HomeMy WebLinkAboutGilbert Garcia - 2018-04-02Dept. ID HR 18-006 Page 1 of 2
Meeting Date: 4/2/2018
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CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 4/2/2018
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 Gilbert Garcia to the position of Chief Financial
Officer (CFO) and authorize the City Manager to execute the Employment
Statement of Issue: A national recruitment has been conducted for the position of Chief Financial Officer. The
City Manager is recommending the appointment of Gilbert Garcia to the position based on the outcome of the
recruitment process.
Financial Impact: Funding for this position is included in the FY 2017/18 adopted budget.
Recommended Action:
Approve and authorize the City Manager to execute the "Employment Agreement Between the City of
Huntington Beach and Gilbert Garcia" for the position of Chief Financial Officer.
Alternative Actionfs►: Do not approve the Employment Agreement of Gilbert Garcia for the position of Chief
Financial Officer and direct the City Manager to re -launch a national recruitment.
Analysis: The position of Chief Financial Officer has been vacant since October 2017 due to the promotion of
the former incumbent, Lori Ann Farrell -Harrison, to Assistant City Manager thereby creating the need to fill the
department head vacancy. Chuck Adams has served as the Interim Chief Financial Officer since October,
2017.
The City Manager authorized the Office of Human Resources to launch the recruitment for the Chief Financial
Officer in November 2017 utilizing the services of executive recruitment firm, Bob Murray and Associates. More
than 40 applications were received from candidates nationwide. Six (6) candidates were invited to interview.
The recruitment panel consisted of a panel of four comprised of a former City Manager, the Assistant City
Manager, the Police Chief, and the Interim Chief Financial Officer. Gilbert Garcia was one of two (2) finalist
candidates. The City Manager conducted follow-up interviews with each finalist, including interviews with
various Department Directors, and Gilbert Garcia was selected.
Gilbert Garcia has more than twenty years of experience in the area of Finance and Budget management. Most
recently, Gil served as the Finance and Technology Director for the City of Ventura. Gil served as the
Administrative Services Director for the City of Lincoln prior to his tenure with the City of Ventura. He served as
the Assistant Budget Director and Deputy Director in the City of Oakland from 2006 through 2014. Prior to Gil's
time in Oakland, he served in a variety of progressively responsible Accounting, Senior Analyst and Program
Manager positions within the City of Stockton from 1997 through 2006. Gil holds a Bachelor of Science Degree
in Business Administration from California State University -Fresno.
The City Manager recommends City Council approval to appoint Gilbert Garcia to the position of Chief Financial
Officer, effective April 23, 2018. The contractual compensation is recommended at Non-Associated/Executive
Management Pay Grade NA 0518, High Point. The annual salary is $208,270.
Item 12. - I HB -1010-
Dept. ID HR 18-006 Page 2 of 2
Meeting Date: 4/2/2018
Strategic Plan Goal:
Strengthen Economic and Financial Sustainability
Enhance and maintain City service delivery
Attachment(s):
1. Chief Financial Officer - Recruitment Brochure
2. Resume — Gilbert Garcia
3. Employment Agreement
4. Non -Associated Resolution — Resolution No. 2016-50
HB-1011- Item 12. - 2
ATTACHMENT #1
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INGr ti
cGUNTY
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As the fourth
largest city in Orange
County, Huntington Beach
is known as "Surf City USA'
THE COMMUNITY
due to its abundance of
The City of Huntington Beach is located on the beaches, sunny and warm
shore of the Pacific Ocean in northwestern Orange Mediterranean climate,
County, 40 miles south of Los Angeles and 90 miles and casual lifestyle.
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 USA' due to its abundance
of beaches, sunny and warm Mediterranean climate, and casual lifestyle.
Huntington Beach covers nearly 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 I I 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 Oronge 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 (including 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 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 a variety of events including the Breitling
H8 Air Show and professional sporting events such 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 city limits. The City has a world -class library
as well as four additional branch libraries, The University of California, Irvine and California
State Universities at Long Beach and Fullerton are located in close proximity.
There are over 80,000 households within the City. The median household income is $88,035
and ranks one of the highest in the nation. In 2015. the median home value was $642,900.
THE ORGANIZATION
The City of Huntington
Beach is organized into
13 major departments
including City Attorney,
City Clerk, City Manager, City Treasurer, Com-
munity Development, Community Services,
Finance, Fire, Human Resources, Information
Services, Library Services, Police, and Public
Works, The City has approximately 1,500 full
and part-time employees and a total budget
of approximately $345 Million.
