HomeMy WebLinkAboutR-11581 amending Unrepresented Confidential Employees' Compensation and superseding previous Resolutions in ConflictR 11581
RESOLUTION NO. 11581 (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING UNREPRESENTED
CONFIDENTIAL EMPLOYEES’ COMPENSATION AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City has designated classifications in City Administration and
Information Technology, the City Attorney’s Office, Finance, and Human Resources as
confidential pursuant to Government Code 3507.5 and Employer-Employee Resolution
6620; and
WHEREAS, confidential employees are precluded from collective bargaining due
to their proximity to labor negotiations, and therefore are not governed by a collective
bargaining agreement; and
WHEREAS, the Unrepresented Confidential employees have remained committed
to providing high quality service to the community; and
WHEREAS, the City Council is committed to providing competitive compensation
to recruit and retain well qualified employees, as provided in the City’s adopted Labor
Relations Objectives and Compensation Philosophy, while also considering the long-term
financial sustainability of changes in compensation.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo, compensation and benefits for the Unrepresented Confidential group are revised
as follows:
SECTION 1. The City agrees to increase the salaries of Unrepresented
Confidential employees with cost-of-living adjustments effective on the following dates:
3% the first full pay period of July 2025, 3% the first full pay period of July 2026, and 3%
effective the first full pay period of July 2027.
SECTION 2. The City shall continue to provide employees fringe benefits as set
forth in Exhibit “A”, fully incorporated by reference.
SECTION 3. The Director of Finance shall adjust the appropriate accounts to
reflect the compensation changes.
SECTION 4. This resolution shall be in effect from July 1, 2025, through June 30,
2028.
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Resolution No. 11581 (2025 Series) Page 2
R 11581
SECTION 5. Amendments to compensation and benefits for Unrepresented
Confidential employees do not constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Council Member Francis, seconded by Council Member Boswell,
and on the following roll call vote:
AYES: Council Member Boswell, Francis, Marx, Vice Mayor Shoresman,
and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 17th day of June 2025.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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Unrepresented Confidential Employees Resolution Exhibit A
Table of Contents
Exhibit A Sections
Section A Salaries ...................................................................................................... 2
Section B Medical, Dental, Vision .............................................................................. 2
Section C Health Flex Contribution ............................................................................ 2
Section D Life and Disability Insurance ...................................................................... 4
Section E Retirement ................................................................................................. 4
Section F Vacation ..................................................................................................... 5
Section G Administrative Leave.................................................................................. 7
Section H Holidays ..................................................................................................... 7
Section I Sick Leave ................................................................................................. 8
Section J Bereavement Leave ................................................................................... 9
Section K Workers’ Compensation Leave .................................................................. 9
Section L Overtime .................................................................................................... 9
Section M Temporary Upgrade Assignment ............................................................. 10
Section N Bilingual Pay ............................................................................................ 11
Section O Probation Period ...................................................................................... 11
Section P Payday ..................................................................................................... 11
Appendix A Classifications .......................................................................................... 12
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EXHIBIT “A”
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Section A Salaries
The date of any new appointment, promotion, or transfer to a position within the
bargaining unit becomes the employee’s position anniversary date for step increase
purposes. The first step is the minimum rate and shall normally be the hiring rate for the
class. In cases where it is difficult to secure qualified personnel, or if a person of unusual
qualifications is hired, the Director of Human Resources, or their designee, may authorize
hiring at any step.
Upon recommendation by the department head, or their designee, and the approval of
the Director of Human Resources, or their designee, an employee will be advanced a
step upon receiving an overall rating of at least “Meets Performance Standards” on the
employee’s annual performance evaluation following the completion of twelve (12)
months of service. In applying the above rules, the next step shall be granted, other
conditions having been met, on the first day of the payroll period within which the
employee’s position anniversary date occurs.
Should the employee not receive a step increase, it shall be the discretion of the
department head and City Manager, or their designee, to reconsider such step increase
at any time during the year.
Section B Medical, Dental, Vision
The City shall establish and maintain medical, dental, and vision insurance plans for
confidential employees and their dependents. The City reserves the right to choose the
method of insuring and plans to be offered.
