual, a spouse or family member's coverage through their employer and complete the Voluntary Decline of Health Care Offered Under City of Rosemead Group Plan form. Council Member elected/appointed after November 30, 2021 choosing to opt -out of medical coverage offered by the City, under the same conditions, will receive $500 per month deposited into the 457 deferred compensation plan. SECTION 4: CHANGES TO HEALTHCARE LAWS The parties recognize that certain changes to State or Federal laws, programs, taxes or regulation including, but not limited to, the Affordable Care Act, may impact future medical plan offerings. SECTION 5: RETIREMENT HEALTH PLAN For Members of the City Council elected/appointed on or before July 1, 2007, who have 20 years or more of service with the City of Rosemead, and who retire from the City, an allocation of up to $1,000/month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Member costs more than $1,000/month, the City will only cover the first $1,000/month of the cost of the selected program. For members elected/appointed on or before July 1, 2007. who have 12-19 years of service with the City of Rosemead, and who retire from the City, an allocation of up to $500/month will be given to pay for health care benefits; for the duration of their retirement. If the health insurance program selected by the Member costs more than $500/month, the City will only cover the first $500/month of the cost of the selected program. The above retirement health contributions will only be in effect for Members elected/appointed as of July 1, 2007. When a retired Council Member reaches 65 years of age, or becomes eligible for Medicare, said Members will transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage to the maximum amounts provided above ;during the duration of the Members' retirement. Furthermore, it is expressly noted that the retirement health contribution can be used towards health coverage for the retired Council Member, their spouse, and/or any eligible dependent. Members hired after July 1, 2007, will receive retiree health benefits in accordance with public employees' retirement laws and Ca1PERS. SECTION 6: RETIREMENT PROGRAM (CALPERS) Members will be enrolled in the City's retirement program through Ca1PERS. On July 1. 2007, the City began providing the 2.7%@55 benefit formula with one-year final compensation option with no cap. On July 1, 2010, the City implemented a 2 -tier system with changes for new hires only. Council Members, hired on or after July 1, 2010, are subject to the 2%@55 formula with one-year final compensation option. All existing Council Members hired prior to July 1, 2010 will remain at the 2.7@55 formula. Under the Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, all "new members" are subject to the 2.0% @ age 62 benefit formula which also requires a three- year final compensation (the highest average annual pensionable compensation earned by a member during a period of at least 36 months) with an early retirement age of 52. A "New Member" is defined as: 1. A new hire that is brought into Ca1PERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public Resolution No. 2021-47 Page 2 retirement system. 2. A new hire who is brought into Ca1PERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system. 3. A member who established Ca1PERS membership prior to January 1, 2013, and who is hired by a different Ca1PERS employer after January 1, 2013, after a break in service of greater than six months. Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new member's member contribution rate. All new members must pay 50% of total normal cost as employee contribution rate. Ca1PERS refers to all members that do not fit within the definition of a new member as "classic members". All "classic members" are required to contribute their full share, up to 8%, of the employee contribution of the Ca1PERS rate. Additionally, all existing Ca1PERS members as of December 31, 2012, will retain the existing benefit levels for future service with the same employer. SECTION 7: ENHANCED RETIREMENT PROGRAM PUBLIC AGENCY RETIREMENT SERVICES (PARS) The City offers an enhanced retirement package through Public Agency Retirement Services (PARS) for all members hired prior to July 1, 2010. Such members who retire from Rosemead after working 12 years for the City will have their pension formula enhanced to 3%@55, with the provision that the maximum pension allowance that members can accrue through PARS is 90% of their final pay. The PARS retirement pension is limited to 90% of their final pay. Members must be at least 55 years of age to qualify for PARS. Council Members elected/appointed on or after July 1, 2010 are not eligible for the Enhanced Retirement Program through PARS. SECTION 8: DEFERRED COMPENSATION PROGRAM (401A & 457) 401A: Members of the City Council receive $500 per month to be deferred through the 401A Plan which allows members to make contributions through a supplemental retirement savings program. This benefit was eliminated for all Council Member elected/appointed on or after July 1, 2010. 457: For Council Members elected/appointed after Any remaining balance of the monthly health benefit allowance will be put into a 457 deferred compensation plan, up the maximum allowed by law, as specified in Section 3. SECTION 9: LIFE INSURANCE Members of the City Council receive an accidental death and dismemberment and life insurance policy of $100,000. SECTION 10: TUITION REIMBURSEMENT Members may attend and be reimbursed for part or all of the costs of educational and other Resolution No. 2021-47 Page 3 training courses (up to $5,000 per fiscal year) which provide a benefit to the City provided there are budgeted funds for such approval by the City Council. The educational/training courses must be job-related leading towards a college or university degree or certificate and Members must remain with the City for three (3) years after the successful completion of class/course or must refund the amount received to the City on a pro -rated basis. If a Member leaves office (voluntarily or involuntarily) with the City, prior to the three (3) years after the completion of class/course, the Member must repay the City the amount received based upon the following pro -rated basis: Less than one 1 year Full Amount Received Less than two 2 ears 2/3 of Amount Received Less than three (3) years 1/3 of Amount Received Members may be reimbursed for registration, cost of books, tuition, lab fees and parking for classes or instruction, provided such classes or instruction are related to the Member's assigned duties with the City. Reimbursement will be made only after a Member has satisfactorily completed the class or workshop with the grade of "C" or better or a "B" or better for graduate level courses and that proof of completion has been submitted and reviewed by the City Manager. All study time shall be considered completely voluntary and there is no mileage reimbursement provided for travel to and from educational classes. Required forms must be completed and necessary documentation (receipts and grades) must be provided in order to receive reimbursement. SECTION 11: WELLNESS PROGRAM The City shall reimburse City Council Members up to three -hundred dollars ($300) per fiscal year for qualifying expenses of the City's Wellness Program. SECTION 12: COMPUTER PURCHASE PROGRAM The City provides