In 2017, the Financial Times named Huntington
Beach as the 4th of 116 cities nationwide in
"Best Financial Shape." WalletHub ranked
Huntington Beach the 15th of 150 "Best Run
Cities in America." The City maintained its solid
AAA Credit Rating by Fitch Ratings and also
received unmodified (clean) audit opinion from
independent auditors for the FY 2015/I6
Comprehensive Annual Financial Report. The
City's Finance Department was awarded the
Government Finance Officers Association
"Excellence in Financial Reporting" for the 30th
consecutive year.
THE
DEPARTMENT
The Finance Department provides financial
management, oversight, monitoring, and re-
porting functions for the City's complex financial
resources. The Department accomplishes this
objective by providing budgetary oversight,
monitoring and preparation; purchasing and
procurement expertise; accounting and financial
reporting services; cashiering, accounts receivable
and collections services; payroll and accounts
payable services; and, utility billing and business
license customer service. The Department is
comprised of five (5) divisions; Administration;
Accounting Services; Budget Management;
Cashiering & Collections Services; and Fiscal
Services.
Administration Division — Finance Admin-
istration is responsible for the day-to-day oper-
ations of the Finance Department, The Chief
Financial Officer reviews operations to ensure
cornpliance with federal, state, and local laws,
as well as City regulations and financial policies.
Administration manages the annual operating
and capital budgets, long-term financial plan,
business enterprise system, citywide cost
allocation study, fixed asset inventory, financial
reporting, and annual audits.
Item 12. - 4
Accounting Services Division
The Accounting Services Division
consists of General Accounting,
Payroll, Accounts Payable, and
Financial Reporting. General
Accounting is responsible for
maintaining a system of intemal
control that preserves and
safeguards the City's assets.
Accounts Payable is responsible
for the processing of all City
obligations for purchased materials
and services. Financial Reporting prepar
the Comprehensive Annual Financial i
(CAFR), annual bond disclosures, and otnernnanaai
reports. Payroll is responsible for the processing of employee
paychecks, tax reporting, retirement plan payments, and maintenance of all relevant records
related to payroll.
Budget Management Division — The Budget Management Division is responsible for
assisting the City Council and Executive Management team in managing the City's resources,
developing and maintaining the City's long-range financial projections, and evaluating the fiscal
impact of legislative initiatives and judicial decisions effecting municipalities. Budget Management
coordinates the development and preparation of the annual budget. Routine revenue and
expenditure reports are prepared and provided to City management and the City Council to
assist with budget monitoring.
Cashiering & Collections Services Division —The Cashiering & Collections Services
Division is responsible for receiving, depositing, and collecting on behalf of the
City, all taxes, assessments, fees, and other revenues. Due to the significant
technological improvements in how payments can be received and made,
all fr t sto -and vendors
utility billing, tax management, purchasing,
reprographic and mail delivery services; and
provides highly responsible and complex
administrative support to the City Manager.
The position requires advanced knowledge and
expertise of municipal finance, budgeting, and
purchasing for the development and admin-
istration of programs designed to address
primary areas of City service: The incumbent
is expected to exercise independent judgment
in establishing efficient and effective financial
operations consistent with City Council policies
and administrative guidelines established by the
City Manager. This position vacancy is due to
the promotion of Lori Ann Farrell Harrison
to the Assistant City Manager.
CHALLENGES &
OPPORTUNITIES
PERS/OPES/Pension Cost Increases —
the City has adopted award -winning strategies
to reduce its OPEB and pension liabilities and
is recognized as a leader in the region for these
efforts. The CFO will need to work closely with
the City's independent actuary, CalPERS, and
other stakeholders to ensure the budget
is sufficientyfunded to support rising
pension costs and is forecasting
future payments accurately.
the Division is co nu y o enng new services o cu me
This division processes and records all revenues received at City Hall, as
The ideal candidate
Labor and Contracts —
well as all City off -site locations, and also ensures revenue is deposited
will be someone with The C' has eight em-
City g
a balance of technical skills
in a timely manner into the City's financial depository accounts. The
io ee bargaining units.
P Y g g
and personal attributes who
Division is responsible for disbursing all approved funds and processes
The CFO, in conjunction
1
is capable of leading the
all checks and electronic payments for the payment of goods and
v,J� the Budget Manager,
g g
Department toward
services approved in the budget and the City's financial system.
is responsible for the costing
Fiscal Services Division — Comprised of Procurement, Utility Billing,
established goals. of labor contracts and pro -
and Business License, the Fiscal Services Division provides billing for the
posals. As over 70 percent of the
purchase of goods and services, coordinates the competitive bidding process,
City's budget is comprised of labor
maintains the list of qualified vendors, and processes all utility start-ups and
costs, this is an essential function.
disconnections (e.g., water, sewer, etc,), The Division also licenses all individuals or Disaster Preparedness/Recovery — Ensur-
companies doing business in the City on accordance with the Huntington Beach ing business continuity in the event of a manmade
Municipal Code, and may issue permits on behalf of other City departments.
or natural disaster is key to the City's ability to
maximize cost recovery. Creating and enhancing
THEPOSITION
the City's cur -rent disaster cost recoveryand busi-
The Chief Financial Officer (CFO) serves at -will and is appointed by the City
ness continuity efforts will be a key responsibility
Manager. The CFO works under the administrative direction of the City
of this position.
