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Home My WebLink AboutNon-Represented Non Associated Employees - 2007-12-17CITY OF HUNTINGTON BEACH MEETING DATE: DEPARTMENT ID NUMBER: AD 10-004 Council/Agency Meeting Held: Deferred/Continued to: p ov d and ti n p oved ❑ Denied - C y le k Sign re Council Meeting Date: 1/19/10 Department ID Number: AD 10-004 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COU MEMBERS SUBMITTED BY: FRED A. WILSON, CITY ADMINISTR PREPARED BY: PAUL EMERY, DEPUTY CITY ADMIN ATOR SUBJECT: Non -Represented Employees Resolution Modifications Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The proposed Resolution will amend Section IV.A.2 Self - Funded Supplemental Retirement Benefit in the Non -Associated Pay and Benefits Resolution. On December 21, 2009 the Non -Represented Employees Resolution modification was modified, including the selection options of the Public Employee Retirement system. Inadvertently, two lines were added and one was deleted regarding the eligibility of employees. The proposed amendment corrects the eligibility statement as it relates to this benefit consistent with approved resolution No. 2009-19. Funding Source: There is no funding required by this action. Recommended Action: Adopt Resolution Ncp.010-06, A Resolution of the City Council of the City of Hu'htington Beach Modifying Salary and Benefits for Non -Represented Employees. Alternative Action(s): Do not adopt the Resolution and direct staff accordingly. 1/12/2010 10:46 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: AD 10-004 Analysis: The proposed Resolution will modify Exhibit "A' of Resolution 2009-89, Non — Associated Employees Pay and Benefit Resolution, regarding Supplemental Retirement Benefit options. On March 16, 2009 the City Council approved Resolution No. 2009-17 (attachment 2) providing clarification on the Self Funded Supplemental Retirement Benefit for Non — Associated Employees. The amendment identified eligibility to employees hired before August 17, 1998. When the City Council approved the amended Non -Represented Resolution on December 21, 2009 the eligibility date was inadvertently removed and the benefit was extended to all employees covered by the resolution. This language change was an error as a result of merging documents and was unintended. The proposed Resolution takes the language approved in the side letter as it relates to eligible employees and applies it to the non -represented resolution, correcting the error. This correct language is provided in Section IV.A.2 "Self Funded Supplemental Retirement Benefit" on page nine of the resolution. There is no fiscal impact of this action. Environmental Status: N/A Attachment(s): 1 /12/2010 10:46 AM EL a E RESOLUTION NO. 2010-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR NON -REPRESENTED EMPLOYEES WHEREAS, the City Council of the City of Huntington Beach desires to modify 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: 1. Salaries and benefits for Non -Represented employees shall be as reflected in Exhibit A, attached hereto and incorporated by this reference. 2. Except as modified herein existing benefits shall remain in effect. 3. Any resolution in conflict herewith, whether by minute action or resolution of the City Council heretofore approved, is hereby repealed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19 th day of January , 2010 M REVIE IVND APPROVED: INITI AN APPROVED: City i istrator Director of H an Resources APPROVED AS TO FORM: 1-'t 9A�" //// 4/0 City Attorney 07-1375M2/42724 Exhibit "A" — Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT A- NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISION...................................................................................................1 SECTIONI PAY.......................................................................................................................1 A. SALARY SCHEDULE.............................................................................................................................. I B. DIRECT' DEPOSIT..................................................................................................................................1 C. ASSIGNED VEHIc LE/AUTO ALLOWANc E........................................................................................1 1. Department Heads........................................................................................................................................................1 SECTION II — HOURS OF WORK/OVERTIME/TIME OFF............................................1 A. EXECUTIVE LEAVE..............................................................................................................................1 B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES.........................................................................1 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.........................................................................................................................................................7 4. Section 125 Plan ............................................................................................................................................................7 B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE.........................................7 C. LONG-TERM DISABILITY INSURANCE...............................................................................................7 D. CITY -PAID PHYSICAL EXAMINATIONS..............................................................................................8 E. MISCELLANEOUS..................................................................................................................................8 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREESUBSIDY PLAN...................................................................................................................... 8 G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE........................................................................... 8 SECTION IV— RETIREMENT.............................................................................................9 A. BENEFITS...............................................................................................................................................9 1. Public Employees' Retirement System.....................................................................................................................9 2. Self -Funded Supplemental Retirement Benefit.......................................................................................................9 3. Medical Insurance for Retirees...................................................................................................................................9 4. 2.5 Percent at Age 55 Formula...................................................................................................................................9 5. Three Percent (3%) at Age 50 Formula..................................................................................................................10 6. Pre -Retirement Optional Settlement 2 Death Benefit.........................................................................................10 7. Fourth Level of 1959 Survivor Benefits.................................................................................................................10 8. Plan Requirements.........................................................................................................................................................9 9. Eligibility Defined..........................................................................................................................................................9 10. Employee Contributions.............................................................................................................................................9 11. Leave Payout..................................................................................................................................................................9 12. Participant Account....................................................................................................................................................10 12. Administrative Fees....................................................................................................................................................10 14. Dispute Resolution................................................................................................................................................I....10 15. Indemnification...........................................................................................................................................................10 VEBA Attachment A to Resolution 07-1375.001/42723 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING....................11 1. Employees' Contribution...........................................................................................................................I..............11 SECTION V -LEAVE BENEFITS.......................................................................................11 A. GENERAL LEAVE................................................................................................................................11 1. Accrual..........................................................................................................................................................................10 2. Eligibility and Approval............................................................................................................................................11 3. Leave Benefit Entitlements......................................................................................................................................12 4. Conversion to Cash....................................................................................................................................................12 B. HOLIDAYS AND PAY PROVISIONS....................................................................................................13 C. SICK LEAVE.........................................................................................................................................13 I. Accrual.............................................................................................. ...................12 ......................................................... 2. Credit..........................................................................................................................................................................1.12 3. Usage.............................................................................................................................................................................12 4. Payoff at Termination................................................................................................................................................12 D. BEREAVEMENT LEAVE......................................................................................................................14 E. VOLUN'T'ARYCATASTROPHICLEAVEDONATIONPROGRAM......................................................13 SECTION VI - RETIREE SUBSIDY MEDICAL PLAN ..................................................... 14 SECTION VII - MISCELLANEOUS....................................................................................14 A_ COLLECTION OF PAYROLL OVERPAYMENTS.................................................................................14 B. UNIFORMS AND CALPERS REPORTING.........................................................................................14 EXHIBIT 1- NON -ASSOCIATED SALARY SCHEDULE.................................................15 EXHIBIT 2 - RETIREE MEDICAL PLAN..........................................................................18 EXHIBIT 3 - 9/80 WORK SCHEDULE............................................................................... 21 EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION .............................24 VEBA Attachment A to Resolution 07-1375.001/42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS EXHIBIT A SECTION I — PAY A. Salary Schedule 1. All current Non -Associated employees shall receive the salaries as identified in Exhibit 1, except for those elected employees 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 Administrator 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 Administrator 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 maybe set above the control point at anytime 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 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. 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. 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 forry (40) hours in each FLSA designated work week The 9/ 80 work schedule shall not Non Associated Final 12/17/07 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. 3. Alternative Work Schedule Non -associated employees may elect any alternative work schedule approved by the City Administrator or designee. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A Health Insurance 1. Medical, Dental and Vision Insurance The City shall continue to make available group medical, dental and vision benefits 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 fast 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. 42723 2 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i. Health Plan Employee and Employer Contributions Chart for Classifications in EXI-IIBIT 1 Employer Contributions effective January 16, 2007 — December 31, 2007 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2008 Health Premiums and Contributions Effective 1/1/2008 — 12/31/2008 42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION ii. "Safety Member" Health Premiums — Employer Contribution Employees that are classified as "safety member" by the California Public Employees' Retirement System (CalPERS) may have access to the medical plans offered by CalPERS as contracted by the City. In accordance with eligibility provisions, the Police Chief and the Fire Chief may elect to enroll in the CalPERS health insurance program offered by the City. The City's maximum monthly employer contributions for the CalPERS health insurance program is set forth in the chart below. The amounts listed below include the mandated Public Employees' Medical and Hospital Care Act (PEMHCA) contribution. Employer contribution rates effective January 16, 2007 — December 31, 2007 42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Plan :.. \ TierPxeum ✓ o b `°'' 1?.. dntlsT tnb z EE B GorsYi a Single 393.63 301.43 92.20 42.55 PERS Two -Party 787.26 611.06 176.20 81.32 Kaiser Famil y 1,023.44 792.20 231.24 106.73 PERS Single 447.97 301.43 146.54 67.63 Two -Party 895.94 611.06 284.88 131.48 Blue Shield HMO Famil 1,164.72 792.20 372.52 171.93 r _MUa Single 401.98 301.43 100.55 46.41 PERS Two -Party 803.96 611.06 192.90 89.03 Blue Shield NetValue Fam ly 1,045.15 792.20 252.95 116.75 Single 458.59 411.15 47.44 21.90 PERS Choice Two-P 917.18 772.48 144.70 66.78 Famil 1,192.33 936.47 255.86 118.09 Single 712.71 411.15 301.56 139.18 PERS Two -Patty 1,425.42 772.48 652.94 301.36 Care Famil 1,853.05 936.47 916.58 423.04 im �.. PERS Select Single 444.05 411.15 32.90 15.18 Two -Party 888.10 772.48 115.62 53.36 Family 1,154.53 936.47 218.06 100.64 Single 452.00 4H.15 40.85 18.85 Two -Party 847.00 772.48 74.52 34.39 PORAC Family 1,076.00 936.47 139.53 64.40 Single 316.16 301.43 14.73 6.80 Two -Party 692,38 611.06 81.32 37.53 Kaiser Famil 910.54 792.20 118.34 54.62 RK&EVIMEW Single Iwo 1 388.83 301.43 87.40 40.34 Blue Shield HMO Two-Pany 847.37 611.06 236.31 109.07 Famil 1,096.88 792.20 304.68 140.62 Blue Shield PPO Consolidated Single 507.93 411.15 96.78 44.67 Two-Pany 1,073.84 772.48 301.36 139.09 Family 1,330.81 936.47 394.34 182.00 Single 57.86 45.02 12.84 5.93 Two-Pany 108.02 85.91 22.11 10.20 Delta Dental PPO Family 142.36 122.18 20.18 9.31 r Single 24.87 24.15 0.72 0.33 Two -Party 42.29 41.07 1.22 0.56 Delta Care HMO Famil 64.67 62.80 1.87 0.86 Single 22.93 18.46 4.47 2.06 Two -Party 22.93 18.46 4.47 2.06 VSP Family 22.93 18.46 4.47 2.06 lo}w and Ctty mntnhei w az to ovange 42723 6 NO. 2UIU-UO 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 employee and employer contributions rates set forth in sections ii and iii above shall remain in effect in 2009 and beyond unless otherwise modified by successor Non -Associated Resolution. 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), they may elect to discontinue City medical coverage and receive one hundred forty-six dollars, ($146.00) 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 salaryto 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 Dis abdity Insurance This program provides for each incident of illness or injury, 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). 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 rgdar ocVation during tuo )em and dx-rwfter the inabdity to engage in any errployrarnt or omVatior; for vAd) he/she is fated by reason of educatiory trairnrg or expo " 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. 42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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: 1. 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. 4. 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 City Medical Retiree Subsidy 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 Citys 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. 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 42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 fist 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 City -sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for this insurance. SECTION IV— RETIREMENT A Benefits 1. Public Employees' Retirement S, t�s em Non -Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. 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 Citys obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the City's group health insurance program at the equivalent of the City's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an altemative to the benefit described in paragraph IV.A.3.a above, the City will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. 