HomeMy WebLinkAbout12. Mgmt.Reso.07-24-12AGENDA MEMO
TO: Mayor and Members of the City Council
FROM: Office of the City Manager
By: Irma Youssefieh, Human Resources Director
DATE: July 24, 2012
SUBJECT: Benefits Payable to Executive Management, Mid - Management, and
Confidential /Exempt Employees
RECOMMENDATION
That the City Council adopt the attached Resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ESTABLISHING THE
BENEFITS PAYABLE TO EMPLOYEES IN CLASSIFICATIONS DESIGNATED AS EXECUTIVE
MANAGEMENT, MIDDLE MANAGEMENT AND CONFIDENTIAL /EXEMPT; AND REPEALING
PRIOR RESOLUTIONS.
DISCUSSION
The Resolution applies to 22 management employees and 1 confidential /exempt full -time
employee.
The Resolution updates existing provisions that are consistent with recently negotiated
provisions with the Downey City Employees' Association — Miscellaneous Unit that include
employee economic concessions to assist the City in meeting projected fiscal challenges in
Fiscal Years 2012 -2013 and 2013 -2014. These concessions include: benefit reductions in the
City's medical insurance program effective July 1, 2012; a change from a self- funded medical
program to a fully insured program effective October 1, 2012; an employee contribution of 2%
compensation towards employer retirement costs that begins with the pay period that includes
July 1, 2012 and an additional 2% (for a total of 4 %) contribution starting in the pay period that
includes July 1, 2013; and, mandatory non -paid furlough leave for employees in Fiscal Years
2012 -2013 and 2013 -2014 in the amount up to but not to exceed 72 hours per year.
Fiscal Impact: Based on current information available and dependent upon total claims
incurred by the City's self- funded medical plan at termination, City -wide medical savings are
projected to be approximately $1.5M in Fiscal Year 2012 -2013. Additional savings in
personnel costs in Fiscal Years 2012 -2013 and 2013 -2014 amount to approximately $138,616
per year.
S: /Agenda Memos. 00. 201 - 13/07- 24 -12/ Benefits. Exec.MidMgmt.Conf. Reso.doc
CITY OF DOWNEY, CALIFORNIA
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
ESTABLISHING THE BENEFITS PAYABLE TO EMPLOYEES IN CLASSIFICATIONS
DESIGNATED AS EXECUTIVE MANAGEMENT, MIDDLE MANAGEMENT AND
CONFIDENTIAL /EXEMPT; AND REPEALING PRIOR RESOLUTIONS.
WHEREAS, under California State law, Section 2704 of the Downey Municipal Code
and Section 12 of the City of Downey Supplemental Employee Relations Rules and
Regulations, the City Council is vested with the authority to designate classifications as being
Executive Management, Middle Management and Confidential /Exempt; and
WHEREAS, the City Council desires to delineate the benefits payable to employees in
the Executive Management, Middle Management and Confidential /Exempt service of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVE AS FOLLOWS:
SECTION 1. EXECUTIVE MANAGEMENT
A. The following classifications shall be designated as part of the management service
and shall be considered as Executive Management:
Assistant City Manager
Chief of Police
City Attorney
City Clerk
Deputy City Manager
Director of Community Development
Director of Community Services
Director of Development Services
Director of Public Works
Fire Chief
Finance Director
B. Exclusions. Executive Management employees are specifically excluded from
overtime compensation of any type and Education Incentive Pay. Individuals appointed or
promoted into Executive Management classifications after January 24, 1984, are automatically
excluded from eligibility for Merit Longevity Pay.
Executive Management employees have been designated as part of the unclassified service
and are exempt from the provisions of Chapter 7 of the Downey Municipal Code and that certain
document entitled Personnel Management Rules and Regulations with the exception of Part
VIII, Article IX, entitled Attendance and Leaves. As part of the unclassified service, it is
emphasized that Executive Management personnel are specifically excluded from access to the
Grievance Procedures as established in the respective Memoranda of Understanding;
specifically excluded from probationary periods and the ability to attain permanent status; and
specifically excluded from the right of access to the Personnel Advisory Board based on Section
2704 of the Downey Municipal Code.
RESOLUTION NO.