a computer purchase program for members of the City Council as outlined in the Administrative Policy No. 30-09 approved by the City Manager. Loans are due and payable in full upon termination or separation of service. SECTION 13: EMPLOYEE ASSISTANCE PROGRAM The City provides access to the Employee Assistance Program (EAP). SECTION 14: DIRECT DEPOSIT Members of the City Council are provided with an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. Payroll checks will not be issued in advance. Resolution No. 2021-47 Page 4 SECTION 15: UNEMPLOYMENT INSURANCE BENEFITS Members of the City Council are not eligible for unemployment insurance benefits. SECTION 16: The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this 26th day of October, 2021. APPROVED AS TO FORM: Rachel Richman, City Attorney STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROSEMEAD Polly Low, Mayor ATTEST: Ericka Hernandez, City Clerk I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2021-47 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 26th day of October, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Resolution No. 2021-47 Page 5 Attachment B Resolution No. 2021-50 with Exhibit A to Resolution RESOLUTION NO. 2021-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR EXECUTIVE MANAGEMENT EMPLOYEES OF THE CITY OF ROSEMEAD WHEREAS, the classifications in the Executive Management of the City of Rosemead ("City") are critical to the efficient and effective operations of the City, the City Council recognizes the management, supervisory, professional and/or confidential nature of their positions; and WHEREAS, employees in these classifications are exempt under the provision of the Federal Fair Labor Standards Act and serve in an "at -will" employment capacity. NOW THEREFORE, BE IT RESOLVED that effective October 26, 2021, the salary ranges and benefits for Executive Management unrepresented employees, as set forth in Exhibit A, attached hereto, are adopted. PASSED, APPROVED, AND ADOPTED this 26th day of October, 2021. Polly Low, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROSEMEAD I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2021-50 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 26th day of October, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk ATTACH M ENT A City of Rosemead S E M O '9 /NCR ,0RATED 195 Executive Management Salary Resolution Resolution No. 2021-50 Approved October 261 2021 TABLE OF CONTENTS SECTION 1 APPLICABILITY/ PURPOSE........................................................................................................... SECTION 2 OBJECTIVES OF THE COMPENSATION PLAN RELATIVE TO EXECUTIVE MANAGEMENT ............................. SECTION 3 SEVERABILITY............................................................................................................................ SECTION4 NON-DISCRIMINATION............................................................................................................... SECTION 5 COMPENSATION SALARY RANGES................................................................................................. SECTION6 COMPENSATION PLAN................................................................................................................ SECTION 7 PROBATIONARY PERIOD.............................................................................................................. SECTION 8 MANAGEMENT INCENTIVE PAY .................................................................................................... SECTION9 AUTO ALLOWANCE.................................................................................................................... BENEFITS SECTION 11 HEALTH INSURANCE PROVIDER.................................................................................................... SECTION 12 CAFETERIA -STYLE HEALTH, WELFARE, AND & SAVINGS BENEFIT........................................................ SECTION 13 CHANGES TO HEALTHCARE LAWS................................................................................................. SECTION14 RETIREMENT HEALTH PLAN......................................................................................................... SECTION 15 RETIREMENT PROGRAM (CALPERS)............................................................................................. SECTION 16 ENHANCED RETIREMENT PROGRAM: PUBLIC AGENCY RETIREMENT SERVICES (PARS) ........................... SECTION17 SOCIAL SECURITY....................................................................................................................... SECTION 18 DEFERRED COMPENSATION PROGRAM (401A).............................................................................. SECTION 19 DEFERRED COMPENSATION PROGRAM (457)................................................................................. SECTION 20 FLEXIBLE SPENDING ACCOUNT (SECTION 125)............................................................................... SECTION 21 SHORT-TERM DISABILITY/LONG TERM DISABILITY........................................................................... SECTION22 LIFE INSURANCE......................................................................................................................... SECTION 23 TUITION REIMBURSEMENT.......................................................................................................... SECTION 24 WELLNESS PROGRAM................................................................................................................. SECTION 25 COMPUTER PURCHASE PROGRAM................................................................................................ SECTION 26 EMPLOYEE ASSISTANCE PROGRAM (EAP)...................................................................................... SCHEDULES/LEAVES SECTION 28 VACATION ACCRUAL AND ACCRUAL CAP........................................................................................ SECTION 28 VACATION BUYBACK................................................................................................................... SECTION 29 ADMINISTRATIVE LEAVE.............................................................................................................. SECTION30 SICK LEAVE............................................................................................................................... SECTION 31 CITY -RECOGNIZED HOLIDAYS....................................................................................................... SECTION32 FLOATING HOLIDAYS.................................................................................................................. SECTION 33 TEMPORARY MODIFIED WORK SCHEDULE...................................................................................... EXEC Resolution Attachment — No. 2021-50 Page I 1 SECTION 34 SECTION 35 SECTION 36 OTHER SECTION 37 SECTION 38 SECTION 39 FLEXIBLE SCHEDULING DUE TO SPECIAL EVENTS.............................................................................. BEREAVEMENTLEAVE................................................................................................................. JURYDUTY LEAVE....................................................................................................................... DIRECT DEPOSIT.......................................................................... TECHNOLOGY EQUIPMENT............................................................ EMERGENCY WAIVER PROVISION ................................................... EXEC Resolution Attachment — No. 2021-50 Page 1 2 SECTION 1: APPLICABILITY/ PURPOSE The employee classifications described in this Resolution are not represented by an employee organization. Therefore, this Resolution does not constitute a memorandum of understanding and is not the result of the meet and confer process; rather, this Resolution is designed to provide the Executive Management Group employees with a reference tool regarding term and conditions of their employment as the same are periodically determined by the City Council. Full- time employees in the following classifications are covered by this Resolution: Executive Management Uriit Assistant City Manager Director of Community Development Director of Finance Director of Parks & Recreation Director of Public Works The various forms of compensation and benefits described in this comprehensive document recognize that employees in Executive Management positions should be compensated appropriately for exhibiting accountability, cost effectiveness, application of new technologies and maximizing the utilization of human, physical and fiscal resources; for exerting leadership to enhance the mission and future of the City and for stimulating the development of people and methods which will facilitate the meeting of program goals and objectives. SECTION 2: OBJECTIVES OF THE COMPENSATION PLAN RELATIVE TO EXECUTIVE MANAGEMENT A. Recruit and retain well-qualified Executive Managers and enhance their management capabilities in areas such as leadership and accountability. B. Facilitate and enhance effectiveness and productive efforts of Executive Managers through evaluations of performance and the recognition of merit in determining compensation. SECTION 3: SEVERABILITY It is understood that this Resolution is subject to all applicable present and future Federal, State, and Local laws and regulations, and the provisions hereof shall be effective and implemented only to the extent permitted by such laws and regulations. If any part of this Resolution is in conflict with such applicable provisions of Federal, State, or Local laws or regulations or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such part of provision shall be suspended and superseded by such applicable laws and regulations and the remainder of this Resolution shall not be affected thereby and shall remain in full force and effect. SECTION 4: NON-DISCRIMINATION The City will not discriminate against any employee based upon race, religious creed, color, national origin, age (40 and over), ancestry, sexual orientation, sex, gender identity, gender expression, military and veteran status, disability (physical or mental), sexual orientation, marital status, pregnancy, childbirth or related medical condition, genetic information/characteristics, or any other legally protected characteristics. EXEC Resolution Attachment—No. 2021-50 Page 13 COMPENSATION SECTION 5: COMPENSATION SALARY RANGES Salaries for Executive Managers are based on a salary range which provides the minimum and maximum salary levels as approved by the City Council and shown in Appendix A. Year One • Effective October 31, 2021, the maximum salary range for all Executive Management positions will be set to the average of the top salary range of the City's thirteen survey cities defined in the Employee Handbook. The minimum salary amount shall be set 30% below the maximum. • Effective November 1, 2021, all employees shall receive an across-the-board increase of two percent (2%). Year Two • Effective June 27, 2022, all employees shall receive an across-the-board increase of two percent (2%). SECTION 6: COMPENSATION PLAN Salary and benefit levels for Executive Managers will be reviewed by the City Manager on a periodic basis. Such review will contain comparisons with other similar agencies within the appropriate job market. Such comparisons will be one of the factors utilized to recommend competitive salary and benefit levels to the City Council. Progression in the salary range for Executive Managers shall be based on the employee's performance. The City Manager shall be responsible for evaluating the employee's work performance and approving salary increases within the established range based on the employee's performance. Executive Management employees will be evaluated annually. The Executive Management compensation and performance-based evaluation system shall operate as follows: A. Specific Compensation Determination a. The City Manager is hereby given the authority to set the individual compensation, to make adjustments thereto and to make appointments at any salary within the established rate range as approved by the City Council for all executive positions for which the City Manager is the appointing authority. b. The City Manager is also granted authority to offer a beginning/increased bank of vacation hours and/or Administrative Leave (up to 40 hours) to recruit/retain Executive Management employees. c. The City Manager may establish performance criteria and appraisal guidelines, in accordance with Section 6, subsection B.a., to be utilized in determining individual compensation for Executive Management employees. EXEC Resolution Attachment — No. 2021-50 Page 14 B. Performance -Based Evaluation Purpose. The basic purpose of the performance-based evaluation system is to help attract, retain, and motivate highly competent Executive Managers and to provide them with a strong incentive to excel. a. Evaluation System Components. The evaluation system will be comprised of the following components: L Objectives. The system will include a list of outcome -based, measurable objectives to be achieved which have been mutually agreed upon between the City Manager or authorized appointing authority and each individual Executive Management employee. ii. Managerial Behaviors. In addition to the Executive Managers performance in achieving agreed upon objective, each Executive Manager will also be evaluated for his or her managerial behavior performance, including such behavior as communication (oral or written), analysis and problem solving, decision-making and judgment, planning and organization, management control, leadership, interpersonal relations, time -management, technical knowledge, timeliness of subordinate evaluations, handling of stress, etc. C. Performance Evaluations. After the salary of an employee has been first established and fixed under this plan, salary advancement through the salary range will be at the discretion of the City Manager based on the timing and performance ratings as follows: 1. Annual Evaluation. The City Manager will evaluate the performance of each Executive Management employee to determine their individual eligibility for a performance (merit) increase and how much, if any, increase will be given, but such increase cannot exceed the salary range maximum authorized by the City Council. Such performance evaluation will be for a determined period preceding the date of the performance evaluation. If an employee is out on an extended leave of absence, the performance evaluation will be extended out by the equal amount of time/duration the employee is out on the leave of absence. An extended leave of absence is defined as thirty (30) days or longer. 