Manager and serves on the City's Executive Management team. Under general
Succession Planning/Cost Training— Recent
direction of the City Manager, the CFO directs the financial operations of
demographic trends and the mass exodus of
the City, which include accounting, banking, budgeting, cash management,
Baby Boomers from the workplace will pose
Item 12. - 5 HB -1014-
significant challenges in the recruitment and hiring of qualified f nance personnel
inthe coming years. The CFO W1I need to work diligendyto hire high qualitytalent.
Work with the Finance Commission — The Finance Commission is
comprised of seven community members each appointed by the City Council,
The Finance Department works with the Finance Commission on matters
related to the annual budget and financial planning, and meets once a month.
Work with a dedicated and talented team —The Executive Team (ET) of the City
is comprised of 13 department heads, The CFO must workwith the ET and demonstrate
a collaborative and team oriented approach to help achieve the City's Strategic Plan goals,
THE IDEAL CANDIDATE
The City of Huntington Beach is seeking a dynamic, experienced professional with strong
collaborative leadership skills and demonstrated expertise in all areas of municipal finance
to lead the City's Finance Department, The ideal candidate will be someone with a balance
of technical skills and personal attributes who is capable of leading the Department in continually
promoting best practices and overall excellence. He or she will be fiscally conservative, creative
and innovative in his or her approach to problem -solving, and view challenges as opportunities.
The selected candidate will be highly organized, possess excellent oral and written communication
skills, and be able to multi -task and work in a fast -paced environment, An honest, open, and trans-
parent individual with a commitment to service and to developing and maintaining positive
working relationships with internal and external stakeholders is being sought.
The successful candidate will have knowledge of the principles and practices of public administration,'
including budget preparation and financial planning, purchasing, program analysis, and revenue
forecasting; accounting principles, practices and methods; public revenue resources; municipal
debt financing; ordinances, resolutions and laws affecting municipal financial operations; legislation
related to public agency finance, including grant accounting and bond issuances; report presentation;
personnel administration, supervision and training; financial management information systems;
principles and practices of cash collection and cash management,
Any combination of education and experience that has provided the knowledge, skills, and abilities
necessary forthis position is qualifying. Typically, a Master's degree from an accredited four-year
college or university with a major in Accounting, Finance, Business, or Public Administration,
including courses in advanced accounting, auditing, cost accounting, and business law, and six (6)
years of responsible executive -level financial experience including at least four (4) years in a
supervisory capacity, would provide such opportunity, Professional certification such as a
Certified Public Accountant (CPA) is not required, but preferred. Due to the performance of
field duties that may require the operation of a motor vehicle, a valid California driver's
license and a satisfactory driving record is required.
THE COMPENSATION
The salary range for the Chief Financial Officer is $168,105 — $208,270 annually;
placement within this range is dependent upon qualifications.
The City also offers an attractive benefits package
that includes:
Retirement — The City participates in the
California Public Employees' Retirement
System (CaIPERS) under- a 2.5% @ 55
Miscellaneous benefit formula for Classic
Members; Members contribute the 8%
employee share. New Members are
under a 2% @ 62 Miscellaneous benefit formula
and contribute a 6,25%employee share, The
City does not pay into Social Security; however,
all employees pay 1.45% towards Medicare,
Insurance — Health (medical/dental/vision),
life, and disability insurance is provided by the
City. IRS Section 125 medical and dependent
care reimbursement plan (FSA) is available,
Deferred Compensation — 457 plans
available.
Group Life Insurance — The City offers
$50,000 of life insurance coverage, with
employee option to purchase additional life
insurance.
Leave — General leave-176 hours per year
for the first five years of service —in lieu of
sick/vacation leave.
Executive Leave — 80 hours per calendar
year.
Auto Allowance — $500 per month.
If you are interested in this outstanding
opportunity, please visit our website at
www.bobmurrayassoc.com to apply online.
Filing Deadline:
January 19, 2018
Following the closing date, resumes will be
screened accordingtothe qualifications outlined
above. The most qualified candidates will be
invited to personal interviews with Bob Murray
and Associates. Finalist interviews will be held
with the City of Huntington Beach. References
will be contacted only following candidate
approval.
