HomeMy WebLinkAboutCity of Huntington Beach - 2017-09-18Dept. ID HR 17-013 Page 1 of 2
Meeting Date: 9/18/2017
1qPi00WVED 7- D
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 9/18/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Michele Warren, Director of Human Resources
SUBJECT: Approve the appointment of Lori Ann Farrell -Harrison to the position off Assistant
City Manager (ACM) and authorize the City Manager to execute the Employment
Aqreement
Statement of Issue: A national recruitment has been conducted for the position of Assistant City Manager.
The City Manager is recommending the appointment of Lori Ann Farrell -Harrison to the position based on the
outcome of the recruitment process.
Financial Impact: Funding for this position is included in the FY 2017/18 budget.
Recommended Action:
Approve and authorize the City Manager to execute the "Employment Agreement Between the City of
Huntington Beach and Lori Ann Farrell -Harrison" for the position of Assistant City Manager.
Alternative Action(s): Do not approve the Employment Agreement of Lori Ann Farrell -Harrison for the
position of Assistant City Manager and direct the City Manager to re -launch a national recruitment.
Analysis: The position of Assistant City Manager has been vacant since July 2017 due to the resignation of
the former incumbent, Ken Domer, thereby creating the need to fill the department head vacancy.
The City Manager authorized the Office of Human Resources to launch the recruitment for the Assistant City
Manager in July 2017. The City received more than 200 applications for the position. Eight (8) candidates
were invited to interview. Mrs. Farrell -Harrison was one of two (2) finalist candidates recommended by the
recruitment panel, (which was comprised of two City Managers, one Assistant City Manager, the City
Attorney, and the Police Chief).
The City Manager conducted follow-up interviews with each finalist and each finalist was interviewed by the
City Council on Tuesday, September 5, 2017. The City Manager recommends City Council approval to
appoint Lori Ann Farrell -Harrison to the position of Assistant City Manager, effective September 26, 2017.
The contractual compensation is recommended at Non-Associated/Executive Management Pay Grade NA
0592, High Point. The annual salary is $221,145-1 this reflects an increase of approximately 5% over Mrs.
Farrell-Harrison's current compensation.
Mrs. Farrell -Harrison currently serves as the Chief Financial Officer of the City of Huntington Beach
overseeing the City's $344 million budget. She has 26 years of experience in state and local government, as
well as the private sector. She holds a Bachelor's Degree from Barnard College of Columbia University and a
Master's Degree in Public Administration from Columbia University's School of International and Public
Affairs. She has been employed with the City since December 2010.
Strategic Plan Goal.
Enhance and maintain City service delivery.
HB -2 7- Item 4. - 1
Dept. ID HR 17-013 Page 2 of 2
Meeting Date: 9/18/2017
Attachment(s):
1. Assistant City Manager Recruitment Brochure
2. Resume - Lori Ann Farrell -Harrison
3. Employment Agreement
Item 4. - 2 uQ -28-
ATTACHMENT #1
The Community
The City of Huntington Beach is located on the shore of the Pacific Ocean in
northwestern Orange County, 40 miles south of Los Angeles and 90 miles
north of San Diego. As the fourth largest city in Orange County, with a
population approximating 200,000 residents, Huntington Beach is known as
"Surf City" due to its abundance of beaches, sunny, warm Mediterranean
climate and casual lifestyle, Huntington Beach covers 28 square miles of
land, 26 square miles of water, and is the 16th largest city in California. With
10 miles of uninterrupted beach along the Pacific Ocean, the City also plays
host to an annual visitor population of over 11 million people. Listed among
the nation's safest cities for decades, Huntington Beach has often been
ranked among the Top Ten Safest Cities by "City Crime Rankings."
Huntington Beach has also been named the "Best City to Live In" in Orange
County by the readers of the Orange County Register.
Huntington Beach has one of the largest pleasure piers in the world and has
the longest concrete pier in the State. The City's park system includes 58
public parks (with a dog park), riding stables and the largest city -owned and
operated regional park in Orange County — Huntington Central Park. Also
within the City's boundaries are five recreation centers (including a senior
center), three miles of equestrian trails, two golf courses, 72 tennis courts, a
marina and a protected wildlife preserve. Running parallel to Pacific Coast
Highway, and just steps from the ocean is an eight -mile strand perfect for
biking, inline skating, jogging or a leisurely stroll.
The City is centrally located to all major attractions in Orange County includ-
ing the Disney Resorts, the Orange County Performing Arts Center and
Repertory Theater, and the Long Beach Aquarium of the Pacific. The City is
home to the International Surfing Museum, the Surfing Walk of Fame, Bolsa
Chica Ecological Reserve, Huntington Harbour and the Huntington Beach Art
Center. Huntington Beach draws some of the largest crowds in the world to
such professional sporting events as the U.S. Open of Surfing, Van's World
Championship of Skateboarding, and AVP Pro Beach Volleyball.
There are 35 elementary schools, five public high schools, and one
community college (Golden West College) located within Huntington Beach.
The City has a world -class library located within the 365-acre Central Park
as well as four additional branch libraries. In addition, Orange Coast
College; the University of California, Irvine; and California State Universities
at Long Beach and Fullerton are located in close proximity.
There are close to 80,000 households \Whin the City. The median family
household income is $88,035, ranking as one of the highest in the nation.
The 2015 Median Home Value was $642,900.
The City Government
Founded in the late 1880s, Huntington Beach was incorporated as a Charter
City in 1909. Huntington Beach has a City Council/City Manager form of gov-
ernment. The City Council has seven members who are elected at large, on a
non -partisan basis, to four-year overlapping terms. City Council members
are limited to two consecutive four-year terms. There are three elected
department heads - the City Attorney, City Clerk, and City Treasurer. The
position of Mayor is filled on a rotating basis.
The City of Huntington Beach is organized into 13 major departments
including Police, Fire, City Manager, Community Development, Library
Services, City Treasurer, City Clerk, City Attorney, Public Works, Finance,
Community Services, Human Resources and Information Services,
The City has approximately 1,500 full and part-time employees and a
total budget of approximately $345 Million,
The Position
The Assistant City Manager provides professional leadership in the manage-
ment of the City and is responsible for the coordination of various municipal
programs and the executive supervision of assigned City departments. The
Assistant City Manager's principal duties and responsibilities include assisting
the City Manager in administering Council policy and responding to City Council
issues and concerns, either directly or through various City staff members.
The Assistant City Manager serves as the coordinating role for the Develop-
ment Departments and leads the City's Economic and Business
Development efforts.
In addition to assisting in the management of the administrative functions of
the City, the Assistant City Manager ensures the effective coordination and
implementation of public policies, programs, and initiatives through the
professional efforts of other assigned City departments: Library Services,
Human Resources, Information Services, Community Development, and
Public Works.
Working in a collaborative environment with a team -based approach to problem -
solving; the Assistant City Manager works alongside the City Manager to
implement the vision of the City Council, focusing on the realization of Council
priorities and strategic plan goals.
The City has a tradition of strong leadership of City functions balanced with the
respected, active participation of all department heads and staff, guided by the
vision and direction of the seven -member City Council. Under the direction of
the City Manager, the new Assistant City Manager will continue this tradition
of unified focus on the policy goals of the City Council, but will have the op-
portunity to implement change in fresh, innovative ways.
Key responsibilities and challenges of the Assistant City Manager:
• Serve as liaison for developers and assist with entitlement and inter-
agency project coordination.
Oversee the function of the Office of Business Development including
related housing, CDBG, and other affiliated economic development
programs.
• Work with local property owners, prospective businesses, and the
Chamber of Commerce as the Business Development representative
for the City.
Serve as a key member of the City's team on labor relations.
Will operate as facilitator and coordinator over related functions in City
operations allowing the City Manager to maintain a dose working relation-
ship with all departments while relying on the Assistant City Manager to
coordinate and provide feedback to the departments in the management
of daily operations.
In summary, this position will require exceptional leadership and effective com-
munication and facilitation skills. A high level of creativity and
responsiveness, along with a focus on providing excellent service. As a
member of the City's management team, a collaborative, team -oriented
style with a commitment to public service is essential.
The Ideal Candidate
The City is seeking an Assistant City Manager who will be a visionary with
strong collaborative leadership skills. A personable and professional manager
with a willingness to proactively address issues is preferred. He or she will
have a good sense of the needs of the organization and will foster innovative
ways to implement policy change.
The ideal candidate will be progressive and forward -thinking, creative and
innovative, and able to build upon the current work environment. The
incoming Assistant City Manager must be an active change agent, willing to
adapt and evolve to improve processes, methods and results; an individual
who is willing to listen and accept input from staff, community members and
other stakeholders is best. The ideal candidate will have high energy, a
vision for the future and will see challenges as opportunities.
The City seeks a creative and energetic leader who can motivate staff to
reach their highest potential and who Wll foster a culture of accountability
throughout the organization. The chosen candidate will guide and manage
staff by working as a team player to tackle projects with enthusiasm and
collaboration.
The incoming Assistant City Manager will earn the confidence of City
Council, department directors and staff, and will communicate well keeping
stakeholders aptly informed. The ideal candidate will be politically astute yet
apolitical,
An individual who has experience working with elected and appointed
officials, in a complex, intergovernmental environment. A management
style that fosters trust, loyalty, respect, commitment, and partnership with
other executives, managers, and employees.
Candidates should have excellent time and project management skills, and
have a broad understanding of a variety of municipal issues including
financial management, planning and land use, economic development.
The ideal candidate will possess a Master's degree in Public Administration,
Business Administration or similar field and have five (5) years' experience at
the department director level, preferably as a Deputy orAssistant City Manager.
He or she should have the knowledge, skill and ability to handle the following
essential duties:
Ensure effectiveness of daily operations for assigned city departments
and activities, provide management direction by expediting workflow and
assuring achievement of departmental work programs through coordina-
tion and facilitation of assigned executive management team members.
Act as the City representative on major projects affecting city government,
as well as serve on various external boards and commissions of other
agencies, to ensure the City's interests are represented.