2. Performance Ratings. Each Executive Manager's performance in relation to agreed upon objectives and managerial behaviors will be evaluated for an identified period according to the following performance rating scale: L Substantially Exceeds Expectations: Consistently exceeds all objectives requirements and expectations by a wide margin. ii. Exceeds Expectations: Consistently meets all objectives and requirements and exceeds several. iii. Meets Expectations: Meets objectives and requirements. EXEC Resolution Attachment — No. 2021-50 Page 15 Level of Performance % of Increase Substantially Exceeds Expectations 7%-9% Exceed Expectations 4%-6% Meets Expectations 0%-3% Needs Improvement 0% D. Continuing Pay for Performance. At the discretion of the City Manager, each Executive Management employee who has achieved and maintained the maximum salary of their classification salary range for one (1) full year, may be eligible to receive a lump sum performance-based incentive pay bonus for continuing exceptional performance. The calculation of the incentive pay bonus will be based on a percentage of current annual rate of base salary for the identified period in which the compensation was earned. For an overall performance rating of "Substantially Exceeds Expectations", an incentive pay bonus up to five percent (5%) of annual pay may be granted. SECTION 7: PROBATIONARY PERIOD All classifications under the Executive Management Unit serve in an "at -will", exempt capacity. "At -will" employment is defined as an employment relationship in which an employee serves at the pleasure of the City Manager and may be dismissed, at any time, without cause and do not have the right of appeal, grievance, or hearing. At -will positions do not have property or vested rights and do not have a probationary period. SECTION 8: MANAGEMENT INCENTIVE PAY Beginning November 1, 2021, Executive Management employees shall receive 6% Management Incentive Pay above the base salary. This compensation is granted to Executive Managers as incentive pay due to the unique nature of their jobs involving complete responsibility for the operation of a major function of the City's organization. This is not overtime pay and is not tied to specific hours worked. ECTION 9: AUTO ALLOWANCE The City Manager may authorize an auto allowance of $500 per month for the employees in the Executive Management group. The City Manager may authorize a City vehicle be issued to the Assistant City Manager in lieu of the auto allowance. SECTION 10: TELECOMMUNICATIONS ALLOWANCE In lieu of City provided devices, employees shall be provided a $100 monthly allowance for cellular service for personal devices. In addition, a reimbursement of up to $1000 for cellular equipment will be provided upon receipt of invoice initially (following appointment to an affected classification) and once every three years thereafter, if necessary, to replace existing equipment. All contracts for cellular service for these employees shall be between the provider and the individual. EXEC Resolution Attachment — No. 2021-50 Page 1 6 BENEFITS SECTION 11: HEALTH INSURANCE PROVIDER The City contracts with California Public Employees' Retirement System (CaIPERS) pursuant to the Public Employees' Medical and Hospital Care Act (PEMHCA) to serve as the health insurance provider for the City SECTION 12: CAFETERIA -STYLE HEALTH, WELFARE, & SAVINGS BENEFIT The City will provide each full-time employee with $1,700 per month for use towards enrolling in any of the City offered health plans, dental plans, and vision plans. Effective November 1, 2021, the City will provide an additional $100 per month for excess 'out-of- pocket' health care premium costs. The additional $100 per month has no cash out value. 2. Unused Contribution. For employees hired on or before November 30, 2021, any unused remainder of the $1,700 monthly cafeteria -style benefit may be put into a deferred compensation plan, taken as a taxable cash disbursement, or used for the purchase of any City sponsored insurance, long-term care, or long-term savings program. Employees hired after November 30, 2021 will not be eligible for cash back of any unused portion of the cafeteria -style benefit. 3. Excess Premiums. Employees shall be required to pay any cost of the health, dental, and vision premiums for their selected plans that exceeds the amount of the City's monthly contribution. 4. Opt -Out. Employees hired on or before November 30, 2021, may choose to waive coverage and take the entire $1,700 monthly benefit as deferred compensation ortaxable cash, but must first show proof of group health insurance coverage through an individual, a spouse or family member's coverage through their employer and complete the Voluntary Decline of Health Care Offered Under City of Rosemead Group Plan form. Employees hired after November 30, 2021 choosing to opt -out of medical coverage offered by the City, under the same conditions, will receive $500 per month. SECTION 13: CHANGES TO THE HEALTHCARE The parties recognize that certain changes to State or Federal laws, programs, taxes or regulation including, but not limited to, the Affordable Care Act (ACA), may impact future medical plan offerings. SECTION 14: RETIREMENT HEALTH PLAN A. All full-time employees hired on or before July 1, 2007, who have 20 years or more of service with the City, and who retire from the City, receive an allocation of up to $1,000/ month to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the retiree costs more than $1,000/month, the City will only cover $1,000/month of the cost of the selected program. EXEC Resolution Attachment—No. 2021-50 Page 17 B. All full-time employees hired on or before July 1, 2007, who have 12-19 years of service with the City, and who retire from the City, receive an allocation of up to $500/month to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the retiree costs more than $500/month, the City will only cover $500/month of the cost of the selected program. C. The above retirement health contributions will only be in effect for full-time employees employed with the City as of July 1, 2007. When a retiree reaches 65 years of age, or becomes eligible for Medicare, said retiree must transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage during the duration of the former employees retirement in the amounts defined in sections A and B of this Section. D. The City's contribution for retirement health contribution may be used towards health coverage of the retiree, their spouse, and/or any eligible dependent(s). E. Employees hired after July 1, 2007 will receive retiree health benefits in accordance with public employees' retirement laws and CalPERS. SECTION 15: RETIREMENT PROGRAM (CALPERS) All employees will be enrolled in the City's retirement program through CalPERS. On July 1, 2007, the City began providing the 2.7%@55 benefit formula with one-year final compensation option with no cap. On July 1, 2010, the City implemented a 2 -tier system with changes for new hires only. All full- time new hires, hired on or after July 1, 2010, will be subject to the 2%@55 formula with one- year final compensation option. All existing full-time employees hired prior to July 1, 2010 will remain at the 2.7@55 formula. Under the Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, all "new members" will be subject to the 2.0% @ 62 benefit formula which also requires a three- year final compensation (the highest average annual pensionable compensation earned by a member during a period of at least 36 months) with an early retirement age of 52. A "New Member" is defined as: 1. A new hire that is brought into CalPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public retirement system. 2. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system. 3. A member who established CalPERS membership prior to January 1, 2013, and who is hired by a different CalPERS employer after January 1, 2013, after a break in service of greater than six months. EXEC Resolution Attachment — No. 2021-50 Page 18 Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new member's" member contribution rate. All new members must pay 50% of total normal cost as employee contribution rate. CalPERS refers to all members that do not fit within the definition of a new member as "classic members". All existing CalPERS members as of December 31, 2012, will retain the existing benefit levels for future service with the same employer. Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new member's" member contribution rate. All non -classic California Public Employees' Retirement System (CaIPERS) members must pay 50% of total normal cost as employee contribution rate. All "classic members" are required to contribute their full share, up to 8%, of the employee contribution of the CalPERS rate. SECTION 16: ENHANCED RETIREMENT PROGRAM (PARS) For full-time employees hired prior to July 1, 2010 the City offers an enhanced retirement package through Public Agency Retirement Services (PARS). Covered full-time employees who retire from Rosemead after working 20 years for the City will have their pension formula enhanced to 3%@55, with the provision that the maximum pension allowance that employees can accrue through PARS is 90% of their final pay. The PARS retirement pension is limited to 90% of final pay. Employees must be at least 55 years of age to qualify for PARS. SECTION 17: SOCIAL SECURITY The City deducts from each full-time employees' paycheck, an amount as determined by law for the Federal Insurance Contributions Act (Social Security). In addition, the City contributes an additional amount at least equal to the employee's contribution. SECTION 18: EMPLOYER FUNDED DEFERRED COMPENSATION PROGRAM For full-time employees hired prior to July 1, 2010, the City set -contributes into a deferred compensation account a percentage of the employee's salary based on years of service. That funding formula is as follows: Years of Service % of Salary Contributed to Plan 0-4 1% 5-9 2% 10-14 3% 15-19 4% 20+ 5% SECTION 19: DEFERRED COMPENSATION 457 All employees may voluntarily participate in the available 457 deferred compensation plan. Any EXEC Resolution Attachment — No. 2021-50 Page 19 voluntary contributions made to such plan must be made via automatic payroll deductions. The amounts contributed to the plan are subject to the statutory limits outlined in the codes of the IRS. SECTION 20: FLEXIBLE BENEFIT PLAN (SECTION 125 The City offers employees a flexible benefit plan which will allow individuals to pay for certain expenses (childcare, unreimbursed medical expenses, insurance premiums) with pre-tax dollars. SECTION 21: SHORT-TERM DISABILITY State Disability Insurance (SDI) is a partial wage replacement insurance in which the City does not participate in. However, for non -work-related employee disabilities, the City offers Short -Term Disability (STD)/Long-Term Disability (LTD) to full-time employees. Workers' compensation injuries are excluded from disability leave/insurance offered by the City. The City provides employees with a short-term disability plan to protect against cases where a non -work-related illness or injury is sustained which results in an inability to work for a short period of time. Employees will receive 66.67% or 2/3 of their pre -disability base salary (1 -year average of W-2) with a waiting period of 15 calendar days before receiving their benefits and can last up to 11 weeks. Employees will receive continued payment until the employee is medically able to return to work, or has to begin utilizing long term disability, or until the employee reaches the age of 65, whichever comes first. The maximum short-term disability benefit amount will be $1,848 per week. Family and Medical Leave Act (FMLA) will run concurrently with disability. The City provides employees with a long-term disability plan to protect against cases where a non -work-related illness or injury is sustained which results in an inability to work for a long period of time. In these cases, LTD is received only after STD has expired and the employee continues to be medically disabled. employees will receive 66.67% or 2/3 of their pre -disability base salary with a 90 -day waiting period. Employee will receive continued payment until the employee is medically able to return to work, or until the employee reaches the age of 65, whichever comes first. The maximum long-term disability benefit amount will be $8,000 per month. Where applicable, Family and Medical Leave Act (FMLA) and/or California Family Rights Act (CFRA) leave runs concurrently with disability. Employees have the option of receiving a full paycheck by utilizing his/her own leave time to subsidize the 1/3 while on disability. Disability will cover 2/3 or 66.67% of the pre -disability base salary based off the W-2 (1 -year average). However, when on disability, employees may not utilize sick leave. Employees may use vacation, floating holiday, holiday, and/or compensatory time (if applicable). Leave Accrual rate will be based upon the hours utilized. All disability claim forms must be submitted to Human Resources on a timely basis. As a guideline, all claim forms should be submitted within 15 calendar days. All medical certifications or modifications to the medical certification must be submitted to Human Resources on a timely basis. Employees are required to submit a Fitness for Duty— Return from Leave Certification at least 2 working days prior to the date of return to the department EXEC Resolution Attachment—No. 2021-50 Page 1 10 director. Employees may not return to work without this certification. SECTION 22: LIFE INSURANCE Employees receive an accidental death and dismemberment and life insurance policy of $100,000. SECTION 23: TUITION REIMBURSEMENT Subject to City Manager approval, employees may attend and be reimbursed for part or all of the costs of educational and other training courses (up to $5,000 per fiscal year) which provide a benefit to the City provided there are budgeted funds for such approval by the City Council. The educational/training courses must be job-related leading towards a college or university degree or certificate and employees must remain with the City for three (3) years after the successful completion of class/course or must refund the amount received to the City on a pro -rated basis. If an employee leaves employment (voluntarily or involuntarily) with the City, prior to the three (3) years after the completion of class/course, the employee must repay the amount received based upon the following pro -rated basis: Pro -Rated Schedule of Refund Years of Service After Completion Repayment Amount Due to the City Less than one (1) year Full Amount Received Less than two (2) years 2/3 of Amount Received Less than three (3) years 1/3 of Amount Received