If you have any questions, please do not hesitate
to call Ms. Valerie Phillips at:
(916) 784-9080
BOB MURRAY
�\ & ASSOCIATES
' EXPERTS IN EXECUTIVE SEARCH
Item 12. - 6
ATTACHMENT #2
Gilbert A. Garcia
PROFESSIONAL SUMMARY
Twenty years of successful, progressively responsible experience in local government. Budgeting and financial
management responsibilities ranged from $2 million to $1 billion. Executive level management experience in full service
cities, including municipal utilities, and experience in managing contracted government services. Leader who is
outcome -oriented and achieves results through bridge -building, teamwork and performance accountability. Professional
experience has cultivated skills in the following areas:
Accounting
Capital Improvement Planning
Strategic Planning
Internal Control & Auditing
Public Agency Financing
Investment Portfolio Management
Employee Relations
PROFESSIONAL EXPERIENCE
CITY OF VENTURA
Finance & Technology Director, February 2015 to Present
Budgeting
Organizational Development
Communications Strategies
Leadership Development
Risk Management
Succession Planning
Technology Implementation
Direct the operations and services of the Finance & Technology Department, with administrative control over the
following functions: Budgeting, Treasury, Revenue Services, General Accounting, Payroll, Purchasing & Contract
Management, Information Technology, Reprographics, and mail service.
Responsibilities include:
• Fulfil the responsibilities of the Chief Financial Officer and City Treasurer
• General responsibility overfinfincial management, oversight, monitoring, and reporting for the City's financial
resources
• Plan, implement and administer a centralized, comprehensive financial services program, including debt
management, cash management and financial reporting
• Prepare and administerthe City's budget and Capital Improvement Plan
• Identify and implement creative and innovative strategies to foster revenue regeneration and cost savings
• Develop strategies to maintain the balance of the City's revenues and expenditures
• Ensure that the acquisition and implementation of new technology results in efficiencies and/or cost savings
• Serve as Chair of City's information Technology Steering Committee
Highlights and Accomplishments
• Completed, and presented to the City Council, the League of California Cities Municipal Financial Health Diagnostic
Tool
• Completed, and presented to the City Council, an analysis of the City's CalPERS obligations and recommendations for
managing the long-term budget impact
• Re-established the City's Investment Committee at the direction of the City Council and the City Manager
• Developed and implemented data -driven priori citywide self -assessment based on tools developed by the Center for
Priority Based Budgeting
• Completed the City's first Five Year General Fund Forecast since 2004
Item 12. - 7 HB -1016-
• Completed a department reorganization which resulted in increased efficiencies, greater internal controls and
enhanced revenue generation
• Engaged a consulting firm to complete an Information Technology Assessment and implemented several key
recommendations, including the establishment of an Information Technology Steering Committee
• Developed and implemented an investment strategy that increased annual interest earnings from $1,000,000 to
$1,800,000
CITY OF LINCOLN
Administrative Services Director, May 2014 to February 2015
Direct the operations and services of the Administrative Services Department, with administrative control over the
following functions: Budgeting, Treasury, General Accounting, Revenue Services, Payroll, Purchasing & Contract
Management, mail service, and information Technology.