Have a proven record as an innovative leader, possessing excellent
communication and presentation skits, with the ability to establish and
maintain effective working relationships, and a demonstrated history of
identifying and responding to community and City Council issues,
concerns, and needs.
Advanced leadership and management skills.
Direct, supervise, and review the activities and operations of the City
Manager's Office; assign work activities, projects, and programs; monitor
workflow; review and evaluate work products, methods, and procedures.
Coordinate activities with those of other departments and outside agen-
cies and organizations, provide staff assistance to the City Manager
and City Council.
Experience in or strong exposure to planning, directing, supervising,
and reviewing th activities of various projects.
Assist in developing, planning, and implementing goals and objectives
for the City; recommend and administer policies and procedures.
Negotiate highly complex contracts and solutions on a variety of admin-
istrative, fiscal, and special projects, especially those having significant
impact upon the city; participate in the preparation of program or special
project budgets; work closely with all affected parties to ensure an ap-
propriate and effective end product.
Provide support directly to the City Manager by serving as the liaison
on major projects; managing oversight of the Development Services,
Office of Business Development and Information Services departments.
• Work closely with the City's labor groups to address issues and ensure a
healthy working relationship with city employees, including representing
the City in labor negotiations.
Compensation
The annual salary is within an established range of $178,505 to $221,145
and will be dependent upon the qualifications and experience of the
selected candidate. In addition, benefits are provided, which include:
Retirement
Iaasir. MPmhPr.' California PERS; 2.5% at 55 miscellaneous benefit
formula. Employees contribute 8% of the employee -share.
Npw MPmhpm California PERS; 2% at 62 miscellaneous benefit
formula. Employees contribute 6.25%e. The City does not pay into Social
Security.
Insurance: Health, life, and disability insurance provided by City.
Employees contribute towards health insurance, IRS Section 125 medical
and dependent care reimbursement plan (FSA).
Leave: General leave 176 hours per year for the first five (5) years of service
- in lieu of sick and vacation; 80 hours of executive leave per calendar year.
Holidays: Ten (10) paid holidays annually.
Auto Allowance: $500 per month.
Deferred Compensation Plans: 457 and 401(a) plans are available.
ATTACHMENT #2
Lori Ann Farrell Harrison
LEADERSHIP STRENGTHS
❖ Dynamic professional with 26 years of experience in public sector management at state and local levels.
Proven experience managing and empowering staff in small, large, contract, and full -service cities.
Politically astute in working effectively and building strong partnerships with the Mayor, City Council,
Executive Team, business community, and the public regarding public policy and strategic objectives.
❖ Skilled in collaborating across all Departments to reach consensus and implement major initiatives.
Experienced in labor negotiations involving 6,000 employees in three different cities and 18 unions.
Highly effective communicator adept at conveying complex financial data in a way that is easily
understood by the public, elected and appointed officials, and the media.
Recognized expert in state and local budgeting, bond financing, and financial management.
PROFESSIONAL HIGHLIGHTS
❖ Achieved a first ever AAA credit rating for the City of Huntington Beach.
❖ Represented the City of Huntington Beach at State in all Redevelopment Agency matters including the
continuation of 12 separate Developer Disposition Agreements and $8 million in annual revenue.
:• Developed award -winning strategies to reduce pension costs and help save taxpayers $74 million.
Successfully managed a $3.0 billion budget for the City of Long Beach, the 6th largest city in California.
Led a Department of 136 employees in five bureaus: Office of the City Treasurer, City Controller,
Budget Management, Purchasing, and Commercial Services in the City of Long Beach.
❖ Appointed by the Mayor of Long Beach to the Board for the Port of Long Beach, the 2nd largest port in
the U.S., responsible for 30,000jobs in the region and $180 billion in national and international trade.
❖ Elected Board President to represent the Port in trade missions to China, Hong Kong, Panama, and other
major overseas ports regarding trade, transportation, land use, zoning, and business development.
•:• Led the Board's negotiation of landmark terminal lease agreement with the Mediterranean Shipping
Company after the Hanjin bankruptcy, securing $84 million in annual revenue for the Port.
EXPERIENCE
Chief Financial Officer City of Huntington Beach, CA
Dec 2010 — Present
• Serve as a Chief Advisor to the City Manager, City Council and Commissions for all financial matters.
• Manage the Finance Department for the 4th largest city in Orange County with 200,000 residents.
• Collaborate with the Executive Team across all 13 departments to manage the $345 million All Funds
budget providing programs and services to businesses, residents and other stakeholders.
• Serve as the City's lead on all former Redevelopment Agency projects and funding.
• Meet with the Chamber, Visit HB, and Hotel/Motel BID, regarding hotel taxes and development.
• Participate in labor negotiations with all eight unions representing 1,000 employees citywide.
• Advise the City in setting rates for the City's Water, Refuse and Sewer operations.
• Work with all three Business Improvement Districts on annual budgets and BID assessments.
• Selected by PERS to be sole representative for all 460 cities at the annual PERS Board Retreat.
• Developed a comprehensive $20 million financing plan for the new state-of-the-art Senior Center.
• Increased reserves by $10 million and received award for being 4th City in "Best Financial Shape."
• Received the "Golden Hub of Innovation" Award from the ACC-OC for reducing pension liabilities.
• Nominated by the Orange County Business Council for "CFO of the Year" in 2015.
President, Port of Long Beach City of Long Beach Harbor Deportment, CA Dec 2013 — Present
• Elected President of the Harbor Commission responsible for oversight of the Harbor Department of the
City of Long Beach with 500 staff and an annual $800 million budget (July 2015 through July 2017).
HB Item 4.-7
Lori Ann Farrell Harrison Page 2
• Ensure fiduciary oversight of the development of the Port's 3,230 acres serving 140 shipping lines
connecting to 217 seaports worldwide moving more than 7 million containers each year.
• Oversee the multi -year $4 billion capital program for a new state-of-the-art zero emissions terminal,
the Gerald Desmond Bridge replacement, and other Port development projects.
• Approved $800 million Project Labor Agreement with the Los Angeles/Orange County Trades Council.
• Reviewed over 200 capital project change orders, terminal lease agreements, revenue sharing
contracts, and environmental impact reports related to the Port's leased land for terminal operations.
• Chaired the Selection Committee for the recruitment and hiring of the Port's Executive Director.
• Represented the Port of Long Beach in business development meetings with the Chairmen and
Presidents of OOCL, Yang Ming, Evergreen, Maersk, MSC, Hapag Lloyd and China Shipping.
• Approved Public Private Partnership for the development of a new Civic Center and Port Headquarters
in Downtown Long Beach with a new hotel, retail space, a new Main Library and residential units.
Chief Financial Officer City of Long Beach, CA
City Controller City of Long Beach, CA
Sept 2007 — Dec 2010
Feb 2006 — Sept 2007
• Directed the Department of Financial Management overseeing payroll, accounts payable, accounts
receivable, purchasing, business licensing, cash management, debt issuance, utility billing (for Gas,
Water, Refuse and Sewer operations), budget monitoring, revenue forecasting, and internal controls
• Developed and monitored annual citywide $3.0 billion All Funds budget supporting 23 departments.
• Analyzed all citywide requests for entertainment permits by local businesses for Council approval.
• Ensured compliance of Queensway Bay developer with lease agreement, rent payments and credits.
• Served on the management negotiations team for nine unions representing 5,000 employees.
• Prepared 19 separate annual financial reports to comply with Federal and State requirements.
• Authored a ballot measure to generate revenue for public safety should cannabis be legalized.
• Obtained Government Finance Officers' Association (GFOA) Certificate of Excellence in Financial
Reporting for the City for Fiscal Years 2007 and 2008 for the first time in 12 years.
Administrative Services Director City of Lomita, CA
Sept 2003 — Feb 2006
• Managed the Department responsible for human resources, information technology and finance.
• Developed and monitored annual $16 million operating and capital budget and annual CAFR.
• Supervised billing operations of the Water Department serving 4,400 households annually.
• Oversaw risk management, workers' compensation, and personnel functions of the City.
• Represented senior management in negotiations with the City's employee bargaining unit.
• Obtained GFOA Certificate of Excellence in Financial Reporting for the first time and removed the
City's "Qualified" audit opinion after one year in office.
Financial Advisor Citigroup/Smith Barney, Long Beach, CA
Feb 2000 — Sept 2003
• Managed investments for 300+ private and corporate accounts with assets exceeding $25 million.
• Advised individuals, corporations and governments regarding their investment portfolios, investment
policy statements, asset allocations and investment manager selections.
• Marketed Citigroup's diversified investment products including stocks, bonds, mutual funds,
convertible securities, hedge funds, private equity placements and commodities to investors.
Director, Financial Compliance and Claiming
NYC Administration for Children's Services, New York, NY
Sept 1996—Jul 1999
• Recruited by Mayor Giuliani's administration to join the management team selected to staff the newly
created child protective, day care, foster care, and adoption services agency in NYC.
• Directed 72 staff submitting Federal and State claims for reimbursement for the $2.4 billion budget for
child welfare, day care, and domestic violence services serving 74,000 children.
• Managed 22 contract caseworkers hired to reduce caseloads, ensure timely visitation of foster
children, maintain proper case records and create internal controls to comply with mandates.
• Implemented Corrective Action Plan that reduced Federal sanctions by $60 million in 3 years.
• Briefed Federal, State, and local regulators on City's improved compliance and updated caseloads.
Item 4. - 8 HB -34-
Lori Ann Farrell Harrison Page 3
Associate Budget Examiner New York State Division of the Budget, Albany, NY Aug 1991— Sept 1996
• Promoted three times in a five-year period with progressively increasing responsibilities and oversight
from Budget Examiner, to Senior Budget Examiner, to Associate Budget Examiner.
• Managed the team responsible for the $2.0 billion budget for family and children's services.
• Analyzed the Department of Social Services' annual request for $1.4 billion in Federal funds, $400
million in General Funds, and $200 million in Local Assistance to serve 84,000 children statewide.