4. PERS 2.5% (&- 55 If all other affected units agree, and subject to a formal ratification vote conducted by PERS, the City shall implement PERS 2.5% @ 55 retirement formula, effective as soon as possible. Effective the beginning of the first payperiod following implementation through December 26, 42723 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2008, the employees shall pay all of the additional costs to implement 2.5% @ 55 retirement formula. Effective December 27, 2008, and thereafter, the employees shall paytwo and one -quarter percent (2.25%) of the employee share of PERS. 5. Three Percent (3%) at Age 50 Formula Non -Associated employees classified as "safety' employees are covered by the three percent at age 50 formula (3% as 50) as identified in Section 21362.2 of the California Government Code. "Safety' employees hired after December 1, 2009 shall pay two and one -quarter percent (2.25%) of the employee's share of PERS. 6. 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. 7. Fourth Level of 1959 Survivor Benefits Non -Associated employees shall be covered bythe Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 of the California Government Code. 8. 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. 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 bythe 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 bythe Internal Revenue Code Section 213. e. Administrative Fees Any Plan administrative fees will be deducted from interest on the total Plan investments. 42723 10 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 ansing from an employee's participation in VEBA or from any salary reduction initiated by the City for VEBA contributions. B. Public Employees' Retirement System Reimbursement and Reporting Employees' Contribution Non -Associated employees shall be reimbursed bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution or portion of such contribution to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 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: 11 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 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. Eligibilityand 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. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred forty (640) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Leave Benefit Entitlements The City shall comply with all State and Federal leave benefit entitlement laws. An eligible employee on an approved leave shall be allowed to use applicable earned Sick Leave, General Leave, or Executive Leave for family or personal health issues. For more information on employee leave options contact the Human Resources Department. 4. Conversion to Cash a. Pay Off at Termination An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. b. Conversion to Cash Two times during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred -twenty (120) general leave benefit hours per fiscal year. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. One Week Minimum Vacation Requirement The City Administrator 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. 42723 12 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. Holidays and Pay Provisions 1. Non -Associated employees shall receive the following legal holidays as of the fast 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 Duly 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. 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 Terniination a. Non Associated employees with continuous service with the City since November 20, 1978, shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, p]t s 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. 42723 13 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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, fast out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non -Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established bythis 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 compensabl 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 is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by72 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 6. 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. 42723 14 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 bynon-authorized personnel. The interpretation of all pay provisions shall be administered by the City Administrator or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05). B. Uniforms and CaIPERS 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). 42723 15 Resolution No. 20 t0-06 NON -ASSOCIATED EMPLOYEE PAY ARID BENEFIT PROVISIONS EXHIBIT 1 NON -ASSOCIATED EXEC'U rIVE MANAGEMENT SALARY SCT-IEDULE EFFECTIVE DECEMBER, 2009 Job Description Pay Start Type Grade 12/09 ing Point Control Point High Point 0510 De u City Administrator 715 $77.17 $85.89 $95.59 0009 Director of Building &Safe 693 $69.15 $76.96 $85.66 0014 Director of Corninunity Services 709 $74.88 $83.35 $92.77 0008 Director of Econ Development 693 $69.15 $76.96 $85.66 0574 Director of Human Resources 693 $69.15 $76.96 $85.66 0479 Director of Info Services 693 $69.15 $76.96 $85.66 0007 Director of Libr Services 680 $64.80 $72.12 $80.28 0021 Director of Planning and Building 709 $74.88 $83.35 $92.77 0010 Director of Public Works 709 $74.88 $83.35 $92.77 0518 Finance Director 709 $74.88 $83.35 $92.77 0015 Fire Chief 721 $79.51 $88.49 $98.50 0011 Police Chief 721 $79.51 $88.49 $98.50 0016 City Attorney 752 $92.81 $103.30 $114.97 0017 Cit Clerk 680 $64.80 $72.12 $80.28 0018 City Treasurer 693 $69.15 $76.96 $85.66 Resolution No. 2010-06 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 anyone of the following: On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City's medical plans shall be governed by applicable plan document. 2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits begins after an employee has completed ten (10) years of continuous full time service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 42723 17 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 3. 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 bythe 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 42723 18 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION NUSCELLANEOUS PROVISIONS A. Eligibility: 1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the fast of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Administrative Services 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. Retiree Subsidy Medical Plan includes Managed Health Network (MI -IN, Prescription Card. System (PCS), Orange County Foundation for Medical Care (OCFMC) and Medical Stop Loss insurance. 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 subsidypayments will payfor: a. 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. D. Medicare: a. Part B Medicare. b. Regular City Employee Indemnity Plan. c. Any other employee benefit plan. d. Any other commercially available benefit plan. e. Medicare supplements 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 bythe participant. 42723 19 Resolution No. 2010-06 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. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from Employe 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 reiristatement rights. 42723 20 Resolution No. 2010-06 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 bythe City Administrator or designee. A. Forty(4O) 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: PM Associated Final 12/17/07 21 AMPM �� . .. TAM ; F F1M_ � T W Th F F S S` lvI T �` Th F F A Schedule 4 4 - - 9 9 9 9 - - 9994 4 B Scheule -9 9 9 9 4 4 J - 9 9 9 9 - - NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. A/B Schedule Changes FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor or City Administrator 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 Administrator, 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. 42723 22 Resolution No. 2010-06 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 f orty (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. Employees wanting to make donations will submit an Authorization for Donation to the Human Resources Division (payroll). 42723 23 Resolution No. 2010-06 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. 42723 24 Resolution No. 2010-06 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 compens atory time. MY SIGNATURE CERTIFIES THAT: • A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and • I am not receiving dis ability benefits or Workers' Compensation payments. ame: (PleasePmz or Type• Lase Find MI) ....::. equester Signature: Please submit this form to the Human Resources Department. Resolution No. 2010-06. NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor Job Title: I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation Program for: (Eligible recipient employee's name (Last, First, MI): E .... jDonor Signature. Please submit to the Human Resources Department. .._ Date. 42723 26 T-T `VOWTi7![�aiZ STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on January 19, 2010 by the following vote: AYES: Carchio, Hardy, Green, Bohr, Dwyer, Hansen NOES: None ABSENT: Coerper ABSTAIN: None y Clerk and ex-offic Clerk of the City Council of the City of Huntington Beach, California Ps Nk.. . . .... .... LEI', RESOLUTION NO. 2009-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE RESOLUTION BETWEEN THE CITY AND THE NON -ASSOCIATED EMPLOYEES REGARDING SUPPLEMENTAL RETIREMENT BENEFIT OPTIONS WHEREAS, the City Council of the City of Huntington Beach adopted Resolution No. 2007-89 for the purpose of modifying the salary and benefits for Non -Associated employees (NA), NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Effective 6/16/08 , Section IV A.2. of Resolution 2007-89 between the City's Non Associated employees and the City of Huntington Beach is hereby amended to read as follows: Self Funded Supplemental Retirement Benefit In the event a Non -Associated employee member elects Option #1, #2, #2W, 93, #3W or 94 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. SECTION 2. Except as modified, existing benefits shall remain in effect. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of March , 200 9 . Mayor REVIE)3ZD/AND APPROVED: of Hum —an Resources / kA.PPROVED AS TO FORM: Attorney D cl 26360 INITIATING DEPARTMENT: ADMINISTRATION SUBJECT: NON -REPRESENTED EMPLOYEES RESOLUTION COUNCIL MEETING DATE: January 19, 2010 RCA ATTAC H E NT STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached Not Applicable ❑ (Signed in full by the City Attorney) Subleases, Third Party Agreements, etc. Attached Not Applicable ❑ (Approved as to form by City Attorney) Certificates of Insurance (Approved b the City Attorne ( pp Y Y Y) Attached Not Applicable ❑ Fiscal Impact Statement (Unbudget, over $5,000) Attached Not Applicable ❑ Bonds (If applicable) Attached Not Applicable ❑ Staff Report (If applicable) Attached Not Applicable ❑ Commission, Board or Committee Report (If applicable) Attached Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached Not Applicable ❑ EXPLANATION FOR -MISSING ATTACHMENTS: REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) ( ) ( ) Citv Clerk ( ) EXPLANATION FOR RET4J, M: ; RN��OF tTE RCA Author: EMERY Council/Agency Meeting Held: c / a-00 Deferred/Continued to: �App ved ❑ Conditionally Approved ❑ Denied Cler Signal re Council Meeting Date: 12/21/09 Departm ID Number: 09-034 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COON MEMBERS SUBMITTED BY: FRED A. WILSON, CITY ADMINISTR REPARED BY: PAUL EMERY, DEPUTY CITY ADMINI TOR ,� SUBJECT: Voluntary Employees Beneficiary Association Adoption Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The proposed Resolutions adopt the Voluntary Employees Beneficiary Association (VEBA) Plan Document and Master Trust Benefits for Non -Represented employees. The VEBA provides health and welfare benefits permitted under section 501 c (9) of the Internal Revenue Code including the payment of employee health care related costs. Funding Source: There is no funding required by this action. Recommended Action: 1) Adopt Resolution No. 2009-87A Resolution of the City Council of the City of Huntington Beach Adopting the Voluntary Employees Beneficiary Association Plan Document for Non -Represented Employees, and 2) Adopt Resolution N02009-88 , A Resolution of the City Council of the City of Huntington Beach Adopting the Voluntary Employees Beneficiary Association Restated Master Trust Benefits for Non -Represented Employees, and 3) Authorize the City Administrator to execute all related documents in furtherance thereof. Alternative Action(s): Do not adopt the recommended action and direct staff accordingly. REQUEST FOR ACTION MEETING DATE: 12/21/09 DEPARTMENT ID NUMBERJS 09-034 Analysis: Via a separate Council item on the City Council agenda December 21, 2009/ the City Council is requested to amend the Non -Represented Resolution regarding benefits for non -represented employees. Among the items under consideration is the establishment of a Voluntary Employees Beneficiary Association (VEBA) for post employment health related costs. The proposed language within the Non -Represented Resolution would extend the benefit of the VEBA to Unrepresented Management Employees with 25 years of continuous service to the City of Huntington Beach. The plan would require each eligible employee to designate all leave payouts to be rolled into the VEBA Plan account upon separation. The proposed Resolutions presented herein provide the mechanisms for the adoption of a VEBA for certain non -represented employees as indicated in the proposed amendments to the Non -Associated Resolution. The VEBA Plan account would allow for payment of premiums to a medical benefit or health insurance program as permitted under section 501c (9) of the Internal Revenue Code. This would permit non -represented employees with 25 years of continuous service to re -direct any unused leave accruals into a tax exempt trust account for health related expenses at time of separation from city service. This program does not amend the methodology under which the City calculates and pays these unused leave accruals, it only allows the separating employee the ability to utilize these resources for health care related expenses through the VEBA trust. There is no fiscal impact to the City based on this action. Environmental Status: N/A Attachment(s): 1. Resolution No2009-$7A Resolution of the City Council of the City of Huntington Beach Adopting the Voluntary Employees Beneficiary Association Plan, Document for Non -Represented Employees 2. Resolution N02009-88 A Resolution of the City Council of the City of Huntington Beach Adopting the Voluntary Employees Beneficiary Association Restated Master Trust Benefits for Non -Represented Employees -3- 12/14/2009 10:22 AM ATTACHMENT #1 RESOLUTION NO. 2009-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE VOLUNTARY EMPLOYEES BENEFICIARY ASSOCIATION PLAN DOCUMENT FOR NON -REPRESENTED EMPLOYEES This Plan is adopted as restated as of December 23, 2009 by the City of Huntington Beach (the "Plan Sponsor") and, together with the trust established to hold the assets of the Plan, evidences the Voluntary Employees' Beneficiary Association established by the Plan Sponsor for the benefit of its eligible employees; and The Plan Sponsor wishes to establish a comprehensive integrated program under which the Plan Sponsor, other Plan Sponsors, and collective bargaining units can negotiate for a variety of health and welfare benefits for its Employees; and Such comprehensive program, known as the California Government Voluntary Employee Beneficiary Association was implemented to effect economics of scale through the commingling of assets for investment purposes and centralizing of administrative services to provide the Plan Sponsors with a cost effective vehicle through which to offer benefits to their Employees; and It is the intent of the Plan Sponsor to establish a voluntary employees' beneficiary association ("VEBA") Plan as an integral part of California Government Voluntary Employees' Beneficiary Association Trust; and The Plan Sponsor will provide for a Trust to hold he funds of the VEBA for the benefits specified in this Plan under and in accordance with this Plan; and The Plan Sponsor intends that the Plan hereby established, when taken together with the Trust, shall constitute a voluntary Employees' beneficiary association under Section 501(c)(9) of the Internal Revenue Code of 1986, as amended (the "Code"), NOW, THEREFORE, in consideration of the foregoing, the Plan Sponsor adopts the following plan: Kcdesktop Resolution No. 2009-87 Article I Name & Documents 1.1 Name. The name of this Plan shall be the California Government- VEBA Plan (the ) "Plan' . It is established pursuant to the provisions of Code Section 501 (c)(9), and together with the Trust adopted to fund the benefits evidences the Plan Sponsor's intent to form a VEBA. 1.2 Plan Documents. This Plan, together with the Trust Agreement shall _constitute the entire Plan. This Plan document together with such documents attached as Schedule A, shall compose the entire plan. -2- Resolution No. 2009-87 Article H Definitions 2.1 "Beneficiary": A person or persons who are entitled to receive benefits under the Plan following the death of the Member and who are identified in a form prescribed by the Trust Administrator. 2.2 "Contributions": Amounts deposited in the Trust pursuant to the terms of this Plan. 2.3 "Effective Date": The Effective Date shall be the date the Plan and Trust are adopted by the Plan Sponsor. 2.4 `Employee": Any employee of the Plan sponsor. 2.5 "Individual Account": An account as described in Article VI. 2.6 "Plan Sponsor": Any public agency or political subdivision thereof which has adopted and not terminated a Plan and Trust as part of the California Government VEBA. 2.7 "Member": Any of the following persons who meet the eligibility requirements provided in the Plan: 2.7.1 An actively employed Employee. 2.7.2 An inactive Employee. 2.73 A retired former Employee. 2.7.4 A. dependent of an active, inactive, or retired Employee who is a Member including the Employee's spouse; a minor child residing with the Employee; a child of the Employee who is a student within the meaning of Code Section 151(e) (4); any other person who is a dependent of the Employee within the meaning of Code Section 152(a). 2.7.5 A beneficiary of an active, inactive or retired Employee who is or was a Member. 2.7.6 "Inactive Employee" means: An Employee who, although not actively employed by the Plan Sponsor, retains eligibility for benefits. 2.9 . "Plan Administrator": The individual, position or organization designated by the Trustee to act in matters relating to the administration of the Plan and its Documents. 2.10 "Trust Administrator.": The entity appointed by the Trustee to perform the duties listed herein. 