Section C Health Flex Contribution
Employees electing medical coverage in the City’s plans shall receive a health flex
contribution and shall purchase such coverage through the City’s Section 125 Plan
“Cafeteria Plan.” To be eligible for the health flex contribution in a particular pay period,
an employee must be paid for more than half of their regularly scheduled hours, unless
the employee is on an approved FMLA/CFRA leave of absence or receiving temporary
disability benefits through workers’ compensation. Less than full-time employees shall
receive a prorated share of the City’s contribution.
The City will contribute directly to CalPERS, on behalf of each employee, the statutory
minimum monthly employer contribution required under the Public Employees’ Medical
and Hospital Care Act (PEMHCA), as set annually by CalPERS. For 2025, the PEMHCA
minimum contribution is $158 per month. The City will provide a contribution through its
cafeteria plan, which combined with the City's PEMHCA contribution, will equal the total
health flex contribution in the amounts listed below.
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EXHIBIT “A”
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The monthly health flex contribution is listed below, along with the updated contribution
that will take effect the first paycheck in September 2025.
Level of Coverage 2025 Monthly
Contribution
Monthly
Contribution
Effective
September 2025
Employee Only $670 $735
Employee Plus One $1,323 $1,470
Family $1,792 $1,911
If the premium cost for medical coverage is less than the health flex contribution, the
employee shall not receive any unused health flex in the form of cash or purchase
additional benefits.
Effective for the 2026, 2027, and 2028 premiums, the City’s total contribution for group
medical coverage shall be increased by an amount equal to one-half of the average
percentage change for family coverage in the CalPERS health plans available in San Luis
Obispo County. In any event, the City’s contribution will not be decreased. For example:
if three plans were available and the year-to-year changes were +10%, +20%, and -6%
respectively, the City’s contribution would be increased by 4% ((10% + 20% + -6%) ÷ 3 =
8% x 1/2).
The City agrees to continue its health flex contribution or conditional opt-out amount as
described below for one full pay period in the event that an employee has exhausted all
paid time off, including paid leave donated through the catastrophic leave program, and
leave approved under the federal Family and Medical Leave Act (FMLA) and the California
Family Rights Act (CFRA). That is, the employee shall receive the regular City health flex
contribution or conditional opt-out amount for the first full pay period following the pay
period in which the employee's paid leave balances reach zero (0) and FMLA/CFRA leave
has been exhausted. This continuation of the City health flex contribution is available once
per rolling 12-month period, per employee.
Conditional Opt-out
Employees may receive a monthly opt-out incentive (Cash-in-Lieu) instead of the health flex
contribution and medical coverage through the City’s medical plans if the following
conditions are met:
1. The employee completes an attestation form during initial enrollment or during the
annual open enrollment period;
2. The attestation form verifies that the employee and all individuals for whom the
employee expects to claim a personal exemption deduction (Tax Family) have
alternative minimum essential coverage;
3. Coverage in the individual market or individual coverage through Covered California
does not meet the requirement of alternative minimum essential coverage for the
employee and the employee’s Tax Family.
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EXHIBIT “A”
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The monthly conditional opt-out (Cash-in-Lieu) incentive is $200, prorated for less-than-full-
time employees.
The Cash-in-Lieu shall be taxable income to the employee. The employee must notify the
City within 30 days of the loss of alternative minimum essential coverage. The conditional
opt-out payment shall no longer be payable if the employee and family members cease to
be enrolled in alternative minimum essential coverage. The City will not pay Cash-in-Lieu if
the City knows or has reason to know that the employee or an individual in the employee’s
Tax Family does not have the required alternative coverage. The conditional opt-out
incentive will cease as described above one full pay period after the employee exhausts
unpaid leave or FMLA/CFRA, whichever is later.
Employees receiving the conditional opt-out amount will also be assessed $16.00 per month
to be placed in the Retiree Health Insurance Account. This account will be used to fund the
City's contribution toward retiree premiums and the City's costs for the Public Employees’
Contingency Reserve Fund and the Administrative Costs. However, there is no requirement
that these funds be used exclusively for this purpose nor any guarantee that they will be
sufficient to fund retiree health costs, although they will be used for negotiated employee
benefits.