• Managed the $450 million statewide budget for the Division of Substance Abuse Services.
• Spearheaded annual budget negotiations with State Assembly and Senate staff.
• Developed bond financing for capital improvements to State facilities through Dormitory Authority.
Abill 1116100I
Master of Public AdrSinistration Columbia University, School of International and Public Affairs, 1991
Bachelor of A_3 is Barnard College Columbia University, 1989
BOARD MEMBERSHIPS AND ORGANIZATIONS
• Gateway Cities Council of Governments, Board Member
■ Southern California Leadership Council, Director — 2014 to 2016
• Alameda Corridor Transportation Authority, Director - present
■ Long Beach Transit, Director — 2010 to 2013
■ Ivy League Association of Southern California, Member
• Leadership Long Beach, Member
• California Society of Municipal Finance Officers, Member
■ Government Finance Officers Association of the United States and Canada
AWARDS, ACKNOWLEDGMENTS AND MEDIA CREDITS
■ Featured on Bloomberg News, ABC News, and National Public Radio
■ Interviewed by Wall Street Journal, Los Angeles Times, Orange County Register, American Shipper,
American Journal of Transportation, Los Angeles Business Journal, Long Beach Business Journal
• Regional Hispanic Chamber of Commerce — "Woman of the Year in Leadership" 2014
• Boy Scouts of America — "Community Leadership Award" and Keynote Speaker 2017
■ Journal of Commerce - Transpacific Maritime Conference - Welcoming Remarks 2016 and 2017
• Municipal Managers' Association - Women Leading Government - Keynote Speaker 2016
• Centro Cha "Leadership in Public Health" Award - 2016
• World Shipping Summit — Shanghai, China — VIP 2016
■ Panama Canal Authority Grand Opening New Locks — VIP 2016
■ Received 28 awards from the Government Finance Officers' Association for financial reporting
HB -35- Item 4. - 9
ATTACHMENT #3
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND LORI ANN FARRELL-HARRISON
THIS AGREEMENT is entered into this day of '�ED?MJ�2W2017. between the City
of Huntington Beach, a California municipal corporation, hereinafter "City," and Lori Ann Farrell -
Harrison, hereinafter "Farrell -Harrison."
WITNESSETH
The City Manager has been empowered to appoint and remove department heads; and
The City, through the City Manager, desires to employ the services of Farrell -Harrison as
the ASSISTANT CITY MANAGER for the City of Huntington Beach; and
The City seeks to provide certain benefits, establish certain conditions of employment, and
to set working conditions of Farrell -Harrison; and
The City intends to secure, retain and employ the services of Farrell -Harrison; and
Farrell -Harrison intends to accept employment as ASSISTANT CITY MANAGER of the
City; NOW, THEREFORE, in consideration of the mutual covenants here contained, the parties
agree as follows:
SECTION 1. DUTIES.
The City agrees to employ Farrell -Harrison as ASSISTANT CITY MANAGER of the City to
perform the functions and duties of that office as set forth in the Municipal Code of the City of
Huntington Beach and the City Charter, and to perform other legally permissible duties and
functions as the City Manager shall from time to time assign. Farrell -Harrison shall devote her
full attention and effort to the office and perform the mentioned duties and functions in a
professional manner.
SECTION 2. STATUS AND TERM.
(A) Farrell -Harrison shall serve for an indefinite term at the pleasure of the City
Manager and shall be considered an at -will employee of the City.
1
Lori Ann Farrell -Harrison Employment Agreement
(B) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of the City Manager to terminate the employment of Farrell -Harrison at any time, subject only to
the provisions set forth in Section 6, subparagraphs (a), (b) and (c) of this Agreement, and Section
401 of the Charter of the City of Huntington Beach.
(C) Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right
of Farrell -Harrison to resign at any time from her position with the City, subject only to the
provisions set forth in Section 6, subparagraph (d), of this Agreement.
(D) Farrell -Harrison agrees to remain in the exclusive employ of City for an indefinite
period and shall neither accept other employment or become employed by any other employer
without the prior written approval of the City Manager until notice of Farrell-Harrison's
resignation is given.
The term "employed" (and derivations of that term as used in the preceding paragraph) shall
include employment by another legal entity or self-employment; however, shall not be construed
to include occasional teaching, writing, consulting, or military reserve service performed on
Farrell-Harrison's time off, and with the advance approval of the City Manager.
SECTION 3. SALARY AND COMPENSATION.
City agrees to pay Farrell -Harrison for services rendered pursuant to this Agreement based upon
the Non -Associated Executive Management Salary Schedule, Pay Grade NA0592, High Point,
($106.32/hourly/$221,145/annually) or Resolutions or Ordinances from time to time enacted that
govern such compensation.
SECTION 4. OTHER BENEFITS.
In addition to the foregoing benefits, Farrell -Harrison shall also receive all such other benefits that
are generally applicable to non -associated employees (Department Heads) hired after 12/27/1997,
as set forth in Huntington Beach City Council Resolution No. 2016-50, entitled "A Resolution Of
The City Council Of The City Of Huntington Beach Modifying Salary And Benefits For Non -
Represented Employees, a copy of which is attached hereto as Exhibit "A" and incorporated by
2
Lori Ann Farrell-l-larrison Employment Agreement
reference as fully set forth herein. The benefits provided to Farrell -Harrison pursuant to this
Section may be modified by the City from time to time, upon City Council adoption of a successor
Resolution.
SECTION 5. ADMINISTRATIVE LEAVE.
The City Manager may place Farrell -Harrison on Administrative Leave with full pay and benefits
at any time during the term of this Agreement.
SECTION 6. TERMINATION AND SEVERANCE PAY.
(A) Except as provided in subsection (b), in the event the City Manager terminates the
employment of Farrell -Harrison, and during such time that Farrell -Harrison is willing and able to
perform her duties under this Agreement, then the City shall pay to Farrell -Harrison a severance
payment equal to salary payments which Farrell -Harrison would have been receiving over a twelve
week period at Farrell-Harrison's current rate of pay in effect on the day prior to the date of
termination. In addition, for the lesser of ninety (90) calendar days after the date of termination or
the time Farrell -Harrison secures health and medical insurance through comparable employment,
the City shall maintain and pay for health, medical, disability, the continuation of retirement
benefits and life insurance in such amounts and on such terms as have been received by Farrell -
Harrison and Farrell-Harrison's dependents at the time of such termination; however, no other or
additional benefits shall accrue during this ninety (90) calendar -day period.
(13)(1) Notwithstanding subsection (a) above, the following reasons shall constitute
grounds to terminate the employment of Farrell -Harrison without severance pay:
(i) a willful breach of this agreement or the willful and repeated neglect
by Farrell -Harrison to perform duties that she is required to perform;
(ii) conviction of any criminal act relating to employment with the City;
(iii) conviction of a felony.
(13)(2) Prior to the time that the City Manager terminates Farrell -Harrison without
severance pay for any of the reasons set forth in Section (b)(1) above, and only in that case, the
3
Lori Ann Farrell -Harrison Employment Agreement
City Manager shall provide Farrell -Harrison with written notice of proposed termination which
will include the reason and factual basis for termination. Within ten days of such notice, Farrell -
Harrison may request an opportunity to respond to the reasons and factual basis provided by the
City Manager. If such a request to respond is made, the City Manager shall conduct a meeting,
which may be informal in nature, so that Farrell -Harrison may respond to the notice of proposed
termination. At such meeting, Farrell -Harrison may be represented by an attorney of her choice
and present evidence or information relevant to the reasons and factual basis set forth in the notice
of proposed termination. Subsequently, the decision of the City Manager as to whether reasons
set forth in Section (b)(1) exist or do not exist shall be final as between the parties.
(C) In the event the City at any time during the term of this Agreement reduces the
salary of Farrell -Harrison from its current level, except as part of an across-the-board reduction
for all Directors of the City, or in the event the City refuses, following written notice, to extend to
Farrell -Harrison any non -salary benefit customarily available to all Directors, or in the event
Farrell -Harrison resigns following a suggestion, whether formal or informal, by the City Manager
that she resign, then, Farrell -Harrison may, at her option, be deemed to be "terminated". The
termination date will occur then at the date of reduction or refusal to extend or such suggestion of
resignation within the meaning and context of the severance pay provision in subparagraph (a)
above; provided that the option to be deemed terminated is exercised by written notice from
Farrell -Harrison and delivered to the City Manager within ten (10) working days of notification of
such reduction, refusal to extend, or suggestion of resignation. In that event, the severance
payment shall be calculated from the date Farrell -Harrison exercises the option to be deemed
terminated.
(D) In the event Farrell -Harrison voluntarily resigns her position, Farrell -Harrison shall
give City written notice at least thirty (30) days prior to the last workday, unless the City Manager
and Farrell -Harrison otherwise agree.
4
Lon Ann Farrell -Harrison Employment Agreement
(E) It is understood that after notice of termination in any form, Farrell -Harrison and
the City will cooperate to provide for an orderly transition. Specific responsibilities during such
transition may be specified in a written separation agreement.
SECTION 7. DISABILITY.
If Farrell -Harrison is totally medically, or physically disabled or otherwise unable to perform her
duties because of sickness, accident, injury, mental incapacity or ill health, and has provided proof
of the same from a qualified licensed medical professional, she shall be eligible for Disability
Leave upon exhausting all accrued general leave and executive leave, and duty injury leave if
applicable. Disability Leave shall be unpaid and shall be approved by the City Manager for a time
period of up to three (3) months. The length of such time period of the Disability Leave shall be
dependent upon the length of the disability as demonstrated by Farrell -Harrison. If Farrell -
Harrison is unable to return to work at that time, the City shall have the option to terminate the
employment of Farrell -Harrison, subject to the requirements imposed on City by Section 6,
paragraph (A).
SECTION 8. PERFORMANCE EVALUATION.