2.11 "Trustee": The Trust Committee appointed by the forming agency Plan Sponsor, or such other individual or entity as detern fined pursuant to the California Government Code. -3- Resolution No. 2009-87 Article III Participation 3.1 EIigibility. 3.1.1 In General. Subject to the limitations of section 3.2, every Employee shall be eligible to become a Member under this Plan at the time of the first Plan Sponsor contribution to this Plan on the Employee's behalf. The PIan Sponsor may contribute to the Plan on behalf of its Employees on terms pursuant to the Plan Sponsor's leave conversion programs, flat rate contribution program, or any other Plan Sponsor sponsored program permitting contributions to the Plan and Trust. 3.2 Limitations. 3.2.1 Participation shall be limited to those Employees by or on behalf of whom a. contribution is made to the Trust. 3.2.2 This Plan does not permit any condition for eligibility which would limit participation or benefits to officers or highly compensated Employees. 33 Procedure. After satisfying all eligibility requirements, an Employee shall participate in this Plan when the Trustee receives the initial contribution for the Member. 3.4 Duration of Participation. Once an Employee becomes a Member in the Plan, his participation shall continue as long as funds remain in or are required to be deposited in his/her Member's Individual Account. 3.5 Voluntary Participation. The participation by an Employee shall be voluntary in accordance with the collectively bargained provisions for member contributions. Such participation shall be governed by the applicable provisions of the Internal Revenue Service (IRS). -4- _......._Resolution No. 2009-87 Article IV Plan Benefits 4.1 Description. The purpose of the Plan is to provide health and welfare benefits and similar benefits permitted under section 501 (c)(9) of the Internal Revenue Code, for use during periods of employment, layoff or retirement. Health Benefits may include benefits as defined by Code Section 213 and excludable from income under Code Sections 105 and 106 as amended from time to time. Such benefits may be provided through reimbursement or through the payment of premiums to a medical benefit or health insurance program. Benefits may include payment for services or benefits designed to safeguard or improve the health of Members or clinical care services by visiting nurses, nursing homes and transportation for medical care. Welfare benefits may include, but are not limited to health, severance, unemployment, life and/or education benefits. 4.2 Commencement of Benefits. Benefits commence for . covered expenses incurred on or after the date an Employee becomes a Member in the Plan. 4.3 Beneficiaries. Benefits are payable for covered expenses incurred by the Member, the Member's dependents or the Member's Beneficiaries. 4.4 Designation of Beneficiaries. The Member shall have the sole right to designate the Beneficiary or Beneficiaries eligible to receive any benefit under the Plan. Such designation must be on a form or forms supplied by the Plan Administrator and shall be effective when delivered to the Plan Administrator in accordance with established procedures. 4.5 Termination of Benefits. Benefits for Members shall terminate when there are no longer any assets available for payment. 4.6 Beneficiary Payments Individual Accounts. If an Individual Account is established, in the event of the Member's death, any funds then remaining in the Member"s Individual Account. shall be used for medical expenses of the Member's spouse and qualified dependents. 4.7 Unallocated Benefits. The Plan Sponsor may participate in this Plan without establishing Individual Accounts for Members. The Plan Sponsor shall specify the Employees to whom benefits are to be paid, and the amount and type of benefits. The assets contributed for such Employees and earnings thereon shall be accounted for in a separate sub account of the Trust. Benefits shall then be paid to Members as prescribed by the provisions of this Plan and any other instrument that is deemed a part of this Plan for the purpose of determining benefits to be paid. When the assets in such sub account are exhausted no further, benefits shall be paid. -5- Resolution No. 2009-87 Article V Funding of Benefits 5.1 Plan Sponsor's Contributions. Plan Sponsor contributions made to this Plan and Trust for medical benefits shall be specifically allocated to an Individual Account for each Member for the purpose of providing payment of the benefits described herein unless the Plan Sponsor is providing for Unallocated Benefits pursuant to Section 4.7. 5.2 Determination of Benefits. Unless the benefits are being provided on an Unallocated Basis pursuant to Section 4.7, amounts contributed on behalf of each Member shall be determined pursuant to the provisions of the collective bargaining agreement and Plan Sponsor personnel practices under which the benefits and compensation to be provided to the Employee under this Plan are determined. If benefits are being provided on an Unallocated Basis benefits shall be determined on the same basis. 5.3 Termination of Plan Sponsor Contributions. Contributions shall cease when the applicable bargaining agreements or Plan Sponsor policies no longer provide for contributions. The Plan Sponsor shall be responsible for informing the Plan Administrator when Plan Sponsor Contributions for any Employee or Employees will cease. 101 ResolutignNo,_20_0..9-87_..-_-..__.___.__.__.__. - Article V>< Allocation to Member's Accounts 6.1 Members' Individual Accounts. A separate account shall be maintained by the Plan Administrator for each Member to account for the income, gains, losses, and expenses or benefit payments attributable to his or her account unless benefits are being provided on an Unallocated Basis. 6.2 Receipt of Contributions. Contributions will be credited when received by the Trustee. 6.3 Accounting. The Plan Administrator shall develop such accounting procedures as are deemed appropriate for the accurate reflection of the Members' Individual Account balance or the assets contributed, earnings thereon and benefits paid if benefits are being provided on an Unallocated Basis. -7- _... .... ----.._. .. ------- ----....ResolutionNo...2049-87..._.. _. . . Article VH General Provisions 7.1 Source of Benefits. The Plan and Trust's liability to any Member for benefits under the Plan shall be limited to the sum of the contributions made by the Member to his/her Individual Account and/or the amount contribution made by the Plan Sponsor and interest thereon for the specified benefit of said Member if benefits are being provided on an Unallocated Basis. 7.2 Mechanics of PA)ment. The Member shall, with respect to any benefit, and subject to the reasonable procedures established by the Plan Administrator, direct the Plan Administrator: 7.2.1 To pay benefits directly to an , insurance company for qualified insurance premiums; or 7.2.2 To pay benefits to a Plan Sponsor for qualified Medical premium payments; or 7.2.3 To pay benefits to the Member for reimbursement of qualified medical expenses; or any combination as allowed under the procedures adopted by the Plan Administrator_ 7.3 Claims Procedure. At such time when a Member believes he/she is entitled to receive a benefit under the Plan, such Member shall deliver a request for such benefit in writing to the Plan Administrator. The Plan Administrator shall review the claimant's request for a Plan benefit and .shall, within a reasonable time thereafter, notify the claimant of its decision as follows: 7.3.1 If the claimant's request for a Plan benefit is approved, the Plan Administrator shall proceed with the distribution of such Plan benefit pursuant to the reimbursement method selected by the Member. 7.3.2 If the claimant's request for a Plan benefit is denied, in whole or in part, by the Plan Administrator, the Plan Administrator shall notify the claimant of such denial and shall provide the claimant with a reasonable procedure for review. 7.3.3 Any claimant whose request for Plan benefits has been denied, in whole or in part, may appeal said denial of Plan benefits in accordance with the appeal process established by the Plan Administrator. Such request for review must be delivered to the Plan Administrator within the specified time period after the date the claimant received written notification of the Plan Administrator's initial denial of the claimant's request for Plan benefits. 7.3.4 The Plan Administrator shall permit the claimant to review pertinent documents and submit written issues and comments concerning the denial of claimant's request for Plan benefits. -8- .._-Resolution.No..2004.-.87-------- Article VIII Administration 8.1 Trust Administrator. The Trust Administrator of the California Government Voluntary Employees Beneficiary Association Master ("Trust' } shall perform such duties as directed by the Trustee and the terms of this agreement. 8.2 Trust Administrator Duties. The Trust Administrator shall have responsibility for maintaining records of the balances, claims, and contributions to the Individual Accounts as well as such records as are needed to maintain the Plan if contributions are made on an Unallocated Basis. The Trust Administrator shall enforce this Plan in accordance with its terms and those of the Trust and shall be charged with the general administration of the Plan. In addition, the Trust Administrator, or its delegatee, shall have the following duties: 8.2.1 to determine all questions relating to the eligibility of Employees to participate. 8.2.2 to report to the Trustee as directed; 8.2.3 to compute and certify to the Trustee the amount and kind of benefits payable to the Members, their dependants and Beneficiaries; 8.2.4 to maintain all the necessary records for the Administration of this Plan; 8.2.5 to account for the investments made by the Trustee in a manner consistent with the objectives of the Plan and authorized by the Trust; 8.2.6 to make and publish such rules for the regulation of this Plan as are not inconsistent with the terms hereof. 8.3 Information. To enable the Trust Administrator to perform its functions, the Plan Sponsor shall supply it with full and timely information on all matters relating to the compensation of all Employees, their services, their retirements, deaths or the causes for terminations of employment and such other pertinent facts as the Trust Administrator may require. 8.4 Expenses. All expenses shall be paid from the earnings on the assets held in the Trust, unless otherwise authorized by the Trustee. 8.5 Consultants, Advisors & Managers. The Trust Administrator may employ such consultants, advisors and investment managers as it deems necessary or useful in carrying out its duties hereunder, with the cost thereof to be paid from the Trust assets. Such Consultants, Managers and Advisors are subject to approval by the Trustee. 8.6 Funding Policy & Procedures. The Trustee, Trust Administrator and Plan Sponsor shall formulate policies, practices and procedures for contributions to, payments from, and funding of the Plan, which shall be consistent with the Plan objectives and the provisions of applicable law. Without limiting the generality of the foregoing, the Trust Administrator.may, from time to time, .accomplish the following: in Resolution No. 2009-87 8.6.1 Establish a regular and convenient schedule of planning meetings, not less often than annually. 8.6.2 Review short term, intermediate and long range investment goals. 8.6.3 Determine'and project benefit liabilities. 8.6.4 Make plans to satisfy the liquidity needs of the Plan; and 8.6.5 Consult with such other advisors as may be necessary to assure the efficient payment of Plan benefits. 8.6.6 Recommend asset investment models, fund managers and investment options. 0 -10- Resolution No. 2009-87 Article XI Liability 9.1 No Rights. Neither the establishment of this Plan, nor any modification or amendment thereof, nor the payment of any benefits, shall be construed as giving any Member, or any person whomsoever, any legal or equitable right against the Trustee, Trust Administrator, Plan Sponsor, or the assets of the Plan. 9.2 Obligations of the Plan Sponsor. Only assets in the Trust shall be available to pay the benefits and claims which arise under this Plan. No obligation of the Plan shall constitute an obligation of the Plan Sponsor, except as such Plan Sponsor is obligated to make contributions under the Plan. 9.3 Liability Limitation. Neither the Trustee, Plan Sponsor or the Trust Administrator shall be liable for the acts or omissions of any Investment Manager or other person appointed to manage the assets of the Plan and Trust if the Trustee or Trust Administrator in appointing such person acted with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man would use in the conduct of an enterprise of a like character and with like aims. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2 1 s t day of December , 2009 . of Human Resources APPROVED AS TO FORM: 4tyy;A;t:t=o!me"y la -iv -tom Kcdesktop 11 Res. No. 2009-87 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on December 21, 2009 by the following vote: AYES: Carchio, Coerper, Hardy, Green, Bohr, Dwyer, Hansen NOES: None ABSENT: None ABSTAIN: None , " � " A. . ,,, y Clerk and ex-offi Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT RESOLUTION NO. 2009-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE VOLUNTARY EMPLOYEES BENEFICIARY ASSOCIATION RESTATED MASTER TRUST BENEFITS FOR NON -REPRESENTED EMPLOYEES TRUST restated in its entirety as of the 23`d day of December, 2009 by and between the City of Huntington Beach, a forming public agency I the State of California (hereinafter referred to as the "Plan Sponsor."), and the Trust. Committee of the California Government VEBA, (hereinafter referred to as the "Trustee"). . WHEREAS, the Plan Sponsor adopts the California Government VEBA hereinafter referred to as the "Plan;" and The Plan constitutes the California Government Voluntary Employees Beneficiary Association ("California Government VEBA"); and Under the Plan, funds will from time to time be contributed to the Trustee, which funds, as and when received by the Trustee will constitute a trust fund to be held for the benefit of the Members and retirees of the Plan Sponsor having a right to benefits, pursuant to the provisions of the Plan, and such funds will be invested by the Trustee pursuant to directions by the Plan Sponsor and/or Investment Manager as provided herein; and Other Plan Sponsors may adopt this Trust as a Master Trust, subject to the provisions of this Trust, to hold assets for the purpose of funding plans that are a part o the California Government VEBA; and The Plan Sponsor having entered into this Master Trust with the Trustee for the purpose of holding the assets under the Master Trust attributable to the Plan and other amounts contributed thereunder; and The assets and funds to be held in the Master Trust established hereby, as and when received by the Trustee, will constitute a trust fund to be held for the benefit of the members of the Plan and their beneficiaries; and The Plan Sponsor desires the Trustee to hold such assets and funds and the Trustee is willing to hold such assets and funds pursuant to the terms of this trust; and Kcdesktop 1 Resolution No. 2009-88 The master trust is intended to qualify as a "Voluntary Employees Beneficiary Association" within the meaning of Section 501(c)(9) of the Internal Revenue Code; and The master trust is intended for the purpose of creating a fund to provide for the payment of benefits that qualify under Section 501(c)(9) of the Internal Revenue Code to participating Members, including their dependents, and their designated beneficiaries, NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the Plan Sponsor and the Trustee do hereby agree as follows: l . The Plan Sponsor hereby adopts the California Government Voluntary Employees Beneficiary Association (VEBA) Trust (the "Master Trust") as a trust to fund the benefits provided by the Plan. All such money and property, all investments made therewith and proceeds thereof and all earnings and profits thereon, less the payments or other distributions which, at the time of reference, shall have been made by the Trustee, as authorized herein, are referred to herein as the "Fund" and shall be held by the Trustee, in trust, and dealt with in accordance with the provisions of this Trust. 2. Any other California public agency may become a Plan Sponsor and adopt the Master Trust to fund benefits provided under the California Government VEBA Plan if the Plan Sponsor adopts the Master Trust and the Plan in order to provide benefits that are funded from the Master Trust and the Trustee agrees to such adoption. The Assets of each Plan Sponsor and the investment earnings thereon shall be available only to pay benefits to employees of that Plan Sponsor and any costs or fees associated with the administration of the Plan covered under this Trust. 3. It is intended that the Master Trust shall meet the requirements of Internal Revenue Code Section 501(c)(9). All contributions hereunder and all assets and earnings of Kcdesktop 2 Resolution No. 2009-88 the Master Trust are solely and irrevocably dedicated to the payment of benefits that qualify under section 501(c)(9) of the Internal Revenue Code. Effective January 1, 2008 and as referenced herein,. the Trustee shall consist of a Trust Committee. The Trust Committee shall consist of one person designated by each Plan Sponsor. Such designated individual shall assume the responsibility of Trustee. Executive Trustees shall review all information and documents related to the daily activities and operation of the Trust and Plan and shall make recommendation(s) to the full body of Trustees forming the Trust Committee on such related matters. Such Executive Trustees shall consist of the ten original Plan Sponsors and five additional Trustees voted by the full body of Trustees to such position. A vote to fill the five additional positions shall occur every three years. Procedures to fill vacancies which occur in the interim periods shall be developed by the Trust Committee. 4. Trustee shall appoint a Trust Administrator and any and all successor Trust Administrators which shall have the- authority to act for a Plan Sponsor in all matters relating to the establishment and maintenance of the Plan and Trust except those relating to the investment and management of the assets of the Trust and such other matters as are reserved to the Plan Sponsor or the Trustee under the provisions of this Trust. Without limiting the generality of the - foregoing, the Trust Administrator shall have the following specific powers:, A. To contract for and delegate the administration of the Plan to one or more administrators, subject to approval of the Trustee- B. To determine from time to time the benefits to be provided for participants under the Plan. C. To retain professional advisors, including auditors and legal advisors to provide services to the Trust. -3- Resolution No. 2009-88 D. To prepare necessary filing with the state and federal government. 