HomeMy WebLinkAboutItem 6i - Amendment to Management Compensation Resolution for Department Head Employment Contracts Item 6i
Department: Human Resources
Cost Center: 2007
For Agenda of: 6/16/2026
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Jeff Andrews, Human Resources Manager
SUBJECT: AMENDMENT TO MANAGEMENT COMPENSATION RESOLUTION FOR
DEPARTMENT HEAD EMPLOYMENT CONTRACTS
RECOMMENDATION
1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, approving an amendment to the July 1, 2025, through June
30, 2028, Unrepresented Management Compensation and Benefits Resolution”
authorizing the City Manager to negotiate and execute individual employment
contracts with Department Heads, providing variations in one-time compensation and
benefits within approved budgets and within the parameters established by the
Resolution, subject to approval as to form by the City Attorney; (Attachment A )and
2. Authorize the City Manager to execute an individual employment contract with the
Police Chief with recommended changes to compensation to address compaction that
exceeds the proposed parameters established by the Resolution.
POLICY CONTEXT
The resolution to amend unrepresented management compensation is in alignment with
Council adopted Labor Relations Objectives, the Compensation Philosophy, City Charter
provisions (e.g., Section 701 “…department heads of the City shall be appointed by and
may be removed by the City Manager”; Section 702: “After obtaining and considering the
recommendations of the City Manager, the Council shall provide in a manner not
inconsistent with this Charter, for the powers and duties of all officials and employees of
the City.”; Section 703: “The City Manager shall be the administrative head of the
government of the City. As such, the City Manager shall be responsible to the Council for
the efficient implementation of its policy and effective administration of all the affairs of
the City government that the office controls.”), and the City’s Personnel Rules and
Regulations Section 2.36.050 providing that Department Heads are members of the
unclassified service and subject to appointment based on merit and fitness and not
otherwise subject to the employment procedures and other provisions of the Chapter
2.36.
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Item 6i
DISCUSSION
Background
The City sets compensation and benefits for unrepresented management employees via
a standing Unrepresented Management Compensation Resolution1 (Resolution). To
enhance the City’s ability to recruit and retain high-level executive talent in a competitive
California labor market, staff recommend amending this Resolution to grant the City
Manager express authority to enter into individual employmen t contracts with Department
Heads.
The proposed amendment creates a two-tier framework for Department Head
employment, compensation, and benefits:
1. The Resolution: Remains the primary governing document for pay and benefits
for the unrepresented management classifications which include the department
heads and appointed officials.
2. Individual Employment Contracts: Authorizes the City Manager to negotiate and
execute individual employment contracts for the Department Head classifications
that may vary from the Resolution's standard provisions by allowing limited,
one-time compensation or benefits such as hiring bonu ses of up to one month’s
salary, relocation reimbursement up to $30,000, advanced vacation or sick leave
credits upon hire not to exceed four (4) weeks, or severance terms not to exceed
four (4) months’ compensation, all within the parameters established b y the
Resolution and within approved budget allocations. Ongoing changes to salary and
benefits will not be adjusted unless authorized by Council.
The proposed amendment to the Resolution establishes three primary pillars of
governance to modernize the City’s executive hiring and retention processes. First, it
provides the City Manager with the express authority to negotiate and execute individual
employment contracts across all Department Head classifications. Second, to ensure
fiscal accountability, the amendment requires that any variations in compensation or
benefits be contained within the existing Council-approved budget allocations. Finally, the
process maintains legal oversight by requiring that individual employment contracts be
reviewed and approved as to form by the City Attorney, ensuring full compliance with
applicable state laws and municipal regulations.
By customizing Department Head employment contracts to the unique professional
circumstances of highly qualified candidates, the City can ensure it remains agile and
competitive not just in attracting talent, but in securing their long-term commitment to the
organization’s strategic goals.
1 Unrepresented Management Compensation Resolution No. 11580 (2025 Series)
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Item 6i
Current Situation to be Addressed
It is recommended that variations from the standard provisions of the draft Resolution be
considered for the Police Chief to address the ongoing compensation compaction
between the Police Chief and Deputy Police Chief classifications. Because this change
involves adjustments to ongoing compensation and benefits rather than it being one-time
in nature, it falls outside the proposed authority of the City Manager and therefore requires
Council approval under the terms of the proposed Resolution.
At present, the differential between the two classifications (Police Chief and Deputy Police
Chief) is 12.8% when comparing base salary, but only 2.2% when considering total
compensation, excluding CalPERS retirement contributions which vary by incumbent.
Compensation differentials greater than 15% are considered optimal, differentials
between 10% and 15% are considered acceptable but not ideal, and differentials under
10% are considered to be low and require additional review and attention.
The recommendation is for the Council to authorize the City Manager to increase the City-
paid deferred compensation contribution for the Police Chief from 1% to 3% of salary,
and to extend the same educational benefits currently provided to Deputy Police C hiefs.
Specifically, this would include a biweekly payment of $400 for possession of a master’s
degree. These adjustments help to begin to address the total compensation differential
and increase it to approximately 7.4%, excluding CalPERS retirement contributions.
While this does not achieve an optimal differential, it represents meaningful progress and
remains fiscally supportable. These revisions would be included in an employment
contract between the City and the Police Chief as described above if Counc il approves
the use of individual employment contracts for Department Heads.
Previous Council or Advisory Body Action
The City Council adopted the July 1, 2025, to June 30, 2028, Unrepresented Management
Compensation Resolution on June 17, 2025. The Council also met with staff in closed
session on April 21, 2026, to discuss addressing the Police Chief compaction.
Public Engagement
This report is on the consent agenda for June 16, 2026. The agenda and report will be
posted seven days in advance of the meeting, and the public will have an opportunity to
provide feedback during public comment in advance of the Council voting on the consent
agenda.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Gui delines
Sec. 15378.
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Item 6i
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
One-Time
Cost
General
Fund $19,885 $16,085 $3,770
State
Federal
Fees
Other:
Total $19,885 $16,085 $3,770
There is no direct fiscal impact for authorizing the City Manager to negotiate and execute
individual employment contracts with Department Heads. However, if there is a variation
in compensation and benefits, it must be supported by existing appropriations within the
adopted budget.