Responsibilities include:
• Fulfil the responsibilities of the Chief Financial Officer and City Treasurer
• General responsibility over financial management, oversight, monitoring, and reporting for the City's financial
resources
• Plan, implement and administer a centralized, comprehensive financial services program, including debt
management, cash management and financial reporting
• Prepare and administer the City's annual budget and Capital Improvement Plan
• Develop strategies to maintain the balance of the City's revenues and expenditures
• Ensure that the City's accounting and financial records are maintained in accordance with the highest professional
and legal standards
• Represent City Management during labor negotiations
• Contracted out Information Technology services, which resulted in cost savings and increased service levels
CITY OF OAKLAND
Deputy Director, Police Department, 2009 to 2014
Oversee the Police Department Bureau of Services, which is comprised of the following divisions:
Fiscal Services, Information Technology, Human Resources, Communications (911), Records Management
Responsibilities include:
• Develop and implement policies and procedures to ensure that operating expenditures are in line with strategic
plans and goals
• Prepare and administer the department's operating budget of $200 million
• Ensure that the departmenfs accounting and financial records are maintained in accordance with professional and
regulatory standards
• Direct and monitor the procurement of all department grants
• Coordinate and participate in character review for all prospective police officers and dispatchers
• Respond to grievances and other employee relations matters
• Review administrative/internal affairs investigations and recommend appropriate discipline within the bureau,
pursuant to relevant policies and effective progressive discipline principles
• Evaluate the fiscal impacts of negotiated labor contract proposals
• Serve as department project sponsor for major technology projects
• Serve as a member of the 24/7 emergency response team as Finance and Administration Chief in the Emergency
Operations Center (EOC)
Assistant Budget Director, Budget Office, 2006 to 2009
• Assist with the preparation of the City's budget
• Guide and control the compilation and implementation of the capital improvement plan
HB - 10 17- Item 12. - 8
• Monitor departmental expenditures and citywide revenues, and recommend appropriate action to department
heads and city administration
• Prepare technical reports pertaining to citywide budget and finance administration
• Identify and analyze potential revenue sources and recommend proposals to secure new sources of revenue
• Recommend alternative methods to finance programs and capital improvements
• Manage the Budget Office in the absence of the Budget Director
CITY OF STOCKTON
Program Manager III, Budget Office, Office of the City Manager, 2004 to 2006
• Guide and control the compilation and implementation of the capital improvement plan
• Develop policies for budget monitoring and control
• Establish rates for internal service funds based on internal needs assessments and actuarial analysis
• Manage the public facilities fees program, and work with city planners to ensure that infrastructure is adequate to
support land development
• Complete cost -benefit analysis pertaining to the use of tax incentives, redevelopment funds, loans and other
strategies to attract and retain business
• Serve on the city's capital financing and debt policy teams
Principal Administrative Analyst, Public Works Department, 2002 to 2006
Chief Financial Officer for the Public Works Department with responsibility over grants management, accounts payable,
accounts receivable, budget development and implementation, and accounting services
• Establish fees for development services based on comprehensive analysis of the resources required to support the
city's entitlement process
• Direct and monitor the procurement of all department grants
• Financial planning and administration of the department's capital improvement project
Administrative Analyst 11, Police Department,1999-2002
Responsibilities include: Manage the False Alarm Reduction Unit; administer grants and contracts, perform complex
financial calculations and prepare financial reports; assist with the development of the department budget
Senior Accounting Office Assistant, Finance Department,1997 to 1999
Responsibilities include: Assist with the development and preparation of the Comprehensive Annual Financial Report
(CAFR); perform complex financial calculations and prepare financial reports; maintain accounting records in
conformance with generally accepted accounting principles (GAAP); maintain accounting records and prepare required
reports for federal, state, county, and other external funding sources in accordance with reporting requirements
California Society of Municipal Finance Officers (CSMFO)
Government Finance Officers Association (GFOA)
Major City Chiefs, Associate Member
International Association of Chiefs of Police (IACP)
EDUCATION
CSU Fresno, Bachelors of Science, Business Administration, 1996
Senior Management Institute for Police, Boston, 2012
Item 12. - 9 HB -1018-
ATTACHMENT #3
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND GILBERT GARCIA
THIS AGREEMENT is entered into this MA."
day of2018, between
the City of Huntington Beach, a California municipal corporation, hereinafter "City," and Gilbert
Garcia, hereinafter "Garcia."
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 Garcia as the, head
of the Finance Department as the Chief Financial Officer, of the City of Huntington Beach; and
The City seeks to provide certain benefits, establish certain conditions of employment,
and to set working conditions of Garcia; and
The City intends to:
(1) Secure, retain and employ the services of Garcia: and
(2) To provide a means for terminating Garcia's service; and
(3) Garcia intends to accept employment as Chief Financial Officer of the City;
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties agree as follows:
SECTION 1. DUTIES.
The City agrees to employ Garcia as Chief Financial Officer 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 duties and functions as the City Manager shall
from time to time assign. Garcia shall devote his full attention and effort to the office and
perform the mentioned duties and functions in a professional manner.
1
Gilbert Garcia Employment Agreement-2018
SECTION 2. STATUS AND TERM.
(a) Garcia shall serve for an indefinite term at the pleasure of the City Manager and
shall be considered an at -will employee of the City.
(b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of the City Manager to terminate the employment of Garcia 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 Garcia to resign at any time from his position with the City, subject only to the
provisions set forth in Section 6, subparagraph (d), of this Agreement.
(d) Garcia agrees to remain in the exclusive employ of City for an indefinite period of
time 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 Garcia'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 Garcia's time off, and with the advance approval of the City Manager.
SECTION 3. SALARY. City agrees to pay Garcia for his services rendered pursuant to this
Agreement at Range NA0518, High Point/Step E ($100.13/hourly) of the City's classification
and compensation plan or Resolutions or Ordinances from time to time enacted that govern such
compensation.