5. Responsibility for the management and control of the assets of the Plans which are held under the Master Trust as a funding medium (including the power to acquire or dispose of such assets) is vested in the Plan Sponsor, and/or in such one or more investment managers described in Article 13a who are appointed by the Plan Sponsor. That portion . of the Fund for which the Plan Sponsor shall have such responsibility is hereinafter referred to as the "Plan Sponsor -Directed Fund." Any portion of the Fund over which an Investment Manager shall have such responsibility is hereinafter referred to as an "Investment Manager -Directed Fund." Allocations of assets of the Fund between or among any Plan Sponsor -Directed or Investment -Manager Directed Funds shall be determined by the Plan Sponsor. For efficiency or convenience of investment or administration, the Fund or any such Plan Sponsor -Directed or Investment Manager -Directed Fund may be divided into such one or more sub -funds as the Plan Sponsor or the Trustee may deem advisable. 6. The Trust Administrator shall maintain a separate account reflecting the equitable share in the Fund of each Plan Sponsor. For this purpose, the Trustee shall determine the value of the assets of the Fund as of the last day of each calendar quarter and as of such other dates as the Trustee may deem appropriate or on which the Plan Sponsor- and the Trustee may agree. Assets shall be valued at their market values at the close of business on the date of valuation, or, in absence of readily accessible market values, at such values as the Trustee shall determine in accordance with methods consistently followed and uniformly applied. Anything herein to the,contrary notwithstanding, with respect to assets constituting part of a Directed Fund hereunder, the Trustee may rely, for all purposes of this Trust, including for the purpose of determining the value of such assets as of any quarterly or other valuation date, on any certified appraisal or other form of valuation submitted to it by the Investment Manager(s). The Trustee may also rely on Assets -4- Resolution No. 2009-88 reported by an Insurer in conjunction with contracts issued by that Insurer. Any amount paid from the Master Trust which is specifically allocable to a particular Plan Sponsor shall be charged against the equitable share of such PIan Sponsor; any amount paid from the Master Trust which is allocable to all of the Plan -Sponsors shall be charged against the individual Plan Sponsor assets on a pro-rata basis. 7. The Trustee shall not be required to maintain any separate records or accounts with respect to any Plan Sponsor or any participant in (or beneficiary of) any Plan Sponsor, and any such records or accounts required to be maintained pursuant to the terms of any such Plan shall be maintained by the Plan Sponsor or by the appropriate committee directly charged with such responsibility. 8. By entering into this Trust, the Trustee does not assume any responsibility or undertake any duty to enforce payment of any contribution under any collective bargaining agreement, any responsibility for the adequacy of the Fund or the funding standards adopted by any Plan Sponsor to meet or discharge any liabilities under such agreement or standard, or any responsibility under the terms of this Trust for the management or control of any Discretionary or Directed Funds. Except as may otherwise be required by law, no duties or obligations shall be imposed upon the Trustee unless they have been specifically undertaken by the express terms of this Trust. 9. The Trustee shall receive any contributions paid to it in cash or in other property acceptable to it. All contributions so received, together with the income therefrom and any other increment thereon, shall be held by the Trustee pursuant to the terms of this Trust without distinction between principal and income. The Trustee shall not be responsible for the collection of any contributions to the Plans. -5- Resolution No. 2009-88 10. The Trustee may from time to time consult with counsel, who may be counsel to the Plan Sponsor, with respect to any question arising as to the construction of this Trust or any action to be taken hereunder and the Trustee shall be fully protected, to the extent permitted by law, in acting in good faith upon the advice of counsel. 11. Subject to the provisions of Article 12 hereof, the Trustee from time to time upon receipt of written notice from the Trust Administrator, may make payments out of the Trust Fund to such persons, in such manner, in such amounts and for such purposes, including the payment of expenses of the Plan and the purchase of life insurance and/or annuity contracts, as may be specified by the Trust Administrator. Except as may otherwise be required by law, the Trustee shall be under no liability for any payment made by it pursuant to a written direction of the Trust Administrator and shall be under no duty to make inquiries as to whether any payment directed by the Trust Administrator is made pursuant to the provisions of the Plan. 12. Notwithstanding anything to the contrary contained in this Trust or. in any amendment thereto, it shall be impossible, at any .time prior to the satisfaction. of all liabilities with respect to the members under the Plans or their beneficiaries, for any part of the Fund, other than such part as is required to pay taxes and expenses of administration, to be used for or diverted to purposes other than for the exclusive benefit of the members under the Plans or their beneficiaries. 13. Unless otherwise prohibited by law or otherwise specified herein, the Trustee shall have the following powers and authority with respect to the Trust Fund: a. To invest and reinvest, as directed by the Plan Sponsor and/or the Investment Manager, the principal and income of the Fund and keep the Fund invested without distinction between principal and income, in such securities or in such property, real or personal (whether or not income producing), wherever In Resolution No. 2009-88 situated, including, but not limited to, life insurance, contracts, stocks, common or preferred; any mutual or other funds maintained or established by the Trustee or any affiliate thereof; bonds and mortgages and other evidence of indebtedness or ownership in any common, collective or commingled trust fund maintained by the Trustee, as the same may be amended from time to time, and during any period when such funds are used, the instrument establishing such fund shall constitute a part of this Trust. In making such directed investments, the Trustee shall not be restricted to securities or other property of the character authorized or required by applicable law from time to time for trust investments. The Plan Sponsor and/or Investment Manager shall direct the Trustee in writing as to the asset allocation or percentage mix of types of investments to be used by the Trustee for the investment of the Trust Fund, and as to specific investments to be made by the Trustee of amounts in the Trust Fund. To the extent permitted by law, the Trustee shall not be liable and shall be held harmless and indemnified by the Plan Sponsor for any losses incurred in connection with the Trust Fund caused by its reliance thereon. Such losses may be either actual realized losses or losses in the nature of "lost investment opportunity." b. To settle, compromise or submit to arbitration any claims, debts or damages, due or owing to or from the Master .Trust, to commence or defend suits or legal proceedings and to represent the Master Trust in all suits or legal proceedings in any court of law or before any other body or tribunal. c. To exercise any conversion privilege and/or subscription right available in connection with any securities or other property at any time held by it; to oppose or to consent to the reorganization, consolidation, merger or readjustment of the finances of any corporation, company or association, or to the sale, mortgage, pledge or lease of the property of any corporation, company or association any of the securities of which may from time to time be held by it and do any act with reference thereto, including the exercise of BrA Resolution No. 2009-88 options, the making of trusts or subscriptions, and the payment of expenses, assessments or subscriptions, which may be deemed necessary or advisable in connection therewith, and to hold and retain any securities or other property which it may so require. d. To exercise, personally or by general or by limited power of attorney, any rights, including the right to vote, appurtenant to any securities or other property held by it at anytime. e. - To hold part or all of the Funds uninvested. f. To employ and unemploy agents, including the Trust Administrator, counsel, and auditor and to pay from the Trust Fund their reasonable expenses and compensation. g. To register any securities held by it hereunder in its own name or in the name of a nominee with or without the addition of words indicating that such securities are held in a fiduciary capacity and to hold any securities in bearer form. h. To make, execute and deliver, as Trustee, any and all deeds, leases, mortgages, conveyances, waivers, releases or other instruments in writing necessary or desirable for the accomplishment of any of the foregoing powers. i. To deposit any part of the Fund in interest bearing account deposits maintained by the Trustee. j. . Generally to do all acts, whether or not expressly authorized, which the Trustee may deem necessary or desirable for the protection of the Trust Fund. 14. The Plan Sponsor reserves the right to retain the services of one or more persons or firms for the management of (including the power to acquire and dispose of) all or any part of the Fund, provided that each of such persons or firms is registered as an investment advisor under the Investment Advisors Act of 1940, is a bank (as defined in that Act), or is an insurance company qualified to manage, acquire or dispose of trust assets under the laws of more than one state, and provided that each of such -8- Resolution No. 2009-88 persons or firms has acknowledged in writing that he is a fiduciary with respect to the Plan; in such event, the investment manager or managers so retained (the "Investment Manger(s)") shall have the same investment powers and duties as the Trustee, and the Trustee shall not be liable for the acts or omissions of such Investment Manager(s), nor shall it be under any obligation to invest or otherwise manage any Trust Fund assets which are subject to the management of such Investment Manager(s). 15. The Trustee shall pay out of the Fund all personal property taxes, income taxes and other taxes of any and all kinds levied or assessed under existing or future laws against the Trust Fund. 16. The Trustee shall, within 90 days after the close of each calendar year, and within 90 days after the removal or resignation of the Trustee or the termination of the Trust or Plan, render accounts of its transactions to the Trust Administrator and Plan Sponsor. The Trust Administrator and Plan Sponsor may make exceptions to such accounts by an instrument in writing delivered to the Trustee. In the absence of the filing in writing with the Trustee, of exceptions or objections to any such account within ninety (90) days of the rendering, shall be deemed to have been approved, the Trustee shall be released, relieved and discharged with respect to all matters and things set forth in such account as though such account had been settled by the decree of a court of competent jurisdiction. The Trustee shall keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions hereunder for the Fund (including any Discretionary or Directed Fund) and all accounts, books and records relating thereto shall be open to inspection and audit at all reasonable times by any persons designated by the Trustee or Trust Administrator. Except as the Retirement Security Act of 1974, as amended ("ERISA"), provides otherwise, no person other than the Plan Sponsor may bring any action against the Trustee with respect to the Trust or their actions as Trustee. The Trustee shall from time to time permit an independent public accountant selected by the Plan Administrator (except one to M Resolution No. 2009-88 whom the Trustee has reasonable objection) to have access during ordinary business hours to such records as may be necessary to audit the Trustee's accounts. 17. The Trustee shall be fully protected in relying upon notice from the Trust Administrator with respect to any instruction, direction or approval of the Trust Administrator, and protected also in relying upon a notice from the Trust Administrator as to the person or persons who are authorized to direct payments from the Trust Fund and in continuing to rely upon such notice until a subsequent notice is filed with the Trustee. The Trustee shall be fully protected in acting upon any instrument, certificates or paper believed by it to be genuine and to be signed or presented by the proper person or persons, and the Trustee shall be under no duty to make any investigation or inquiry as to any. statement contained in writing, but may accept the same as conclusive evidence of the truth and accuracy of the statements therein contained. The Trustee shall not be liable for the application of any part of the Fund if payments are made in accordance with the approved written instructions of the Trust Administrator as herein provided, nor shall the Trustee be responsible for the adequacy of the Fund to meet and discharge any and all payments and liabilities under the -Plan. All persons dealing with the Trustee are released from inquiry into the decision or authority of the Trustee and from seeing to the application of any moneys, securities or other property paid or delivered to the Trustee. The Trust Administrator and Plan Sponsor hereby agree to hold the Trustee harmless from and against all taxes, expenses (including counsel fees), liabilities, claims, damages, actions, suits or other charges incurred by or assessed against it as a successor Trustee, as a direct or indirect result of any act or omission of a predecessor =i0- Resolution No. 2009-88 Trustee or any other person charged under any trust affecting Fund assets for investment responsibilities with respect to such assets. The Plan Sponsor agrees to. hold harmless and indemnify the Trustee, to the fullest extent permitted under applicable law, for any and all liabilities of any kind incurred by the Trustee in connection with the Plans and Trust (a) relating to periods of time prior to the Trustee's becoming Trustee, or (b) relating to periods of time while the Trustee is Trustee if such. liability is not due to the Trustee's negligence, willful misconduct, or breach of its fiduciary duties. 18. The Trustee may resign at any time by giving sixty (60) days written notice to the Trust Administrator. In the case of the resignation or removal of the Trustee, the Trust Administrator immediately shall appoint a successor Trustee. If for any reason the Trust Administrator cannot or does not act in the event of the resignation or removal of the Trustee, as hereinabove provided, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee. Any expenses incurred by the Trustee in connection therewith shall be paid from the Fund as an expense of administration. Any successor Trustee shall have the same powers and duties as those conferred upon the Trustee named in this Trust. The removal of the Trustee and the appointment of a new Trustee shall be by written instrument delivered to the Trustee. 19. This Trust, subject to the provisions of Article 1 may be amended by the Trustee at any time or from time to time and in any mariner and the provisions of any such amendment may be made applicable to the Fund as constituted at the time of the amendment as well as to the part of the Fund subsequently acquired; provided, however, that no such amendment shall increase the duties of the Trustee without its consent. Any amendment shall be by a written instrument adopted by the Trustee. -11- Resolution No. 2009-88 20. This Trust and the trust created hereby may be terminated at any time by the Trustee, and upon such termination, the Fund shall be paid out by the Trustee as and when directed by the Trust Administrator in accordance with the provisions of Article 12 hereof. 