The recommended ongoing compensation adjustment for the Police Chief results in an
annual cost of $16,085 in FY 2026-27, with costs increasing in subsequent fiscal years
because the recommended increase to deferred compensation is calculated as a
percentage of salary. In addition, there is an estimated one -time cost of approximately
$3,770 to implement these changes in the City’s Enterprise Resource Planning system.
ALTERNATIVES
1. Authorize the City Manager to enter into Employment Contracts with
Department Heads using only the terms established in the existing Management
Resolution. Under this alternative, the City Manager would not be permitted to
authorize any variations in compensation or benefits for Department Heads, even
when such adjustments fall within approved budgets, without obtaining prior Council
approval.
2. Authorize the City Manager to enter into an Employment Contract with the
Police Chief with modified terms. Under this alternative, the Council may choose to
approve a different set of ongoing compensation or benefit changes for the Police
Chief than those recommended, such as authorizing only the educ ation incentive or
only the deferred compensation adjustment or selecting another combination of
modifications.
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Item 6i
3. Authorize changes to the Police Chief’s compensation, but do not authorize the
City Manager to enter into employment contracts with Department Heads. Under
this alternative, the Resolution and Unrepresented Management Compensation and
Benefits exhibit will need to be amended to add sections to address these specific
compensation changes for only the Police Chief.
4. The Council may choose to maintain the status quo. Under this alternative, the
City would continue its current practice of issuing offer letters for department head
positions in accordance with the existing Management Compensation Resolution. Any
requested deviations from the Resolution’s established compensation or benefit
provisions would require separate Council consideration and approval.
ATTACHMENTS
A. Draft Resolution to Amend Unrepresented Management Compensation Resolution
B. Exhibit A Current Unrepresented Management Compensation and Benefits
C. Exhibit B Amended Unrepresented Management Compensation and Benefits
D. Sample Department Head Employment Contract
Page 131 of 476
Page 132 of 476
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE JULY
1, 2025, THROUGH JUNE 30, 2028, UNREPRESENTED MANAGEMENT
COMPENSATION AND BENEFITS RESOLUTION
WHEREAS, on June 17, 2025, the City Council (“Council”) adopted Resolution No.
11580 (2025 Series), Unrepresented Management Compensation and Benefits
Resolution (“Current Resolution”), attached hereto as Exhibit “A” and incorporated herein
by this reference; and
WHEREAS, the Current Resolution outlines approved compensation and benefits
for management level employees, including department heads; and
WHEREAS, the Current Resolution does not provide for individual employment
contracts for department heads; and
WHEREAS, Council has determined that it would be in the City’s best interest to
enhance the City’s ability to recruit and retain highly qualified individuals as department
heads by providing the flexibility to enter into individual employment contracts with
department heads; and
WHEREAS, to accomplish this as efficiently as possible, Council has determined
to provide the City Manager with the authority, without further approval by Council, to
enter into individual employment contracts with current and prospective department
heads, as determined to be appropriate by the City Manager, subject to the terms and
parameters set forth in the Amended Unrepresented Management Compensation and
Benefits Resolution (“Amended Resolution”), attached hereto as Exhibit “B” and
incorporated herein by this reference.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Amended Unrepresented Management Compensation and
Benefits Resolution, attached hereto as Exhibit “B” and incorporated herein by this
reference, to authorize the City Manager to enter into individual employment contracts
with current and prospective department heads within the parameters established by the
Amended Resolution, is hereby approved by the Council.
SECTION 2. Except as modified by the Amended Resolution, all terms and
conditions of the Current Resolution (Resolution No. 11580 (2025 Series) remain as
previously approved.
Page 133 of 476
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 3. Amendments to compensation for Unrepresented Managers do not
constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 26.
___________________________
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
Page 134 of 476
R 11579
RESOLUTION NO. 11580 (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING MANAGEMENT COMPENSATION
FOR APPOINTED OFFICIALS, DEPARTMENT HEADS, AND
MANAGEMENT EMPLOYEES AND SUPERSEDING PREVIOUS
RESOLUTIONS IN CONFLICT
WHEREAS, the Unrepresented Management employees of the City of San Luis
Obispo remain 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 Management group are
revised as follows:
SECTION 1. The City agrees to increase the salaries of Unrepresented
Management 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%
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. 11579 (2025 Series) Page 2
R 11580
SECTION 5. Amendments to compensation and benefits for Unrepresented
Management 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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6/25/2025 | 5:03 PM PDT
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Unrepresented Management Employees Resolution Exhibit A
Table of Contents
Exhibit A Sections
Section A Pay for Performance ................................................................................. 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 Supplemental Retirement ......................................................................... 6
Section G Vacation ................................................................................................... 6
Section H Administrative Leave ................................................................................ 7
Section I Holidays .................................................................................................... 8
Section J Sick Leave ................................................................................................ 9
Section K Bereavement Leave ............................................................................... 10
Section L Workers’ Compensation Leave .............................................................. 10
Section M Temporary Upgrade Assignment ............................................................ 11
Section N Bilingual Pay ........................................................................................... 11
Section O Vehicle Assignment ................................................................................ 11
Section P Uniform Allowance .................................................................................. 11
Section Q Payday ................................................................................................... 12
Section R Appointed Officials .................................................................................. 12
Appendix A Classifications ........................................................................................ 13
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EXHIBIT “A”
Section A Pay for Performance
In 1996 the City Council established the Management Pay for Performance System for
department heads and management employees. The system is designed to recognize and
reward excellent performance by department heads and managers and to provide an
incentive for continuous improvement and sustained high performance. Instead of step
increases, the department heads and management employees move through their salary
range solely according to accomplishment of objectives and job-related behavior. Further
information about the Management Pay for Performance System is found in the
Management Pay for Performance System Guide.
Section B Medical, Dental, Vision
The City shall establish and maintain medical, dental, and vision insurance plans for
appointed officials, department heads, management 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 Employee’s 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.
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 Only “Legacy” $790 $790
Employee Plus One $1,323 $1,470
Family $1,792 $1,911
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EXHIBIT “A”
Employees hired prior to September 1, 2008, who elect employee only medical coverage
will receive the health flex contribution listed above for employee only “legacy” coverage
until such amount is less than the Employee Only (non-Legacy) contribution amount. As of
January 1, 2015, if an employee who is receiving Employee Only or Opt-out “legacy”
coverage changes their level of coverage, they will be eligible to return to the “legacy”
coverage in a future year.