2
Gilbert Garcia Employment Agreement-20I8
SECTION 4. OTHER BENEFITS. A. Moving Expenses. City will reimburse Garcia
reasonable moving expenses pursuant to 26 U.S. Code, Section 217 (per IRS regulations) in an
amount not to exceed $5,000.
B. In addition to the foregoing benefits, Garcia shall also receive all such other benefits that are
generally applicable to non -associated employees (Department Heads) hired after 12/27/97, 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 Including The Elected City Attorney, City Clerk And City Treasurer ", a
copy of which is attached hereto as Exhibit "A" and incorporated by reference as frilly set forth
herein. The benefits provided to Garcia pursuant to this Section may be modified by the City
from time to time, upon adoption of a successor Resolution.
SECTION 5. ADMINISTRATIVE LEAVE.
The City Manager may place Garcia 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 Garcia, and during such time that Garcia is willing and able to perform his duties
under this Agreement, then City shall pay to Garcia a severance payment equal to salary
payments which Garcia would have been receiving over a twelve week period at Garcia'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 Garcia 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 Garcia and Garcia's dependents at the time of such
3
Gilbert Garcia Employment Agreement-2018
termination; however, no other or additional benefits shall accrue during this ninety (90)
calendar -day period.
(b)(1) Notwithstanding subsection (a) above, the following reasons shall constitute
grounds to terminate the employment of Garcia without severance pay:
(i) a willful breach of this agreement or the willful and repeated
neglect by Garcia to perform duties that he is required to perform;
(ii) conviction of any criminal act relating to employment with the
City;
(iii) conviction of a felony.
(2) Prior to the time that the City Manager terminates Garcia without
severance pay for any of the reasons set forth in Section (b)(1) above, and only in that case, the
City Manager shall provide Garcia with written notice of proposed termination which will
include the reason and factual basis for termination. Within ten days of such notice, Garcia 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, that Garcia may respond to the notice of proposed termination. At such
meeting, Garcia may be represented by an attorney of his 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 Garcia from its current level, except as part of an across-the-board reduction for all
Directors of City, or in the event City refuses, following written notice, to extend to Garcia any
non -salary benefit customarily available to all Directors, or in the event Garcia resigns following
a suggestion, whether formal or informal, by the City Manager that he resign, then, Garcia may,
at his option, be deemed to be "terminated". The termination date will occur then at the date of
4
Gilbert Garcia Employment Agreement-20IS
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 Garcia 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 Garcia
exercises the option to be deemed terminated.
(d) In the event Garcia voluntarily resigns his position, Garcia shall give City written
notice at least thirty (30) days prior to the last workday, unless the City Manager and Garcia
otherwise agree.
(e) It is understood that after notice of termination in any form, Garcia 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 Garcia is medically, physically disabled or otherwise unable to
perform his duties because of sickness, accident, injury, mental incapacity or ill health, and has
provided proof of the same from a medical professional, he shall be eligible for Disability Leave
upon exhausting all accrued sick leave, 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 Garcia. If Garcia is
unable to return to work at that time, the City shall have the option to terminate the employment
of Garcia, 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 Garcia at least once annually. That review and evaluation
shall be in accordance with specific criteria developed in consultation with Garcia and the City
5
Gilbert Garcia Employment Agreement-2018
Manager. Those criteria may be added to or subtracted from as the City Manager may from time
to time determine, in consultation with Garcia.
SECTION 9. GENERAL AND EXECUTIVE LEAVE
Garcia 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"). Garcia will be credited 80 hours of Executive Leave upon his first day of
employment. Thereafter, Garcia 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 credited;
unused Executive Leave may not be carried forward to the next calendar year or cashed out at
any time. Garcia will be credited 80 hours of General Leave upon his first day of employment.
General Leave shall be accrued in accordance with the appropriate provisions of the Non -
Associated Resolution. Garcia 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
Garcia's professional memberships as normally accorded to Department Heads. Garcia shall also
receive paid leave, plus registration, travel and reasonable expenses for short courses,
conferences and seminars that are necessary for his personal 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. Garcia shall report to the City Manager any
ownership interest in real property within the County of Orange, excluding personal residence.