The City Manager shall review and evaluate in writing the performance of Farrell -Harrison at least
once annually, with the first performance review occurring within the initial six (6) months of
employment. That review and evaluation shall be in accordance with specific criteria developed
in consultation with Farrell -Harrison and the City Manager. Those criteria may be added to or
subtracted from as the City Manager may from time to time determine, in consultation with Farrell -
Harrison.
SECTION 9. GENERAL AND EXECUTIVE LEAVE
Farrell -Harrison shall accrue General Leave in accordance with the General Leave accrual
provisions applicable to Department Heads of the City as contained in the Non -Associated
Resolution (Exhibit "A"). Farrell -Harrison shall be credited 80 hours of Executive Leave on
January 1 of each calendar year. Executive Leave must be used in the same calendar year it is
5
Lori Ann Farrell -Harrison Employment Agreement
credited; unused Executive Leave may not be carried forward to the next calendar year or cashed
out at any time. General Leave shall be accrued in accordance with the appropriate provisions of
the Non -Associated Resolution. Farrell -Harrison shall provide the City Manager with reasonable
notice prior to taking two (2) or more General Leave or Executive Leave days off.
SECTION 10. PROFESSIONAL DEVELOPMENT.
The City agrees to budget and pay for Farrell-Harrison's professional memberships as normally
accorded to Department Heads. Farrell -Harrison shall also receive paid leave, plus registration,
travel and reasonable expenses for short courses, workshops, conferences and seminars that are
necessary for her professional development and, in the judgment of the City Manager, for the good
of the City, and subject to budget limitations and to established travel policies and procedures.
SECTION 11. FINANCIAL DISCLOSURE.
Farrell -Harrison shall report to the City Manager any ownership interest in real property within
the County of Orange, excluding personal residence. Farrell -Harrison shall also complete and file
annually Financial Disclosure 700 Forms. Also, Farrell -Harrison shall report to the City Manager
any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work
for the City or from which the City intends to make a purchase. Such reporting shall be made in
writing by Farrell -Harrison to the City Manager within ten (10) calendar days of the execution of
this agreement and further within ten (10) calendar days of acquisition of that interest in real
property. Additionally, Farrell -Harrison shall report in writing to the City Manager any financial
interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for the City or
from whom the City intends to make a purchase immediately upon notice of the intended work or
purchase.
SECTION 12. INDEMNIFICATION.
The City shall defend and indemnify Farrell -Harrison against actions, including but not limited to
any: professional liability claim or demand, or other noncriminal legal, equitable or administrative
action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the
6
Lori Ann Farrell -Harrison Employment Agreement
performance of Farrell-Harrison's during the discharge of her duties as an employee/officer of the
City, other than an action brought by the City against Farrell -Harrison, or an action filed against the
City by Farrell -Harrison. The City has no obligation to defend or indemnify any action brought
against the City because of any intentional or tortious act caused by Farrell -Harrison involving
punitive damages.
In addition, the City shall pay the reasonable expenses for the travel, lodging, meals, and lost work
time of Farrell -Harrison should Farrell -Harrison be subject to such, should an action be pending after
termination of Farrell -Harrison. The City shall be responsible for and have authority to compromise
and settle any action, with prior consultation with Farrell -Harrison, and pay the amount of any
settlement or judgment rendered on that action. Farrell -Harrison shall cooperate fully with the City
in the settlement, compromise, preparation of the defense, or trial of any such action.
SECTION 13. GENERAL PROVISIONS.
(a) The text here shall constitute the entire Agreement between the parties.
(b) This Agreement shall become effective commencing September 25, 2017.
(c) If any provision, or any portion of any provision, contained in this Agreement is
held unconstitutional, invalid, or unenforceable, the remainder of this Agreement,
or any portion of it, shall be deemed severable, shall not be affected and shall
remain in full force and effect.
(d) No amendment of this Agreement shall be effective unless in writing and signed by
both parties.
7
Lori Ann Farrell -Harrison Employment Agreement
IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed
on its behalf by its City Manager, and Farrell -Harrison has signed and executed this Agreement,
both in duplicate, the day and year first above written.
CITY:
Fred f Wils/n, City Manager
APPROVED AS TO_FORM:
E. Gates, City Attorney
8
Lori Ann Farrel l-f larrison Employment Agreement
ASSISTANT CITY MANAGER:
Lori Ann Farrell -Harrison
RESOLUTION NO. 2016-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
MODIFYING SALARY AND BENEFITS FOR NON -REPRESENTED EMPLOYEES
INCLUDING THE ELECTED CITY ATTORNEY, CITY CLERK, AND CITY TREASURER
WHEREAS, the City Council of the City of Huntington Beach desires to modify the
salary and benefits for Non -Represented Employees upon adoption of this Resolution.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
SECTION 1. Salaries and Benefits for Non -Represented employees shall be as reflected
in Exhibit "A", attached hereto and incorporated by this reference.
SECTION 2. The salary range for the elected City Attorney, City Clerk and City
Treasurer shall be modified as reflected in the Non -Associated Executive Management Salary
Schedule —Exhibit 1.
SECTION 3. Benefits for the elected City Attorney, City Clerk and City Treasurer shall
be as reflected in Exhibit "A", attached hereto and incorporated by this reference.
SECTION 4. Resolution 2007-6, Resolution 2010-106, and Resolution 2014-94 are
hereby repealed.
SECTION 5. Any existing provisions in conflict with the foregoing, whether by minute
action or resolution of the City Council; are hereby repealed.
SECTION 6. All other benefits and salary ranges established and reflected in the Non -
Associated Employees Pay and Benefits Resolution 2016-50, shall continue unless modified by
City Council action.
RLS 6/27/16/16-5325/138993/MV
Item 4. - 18
H B -44-
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the / 'day of / .2016.
REVIEW .� APPROVED:
City 1V`an ier
AIP�P OVED AT�OFORM:
,�-^ City Attorney,"Ifv� V
IN
ED:
of Wuman Resources
RLS 6/27/16/16-5325/138993/MV 2
HB -45- Item 4. - 19
SULic i70A) '-VJIC• _J7), Z�XY4/6,
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
EXHIBIT A - NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT
PROVISION...................................................................................................1
SECTIONI PAY..............................................................................................................1
A. SALARY SCHEDULE.................................................................................................
1
B. DIRECT DEPOSIT. ....................................................................................................
1
C. ASSIGNED VEHICLE/AUTO ALLOWANCE....................................................................
1
1. Department Heads......................................................................................................_..............1
D. Deferred Compensation......................................................................................1
SECTION II — HOURS OF WORK/OVERTIME/TIME OFF.............................................1
A. EXECUTIVE LEAVE...................................................................................................
1
B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES........................................................
2
1. 5/40 Work Schedule...................................................................................................................2
2. 9/80 Work Schedule....................................................................................................................2
3. Alternative Work Schedule..........................................................................................................2
SECTION III — HEALTH AND OTHER INSURANCE BENEFITS ...................................
2
A. HEALTH INSURANCE................................................................................................
2
1. Medical, Dental and Vision Insurance........................................................................................2
2. City and Employee Paid Health Insurance.................................................................................2
3. Medical Cash Out......................................................................................................................4
4. Section 125 Plan........................................................................................................................
4
B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE ...............................
4
C. LONG-TERM DISABILITY INSURANCE.........................................................................4
D. CITY -PAID PHYSICAL EXAMINATIONS........................................................................
5
E. MISCELLANEOUS.....................................................................................................5
F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL
RETIREESUBSIDY PLAN.................................................................................................
5
G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE... .............................................. ....
6
SECTION IV — RETIREMENT......................................................................................... 6
A. BENEFITS...............................................................................................................6
1. Self -Funded Supplemental Retirement Benefit ..................... ............................ .................. ..,....6
2. Medical Insurance for Retirees...................................................................................................6
B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTIONS AND REPORTING ............
7
1. Miscellaneous Unit Members ................................ ............. .......... ............................. ........ ,. -
_. 7
2. Safety Unit Members ......................... ............................................................. ....... ......................
7
3. IRS Code 414(h)(2).......................................... ..................................................8
.....
4. Pre -Retirement Optional Settlement 2 Death Benefit.................................................................8
5. Fourth Level of 1959 Survivor Benefits ...... ........ ............................................................_.....,..,..8
6. VEBA Plan Requirements.. ................ _ .... __ .... ........... ................. .................. ...............
- 8
SECTION V — LEAVE BENEFITS................................................................................10
"A" to Non -Associated Resolution No. 2016-50 i
Item 4. - 20 IHB -46-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
A. GENERAL LEAVE...................................................................................................
10
1. Accrual. .......... .......... .......... ............. ...... ....... ..................
..................... . _ 10
2. Eligibility and Approval................................................................. .
..10
3. Leave Benefit Entitlements. ......................... __ .,_ .......................................
...... ................... 10
4. Conversion to Cash..................................................................................................................10
B, HOLIDAYS AND PAY PROVISIONS.............................................................................
11
C. SICK LEAVE..........................................................................................................
11
1. Accrual......................................................................................................................................11
2. Credit .................................................... ,,............... .............. ...................................
............ 12
3. Usage ............................... -.................. ...,... ,.,..... ...............................................
.............. ..... ..12
4. Payoff at Termination . ...... -......................................................................................................12
D. BEREAVEMENT LEAVE...........................................................................................
13
E. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ........................................
13
SECTION VI - RETIREE SUBSIDY MEDICAL PLAN..................................................13
SECTION VII - MISCELLANEOUS...............................................................................13
A. COLLECTION OF PAYROLL OVERPAYMENTS.............................................................
13
B. UNIFORMS AND CALPERS REPORTING. ... _ ...........................................................
14
EXHIBIT 1 - NON -ASSOCIATED SALARY SCHEDULE.............................................15
EXHIBIT 2 - RETIREE MEDICAL PLAN...................................................................... 16
EXHIBIT 3 - 9/80 WORK SCHEDULE.......................................................................... 20
EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION
............................. 22
Exhibit "A" to Non -Associated Resolution No. 2016-50 ii
Item 4. 2
. HB _47_
-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS
EXHIBIT A
SECTION I — PAY
A. Salary Schedule
1. All current Non -Associated employees shall receive the salaries as identified in Exhibit
1.