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 employee only “legacy” amount will not adjust. 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. The
monthly conditional opt-out (Cash-in-Lieu) incentives are: Opt-
out $200 Docusign
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EXHIBIT “A”
Legacy” Opt-out $790 (hired before September 1, 2008)
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/Dependent 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 $15,000 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 management 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 a $100,000 term life insurance, including accidental death and
dismemberment through the City’s Cafeteria Plan.
Section E Retirement
A. CalPERS Contracts. Non-sworn employees are classified as Miscellaneous. All
employees work twelve (12) months per year.
1. “Classic Members First Tier” non-sworn and sworn employees hired before
December 6, 2012.
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EXHIBIT “A”
The City agrees to provide the Public Employees' Retirement System’s (CalPERS)
2.7% at age 55 plan to all non-sworn employees and the 3% at 50 plan to all sworn
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. The 3% at age 50 plan includes
the following amendments: Post-Retirement Survivor Allowance, conversion of
unused sick leave credit to additional retirement credit, 1959 Survivor’s Benefit-
Level Four, one-year final compensation, Military Service Credit, and Pre-
Retirement Optional Settlement 2 Death Benefit. Employees will pay the entire 8%
first tier miscellaneous) or 9% (safety) member contribution, as applicable. 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 or 12%,
as applicable.
2. “Classic Members Second Tier” non-sworn and sworn employees hired on or
after December 6, 2012.
The City agrees to provide the CalPERS 2% at 60 plan for non-sworn employees
using the highest three-year average as final compensation. The second-tier
formula for non-sworn employees will include the following amendments: 1959
Survivor’s Benefit – Level Four, conversion of unused sick leave to additional
retirement credit, Military Service Credit, and Pre-Retirement Optional Settlement
2 Death Benefit. Employees hired under this plan will pay the full member
contribution required under the plan, presently seven percent (7%).
For sworn “Classic Members” hired on or after December 6, 2012, the City will
provide the CalPERS 3% at 55 plan for sworn Fire employees and 2% at 50 plan
for sworn Police employees using the highest three-year average as final
compensation. The second-tier formula for sworn employees will include the
following amendments: Post Retirement Survivor Allowance, conversion of unused
sick leave to additional retirement credit, the 1959 Survivor’s Benefit – Level Four,
Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
Employees will pay the entire 7% (second tier miscellaneous) or 9% (safety)
member contribution, as applicable. 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 or 12%, as applicable.
3. “New Members Third Tier” non-sworn and sworn employees hired after January
1, 2013. CalPERS determines who 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 for non-sworn employees and
2.7% at 57 plan for sworn employees, using the highest three-year average as
final compensation.
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EXHIBIT “A”
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 Supplemental Retirement
The City shall contribute one percent (1%) of salary for department heads to a defined
contribution supplemental retirement plan established in accordance with sections 401(a)
and 501(a) of the Internal Revenue Code of 1986 and California Government Code
sections 53215-53224. Department heads and managers are eligible to make elective
contributions to this plan.
Section G 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.
Management Employees
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
Appointed Officials & Department Heads
Years of Service
Annual
Vacation
Accrual Days*
Annual
Vacation
Accrual Hours
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.
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EXHIBIT “A”
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 management 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
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 H Administrative Leave
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EXHIBIT “A”
Administrative leave provided to exempt management employees is paid time off in
recognition of the extended work hours and the lack of eligibility for overtime
compensation associated with their positions. Administrative leave is not accrued based
on hours worked and is not compensable upon separation from the City.
Appointed officials and department heads shall be advanced 80 hours of administrative
leave the pay period that January 1st falls into.
Deputy directors and other positions, as designated by the department head, required to
regularly work night meetings shall be advanced 64 hours of administrative leave the pay
period that January 1st falls into.
Other management employees shall be advanced 48 hours of administrative leave the
pay period that January 1st falls into.
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.
Appointed officials, department heads, and management employees are considered
exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and not
eligible for overtime payment. In general, management employees are expected to work
the hours necessary to successfully carry out their duties and frequently must return to
work or attend meetings and events outside their normal working hours. However, in the
event a state of emergency is called for the City of San Luis Obispo by the City Council,
County of San Luis Obispo, State of California, or Federal Government, employees can
be paid at the rate of time-and-one-half for the hours worked in excess of forty (40) hours
per week on activities related to disaster management and recovery that are reimbursable
by state or federal funding. Approved employees can be similarly compensated when
rendering aid to other agencies in an emergency declaration situation where overtime is
reimbursable by the requesting agency upon approval by their Department Head or their
designee.
Section I 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
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EXHIBIT “A”
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 work week. A holiday 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.
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 check; however, there is no provision to receive cash payment for
unused floating holiday hours.
Section J 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.
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EXHIBIT “A”
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%
ii. Retirement and actual commencement of CalPERS benefits:
a. After ten years of continuous employment – 10%
b. After twenty years of continuous employment – 15%
Section K 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 L Workers’ Compensation Leave
An employee who is absent from duty because of 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.
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EXHIBIT “A”
If an employee is eligible for Total Temporary Disability benefits after exhausting 4850 or
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 M Temporary Upgrade Assignment
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 no less than five percent (5%) or be placed at the bottom of the higher
range, whichever is greater, but in no case more than the top salary of the higher range,
in addition to their regular base rate commencing on the eleventh (11th) consecutive
workday of the temporary upgrade assignment. 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 Vehicle Assignment
The Fire Chief and Police Chief will be provided a City vehicle for emergency response
during off-duty time. Other department heads shall receive a car allowance of $236 per
month, paid semi-monthly.
The use of a personal automobile for City business will be eligible for mileage
reimbursement in accordance with standard City policy.
Section P Uniform Allowance
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EXHIBIT “A”
The Fire Chief, Deputy Fire Chief, and Fire Marshal shall receive $1,300 per year uniform
allowance paid on a biweekly basis.
The Police Chief shall receive $1,300 per year uniform allowance issued in the amount
of $650 on the first paycheck in December and June. New hires will receive a prorated
amount on a biweekly basis. Uniform allowance will not be prorated upon separation from
employment.
For “Classic Members” as defined by CalPERS, uniform allowance shall be reported to
CalPERS as special compensation.
Section Q 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.
Section R Appointed Officials
The benefits outlined in this exhibit for department heads apply to appointed officials,
except where they have been modified by City Council resolution.
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EXHIBIT “A”
Appendix A Classifications
Employees in the classifications listed below, in alphabetical order, are covered by this
Exhibit.