Dental and Vision Insurance Coverage
Employee participation in the City's dental and vision plans is optional. Employees who
elect coverage shall pay the dental and/or vision premium(s) by payroll deduction(s) on a
pre-tax basis through the City’s Cafeteria Plan.
Section D Life and Disability Insurance
The City shall provide the following special insurance benefits:
1. Long-term disability insurance providing 66 2/3% of gross salary (maximum
benefit $7,000 per month) to age 65 for any sickness or accident, subject to the
exclusions in the long-term disability policy, after a 30-day waiting period.
The City is exploring the possibility of enrolling in State Disability Insurance or
an alternative employee-funded enhanced disability program. If approved by a
majority vote of confidential employees, the City will implement the program as
soon as administratively possible.
2. In addition to $4,000 term life insurance purchased by the employee, the City
provides $25,000 term life insurance, including $29,000 for accidental death
and dismemberment through the City’s Cafeteria Plan.
Section E Retirement
A. CalPERS Contracts. Employees are classified as Miscellaneous and work twelve
(12) months per year.
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EXHIBIT “A”
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1. “Classic Members First Tier” employees hired before December 6, 2012.
The City agrees to provide the Public Employees' Retirement System’s (CalPERS)
2.7% at age 55 plan to all eligible employees. The 2.7% at 55 plan includes the
following amendments: 1959 Survivor’s Benefit – Level Four, conversion of unused
sick leave to additional retirement credit, one-year final compensation, Military
Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
Employees will pay the entire 8% member contribution. In addition, employees will
pay 3% of the employer contribution as cost sharing under Government Code section
20516(a) for a total employee contribution of 11%.
2. “Classic Members Second Tier” employees hired on or after December 6, 2012.
The City agrees to provide the CalPERS 2% at 60 plan using the highest three-
year average as final compensation. The second-tier formula will include the
following amendments: conversion of unused sick leave to additional retirement
credit, the 1959 Survivor's Benefit – Level Four, Military Service Credit option, and
Pre-Retirement Option Settlement 2 Death Benefit. Employees will pay the entire
7% member contribution. In addition, employees will pay 3% of the employer
contribution as cost sharing under Government Code section 20516(a) for a total
employee contribution of 10%. CalPERS determines who is a “classic member”
within the meaning of the California Public Employees’ Pension Reform Act
(PEPRA) and which tier employees are placed in.
3. “New Members Third Tier” employees hired after January 1, 2013.
CalPERS determines are “New Members” within the meaning of the California
Public Employees’ Pension Reform Act (PEPRA). The City will provide the
CalPERS 2% at 62 plan using the highest three-year average as final
compensation. Employees will pay 50% of total normal cost of the retirement
benefit, as determined by CalPERS. In addition, employees will pay 3% of the
employer contribution as cost sharing under Government Code section 20516(a).
Member contributions are made on a pre-tax basis as permitted under IRS Code Section
414(h)(2).
Section F Vacation
Vacation leave is governed by Section 2.36.440 of the Municipal Code, except that it may
be taken after the completion of the sixth calendar month of service from the benefit date
or earlier with department head, or their designee, authorization. Employees shall accrue
vacation leave at the following rates for completed years of service with the City. Part-
time employees will accrue a prorated amount of vacation leave.
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EXHIBIT “A”
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Years of Completed
Service
Annual
Vacation
Accrual Days*
Annual
Vacation
Accrual Hours
Less than 5 years 12 days 96 hours
5 to less than 10 years 15 days 120 hours
10 to less than 20 years 18 days 144 hours
20+ years 20 days 160 hours
*One day is equivalent to eight (8) hours for a 40-hour per week position.
Employees are eligible for a year-for-year accelerated vacation accrual based on prior
public sector and military experience. For example, if an employee has ten (10) years of
public sector experience prior to working for the City of San Luis Obispo, their vacation
accrual will be advanced by ten (10) years.
Vacation leave shall be accrued as earned biweekly. Vacation time balances shall not
exceed twice the annual accrual rate. If an employee reaches the maximum at any time
throughout the year, the employee will stop accruing vacation leave.