Garcia shall also complete and file annually, Financial Disclosure 700 Forms. Also, Garcia shall
report to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in
value in a firm doing work for City or from which City intends to make a purchase. Such
6
Gilbert Garcia Employment Agreement-2018
reporting shall be made in writing by Garcia to the City Manager within ten (10) calendar days
of the execution of this agreement and within ten (10) calendar days of acquisition of that interest
in real property. Additionally, Garcia 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 Garcia against
actions, including but not limited to any: tort, professional liability claim or demand, or other non-
criminal legal, equitable or administrative action, arising out of an alleged act or omission occurring
in the performance of Garcia during the discharge of his duties as an employee/officer of the City,
other than an action brought by the City against Garcia, or an action filed against the City by
Garcia. The City shall pay the reasonable expenses for the travel, lodging, meals, and lost work
time of Garcia should Garcia be subject to such, should an action be pending after termination of
Garcia. The City shall be responsible for and have authority to compromise and settle any action,
with prior consultation with Garcia, and pay the amount of any settlement or judgment rendered on
that action. Garcia 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 herein shall constitute the entire Agreement between the parties.
(b) This Agreement shall become effective commencing April 23, 2018.
(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
Gilbert Garcia Employment Agreement-2018
IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on
its behalf by its City Manager, and Garcia has signed and executed this Agreement, both in
duplicate, the day and year first above written.
CITY:
City ager
GARCIA:
V14-i\NL
Gilbert G cia
Gilbert Garcia Employment Agreement-2018
ATTACHMENT #4
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 I
HB -1027- Item 12. - 18
PASSED AND ADOPTED by the , ity Council of t e City of Huntington Beach at a
regular meeting thereof held on the / Erday of e. 2016.
REVIEW APPROVED:
,;
City r
RLS 6/27/16/16-5325/138993/MV
Item 12. - 19
1- 4
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
W.M
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 It — 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.....................................................................................................6
F.
RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL
RETIREE SUBSIDY 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
Exhibit "A" to Non -Associated Resolution No. 2016-50
Item 25. - 5
HB -1029-
Item 12. - 20
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
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 .............................................
is
EXHIBIT 2 - RETIREE MEDICAL PLAN......................................................................16
EXHIBIT 3 - 9/80 WORK SCHEDULE..........................................................................
20
EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION .............................
22
1_114 to Non -Associated Resolution No. 2016-50 ii I
Item 12. - 21 HB -1030- Item 25. - 6
NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS
EXHIBIT A
SECTION I — PAY
A. Salary Schedule
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.
Item 25. - 7 "A" to Non -Associated Resolution No. 2016-50 H 13 -10 1 1- Item 12. - 22
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.
Item 12. - 23 . to Non -Associated Resolution No. 201&50 1113 -10 Item ZS. - 8
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 monthly group medical, dental and vision
plan premiums by category (EE, EE + 1, and EE + 2 or more) as outlined in sections
i and ii above
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).
Item 12. - 25"to Non -Associated Resolution No. 2016-50I IB -1034- Item 25. - 10
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.
Item 25. - I I "to Non -Associated Resolution No. 2016-50 HB -1035- Item 12. - 26
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 forithis 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
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.
Item 12. - 27"to Non -Associated Resolution No. 201&50 HB -1036- Item 25. - 12
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 CaIPERS 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" members by the
Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain
retirement program commonly known and described as the "3% at age 50 plan"
which is based on the retirement formula as set forth in the California Public
Employees' Retirement System (CalPERS), Section 21362.2 of the California
Government Code.
Item 25. - 13 to Non -Associated Resolution No. 2016-50 1113 -1017- Item 12. - 28
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 CaIPERS.
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.
Item 12. - 29"to Non -Associated Resolution No. 201&50HB_I038- Item 25. - 14
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 25. - 15 "to Non -Associated Resolution No. 2016-50 HR -10,9- Item 12. - 30
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 shal
to convert into a cash payment or deferred compensation up t
hundred -twenty (120) general leave benefit hours per fiscal year
shall give payroll two (2) weeks advance notice of their decision
option.
I have the option
o a total of one
The employee
to exercise such
Item 12. - 31 'to Non -Associated Resolution No. 2016-50 H B -1040-
Item 25. - 16
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 Pay 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.
Item 25. - 17"to Non -Associated Resolution No. 201650HB-104l- Item 12. - 32
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
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.
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 compensate 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
Item 12. - 33 ' to Non -Associated Resolution No. 2016-50 HB - t 042- Item 25. - 18
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).
Item 25. - 1 9„to Non -Associated Resolution No. 2016-50 HB - 1041- Item 12. - 34
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 (CalPERS) 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).
Item 12. - 35 "to Non -Associated Resolution No. 2016-50 HB _ 1044— Item 25. - 20
NON -ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS
EXHIBIT 1
NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE
EFFECTIVE SEPTEMBER 24, 2016 - 2.0% Increase
Job No.