PAGE TWO
SECTION 2. MIDDLE MANAGEMENT
A. The following division manager and supervisory classifications shall be designated as
part of the management service and shall be considered as Middle Management:
City Planner
Assistant Deputy City Manager
Assistant Finance Director
Assistant to the City Manager
Assistant Public Works Director
Building Official
City Engineer
City Librarian
Community Development Manager
Computer System Manager
Data Processing Manager
Deputy Building Official
Deputy Director of Public Works
Dispatch Systems Manager
Economic Development Manager
Emergency Preparedness Coordinator
Executive Director Space Science Learning Center
Finance Manager
Housing Manager
Human Resources Director
Library System Manager
Principal Civil Engineer
Purchasing Manager
Recreation Manager
Senior Civil Engineer
Senior Human Resources Analyst
Senior Management Analyst
Social Services Manager
Superintendent of Physical Services
Superintendent of Water and Sanitation
System /Network Engineer
Theater Manager
B. Exclusions. Middle Management employees are specifically excluded from overtime
compensation of any type with the exception of Dispatch Systems Manager who is eligible to
receive overtime compensation at the discretion of the Fire Chief. The positions of Computer
System Manager and System /Network Engineer are eligible to earn straight compensatory time
for hours worked on special projects as approved by the department head. Individuals
appointed or promoted into Middle Management classifications after January 24, 1984, are
automatically excluded from eligibility for Merit Longevity Pay.
RESOLUTION NO.
PAGE THREE
SECTION 3. CONFIDENTIAL/EXEMPT
A. The following classifications shall be designated as part of the confidential service
and shall be considered as Confidential:
Public Information Coordinator
Chief Deputy City Clerk
Deputy City Clerk
Secretary to the Chief of Police
Secretary to the City Council
Secretary to the City Manager
B. Exclusions. Confidential /Exempt employees may not earn overtime compensation
unless approval for such compensation is granted by the City Manager on a case -by -case basis
Confidential /Exempt employees have been designated as part of the unclassified service
and are exempt from provisions of Chapter 7 of the Downey Municipal Code and that certain
document entitled Personnel Management Rules and Regulations, with the exception of Part
VIII, Article IX, entitled Attendance and Leaves. As part of the unclassified service, it is
emphasized that Confidential /Exempt employees are specifically excluded from access to
Grievance Procedures as established in the respective Memoranda of Understanding;
specifically excluded from probationary periods and the ability to attain permanent status; and
specifically excluded from the right of access to the Personnel Advisory Board based on Section
2704 of the Downey Municipal Code.
SECTION 4. Whenever the masculine gender is used in this Resolution, it shall be
understood to include the feminine gender.
SECTION 5. ATTENDANCE AND LEAVES
Pursuant to Part VIII, Section 14, Article IX, of the Personnel Management Rules and
Regulations, employees in the unclassified service of the City are subject to the provisions of
Article IX of the Personnel Management Rules and Regulations. In addition, Executive
Management, Middle Management, and Confidential /Exempt employees are subject to the
following:
A. Annual Vacation Leave
1. Vacation Accrual
a. Executive Management employees shall accrue one hundred sixty (160) hours
per year.
b. Middle Management employees shall accrue annual vacation leave as follows:
Years of Service Hours per Year
0 -5 120
6 - 10 136
11+ 160
RESOLUTION NO.
PAGE FOUR
c. Confidential /Exempt employees shall accrue annual vacation leave as follows:
2. Vacation Policy
B. Sick Leave
Years of Service Hours per Year
0 -3 80
4 -5 96
6 - 10 120
11 - 15 136
16+ 160
a. Vacation shall be taken at the convenience of the City with the approval of the
department head or City Manager. Such vacation should be taken annually and not
accumulated from year to year. Employees shall be allowed to accumulate up to two (2) years
vacation allowance based on years of service above. As of October 25, 2011, all accumulated
vacation in excess of two (2) years shall be taken at a time mutually agreeable to both the
supervisor and the employee but by no later than December 31, 2013. If an employee is
prohibited by the supervisor from taking his vacation because of manpower shortages or
operational needs, the employee may be paid out at the rate of pay earned at the time the
employee would have taken his vacation. Such pay out requires approval by the City Manager
and is limited to a total of one hundred sixty (160) hours per calendar year. Thereafter, an
employee who has a balance of accumulated vacation that exceeds the two (2) year maximum
shall not receive vacation accrual until the vacation balance falls below the two (2) year
maximum. If at all possible, the supervisor shall accommodate the employees' desire to take
vacation time off.
b. An employee shall be entitled to be paid for unused earned vacation at the
rate of pay in effect at the time of separation from employment.
c. Vacation shall be accrued on a monthly basis by dividing twelve (12) into the
number of eligible vacation hours, as set forth in Section 4(A) above, to which the employee is
eligible to receive based upon the employees' years of service with the City.
1. Sick leave shall be defined as absence from duty because of illness or off the job
injury, or exposure to contagious disease as evidenced by certification from an
accepted medical authority.
2. Sick leave shall be paid to covered employees at the rate of eight (8) hours per
month of service. Sick leave shall not be considered a privilege that an
employee may use at his discretion but shall be allowed only in case of necessity
and actual sickness or disability. Unused sick leave shall accrue without limit on
accumulation.