Accountant
Active Transportation Manager
Assistant City Attorney I
Assistant City Attorney II
Assistant City Manager Community Services
Building Permit Services Supervisor
Business Analyst
Capital Improvement Program Administrative Manager
City Attorney
City Biologist
City Clerk
City Manager
Code Enforcement Supervisor
Construction Engineering Manager
Construction Engineering Manager Professional Engineer
Data Analyst
Deputy City Attorney I
Deputy City Attorney II
Deputy City Attorney III
Deputy City Manager
Deputy Director of Community Development Chief Building Official
Deputy Director of Community Development City Planner
Deputy Director of Finance City Controller
Deputy Director of Public Works City Engineer
Deputy Director of Public Works Maintenance Operations
Deputy Director of Public Works Mobility Services
Deputy Director of Utilities Engineering and Planning
Deputy Director of Utilities Wastewater
Deputy Director of Utilities Water
Deputy Fire Chief*
Director of Community Development
Director of Finance
Director of Human Resources
Director of Parks and Recreation
Director of Public Works
Director of Utilities
Diversity Equity and Inclusion Manager
Economic Development Analyst
Economic Development and Tourism Manager
Emergency Manager
Facilities Maintenance Supervisor
Financial Analyst
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EXHIBIT “A”
Fire Chief*
Fire Marshal
Fleet Maintenance Supervisor
Golf Supervisor
Homelessness Response Manager
Human Resources Analyst
Human Resources Manager
Information Services Supervisor
Information Technology Manager
Laboratory Manager
Legal Analyst
Maintenance Superintendent
Maintenance Supervisor
Mobility Services Business Manager
Network Services Supervisor
Parking Enforcement Supervisor
Parking Operations Supervisor
Parking Program Manager
Parks Maintenance Supervisor
Payroll Analyst
Police Chief*
Police Public Affairs Manager
Policy and Project Manager
Principal Budget Analyst
Principal Planner
Public Communications Manager
Recreation Manager
Recreation Supervisor
Risk and Benefits Manager
Safety Manager
Senior Accountant
Senior Business Analyst
Senior Civil Engineer
Senior Financial Analyst
Senior Human Resources Analyst
Senior Legal Analyst
Senior Payroll Analyst
Senior Planner
Solid Waste and Recycling Program Manager
Stormwater Program Manager
Streets Maintenance Supervisor
Supervising Building Inspector
Supervising Civil Engineer
Sustainability and Natural Resources Analyst
Sustainability and Natural Resources Official
Sustainability Manager
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EXHIBIT “A”
Technology Project Manager
Tourism and Community Promotions Manager
Transportation Manager
Transportation Manager Professional Engineer/Traffic Engineer
Utilities Business Manager
Utilities Special Projects Manager
Utilities Special Projects Manager Professional Engineer
Wastewater Collection System Supervisor
Water Distribution System Supervisor
Water Resource Recovery Facility Supervisor
Water Resources Program Manager
Water Treatment Plant Supervisor
Whale Rock Reservoir Supervisor
Denotes Sworn classifications
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Page 152 of 476
Amended Unrepresented Management Employees Resolution
Exhibit AB
Table of Contents
Exhibit A Sections
Section A Pay for Performance ................................................................................. 3
Section B Medical, Dental, Vision ............................................................................. 3
Section C Health Flex Contribution ........................................................................... 3
Section D Life and Disability Insurance ..................................................................... 5
Section E Retirement ................................................................................................ 5
Section F Supplemental Retirement ......................................................................... 7
Section G Vacation ................................................................................................... 7
Section H Administrative Leave ................................................................................ 8
Section I Holidays .................................................................................................... 9
Section J Sick Leave .............................................................................................. 10
Section K Bereavement Leave ............................................................................... 11
Section L Workers’ Compensation Leave .............................................................. 11
Section M Temporary Upgrade Assignment ............................................................ 12
Section N Bilingual Pay ........................................................................................... 12
Section O Vehicle Assignment ................................................................................ 12
Section P Uniform Allowance.................................................................................. 12
Section Q Payday ................................................................................................... 13
Section R Appointed Officials.................................................................................. 13
Section S Individual Employment Contracts for Department Heads ....................... 13
Appendix A Classifications ........................................................................................ 15
Section A Pay for Performance ................................................................................. 3
Section B Medical, Dental, Vision ............................................................................. 3
Section C Health Flex Contribution ........................................................................... 3
Section D Life and Disability Insurance ..................................................................... 5
Section E Retirement ................................................................................................ 5
Section F Supplemental Retirement ......................................................................... 7
Section G Vacation ................................................................................................... 7
Section H Administrative Leave ................................................................................ 8
Section I Holidays .................................................................................................... 9
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EXHIBIT “A”
Section J Sick Leave .............................................................................................. 10
Page 154 of 476
EXHIBIT “AB”
Section A Pay for Performance
In 1996 the City Council established the Management Pay for Performance System for
department heads and management employees. The system is designed to recognize and
reward excellent performance by department heads and managers and to provide an
incentive for continuous improvement and sustained high performance. Instead of step
increases, the department heads and management employees move through their salary
range solely according to accomplishment of objectives and job-related behavior. Further
information about the Management Pay for Performance System is found in the
Management Pay for Performance System Guide.
Section B Medical, Dental, Vision
The City shall establish and maintain medical, dental, and vision insurance plans for
appointed officials, department heads, management 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 Employee’s 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.
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 Only “Legacy” $790 $790
Employee Plus One $1,323 $1,470
Family $1,792 $1,911
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EXHIBIT “AB”
Employees hired prior to September 1, 2008, who elect employee only medical coverage
will receive the health flex contribution listed above for employee only “legacy” coverage
until such amount is less than the Employee Only (non-Legacy) contribution amount. As of
January 1, 2015, if an employee who is receiving Employee Only or Opt-out “legacy”
coverage changes their level of coverage, they will be eligible to return to the “legacy”
coverage in a future year.
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 employee only “legacy” amount will not adjust.
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.
The monthly conditional opt-out (Cash-in-Lieu) incentives are:
Opt-out $200
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EXHIBIT “AB”
“Legacy” Opt-out $790 (hired before September 1, 2008)
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/Dependent 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 $15,000 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 management 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 a $100,000 term life insurance, including accidental death and
dismemberment through the City’s Cafeteria Plan.