Vacation schedules for confidential employees shall be based upon the needs of the City
and then, insofar as possible, upon the wishes of the employee.
Vacation Cash Out
Employees are eligible to request payment for up to forty (40) hours of unused vacation
leave subject to following conditions:
1. The employee must make an irrevocable election in the month of December in the
prior calendar year;
2. The cash out shall be issued in December of the year following the irrevocable
election;
3. Employees must have eighty (80) hours of accrued vacation leave to be eligible
for cash out at the time of the irrevocable election; and
4. Late irrevocable election forms will not be accepted, nor can they be changed after
the established deadline.
Emergency Vacation Cash Out
Notwithstanding the requirement for an irrevocable election for the cash out of vacation
for the upcoming calendar year, an employee may cash out vacation in an existing year,
subject to the following conditions:
1. The employee may cash out no more than the forty (40) hours of vacation
(including any cash out previously elected); and
2. The amount cashed out pursuant to this subdivision must be in whole-hour
increments with a minimum cash out of twenty (20) hours and shall be subject to
a twenty percent (20%) penalty. That is, if an employee cashes out 40 hours of
emergency cash out, the penalty shall be 20% of the amount cashed out. For
example, if an employee wishes to cash out forty (40) hours due to an emergency
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but failed to make an irrevocable election, the employee will receive the cash value
of thirty-two (32) hours, but forty (40) hours will be removed from the employee’s
accrued balance.
Vacation Accrual Cap Cash Out
If an employee reaches the annual accrual cap before December, the employee will be
able to request vacation payment one additional time during the calendar year, in addition
to the December cash out. However, no more than 40 hours of unused vacation leave will
be paid out in any calendar year.
Section G Administrative Leave
Employees shall be advanced twelve (12) hours of administrative leave on January 1st of
each year.
Administrative leave hours shall be pro-rated on a pay period basis when an employee is
appointed or leaves employment during the calendar year. The employee’s final check
will be adjusted to reflect the pro-rated hours, however there is no provision to receive
cash payment for unused administrative hours. Unused administration leave will not be
carried over year-to-year but can be taken through December 31st of each year.
Section H Holidays
Employees shall receive eleven (11) fixed plus two (2) floating holidays per year. The
following days of each year are designated as paid holidays:
• January 1 – New Year’s Day
• Third Monday in January – Martin Luther King Jr. Day
• Third Monday in February – Presidents’ Day
• Last Monday in May – Memorial Day
• July 4 – Independence Day
• First Monday in September – Labor Day
• November 11 – Veteran’s Day
• Fourth Thursday in November – Thanksgiving Day
• Friday after Thanksgiving
• One half day before Christmas Day
• December 25 – Christmas Day
• One half day before New Year’s Day
• Two floating holidays
For employees who are not regularly scheduled to work on weekends, when a holiday
falls on a Saturday, the preceding Friday shall be observed. When a holiday falls on a
Sunday, the following Monday shall be observed. For employees on a compressed work
schedule, when a holiday falls on the employee’s flex day, holiday hours must be
observed on another scheduled workday within the same FLSA work week. A holiday
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shall be defined as eight (8) hours of paid time off for regular full-time employees and
prorated for part-time employees.
The City reserves the right to close non-essential City services and offices on weekdays
between the Christmas Day and New Year’s Eve holidays. Employees scheduled to work
during this time in non-essential functions are required to use appropriate personal leave
or take the days as non-pay. Essential City services and functions are determined at the
discretion of the department head. The City will notify employees of the closure of non-
essential City services and offices no later than October 31st of the same year in order to
provide employees with ample time to plan accordingly.
The two floating holidays (16 hours) will be provided in a floating holiday leave bank the
pay period that January 1st falls within and will be prorated on a pay period basis if an
employee starts later in the year. Employees will have the ability to use floating holiday
leave hours at any point during the calendar year. Unused floating holiday leave will not
be carried over year-to-year but can be taken through December 31st of each year. If an
employee terminates for any reason, having taken off hours in excess of their biweekly
prorated share of the floating holiday, the value of the overage will be deducted from the
employee’s final paycheck; however, there is no provision to receive cash payment for
unused floating holiday hours.