3. In order to receive compensation while absent on sick leave, the employee shall
notify a designated supervisor within two (2) hours of the time set for beginning
duty, unless notification is physically impractical. For any such absence, the
employee shall file a written statement with the City Manager stating the cause of
the absence. When the absence is for more than one (1) work day, and there is
reasonable cause to indicate abuse of sick leave, the department head
concerned or City Manager may require a physicians' certificate stating the
cause of absence before said leave shall be approved by the City Manager.
RESOLUTION NO.
PAGE FIVE
4. The right to benefits under the sick leave plan shall continue only during the
period that the employee is employed by the City. This plan shall not give any
employee the right to be retained in the service of the City, or any right of claim to
sickness disability benefits after separation from the services of the City.
5. Notwithstanding anything contained in this Section, no employee shall be entitled
to receive any payment or other compensation from the City while absent from
duty by reasons of injuries or disability received as a result of engaging in
employment other than employment by the City, for monetary gain or other
compensation, or by reasons of engaging in business or activity for monetary
gain or other compensation other than business or activity connected with City
employment.
6. At the written request of the appointing authority, the City Manager may require
an employee to submit to an examination by the City's physician; and if the
results of the examination indicate the employee is unable to perform his duties,
or in the performance of his duties, exposes others to infection, the employee
shall be placed on sick leave without privilege of reinstatement until adequate
medical evidence is submitted that the employee is competent to perform his
duties or will not subject others to infection. Any employee so examined shall
have the right to submit the reports of a competent medical authority of his own
selection, and at his own expense, in addition to the report submitted by the
City's physician. In the event of a conflict of opinion and /or recommendation of
the two physicians, a third physician shall be selected by the first two physicians
and the final decision shall be made by the City Manager, who may seek the
advice of the Personnel Advisory Board of the City.
7. Sick Leave Conversion upon Retirement. At retirement, an employee shall
have the value of unused accumulated sick leave up to a maximum number of
hours deposited into the City Retirement Savings Plan to be used for eligible
medical expenditures. The value of accrued sick leave hours shall be calculated
by the rate of pay at retirement.
a. Effective October 25, 2011, the maximum number of unused accumulated
sick leave hours eligible for deposit is one thousand five hundred seventy -five
(1,575) hours.
b. An employee on payroll as of October 25, 2011 who has a balance of unused
accumulated sick leave hours at or above one thousand five hundred
seventy -five hours (1,575) but at or below one thousand nine hundred (1,900)
hours shall have that number of hours recorded as his eligible maximum for
deposit at retirement into the City Retirement Savings Plan.
c. An employee hired on or after October 25, 2011 shall be eligible to deposit
the value of unused accumulated sick leave hours up to a maximum of five
hundred (500) hours.
8. Sick Leave Conversion upon Layoff. In the event of a permanent or indefinite
layoff, an employee with ten (10) years of continuous service with the City shall
be entitled to the sick leave deposit benefit as specified above. If such employee
resigns after receiving official notification of his impending layoff, he shall remain
eligible for the above benefit.
RESOLUTION NO.
PAGE SIX
9. Conversion of Sick Leave to Vacation. Employees who become entitled to
accrue sick leave allowance which has not been used, may convert each two (2)
hours of accumulated sick leave to one (1) additional hour of vacation, after
having accumulated six - hundred forty (640) hours of sick leave, and providing
that not more than forty (40) hours of additional vacation days may be so
converted in any one (1) fiscal year.
C. Emergency Leave
1 Any employee who is absent from work by reason of attendance upon members
of the immediate family, whose incapacitation requires the care of such employee,
or death in the immediate family of the employee, may be allowed emergency
leave with pay not to exceed six (6) work days per incident on the basis of one -
half (1/2) work day for each month of regular employment, that is deducted from
accumulated sick leave, not to exceed twelve (12) work days per year. Immediate
family shall include, and be limited to, mother, father, brother, sister, spouse, child
or grandparents of any eligible employee or of the spouse of the employee of the
City.
2. For absences under this Section exceeding a total of three (3) working days in
any six (6) month period, a physicians' certificate verifying the families'
incapacitation leave basis may be required by the City Manager or department
head.
3. All such claims for emergency leave are subject to verification by the City
Manager.
D. Personal Leave. With approval of the department head or City Manager, twenty -
four (24) hours per year of an employees' sick leave may be used on personal matters which
are of an unseen combination of circumstances which call for immediate action or to add one
additional hour per holiday as covered in Section 4(L). Such matters shall be considered as
those events or occurrences which a reasonable prudent person would not or could not
postpone to a subsequent time. The nature of the matter shall be explained to the immediate
supervisor and shall be granted with his approval. Such personal leave shall not be cumulative
from year to year.
E. Workers' Compensation Leave
1. If an employee is absent from work by reason of an injury or illness covered by
Workers' Compensation, the City shall pay the employee the difference between
the amount granted pursuant to such Workers Compensation' law and the
employees' regular rate of pay during such portion of time as the Council may
determine.