2. The City Council shall set the salaries of the elected executive management positions
identified in Exhibit 1, at any rate within the designated salary range.
3. The City Manager is authorized to set the salaries of the non -elected executive
management positions identified in Exhibit 1 at any rate at or below the control point of
the designated salary range. The City Manager is authorized to increase the salary by
any percentage not greater than 5% based upon performance at annual review and
market data. However, no salary for a new employee may be set above the control
point at any time without City Council approval.
B. Direct Deposit
All Non -Associated employees are required to utilize direct deposit of payroll checks.
C. Assigned Vehicle/Auto Allowance
1. Department Heads
Appointed Department Heads and the City Clerk, City Treasurer, and City Attorney shall
have the option of an assigned City vehicle or an auto allowance in the amount of two
hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus
reimbursement of out-of-town travel at the approved mileage rate.
D. Deferred Compensation
Effective the beginning of the pay period following City Council approval of this resolution,
each employee covered by this resolution, including the City Attorney, City Clerk and City
Treasurer, shall receive a one-time deposit to the employee's 457 Deferred Compensation
account in the amount of $3,800.00,
This shall be a single, one-time only deposit. All appropriate Federal and State legal
mandates regarding the tax -treatment of this one-time deposit shall apply.
SECTION II — HOURS OF WORK/TIME OFF
A. Executive Leave
Non -Associated exempt employees shall not be eligible for overtime compensation.
Exempt department heads shall be credited with eighty (80) hours of executive leave per
calendar year.
tem 4. - 22 "A" to Non -Associated Resolution No. 2016-50 HR -48-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
B. Flexible and Alternative Work Schedules
1. 5/40 Work Schedule
The 5/40 work schedule shall be defined as working five (5) eight (8) hour days Monday
through Friday each week with a one -hour lunch during each work shift, totaling a forty
(40) hours work week.
2. 9/80 Work Schedule
The 9/80 work schedule, as outlined in Exhibit 3, shall be defined as working nine (9)
days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9)
hours per day and working one (1) day for eight (8) hours (Friday), with a one -hour
lunch during each work shift, totaling forty (40) hours in each FLSA designated work
week. The 9/80 work schedule shall not reduce service to the public, departmental
effectiveness, productivity and/or efficiency as determined by the City Manager or
designee.
3. Alternative Work Schedule
Non -associated employees may elect any alternative work schedule approved by the
City Manager or designee.
SECTION III — HEALTH AND OTHER INSURANCE BENEFITS
A. Health Insurance
1. Medical, Dental and Vision Insurance
The City shall continue to make group medical, dental and vision benefits available to
all Non -Associated employees.
2. City and Employee Paid Health Insurance
The City and the employee shall pay for health insurance premiums for employees and
qualified dependent(s) effective the first of the month following the employee's hire
date. The employee payroll deduction for premium contributions shall be deducted on
a pre-tax basis.
Such deductions shall be aligned with the effective date of coverage and the ending
date of coverage upon employment separation. The employee's payroll deduction
amount shall begin no later than the beginning of the first full pay period following the
effective date of coverage and pro -rated for coverage through the end of the month in
which employment was separated.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -49-
Item 4. - 2
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Health Plan Employee and Employer Contributions Chart for Non -Safety
Classifications in EXHIBIT 1
City of Huntington Beach
2016 Health Premiums and Contributions
Effective pay period following final City Council approval
Nan-Associated/Non-Safety
Plan
T1e
Monthlyw
Prernium
Employer "
Monthly .
,Contribution
Employee
Monthly
_: Goh ution
Employee ,
BrWeekly �
��.Gontribution `;.'
Kaiser
Single
466.65
466.65
0.00
0.00
Two -Party
1,022.11
974.36
47,75
22.04
Family
1,343.90
1,170.04
173.86
80.24
Blue Shield HMO
Single
671.00
640.76
30.24
13,96
Two -Party
1,466.00
974.36
491.64
226.91
Family
1,896.00
1,170.04
725.96
335.06
Blue Shield PPO
Single
736.00
736.00
0.00
0.00
Two -Party
1,555.00
1,135.78
419.22
193.49
Family
1,927.00
1,314.31
612.69
282.78
Delta Dental PPO
Single
58.10
45.02
13.08
6.04
Two -Party
108.60
85.91
22.69
10.47
Family
143.20
122.18
21.02
9.70
Delta Care HMO
Single
30.11
30.11
0.00
0.00
Two -Party
51.19
51.19
0.00
0.00
Family
78.29
78.29
0.00
0.00
VSP Vision
Single
25.12
0.00
25.12
11.59
Two -Party
25.12
0.00
25.12
11.59
Family
25.12
0.00
25.12
11.59
Medical Opt -Out: $466.65 per month ($215.38 bi-weekly)
"Safety Member" Health Premiums - Employer Contribution
Employees that are classified as "safety member" by the California Public Employees'
Retirement System (CaIPERS) may have access to the medical plans offered by
CaIPERS as contracted by the City. In accordance with eligibility provisions, the
Police Chief and the Fire Chief may elect to enroll in the CaIPERS health insurance
program offered by the City.
The City's maximum monthly employer contributions for the CaIPERS health
insurance program is set forth in the current City of Huntington Beach Non -
Associated Safety Health Premiums and Contributions Chart. The amounts listed
therein include the mandated Public Employees' Medical and Hospital Care Act
(PEMHCA) contribution.
tem 4. - 24 'A" to Non -Associated Resolution No, 2016-50 1 HB -50-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
iii. Employees shall not be entitled to the difference between the employer contribution
and the premiums for insurance plan(s) selected by the employee.
iv. Future Premiums
The City "caps" its contributions toward
plan premiums by category (EE, EE + 1,
i and ii above.
monthly group medical, dental and vision
and EE + 2 or more) as outlined in sections
The City agrees to increase the contribution toward monthly group medical by $200
per plan, per tier, effective following City Council approval of this resolution.
The employee and employer contributions rates set forth in sections i and ii above
shall remain in effect in 2017 and beyond unless otherwise modified by a successor
Non -Associated Resolution. Employee and City Contributions subject to change as
a result of City Council approval.
The City's contribution caps for dental and vision in effect as of August 1, 2014 shall
not be increased.
The City's contribution caps will remain in place, even if premium increases result in
these additional costs being borne by the employee.
3. Medical Cash Out
If an employee is covered by a medical program outside of a City -provided program
(evidence of which must be supplied to Human Resources), the employee may elect to
discontinue City medical coverage and receive the monthly value of the City's
contribution to the lowest cost employee -only medical plan paid bi-weekly.
4. Section 125 Plan
Employees shall be eligible to participate in a City -approved Section 125 Flexible
Spending Account Plan the same as all other eligible employees, as provided by IRS
law. This plan allows employees to use pre-tax salary to pay for regular childcare,
adult dependent care and/or medical expenses.
B. Life and Accidental Death and Dismemberment Insurance
Each Non -Associated employee shall be provided with $50,000 life insurance and $50,000
accidental death and dismemberment insurance paid for by the City. Each employee shall
have the option, at his/her own expense, to purchase additional amounts of life insurance and
accidental death and dismemberment insurance to the extent provided by the City's current
providers. Evidence of insurability is contingent upon total participation in additional amounts.
C. Long -Term Disability Insurance
This program provides benefits for each incident of illness or injury after a waiting period of
thirty (30) calendar days during which the Non -Associated employee may use accumulated sick
leave, general leave, executive leave pay. Subsequent to the thirty-(30) day waiting period, the
employee will be covered by an insurance plan paid for by the City providing sixty-six and two-
thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a
maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury
or illness shall be to age sixty-five (65).
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -5 1-
1t Item 4. - 2
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Days and months refer to calendar days and months. Benefits under the plan are integrated
with sick leave, Worker's Compensation, Social Security and other non -private program
benefits to which the employee may be entitled. Disability is defined as: "The inability to
perform all of the duties of regular occupation during two years and thereafter the inability to
engage in any employment or occupation, for which he/she is fitted by reason of education,
training or experience." Rehabilitation benefits are provided in the event the individual, due to
disability, must engage in other occupation. Survivor's benefits continue the plan payment for
three (3) months beyond death. A copy of the plan is on file in the Human Resources
Department.
D. City -Paid Physical Examinations
Non -Associated employees shall be provided, once every two years, with a City -paid physical
examination comparable to the current pre -placement class physical examination or reimbursed
the amount authorized for said physical examination. No more than one-half of the eligible
employees shall receive examinations in any one fiscal year. Said exam shall be
comprehensive in nature and shall include:
A complete medical history, physical exam and review of results by physician.
2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG.
3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool
test for blood.
E. Miscellaneous
When a Non -Associated employee is on a leave of absence without pay for reason of medical
disability, the City shall maintain the City -paid insurance premiums during the period the
employee is in a non -pay status for the length of said leave, not to exceed twenty-four (24)
months.
F. Retiree Medical Coverage for Retirees Not Eligible for the Citv Medical Retiree Subsidv Plan
Employees who retire from the City after January 1, 2004, and are granted a retirement
allowance by the California Public Employees' Retirement System and are not eligible for the
City's Retiree Subsidy Medical Plan may choose to participate in City -sponsored medical
insurance plans until the first of the month in which they turn age sixty-five (65).
The retiree shall pay the full premium for City -sponsored medical insurance for themselves
and/or qualified dependents without any City subsidy.
Employees who retire from the City and receive a retirement allowance from the California
Public Employees' Retirement System and are not eligible for the City's Retiree Subsidy
Medical Plan and choose not to participate in City -sponsored medical insurance upon
retirement permanently lose eligibility for this insurance.