Section E Retirement
A. CalPERS Contracts. Non-sworn employees are classified as Miscellaneous. All
employees work twelve (12) months per year.
1. “Classic Members First Tier” non-sworn and sworn employees hired before
December 6, 2012.
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EXHIBIT “AB”
The City agrees to provide the Public Employees' Retirement System’s (CalPERS)
2.7% at age 55 plan to all non-sworn employees and the 3% at 50 plan to all sworn
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. The 3% at age 50 plan includes
the following amendments: Post-Retirement Survivor Allowance, conversion of
unused sick leave credit to additional retirement credit, 1959 Survivor’s Benefit -
Level Four, one-year final compensation, Military Service Credit, and Pre-
Retirement Optional Settlement 2 Death Benefit. Employees will pay the entire 8%
(first tier miscellaneous) or 9% (safety) member contribution, as applicable. 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 or 12%,
as applicable.
2. “Classic Members Second Tier” non-sworn and sworn employees hired on or
after December 6, 2012.
The City agrees to provide the CalPERS 2% at 60 plan for non-sworn employees
using the highest three-year average as final compensation. The second-tier
formula for non-sworn employees will include the following amendments: 1959
Survivor’s Benefit – Level Four, conversion of unused sick leave to additional
retirement credit, Military Service Credit, and Pre-Retirement Optional Settlement
2 Death Benefit. Employees hired under this plan will pay the full member
contribution required under the plan, presently seven percent (7%).
For sworn “Classic Members” hired on or after December 6, 2012, the City will
provide the CalPERS 3% at 55 plan for sworn Fire employees and 2% at 50 plan
for sworn Police employees using the highest three-year average as final
compensation. The second-tier formula for sworn employees will include the
following amendments: Post Retirement Survivor Allowance, conversion of unused
sick leave to additional retirement credit, the 1959 Survivor’s Benefit – Level Four,
Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
Employees will pay the entire 7% (second tier miscellaneous) or 9% (safety)
member contribution, as applicable. 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 or 12%, as applicable.
3. “New Members Third Tier” non-sworn and sworn employees hired after January
1, 2013. CalPERS determines who 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 for non-sworn employees and
2.7% at 57 plan for sworn employees, using the highest three-year average as
final compensation.
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EXHIBIT “AB”
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 Supplemental Retirement
The City shall contribute one percent (1%) of salary for department heads to a defined
contribution supplemental retirement plan established in accordance with sections 401(a)
and 501(a) of the Internal Revenue Code of 1986 and California Government Code
sections 53215-53224. Department heads and managers are eligible to make elective
contributions to this plan.
Section G 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.
Management Employees
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
Appointed Officials & Department Heads
Years of Service
Annual
Vacation
Accrual Days*
Annual
Vacation
Accrual Hours
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.
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EXHIBIT “AB”
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 management 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
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 H Administrative Leave
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EXHIBIT “AB”
Administrative leave provided to exempt management employees is paid time off in
recognition of the extended work hours and the lack of eligibility for overtime
compensation associated with their positions. Administrative leave is not accrued based
on hours worked and is not compensable upon separation from the City.
Appointed officials and department heads shall be advanced 80 hours of administrative
leave the pay period that January 1st falls into.
Deputy directors and other positions, as designated by the department head, required to
regularly work night meetings shall be advanced 64 hours of administrative leave the pay
period that January 1st falls into.
Other management employees shall be advanced 48 hours of administrative leave the
pay period that January 1st falls into.
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.
Appointed officials, department heads, and management employees are considered
exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and n ot
eligible for overtime payment. In general, management employees are expected to work
the hours necessary to successfully carry out their duties and frequently must return to
work or attend meetings and events outside their normal working hours. However, in the
event a state of emergency is called for the City of San Luis Obispo by the City Council,
County of San Luis Obispo, State of California, or Federal Government, employees can
be paid at the rate of time-and-one-half for the hours worked in excess of forty (40) hours
per week on activities related to disaster management and recovery that are reimbursable
by state or federal funding. Approved employees can be similarly compensated when
rendering aid to other agencies in an emergency declaration situation where overtime is
reimbursable by the requesting agency upon approval by their Department Head or their
designee.
Section I 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
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EXHIBIT “AB”
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 work week. A holiday 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.
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 check; however, there is no provision to receive cash payment for
unused floating holiday hours.
Section J 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.
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EXHIBIT “AB”
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%
ii. Retirement and actual commencement of CalPERS benefits:
a. After ten years of continuous employment – 10%
b. After twenty years of continuous employment – 15%
Section K 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 L Workers’ Compensation Leave
An employee who is absent from duty because of 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.
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EXHIBIT “AB”
If an employee is eligible for Total Temporary Disability benefits after exhausting 4850 or
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 M Temporary Upgrade Assignment
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 no less than five percent (5%) or be placed at the bottom of the higher
range, whichever is greater, but in no case more than the top salary of the higher range,
in addition to their regular base rate commencing on the eleventh (11th) consecutive
workday of the temporary upgrade assignment. 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 Vehicle Assignment
The Fire Chief and Police Chief will be provided a City vehicle for emergency response
during off-duty time. Other department heads shall receive a car allowance of $236 per
month, paid semi-monthly.
The use of a personal automobile for City business will be eligible for mileage
reimbursement in accordance with standard City policy.
Section P Uniform Allowance
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EXHIBIT “AB”
The Fire Chief, Deputy Fire Chief, and Fire Marshal shall receive $1,300 per year uniform
allowance paid on a biweekly basis.
The Police Chief shall receive $1,300 per year uniform allowance issued in the amount
of $650 on the first paycheck in December and June. New hires will receive a prorated
amount on a biweekly basis. Uniform allowance will not be prorated upon separation from
employment.
For “Classic Members” as defined by CalPERS, uniform allowance shall be reported to
CalPERS as special compensation.
Section Q 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.
Section R Appointed Officials
The benefits outlined in this exhibit for department heads apply to appointed officials,
except where they have been modified by City Council resolution.
Section S Individual Employment Contracts for Department Heads
To enhance the City’s ability to recruit and retain high -level executive talent, the City
Manager is authorized to negotiate and execute individual employment contracts for
employees within the Department Head classifications, as determined by the City
Manager to be appropriate and in the best interests of the City. Individual employment
contracts may vary from the standard provisions set forth in this Resolution, or may
establish other provisions, without further approval of Council, including, but not limited
to:
One-Time Lump Sum Hiring Bonus: A one-time hiring bonus, not to exceed one
(1) month’s base salary.