2. An employee who is absent from work by reason of an injury or illness covered by
Workers' Compensation shall be allowed up to one (1) year leave of absence, as
required by his condition, with the City paying the difference between the amount
granted pursuant to Workers' Compensation law and the employee's regular rate
of pay.
RESOLUTION NO.
PAGE SEVEN
F. Employee Disability Leave
1. An employee that has at least one year of continuous service with the City and
who has exhausted all accrued leave (vacation, sick leave, compensatory time)
due to non - industrial illness or injury can be advanced sick leave time at the rate
of seventy -five percent (75 %) of the employee's regular salary according to the
following table:
Maximum Time Allowance (Hours)
Years of Service Total Hours
1 through 5 360
6 through 10 544
Over 10 720
2. An application for disability leave shall be made by the employee to the City
Manager or his designee through the department head, accompanied by medical
certification from a physician verifying the period of medical disability.
3. After the employee returns to work from disability leave, the employee's sick
leave accrual shall be reduced to four (4) hours per month and placed on a
reimbursement schedule with the Payroll Office to reimburse the City the value of
the time used for such employee disability leave. The employee may contribute
vacation to accelerate employee's reimbursement to the City for providing the
benefits under this Section.
4. No employee shall receive more than the "Total" set forth above for his length of
service, during his entire employment with the City.
5. Grounds for termination of disability leave by the City Manager or his designee
shall include, but not be limited to, the following reasons:
a. The employee has recovered from his illness or injury.
b. The leave is being used as a pre- retirement leave for purpose of postponing
retirement or pension.
c. The disability leave was procured by fraud, misrepresentation or mistake.
d. The employee has not cooperated fully in supplying all information and
submitting to any examination requested by the City to determine the
existence or continuing nature of the employee's disability.
6. In the event an employee becomes ineligible to accrue sick leave or is scheduled
to end employment with the City and has not completed the reimbursement
schedule for this benefit, the balance due shall be handled by payroll deduction
or accounts receivable as applicable.
RESOLUTION NO.
PAGE EIGHT
G. Military Leave. Military leave shall be granted in accordance with the provisions of
State and /or Federal law. All employees entitled to military leave shall give the appointing
power an opportunity, within the limits of military regulations, to determine when such leave
shall be taken.
H. Jury Duty. Effective November 1, 1991, the City will no longer provide paid release
time for jury duty to employees covered by this Resolution. If the State and /or Federal Court
Jury Commissioners rescind their present policy of granting exemptions from jury service to
persons who do not receive paid release time for jury duty from their employers, so as to require
jury duty service despite the absence of such pay from their employer, then the City's practice of
providing paid leave time to employees for jury duty shall be reinstated immediately upon the
effective date of such change for the applicable State and /or Federal Court.
In the event that an employee is called for jury duty and wishes to serve, accrued
vacation leave, compensatory time or a leave of absence without pay shall be granted subject to
the scheduling requirements of the City.
In the event that the court fully reimburses the City for the full salary of an employee on
jury duty, the City will immediately reinstate the practice of providing paid release time to
employees for jury duty.
In the event that an employee is called for jury duty and the court does not excuse jury
service based on non - payment of salary by the employer, the City shall grant said employee
paid release time for the required jury duty.
I. Executive Leave. Executive Management and Middle Management employees are
eligible for Executive Leave as outlined below. The use of such Executive Leave time shall be
governed by regulations distributed by the City Manager.
1. Executive Management - Eight (8) hours per quarter (not cumulative and
discretionary with City Manager approval).
2. Middle Management - Eight (8) hours for each four (4) months (not cumulative and
discretionary with City Manager approval).
J. Educational and Professional Leave. Executive Management and Middle
Management employees are eligible for Educational and Professional Leave as outlined below.
The use of such Educational and Professional Leave shall be governed by regulations
distributed by the City Manager.
1. Executive Management - Twelve (12) days per year maximum subject to
budgetary appropriations and City Manager approval.
2. Middle Management - Six (6) days per year maximum subject to budgetary
appropriations and City Manager approval.
K. Maternity Leave. The City complies with the State maternity leave law.
Administrative Regulation No. 418 is by reference incorporated herein.
L. Family Leave. The City agrees to comply with State and Federal leave entitlement
laws. Administrative Regulation No. 430 is by reference incorporated herein.
RESOLUTION NO.
PAGE NINE
M. Holidays. Covered employees shall receive eight (8) hours of pay for each of the
following holidays.
1. New Year's Day
2. Martin Luther King's Birthday
3. Washington Birthday (President's Day)
4. Memorial Day
5. Independence Day
6. Labor Day
7. Veteran's Day
8. Thanksgiving Day
9. Day after Thanksgiving
10. Day before Christmas
11. Christmas Day
When a holiday falls on a weekday that is an employees' regular day off, the employee
shall receive eight (8) hours of compensatory time at straight time. When a holiday falls on a
day an employee is scheduled to work nine hours, and the employee takes the day off, the
employee shall add one hour by choosing vacation, compensatory time, personal leave, or time
without pay. Sick leave, other than personal leave, may not be used to supplement the holiday
hours.
