Loading...
HomeMy WebLinkAbout04-16-2019 Item 06, Amendment to Mgt Compensation resolution for vacation cash out at various times of year Department Name: Human Resources Cost Center: 2007 For Agenda of: April 16, 2019 Placement: Consent FROM: Monica Irons, Director of Human Resources PREPARED BY: Nickole Sutter, Human Resources Analyst II SUBJECT: AMENDMENT TO THE MANAGEMENT COMPENSATION RESOLUTION ALLOWING VACATION CASH OUT AT VARIOUS TIMES DURING THE YEAR RECOMMENDATION 1. Adopt a resolution (Attachment A) amending the three-year (July 1, 2018 through June 30, 2021) Management Compensation Resolution (Attachment B) to provide the ability to cash- out vacation up to the current limit at multiple times during the year and eliminate language that provides accrual above the cap in limited circumstances. 2. Authorize the one-time cash out of up to 40 hours of vacation effective on t he April 25, 2019 pay check for employees above vacation cap due to system limitations and current extension language. DISCUSSION Background The unrepresented management group includes 89 professional-level employees, exempt from the overtime provisio ns of the Federal Labor Standards Act (FLSA), including department heads, first -line supervisors, program managers, senior planner and engineers, and analysts. The unrepresented management employees’ compensation and benefits are set by resolution most recently adopted by Council on July 17, 2018 with a term of July 1, 2018 to June 30, 2021. Since the adoption of the Management Compensation Resolution, staff has been working on implementing a new Human Capital Management, Payroll, and Time system. The system is more sophisticated than the current system and can cap vacation accrual when an employee reaches the maximum vacation balance (twice the annual accrual) at any pay period during the year. Historically, vacation caps were administered during the final pay period of the calendar year. Council authorized a successor Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo City Employees’ Association (SLOCEA) on February 19, 2019 that included the following provision: Packet Pg. 33 Item 6 “Vacation: Effective April 2019, when the City goes live with the new Human Capital Management, Payroll and Time system, vacation accrual will be capped at twice the annual accrual rate at any point during the year as the current Memorandum of Agreement intended but is not the practice (accrual is stopped only at year end). SLOCEA employees who reach the cap will be able to request a cash out of up to 40 hours of accrued vacation at any point during the year (currently only allowed in December of each year).” SLOCEA employees frequently promote into management positions and, as such, it is reasonable to keep parity in the fringe benefits provided in the two employee groups. Further, modifying the management compensation resolution to allow employees who reac h the maximum vacation balance to cash out vacation earlier than December of each year, without increasing the annual cash out limit, has no financial impact. Historically, management compensation resolutions have been short -term, and this modification co uld be addressed in the next review. However, the current management compensation resolution is in effect through June 30, 2021 and therefore, an amendment is recommended. Current ly a management employee who reaches the maximum allowed vacation balance, may request a six-month extension to use accrued vacation and continue vacation accrual. This provision, along with staff transitions in payroll, and current payroll system limitations has resulted in approximately 10 employees with vacation balances above the intended vacation cap. Implementation of our new software system, Oracle Cloud, will allow the City to have increased ability to track leaves, implement caps, and better administer policies. Further, u nder California law, earned vacation time is considered wages, and vacation time is earned, or vests, as work is performed. Accrued vacation cannot be forfeited and must be cashed out upon termination of employment. Employees that are above the vacation cap at the time of Council adoption (Pay Pe riod 4/4/19- 4/17/19) of the amended Management Compensation Resolution, who have not been able to take vacation due to the press of City business, will be eligible to request a cash out up to a maximum of 40 hours or the amount over the cap, whichever is less. Providing a one-time cash out of up to 40 hours, and implementing an every-pay-period cap, will eliminate the risk of this situation occurring again and acknowledges the employees’ commitment to the City. Previous Council or Advisory Body Action Council adopted the Management Compensation Resolution on July 17, 2018 and the Memorandum of Agreement with SLOCEA on February 19, 2019. Policy Context The recommendations provided in this report are consistent with Council adopted Compensation Philoso phy, Labor Relations Objectives, and agreements with other employee groups. Packet Pg. 34 Item 6 Public Engagement This item is on the agenda for the April 16, 2019 City Council meeting and will follow all required postings and notification. The public may comment on this item at or before the meeting. CONCURRENCE The recommendation was discussed with the leadership team who agreed that having parity with SLOCEA and providing flexibility to management employees to more effectively manage their vacation was appropriate, especially given that modification does not increase ongoing costs. 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 Guidelines Sec. 15278. FISCAL IMPACT Budgeted: Yes Budget Year: 2019 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $20,000 State Federal Fees Other: Total $20,000 The one-time cost is estimated at $20,000 and will be paid out of the non-departmental contingency account if the affected departments are not able to absorb the cost in their respective budgets. ALTERNATIVES Do not approve recommended changes to the resolution. This alternative is not recommended as the resolution is in line with other employee agreements and has no additional implications. It does, however, provide flexibility to employees who were not aware of this change and have not been able to take vacation time. Attachments: a - Management Resolution 2019 b - Exhibit A to Management Resolution2019 (legislative draft) Packet Pg. 35 Item 6 ATTACHMENT A R _________ RESOLUTION NO. (2019 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 recognize the City’s commitment to fiscal responsibility in alignment with the City’s Fiscal Health Response Plan; and WHEREAS, the unrepresented management employees have demonstrated sensitivity to the fiscal challenges facing the City and agree to a shared approach, including a modest salary increase partially offset by employees’ increased contributions towards retirement costs; and WHEREAS, the City Council is committed to providing competitive compensation as provided in the City’s adopted Compensation Philosophy; NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo hereby revises unrepresented management compensation as follows: SECTION 1. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit A, including eliminating vacation accrual extensions and providing vacation cash out during the year up to the specified maximum cash out provision. SECTION 2. The City shall provide a one-time cash out of up to 40 hours to those employees with accrued vacation above the cap as of April 17, 2019, prior to implementing the vacation cap specified in Exhibit A. SECTION 3. The Director of Finance shall adjust the appropriate accounts to reflect the compensation changes. Packet Pg. 36 Item 6 Resolution No. _____ (2019 Series) Page 2 R _________ SECTION 4. This resolution shall be in effect from April 16, 2019 through June 30, 2021. Upon motion of ___________________________, seconded by _______________________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of April 2019. ____________________________________ Mayor Heidi Harmon 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, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 37 Item 6 EXHIBIT “A” Table of Contents Section A Medical, Dental, Vision .................................................................................. 1 Section B Health Flex Allowance ................................................................................... 2 Section C Life and Disability Insurance .......................................................................... 3 Section D Retirement ..................................................................................................... 3 Section E Supplemental Retirement .............................................................................. 5 Section F Pay for Performance ...................................................................................... 5 Section G Vacation ........................................................................................................ 6 Section H Administrative Leave ..................................................................................... 7 Section I Holidays ......................................................................................................... 7 Section J Sick Leave ..................................................................................................... 8 Section K Workers’ Compensation Leave...................................................................... 9 Section L Work Out-of-Classification ............................................................................. 9 Section M Vehicle Assignment ................................................................................... 109 Section N Uniform Allowance ....................................................................................... 10 Section O Appointed Officials ....................................................................................... 10 Packet Pg. 38 Item 6 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 and 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 PERS 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 Cafeteria Plan. The cost of the City's participation in PERS 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 Employees who at initial enrollment or during the annual open enrollment period, complete an affidavit and provide proof of other minimum essential coverage for themselves and their qualified dependents (tax family) that is not a qualified health plan coverage under an exchange/marketplace or an individual plan, will be allowed to waive medical coverage for themselves and their qualified dependents (tax family). The monthly conditional opt-out incentives are: Opt Out $200 “Grandfathered” 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 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. Packet Pg. 39 Item 6 EXHIBIT “A” Page 2 Dental and Vision Insurance/Dependent Coverage Employee participation in the City's dent al 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 t he 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 sh all 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. 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 current monthly health flex allowance amount for regular, full -time employees is outlined below: Level of Coverage 2018 Monthly Health Flex Allowance Rates Employee Only $539 Employee Only “Grandfathered” $790 Employee Plus One $1,066 Family $1,442 Employees hired prior to September 1, 2008 that are grandfathered in and elect employee only medical coverage will receive the health flex allowance listed above for employee only “grandfathered” coverage. As of January 1, 2015, if an employee that is rec eiving Employee Only or Opt Out “Grandfathered” coverage changes their level of coverage, they will be eligible to return to the grandfathered 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. Effective December 2018 (for the January 2019 premium), December 2019 (for the January 2020 premium), and December 2020 (for the January 2021 premium), 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%, +15%, and +20% respectively, the City’s contribution would be increased by 7.5% (10% + 15% + 20% ÷ 3 = 15% x 1/2). Less than full-time employees shall receive a prorated share of the City’s contribution. Packet Pg. 40 Item 6 EXHIBIT “A” Page 3 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 and leave approved under the federal Family and Medical Leave Act (FMLA) and the Cali fornia Family Rights Act (CFRA) 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) and FMLA/CFRA benefits have been exhausted. Section C Life and Disability Insurance The City shall provide the following special insurance benefits in recognition of management responsibilities: 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. 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 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 Packet Pg. 41 Item 6 EXHIBIT “A” Page 4 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. 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 para graph 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. Packet Pg. 42 Item 6 EXHIBIT “A” Page 5 Effective the first full pay period in July 2019, all non -sworn and sworn new members shall contribute 1.5% in addition to the emplo yee 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). C. Contract Amendment with PERS The City will submit a contract amendment to PERS requesting the employee contributions effective July 2019 and 2020 (1.5% and 3% respectively) be considered contributions to the employees account. PERS currently requires a secret ballot election among the employees affected to change the employees’ rate of contribution. The contract cannot be amended if a majority of the affected members vote to disapprove the proposed plan. In the event a secret ballot is required by State Law and the unrepresented management group does not vote to approve the contract amendment, the additional contributions will still be required in accordance to the provisions of §20516(f). In this case the additional contributions would not be credited to the employee’s PERS account as a normal contribution. Section E Supplemental Retirement The City shall contribute 1% of salary for management employees and 2% 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. Effective the first full pay period in August 2018, the City shall discontinue a 1% contribution of salary for management employees and the City contribution will decrease from 2% to 1% for department heads to a defined contribution supplemental retirement plan. 