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HomeMy WebLinkAboutR-11316 amending Management Compensation, Appointed Officials, Department Heads, and Management EmplCity of San Luis Obispo, Human Resources, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7250, slocity.org MEMORANDUM DATE: November 17, 2023 TO: City Council FROM: Nickole Domini, Director of Human Resources SUBJECT: Administrative Correction to Council Resolution Nos. 11316 and 11317 (2022 Series) Compensation for Unrepresented Management and Confidential Employees, respectively It has been brought to staff’s attention that there is an unintended omission in the “Vacation” sections of City Council Resolution Nos. 11316 and 11317 (2022 Series). Currently, those sections state: “… employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave . Payment for unused vacation leave is subject to the availability of budgeted funds.” The “Vacation” sections of the previous City Council resolutions for those unrepresented groups (Resolution Nos. 11267 and 11268 (2021 Series)) states (emphasis added): “… employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave. 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 forty (40) hours of unused vacation leave will be paid out in any calendar year. Payment for unused vacation leave is subject to the availability of budgeted funds.” Due to an administrative error, the underlined portion of the “Vacation” sections of the 2021 Series resolutions were not incorporated into the 2022 Series resolutions. The bolded words were variations between the resolutions for the groups. As a result of the discovery, staff will be updating Council Resolution Nos. 11316 and 11317 (2022) to reflect the intended language effective November 17, 2023. R 11316 RESOLUTION NO. 11316 (2022 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 (Appointed Officials, Department Heads, and Management Employees) of the City of San Luis Obispo have remained committed to providing high quality service to the community; and WHEREAS, to achieve our service standards, the City must attract and retain highly qualified employees who exemplify our organizational values; and WHEREAS, fostering an environment attractive to such employees depends upon many factors, including a competitive compensation program; and WHEREAS, the City of San Luis Obispo has experienced challenges recruiting and retaining employees in the unrepresented management group; 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 fiscal sustainability of changes in compensation. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby revises unrepresented management compensation as follows: SECTION 1. The City agrees to increase the salaries of unrepresented management employees with a cost-of-living adjustment (COLA) effective on the following dates: 1.5% COLA the first full pay period of July 2022, a 3% COLA the first full pay period of July 2023, and a 3% COLA effective the first full pay period of July 2024 . SECTION 2. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit “A”, fully incorporated by reference. SECTION 3. The City agrees to implementation of the market equity adjustments for specified classifications as set forth in Exhibit “B” effective the first full pay period of April 2022, fully incorporated by reference. SECTION 4. The Director of Finance shall adjust the appropriate accounts to reflect the compensation changes. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 Resolution No. 11316 (2022 Series) Page 2 R 11316 SECTION 5. This resolution shall be in effect from April 19, 2022 through June 30, 2025. SECTION 6. Amendments to compensation for unrepresented management employees do not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of Vice Mayor Christianson, seconded by Council Member Marx, and on the following vote: AYES: Council Member Marx, Pease, Shoresman, Vice Mayor Christianson, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 19th day of April 2022. __________________________ 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 DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 4/21/2022 | 3:27 PM PDT Term of Agreement: April 19, 2022 to June 30, 2025 Unrepresented Management Compensation Appointed Officials, Department Heads, and Management Employees DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Unrepresented Management Resolution Exhibit A & B Table of Contents Exhibit A Sections Section A Medical, Dental, Vision ......................................................................................... 1 Section B Health Flex Allowance ........................................................................................... 2 Section C Life and Disability Insurance ................................................................................ 3 Section D Retirement ..................................................................................................... 4 Section E Supplemental Retirement ..................................................................................... 5 Section F Pay for Performance ...................................................................................... 6 Section G Vacation ................................................................................................................. 6 Section H Administrative Leave ......................................................................................7 Section I Holidays ......................................................................................................... 8 Section J Sick Leave ..................................................................................................... 9 Section K Workers' Compensation Leave .......................................................................... 10 Section L Work Out-of-Classification .................................................................................. 10 Section M Temporary Assignment ...................................................................................... 10 Section N Bilingual Pay................................................................................................. 11 Section O Vehicle Assignment ............................................................................................. 11 Section P Uniform Allowance ........................................................................................ 11 Section Q Appointed Officials ....................................................................................... 11 Exhibit "B" Equity Adjustments for Unrepresented Management Employee Classifications ........................................................................................................................ 