Employees with prior approval by the City Manager, may be reimbursed for registration, cost of books, tuition, lab fees and parking for classes or instruction, provided such classes or instruction are related to the employee's assigned duties with the City. Reimbursement will be made only after an employee has satisfactorily completed the class or workshop with the grade of "C" or better or a "B" or better for graduate level courses and that proof of completion has been submitted and approved by the City Manager. In general, mandatory or required training time during working hours shall be considered part of the job. If the City directs an employee to attend a specific, job-related training course during non -working hours, employees may utilize flex time. All study time shall be considered completely voluntary. No overtime pay, additional pay or compensatory time shall be given unless advanced written approval is granted by the City Manager. There is no mileage reimbursement for travel to and from educational classes. Required forms must be completed and necessary documentation (receipts and grades) must be provided in order to receive reimbursement. Final and conclusive determinations of the reimbursement amount shall be made by the City Manager/Assistant City Manager after review of the request and recommendations by the department director. SECTION 24: WELLNESS PROGRAM EXEC Resolution Attachment — No. 2021-50 Page 1 11 The City shall reimburse employees up to three -hundred dollars ($300) per fiscal year for qualifying expenses of the City's Wellness Program. The form and information required to claim reimbursement for this benefit, and the final determination of whether an expense qualifies for this benefit, are left to the discretion of the City Manager. ON 25: COMPUTER PURCHASE PROGRAM The City provides a computer purchase program for all full-time employees as outlined in the Administrative Policy No. 30-09 approved by the City Manager. Loans are due and payable in full upon termination or separation of employment. SECTION 26: EMPLOYEE ASSISTANCE PROGRAM The City provides employees with access to the Employee Assistance Program (EAP). SCHEDULES / LEAVES SECTION 27: VACATION ACCRUAL Full-time employees will receive vacation accruals as follows: Vacation Accumulation Years of Service Hours/Pay Period Hours/Year Days/Year Maximum Accumulated Hours Up to year 1 3.85 100 10 Year 1— Year 13 5.38 140 14 280 13+ 6.15 160 16 360 All full-time employees accrue 100 hours of vacation leave during their first year of service. One hundred forty (140) hours are accrued for employees with one year of service, up to (but not over) 13 years. For employees with over 13 years of service (13+) the accrual rate is 160 hours. Vacation hours cease to accrue in any pay period the vacation balance exceeds two times the annual accrual rate as determined by the employee's anniversary date. All vacation requests are to be pre -approved by the City Manager. Negative vacation banks or borrowing from future accruals will not be allowed except under provisions of Section 31C. Vacation accruals will be determined by the percentage formula of actual hours in a paid status by the City. Example 1:, An employee (with 1-13 years of service) who works 80 hours on paid status per pay period will accrue 5.38 hours/pay period. An employee (with 1-13 years of service) who works 40 hours on paid Example 2: status per pay period will accrue 2.69 hours/pay period (50% of 5.38 hours/pay period). EXEC Resolution Attachment — No. 2021-50 Page 1 12 An employee (with 1-13 years of service) who has a zero -leave Example 3: balance and takes an extended leave of absence will not accrue any hours. On July 1, 2011, the City established two (2) vacation banks as follows: Bank A: Vacation earned/accrued prior to June 30, 2011. Bank B: Vacation earned/accrued after July 1, 2011 (Subject to a 2 -year cap). SECTION 28: VACATION BUYBACK In order to encourage employees to take regular vacations on an annual basis and to partially limit the growth of the City's long-term liability of employee accrued vacation hours upon separation of employment, the City has established the following criteria for vacation buyback. A. Once per calendar year, full-time employees are eligible to have the City buyback up to 60 hours of accumulated unused vacation time. Effective December 10, 2021, and continuing thereafter, employees must submit an irrevocable election form, by no later than December 10th of the preceding calendar year, to buy back up to 60 hours of accumulated unused vacation time. The payment shall be made via payroll with the last paycheck in the following December after receipt of the irrevocable election form. In the event an employee has less hours in their vacation bank at the time the cash -out is to be paid than they had previously elected to cash -out, the employee shall only be paid for up to the amount remaining in their vacation bank at the time of the actual cash -out. Employees who do not submit an irrevocable election form by December 10th will be deemed as foregoing participation in the optional annual leave buy-back program for that following calendar year. The buyback may not reduce the vacation leave balance below the equivalent of one year's accrual. B. For the purposes of vacation buyback, all employees must utilize Bank prior to utilizing Bank B. However, if there are no hours accrued in Bank A, employees may utilize Bank B. C. An employee who experiences an unforeseeable emergency may be permitted to make a new irrevocable election and/or to increase the amount of the previous election, subject to the same value that was permitted at the time the annual irrevocable election forms were due. For these purposes, an "unforeseeable emergency" means a financial hardship to the employee resulting from any of the following: ■ Accident, illness, injury or death of the employee or an immediate family member. For this purpose, an "immediate family member" is restricted to a spouse, registered domestic partner, child/legal dependent, or parent; or ■ Loss or extensive damage to the employee's property due to casualty; or ■ Other similar extraordinary and unforeseeable circumstances arising from events beyond the control of the participant. Whether an occurrence is an unforeseeable emergency shall be solely determined by the City Manager or designee, but requests made under this provision shall not be unreasonably EXEC Resolution Attachment— No. 2021-50 Page 1 13 denied. The payment shall be made with the last paycheck in December of that same calendar year. D. If it is subsequently determined by the City, the IRS, a court of competent jurisdiction or another governing authority that the annual buyback provisions in place prior to December 10, 2021, or substantially similar, will not trigger constructive receipt of income from accrued leave, the City will remove the irrevocable election process. E. For 2021 only, for those employees with balances in Bank A, the City will allow for the buyback of up to 40 hours of accumulated unused vacation time in Bank B and up to 20 hours of accumulated unused vacation time in Bank A in lieu of the 60 hours provided in section A of this Section. The sell back may not reduce the vacation leave balance in Bank B below the equivalent of one year's accrual. The buyback request must be made in writing by November 18, 2021, with payment to occur in December 2021. F. All buybacks shall be paid at the employee's base hourly rate of pay at the time of the payment. SECTION 29: ADMINISTRATIVE LEAVE Each January 111, employees are credited with 80 hours of administrative leave with hours not utilized by December 31 forfeited. Beginning December 27, 2021, in -lieu of the 80 -hour allotment, employees will accrue 3.08 hours of Administrative Leave per pay period with a 2 -year accrual cap (160 hours). Any hours remaining on December 31, 2021 will carry forward as a beginning balance of the new bi-weekly accrual process. All unused Administrative Leave hours be paid upon employment separation at the employee's rate of pay. SECTION 30: SICK LEAVE A full-time employee who is incapacitated from the performance of such employee's duties by reason of a non -service -related illness or injury, pregnancy, legal requirements of public health officials or for reasons specified in the Family and Medical Leave (FMLA) and/or California Family Rights Act (CFRA) leave are eligible for sick leave. 