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 employee moves through his/her 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. Packet Pg. 43 Item 6 EXHIBIT “A” Page 6 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 since the benefit date or earlier with department head or designee authorization. Each employee shall accrue vacation leave with the pay at the following rates: Management Employees Years of Service Annual Vacation Accrual Days* Annual Vacation Accrual Hours 0 to 5 years 12 days 96 hours 5 to 10 years 15 days 120 hours 10 to 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 0 to 10 years 15 days 120 hours 10 to 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 line-item position. Vacation leave shall be accrued as earned semi -monthly provided that not more than twice the annual rate (not including floating holiday leave) may be carried over to a new calendar year. Effective the first full pay period in April 2019, 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. However, if the City Manager determines that a department head has been unable t o take vacation due to the press of City business, the City Manager may approve up to a six - month extension of maximum vacation accrual. The City Manager may, within two years of appointing a department head, increase the rate of vacation accrual to a max imum of 120 hours per year. 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. A department head may not deny a management employee’s vacation request if such denial will result in the loss of vacation accrual by the employee, except that, a department head may approve up to a six-month extension of maximum vacation accrual. However, in no event shall more than one such extension be granted in any calendar year. Packet Pg. 44 Item 6 EXHIBIT “A” Page 7 Appointed officials, department hHeads and management employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave provided that an employee’s overall performance and attendance practices are satisfactory. If an employee reaches the annual accrual cap before December and is eligible for cash out as defined above, the employee will be able to request vacation payment one additional time during the 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. Employees must have eighty (80) hours of accrued vacation leave to be eligible for cash out in December. Upon request, vacation sellback payments shall be made by separate check. Payment for unused vacation leave is subject to the availability of budgeted funds . Employees that are above the vacation cap as of Pay Period 4/4/19-4/17/19 because they have not been able to take vacation due to the press of City business, will be eligible to request a cash out equal to the number of hours they are over the vacation cap, up to a maximum of 40 hours. This one-time cash out, paid on the 4/25/19 pay check, will not be considered towards the annual cash out provision provided in the paragraph above. Section H Administrative Leave Appointed officials and department heads shall be granted 80 hours of administrative leave the pay period that January 1st falls into. Management employees shall be granted 48 hours of administrative leave the pay period that January 1st falls into. Administrative leave hours shall be pro-rated on a monthly 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. 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, when specifically authorized by the department head due to extraordinary circumstances, a management employee may receive overtime payment of time and one -half for hours worked above and beyond what would be considered normal work requirements during an emergency event lasting at least eight (8) hours. Section I Holidays Packet Pg. 45 Item 6 EXHIBIT “A” Page 8 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 a t 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. The two (2) floating holidays shall be accrued on a semi -monthly basis and added to the vacation accrual. Effective January 2019, the two floating holidays (16 hours) will be provided in a floating holiday leave bank the pay period that January 1 st falls within rather than being accrued on a semi -monthly basis. 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 tak en through December 31st of each year. If an employee terminates for any reason, having taken off hours in excess of his/her prorated share of the floating holiday, the value of the overage will be deducted from the employee's final paycheck. Section J Sick Leave Packet Pg. 46 Item 6 EXHIBIT “A” Page 9 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 his/her immediate family as defined in Section 2.36.420, Labor Code 233 and/or Assembly Bill 1522. This may be extended to 56 ho urs if a household family member is hospitalized and the employee submits written verification of such hospitalization. In conjunction with existing leave benefits, department head 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 in accordance with the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). In the event an employee is caring for a family member and is covered under FMLA/CFRA, they will be able to use all accrued sick leave to care for a family member. 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 2.3 6.420, 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% 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 his/he r 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 open workers’ compensation claim. 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 Packet Pg. 47 Item 6 EXHIBIT “A” Page 10 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 to p salary of the higher range, in addition to their regular base rate commencing on the eleventh consecutive workday of the out -of-class assignment. Section M Vehicle Assignment For those department heads requiring the use of an automobile on a regular 24 -hour basis to perform their normal duties, the City will, at City option, provide a City vehicle or an appropriate allowance for the employee’s use of a personal automobile. Department heads who are not provided a City vehicle shall receive a car allowan ce 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 N 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. Un iform allowance will not be pro-rated upon separation from employment. Section O Appointed Officials The benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. Packet Pg. 48 Item 6