Section I Sick Leave
Sick leave is governed by Section 2.36.420 of the Municipal Code. An employee shall
accrue sick leave with pay at the rate of twelve (12) days, or the prorated shift equivalent,
per year of continuous service since the benefit date. An employee may take up to 48
hours per calendar year of sick leave if required to be away from the job to personally
care for a member of their immediate family. A family member for this purpose is any
relationship listed in Labor Code 245.5(c). However, if the family member is part of the
employee’s household and is hospitalized, the employee may take up to 56 hours (rather
than 48 hours) of sick leave per year to care for their family member. The employee shall
submit written verification of such hospitalization.
The City maintains a separate Family and Medical Leave Administration Policy consistent
with the City’s legal obligations to provide Family Medical Leave Act and California Family
Rights Act, among other forms of leaves. This policy can be accessed in the Forms and
Policies section on SharePoint.
Upon termination of employment by death or retirement, the employee or beneficiary may
choose:
A. A payout of the employee’s accumulated sick leave balance based on years
of service according to the following schedule; or
B. To convert the remaining employee’s sick leave balance to service credit in
accordance with CalPERS regulations; or
C. A combination of these two options:
i. Death – 25%
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ii. Retirement and actual commencement of CalPERS benefits:
a. After ten years of continuous employment – 10%
b. After twenty years of continuous employment – 15%
c. After twenty-five years of continuous employment – 20%
d. After thirty years of continuous employment – 25%
Section J Bereavement Leave
Bereavement Leave
At each employee’s option, sick leave or vacation leave may be used to be absent from
duty due to the death of an employee’s family member as defined in Labor Code section
245.5(c), provided such leave as defined in this section shall not exceed five (5) days (no
more than 40 hours) for each incident. The leave days may be taken non-consecutively
as needed. The employee may be required to submit proof of relative's death before being
granted sick leave pay. False information concerning the death or relationship may result
in discipline up to and including termination.
Reproductive Loss Leave
Employees experiencing a miscarriage, failed adoption, failed surrogacy, stillbirth, or
unsuccessful assisted reproduction are entitled to up to five (5) days (no more than 40
hours) of leave following the qualifying loss. The leave days may be taken non-
consecutively as needed. Employees may utilize sick leave or vacation leave to be paid
during reproductive loss leave. To utilize this leave, the employee may confidentially
report the qualifying event to whomever in their chain of command they feel most
comfortable, including their supervisor, manager, or Human Resources.
Section K Workers’ Compensation Leave
An employee who is absent from duty because of an on-the-job injury in accordance with
State workers’ compensation law and is not eligible for disability payments under Labor
Code Section 4850 shall be paid the difference between their base salary and the amount
provided by workers’ compensation during the first ninety (90) business days of such
temporary disability absence. Eligibility for workers’ compensation leave requires an
accepted workers’ compensation claim.
If an employee is eligible for Total Temporary Disability benefits after exhausting the
salary continuation as defined in the paragraph above, the employee will receive such
payment directly from the City’s workers’ compensation administrator and will only be
able to supplement one-third pay with accrued sick leave.
Section L Overtime
City Overtime Definition
Overtime is defined as all hours worked by the employee in excess of forty (40) hours
worked in a work week. Except during emergency operations, as determined by the
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department head or their designee, an employee’s failure to have overtime authorized by
management may be subject to discipline up to and including termination.
All paid leave hours shall be counted as hours worked for purposes of calculating overtime
to include Vacation, Holiday, Sick Leave, Administrative Leave, and Compensatory Time
Off (CTO). All overtime shall be authorized by the department head or their designee prior
to being compensated. The assignment of overtime is not guaranteed, and the City
expressly retains the management right to eliminate or reduce overtime opportunities due
to budgetary, operational, or efficiency concerns.
Compensation
Overtime as defined in this Section shall be paid in cash at one and one-half (1 1/2) the
employee's base rate of pay, plus incentives as defined below, or in compensatory time
off (CTO) at the rate of one and one-half (1 1/2) hours for each hour of overtime worked.