1. Amount Earned: All full-time employees will accrue ten (10) hours of sick leave per month. Sick leave will be earned, commencing on the first day of employment employee, and accrued on a bi-weekly basis. Employees may accumulate up to a maximum of 120 hours of sick leave with pay per year. Sick leave accruals will be determined by the percentage formula of actual hours in a paid status by the City. Example 1: An employee who works 80 hours on paid status per pay period will accrue 4.62 hours/pay period. An employee who works 40 hours on paid status per pay Example 2: period will accrue 2.31 hour/pay period (50% of 4.62 hours/pay period). EXEC Resolution Attachment — No. 2021-50 Page 1 14 Example 3: An employee who has a zero -leave balance and takes an extended leave of absence will not accrue any hours. Except for retirement, all unused sick leave hours will be forfeited when an employee separates from employment, voluntarily or involuntary. Upon retirement, an employee's unused sick leave hours will be converted to service credit as contracted with CaIPERS. 2. Sick Leave Cap: Accrued sick leave is capped at 500 hours for employees hired after November 30, 2021. 3. Advanced Sick Leave: Sick leave time shall not be taken until such time has been accrued. 4. Utilization of Sick Leave Benefits: The right to utilize benefits under the sick leave provisions herein continues only during the period that the employee is employed by the City. All benefits hereunder terminate upon the employee leaving City service. An employee on military leave is not granted sick leave during the military leave period. Employees are not eligible to utilize sick leave benefits within the first thirty (30) days of employment. Sick leave is not a leave which an employee may use at his/her discretion, but is allowed only in cases of actual sickness or disability which make it impossible or inadvisable for the employee to perform normal work assignments/functions. Sick leave may be utilized for dental or medical appointments, medical assessments and/or due to a serious illness in the immediate family. The City Manager may deny or revoke sick leave if the incapacitation for which it is taken is caused or substantially aggravated by compensated outside employment. If an employee is absent from work for more than three (3) working days without notifying the City Manager, the employee may be dismissed from City service for being absent without official leave. Any abuse of sick leave usage is grounds for disciplinary action up to and including dismissal. 5. Illness During Vacation Leave: Employees who become ill while on approved vacation leave may request to use available sick leave in lieu of the approved vacation time for the period of illness. Verification of illness may be required by the City Manager prior to approval. 6. Notification to Supervisor: Any employee needing to be absent because of sickness or other physical disability must notify the City Manager, or designee, at least one (1) day prior to such absence if circumstances permit, or within one (1) hour before the start of his/her regular shift when prior notice cannot be given. 7. Sick Leave Authorized Due to Illness in Family: An employee is allowed sick leave due to a serious illness in the immediate family. The definition of "family" defined under the Family and Medical Leave Act (FMLA) policy will be utilized. In the event of a serious illness in the immediate family, a certificate of such illness and the need for the EXEC Resolution Attachment — No. 2021-50 Page 1 15 employee's absence by the acceptable medical authority may be required by the City Manager. In such case, the employee must be able to produce a verifying certification upon request by the City Manager. 8. Return to Work Following Illness: The City Manager may require an employee to submit to a medical and/or psychiatric examination by a physician designated by the City before permitting the employee to return to work after the employee has been on sick leave. If the results of any such examination indicate that the employee is unable to perform assigned duties, or if performance of those duties will expose others to infection, the employee will be placed on sick leave, or leave without pay after all sick leave has been used, until adequate medical evidence is submitted that the employee is competent to perform assigned duties or will not subject others to the infection. 9. Medical Certificate Requirement: In order to be paid for sick leave, the employee must make every good faith effort to notify the City Manager prior to the start of the employee's workday. The City Manager may request, for cause, a certificate issued by a licensed physician or other satisfactory proof of illness before sick leave is granted. The City Manager may also choose a licensed physician to conduct a physical examination at City expense. Any employee who makes application for sick leave maybe required by the City Manager to file a certificate signed by a duly and regularly licensed physician authorized to practice medicine or may be required to submit a personal statement which states the employee was incapacitated from performing the duties of the position for each day that sick leave is requested. Authority will also be given to the physician signing the certificate, to disclose to the City Manager, information relating to sick leave. Sick leave will be granted when the application for sick leave is approved by the City Manager. 10. Transfer of Sick Leave: New employees may be credited with up to two hundred (200) hours of sick leave from their previous public agency employer provided the previous employer did not otherwise compensate the employee for said hours. The new employee must provide a letter or documentation from the previous employer verifying accrued but uncompensated hours. 11. Unused Accumulated Sick Leave Upon Separation: An employee will not receive any payment for unused accumulated sick leave upon dismissal of employment or retirement (either disability or regular). An employee may not use sick leave to extend a retirement (either disability or regular) or dismissal date. This prohibition does not affect an employee's right to obtain sick leave credit with CaIPERS. Any other balances or if an employee resigns or is dismissed will be forfeited. 