N. Chief of Police Weekend /Holiday Duty. The Chief of Police rotates
weekend /holiday duty coverage with Police Captains every four weeks throughout the year.
Effective November 2008, the Chief of Police shall receive 8.03 straight time hours per payroll
period to compensate this time. The 8.03 additional hours shall be taken in the form of
compensatory time. In addition, based on the designated work schedule, the Chief of Police
shall receive holiday pay equivalent to the number of hours in the regularly scheduled work day
when the holiday falls on a scheduled work day.
O. Reduction in Salary through Mandatory Unpaid Furlough Leave. In order to
meet the City's economic challenges of Fiscal Year 2012 -2013 and Fiscal Year 2013 -2014,
employees will be furloughed up to and not to exceed seventy -two (72) hours in mandatory
unpaid furlough leave during each fiscal year. With advance department head approval,
furlough leave hours may be voluntarily taken in increments of up to the number of hours in a
regular work day. In the event more mandatory non -paid furlough leave hours are taken (not to
exceed 72 hours) by an employee than are needed after appropriate fiscal review, the City shall
reimburse the employee with the total amount of non -paid furlough leave hours exceeded with
an equivalent deposit of vacation hours. Department operations will be considered in the
scheduling of all unpaid furlough leave including special needs.
SECTION 6. INSURANCE BENEFITS
A. Medical Insurance. Effective July 1, 2012 to September 30, 2012, the City
shall provide medical insurance benefits as follows:
Downey Self- Funded Plan:
a. Increase in the Annual Deductible for In- Network/Out -Of- Network from $100
(per person) /$250 (per family) to $500 (per person) /$1000 (per family).
RESOLUTION NO.
PAGE TEN
b. Reduce Out of Network co- insurance rate from 80% to 70 %.
c. Increase the maximum Out of Pocket, excluding the prescription benefit out -
of- pocket, from In- Network/Out -Of- Network $250 (per person) /$500 (per
family) to $2,500 (per person) /$5,000 (per family).
d. Increase in prescription cost from $3 for generic products (Tier 1); $5 for
preferred brand products (Tier 2), and $0 mail order to:
• 30 day supply: $10 generic /$15 brand /$45 non - formulary brand
• 90 day supply by mail order: $20 generic /$30 brand /$90 non - formulary
brand.
e. Increase office visit co- payment from $0 to $20.
f. The City shall continue to contribute one hundred percent (100 %) of the cost
of coverage for an employee plus his qualified dependent(s) in this plan.
Kaiser:
a. Increase Co -Pay from $5 to $10.
b. The City shall continue to contribute one hundred percent (100 %) of the
premium cost to provide coverage for an employee plus his or her qualified
dependent(s) in this plan.
B. Effective for coverage beginning October 1, 2012, the City shall contract with
CaIPERS for the provision of medical insurance benefits under PEMHCA:
1. The City shall contribute one hundred percent (100% of the premium cost of any
plan selected by the employee to provide coverage for the employee and his or
her qualified dependents, except that if the employee selects the PERSCare
plan, the employee must pay the difference between the PERSCare premium
and the next highest premium.
2. The City and the Association agree to a reopener in February 2013 to discuss
the City's contribution amount if the fiscal review of the City's change to
CaIPERS PEMHCA does not result in projected City -wide cost savings of $1.5
million in FY 2013 -14.
3. In its contract to implement the CaIPERS PEMHCA medical insurance program,
the City will structure mandated employer contributions for retirees in a manner
to maintain cost savings.
4. The parties shall, by mutual agreement, make any necessary and legal
modifications to the retiree medical benefits provisions in the Memorandum of
Understanding necessary for conversion to the CaIPERS PEMCHA program that
are consistent with the benefits set forth in Section 7(B) of this Resolution.
RESOLUTION NO.
PAGE ELEVEN
B. Employee Waiver of Medical Coverage. The City agrees to permit an employee to
waive City- sponsored medical coverage as follows:
1. The employee presents written proof to the Human Resources Office that his
qualified dependent(s) are covered by another non - City- sponsored health plan;
and,
2. The employee notified the City during the enrollment period upon hire or during
the City's announced annual open enrollment period. The City agrees that the
employee who is qualified to waive coverage shall receive eighty -one dollars
($81.00) per month if waiver eligibility is for employee only coverage, one hundred
sixty -two dollars ($162.00) per month if waiver eligibility is for employee plus one
coverage, or two hundred twenty -nine dollars ($229.00) per month if waiver
eligibility is for family coverage. The eligible amount will be added to the
employee's paycheck or will be placed in the employee's deferred compensation
plan
C. Dental Insurance. The City shall contribute towards employee and dependent
dental insurance coverage in the amount of thirty -one dollars and ninety -five cents ($31.95) per
month in the dental HMO plan. Effective January 1, 2006 (benefit year 2006), the City shall
increase the maximum benefit under the Delta Dental coverage from one thousand dollars
($1,000) to two thousand dollars ($2,000) for each enrollee per calendar year. The City shall
absorb any increase in cost and agrees that the employee's contribution will continue to be
$37.52 per month.