Relocation Reimbursement: Total relocation reimbursement not to exceed
$30,000.
Leave Balances: Advanced vacation and/or sick leave credits upon hire, provided
such credits do not exceed four (4) weeks.
Separation: Specific severance terms and conditions with severance pay not to
exceed four (4) months’ compensation.
However, individual employment contracts with Department Heads may not provide
compensation (including base salary, ongoing pay incentives, deferred compensation, or
health insurance contributions), allowances (including vehicle or technology allowances),
or any form of compensation that is reportable to CalPERS as special compensation,
beyond what is otherwise authorized in this Resolution without Council approval.
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EXHIBIT “AB”
Compensation or benefits negotiated under an individual employment contract must also
be contained within the existing budget allocations previously approved by the City
Council. Individual employment contracts shall be subject to review and approval as to
form by the City Attorney. In the event of a conflict between the terms of an individual
employment contract and the general provisions of this Resolution, the terms of the
individual employment contract shall prevail for the specific employee covered by that
contract.
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EXHIBIT “AB”
Appendix A Classifications
Employees in the classifications listed below, in alphabetical order, are covered by this
Exhibit.
Accountant
Active Transportation Manager
Assistant City Attorney I
Assistant City Attorney II
Assistant City Manager Community Services**
Building Permit Services Supervisor
Business Analyst
Capital Improvement Program Administrative Manager
Chief Building Official
City Attorney***
City Biologist
City Clerk
City Manager***
Code Enforcement Supervisor
Construction Engineering Manager
Construction Engineering Manager Professional Engineer
Data Analyst
Deputy City Attorney I
Deputy City Attorney II
Deputy City Attorney III
Deputy City Manager**
Deputy Director of Community Development Chief Building Official
Deputy Director of Finance City Controller
Deputy Director of Public Works City Engineer
Deputy Director of Public Works Maintenance Operations
Deputy Director of Public Works Mobility Services
Deputy Director of Utilities Engineering and Planning
Deputy Director of Utilities Wastewater
Deputy Director of Utilities W ater
Deputy Fire Chief*
Director of Community Development**
Director of Finance**
Director of Human Resources**
Director of Parks and Recreation**
Director of Public Works and Utilities**
Director of Utilities
Diversity Equity and Inclusion Manager
Economic Development Analyst
Economic Development and Tourism Manager
Emergency Manager
Facilities Maintenance Supervisor
Financial Analyst
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EXHIBIT “AB”
Fire Chief*, **
Fire Marshal
Fleet Maintenance Supervisor
Golf Supervisor
Homelessness Response Manager
Human Resources Analyst
Human Resources Manager
Information Services Supervisor
Information Technology Manager
Laboratory Manager
Legal Analyst
Maintenance Superintendent
Maintenance Supervisor
Mobility Services Business Manager
Network Services Supervisor
Parking Enforcement Compliance Supervisor
Parking Operations Supervisor
Parking Program Manager
Parks Maintenance Supervisor
Payroll Analyst
Police Chief*, **
Police Public Affairs Manager
Policy and Project Manager
Principal Budget Analyst
Principal Planner
Public Communications Manager
Recreation Manager
Recreation Supervisor
Risk and Benefits Manager
Safety Manager
Senior Accountant
Senior Business Analyst
Senior Civil Engineer
Senior Financial Analyst
Senior Human Resources Analyst
Senior Legal Analyst
Senior Payroll Analyst
Senior Planner
Solid Waste and Recycling Program Manager
Stormwater Program Manager
Streets Maintenance Supervisor
Supervising Building Inspector
Supervising Civil Engineer
Sustainability and Natural Resources Analyst
Sustainability and Natural Resources Official
Sustainability Manager
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EXHIBIT “AB”
Technology Project Manager
Tourism and Community Promotions Manager
Transportation Manager
Transportation Manager Professional Engineer Traffic Engineer
Utilities Business Manager
Utilities Special Projects Manager
Utilities Special Projects Manager Professional Engineer
Wastewater Collection System Supervisor
Water Distribution System Supervisor
Water Resource Recovery Facility Supervisor
Water Resources Program Manager
Water Treatment Plant Supervisor
Whale Rock Reservoir Supervisor
*Denotes Sworn classifications
**Denotes Department Head Classifications
*** Denotes Appointed Officials
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Exhibit A
SAMPLE CONTRACT OF EMPLOYMENT WITH
[EMPLOYEE NAME] DEPARTMENT HEAD
XX DEPARTMENT
THIS CONTRACT, is entered into as of the XX day of [MONTH], [YEAR],
by and between the CITY OF SAN LUIS OBISPO, State of California, a municipal
corporation and charter city (hereinafter referred to as "CITY"), and XX, a contract
employee (hereinafter referred to as “EMPLOYEE”);
WITNESSETH:
WHEREAS, CITY Charter Section 703 provides that the CITY MANAGER
shall be the administrative head of the CITY, and
WHEREAS, CITY Charter Section 701 provides that department heads of
the CITY shall be appointed by and may be removed by the CITY MANAGER, and
WHEREAS, CITY Charter Section 709 provides that the CITY COUNCIL
shall, by ordinance or resolution, prescribe the hiring, discharge, and performance
standards of appointees, department heads, and other appointive officials, and
WHEREAS, CITY Charter Section 711 provides that the compensation of
all CITY officials and employees shall be fixed by ordinance or resolution, and
WHEREAS, by Resolution [##], CITY COUNCIL has outlined the
parameters of compensation and benefits for department heads and has
authorized the CITY MANAGER to negotiate and enter into individual employment
contracts with department heads within and subject to the parameters outlined in
Resolution [##], and
WHEREAS, the CITY desires to (hire or continue the employment of ) XX as
department head of the XX department, subject to the terms and conditions of
employment set forth in this CONTRACT , and EMPLOYEE has agreed to (accept
or continue) the position of department head of the XX department, subject to the
terms and conditions of employment set forth in this CONTRACT.
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of EMPLOYEE as department head of the XX
department pursuant to the terms and conditions of this CONTRACT
is effective [DATE].
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B. Nothing in this CONTRACT shall prevent, limit, or otherwise interfere
with the right of the CITY MANAGER to terminate the services of
EMPLOYEE as department head of the XX department at any time,
subject only to the provisions set forth in Section 13 of this Contract.