12. Catastrophic Leave Policy: During the term of this Resolution, the City will adopt a sick leave donation policy. The policy is intended to be adopted in accordance with IRS Revenue Ruling 90-29 and other applicable legal standards under which employees can donate sick leave to another employee whose own medical condition, or family member's medical condition, will require the prolonged absence of that other employee from duty and will result in a substantial loss of income to the employee because the employee will EXEC Resolution Attachment — No. 2021-50 Page 1 16 have exhausted all paid leave available, apart from the donated leave under the plan. SECTION 31: CITY -RECOGNIZED HOLIDAYS A. The following days are recognized and observed as paid holidays: 1. New Year's Day (January 11t) 2. Martin Luther King's Birthday (the third Monday in January) 3. Presidents' Birthday (the third Monday in February) 4. Cesar Chavez (March 311t) 5. Memorial Day (the last Monday in May) 6. Juneteenth (June 19th) 7. Independence Day (July 4th) 8. Labor Day (the first Monday in September) 9. Veteran's Day (November 11th) 10. Thanksgiving Day (the fourth Thursday of November) 11. Christmas Eve (December 24th) — Effective December 2022 12. Christmas Day (December 25th) B. If one of the above listed City recognized holidays falls on a Friday or Saturday, the holiday will be observed on the preceding Thursday. If the holiday falls on a Sunday, the holiday will be observed on the following Monday. C. Non-essential City services and facilities are closed from Christmas Day (Christmas Eve beginning December 2022) through New Year's Day. Employees are required to utilize their own time or may opt to take the time off without pay during the holiday closure. Employees with less than 3 months of service may use unearned vacation time with any resulting negative balances to be repaid from future accruals, or in the event of separation prior to repayment, from direct repayment of the outstanding balance to the City by the former employee. SECTION 32: FLOATING HOLI In exchange for the additional City recognized holidays (Cesar Chavez and Juneteenth) as established in Section 33, floating holidays are eliminated beginning calendar year 2022. Employees who received floating holiday time in calendar year 2021 must use those hours before the end of the calendar year or the hours will be forfeited. If an employee terminates employment with the City, any unused floating holidays hours will be forfeited. SECTION 33: FLEXIBLE SCHEDULING Depending on the Director's area of assignment, an alternate work schedule may be arranged with City Manager approval. This could include the possibility of utilizing flextime or telecommuting from an offsite location. Any prolonged telecommuting arrangement, or alternate workweek, must be approved, in writing, by the City Manager. SECTION 34: FLEXIBLE SCHEDULING ON SPECIAL EVENTS EXEC Resolution Attachment — No. 2021-50 Page 1 17 All full-time employees are required to work the 4th of July Parade/Carnival/Fireworks special event. In addition, some employees are required to work special events in the course of their regular duties. The City reserves the right to adjust the day's work hours to meet the staffing needs of the 4th of July Parade/Carnival/Fireworks special event. For every work week in which there is a designated special event, the City Manager may authorize the 'flexing' of all hours within the same workday or same workweek of the special event while ensuring that appropriate staff coverage is maintained for operational needs and continued City services. For purposes of this Section, a "special event" is a scheduled, pre -planned program, activity, or other event that is offered by the City for attendance by one or more members of the public. If an employee is required to work on a city recognized holiday, holiday hours equivalent to the number of hours worked, up to ten (10), will be banked. Banked hours not used by December 31St will be forfeited. SECTION 35: BEREAVEMENT LEAVE In the event of the death of an employee's immediate family (defined as spouse, parent, stepparent, grandparent, sibling, children, grandchildren, mother-in-law, father-in-law, sister-in- law, brother-in-law, registered domestic partner or child of a registered domestic partner), employees are entitled to forty (40) hours for bereavement leave per incident. SECTION 36: JURY LEAVE An employee of the City who is required to participate as a juror or required to participate in the jury selection process, shall be paid up to and including 80 hours of salary and benefits during each fiscal year while engaged in such activities. Any employee called to serve as a juror shall receive regular compensation while on such leave, provided that the employee remits to the City any payments or fees received as a juror, excluding mileage reimbursement. Employee shall provide from the courts, certification of the amount of time served on jury duty each day for which jury duty leave with pay is requested. Employees shall return to their regular job assignment after being released from jury duty each day provided at least one-half (1/2) of their shift remains. Compensation shall extend beyond 80 hours only upon provision to the City of a certified court document showing that trial counsel and/or the Court estimated the length of trial for which an employee has been selected as juror, to be more than 80 hours. The employee shall advise the City Manager and the Human Resources Manager upon receiving a court order to appear beyond the 80 hours as a juror. The granting of such leave with pay shall be subject to the approval of the City Manager or designee, consistent with the requirements set forth herein. OTHER SECTION 37: DIRECT DEPOSIT EXEC Resolution Attachment — No. 2021-50 Page 1 18 Employees are offered an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. Payroll checks will not be issued in advance. SECTION 38: TECHNOLOGY EQUIPMENT Employees may be provided with a laptop, tablet, WAD or other device to be used for City business. This equipment may be stored and used at home. At the end of employment, the employee shall return the City -owned equipment. SECTION 39: EMERGENCY WAIVER PROVISION In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder or national emergency, or similar circumstances, the provisions of this Resolution or City's Human Resources Rules and Regulations, which restrict the City's ability to respond to these emergencies, shall be suspended forthe duration of such emergency. EXEC Resolution Attachment — No. 2021-50 Page 1 19 City of Rosemead Executive Management Group July 1, 2021 -June 30, 2023 Effective July 1, 2020 Effective October 31, 2021 Monthly Salary Monthly Salary Position Title Minimum Maximum Minimum Maximum Assistant City Manager 10,812 - 14,921 Director of Community Development 9,824 - 13,557 Director of Finance 9,824 - 13,557 Director of Parks & Recreation 9,824 - 13,557 Director of Public Works 9,824 - 13,557 12,831 - 16,680 11,262 - 14,640 11,629 - 15,118 10,710 - 13,923 11,672 - 15,173 Effective November 1, 2021 Monthly Salary Minimum Maximum 13,088 - 17,014 11,487 - 14,933 11,862 - 15,420 10,924 - 14,201 11,905 - 15,476 APPENDIX A Effective June 27, 2022 Monthly Salary Minimum Maximum 13,349 - 17,354 11,717 - 15,232 12,098 - 15,728 11,142 - 14,485 12,143 - 15,786 EXEC Resolution Attachment - No. 2021-50 Page 1 20