For Delta Dental Coverage. Effective January 1, 2006 (start of new benefit year), the
City agrees to increase the maximum benefit payable from one - thousand dollars ($1,000) to
two - thousand dollars ($2,000) for each enrollee in each calendar year. Further, it is agreed that
the City contribution will increase to cover this benefit while the employee contribution will
remain thirty -seven dollars and fifty -two cents ($37.52) until the July 1, 2008. For the rate that
will be effective July 1, 2008 and each year thereafter, the City shall calculate the city and
employee contribution as follows:
In May of each year the City shall calculate the overall premium rate based on claims
experience, Delta administrative fees and an industry trending projection. The difference
between the City contribution in effect at the time of the rate calculation and thirty -one dollars
and ninety -five cents ($31.95) will be multiplied by the percent of the overall premium rate
increase from the year before. That number will then be added to the city contribution to
become the new city contribution. The employee contribution will be determined by subtracting
the new premium rate by the new city contribution. That amount will be included in the memo
that is sent to all employees during the month of June for the re- enrollment period. An example
of the calculation is shown below:
RESOLUTION NO.
PAGE TWELVE
Current City $31.95
Current Employee $37.52
Total $69.47
As of July 1, 2006
Increase for new cap $10.00
Current
rate Increase New Amts
New City $ 31.95 $ 10.00 $ 41.95
New Employee $ 37.52 $ 37.52
Total $ 79.47
As of July 1, 2007
Increase in costs $ 10.00
New City $ 41.95
New Employee $ 37.52
Total $ 79.47
$ 10.00
As of July 1, 2008
increase 5%
Cap cost Increase
New city
New Employee
Total
$ 51.95 $ 20.00 $ 1.00
$ 37.52
$ 51.95
$ 37.52
$ 89.47
New Amts
$ 93.94
$ 52.95
$ 40.99
$ 93.94
As of July 1, 2009
% increase 5% $ 98.64
New City $ 52.95 $ 21.00 $ 1.05 $ 54.00
New Employee $ 40.99 $ 44.64
Total $ 98.64
D. Life Insurance. The City shall provide group term life insurance coverage as
follows:
1. Executive Management - A basic life insurance policy in an amount equal to one
times annual earnings up to $100,000.
2. Middle Management - A basic life insurance policy in an amount equal to one
times annual earnings up to $100,000.
3. Confidential /Exempt - A basic life insurance policy in the amount of $10,000.
RESOLUTION NO.
PAGE THIRTEEN
E. Long Term Disability Insurance. For employees in the Executive and Middle
Management and Confidential /Exempt service, the City shall provide group long -term disability
insurance coverage.
SECTION 7. RETIREMENT
A. CaIPERS Retirement Plan. Employees covered by this Agreement participate in
the California Public Employees' Retirement System (CaIPERS). Employee options are
described in a contract between the City of Downey and the California Public Employees'
Retirement System and are incorporated into this Resolution.
1. First Tier Retirement Formula. Effective August 19, 2002, the City amended the
CaIPERS contract to provide the benefit known as 2.7% @ 55 retirement formula
for miscellaneous employees as set forth in Government Code Section21354.5.
Effective July 24, 2000, the City amended the CaIPERS contract to provide the
benefit known as 3% @ 50 for the sworn safety positions of Police Chief and Fire
Chief.
2. Second Tier Retirement Formula. Effective January 11, 2012, the City
amended the CaIPERS contract to provide the benefit known as 2% at 60
retirement formula, as set forth in Government Code Section 21353. The City
shall amend its CaIPERS contract as soon as practicable to implement the 3% @
55 second tier retirement formula for sworn safety positions as set forth in
Government Code Section 21363.1.
3. Survivor /Death Benefits. Effective July 13, 2009, the City implemented the
CaIPERS contract amendment to include: (a) the Level 4 1959 CaIPERS
Survivor's Benefit program (Section 21574) and (b) the Pre - Retirement Optional
Settlement 2 Death Benefit (Section 21548).
4. CaIPERS Contribution — First Tier Formula. In accordance with existing
practice and Government Code Sections 20636 (c) (4), and 20691, the City will
pay the CaIPERS miscellaneous member contribution equal to eight percent (8 %)
for employees enrolled in the 2.7% @ 55 first tier retirement formula and report
the contribution as compensation earnable (referred to as reporting the value of
Employer Paid Member Contribution (EPMC) as special compensation).