However, if a retiree who is not eligible for the City's Retiree Subsidy Medical Plan chooses not
to participate in City -sponsored medical insurance plans because the retiree has access to
other group medical insurance, and subsequently loses eligibility for that group medical
insurance, the retiree and their qualified dependents will have access to City -sponsored
medical insurance plans reinstated.
tem 4. - 261 to Non -Associated Resolution No. 2016-50 1 HB -52-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or
qualified dependent turns age sixty-five (65).
G. Post-65 Supplemental Medicare Coverage
Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and
all future retirees who meet the criteria to participate in City -sponsored medical insurance, with
or without the Retiree Medical Subsidy Plan, may participate in City -sponsored medical
insurance plans that are supplemental to Medicare, after a contract is in place between the City
and a health insurance provider.
A retiree or qualified dependent must choose to participate in City -sponsored medical insurance
plans that are supplemental to Medicare beginning the first of the month in which the retiree or
qualified dependent turns age sixty-five (65).
The retiree shall pay the full premium to participate in City -sponsored medical insurance plans
that are supplemental to Medicare for themselves or qualified dependents without any City
subsidy.
Retirees or qualified dependents, upon turning age 65, who choose not to participate in the
City -sponsored medical insurance plans that are supplemental to Medicare permanently lose
eligibility for Ithis insurance.
SECTION IV — RETIREMENT
A. Benefits
1. Self -Funded Supplemental Retirement Benefit
In the event a Non -Associated employee member elects Option #1, #2, #2W, #3, #3W or
#4 of the Public Employees' Retirement law, the City shall pay the difference between
such elected option and the unmodified allowance which the member would have
received for his or her life alone as provided in California Government Code sections
21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as
of the date of this agreement. This payment shall be made only to the member (Non -
Associated employee), shall be payable by the City during the life of the member, and
upon that member's death, the City's obligation shall cease. Unless previously excluded
by employment or resolution, eligibility for this benefit is limited to employees hired before
December 27, 1997,
2. Medical Insurance for Retirees
a. Upon retirement, whether service or disability connected, each Non Associated
employee shall be entitled to cause self, spouse and dependents to participate fully
in the City's group health insurance program at the equivalent of the City's group
premium rate in accordance with the provisions specified by Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at
employee's expense and upon terms, conditions and restrictions currently in effect.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -53-
11Item 4. - 2
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
b. As an alternative to the benefit described in paragraph IV.A.2.a above, the City will
provide a financial contribution towards the cost of retiree medical premiums as
described in Section VI.
B. Public Employees' Retirement System Contributions and Reporting
Miscellaneous Members
a. The City shall provide all miscellaneous employees described as "classic members
by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain
retirement program commonly known and described as the "2.5% at age 55 plan"
which is based on the retirement formula as set forth in the California Public
Employees' Retirement System (CalPERS), Section 21354 of the California
Government Code.
b. Miscellaneous bargaining unit "classic members" shall pay to CalPERS as part of
the required member retirement contribution eight percent (8%) of pensionable
income. This provision shall not sunset.
c. The City shall contract with CalPERS to have retirement benefits calculated based
upon the "classic" employee's highest one year's compensation, pursuant to the
provisions of Section 20042 (highest single year).
d. The obligations of the City and the retirement rights of employees as provided in this
Article shall survive the term of this resolution.
e. For "New" Members within the meaning of the California Public Employees' Pension
Reform Act of 2013.
1) New Members shall be governed by the two percent at age 62 (2% @ 62)
retirement formula set forth in Government Code section 7522.20.
2) Final compensation will be based on the highest annual average compensation
earnable during the 36 consecutive months immediately preceding the effective
date of his or her retirement, or some other 36 consecutive month period
designated by the member.
3) Effective January 1, 2013, "new" members as defined by PEPRA and
determined by CalPERS, shall contribute one half (50%) of the normal cost as
established by CalPERS.
2. Safety Members
a. The City shall provide all safety employees described as "classic"
Public Employees' Pension Reform Act of 2013 — "PEPRA"
retirement program commonly known and described as the "3%
which is based on the retirement formula as set forth in the
Employees' Retirement System (CalPERS), Section 21362.2
Government Code.
members by the
with that certain
at age 50 plan"
California Public
of the California
tem 4. m 28; to Non -Associated Resolution No. 2016-50 1 HB -54-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
b. All safety employees described as "classic" members shall pay to CalPERS as part
of the required member retirement contribution nine percent (9%) of pensionable
income. This provision shall not sunset.
c. The City shall contract with CalPERS to have retirement benefits calculated based
upon the "classic" employee's highest one year's compensation, pursuant to the
provisions of Section 20042 (highest single year).
d. The obligations of the City and the retirement rights of employees as provided in this
Article shall survive the term of this resolution.
e. For "New" Members within the meaning of the California Public Employees' Pension
Reform Act of 2013
1) New Members shall be governed by the two and seven tenths percent at age
57 (2.7% @ 57) retirement formula set forth in Government Code section
7522.25(d)
2) Final compensation will be based on the highest annual average compensation
earnable during the 36 consecutive months immediately preceding the effective
date of retirement, or some other 36 consecutive month period designated by
the member.
3) Effective January 1, 2013, "new" members as defined by PEPRA and
determined by CalPERS, shall contribute one half (50%) of the normal cost, as
established by CalPERS.
3. IRS Code Section 414(h)(2)
The City has adopted the CalPERS Resolution in accordance with IRS Code section
414(h)(2) to ensure that both the employee contribution and the City pickup of the
required member contribution are made on a pre-tax basis. However, ultimately, the tax
status of any benefit is determined by the law.
4. Pre -Retirement Optional Settlement 2 Death Benefit
Non -Associated employees shall be covered by the Pre -Retirement Optional Settlement
2 Death Benefit as identified in Section 21548 of the California Government Code when
approved by the City Council.
5. Fourth Level of 1959 Survivor Benefits
Non -Associated employees shall be covered by the Fourth Level of the 1959 Survivor
Benefit as identified in Section 21574 of the California Government Code.
6. VEBA Plan Requirements
a. Eligibility Defined
Effective December 23, 2009, all eligible Unrepresented Management Employees
with 25 years of continuous service to the City of Huntington Beach will participate in
the Plan. An eligible employee is an employee who works twenty (20) or more
hours per week and receives benefits.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -55-
11 Item 4. - 2
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
b. Employee Contributions
c. Leave Payout
Each eligible unrepresented management employee shall designate all leave
payouts to be rolled over to his/her VEBA Plan account based on the established
range upon separation from City employment.
d. Participant Account
A separate account is maintained for each contributing eligible unrepresented
management employee, which documents the employee's contributions and
disbursements. Contributions to a VEBA plan account as well as any disbursements
to cover nonreimbursed, post -tax medical care expenses are both tax free. Eligible
benefits subject to reimbursement by the Plan shall be limited to long-term care
expenses and nonreimbursed medical premiums, co -pays, prescribed drug
expenses and other medical care costs as that term is defined by the Internal
Revenue Code Section 213.
e. Administrative Fees
Any Plan administrative fees will be deducted from interest on the total Plan
investments.
An eligible unrepresented management employee's Plan account is subject to a
monthly administrative fee for expenses related to recordkeeping, claims
processing, and claims reimbursement. The fee will first be deducted from interest
on total plan investments, and then deducted, if necessary, from the employee's
individual account.
f. Dispute Resolution
This Resolution and any disputes arising under or in connection with this Resolution
shall not be subject to any dispute resolution procedures in the City's Personnel
Rules, nor shall this Resolution and any such dispute relating thereto be subject to
the jurisdiction of the City's Personnel Board for any reason whatsoever.
g. Indemnification
All Unrepresented Management Employees agree to indemnify and hold the City of
Huntington Beach harmless against any claims made of any nature and against any
suit instituted against the City arising from this Resolution, including, but not limited
to, claims arising from an employee's participation in VEBA or from any salary
reduction initiated by the City for VEBA contributions.
Item 4, - 30) "to Non -Associated Resolution No. 2016-50 1 HB -56-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
SECTION V — LEAVE BENEFITS
A. General Leave
1. Accrual
Employees will accrue General Leave at the accrual rates outlined below. General leave
may be used for any purpose, including vacation, sick leave, and personal leave.
General leave for non -associated employees shall be accrued as follows:
Years of Service
Annual,General;Leave,
Allowance..,""
, Biweekly General Leave
Allowance
First through Fourth Year
176 hours
6.77
Fifth through Ninth Year
200 hours
7.69
Tenth through Fourteenth Year
224 hours
8.62
Fifteenth Year and Thereafter
256 hours
9.85
2. Eligibility and Approval
General leave must be pre -approved except for illness, injury or family sickness, which
may require a physician's statement for approval. General leave accrued time is to be
computed from hiring date anniversary. Employees shall not be permitted to take general
leave in excess of actual time earned. Employees shall not accrue general leave in
excess of six hundred forty (640) hours. Employees may not use their general leave to
advance their separation date on retirement or other separation from employment.
3. Leave Benefit Entitlements
The City shall comply with all State and Federal leave benefit entitlement laws. An
eligible employee on an approved leave shall be allowed to use applicable earned Sick
Leave, General Leave, or Executive Leave for family or personal health issues. For
more information on employee leave options contact the Human Resources Department.
4. Conversion to Cash
a. Pay Off at Termination
An employee shall be paid for unused general leave upon termination of
employment at which time such terminating employee shall receive compensation at
their current salary rate for all unused, earned general leave to which they are
entitled up to and including the effective date of their termination.
b. Conversion to Cash
Two times during each fiscal year, each permanent employee shall have the option
to convert into a cash payment or deferred compensation up to a total of one
hundred -twenty (120) general leave benefit hours per fiscal year. The employee
shall give payroll two (2) weeks advance notice of their decision to exercise such
option.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -57-
T1 Item 4. - 3
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
c. One Week Minimum Vacation Requirement
The City Manager may require certain positions which handle money or transfer
funds to take a minimum of one week, (i.e., five consecutive work days) paid
vacation each calendar year.
d. Deferred Compensation Contribution at Time of Separation
The value of any unused earned leave benefits may be transferred to deferred
compensation at separation (including retirement), but only during the time that the
employee is actively employed with the City. The latest opportunity for such transfer
must be the beginning of the pay period prior to the employee's last day of
employment.