Description
Pay
Starting
Control
High
Grade
Point
Point
Point
EXECUTIVE MANAGEMENT
0591 Cit Mana er NA0591 NA NA I 128.29
DEPARTMENT HEADS
0592
Assistant City Manager
NA0592
85.82
95.51
106.32
0009
Director of Building & Safety
NA0009
74.64
83.07
92.46
0014
Director of Community Services
NA0014
74.64
83.07
92.46
0008
Director of Economic Development
NA0008
74.64
83.07
92A6
0574
Director of Human Resources
NA0574
74.64
83.07
92.46
0479
Chief Information Officer
NA0479
74.64
83.07
92.46
0007
Director of Library Services
NA0007
69.94
77.85
86.66
0589
Community Development Director
NA0589
80.82
89.97
100.13
0010
Director of Public Works
NA0010
80.82
89.97
100.13
0518
Chief Financial Officer
NA0518
8&82
89.97
100.13
0015
Fire Chief
NA0015
85.82
95.51
106.31
0011
Police Chief
NA0011
85.82
95.52
106.31
ELECTED OFFICIALS
0016
ICity Attorney
NA0016
100.18
111.51
124.10
0017
Cit Clerk
NA0017
69.94
77.85
86.66
ELECTED OFFICIALS PART-TIME
L_ 0018 ICity Treasurer - PART-TIME I NA0018 11 74.64 1 1 83.07 I I 92.46
CONTRACT NON -DEPARTMENT HEAD
Job No.
Description
I
ay
Grade
A
B
C
D
E
0593
IChief Assistant City Attorney
NA0593
11 71.05
74.96
79.08
83.43
88.01
Historical changes to Non -Associated position titles:
Per Ordinance 3855 adopted on 1/19/10, Building & Safety Department duties were combined with the Planning
Department creating a new position of Director of Planning and Building,
Per Resolution 2010-106 adopted on 12/20/10 the City Treasurer was established as a part-time position.
Per Ordinance 3906 adopted on 2/7/11 amended the title of City Administrator to City Manager.
Per Ordinance 3959 adopted on 10/01/12, the position of Chief Assistant City Attorney was established.
Per Resolution 2012-95 adopted on 12/17/12 the title of Deputy City Manager was changed to Assistant City Manager.
Per Ordinance 4086 adopted 4/18/16: the position of Finance Director was changed to Chief Financial Officer, the Director
of Information Services was changed to Chief Information Officer and the Director of Planning and Building was changed to
Community Development Director.
Item 25. - 21 "to Non -Associated Resolution No. 2016-50 flB -104 5- Item 12. - 36
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.
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
2.
KI
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.
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.
Marital Status — Married retirees eligible for benefits under the Retiree Medical
Subsidy Plan may each receive the benefit earned pursuant to Section 4 —
Item 12. - 37"to Non -Associated Resolution No. 2016-50 HB -]046-
Item 25. - 22
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
Item 25. - 23 . to Non -Associated Resolution No. 2016-50 H B -1047- Item 12. - 3 8
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.
b. HMO.
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.
Item 12. - 39"to Non -Associated Resolution No. 2016-50 HB -101n- Item 25. - 24
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.
Item 25. - 25' to Non -Associated Resolution No. 2016-50 HB -1049- Item 12. - 40
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 govern.
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:
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Item 12. - 41 "to Non -Associated Resolution No. 2016-50 HB - 1050-
Item ZS. - 26
NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
D. A/B Schedule Chances
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.
Item 25. - 27 "to Non -Associated Resolution No. 2016-50 HB -105 1 - Item 12. - 42
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.
Item 12. - 43'to Non -Associated Resolution No. 2016-50 HB -1052- Item 25. - 28
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 25. - 29 ' to Non -Associated Resolution No. 2016-50 HB -1053- Item 12. - 44
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
• 1 am not receiving disability benefits or Workers' Compensation payments.
ame: (Please Print or Type: Last, First, MI)
Work Phone:
Employee ID#:
uester Signature:
rtment Director Signature of Support:
Human Resources Department Use O
End donation date will bridge to:
❑ Long Term Disability
❑ Medical Retirement beginning
❑ Length of FMLA leave ending
❑ Retum to work
_ _ Human Resources Director Signature:
donation date:
Date signed:
Please submit this form to the Human Resources Office for processing.
Item 12. - 45"to Non -Associated Resolution No. 2016-50 I Ili _ rt: -. lterrl 25. - 30
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)
i
Work Phone:
Donor Job Title:
Type of Accrued Leave: Number of Hours I wish to Donate:
IF Vacation iHours of Vacation
flCompensatory Time I Hours of Compensatory Time
'F� General Leave i 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):
Donor Signature: Date:
Please submit to the Finance Department.
Item 25. - 3I "to Non -Associated Resolution No.207650HB -I055- Item 12. - 46
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
i 11
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
Item 12. - 47 Hli -Inx;-