21. The Trust Administrator shall provide the Trustee with copies of all documents constituting a Plan at the time the Trust is executed by a Plan Sponsor, as provided in Article 2, and all otherdocuments amending or supplementing a participating Plan promptly upon their adoption. The Trustee shall be entitled to rely upon the Trust Administrator's attention to this obligation and shall be under no duty to inquire of the Trust Administrator as to the existence of any documents not provided by the Trust Administrator hereunder. The Trustee is bound and acknowledges that it is a fiduciary with respect to the Master Trust and the participating Plans and by the fiduciary responsibility provisions of ERISA as applicable to governmental plans. The provisions of ERISA are expressly made applicable to the provisions of this Master Trust in order to ensure tbat the Master Trust meets the control requirements for a VEBA under the provisions of 501(c)(9) of the Internal Revenue Code. 22. To the extent consistent with the provisions of ERISA, this Agreement and the trust created hereby shall be construed, regulated and administered under the laws of the State of California, and the Trustee shall be liable to account only in the courts of the State. All contributions to the Trustee shall be deemed to take place in the State of California. Unless the provisions of ERISA provide otherwise, the Trustee may at any time initiate an action or proceeding for the settlement of its accounts or for instructions, and the only necessary party defendant to such action or proceeding shall be the Employer except that the Trustee ,may, if it so elects, bring in as parties defendant any person or persons. -12- Resolution No. 2009-88 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21st day of December , 20 09. City of Human Resources PROVED AS TO FORM: y Attorne Kcdesktop 13 Res. No. 2009-88 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on December 21, 2009 by the following vote: AYES: Carchio, Coerper, Hardy, Green, Bohr, Dwyer, Hansen NOES: None ABSENT: None ABSTAIN: None Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATION SUBJECT: VEBA ADOPTION COUNCIL MEETING DATE: December 21, 2009 Ordinance (w/exhibits & legislative draft if applicable) Attached L� Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached ❑ Contract/Agreement (w/exhibits if applicable) Not Applicable (Signed in full by the City Attorney) Attached ❑ Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attorney) Attached ❑ Certificates of Insurance (Approved b the City Attorne ( Pp Y Y Y) Not Applicable Attached ❑ Fiscal Impact Statement Unbud et, over $5,000 p ( 9 ) Not Applicable Attached ❑ Bonds (If applicable) Not Applicable Attached ❑ Staff Report (If applicable) Not Applicable Attached El Commission, Board or Committee Re ort If applicable p ( pp ) Not Applicable Attached ElFindin s/Conditions for Approval and/or Denial g pp Not Applicable Administrative Staff Assistant City Administrator (Initia City Administrator (Initial) City Clerk EXP;LANATIONFOR RETURN;:OF_ITEM RCA Author: Emery CITY OF HUNTINGTON BEACH MEETING DATE: DEPARTMENT ID NUMBER: AD 09-033 Council/Agency Meeting Held: Deferred/Continued to: aAp ved ❑ Conditionally Approved ❑ Denied U IerK's >ignatu Council Meeting Date: 12/21/09 Department ID Number: AD 09-033 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUN EMBERS SUBMITTED BY: FRED A. WILSON, CITY ADMINISTR PREPARED BY: PAUL EMERY, DEPUTY CITY ADMINI TRATOR,0j U )/--/ SUBJECT: Non -Represented Employees Resolution Modifications Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The proposed Resolution will modify existing pay and benefits for non - represented employees by 1) applying the language of a previously approved side letter with the non -associated employees regarding Supplemental Retirement Benefit options, 2) adding an employee share of PERS contributions to safety employees hired after December 1, 2009, 3) providing for a Voluntary Employee Beneficiary Association (VEBA), 4) eliminating the Retiree Subsidy Medical Plan for new employees hired after December 1, 2009 and 5) adding the position of Director of Planning and Building to the Non -Associated Executive Management Salary Schedule. Funding Source: There is no funding required by this action. Recommended Action: Adopt Resolution No.2nng-9A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Non -Represented Employees. Alternative Action(s): Do not adopt the Resolution and direct staff accordingly. -2- 40)�16 12/14/2009 10:54 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: AD 09-033 Analysis: The proposed Resolution will modify existing pay and benefits for non -represented employees in five distinct areas. The Resolution will apply the provisions of a previously approved side letter with the non -associated employees regarding Supplemental Retirement Benefit options, it will add an employee share of PERS contributions for safety employees hired after December 1, 2009, it will provide for a Voluntary Employee Beneficiary Association to non -represented employees, it will eliminate the Retiree Subsidy Medical Plan for new employees hired after December 1, 2009,and finally it will amend the salary schedule by adding the position of Director of Planning and Building. On March 16, 2009 the City Council approved a side letter with the Management Employees Association via Resolution No. 2009-17 (attachment 2) providing clarification on the Self Funded Supplemental Retirement Benefit. This amendment is eligible to employees hired before August 17, 1998. The proposed Resolution takes the language approved in the side letter and applies it to the non -represented resolution. This language is provided in Section IV.A.2 "Self Funded Supplemental Retirement Benefit" on page nine of the resolution. There is no fiscal impact of this action. The second amendment to the Non -Represented Resolution adds two and one -quarter percent (2.25%) to the employee share of PERS for "safety" employees hired after December 1, 2009. This amendment aligns the employee share of PERS for safety employees hired after December 1, 2009,with all other non -represented non -safety employees. The language is located in section IV.5 on page ten (10) of the resolution. There is a net savings to the City through the application of this provision. The third amendment to the Non -Represented Resolution provides for a Voluntary Employee Beneficiary Association (VEBA) to the non -represented employees. This beneficiary association is available for eligible Non -Represented Department Head Employees with 25 years of continuous service to the City of Huntington Beach. It requires that the value of all unused sick and general leave accruals be transferred to the VEBA for purpose of long-term care expenses and non -reimbursed medical premiums, co -pays, prescribed drug expenses and other medical care costs as defined by the Internal Revenue Code Section 213. This amendment to the resolution does not amend the payout methodology for these two types of leaves, it only provides a tax-exempt vehicle for these leave payouts to be applied. There is no fiscal impact to the City by this action. This amendment is covered in section IV.8 on pages ten (10) and eleven (11) of the resolution. A separate Council item implementing the VEBA is included in the City Council agenda for December 21, 2009. The fourth amendment to the Non -Represented Resolution eliminates the Retiree Subsidy Medical Plan for non -represented employees hired after December 1, 2009. The current resolution requires the City to provide contributions toward monthly premiums for participants in City sponsored medical insurance plans who have retired from the City with a minimum of ten (10) years of continuous service. These contributions range from $121 to $344 monthly depending on years of service. The City must fund this benefit based on actuarial analysis of 12/14/2009 10:54 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: AD 09-033 the future benefit obligation. Eliminating this benefit will result in long term fiscal savings for the City. This amendment is covered in Section IV on page fifteen (15) of the proposed resolution. Finally, the proposed Non -Represented Resolution adds the position of Director of Planning and Building to the salary schedule for non -associated executive management. A separate Council item on the City Council agenda for December 21, 2009, creates the position of Director of Planning and Building and consolidates the Planning Department and the Building and Safety Department. The salary schedule is amended to add the position of Director of Planning and Building and setting the salary commensurate with the Directors of Community Services, Public Works) and Finance. The consolidation of the two directors has the effect of eliminating the director position and results in a net savings to the City. Environmental Status: N/A Attachment(s): 12/14/2009 10:54 AM RESOLUTION NO. 2009-89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR NON -REPRESENTED EMPLOYEES WHEREAS, the City Council of the City of Huntington Beach desires to modify 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: 1. Salaries and benefits for Non -Represented employees shall be as reflected in Exhibit A, attached hereto and incorporated by this reference. 2. Except as modified herein existing benefits shall remain in effect. 3. Any resolution in conflict herewith, whether by minute action or resolution of the City Council heretofore approved, is hereby repealed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21st day of December , 20 09 . City of Human Resources OVED AS TO FORM: Attorndy U 1 g- -7. 61 41716 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT A - NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISION................................................................................................... 1 SECTIONI PAY...................................................................................................................... 1 A. SALARY SCHEDULE.............................................................................................................................. 1 B. DIRECT DEPOSIT................................................................................................................................. 1 C. ASSIGNED VEHICLE/AUTO ALLOWANCE........................................................................................ 1 1. Department Heads........................................................................................................................................................1 SECTION II — HOURS OF WORK/OVERTIME/TIME OFF ........................................... 1 A. EXECUTIVE LEAVE.............................................................................................................................. 1 B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES......................................................................... 1 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.........................................................................................................................................................7 4. Section 125 Plan...........................................................................................................................................................7 B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE ......................................... 7 C. LONG-TERM DISABILITY INSURANCE.............................................................................................. 7 D. CITY -PAID PHYSICAL EXAMINATIONS............................................................................................. 8 E. MISCELLANEOUS..................................................................................................................................8 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREESUBSIDY PLAN...................................................................................................................... 8 G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE.......................................................................... 8 SECTION IV — RETIREMENT............................................................................................. 9 A. BENEFITS...............................................................................................................................................9 1. Public Employees' Retirement System.....................................................................................................................9 2. Self -Funded Supplemental Retirement Benefit...................................................................................................... 9 3. Medical Insurance for Retirees.................................................................................................................................. 9 4. 2.5 Percent at Age 55 Formula.................................................................................................................................. 9 5. Three Percent (3%) at Age 50 Formula.................................................................................................................10 6. Pre -Retirement Optional Settlement 2 Death Benefit.........................................................................................10 7. Fourth Level of 1959 Survivor Benefits................................................................................................................10 8. Plan Requirements........................................................................................................................................................ 9 9. Eligibility Defined......................................................................................................................................................... 9 10. Employee Contributions.............................................................................................................................................9 11. Leave Payout................................................................................................................................................................. 9 12. Participant Account...................................................................................................................................................10 12. Administrative Fees...................................................................................................................................................10 14. Dispute Resolution.....................................................................................................................................................10 15. Indemnification...........................................................................................................................................................10 VEBA Attachment A to Resolution 07-1375.001/41711 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING ................... 11 1. Employees' Contribution.........................................................................................................................................11 SECTION V — LEAVE BENEFITS.......................................................................................11 A. GENERAL LEAVE...............................................................................................................................11 1. Accrual.........................................................................................................................................................................10 2. Eligibility and Approval............................................................................................................................................11 3. Leave Benefit Entitlements......................................................................................................................................12 4. Conversion to Cash...................................................................................................................................................12 B. HOLIDAYS AND PAY PROVISIONS.................................................................................................... 13 C. SICK LEAVE......................................................................................................................................... 13 1. Accrual.........................................................................................................................................................................12 2. Credit............................................................................................................................................................................12 3. Usage............................................................................................................................................................................12 4. Payoff at Termination................................................................................................................................................12 D. BEREAVEMENT LEAVE...................................................................................................................... 14 E. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ...................................................... 13 SECTION VI — RETIREE SUBSIDY MEDICAL PLAN.....................................................15 SECTION VII - MISCELLANEOUS.....................................................................................14 A. COLLECTION OF PAYROLL OVERPAYMENTS................................................................................. 14 B. UNIFORMS AND CALPERS REPORTING......................................................................................... 14 EXHIBIT 1- NON -ASSOCIATED SALARY SCHEDULE..................................................15 EXHIBIT 2 - RETIREE MEDICAL PLAN..........................................................................18 EXHIBIT 3 - 9/80 WORK SCHEDULE................................................................................21 EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION ............................. 24 VEBA Attachment A to Resolution 11 07-1375.001/41711 9 NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS EXHIBIT A SECTION I — PAY A. Salagy Schedule 1. All current Non -Associated employees shall receive the salaries as identified in Exhibit 1, except for those elected employees 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 Administrator 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 Administrator 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 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-to-n travel at the approved mileage rate. 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. 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 Non Associated Final 12/17/07 x i i - Resolution No. 2009-89 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. 3. Alternative Work Schedule Non -associated employees may elect any alternative work schedule approved by the City Administrator or designee. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A. Health Insurance 1. Medical. Dental and Vision Insurance The City shall continue to make available group medical, dental and vision benefits 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. 41711 2 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i. Health Plan Employee and Employer Contributions Chart for Classifications in EXHIBIT 1 Employer Contributions effective January 16, 2007 — December 31, 2007 41711 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2008 Health Premiums and Contributions Effective 1/1/2008—12/31/2008 41711 Exhibit "A" - R-esotution No. 2009-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i1wm NOW M P, Single 393.63 301.43 92.20 42.55 PERS Kaiser Two -Party 787.26 611.06 176.20 81.32 Fam l 1,023.44 792.20 231.24 106.73 mummm Single 447.97 301.43 146.54 67.63 PERS Blue Shield HMO Two-party 895.94 611.06 284.88 131.48 Farruly 1,164.72 792.20 372.52 171.93 Single 401.98 301.43 100.55 46.41 PERS Blue Shield NetValue Two -Party 803.96 611.06 192.90 89.03 Farni]4 1,045.15 792.20 252.95 116.75 Single 458.59 411.15 47.44 21.90 PERS Choice Two -Party 917.18 772.48 144.70 66.78 Familz 1,192.33 936.47 255.86 118.09 KEEZ09AW offAimomwo Single 712.71 411.15 139.18 301.56 PERS Care Two -Party 1,425.42 772.48 652.94 301.36 Famil 1,853.05 936.47 916.58 423.04 Single 444.05 411.15 32.90 15.18 PERS Select Two -Party 888.10 772.48 115.62 53.36 Faml 1,154.53 936.47 218.06 100.64 Single 452.00 411.15 40.85 18.85 PDXAC Two -Par 847.00 772.48 74.52 34.39 Famil 1,076.00 936.47 139.53 64.40 Single 6.80 316.16 301.43 14.73 Kaiser Two -Party 692.38 611.06 81.32 37.53 mmmmmmmm F=ilZ 910.54 792.20 118.34 54.62 mmmmm SENERME Single 388.83 301.43 87.40 40.34 Blue Shield HMO Two -Party 847.37 611.06 236.31 109.07 ammmmmmimmmmmm Fan-lz 1,096.88 792.20 304.68 140.62 Single 507.93 411.15 96.78 44.67 Blue Shield PPO Consolidated Two -Party 1,073.84 772.48 301.36 139.09 P-11 Farnfl 1,330.81 936.47 394.34 182.00 rimm KIM ME= STIMMI M Single 57.86 45.02 12.84 5.93 Delta Dental PPO Two -Party 108.02 85.91 22.11 10.20 FamilZ 142.36 122.18 20.18 9.31 Single 24.87 24.15 0.72 0.33 Delta Care HMO Two -Party 42.29 41.07 1.22 0.56 Farni14 64.67 62.80 1.87 0.86 Single 22.93 18.46 4.47 2.06 VSP Two -Party 22.93 18.46 4.47 2.06 Family 22.93 18.46 4.47 2.06 [EmplVee and City contributions �ulVed to change 41711 6 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 employee and employer contributions rates set forth in sections ii and iii above shall remain in effect in 2009 and beyond unless otherwise modified by a successor Non -Associated Resolution. 