Compensatory Time Off (CTO)
Employees eligible for overtime compensation as defined in this Section may elect
compensation in the form of compensatory time off (CTO). An employee may be
compensated in CTO and maintain up to sixty (60) hours of CTO in their CTO bank during
the calendar year. Accumulated CTO may be taken through December 31st of each
calendar year. Accumulated CTO not taken by midnight December 31st shall be
compensated in cash at straight time. Such compensation shall be paid in January of the
following year. Management may deny a request to use CTO on the date requested by
the employee due to operational concerns. However, if the use of CTO is denied,
management shall grant the employee leave within a reasonable period unless the
request will unduly disrupt the agency’s operations.
An employee who promotes or transfers out of the group shall be paid for unused CTO
at the employee’s regular rate of pay in effect just prior to the promotion or transfer.
Work Week for Calculation of Overtime
For employees working a 5/40 work schedule or a 4/10 alternative work schedule, the
work week for the purpose of calculating overtime as defined in this Section shall be seven
consecutive days, beginning at 12:00 am Thursday and ending at 11:59 pm Wednesday.
For employees working a 9/80 alternative work schedule, the work week for the purpose
of calculating overtime as defined in this Section shall be seven consecutive days,
beginning exactly four hours into their eight-hour shift on the day of the week which
constitutes their alternative regular day off.
Pay Incentives to be Included in the Base Rate for Overtime
• Bilingual Pay
• Cash-in-Lieu (in compliance with Flores v. City of San Gabriel)
• Temporary Upgrade Pay
Section M Temporary Upgrade Assignment
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For the purposes of this Section, a temporary upgrade assignment is the full-time
assignment to a higher-level classification (with a higher salary). An employee assigned
in writing by management to a temporary upgrade assignment shall receive temporary
upgrade pay of five percent (5%) in addition to their regular base rate commencing on the
eleventh (11th) consecutive workday of the temporary upgrade assignment. If the
temporary upgrade assignment is to a management-level classification, the employee
shall receive either a five percent (5%) increase or be placed at the bottom of the salary
range for the management-level classification, whichever is greater. In order to receive
temporary upgrade pay, an employee must be working in the temporary upgrade
assignment and may not have a leave of absence longer than two (2) consecutive weeks,
unless otherwise approved.
The temporary upgrade assignment will be evaluated after three (3) and six (6) months.
If there is an operational need to have an employee work in the temporary upgrade
assignment more than six (6) months, the temporary upgrade pay will be increased to at
least the first step of the higher classification and/or up to an additional five percent (5%),
for a total of at least ten percent (10%) special pay, upon the recommendation of the
supervisor and approval of the department head.
Section N Bilingual Pay
Employees certified as bilingual in Spanish and assigned to use their Spanish speaking
skills shall receive a bilingual payment of thirty-five ($35) dollars per pay period.
Employees are eligible for this incentive the first full pay period following qualification.
Additional languages may be approved by the City based upon demonstrated need.
Regardless of certification and payment, all employees shall use any language skills they
possess to the best of their ability.
Section O Probation Period
All new appointments shall be subject to a probationary period of one year for the
appointed position. The probationary period may be extended or reinstated if further
employee evaluation is deemed necessary for up to six months upon written
recommendation of the department head and Director of Human Resources. Employees
who successfully pass the one-year probationary period may be eligible for a step
increase as outlined in Section A.
Section P Payday
Payroll will be disbursed on a biweekly schedule. Payday will be every other Thursday.
This disbursement schedule is predicated upon normal working conditions and is subject
to adjustment for cause beyond the City's control.
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Appendix A Classifications
Employees in the classifications listed below, in alphabetical order, are covered by this
Exhibit.
Administration Executive Assistant
Administrative Assistant III Confidential
Human Resources Administrative Assistant I*
Human Resources Administrative Assistant II*
Human Resources Administrative Assistant III*
Human Resources Information System Technician
Human Resources Specialist
Legal Assistant I*
Legal Assistant II*
Paralegal I*
Paralegal II*
Payroll Specialist
System Application Specialist Confidential
*Denotes positions within a career series
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