C. Nothing in this CONTRACT shall prevent, limit or otherwise interfere
with the right of EMPLOYEE to resign at any time from their position
with the CITY, subject only to the provision set forth in Section 14 of
this CONTRACT.
Section 2. Acknowledgement of At-Will Status.
A. It is recognized and agreed that EMPLOYEE, as a department head,
is an at-will employee and may be discharged from employment with
the CITY or removed from their position as department head of XX
department at any time, with or without cause, as determined by the
CITY MANAGER in their sole discretion, subject only to the terms
and conditions of this CONTRACT and, if applicable, the Firefighter
Bill of Rights for a Fire Chief or the Police Officer Bill of Rights for a
Police Chief.
B. As an at-will employee, EMPLOYEE shall have no right of appeal,
grievance, or other claim regarding any decision to discharge XX
from employment with the CITY or to remove EMPLOYEE from their
position as department head of XX department, subject only to the
terms and conditions of this CONTRACT , and, if applicable, the
Firefighter Bill of Rights for a Fire Chief or the Police Officer Bill of
Rights for a Police Chief.
Section 3. Duties and Salary.
A. CITY agrees to employ EMPLOYEE as full-time department head of
the XX department to perform the functions and duties specified in
the CITY Charter and Municipal Code and to perform such other
legally permissible and proper duties and functions as the CITY
MANAGER may from time-to-time assign.
B. It is recognized EMPLOYEE is an exempt employee but is expected
to engage in those hours of work that are necessary to fulfill the
obligations of the department head position. EMPLOYEE is
authorized, with appropriate notification to CITY MANAGER, to from
time to time modify their regular work schedule in order to take time
off with pay, subject to otherwise applicable leave policies and within
available leave balances, while ensuring appropriate coverage of
their duties as a department head. Leave pursuant to this provision
shall not be used in lieu of vacation or administrative leave , which
leave balances shall be utilized where the hours spent performing
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duties of the department head are less than forty (40) hours in a
given work week.
C. CITY agrees to pay EMPLOYEE for their services rendered pursuant
hereto, an annual base salary of $XX, payable in installments at the
same time as the other management employees of the CITY are
paid. In addition, CITY agrees to increase the base salary of
EMPLOYEE annually by the cost-of-living adjustment approved by
the COUNCIL for all CITY management employees under any
successor Management Compensation Resolutions.
Section 4. Benefits.
A. In addition to the salary set forth in Section 3 of this CONTRACT,
and except as otherwise specifically set forth herein, EMPLOYEE
shall be entitled to the same benefits as those offered by the CITY
for all management employees, in accordance with the Management
Compensation Resolution, Resolution 11580 (2025 Series) and any
amended or successor resolutions.
B. CITY will provide EMPLOYEE a hiring incentive of $XX payable as a
one-time lump sum on their first paycheck. Failure to continue in City
service for three years due to voluntary resignation will result in the
need to repay a proportional amount of the hiring incentive ,
calculated on a biweekly basis. If EMPLOYEE is terminated,
repayment will not be required.
C. CITY will provide EMPLOYEE with reimbursement of transitional
expenses up to $XX to relocate their permanent residence to the San
Luis Obispo area within their first year of employment. Failure to
continue in City service for three years due to voluntary resignation
will result in the need to repay a proportional amount of the relocation
incentive, calculated on a biweekly basis. If EMPLOYEE is
terminated, repayment will not be required. Reimbursement
procedures can be found in the Recruitment, Referral, and Retention
Incentive Program.
D. CITY will provide EMPLOYEE with a one-time starting [sick or
vacation] leave bank of XX hours [not to exceed 4 weeks’ worth of
leave]. [Sick or Vacation] leave accrual is outlined in the
Management Compensation Resolution, Resolution 11580 (2025
Series) and any amended or successor resolutions.
Section 5. Performance Evaluation.
A. By [DATE], CITY MANAGER and EMPLOYEE shall establish
mutually agreeable written goals, performance objectives, and
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priorities for the performance period ending April 30, [XXXX]. An
annual formal performance evaluation of EMPLOYEE will be
conducted by the CITY MANAGER in April of [XXXX] in accordance
with the City's Management Evaluation Process. Consistent with the
schedule outlined above, based on the Management Evaluation
Process, and subject to performance as assessed by the CITY
MANAGER, EMPLOYEE’s compensation shall be reviewed by CITY
MANAGER in April [XXXX] consistent with the Management Pay-for-
Performance System in place at that time.
B. Each calendar year thereafter, CITY MANAGER shall review and
evaluate the performance and compensation of EMPLOYEE in
accordance with the adopted Management Evaluation Process.
Section 6. Outside Activities, Conduct and Behavior.
A. EMPLOYEE shall not engage in teaching, consulting, or other non-
CITY connected business without the prior approval of CITY
MANAGER.
B. EMPLOYEE shall comply with all local and state laws, regulations,
and requirements regarding conflicts-of-interest.
Section 7. Dues and Subscriptions.
CITY agrees to budget for and to pay for professional dues and
subscriptions of EMPLOYEE necessary or beneficial for their continuation and full
participation in national, regional, state, and local associations, as determined by
the CITY MANAGER in the CITY MANAGER’s sole discretion, that are necessary
or desirable for their continued professional participation, growth, and
advancement, and for the good of and in the best interests of the CITY.
Section 8. Professional Development.
A. CITY hereby agrees to budget for and to pay for travel and
subsistence expenses of EMPLOYEE for professional and official
travel, meetings, and occasions adequate to continue the
professional development of EMPLOYEE and to adequately pursue
necessary official functions for the CITY, including but not limited to
meetings and conferences, and such other national, regional, state,
and local governmental organizations, groups and/or committees.
B. CITY also agrees to budget for and to pay for travel and subsistence
expenses of EMPLOYEE for short courses, institutes, and seminars
that are necessary or beneficial for their professional development
and for the good of and in the best interests of the CITY as
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determined by the CITY MANAGER in the CITY MANAGER’S sole
discretion.
C. Other professional development may be agreed upon from time to
time between the CITY MANAGER and EMPLOYEE.
Section 9. General Expenses.