12 DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 1 EXHIBIT "A" Section A 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. PERS Health Benefit Program The City has elected to participate in the California Public Employees' Retirement System (CalPERS) Health Benefit Program. The City shall contribute an equal amount towards the cost of medical coverage under the Public Employee's Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City's contribution toward coverage under PEMHCA shall be the statutory minimum contribution amount established by CalPERS on an annual basis. The City's contribution will come out of that amount the City currently contributes to employees as part of the City's Section 125 Plan "Cafeteria Plan". The cost of the City's participation in CalPERS will not require the City to expend additional funds toward health insurance. In summary, this cost and any increases will be borne by the employees. Health Insurance Benefits for Domestic Partners The City has adopted a resolution electing to provide health insurance benefits to domestic partners (Section 22873 of the PEMHCA). Conditional Opt Out In order to receive the conditional, opt-out incentive, employees will be required to complete an affidavit and provide proof of other minimum essential coverage for themselves and their qualified dependents (tax family) upon initial enrollment and annually thereafter. Employees are required to certify that they are not enrolled in an individual plan or in a medical plan offered under a federal marketplace or a state exchange plan. The monthly conditional opt-out incentives are: Opt Out "Legacy" Opt Out $200 $790 (hired before September 1, 2008) The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The conditional opt-out payment shall no longer be payable if the employee and family members cease to be enrolled in other minimum essential coverage. Employees on an unpaid leave of absence, will not be eligible to receive the conditional opt out payment. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 2 EXHIBIT "A" 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 Employee's 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 eye premium by payroll deductions on a pre- tax basis through the City's Cafeteria Plan. Section B Health Flex Allowance Employees electing medical coverage in the City's plans shall receive a health flex allowance, as defined by the Affordable Care Act (ACA) and shall purchase such coverage through the City's Cafeteria Plan. If the health flex allowance is less than the cost of the medical plan, the employee shall have the opportunity to pay the difference between the health flex allowance and the premium cost on a pre-tax basis through the City's Cafeteria Plan. In order to be eligible for the health flex allowance in a particular pay period, an employee will need to get paid for more than half of their regularly scheduled hours, unless the employee is on a protected leave. If the premium cost for medical coverage is less than the health flex allowance, the employee shall not receive any unused health flex in the form of cash or purchase additional benefits under the Cafeteria Plan. The monthly health flex allowance amount for regular, full -time employees is outlined below. Less than full-time employees shall receive a prorated share of the City's contribution. Level of Coverage 2022 Monthly Rate $600 $790 $1,187 $1,607 Employees hired prior to September 1, 2008 that elect employee only medical coverage will receive the health flex allowance listed above for employee only "legacy" coverage. As of January 1, 2015 , if an employee that 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 allowance, the employee shall no longer receive any unused health flex in the form of cash. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 3 EXHIBIT "A" Effective for the 2023, 2024, and 2025 premiums, the City's total health flex allowance for group medical coverage shall be modified by an amount equal to one-half of the average percentage increase for family coverage in the PERS health plans available in San Luis Obispo County. 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 contribution to the health flex allowance for two (2) pay periods in the event that an employee has exhausted all paid time off or leave approved under the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), whichever is sooner, due to an employee's catastrophic illness. That is, the employee shall receive regular City health flex allowance for the first two (2) pay periods following the pay period in which the employee's accrued leave balances reach zero (0) or FMLA/CFRA benefits have been exhausted. Section C 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 $11 ,250 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. Note: The City is researching the option of enrolling in State Disability Insurance. 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. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 4 EXHIBIT "A" Section D Retirement A. PERS Contracts 1. "Classic Members First Tier" non-sworn and sworn employees hired before December 6, 2012. The City agrees to provide the Public Employees' Retirement System's (PERS) 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. 2. "Classic Members Second Tier" non-sworn and sworn employees hired on or after December 6, 2012. The City agrees to provide the PERS 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 PERS 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. 3. "New Members Third Tier" non-sworn and sworn employees hired after January 1, 2013. PERS determines who are "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA). The City will provide the PERS 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. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 5 EXHIBIT "A" B. Member Contributions 1. "Classic Members First and Second Tier" Effective the first pay period in January 2012, employees began paying the full member contribution required under the plan for first and second tier sworn (9%) and non-sworn (8% and 7% respectively) employees and the City discontinued their payment of the member contribution. For purposes of this Section, employee contributions are based on salary and special compensation as defined by PERS. Effective the first full pay period in July 2019, all non-sworn and sworn employees shall contribute 1.5% in addition to the employee contribution defined in the paragraph above. Effective the first full pay period in July 2020, all non-sworn and sworn employees' additional contribution shall increase to 3%, in addition to the employee contribution defined in the paragraph above. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). 2. "New Members Third Tier" Effective on their date of hire, new members will pay 50% of the normal cost, as determined by PERS. Effective the first full pay period in July 2019, all non -sworn and sworn new members shall contribute 1.5% in addition to the employee paying 50% of the normal cost. Effective the first full pay period in July 2020, all non -sworn and sworn new members contribution shall increase to 3%, in addition to the employee paying 50% of the normal cost. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre-tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). Section E Supplemental Retirement The City shall contribute 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. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 6 EXHIBIT "A" Section F 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 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 designee authorization. Each employee 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 O to 4 years 12 days 96 hours 5 to 9 years 15 days 120 hours 10 to 19 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 O to 9 years 15 days 120 hours 10 to 19 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 line-item position. Effective as soon as administratively possible following Council adoption, employees will be eligible for a year-for-year prospective accelerated vacation accrual based on prior public sector 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. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 7 EXHIBIT "A" Vacation leave shall be accrued as earned biweekly provided that not more than twice the annual rate may be carried over to a new calendar year. Management employees vacation time shall not exceed twice the annual rate. If an employee reaches the cap 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. Appointed officials, department heads, and management employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave. 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 forty (40) hours of unused vacation leave will be paid out in any calendar year. Payment for unused vacation leave is subject to the availability of budgeted funds. To request payment for unused vacation leave, employees must submit an irrevocable election form to Payroll in December of each year, prior to the pay period that includes January 1 of the year the cash out is to be paid, to receive payment for accrued vacation effective on the pay period that includes January 1st of the following calendar year, subject to IRS regulations. Late irrevocable election forms will not be accepted, nor can they be changed after the deadline. The remaining unused leave shall remain in the employee's vacation accrual bank. The hours which are paid out are hours which will be accrued in following year. Section H Administrative Leave Appointed officials and department heads shall earn 80 hours of administrative leave the pay period that January 1st falls into. Deputy Directors and other management positions required to regularly work night meetings shall earn an additional 64 hours of administrative leave the pay period that January 1st falls into. This additional band of administrative leave will be effective the pay period starting on June 23, 2022 and will be prorated for 2022 . Management employees shall earn 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 a department head or management 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 3pt of each year. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 8 EXHIBIT "A" 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 designee. Section I Holidays Appointed officials, department heads, and management 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. Birthday • Third Monday in February - Presidents' Day • Last Monday in May - Memorial Day • July 4 - Independence Day • First Monday in September - Labor Day • November 11 - Veteran's Day • Fourth Thursday in November - Thanksgiving Day • Friday after Thanksgiving • December 25 - Christmas • One half day before Christmas • One half day before New Year's Day 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. A holiday shall be defined as eight (8) hours of paid time off for regular full-time employees. When Christmas or New Year's Holiday falls on a Tuesday or Thursday, the City reserves the right to close non-essential City services and offices on Monday or Friday (the day adjacent to the observed holiday). Essential City services are determined at the discretion of the department head. Employees scheduled to work in non-essential functions on the days adjacent to the paid holidays would be required to use appropriate personal leave. The City would notify employees of 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. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 9 EXHIBIT "A" 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 3pt of each year. If an employee terminates for any reason, the employee's final check will be adjusted to reflect the prorated hours calculated on a pay period basis; 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 as defined in Section 2.36.420, Labor Code 233 and/or Assembly Bill 1522. This may be extended to 56 hours if a household family member is hospitalized, and the employee submits written verification of such hospitalization. In conjunction with existing leave benefits, appointed officials, department heads, and management employees with one year of City service who have worked at least 1,250 hours in the previous year may be eligible for up to 12 weeks of Family/Medical Leave within any 12-month period. If eligible for Family/Medical Leave, employees must use all available sick, vacation, compensatory time off, and floating holiday pay prior to receiving unpaid Family/Medical Leave. Further details on Family/Medical Leave are available in the City's Family and Medical Leave Policy. Sick leave may be used to be absent from duty due to the death of a member of the employee 's immediate family as defined in Section 2.36.420 , provided such leave shall not exceed forty working hours for each incident. 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 shall be cause for discharge. Upon retirement the employee may choose: 1) a payout of the employee's accumulated sick leave balance based on years of service according to the following schedule, 2) to convert a portion or all of the employee's sick leave balance to service credit in accordance with CalPERS regulations, or, 3) a combination of these two options. (A) Death - 25% (B) Retirement and actual commencement of PERS benefits: (1) After ten years of continuous employment - 10% (2) After twenty years of continuous employment - 15% DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 10 EXHIBIT "A" Section K 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 law during the first ninety (90) business days of such temporary disability absence. Eligibility for workers' compensation leave requires an accepted workers' compensation claim. If an employee is eligible for Total Temporary Disability benefits after exhausting 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 L Work Out-of-Classification An out-of-class assignment is the full-time performance of all the significant duties of an available, funded position in one classification by an individual in a position of another classification. An employee assigned