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), they may elect to discontinue City medical coverage and receive one hundred forty-six dollars, ($146.00) 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 Disabilit�E Insurance This program provides for each incident of illness or injury, 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). 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 oa-upation during two yearn and thereafter the inability to engage in any employment or oa-upation, 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. 41711 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. Cit3--Paid Ph�ical 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: 1. 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. 4. 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 City Medical Retiree Subsidy 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. 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 41711 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 City -sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for this insurance. SECTION IV — RETIREMENT A. Benefits 1. Public Employees' Retirement System* Non -Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self -Funded Supplemental Retirement Benefit In the event a 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 options 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 21458 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member and shall be payable by the City during the life of the member, and upon that member's death, the City obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees covered by this Agreement.. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the City's group health insurance program at the equivalent of the City's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph IV.A.3.a above, the City will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. 4. PERS 2.5% @ 55 If all other affected units agree, and subject to a formal ratification vote conducted by PERS, the City shall implement PERS 2.5% @ 55 retirement formula, effective as soon as possible. Effective the beginning of the first pay period following implementation through December 26, 2008, the employees shall pay all of the additional costs to implement 2.5% @ 55 retirement formula. 41711 DTilbil- e ui2009-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Effective December 27, 2008, and thereafter, the employees shall pay two and one -quarter percent (2.25%) of the employee share of PERS. 5. Three Percent (3%) at Age 50 Formula Non -Associated employees classified as "safety" employees are covered by the three percent at age 50 formula (3% @ 50) as identified in Section 21362.2 of the California Government Code. "Safety" employees hired after December 1, 2009 shall pay two and one -quarter percent (2.25%) of the employee's share of PERS. 6. 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. 7. 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. 8. 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. 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. 41711 10 i i - ResolutionNo.2009-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. B. Public Employees' Retirement System Reimbursement and Reporting Employees' Contribution Non -Associated employees shall be reimbursed bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution or portion of such contribution to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 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 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. Eligibili, 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. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred forty (640) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Leave Benefit Entitlements The City shall comply with all State and Federal leave benefit entitlement laws. An eligible employee on an approved leave shall be allowed to use applicable earned Sick Leave, General Leave, or Executive Leave for family or personal health issues. For more information on employee leave options contact the Human Resources Department. 4. Conversion to Cash a. Pay Off at Termination An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. b. Conversion to Cash Two times during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred -twenty (120) general leave benefit hours per fiscal year. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. C. One Week Minimum Vacation Requirement The City Administrator 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. 41711 12 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 Qanuary 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 Quly 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. 2. Credit Employees assigned to Non -Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 4. Payoff at Termination a. Non Associated employees with continuous service with the City since November 20, 1978, shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (759/0) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave 41711 13 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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.S.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.S.d below, no Non -Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. However, employees may utilize accumulated sick leave on the basis of "last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non -Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. To the extent that any such "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee had accumulated another 48 hours. Employee 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 6. 41711 14 Exhibil - Resohnion No. 2009-89 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 Iength 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 Administrator or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05). B. Uniforms and CAPERS 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 (CAPERS) 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). 41711 15 NON -ASSOCIATED EMPLOYEE PAY ARID BENEFIT PROVISIONS EXHIBIT 1 NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE DECEMBER, 2009 Job Descri Type ption Pay Grade 12/09 Starting Point Control Point High Point 0510 Deputy City Administrator 715 $77.17 $85.89 $95.59 0009 Director of Building Safety 693 $69.15 $76.96 $85.66 0014 Director of Community Services 709 $74.88 $83.35 $92.77 0008 Director of Econ Development 693 $69.15 $76.96 $85.66 0574 Director of Human Resources 693 $69.15 $76.96 $85.66 0479 Director of Info Services 693 $69.15 $76.96 $85.66 0007 Director of Library Services 680 $64.80 $72.12 $80.28 0021 Director of Plannin and Building 709 $74.88 $83.35 $92.77 0010 Director of Public Works 709 $74.88 $83.35 $92.77 0518 Finance Director709 $74.88 $83.35 $92.77 0015 Fire Chief 721 $79.51 $88.49 $98.50 0011 Police Chief 721 $79.51 $88.49 $98.50 0016 City Attorney 752 $92.81 $103.30 $114.97 0017 City Clerk 680 $64.80 $72.12 $80.28 0018 City Treasurer 693 $69.15 $76.96 $85.66 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 2 RETIREE MEDICAL PLAN An employee who has retired from the City shall be entitled to participate in the City sponsored medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous full time City service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System. The City's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City's medical plans shall be governed by applicable plan document. 2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits begins after an employee has completed ten (10) years of continuous full time service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 41711 17 Exhibit - Resolution No.2009-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 3. 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 41711 18 txnit)lt'*A"- Kesolution No. - 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 Administrative Services 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. Retiree Subsidy Medical Plan includes Managed Health Network (MHN), Prescription Card System (PCS), Orange County Foundation for Medical Care (OCFMC) and Medical Stop Loss insurance. 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. 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: D. Medicare: a. Part B Medicare. b. Regular City Employee Indemnity Plan. c. Any other employee benefit plan. d. Any other commercially available benefit plan. e. Medicare supplements 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. 41711 19 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. 41711 20 t t - Reso Mon - 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 Administrator 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: 11 L 4 4 4 - Schedule - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. A/B Schedule Changes FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor or City Administrator 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 Administrator, 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. 41711 22 E3M!75!t- Meso "Mon No.2009-89 NON-ASSOCIATEID EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE IDONATION 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: e 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. Employees wanting to make donations will submit an Authorization for Donation to the Human Resources Division (payroll). 41711 23 Exhibit " - Resolution No.2009-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. 41711 24 tXnit)lteso u ion No. - NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete honor Name: (Please Print or Type: Last, First, MI) i Work Phone: onor Job Title: 3Iype of Accrued Leave: =lumber of Hours I wish to Donate: AH Vacation Hours of Vacation Compensatory Time i Hours of Compensatory Time Q General Leave Hours of General Leave ; I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation Program for: a"Eligible recipient employees name (Last, First, MI): i ; ; E onor Signature: ate: Please submit to the Human Resources Department. 41711 26 Res. No. 2009-89 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on December 21, 2009 by the following vote. - AYES: Carchio, Coerper, Hardy, Green, Bohr, Dwyer, Hansen NOES: None ABSENT: None ABSTAIN: None Clerk and ex-offici Clerk of the City Council of the City of Huntington Beach, California t _. WN e ITAC 1- H�I"EPINE __ RESOLUTION NO. 2009-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE RESOLUTION BETWEEN THE CITY AND THE NON -ASSOCIATED EMPLOYEES REGARDING SUPPLEMENTAL RETIREMENT BENEFIT OPTIONS WHEREAS, the City Council of the City of, Huntington Beach adopted Resolution No. 2007-89 for the purpose of modifying the salary and benefits for Non -Associated employees (NA), NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Effective 6/16/08 , Section IV A.2. of Resolution 2007-89 between the City's Non Associated employees and the City of Huntington Beach is hereby amended to read as follows: 2. Self Funded SupRlemental, Retirement Benefit In the event a Non -Associated employee member elects Option #1, #2, #2W, #3, #3W or 94 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. SECTION 2. Except as modified, existing benefits shall remain in effect. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of March , 2009 . 94 tvo /0 Mayor 26360 Res. -No. 2009-19 STATE OF CAU FORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on March 16, 2009 by the following vote: AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hardy, Hansen NOES: None ABSENT: None ABSTAIN: None Q00.) Ci lerk and ex-officio rk of the City Council of the City of -------- ............... ----------- --- ----- ---- -- --...... Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATION SUBJECT: NON -REPRESENTED EMPLOYEES RESOLUTION COUNCIL MEETING DATE: December 21, 2009 Ordinance (w/exhibits & legislative draft if applicable) Attached LJ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached Not Applicable ❑ (Signed in full by the City Attorney) Subleases, Third Party Agreements, etc. Attached Not Applicable ❑ (Approved as to form by City Attorney) Certificates of Insurance (Approved b the City Attome ( PP Y Y Y) Attached Not Applicable ❑ Fiscal Impact Statement (Unbudget, over $5,000) Attached Not Applicable ❑ Attached ❑ Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached Not Applicable ❑ Commission, Board or Committee Re ort If applicable p ( pp ) Attached Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached Not Applicable ❑ } y FOR. Y i EXPLANATION FORRETURN OF ITEM: RCA Author: EMERY G 7 02 1 Council/Agency Meeting Held: le ,��i" Deferred/Continued to: XApprg4ed^ ❑ Conditionally Approved ❑ Denied _ City C 's Council Meeting Date: 3/16/2009 I Department ID Number: HR CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, 'ty Adm' a PREPARED BY: Michele Carr, Di r Dan Villella, Fina e irector SUBJECT: Adopt Resolutions adopting Side Letter Agreements on the MOUs and Resolution with City's Bargaining Units Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The City of Huntington Beach and all employee bargaining units have met and conferred and agreed to modification of their respective MOUs and Resolution regarding supplemental retirement benefit options. Funding Source: There is no funding required for the recommended action. Recommended Action: Motion to: Adopt the following Resolutions: Resolution No.2009-12 A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Police Officers' Association (HBPOA), By Adopting The Side Letter Of Agreement. Resolution No.2009-13 A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Police Management Association, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 20ng-1 4 A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Marine Safety Officers Association, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 2nnA-I � A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Firefighters' Association, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 2009-16A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Fire Management Association, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 2009-17A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Management Employees Organization, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 2009-18A Resolution Of The City Council Of The City Of Huntington Beach Amending The Memorandum Of Understanding Between The City And The Huntington Beach Municipal Employees' Association, By Adopting A Side Letter Of Agreement Regarding Supplemental Retirement Benefit Options. Resolution No. 2009-19 A Resolution of the City Council of the City of Huntington Beach Amending the Resolution Between the City and the Non -Associated Employees Regarding Supplemental Retirement Benefit Options. Alternative Action(s): Do not adopt the Resolutions. Analysis: CalPERS permits a retired annuitant to select either an unmodified pension benefit or to select a modified pension benefit option. CalPERS provides a total of five modified pension benefit options (2, 2W, 3, 3W & 4). Presently, the City's existing MOU and resolution language does not reflect all available options as part of the negotiated Supplemental Retirement benefit. Pursuant to the benefits provided by CalPERS, at retirement an employee may choose to receive the highest allowance (the Unmodified Allowance) provided by CalPERS while the employee is alive or the employee may choose to leave a portion of their pension benefit to a beneficiary upon their death (Attachment 1). If the employee chooses to leave a portion of their pension to a beneficiary, they are required to choose one of four survivor benefit options (ostensibly the option that provides the maximum pension benefit to the beneficiary). Selecting an option, other than the Unmodified Allowance, reduces the employees monthly retirement allowance. The amount of this reduction depends on which option is selected. The City agreed to pay retirees hired before 1997 or 1998, depending on bargaining unit, a Supplemental Retirement benefit which is the difference between the retiree's unmodified CalPERS allowance and the option that is chosen by the employee. Depending on the bargaining unit, the City agreed to pay the difference only if the employee chose Options 2 or 3 (or in some cases only Option 2) as defined in each MOU or resolution. In most cases, if an employee chooses Option 2 (or 3) the City is required to pay more in Supplemental Benefits than if the employee would have selected any other option. To provide a uniform method of applying the MOU or resolution provision, and to provide City retirees a benefit that will save the City money, City management met with all affected bargaining units and agreed that the City should provide the Supplemental Benefit for optional retirement settlements 2, 2W, 3, 3W & 4. Currently there are 540 retirees receiving this benefit. In addition, there are approximately 450 employees eligible for the benefit that were employed by the City prior to the elimination of the benefit.. This benefit is no longer available to new hires or employees hired after December 27, 1997. Annually the City retains a professional consulting firm to perform an actuarial valuation of the Retirement Supplement Plan. As of September 30, 2008 the Actuarial Accrued Liability of the Plan totaled just over $51 million. City assets assigned to the plan as of September 30, 2008 totaled just over $20 million, leaving an unfunded liability of approximately $30 million. As part of the actuarial analysis the consultant identifies an annual required contribution to the plan for purposes of amortizing the payment of the unfunded liability at a level amount over a 30 year period. The annual required contribution for fiscal year 2008/09 is anticipated to be $3.07 million The action recommended does not increase the unfunded liability of the Retirement Supplement Plan as the actuarial analysis assumes that future participants in the plan will enroll in the most expensive option available. This is done to insure that adequate resources are dedicated to the plan on an annual basis. A separate action item on the March 16, 2009 City Council agenda recommends the establishment of a Supplemental Retirement Trust and the selection of a professional investment firm to provide investment and trust related services under the oversight of a Retirement Board. Strategic Plan Goal: Fully understand the financial implications of financial decisions before they are made, and recognize and disclose fiscal impacts of the pension crisis. Environmental Status: Not Applicable Attachment(s): g li A 1. LIST OF RETIREMENT BENEFIT OPTIONS 2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH POLICE OFFICERS' ASSOCIATION (HBPOA), BY ADOPTING THE SIDE LETTER OF AGREEMENT 3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH POLICE MANAGEMENT ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE MARINE SAFETY OFFICERS ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH FIREFIGHTERS' ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 6. 