B. Holidays and Pav Provisions
1. Non -Associated employees shall receive the following legal holidays as of the first pay
period following adoption of the Non -Associated Resolution paid in full per the
employee's regularly scheduled work shift:
(1) New Year's Day (January 1)
(2) Martin Luther King Day (third Monday in January)
(3) Presidents Day (third Monday in February)
(4) Memorial Day (last Monday in May)
(5) Independence Day (July 4)
(6) Labor Day (first Monday in September)
(7) Veteran's Day (November 11)
(8) Thanksgiving Day (fourth Thursday in November)
(9) The Friday after Thanksgiving
(10) Christmas Day (December 25)
2. Any day declared by the President of the United States to be a national holiday or by the
Governor of the State of California to be a state holiday and adopted as an employee
holiday by the City Council of the City of Huntington Beach.
3. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be
observed the following Monday, and those falling on Saturday shall be observed the
preceding Friday.
C. Sick Leave
1. Accrual
No employee shall accrue sick leave.
tem 4. - 32 7"to Non -Associated Resolution No. 2016-50 1 HB -58-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
2. Credit
Employees assigned to Non -Associated shall carry forward their sick leave balance and
shall no longer accrue sick leave credit.
3. Usage
Employees may use accrued sick leave for the same purposes for which it was used
prior to December 25, 1999. Sick leave shall not be used to extend absences due to
work related (industrial) injuries or illnesses, this provision shall be added to Personnel
Rule 18.10.
4. Payoff at Termination
a. Non Associated employees with continuous service with the City since November
20, 1978, shall be entitled to the following sick leave payoff plan:
At involuntary termination by reason of disability, or by death, or by retirement,
employees shall be compensated at their then current rate of pay for seventy-five
percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty
percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a
maximum of seven hundred and twenty hours (720) of unused, accumulated sick
leave, except as provided in paragraph V.C.5.d below.
Upon termination for any other reason, employees shall be compensated at their
then current rate of pay for fifty percent (50%) of all unused accumulated sick leave,
up to a maximum of 720 hours of such accumulated sick leave.
b. Non -Associated employees hired after November 20, 1978 shall be entitled to the
following sick leave payoff plan:
Upon termination, all employees shall be paid, at their then current salary rate, for
twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and
for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours,
but not to exceed 720 hours, except as provided in paragraph V.C.2.c below.
c. Except as provided in paragraph V.C.5.d below, no Non -Associated employee shall
be paid at termination for more than 720 hours of unused, accumulated sick lave.
However, employees may utilize accumulated sick leave on the basis of "last in, first
out," meaning that sick leave accumulated in excess of the maximum for payoff may
be utilized first for sick leave, as defined in Personnel Rule 18-8.
d. Non -Associated employees who had unused, accumulated sick leave in excess of
720 hours as of July 5, 1980, shall be compensated for such excess sick leave
remaining on termination under the formulas described in paragraphs V.C.5.a and b
above. In no event shall any employee be compensated upon termination for any
accumulated sick leave in excess of the "cap" established by this paragraph (i.e.,
720 hours plus the amount over 720 hours existing on July 5, 1980). Employees
may continue to utilize sick leave accrued after that date in excess of such "cap" on
a "last in, first out' basis. To the extent that any such "capped" amount of excess
sick leave over 720 hours is utilized, the maximum compensable amount shall be
correspondingly reduced, (Example: Employee had 1,000 hours accumulated. Six
months after July 5, 1980, employee had accumulated another 48 hours. Employee
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -59-
1 t Item 4. - 3
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation
at termination is now reduced by 72 hours to 928.)
D. Bereavement Leave
Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in
each instance of death in the immediate family. Immediate family is defined as father,
mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother,
step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or
wards of which the employee is the legal guardian.
E. Voluntary Catastrophic Leave Donation Program
Under certain conditions, an employee may donate leave time to another employee in need.
The program is outlined in Exhibit 4.
SECTION VI — RETIREE SUBSIDY MEDICAL PLAN
An employee who has retired from the City shall be entitled to participate in the City -sponsored
medical insurance plans in accordance with the Retiree Subsidy Medical Plan as outlined in
Exhibit 2. Employees hired on or after December 1, 2009, shall not be eligible for this benefit.
SECTION VII — MISCELLANEOUS
A. Collection of Payroll Overpayments
In the event that a payroll overpayment is discovered and verified, and considering all
reasonable factors including the length of time that the overpayment was made and if and when
the employee could have reasonably known about such overpayment, the City shall take action
to collect from the employee the amount of overpayment(s). Such collection shall be processed
by payroll deduction over a reasonable period of time considering the total amount of
overpayment.
In the event the employee separates from employment during the collection period, the final
amount shall be deducted from the last payroll check of the employee. If applicable, the
balance due from the employee shall be communicated upon employment separation if the last
payroll check does not sufficiently cover the amount due the City.
It shall be the responsibility of the employee and the City to periodically monitor the accuracy of
compensation payments or reimbursements due to the possibility of a clerical oversight or error.
The City reserves the right to also collect compensation overpayments caused by or the result
of misinterpretation of a pay provision by non -authorized personnel. The interpretation of all
pay provisions shall be administered by the City Manager or designee and as adopted by the
City Council. Unauthorized compensation payments shall not constitute a past practice
(1/03/05).
teen 4. - 34 Non -Associated Resolution No. 2016-50
a � to _ 1 H 13 -60-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
B. Uniforms and CalPERS Reporting
The City provides uniforms to active duty employees in the classifications of Police Chief and
Fire Chief. These employees are required to wear a standard uniform for appearance,
uniformity, and public recognition purposes.
The City will report to the California Public Employees' Retirement System (CaIPERS) the
average annual cost of uniforms as special compensation for each eligible employee in
accordance with Title 2, California Code of Regulations, Section 571(a)(5).
Exhibit "A" to Non -Associated Resolution No. 2016-50 H B -61-
111tem 4, - 3.
NON -ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS
EXHIBIT 1
NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE
EFFECTIVE SEPTEMBER 24, 2016 - 2.0% Increase
EXECUTIVE MANAGEMENT
10591
City Manager
NA0591
NA
NA
128.29
DEPARTMENT HEADS
0592
Assistant City Manager
NA0592
85.82
95.51
106.32
0016
City Attorney
NA0016
100.18
111.51
124.10
0017
City Clerk
NA0017
69.94
77.85
86.66
Job No.
Description
A
B
C
D
E
Grade
0593
Chief Assistant City Attorney
NA0593
71.05
74.96
79.08
83.43
88.01
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
EXHIBIT 2
RETIREE MEDICAL PLAN
An employee who has retired from the City shall be entitled to participate in the City sponsored
medical insurance plans and the City shall contribute toward monthly premiums for coverage in an
amount as specified in accordance with this Plan, provided:
A. At the time of retirement the employee has a minimum of ten (10) years of continuous full
time City service or is granted an industrial disability retirement; and
B. At the time of retirement, the employee is employed by the City; and
C. Following official separation from the City, the employee is granted a retirement allowance
by the California Public Employees' Retirement System.
The City's obligation to pay the monthly premium as indicated shall be modified downward
or cease during the lifetime of the retiree upon the occurrence of any one of the following:
On the first of the month in which a retiree or dependent reaches age 65 or
on the date the retiree or dependent can first apply and become eligible,
automatically or voluntarily, for medical coverage under Medicare (whether or
not such application is made) the City's obligation to pay monthly premiums
may be adjusted downward or eliminated. Benefit coverage at age 65 under
the City's medical plans shall be governed by applicable plan document.
2. In the event of the death of any employee, whether retired or not, the amount
of the retiree medical insurance subsidy benefit which the deceased
employee was receiving at the time of his/her death would be eligible to
receive if he/she were retired at the time of death, shall be paid on behalf of
the spouse or family for a period not to exceed twelve (12) months.
D. Schedule of Benefits
Minimum Eligibility for Benefits
With the exception of an industrial disability retirement, eligibility for benefits begins
after an employee has completed ten (10) years of continuous full time service with
the City of Huntington Beach. Said service must be continuous unless prior service
is reinstated at the time of his/her rehire in accordance with the City's Personnel
Rules. Employees hired on or after December 1, 2009 shall not be eligible for this
benefit.
2. Disability Retirees
Industrial disability retirees with less than ten (10) years of service shall receive a
maximum monthly payment toward the premium for health insurance of $121,
Payments shall be in accordance with the stipulations and conditions, which exist for
all retirees. Payment shall not exceed dollar amount, which is equal to the full cost
of premium for employee only.
3. Marital Status — Married retirees eligible for benefits under the Retiree Medical
Subsidy Plan may each receive the benefit earned pursuant to Section 4 —
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 H B -6 3_
Wtem 4. - 3
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Maximum Monthly Subsidy Payments, whether enrolled individually as the plan
enrollee or whether enrolled as a dependent on any City -sponsored medical plan.
a. In the case where a retiree is married to a City employee (active or retired)
who is not an unrepresented/non-associated employee or retiree, this
provision shall remain applicable.
b. This provision shall apply to State of California registered domestic partners
the same as married spouses.
4. Maximum Monthly Subsidy Payments
Payment amounts may be reduced each month as dependent eligibility ceases due
to death, divorce or loss of dependent child status. However, the amount shall not
be reduced if such reduction would cause insufficient funds needed to pay the full
premium for the employee and the remaining dependents. In the event no reduction
occurs and the remaining benefit premium is not sufficient to pay the premium
amount for the employee and the eligible dependents, said needed excess premium
amount shall be paid by the employee.