in writing by management to work out-of-class in a position that is assigned a higher pay range which is vacant pending an examination or is vacant due to an extended sick or disability leave, shall receive no less than five percent (5%), but in no case more than the top salary of the higher range, in addition to their regular base rate commencing on the eleventh consecutive workday of the out-of-class assignment. In order to receive out of class pay, an employee must be working in the out of class assignment and cannot have a leave of absence longer than two (2) consecutive weeks, unless approved otherwise. Section M Temporary Assignment An appointing authority or designee may temporarily assign an employee to a different position for a specific period not to exceed ninety (90) days, after which the employee returns to their regular duties and position from which they were regularly assigned. The temporary assignment may be extended past ninety (90) days if agreed to by the employee in writing. Such action shall have the prior approval of the Human Resources Director or designee. An appointing authority may assign an employee to a different position for a period not to exceed ninety (90) days, provided the employee has received twenty-four (24) hours written notice which includes reasons for the assignment. Employees who are subject to temporary assignment shall be compensated in accordance with Section L. In order to receive out of class pay, an employee must be working in the out of class assignment and cannot have a leave of absence longer than two (2) consecutive weeks , unless approved otherwise . DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 11 EXHIBIT "A" Section N Bilingual Pay Employees certified as bilingual in Spanish through a testing process and certified as being required to regularly 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 f or emergency response during off-duty time. All 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 Employees required to wear a uniform, including the Fire Chief, Deputy Fire Chief, Fire Marshal and Police Chief, shall receive the same uniform allowance as those they directly supervise. For "Classic Members" as defined by PERS, uniform allowance shall be reported to PERS as special compensation. Uniform allowance will not be pro-rated upon separation from employment. Section Q Appointed Officials The benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 12 EXHIBIT "B" Exhibit "B" Equity Adjustments for Unrepresented Management Employee Classifications Job Title Barg. Unit1 Current Grade Future Grade Current Biweekly Max Proposed Biweekly Max Actual % Increase Accountant MME 305 300 $ 3,302 $ 3,712 12.4% Accounting Manager MME 347 340 $ 4 ,972 $ 5,485 10.3% Active Transportation Manager MME 325 318 $ 4,013 $ 4,424 10.2% Administrative Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Assistant City Attorney I MME 353 346 $ 5,290 $ 5,815 9.9% Assistant City Attorney 11 MME 253 360 $ 6,083 $ 6,691 10.0% Assistant City Manager DPH 282 225 $ 8,084 $ 9,135 13.0% Assistant to The City Manager MME 335 328 $ 4,424 $ 4 ,877 10.2% Building Permit Services Supervisor MME 320 313 $ 3,821 $ 4,213 10.3% Business Manager MME 330 323 $ 4,213 $ 4,645 10.3% Business Services and Administrative Manager MME 347 340 $ 4,972 $ 5,485 10.3% Capital Improvement Plan Process Improvement Manager MME-C 244 353 $ 5,660 $ 6,226 10.0% City Attorney APO 210 200 $ 8,941 $ 10,103 13.0% City Biologist MME 325 318 $ 4,013 $ 4,424 10.2% City Clerk MME 340 333 $ 4,645 $ 5, 121 10.2% City Manager APO 220 206 $ 9,450 $ 10,679 13.0% Code Enforcement Supervisor MME 320 313 $ 3,821 $ 4,213 10.3% Construction Engineering Manager MME 340 333 $ 4 ,645 $ 5, 121 10.2% Data Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Deputy Building Official MME 347 340 $ 4 ,972 $ 5,485 10.3% Deputy City Manager DPH 267 210 $ 7,028 $ 7,942 13.0% Deputy Director of Community Development/City Planner MME 244 353 $ 5,660 $ 6,226 10.0% I MME : Man age me nt, MME-C: M anage ment C ontract, DPH: De pa rtm en t Heads, APO: Appointed O ffic ials DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 13 EXHIBIT "B" Job Title Barg. Current Grade Future Current Proposed Actual % Unit1 Grade Biweekly Max Biweekly Max Increase Deputy Director of Public Works/City Engineer MME 249 358 $ 5,944 $ 6,538 10.0% Deputy Director of Public Works/Maintenance Operations MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Engineering And Planning MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Wastewater MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Water MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Fire Chief MME 257 369 $ 6,405 $ 7,302 14.0% Director of Community Development DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Finance DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Human Resources DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Parks And Recreation DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Public Works DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Utilities DPH 267 210 $ 7,028 $ 7,942 13.0% Diversity Equity and Inclusion Manager MME 347 340 $ 4 ,972 $ 5,485 10.3% Economic Development Manager MME 340 333 $ 4,645 $ 5, 121 10.2% Environmental Programs Manager MME 325 323 $ 4,013 $ 4 ,645 15.7% Facilities Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Financial Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Fire Chief DPH 272 216 $ 7,361 $ 8,392 14.0% Fire Marshal Chief Building Official MME 353 346 $ 5,290 $ 5,815 9.9% Fleet Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Homelessness Response Manager MME-C 325 318 $ 4,013 $ 4,424 10.2% Housing Policy and Programs Manager MME 330 323 $ 4,213 $ 4,645 10.3% Human Resources Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Human Resources Manager MME 347 340 $ 4 ,972 $ 5,485 10.3% Information Services Supervisor MME 325 326 $ 4,013 $ 4 ,784 19.2% Information Technology Manager MME 353 354 $ 5,290 $ 6,287 18.8% DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 14 EXHIBIT "B" Job Title Barg. Current Grade Future Current Proposed Actual % Unit1 Grade Biweekly Max Biweekly Max Increase Laboratory Manager MME 330 323 $ 4,213 $ 4,645 10.3% Legal Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Neighborhood Outreach Manager MME 320 313 $ 3,821 $ 4,213 10.3% Network Services Supervisor MME 330 331 $ 4 ,213 $ 5,024 19.2% Parking Program Manager MME 330 323 $ 4,213 $ 4 ,645 10.3% Parking Services Supervisor MME 305 300 $ 3,302 $ 3,712 12.4% Parks Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Police Chief DPH 279 230 $ 8,393 $ 9,568 14.0% Principal Budget Analyst MME 330 323 $ 4,213 $ 4,645 10.3% Public Communications Manager MME 325 318 $ 4,013 $ 4,424 10.2% Recreation Manager MME 320 313 $ 3,821 $ 4 ,213 10.3% Recreation Supervisor MME 305 300 $ 3,302 $ 3,712 12.4% Safety and Technical Training Engineer MME 320 313 $ 3,821 $ 4 ,213 10.3% Senior