1A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 7. 1A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES ORGANIZATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MUNICIPAL EMPLOYEES' ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT 9. 1A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE RESOLUTION BETWEEN THE CITY AND THE NOW ASSOCIATED EMPLOYEES REGARDING SUPPLEMENTAL RETIREMENT BENEFIT OPTIONS. ATTACHMENT NO. 1 DECISIONS TO MAKE rsEFORE YOU RETIRE Your Options at Retirement At retirement, you can choose to receive the highest benefit payable, which is referred to as the "Unmodified Allowance." The Unmodified Allowance provides a monthly benefit to you that ends upon your death. You also have the choice of requesting a reduction in the Unmodified Allowance to provide a lump -sum or monthly benefit for a beneficiary upon your death. This section gives you an overview of various options available to you at retirement. Option 1 This retirement option provides a lump -sum payment of your remaining member contributions to your beneficiary after your death. The reduction to your monthly benefit to provide this payment is based on your life expectancy at retirement and the amount of your contributions. You may name one or more beneficiary(ies), and can name a new beneficiary at any time. If you name someone other than your spouse or registered domestic partner as your Option 1 beneficiary(ies), upon your death your spouse or domestic partner may still be entitled to a community property share of any remaining contributions. The following options 2, 2W, 3, 3W, and 4 provide lifetime monthly benefits to your designated beneficiary. The reduction to your monthly benefit to provide a monthly allowance to your beneficiary is based on both your life expectancy at retirement and your beneficiary's — the younger your beneficiary; the greater the reduction. If you have someone eligible for Survivor Continuance, the reduction is applied only to the option portion ofyour allowance. (Seepage 9 for more about Survivor Continuance.) In most cases, you may name only one beneficiary, and your designation may not be changed after retirement except under limited circumstances. You may name someone other than your spouse or registered domestic partner for a lifetime death benefit allowance under options 2, 2W, 3, 3W or 4. However, your spouse or registered domestic partner may be entitled to a community property share of the beneficiary's monthly death benefit. Option 2 The same retirement allowance you receive will be paid to your beneficiary for life. If Survivor Continuance applies (See Page 9), and your beneficiary is not your eligible survivor, the beneficiary's allowance will not include the Survivor Continuance portion. Your retirement allowance will increase to the Unmodified Allowance if: Your beneficiary dies; or Your non -spouse or non -domestic partner beneficiary waives entitlement to the Option 2 benefit. 888 CaIPERS (or 888-225-7377) 1 www.calpers.ca.gov Your beneficiary is your spouse or domestic partner legally recognized in California and upon a divorce, legal separation, termination of partnership, or annulment you provide CalPERS with a judgment that awards you the entire interest in your CalPERS benefits; and You notify CalPERS of the change. Option 2W As an alternative to the Option 2, you may elect the slightly higher allowance under Option 2W. However, your allowance will not increase to.the Unmodified Allowance under the situations described in Option 2. Option 3 In this option, one-half of your monthly retirement allowance will be paid to your beneficiary for life. If Survivor Continuance applies (See Page 9), and your beneficiary is not your eligible survivor, the beneficiary's allowance will not include the Survivor Continuance portion. Your retirement allowance will increase to the Unmodified Allowance if: • Your beneficiary dies; or • Your non -spouse or non -domestic partner beneficiary waives entitlement to the Option 3 benefit; • Your beneficiary is your spouse or domestic partner legally recognized in California and upon a divorce, legal separation, termination of partnership, or annulment you provide CalPERS with a judgment that awards you the entire interest in your CaIPERS benefits; and • You notify CalPERS of the change. Option 3W As an alternative to the Option 3, you may elect the slightly higher allowance under Option 3W. However, your allowance will not increase to the Unmodified Allowance under the situations described in Option 3. Option 4 Option 4 is a somewhat flexible option. There are several unique variations of Option 4, each specifically designed to mesh with various situations that might apply to you. If you are interested in choosing a lifetime option, you should familiarize yourself with these options by obtaining the CalPERS publication A Guide to CaIPERS Retirement Option 4 The amount payable to your beneficiary under Option 4 cannot exceed the amount payable under Option 2W. In addition, with any variation of Option 4, your allowance will not increase to the Unmodified Allowance under the situations described in Option 2 or 3. CalPERS Member Publication I Local Miscellaneous Survivor Continuance In making a decision about whether to reduce your Unmodified Allowance to provide for a beneficiary, you will want to consider if your employer offers Survivor Continuance. This is a contracted employer -paid benefit that public agency employers can offer you. This benefit consists of a monthly allowance that automatically continues to an eligible survivor following your death after retirement regardless of the retirement option you select. Who is Eligible? • Your spouse, if you were married for at least one year before your retirement and remained married until the date of your death, will receive the Survivor Continuance benefit for life. (For disability retirement, you need only to have been married at retirement and remained married until the date of your death.) Your domestic partner, if you were legally registered at least one year prior to your retirement and continuously until your death, will receive the Survivor Continuance benefit for life. (For disability retirement, you need only to have been registered as domestic partners at retirement and remained registered until the date of your death.) If you do not have an eligible spouse or registered domestic partner, your natural or adopted children under age 18, who have never been married, will receive this monthly benefit until marriage or age 18. A child who was disabled prior to age 18, never married, and whose disability has continued without interruption will receive this benefit until the disability ends or until marriage. Qualifying financially -dependent parents; if none of the above. 888 CaIPERS (or 888-225-7377) 1 www.calpers.ca.gov i ATTACHMENT RESOLUTION NO. 2009-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE RESOLUTION BETWEEN THE CITY AND THE NON -ASSOCIATED EMPLOYEES REGARDING SUPPLEMENTAL RETIREMENT BENEFIT OPTIONS WHEREAS, the City Council of the City of Huntington Beach adopted Resolution No. 2007-89 for the purpose of modifying the salary and benefits for Non -Associated employees (NA), NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Effective 6l16/08 , Section IV A.2. of Resolution 2007-89 between the City's Non Associated employees and the City of Huntington Beach is hereby amended to read as follows: 2. Self Funded Supplemental Retirement Benefit In the event a Non -Associated employee member elects Option #1, #2, #2W, #3, #3 W 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. SECTION 2. Except as modified, existing benefits shall remain in effect. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of March , 2009 Mayor REVIEj D/AND APPROVED: I INITIq-T-VIyj(ND APPRO City/h"nistrator Xrextor of Human Resources OVED AS TO FORM: ity Attorney 26360 Res..No. 2009-1 9 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, 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 an regular meeting thereof held on March 16, 2009 by the following vote: AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hardy, Hansen NOES: None ABSENT: None ABSTAIN: None Cit Jerk and ex-officio rk of the City Council of the City of Huntington Beach, California ell Council/Agency Meeting Held: Deferred/Continued to: I)d Ap ove ❑ CoAnditionally prov�edd ❑ Denied .��° Ci Jerk' Sign e Council Meeting Date: 12/17/07 Department ID Number: 07-20 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND Cl SUBMITTED BY: PENELOPE CULB PREPARED BY: MICHELE CA SUBJECT: ADOPT A REE NON-REPR E :IZ FT/bPA, CIT°A, __IINISTRATOR CES ION TO MODIFY SALARY AND BENEFITS FOR D (NON -ASSOCIATED) EMPLOYEES Statement of Issue, Funding Source, RecomrrFended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: It is recommended the Resolution that authorizes the salary and benefits for non -represented (Non -Associated) employees be modified. Funding Source: Funding is contained in the current Fiscal Year 2007/2008 budget. The cost to implement the changes in Fiscal Year 2007-08 is $103,421. The cost to implement the changes in Fiscal Year 2008-09 is $106,523. Total Cost = $209,944. Recommended Action: Adopt Resolution No. 2007- 89 , a resolution of the City Council of the City of Huntington Beach modifying salary and benefits for non -represented (Non -Associated) employees. Alternative Action(s): Do not approve Resolution No. 2007- 89 and maintain the current salary and benefits for Non -Represented (Non -Associated) employees and direct staff accordingly. REQUEST FOR ACTION MEETING DATE: 12/17/07 DEPARTMENT ID NUMBER: 07-20 Analysis: The modifications involve wages, health benefit costs and enhanced retirement (CaIPERS 2.5% at 55 benefit formula). Highlights from the listing of proposed pay and benefit changes include the following: Wage Increases ® 3.0% wage increase effective December 29, 2007. ® 3.0% wage increase effective December 27, 2008. Health Benefits The amount allocated for the Medical Cash Out provision increased from $200 per month to the equivalent of the lowest cost, employee -only medical premium. For the 2008 benefit plan year this is equivalent to $316.16 per month. Retirement The City will implement the CaIPERS 2.5% @ 55 Retirement Plan Formula, subject to acceptance by all affected units. Non -Associated employees would absorb all of the additional costs of the enhanced plan formula from the implementation date through December 26, 2008. Thereafter, Non - Associated employees will absorb 2.25% of the employee share of the additional costs for the enhanced retirement plan benefit formula. The costs to implement the wage, health and retirement benefit changes are estimated as follows: Fiscal Year 2007/2008: $103,421 Fiscal Year 2008/2009: $106,523 Total Cost: $209,944 Strategic Plan Goal: Not applicable Environmental Status: Not applicable Attachment(s): 1. Resolution No: 2007- 89 Resolution to adopt a pay and benefits resolution for Non -Represented (Non -Associated) employees for the period December 29, 2007 through December 27, 2008, including Exhibit A. -2- 12/11/2007 11:24 AM ATTACHMENT RESOLUTION NO. 2007-89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR NON -REPRESENTED EMPLOYEES WHEREAS, the City Council of the City of Huntington Beach desires to modify salary and benefits for non -represented employees upon adoption of this resolution, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Salaries and benefits for non -represented employees shall be as reflected in EXHIBIT A. SECTION 2. Except as modified, existing benefits shall remain in effect. SECTION 3. Any resolution in conflict herewith, whether by minute action or resolution of the City Council heretofore approved, is hereby repealed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of December , 2007 REVIEWED AND APPROVED: Ci Admin trator �Y Mayor APPROVED AS TO FORM: ffC ttorney INITIA AND APPROVED: Deputy City Administrator -City Services Exhibit "A" Resolution No. 2007-89 EXHIBIT A Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUI'ION EXHIBIT A - NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISION................................................................................................... 1 SECTIONI PAY.......................................................................................................................1 A. SALARY SCHEDULE .............................................. B. DIRECT DEPOSIT..................................................................................................................................1 C. ASSIGNED VEHICLE/AUTO ALLOWANCE........................................................................................1 1. Department Heads........................................................................................................................................................I SECTION II — HOURS OF WORK/OVERTIME/TIME OFF............................................1 A. ExEcunvE LEAVE..............................................................................................................................1 B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES .......................... 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.........................................................................................................................................................7 4. Section 125 Plan ...................................................................................................7 ......................................................... B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE.........................................7 C. LONG TERM DISABILITY INSURANCE...............................................................................................7 D. CITY PAID PHYSICAL EXAMINATIONS..............................................................................................8 E. Mis ELLANEOUS..................................................................................................................................9 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREESUBSIDY PLAN......................................................................................................................8 G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE...........................................................................8 SECTION IV— RETIREMENT.............................................................................................9 A. BENEFITS...............................................................................................................................................9 1. Public Employees' Retirement System ........................................ 2. Self -Funded Supplemental Retirement Benefit.......................................................................................................9 3. Medical Insurance for Retirees............................................................................................................I......................9 4. 2.5 Percent at Age 55 Formula...................................................................................................................................9 5. Three Percent (30/6) at Age 50 Formula..................................................................................................................10 6. Pre -Retirement Optional Settlement 2 Death Benefit.........................................................................................10 7. Fourth Level of 1959 Survivor Benefits.................................................................................................................10 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING....................10 1. Employees' Contribution..........................................................................................................................................10 SECTION V —LEAVE BENEFITS........................................................ ....................10 A. GENERAL LEAVE................................................................................................................................10 I. Accrual.........................................................................................................................................................................A0 2. Eligibility and Approval................................................................. 