Similarity, the City will pay the CaIPERS safety member contribution equal to nine
percent (9 %) for the Police Chief and the Fire Chief enrolled in the 3% @ 50 first
tier safety retirement formula and report the contribution as compensation
earnable (referred to as reporting the value of Employer Paid Member
Contribution (EPMC) as special compensation).
Effective the pay period that includes July 1, 2012, all employees shall begin to
have deducted, on a pre -tax basis, two percent (2 %) of CaIPERS reportable
compensation, pursuant to California Government Code Section 20516(0.
Effective the pay period that includes July 1, 2013, all employees shall have
deducted an additional two percent (2 %) of CaIPERS reportable compensation,
for a total of four percent (4 %), on a pre -tax basis, pursuant to Government Code
Section 20516(f).
RESOLUTION NO.
PAGE FOURTEEN
Should an employee be mandated by a change in law or other action to contribute
any portion of the required employee (member) contribution to CaIPERS, the City
shall take all action necessary to reduce the deduction then being made pursuant
to California Government Code Section 20516(f), above, by the amount of the
mandated employee contribution.
The City shall take action, if necessary, to pass a resolution setting forth that all
deductions or contributions under this Section shall be regarded as a pick -up of
retirement costs pursuant IRC 414(h)(2).
5. CaIPERS Contribution — Second Tier Formula. Eligible employees hired on or
after January 11, 2012 shall be enrolled in the second tier retirement formula and
shall pay the full seven percent (7 %) member contribution for the entire term of
their employment. Such payment will be handled on a pre -tax basis by way of a
bi- weekly payroll deduction.
Similarly, in the event a second tier safety retirement formula is implemented for
newly hired employees in the positions of Police Chief and Fire Chief, the
employee shall pay the full nine percent (9 %) member contribution for the entire
term of their employment. Such payment will be handled on a pre -tax basis by
way of a bi- weekly payroll deduction.
B. Retiree Medical Annuity. An employee who retires from the City of Downey after
July 1, 1987, shall be entitled to participate in the City- sponsored medical plan and the City shall
contribute up to a maximum of ninety -eight dollars ($98.00) per month ($270.00 per month for
the Police Chief and Fire Chief) toward the premium for employee only coverage under the City -
sponsored medical plans, provided:
1. At the time of retirement the employee has a minimum of ten (10) years of service,
or is granted a service- connected disability retirement; and
2. At the time of retirement the employee is employed by the City; and
3. Effective the day after official separation from the City the employee has been
granted a retirement allowance by the California Public Employees' Retirement
System.
The City's obligation to pay up to a maximum of ninety -eight dollars ($98.00) per
month toward the premium in the City plan shall be modified downward or cease
during the lifetime of the retiree upon the happening of any one of the following:
a. During any period the retiree is eligible to receive or receives health insurance
coverage at the expense of another employer the payment will be suspended.
"Another employer" as used herein means private employer or public employer
or self - employed or the employer of a spouse. As a condition of being eligible
to receive the premium contribution set forth above, the City shall have the right
to require any retiree to annually certify that the retiree is not receiving any
such paid health insurance benefits from another employer. If it is later
discovered that misrepresentation has occurred, the retiree will be responsible
for reimbursement of those amounts inappropriately expended and the retiree's
eligibility to receive benefits will cease.
RESOLUTION NO.
PAGE FIFTEEN
b. If the retiree becomes eligible to enroll, automatically or voluntarily, in Medical
or Medicare, the City's plan shall provide secondary coverage only and the
City's contribution rate set forth above shall be adjusted downward accordingly.
c. In the event the Federal government or State government mandates an
employer- funded health plan or program for retirees, or mandates that the City
make contributions toward a health plan (either private or public plan) for
retirees, the City's contribution rate set forth above shall be first applied to that
plan. If there is any excess, that excess may be applied toward the City
medical plan as supplemental coverage provided the retired employee pays the
balance owing for such coverage if any.
d. Upon the death of the retiree, this benefit shall cease. The surviving spouse
shall be able to continue coverage on a single party basis by paying the
appropriate premium.
C. Retiree Medical Opt -Out Program. Effective February 10, 2009, a retiree covered
by this Section who no longer resides in California and relocates his primary residence to a City
that is not reasonably served by Kaiser (or the City's HMO provider, if Kaiser is no longer the
HMO provider) may elect to discontinue coverage under any of the City- sponsored medical
plans, effective at the end of any calendar quarter. In such a case, the retiree may present the
City with proof of payment for alternate health insurance coverage and receive from the City
reimbursement on a quarterly basis for the cost of the alternate insurance up to the amount to
which the retiree is entitled in Section B above. Once a retiree withdraws from eligibility to
participate in a City- sponsored health plan for coverage under an alternate insurance plan, the
retiree may not re- enroll in a City- sponsored medical plan.