All retirees, including those retired as a result of disability whose number of years of
service prior to retirement, exceeds ten (10) years of continuous full time service,
shall be entitled to maximum monthly payment of premiums by the City for each
year of completed City service as follows:
Maximum Monthly Payment
for Retirements After:
Years of Service,�� : ���
� Subsidy
10
$121
11
136
12
151
13
166
14
181
15
196
16
211
17
226
18
241
19
256
20
271
21
286
22
300
23
315
24
330
25
344
tem 4. - 3 8 3 ."to Non -Associated Resolution No. 2016-50 1 HB -64-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
MISCELLANEOUS PROVISIONS
A. Eligibility:
1. The effective start-up date of the Retiree Subsidy Medical Plan for the various
employee groups shall be the first of the month following retirement date.
2. A retiree may change plans, add dependents, etc., during annual open enrollment.
The Human Resources Department shall notify covered retirees of this opportunity
each year.
3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of
completed service with the City of Huntington Beach.
B. Benefits:
1. The Retiree Subsidy Medical Plan includes any medical plan offered by the City to
active and/or retired unrepresented/non-associated employees and retirees.
2. City Plans are the primary payer for active employees age 65 and over, with
Medicare the secondary payer. Retirees age 65 and over have no City Plan options
and are eligible only for Medicare.
3. Premium payments are to be received at least one month in advance of the
coverage period.
C. Subsidies:
1. The subsidy payments will pay for:
a. The Retiree Subsidy Medical Plan.
c. Part A of Medicare for those retirees not eligible for paid Part A.
2. Subsidy payments will not pay for:
a. Part B Medicare.
b. Any other employee benefit plan.
c. Any other commercially available benefit plan.
d. Medicare supplements
D. Medicare:
1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit
quarters of Social Security will receive Part A of Medicare at no cost. Those without
sufficient credited quarters are still eligible for Medicare at age 65, but will have to
pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part
B of Medicare is paid for by the participant.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -65-
I
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for
paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the
maximum subsidy, whichever is less.
3, When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is
not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at
age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age
65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A
only.
E. Cancellation:
1. For retirees/dependents eligible for paid Part A of Medicare, the following
cancellation provisions apply:
a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated
on the first day of the month in which the retiree reaches age 65. If such retiree
was covering dependents under the Plan, dependents will be eligible for COBRA
continuation benefits effective as of the retiree's 65th birthday.
b. Dependent coverage will be eliminated upon whichever of the following
occasions comes first:
1) After 36 months of COBRA continuation coverage, or
2) When the covered dependent reaches age 65 in the event such dependent
reaches age 65 prior to the retiree reaching age 65.
C. At age 65 retirees are eligible to make application for Medicare. Upon being
considered "eligible to make application," whether or not application has been
made for Medicare, the Retiree Subsidy Medical Plan will be eliminated.
2. See provisions under "Benefits," "Subsidies," and "Medicare" for those
retirees/dependents not eligible for paid Part A of Medicare.
3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-
payment of premium by means of a certified letter from Employee Benefits in
accordance with provisions of the Non -Associated Resolution.
4. A retiree who fails to pay premiums due for coverage and is in arrears for
sixty (60) days shall be terminated from the Plan and shall not have
reinstatement rights.
tem 4. - 40 �', to Non -Associated Resolution No. 2016-50 1 HB -66-
NON -ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS
EXHIBIT 3 - 9/80 WORK SCHEDULE
This work schedule is known as "9/80". The 9/80 work schedule is designed to be in compliance
with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict
with the current rules, practices and/or procedures regarding work schedules and leave plans, then
the rules listed below shall govem.
9/80 WORK SCHEDULE DEFINED
The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two
week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for
eight (8) hours (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in
each FLSA work week. The 9/80 work schedule shall not reduce service to the public,
departmental effectiveness, productivity and/or efficiency as determined by the City Manager or
designee.
A. Forty (40) Hour FLSA Work Week
The actual FLSA workweek is from Friday at mid -shift (p.m.) to Friday at mid -shift (a.m.).
No employee working the 9/80 work schedule will be able to flex their Friday start time nor
the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays.
All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the
FLSA workweek is 12:00 noon Friday.
B. Two Week Pay Period
The pay period for employees starts Friday mid -shift (p.m.) and continues for fourteen (14)
days until Friday mid -shift (a.m.). During this period, each week is made up of four (4) nine
(9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours
equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for
the a.m, shift, which is charged to work week one and four (4) hours for the p.m. shift, which
is charged to work week two).
C. A/B Schedules
To continue to provide service to the public every Friday, employees are to be divided
between two schedules, known as the "A" schedule and the "B" schedule, based upon the
departmental needs. For identification purposes, the "A" schedule shall be known as the
schedule with a day off on the Friday in the middle of the pay period, or, "off on payday", the
"B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on
payday", An example is listed below:
AMr`E_
''A
PM
"°z
AM
Pi1N
Schedule
4E
9
9
9
9
-
-
-
-
9
9
9
9
4
4
B Schedule
-
9
9
9
9
4
4
-
-
9
9
9
9
-
-
Exhibit "A" to Non -Associated Resolution No. 2016-50 j H Q -67-
11 Item 4. - 4
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
D. A/B Schedule Changes
FLSA exempt employees may change A/B schedules at the beginning of any pay period
with supervisor or City Manager approval.
E. Emergencies
All employees on the 9/80 work schedule are subject to be called to work any time to meet
any and all emergencies or unusual conditions which, in the opinion of the City Manager, or
designee may require such service from any of said employees.
LEAVE BENEFITS
When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9)
hours of eligible leave per workday shall be charged against the employee's leave balance or eight
(8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current
accrual, eligibility, request and approval requirements.
1. General Leave —As stated in the Non -Associated Resolution.
2. Sick Leave —As stated in the Non -Associated Resolution.
3. Executive Leave — As stated in the Non -Associated Resolution.
4. Bereavement Leave — As stated in the Non -Associated Resolution.
5. Holidays - As stated in the Non -Associated Resolution.
6. Jury Duty — The provisions of the Personnel Rules shall continue to apply, however, if an
FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday,
or Sunday, or on a City holiday, then the jury duty shall be considered the same as having
occurred during the employees day off work, therefore, the employee will receive no added
compensation.
tem 4. - 42 ]"to Non -Associated Resolution No. 2016-50 1 HB -68-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION
Guidelines
1. Purpose
The purpose of the voluntary catastrophic leave donation program is to bridge employees
who have been approved leave time to either return to work, long-term disability, or medical
retirement. Permanent employees who accrue vacation, general leave or compensatory
time may donate such leave to another permanent employee when a catastrophic illness or
injury befalls that employee or because the employee is needed to care for a seriously ill
family member. The leave -sharing Leave Donation Program is Citywide across all
departments and is intended to provide an additional benefit. Nothing in this program is
intended to change current policy and practice for use and/or accrual of vacation, general,
or sick leave.
2. Definitions
Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the
employee or an employee's family member.
Family Member - For the purposes of this policy, the definition of family member is that
defined in the Family Medical Leave Act (child, parent, spouse or domestic partner).
3. Eligible Leave
Accrued compensatory, vacation or general leave hours may be donated. The minimum
donation an employee may make is two (2) hours and the maximum is forty (40) hours.
4. Eligibility
Permanent employees who accrue vacation or general leave may donate such hours to
eligible recipients. Compensatory time accrued may also be donated. An eligible recipient
is an employee who:
• Accrues vacation or general leave;
• Is not receiving disability benefits or Workers' Compensation payments; and
• Requests donated leave.
5. Transfer of Leave
The maximum donation credited to a recipient's leave account shall be the amount
necessary to ensure continuation of the employee's regular salary during the employee's
period of approved catastrophic leave. Donations will be voluntary, confidential and
irrevocable. Hours donated will be converted into a dollar amount based on the hourly
wage of the donor. The dollar amount will then be converted into accrued hours based on
the recipient's hourly wage.
An employee needing leave will complete a Leave Donation Request Form and submit it to
the Department Director for approval. The Department Director will forward the form to
Human Resources for processing. Human Resources, working with the department, will
send out the request for leave donations.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 HB -(g-
i i Item 4. - 4
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Employees wanting to make donations will submit a Leave Donation Form to the Finance
Department (payroll).
All donation forms submitted to payroll will be date stamped and used in order received for
each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of
time from donors. Any donation form submitted that is not needed will be returned to the
donor.
6. Other
Please contact the Human Resources Department with questions regarding employee
participation in this program.
Item 4. - 44)"to Non -Associated Resolution No. 2016-50 1 HH -70-
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Voluntary Catastrophic Leave Donation Program
Leave Request Form
Requestor, Please Complete
According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request
donated vacation, general leave or compensatory time.
MY SIGNATURE CERTIFIES THAT:
• A Leave of absence in relation to a catastrophic illness or injury has been approved by my
Department; and
• I am not receiving disability benefits or Workers' Compensation payments.
Name: (Please Print or Type: Last, First, MI)
Phone:
!Department:
;Job Title�iEmployee ID#:
Signature:
partment Director Signature of Support:
i
i
x
Please submit this form to the Human Resources Office for processing.
Exhibit "A" to Non -Associated Resolution No. 2016-50 1 H B -71-
11 Item 4. - 4
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Voluntary Catastrophic Leave Donation Program
Leave Donation Form
Donor, please complete
;Donor Name: (Please Print or Type: Last, First, MI)
Work Phone:
.Donor Job Title
Type of Accrued Leave: Number of Hours I wish to Donate: €
'71 Vacation Hours of Vacation
_F] Compensatory Time Hours of Compensatory Time
❑ General Leave Hours of General Leave
I understand that this voluntary donation of leave credits, once processed, is irrevocable-,
but if not needed, the donation will be returned to me. I also understand that this
donation will remain confidential.
I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation
Program for:
Eligible recipient employee's name (Last, First, MI):
E
Donor Signature: Date:
Please submit to the Finance Department.
Res. No. 2016-50
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the duly appointed, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council of
the City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of
said City Council at a Regular meeting thereof held on July 18, 2016 by the
following vote:
AYES: O'Connell, Sullivan, Hardy, Delgleize
NOES: Posey, Peterson
OUT OF ROOM: Katapodis
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
HB -7;- Item 4. - 47