3. Leave Benefit Entitlements......................................................................................................................................11 4. Conversion to Cash....................................................................................................................................................11 Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. HOLIDAYS AND PAY PROVISIONS....................................................................................................12 CSICK LEAVE.........................................................................................................................................12 1. Accrual..........................................................................................................................................................................12 2. Credit............................................................................................................................................................................12 3. Usage.............................................................................................................................................................................12 4. Pay Off at Termination..............................................................................................................................................12 D. BEREAVEMENT LEAVE......................................................................................................................13 E. VOLUNTARY CATASTROPHICLEAVE DONATIONPROGRAM......................................................13 SECTION VI — RETIREE SUBSIDY MEDICAL PLAN.....................................................13 SECI'ION VII - MISCELLANEOUS....................................................................................14 A. COLLECITON OF PAYROLL OVERPAYMENTS ........................................ ....14 ..................................... B. UNIFORMS AND CALPERS REPORTING.........................................................................................14 EXHIBIT 1- NON -ASSOCIATED SALARY SCHEDULE.................................................15 EXHIBIT 2 - RETIREE MEDICAL. PLAN..........................................................................18 EXHIBIT 3 - 9/80 WORK SCHEDULE...............................................................................22 EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION .............................24 Non Associated Final 12-17-07 - Reso ii Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS EXHIBIT A SECTION I — PAY A. Salajy Schedule L All current Non -Associated employees shall receive the salaries as identified in Exhibit 1, except for those elected employees 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 Administrator is authorized to set the salaries of the nonelected executive management positions identified in Exhibit 1 at any rate at or below the control point of the designated salary range. The City Administrator 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 maybe set above the control point at anytime 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 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. 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. 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 Non Associated Final 12/17/07 Exhibit "A" Resolution No. 2007-89 A NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the Gty Administrator or designee. 3. Alternative Work Schedule Non -associated employees may elect any alternative work schedule approved by the City Administrator or designee. SECTION III - HEALTH AND OTHER INSURANCE BENEFITS Health Insurance 1. Medical, Dental and Vision Insurance The city shall continue to make available group medical, dental and vision benefits to all Non - Associated employees. 2. Utyand 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. Non Associated Final 12-17-07 - Reso NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i. Health Plan Employee and Employer Contributions Chart for Classifications in EXHIBIT 1 Employer Contributions effective January 16, 2007 — December 31, 2007 Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2008 Health Premiums and Contributions Effective 1/1/2008 — 12/31/2008 Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION ii "Safety Member" Health Premiums — Employer Contribution Employees that are classified as "safety member" by the California Public Employees' Retirement System (CalPERS) may have access to the medical plans offered by Ca1PERS as contracted by the City. In accordance with eligibility provisions, the Police Chief and the Fire Chief may elect to enroll in the Ca1PERS health insurance program offered by the City. The City's maxu* num monthly employer contributions for the CaIPERS health insurance program is set forth in the chart below. The amounts listed below include the mandated Public Employees' Medical and Hospital Care Act (PEMHCA) contribution. Employer contribution rates effective January 16, 2007 — December 31, 2007 Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION NA— Safety 2008 Health Premiums and Contributions - Effective 01/01/2008—12/31/2008 Non Associated Final 12-17-07 - Reso MA 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 bythe 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 employee and employer contributions rates set forth in sections ii and iii above shall remain in effect in 2009 and beyond unless otherwise modified by successor Non- Associated Resolution. 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), they may elect to discontinue city medical coverage and receive one -hundred forty six dollars, ($146.00) 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 Disab Insurance This program provides for each incident of illness or injury, 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). 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 =' bduty to perform all of the &ai6 of regular omjwtion &ang tzzo yan and drmfter- the inability to awge zn arty errp4,;, ru or afatz64 for ubiah he/she is fi&& by mason ca b*atiw traimT or experiam " 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 copyof the plan is on file in the Human Resources Department. Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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: 1. A complete medical history, physical exam and review of results byphysician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 4. 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 City Medical Retiree Subsidy 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 fast 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 - Eligibility for Retiree Medical Coverage terminates the fast 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. Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 City sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for this insurance. SECTION IV— RETIREMENT A Benefits 1. Public Employees' Retirement System Non -Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self -Funded Supplemental Retirement Benefit In the event a Non -Associated employee member elects Option # 2 (Section 21456) or Option # 3 (Section 21457) 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. 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. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the city's group health insurance program at the equivalent of the city's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph IV.A.3.a above, the city will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. 4. PERS 2.5% (& 55 If all other affected units agree, and subject to a formal ratification vote conducted by PERS, the City shall implement PERS 2.5% @ 55 retirement formula, effective as soon as possible. Effective the beginning of the fast pay period following implementation through December 26, 2008, the employees shall pay all of the additional costs to implement 2.5% @ 55 retirement formula. Non Associated Final 12-17-07 - Reso Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Effective December 27, 2008 and thereafter, the employees shall pay two and one -quarter percent (2.25%) of the employee share of PERS. 5. Three Percent (3%) at Age 50 Formula Non -Associated employees classified as "safety" employees are covered by the three percent at age 50 formula (3% @ 50) as identified in Section 21362.2 of the California Government Code. 6. 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. 7. Fourth Level of 1959 Survivor Benefits Non -Associated employees shall be covered bythe Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 of the California Government Code. B. Public Employees' Retirement System Reimbursement and Reporting Employees' Contribution Non -Associated employees shall be reimbursed bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution or portion of such contribution to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 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 Non Associated Final 12-17-07 - Reso 10 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. Members shall not be permitted to take general leave in excess of actual time earned. Members 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. Conversionto Cash Two times during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred -twenty (120) general leave benefit hours per fiscal year. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. C. One Week Minimum Vacation Requirement The City Administrator 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. Non Associated Final 12-17-07 - Reso 11 Exhibit "A" Kesolutlon No. NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. 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. 2. Credit Employees assigned to Non -Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. UsaQe 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. Pay Off at Termination a. Non Associated employees with continuous service with the city since November 20, 1978 shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d below. Non Associated Final 12-17-07 - Reso 12 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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.C2.c below. C. Except as provided in paragraph V.CS.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 maybe utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non -Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.S.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 compensabl 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 is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by72 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 6. 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 4. Non Associated Final 12-17-07 - Reso 13 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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 bypayroll 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 Administrator or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05). B. Unifomis and CAPERS 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 (Ca1PERS) 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). Non Associated Final 12-17-07 - Reso 14 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 1 NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE January 16, 2007 job Type Description Pay Grade 1/16/07 Starting Point Control Point High Point 0510 Deputy City Administrator 703 $72.68 $80.90 $90.04 0009 Director of Building Safety 681 $65.12 $72.48 $80.68 0014 Director of Community Services 697 $70.53 $78.50 $87.38 0008 Director of Econ Development 681 $65.12 $72.48 $80.68 0574 Director of Human Resources 681 $65.12 $72.48 $80.68 0479 Director of Info Services 681 $65.12 $72.48 $80.68 0007 Director of Library Services 668 $61.03 $67.93 $75.61 0021 Director of Planning 681 $65.12 $72.48 $80.68 0010 Director of Public Works 697 $70.53 $78.50 _ $87.38 0518 Finance Director 697 $70.53 $78.50 $87.38 0015 Fire Chief 709 $74.88 $83.35 $92.77 0011 Police Chief 709 $74.88 $83.35 $92.77 0016 Ci Attorne 740 $87.41 $97.29 $108.29 0017 City Clerk 668 $61.03 $67.93 $75.61 0018 City Treasurer 681 $65.12 $72.48 $80.68 0007 Director of Library Services 668 $61.03 $67.93 $75.61 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 1 NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE December29, 2007 Non Associated Final 12/17/07 16 job Type Description Pay Grade 12/29/07 Starting Point Control Point High Point 0510 Deputy City Administrator 709 $74.88 $83.35 $92.77 0009 Director of Budding &Safe 687 $67.11 $74.69 $83.13 0014 Director of Community Services 703 $72.68 $80.90 $90.04 Director of Econ Develoment 687 $67.11 $74.69 $83.13 Director of HumanResources 687 $67.11 $74.69 $83.13 r Director of InfoServices 687 $67.11 $74.69 $83.13 Director of Library Services 674 $62.89 $70.00 $77.91 0021 Director of Planning 687 $67.11 $74.69 $83.13 0010 Director of Public Works 703 $72.68 $80.90 $90.04 0518 Finance Director 703 $72.68 $80.90 $90.04 0015 Fire Chief 715 $77.17 $85.89 $95.59 0011 Police Grief 715 $77.17 $85.89 $95.59 0016 City Attorney 746 $90.07 $100.25 $1ll.58 0017 Ci Gerk 674 $62.89 $70.00 $77.9 i _ 0018 Ci Treasurer 687 $67.11 $74.69 $83.13 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 1 NON -ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE December27, 2008 job Type Description Pay Grade 12/27/08 Starting Point Control Point High Point 0510 Deputy City Administrator 715 $77.17 $85.89 $95.59 0009 Director of Building & Safety 693 $69.15 $76.96 $85.66 0014 Director of Community Services 709 $74.88 $83.35 $92.77 0008 Director of Econ Development 693 $69.15 $76.96 $85.66 0574 Director of Human Resources 693 1 $69.15 $76.96 $85.66 0479 Director of Info Services 693 $69.15 $76.96 $85.66 0007 Director.of Lib Services 680 $64.80 $72.12 1 $80.28 0021 Director of Planning 693 $69.15 $76.96 $85.66 0010 Director of Public Works 709 $74.88 $83.35 $92.77 0518 Finance Director 709 $74.88 $83.35 $92.77 0015 Fire Chief 721 $79.51 $88.49 $98.50 0011 Police Chief 721 $79.51 $88.49 $98.50 0016 y Attorney Gt 752 $92.81 $103.30 $114.97 0017 City Clerk 680 $64.80 $72.12 $80.28 0018 City Treasurer 693 $69.15 $76.96 $85.66 i Non Associated Final 12-17-07 - Reso 17 Exhibit "A" Resolution No. 2007-89 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 bythe 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 anyone 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 fast apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the city's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the city's medical plans shall be governed by applicable plan document. 2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits 1. 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. 2. DisabilitxRetirees 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. Non Associated Final 12-17-07 - Reso 18 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 3. Maximum Monthly Subs idyPayments 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 Non Associated Final 12-17-07 - Reso 19 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION MISCELLANEOUS PROVISIONS A Eh'gibilicv: 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 Administrative Services 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. Retiree Subsidy Medical Plan includes Managed Health Network Qvfl iN, Prescription Card System (PCS), Orange County Foundation for Medical Care (OCFMC) and Medical Stop Loss insurance. 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. Retiree Subsidy Medical Plan. c. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. b. Regular City Employee Indemnity Plan. c. Any other employee benefit plan. d. Any other commercially available benefit plan. e. 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, Pan B of Medicare is paid for by the participant. Non Associated Final 12-17-07 - Reso 20 MAU 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 Aonly. 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 snake 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 prerniums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. Non Associated Final 12-17-07 - Reso 21 Exhibit "A" Resolution No. 2007-89 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 OtyAdrninistrator or designee. A. Fogy (40) Hour FLSA Work Week The actual FLSA workweek is from Friday at mid -shift (p.m.) to Friday at mid -shift (am.). 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.n-L 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 WeekPavPeriod The pay period for employees starts Friday mid -shift (p.m) and continues for fourteen (14) days until Friday mid -shift (am.). 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 am. 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: A Schedule - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. A/B Schedule Changes FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor or City Administrator approval. E. EmeWencies 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 Administrator, 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. Non Associated Final 12-17-07 - Reso 23 Exhibit "A" Resolution No. 2007-89 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. Employees wanting to make donations will submit an Authorization for Donation to the Hunan Resources Division (payroll). Non Associated Final 12-17-07 - Reso 24 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 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. Non Associated Final 12-17-07 - Reso 25 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated vacation, general leave or compensatory time. MY SIGNATURE CERTIFIES THAT: • A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and • I am not receiving disabilitybenef its or Workers' Compensation payments. Please submit this form to the Human Resources Department Non Associated Final 12-17-07 - Reso 26 Exhibit "A" Resolution No. 2007-89 NON -ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete 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: ate: Please submit to the Human Resources Department. Non Associated Final 12-17-07 - Reso 27 Res. No. 2007-89 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, 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 December 17, 2007 by the following vote: AYES: Bohr, Coerper, Green, Carchio NOES: Hansen, Hardy, Cook ABSENT: None ABSTAIN: None CK Clerk and ex-offici Clerk of the City Council of the City of Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT: HUMAN RESOURCES SUBJECT: PAY AND BENEFIT RESOLUTION FOR NON - REPRESENTED (NON -ASSOCIATED) EMPLOYEES COUNCIL MEETING DATE: DECEMBER 17, 2007 RCA ATTACHMENTS STATUS . Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not A plicable Contract/Agreement (w/exhibits if applicable) AttachedNot Applicable ❑ (Signed in full by the City Attorney) Subleases, Third Party Agreements, etc. Attached Not Applicable ❑ (Approved as to form by City Attorney) Certificates of Insurance (Approved b the CityAttome pproved y y) Attached Not Applicable El Fiscal Impact Statement (Unbudget, over $5,000) Attached Not Applicable ❑ Bonds (If applicable) Attached Applicable ElNot Staff Report (If applicable) AttachedNot Applicable ❑ Commission, Board or Committee Re ort If applicable p ( pp ) Attached Not Applicable ❑ Findings/Conditions for Approval and/or Denial AttachedNot Applicable ❑ EXPLANATION i i EXPLANATION FOR RETURN OF ITEM: RCA Author: MICHELE CARR