Medical reimbursement will cease upon the occurrence of any of the following:
1. The retiree fails to submit appropriate proof of payment for alternate health
insurance coverage within sixty (60) days of the end of the reimbursement
quarter.
2. The death of the retiree.
SECTION 8. MEDICAL EXAMINATION. Executive and Middle Management
employees may participate in the City- sponsored management physical bi- annually at City cost
or be reimbursed up to $125.00 annually for a medical examination with a physician of choice.
Refer to Administrative Regulation No. 405.
SECTION 9. TUITION REIMBURSEMENT. With prior approval of the City Manager,
employees may be reimbursed for tuition and books for courses taken to improve their value to
the City. Tuition shall be reimbursed for courses as recommended by the department head with
job related justification and approved by the City Manager. Employees must receive a passing
grade in order to be reimbursed for the course. Reimbursement shall be made at the rate of
tuition equivalent to the rate charged at California State University at Los Angeles for courses
on the quarter system, and California State University at Long Beach for courses on the
semester system. The employee will be reimbursed for required books only. Refer to
Administrative Regulation No. 403.
RESOLUTION NO.
PAGE SIXTEEN
SECTION 10. UNIFORM ALLOWANCE.
A. Fire Chief. Upon appointment, the City will provide a full dress uniform. The Fire
Chief shall receive two hundred and twenty dollars ($220.00) per year for supplemental
uniforms and physical fitness clothing. The Fire Chief shall receive twelve dollars ($12.00)
monthly as uniform maintenance allowance.
SECTION 11. CONFIDENTIAL /EXEMPTCOMPENSATION PROGRAM.
A. The provisions of that certain document entitled Compensation Program (Part IX of
the Personnel Manual) is by this reference made applicable to employees in the
Confidential /Exempt service of the City.
B. The following compensation policies are also applicable to employees in the
Confidential /Exempt service of the City.
1. Salary Schedules. The following salary schedules are designated for
classifications in the Confidential /Exempt service:
Class Title Pay Table Schedule
Public Information Coordinator 01 240
Chief Deputy City Clerk 01 227
Secretary to the Chief of Police 01 200
Secretary to the City Council 01 227
Secretary to the City Manager 01 227
2. Eligibility for Merit Longevity Pay. Upon approval of the appointing power,
employees who have completed ten (10) continuous years of service may
receive Merit Longevity Pay provided that the employee has been evaluated in
the tenth year and meets standards as defined by a comprehensive
performance rating. Eligible employees shall be paid, in addition to their
respective regular prescribed salary, a monthly amount equal to the next salary
step above their base rate (5.5 %); and after twenty (20) years, one and one -
half (1 -1/2) steps (8.25 %) above their monthly base rate.
3. Qualification for Merit Longevity Pay. Merit Longevity Pay is to be provided
as continuing incentive to career employees. Such payments shall continue
with approval of the City Manager only during such period as an eligible
employee continues to meet standards as defined above. If an employee no
longer meets standards as defined above, the employee will no longer be
eligible for merit longevity pay.
SECTION 12. AUTOMOBILE ALLOWANCE. Individuals appointed or promoted into
Executive Management classifications after December 1, 1989, will no longer be eligible to drive
a City vehicle. Instead, they will receive a three hundred dollar ($300.00) per month automobile
allowance.
The automobile allowance will not be provided to the Chief of Police, the Director of
Development Services, and Fire Chief. These employees will continue to receive a City vehicle.
RESOLUTION NO.
PAGE SEVENTEEN
SECTION 13. BILINGUAL PAY. Employees required to speak or translate Spanish as
part of their regular duties will be compensated forty -six dollars and fifteen cents ($46.15) per bi-
weekly pay period. The City Manager has the authority and discretion to assign and /or remove
this bonus up to budget authority. To be eligible for this assignment, the employee must pass a
conversational examination administered by a certified interpreter, or an employee who has
been appointed by the Human Resources Director to administer such examination. The
employee must recertify at least every eighteen (18) months to maintain the eligibility.
SECTION 14. PREVIOUS RESOLUTIONS. All previous Resolutions establishing
benefits payable to employees covered by this Resolution are hereby repealed and replaced by
this Resolution.
SECTION 15. The City Clerk shall certify to the adoption of this Resolution and provide
for the appropriate distribution thereof.
ATTEST:
APPROVED AND ADOPTED this 24 day of July, 2012.
ADRIA M. JIMENEZ, City Clerk, CMC
AYES: Council Members:
NOES: Council Member:
ABSENT: Council Member:
ABSTAIN: Council Member:
ROGER C. BROSSMER, Mayor
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 24 day of July, 2012, by the following
vote, to wit:
ADRIA M. JIMENEZ, City Clerk, CMC