CITY recognizes that certain expenses of a non-personal and job-affiliated
nature will be incurred by EMPLOYEE in the performance of their duties for the
CITY, and hereby agrees to authorize the Finance Director to reimburse or to pay
said expenses, consistent with CITY policies, upon receipt of duly executed
expense or petty cash vouchers, receipts, statements or personal affidavits. In the
event there is a question whether an anticipated expense is within the scope of
CITY policy, EMPLOYEE shall consult with and obtain the confirmation from the
Director of Finance and, if necessary, the City Attorney, whether the anticipated
expense is within the scope of CITY policy prior to incurring any such expense. In
the event that EMPLOYEE incurs any expense without prior confirmation,
EMPLOYEE agrees that any expenses later determined by the Director of Finance
and/or City Attorney to be inconsistent with CITY policy will be reimbursed by
EMPLOYEE to the CITY within thirty (30) days of receipt of notice of such
disallowed expense.
Section 10. Indemnification.
Pursuant to and in accordance with the requirements and conditions of state
and local law, CITY shall defend, save harmless, and indemnify EMPLOYEE from
and against any and all claims, demands, causes of actions, losses, damages,
expenses (including but not limited to attorney’s fees as may be authorized against
public entities or officers consistent with state law) or liability of any kind whether
stated in or arising from tort, professional liability or any other legal action or
equitable theory, whether groundless or otherwise, arising out of an alleged act or
omission occurring in the performance of EMPLOYEE‘s duties as a Department
Head with the CITY to the fullest extent permitted by law. CITY may compromise
and settle any such claim, demand, or suit, and shall pay the amount of any
settlement or judgment rendered thereon to the fullest extent permitted by law.
This Section shall survive termination of this CONTRACT.
Section 11. Other Terms and Conditions of Employment.
The CITY MANAGER, in consultation with EMPLOYEE, shall fix any such
other terms and conditions of employment, as the CITY MANAGER may determine
from time to time, in their sole discretion, relating to the performance of
EMPLOYEE, provided such terms and conditions are not inconsistent with or in
conflict with the provisions of this CONTRACT, the CITY Charter, the
Unrepresented Management Employees Resolution adopted by CITY COUNCIL
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that is in effect at the time, the CITY Personnel Regulations, or any other applicable
law or regulation.
Section 12. No Reduction of Pay and/or Benefits.
CITY shall not at any time during the term of this CONTRACT, reduce the
salary, compensation or other financial benefits of EMPLOYEE, except to the
degree of such a reduction across-the-board for all employees of the CITY or if
EMPLOYEE provides written consent to the reduction.
Section 13. Termination and Severance Pay.
A. In the event EMPLOYEE’s employment is terminated by the CITY
without cause, or if EMPLOYEE resigns at the request of the CITY
MANAGER during such time that EMPLOYEE is otherwise willing
and able to perform the duties of a department head for the XX
department of CITY, and if EMPLOYEE signs, delivers to the CITY
MANAGER, and does not revoke, the General Release Agreement,
in a form to be approved by the City Attorney, the CITY shall pay
EMPLOYEE a lump sum cash payment equal to XX (XX) months’
[not to exceed four (4) months] compensation based on
EMPLOYEE’s then current compensation. Compensation shall
include base salary, car allowance, City contribution to deferred
compensation, and City contribution to health insurance at time of
separation.
B. In the event that EMPLOYEE is terminated for “good cause,” CITY
shall have no obligation to pay the lump sum severance payment
provided in section A above. For the purpose of this CONTRACT,
“good cause” shall mean any of the following:
(1) Malfeasance, dishonesty for personal gain, willful violation
of law, corrupt misconduct, or conviction of any felony.
(2) Conviction of a misdemeanor arising directly out of
EMPLOYEE’s duties pursuant to this CONTRACT.
(3) Willful abandonment of duties outlined in this CONTRACT.
“Good cause” shall not mean a mere loss of support of, or confidence
in, EMPLOYEE by CITY MANAGER.
C. Any termination of employment shall be done consistent with the
limitations established in the City Charter Section 709, which shall
be interpreted to exclude termination for “good cause” as set forth
above. Additionally, the CITY shall provide a minimum of thirty (30)
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days prior written notice to EMPLOYEE of the intent to terminate this
CONTRACT.
D. In the event the CITY and EMPLOYEE agree to a separation from
employment, for any reason or no reason, the CITY and EMPLOYEE
agree that no member of the COUNCIL, the CITY MANAGER, no
member of City Management staff, nor EMPLOYEE, shall make any
written, oral or electronic statement to any member of the public, the
press, or any CITY employee concerning EMPLOYEE’s termination
except in the form of a joint press release or statement, the content
of which is mutually agreeable to by the CITY and EMPLOYEE. The
joint press release or statement shall not contain any text or
information that is disparaging to either party. Either party may
verbally repeat the substance of the joint press release or statement
in response to an inquiry. Nothing herein shall be construed to
prevent the CITY from referring to or responding to inquiries about
third party or outside agency investigations or actions pertaining to
the official performance of EMPLOYEE.
Section 14. Resignation.
In the event EMPLOYEE voluntarily resigns their position with the CITY,
they shall give the CITY MANAGER at least thirty (30) days’ advance written
notice.
Section 15. General Provisions.
A. The text herein shall constitute the entire CONTRACT between the
parties.
B. This CONTRACT shall be binding upon the parties and upon and
inure to the benefit of the heirs at law, administrators, and executors
of the parties.
C. It is the intent of the CITY that this CONTRACT and the appointment
of EMPLOYEE as a department head with the CITY are in
accordance with the requirements and provisions of the CITY
Charter. W herever legally enforceable, the provisions of this
CONTRACT shall be construed in a manner consistent with the CITY
Charter. If any provision of this CONTRACT conflicts with the CITY
Charter, the Charter shall control to the fullest extent legally
enforceable.
D. If any provision, or any portion thereof, contained in this CONTRACT
is held to be unconstitutional, void, invalid or unenforceable by a
court of competent jurisdiction, the remainder of this CONTRACT, or
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portion thereof, shall be deemed severable, shall not be affected, and
shall remain in full force and effect.
IN WITNESS W HEREOF, CITY and EMPLOYEE have executed this
CONTRACT on the day and year first set forth above.
EMPLOYEE:
________________________________ ____________________
XX DATE
CITY:
By:__________________________________ _____________________
XX DATE
CITY MANAGER
APPROVED AS TO FORM:
_____________________________ ____________________
J. CHRISTINE DIETRICK DATE
CITY ATTORNEY
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