Accountant MME 315 310 $ 3,639 $ 4,093 12.5% Senior Administrative Analyst MME 315 310 $ 3,639 $ 4 ,093 12.5% Senior Civil Engineer MME 330 323 $ 4,213 $ 4,645 10.3% Senior Financial Analyst MME 315 310 $ 3,639 $ 4 ,093 12.5% Senior Human Resources Analyst MME 315 310 $ 3,639 $ 4,093 12.5% Senior Legal Analyst MME 315 310 $ 3,639 $ 4 ,093 12.5% Senior Planner MME 330 323 $ 4,213 $ 4,645 10.3% Special Projects Manager MME-C 325 318 $ 4,013 $ 4,424 10.2% Streets Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Supervising Building Inspector MME 320 313 $ 3,821 $ 4,213 10.3% Supervising Civil Engineer MME 340 333 $ 4 ,645 $ 5, 121 10.2% Supervising Parking Enforcement Officer MME 305 300 $ 3,302 $ 3,712 12.4% Sustainability and Natural Resources Analyst MME 305 300 $ 3,302 $ 3,712 12.4% DocuSign Envelope ID: 5316051A -OD2C-4789-80AE -E4F4EA 3 B51 E3 Page 15 EXHIBIT "B" Job Title Barg. Current Grade Future Current Proposed Actual % Increase Unit1 Grade Biweekly Max Biweekly Max Sustainability and Natural Resources Official MME 347 340 $ 4,972 $ 5,485 10.3% Sustainability Manager MME 325 318 $ 4,013 $ 4,424 10.2% Technology Project Manager MME 325 326 $ 4,013 $ 4,784 19.2% Tourism Manager MME 320 313 $ 3,821 $ 4,213 10.3% Transit Manager MME 330 323 $ 4,213 $ 4,645 10.3% Transportation Manager MME 340 333 $ 4 ,645 $ 5, 121 10.2% Urban Forest Supervisor/City Arborist MME 315 300 $ 3,639 $ 3,712 2.0% Utilities Engineer MME 330 323 $ 4,213 $ 4,645 10.3% Utilities Special Projects Manager MME 330 323 $ 4,213 $ 4,645 10.3% Wastewater Collection System Supervisor MME 325 323 $ 4,013 $ 4,645 15.7% Water Distribution Supervisor MME 325 323 $ 4,013 $ 4 ,645 15.7% Water Resource Program Manager MME 325 323 $ 4 ,013 $ 4,645 15.7% Water Resource Recovery Facility Plant Supervisor MME 335 333 $ 4,424 $ 5,121 15.8% Water Treatment Plant Supervisor MME 335 333 $ 4,424 $ 5, 121 15.8% Whale Rock Reservoir Supervisor MME 325 323 $ 4,013 $ 4 ,645 15.7% Term of Agreement: April 19, 2022 to June 30, 2025 Unrepresented Management Compensation Appointed Officials, Department Heads, and Management Employees Unrepresented Management Resolution Exhibit A & B Table of Contents Exhibit A Sections Section A Medical, Dental, Vision .................................................................................. 1 Section B Health Flex Allowance ................................................................................... 2 Section C Life and Disability Insurance .......................................................................... 3 Section D Retirement ..................................................................................................... 4 Section E Supplemental Retirement .............................................................................. 5 Section F Pay for Performance ...................................................................................... 6 Section G Vacation ........................................................................................................ 6 Section H Administrative Leave ..................................................................................... 7 Section I Holidays ......................................................................................................... 8 Section J Sick Leave ..................................................................................................... 9 Section K Workers’ Compensation Leave.................................................................... 10 Section L Work Out-of-Classification ........................................................................... 10 Section M Temporary Assignment ............................................................................... 10 Section N Bilingual Pay ................................................................................................ 11 Section O Vehicle Assignment ..................................................................................... 11 Section P Uniform Allowance ....................................................................................... 11 Section Q Appointed Officials ....................................................................................... 11 Exhibit “B” Equity Adjustments for Unrepresented Management Employee Classifications .............................................................................................................. 12 DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 1 Section A 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. PERS Health Benefit Program The City has elected to participate in the California Public Employees’ Retirement System (CalPERS) Health Benefit Program. The City shall contribute an equal amount towards the cost of medical coverage under the Public Employee ’s Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City’s contribution toward coverage under PEMHCA shall be the statutory minimum contribution amount established by CalPERS on an annual basis. The City's contribution w ill come out of that amount the City currently contributes to employees as part of the City’s Section 125 Plan “Cafeteria Plan”. The cost of the City's participation in CalPERS will not require the City to expend additional funds toward health insurance. In summary, this cost and any increases will be borne by the employees. Health Insurance Benefits for Domestic Partners The City has adopted a resolution electing to provide health insurance benefits to domestic partners (Section 22873 of the PEMHCA). Conditional Opt Out In order to receive the conditional, opt-out incentive, employees will be required to complete an affidavit and provide proof of other minimum essential coverage for themselves and their qualified dependents (tax family) upon initial enrollment and annually thereafter. Employees are required to certify that they are not enrolled in an individual plan or in a medical plan offered under a federal marketplace or a state exchange plan. The monthly conditional opt-out incentives are: Opt Out $200 “Legacy” Opt Out $790 (hired before September 1, 2008) The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The conditional opt-out payment shall no longer be payable if the employee and family members cease to be enrolled in other minimum essential coverage. Employees on an unpaid leave of absence, will not be eligible to receive the conditional opt out payment. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 2 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 co sts for the Public Employee's 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 eye premium by payroll deductions on a pre - tax basis through the City’s Cafeteria Plan. Section B Health Flex Allowance Employees electing medical coverage in the City’s plans shall receive a health flex allowance, as defined by the Affordable Care Act (ACA) and shall purchase such coverage through the City’s Cafeteria Plan. If the health flex allowance is less than the cost of the medical plan, the employee shall have the opportunity to pay the difference between the health flex allowance and the premium cost on a pre -tax basis through the City’s Cafeteria Plan. In order to be eligible for the health flex allowance in a p articular pay period, an employee will need to get paid for more than half of their regularly scheduled hours, unless the employee is on a protected leave . If the premium cost for medical coverage is less than the health flex allowance, the employee shall not receive any unused health flex in the form of cash or purchase additional benefits under the Cafeteria Plan. The monthly health flex allowance amount for regular, full-time employees is outlined below. Less than full-time employees shall receive a prorated share of the City’s contribution. Level of Coverage 2022 Monthly Rate Employee Only $600 Employee Only “Legacy” $790 Employee Plus One $1,187 Family $1,607 Employees hired prior to September 1, 2008 that elect employee only medical coverage will receive the health flex allowance listed above for employee only “legacy” coverage. As of January 1, 2015, if an employee that is receiving Employee Only or Opt Out “legacy” coverage changes their level of covera ge, 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 allowance, the employee shall no longer receive any unused health flex in the form of cash. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 3 Effective for the 2023, 2024, and 2025 premiums, the City’s total health flex allowance for group medical coverage shall be modified by an amount equal to one-half of the average percentage increase for family coverage in the PERS health plans available in San Luis Obispo County. 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 contribution to the health flex allowance for two (2) pay periods in the event that an employee has exhausted all paid time off or leave approved under the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), whichever is sooner, due to an employee's catastrophic illness. That is, the employee shall receive regular City health flex allowance for the first two (2) pay periods following the pay period in which the employee’s accrued leave balances reach zero (0) or FMLA/CFRA benefits have been exhausted. Section C 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 $11,250 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. Note: The City is researching the option of enrolling in State Disability Insurance. 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. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 4 Section D Retirement A. PERS Contracts 1. “Classic Members First Tier” non-sworn and sworn employees hired before December 6, 2012. The City agrees to provide the Public Employees' Retirement System’s (PERS) 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 r etirement credit, 1959 Survivor’s Benefit- Level Four, one-year final compensation, Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit. 2. “Classic Members Second Tier” non-sworn and sworn employees hired on or after December 6, 2012. The City agrees to provide the PERS 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, pre sently seven percent (7%). For sworn “Classic Members” hired on or after December 6, 2012, the City will provide the PERS 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. 3. “New Members Third Tier” non-sworn and sworn employees hired after January 1, 2013. PERS determines who are “New Members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA). The City will provide the PERS 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. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 5 B. Member Contributions 1. “Classic Members First and Second Tier” Effective the first pay period in January 2012, employees began paying the full member contribution required under the plan for first and second tier sworn (9%) and non-sworn (8% and 7% respectively) employees and the City discontinued their payment of the member contribution. For purposes of this Section, employee contributions are based on salary and special compensation as defined by PERS. Effective the first full pay period in July 2019, all non -sworn and sworn employees shall contribute 1.5% in addition to the employee contribution defined in the paragraph above. Effective the first full pay period in July 2020, all non-sworn and sworn employees’ additional contribution shall increase to 3%, in addition to the employee contribution defin ed in the paragraph above. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). 2. “New Members Third Tier” Effective on their date of hire, new members will pay 50% of the normal cost, as determined by PERS. Effective the first full pay period in July 2019, all non -sworn and sworn new members shall contribute 1.5% in addition to the employee paying 50% of the normal cost. Effective the first full pay period in July 2020, all non -sworn and sworn new members contribution shall increase to 3%, in addition to the employee paying 50% of the normal cost. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). Section E Supplemental Retirement The City shall contribute 1% of salary for department heads to a defined contribution supplemental retirement plan established in accordance with sec tions 401 (a) and 501 (a) of the Internal Revenue Code of 1986 and California Government Code sections 53215-53224. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 6 Section F 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 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 th e sixth calendar month of service from the benefit date or earlier with department head or designee authorization. Each employee 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 0 to 4 years 12 days 96 hours 5 to 9 years 15 days 120 hours 10 to 19 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 0 to 9 years 15 days 120 hours 10 to 19 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 line-item position. Effective as soon as administratively possible following Council adoption, employees will be eligible for a year-for-year prospective accelerated vacation accrual based on prior public sector 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. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 7 Vacation leave shall be accrued as earned biweekly provided that not more than twice the annual rate may be carried over to a new calendar year. Management employees vacation time shall not exceed twice the annual rate. If an employee reaches the cap 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. Appointed officials, department heads, and management employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave. Payment for unused vacation leave is subject to the availability of budgeted funds. To request payment for unused vacation leave, employees must submit an irrevocable election form to Payroll in December of each year, prior to the pay period that includes January 1 of the year the cash out is to be paid, to receive payment for accrued vacation effective on the pay period that includes January 1st of the following calendar year, subject to IRS regulations. Late irrevocable election forms will not be accepted, nor can they be changed after the deadline. The remaining unused leave shall remain in the employee’s vacation accrual bank. The hours which are paid out are hours which will be accrued in following year. Section H Administrative Leave Appointed officials and department heads shall earn 80 hours of administrative leave the pay period that January 1st falls into. Deputy Directors and other management positions required to regularly work night meetings shall earn an additional 64 hours of administrative leave the pay period that January 1st falls into. This additional band of administrative leave will be effective the pay period starting on June 23, 2022 and will be prorated for 2022. Management employees shall earn 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 a department head or management 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. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 8 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 designee. Section I Holidays Appointed officials, department heads, and management 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. Birthday • Third Monday in February – Presidents’ Day • Last Monday in May – Memorial Day • July 4 – Independence Day • First Monday in September – Labor Day • November 11 – Veteran’s Day • Fourth Thursday in November – Thanksgiving Day • Friday after Thanksgiving • December 25 – Christmas • One half day before Christmas • One half day before New Year’s Day 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. A holiday shall be defined as eight (8) hours of paid time off for regular full-time employees. When Christmas or New Year’s Holiday falls on a Tuesday or Thursday, the City reserves the right to close non-essential City services and offices on Monday or Friday (the day adjacent to the observed holiday). Essential City services are determined at the discretion of the department head. Employees scheduled to work in non-essential functions on the days adjacent to the paid holidays would be required to use appropriate personal leave. The City would notify employees of 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. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 9 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 thr ough December 31st of each year. If an employee terminates for any reason, the employee’s final check will be adjusted to reflect the prorated hours calculated on a pay period basis; 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 as defined in Section 2.36.420, Labor Code 233 and/or Assembly Bill 1522. This may be extended to 56 hours if a household family member is hospitalized, and the employee submits written verification of such hospitalization. In conjunction with existing leave benefits, appointed officials, department heads, and management employees with one year of City service who have worked at least 1,250 hours in the previous year may be eligible for up to 12 weeks of Family/Medical Leave within any 12-month period. If eligible for Family/Medical Leave, employees must use all available sick, vacation, compensatory time off, and floating holiday pay prior to receiving unpaid Family/Medical Leave. Further details on Family/Medical Leave are available in the City’s Family and Medical Leave Policy. Sick leave may be used to be absent from duty due to the death of a member of the employee’s immediate family as defined in Section 2.36.420, provided such leave shall not exceed forty working hours for each incident. 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 shall be cause for discharge. Upon retirement the employee may choose: 1) a payout of the employee’s accumulated sick leave balance based on years of service according to the following schedule, 2) to convert a portion or all of the employee’s sick leave balance to service credit in accordance with CalPERS regulations, or, 3) a combination of these two options. (A) Death – 25% (B) Retirement and actual commencement of PERS benefits: (1) After ten years of continuous employment – 10% (2) After twenty years of continuous employment – 15% DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 10 Section K 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 law during the first ninety (90) busines s days of such temporary disability absence. Eligibility for workers’ compensation leave requires an accepted workers’ compensation claim. If an employee is eligible for Total Temporary Disability benefits after exhausting 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 L Work Out-of-Classification An out-of-class assignment is the full-time performance of all the significant duties of an available, funded position in one classification by an ind ividual in a position of another classification. An employee assigned in writing by management to work out -of-class in a position that is assigned a higher pay range which is vacant pending an examination or is vacant due to an extended sick or disability leave, shall receive no less than five percent (5%), but in no case more than the top salary of the higher range, in addition to their regular base rate commencing on the eleventh consecutive workday of the out -of-class assignment. In order to receive out of class pay, an employee must be working in the out of class assignment and cannot have a leave of absence longer than two (2) consecutive weeks, unless approved otherwise. Section M Temporary Assignment An appointing authority or designee may temporari ly assign an employee to a different position for a specific period not to exceed ninety (90) days, after which the employee returns to their regular duties and position from which they were regularly assigned. The temporary assignment may be extended past ninety (90) days if agreed to by the employee in writing. Such action shall have the prior approval of the Human Resources Director or designee. An appointing authority may assign an employee to a different position for a period not to exceed ninety (90) days, provided the employee has received twenty-four (24) hours written notice which includes reasons for the assignment. Employees who are subject to temporary assignment shall be compensated in accordance with Section L. In order to receive out of class pay, an employee must be working in the out of class assignment and cannot have a leave of absence longer than two (2) consecutive weeks, unless approved otherwise. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “A” Page 11 Section N Bilingual Pay Employees certified as bilingual in Spanish through a testing process and certified as being required to regularly 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. All 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 Employees required to wear a uniform, including the Fire Chief, Deputy Fire Chief, Fire Marshal and Police Chief, shall receive the same uniform allowance as those they directly supervise. For “Classic Members” as defined by PERS, uniform allowance shall be reported to PERS as special compensation. Uniform allowance will not be pro-rated upon separation from employment. Section Q Appointed Officials The benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “B” Page 12 Exhibit “B” Equity Adjustments for Unrepresented Management Employee Classifications Job Title Barg. Unit1 Current Grade Future Grade Current Biweekly Max Proposed Biweekly Max Actual % Increase Accountant MME 305 300 $ 3,302 $ 3,712 12.4% Accounting Manager MME 347 340 $ 4,972 $ 5,485 10.3% Active Transportation Manager MME 325 318 $ 4,013 $ 4,424 10.2% Administrative Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Assistant City Attorney I MME 353 346 $ 5,290 $ 5,815 9.9% Assistant City Attorney II MME 253 360 $ 6,083 $ 6,691 10.0% Assistant City Manager DPH 282 225 $ 8,084 $ 9,135 13.0% Assistant to The City Manager MME 335 328 $ 4,424 $ 4,877 10.2% Building Permit Services Supervisor MME 320 313 $ 3,821 $ 4,213 10.3% Business Manager MME 330 323 $ 4,213 $ 4,645 10.3% Business Services and Administrative Manager MME 347 340 $ 4,972 $ 5,485 10.3% Capital Improvement Plan Process Improvement Manager MME-C 244 353 $ 5,660 $ 6,226 10.0% City Attorney APO 210 200 $ 8,941 $ 10,103 13.0% City Biologist MME 325 318 $ 4,013 $ 4,424 10.2% City Clerk MME 340 333 $ 4,645 $ 5,121 10.2% City Manager APO 220 206 $ 9,450 $ 10,679 13.0% Code Enforcement Supervisor MME 320 313 $ 3,821 $ 4,213 10.3% Construction Engineering Manager MME 340 333 $ 4,645 $ 5,121 10.2% Data Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Deputy Building Official MME 347 340 $ 4,972 $ 5,485 10.3% Deputy City Manager DPH 267 210 $ 7,028 $ 7,942 13.0% Deputy Director of Community Development/City Planner MME 244 353 $ 5,660 $ 6,226 10.0% 1 MME: Management, MME-C: Management Contract, DPH: Department Heads, APO: Appointed Officials DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “B” Page 13 Job Title Barg. Unit1 Current Grade Future Grade Current Biweekly Max Proposed Biweekly Max Actual % Increase Deputy Director of Public Works/City Engineer MME 249 358 $ 5,944 $ 6,538 10.0% Deputy Director of Public Works/Maintenance Operations MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Engineering And Planning MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Wastewater MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Director of Utilities - Water MME 244 353 $ 5,660 $ 6,226 10.0% Deputy Fire Chief MME 257 369 $ 6,405 $ 7,302 14.0% Director of Community Development DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Finance DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Human Resources DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Parks And Recreation DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Public Works DPH 267 210 $ 7,028 $ 7,942 13.0% Director of Utilities DPH 267 210 $ 7,028 $ 7,942 13.0% Diversity Equity and Inclusion Manager MME 347 340 $ 4,972 $ 5,485 10.3% Economic Development Manager MME 340 333 $ 4,645 $ 5,121 10.2% Environmental Programs Manager MME 325 323 $ 4,013 $ 4,645 15.7% Facilities Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Financial Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Fire Chief DPH 272 216 $ 7,361 $ 8,392 14.0% Fire Marshal Chief Building Official MME 353 346 $ 5,290 $ 5,815 9.9% Fleet Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Homelessness Response Manager MME-C 325 318 $ 4,013 $ 4,424 10.2% Housing Policy and Programs Manager MME 330 323 $ 4,213 $ 4,645 10.3% Human Resources Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Human Resources Manager MME 347 340 $ 4,972 $ 5,485 10.3% Information Services Supervisor MME 325 326 $ 4,013 $ 4,784 19.2% Information Technology Manager MME 353 354 $ 5,290 $ 6,287 18.8% DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “B” Page 14 Job Title Barg. Unit1 Current Grade Future Grade Current Biweekly Max Proposed Biweekly Max Actual % Increase Laboratory Manager MME 330 323 $ 4,213 $ 4,645 10.3% Legal Analyst MME 305 300 $ 3,302 $ 3,712 12.4% Neighborhood Outreach Manager MME 320 313 $ 3,821 $ 4,213 10.3% Network Services Supervisor MME 330 331 $ 4,213 $ 5,024 19.2% Parking Program Manager MME 330 323 $ 4,213 $ 4,645 10.3% Parking Services Supervisor MME 305 300 $ 3,302 $ 3,712 12.4% Parks Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Police Chief DPH 279 230 $ 8,393 $ 9,568 14.0% Principal Budget Analyst MME 330 323 $ 4,213 $ 4,645 10.3% Public Communications Manager MME 325 318 $ 4,013 $ 4,424 10.2% Recreation Manager MME 320 313 $ 3,821 $ 4,213 10.3% Recreation Supervisor MME 305 300 $ 3,302 $ 3,712 12.4% Safety and Technical Training Engineer MME 320 313 $ 3,821 $ 4,213 10.3% Senior Accountant MME 315 310 $ 3,639 $ 4,093 12.5% Senior Administrative Analyst MME 315 310 $ 3,639 $ 4,093 12.5% Senior Civil Engineer MME 330 323 $ 4,213 $ 4,645 10.3% Senior Financial Analyst MME 315 310 $ 3,639 $ 4,093 12.5% Senior Human Resources Analyst MME 315 310 $ 3,639 $ 4,093 12.5% Senior Legal Analyst MME 315 310 $ 3,639 $ 4,093 12.5% Senior Planner MME 330 323 $ 4,213 $ 4,645 10.3% Special Projects Manager MME-C 325 318 $ 4,013 $ 4,424 10.2% Streets Maintenance Supervisor MME 315 300 $ 3,639 $ 3,712 2.0% Supervising Building Inspector MME 320 313 $ 3,821 $ 4,213 10.3% Supervising Civil Engineer MME 340 333 $ 4,645 $ 5,121 10.2% Supervising Parking Enforcement Officer MME 305 300 $ 3,302 $ 3,712 12.4% Sustainability and Natural Resources Analyst MME 305 300 $ 3,302 $ 3,712 12.4% DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3 EXHIBIT “B” Page 15 Job Title Barg. Unit1 Current Grade Future Grade Current Biweekly Max Proposed Biweekly Max Actual % Increase Sustainability and Natural Resources Official MME 347 340 $ 4,972 $ 5,485 10.3% Sustainability Manager MME 325 318 $ 4,013 $ 4,424 10.2% Technology Project Manager MME 325 326 $ 4,013 $ 4,784 19.2% Tourism Manager MME 320 313 $ 3,821 $ 4,213 10.3% Transit Manager MME 330 323 $ 4,213 $ 4,645 10.3% Transportation Manager MME 340 333 $ 4,645 $ 5,121 10.2% Urban Forest Supervisor/City Arborist MME 315 300 $ 3,639 $ 3,712 2.0% Utilities Engineer MME 330 323 $ 4,213 $ 4,645 10.3% Utilities Special Projects Manager MME 330 323 $ 4,213 $ 4,645 10.3% Wastewater Collection System Supervisor MME 325 323 $ 4,013 $ 4,645 15.7% Water Distribution Supervisor MME 325 323 $ 4,013 $ 4,645 15.7% Water Resource Program Manager MME 325 323 $ 4,013 $ 4,645 15.7% Water Resource Recovery Facility Plant Supervisor MME 335 333 $ 4,424 $ 5,121 15.8% Water Treatment Plant Supervisor MME 335 333 $ 4,424 $ 5,121 15.8% Whale Rock Reservoir Supervisor MME 325 323 $ 4,013 $ 4,645 15.7% DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3