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HomeMy WebLinkAboutDahle Bulosan - 2020-03-16 City of Huntington Beach <I File #: 20-1502 MEETING DATE: 3/16/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Travis K. Hopkins, PE, Assistant City Manager Subiect: Approve the appointment of Dahle Bulosan to the position of Chief Financial Officer (CFO) and authorize the City Manager to execute the employment agreement Statement of Issue: The City's Chief Financial Officer resigned in May of 2019. To fill this critical leadership position, a national recruitment was conducted for the position of Chief Financial Officer. Based on a thorough process to include a panel interview, Department Head meetings, and background and reference checks, the City Manager is recommending the appointment of Dahle Bulosan to the position. Financial Impact: Funding for this position is included in the FY 2019/20 budget. Recommended Action: Approve and authorize the City Manager to execute the "Employment Agreement Between the City of Huntington Beach and Dahle Bulosan" for the position of Chief Financial Officer. Alternative Action(s): Do not approve the appointment of Dahle Bulosan for the position of Chief Financial Officer and direct the City Manager to re-launch a national recruitment. Analysis: The position of Chief Financial Officer has been vacant since May 2019 due to the resignation of the former incumbent, thereby creating the need to fill the department head vacancy. The City Manager authorized Human Resources to launch the recruitment for the Chief Financial Officer in January of 2020. The City received 65 applications for the position. Eleven (11) individuals were selected form the applicant pool for an extensive screening process. The top five (5) candidates were invited to an interview process with two panels, a technical panel with external seasoned leaders in the financial community and a second panel of the City's Executive (Department Head) team. The panels jointly recommended two finalist. City of Huntington Beach Page 1 of 2 Printed on 3/13/2020 powereW LegistarM File #: 20-1502 MEETING DATE: 3/16/2020 The City Manager and Assistant City Manager conducted follow-up interviews with each of the finalists. After full and deliberate consideration, the City Manager recommends City Council approval to appoint Dahle Bulosan to the position of Chief Financial Officer, effective March 16, 2020. Mr. Bulosan has over 20 year of both private and municipal financial experience. In the private sector, he has held positions as a Senior Accountant, Accounting Manager and a staff accountant before moving to municipal government. In the government sector, he has held a position with the Retirement Housing Foundation before coming to the City of Huntington Beach in 2006. Mr. Bulosan was progressively promoted during his career in the Huntington Beach Finance Department. He has held positions including Senior Accountant, Senior Administrative Analyst, Acting Budget Manager, Accounting Manager, and Finance Manager - Accounting. Most recently, he has been filling the position of Acting Chief Financial Officer for over four months. Mr. Bulosan holds a Bachelor of Business Administration from the University of Hawaii at Manoa and a Masters of Business of Administration from California State University Long Beach. He is also a member of the Phi Delta Gamma National Graduate Honor Society Member. The contractual compensation is recommended at Non-Associated/Executive Management Pay Grade NA 0518, Step B ($85.27 hourly). The annual salary is $177,362. All other benefits provided are generally applicable to the former incumbent and/or non-associated employees (department heads) hired after 12/27/1997, as set forth in Huntington Beach City Council Resolution No. 2014-32. Environmental Status: N/A Strategic Plan Goal: Enhance and modernize public safety service delivery Attachment(s): 1. Chief Financial Officer Recruitment Brochure 2. Resume, Dahle Bulosan 3. Employment Agreement including Exhibit A, Resolution 2016-50 City of Huntington Beach Page 2 of 2 Printed on 3/13/2020 powered LegistarTI , l CITY OF . . CALIFORNIA x f d �r �e 1 slit,, .......... .• . _. . . a. .�,: CHIEF FINANCIAL OFFICER , . , Rs. m GOVERNMENTCITY OPPORTUNITY TO SERVE TheCityof Huntington Beach is recruiting for a highly experienced Huntington Beach was incorporated Chief Financial Officer(CFO)to manage the day-to-day activities as a Charter City in 1909 and of the Finance Department. The successful candidate will be has a Council-Manager form of a people centered leader who is team focused and outcome government. The City Council has driven with a strong background in all aspects of government seven members who are elected at financial management and a strong track record for providing large, on a non- partisan basis, to outstanding financial services to internal and external customers. four-year overlapping terms. City Council members are limited to two consecutive 4-year terms. SURF CITY USA There are three elected department heads - the City Attorney, The City of Huntington Beach is located on the shore of the City Clerk, and City Treasurer. The position of Mayor is filled on Pacific Ocean in northwestern Orange County, 40 miles south a rotating basis. of Los Angeles and 90 miles north of San Diego. As the fourth largest city in Orange County, with a population approximating The City of Huntington Beach is organized into 13 departments 200,000 residents, Huntington Beach is known as"Surf City USA" including City Attorney,City Clerk,City Manager,City Treasurer, due to its abundance of beaches, sunny, warm Mediterranean Community Development, Community Services, Finance, Fire, climate and casual lifestyle. Huntington Beach covers nearly 28 Human Resources, Information Services, Library Services, square miles of land, 26 square miles of water, and is the 24th Police, and Public Works. The City has approximately 1,000 full- largest city in California. With 10 miles of uninterrupted beach time employees and an all-funds total budget of approximately along the Pacific Ocean, the City also plays host to an annual $373 million. visitor population of over 11 million people. Huntington Beach has consistently been named one of the "Best Cities to Live In" in Orange County by the readers of the Orange County Register. FINANCE DEPARTMENT ORGANIZATION CHART Huntington Beach has one of the largest pleasure piers in the I Offi— world and has the longest concrete pier in the State. The City's 4"R� °"'«F,"a" --park system includes 58 public parks (including a dog park), _ --- Mamin C�.I FnanGBl Olf�er riding stables, and the largest city-owned and operated regional park in Orange County, Huntington Central Park. Also, withinIN �� i the City's boundaries are five recreation centers (including a senior center), three miles of equestrian trails, two golf courses, ( c CASMIE1SNGa i ACCOl1MINO 9ERY1�3� BUDGET I.MNhGEMENf y TCIXLEGTgN39HtNCE3� FbGLSEiMCE3 72 tennis courts, a marina and a protected wildlife preserve. Running parallel to Pacific Coast Highway and just steps from the ^�^ �a^� ` �M°°°� Rim MN -Terry bul,a� 'y Swlbl"T M T ocean is an eight-mile strand perfect for biking, inline skating, A ^ s. r:FRenan4m ii 'tl° "" (0s7 "A0""0� om^ (? Senor Mco — TecM1Ytlan jogging, or a leisurely stroll. Sa' P¢wnaiq Ternnaan cscuicmu� Sant Ma MT— I u g T m (2) - I¢awYp TCMCYn II(2) Frcwr2ry TeclnCen II G7 FW SarMca RgtiwMalM There are 35 elementary schools, five public high schools and se Fand Tern n 1�) I,. I�a,nuq Tecmnan n buw(2) one community college (Golden West College) located within Huntington Beach. The City has a world-class Central library as well as four additional branch libraries. The University of Priorities for the new Chief Financial Officer include: California, Irvine and two California State universities in Long • As part of becoming familiar with how the department op- Beach and Fullerton are located in close proximity. erates, conduct assessment of how the Finance Department serves its internal and external customers, including a review There are over 80,000 households within the city. The median of the City's and Department's financial policies and practices; annual family household income is nearly$85,000 ranking as one of the highest in the nation. In 2017.the median home value was • Spend considerable time getting to know the department approximately$675,000. team,the existing culture and organizational climate; • Develop options to address current and ongoing CalPERS un- funded accrued liabilities; • Implement policies and processes to address SB998 require- ments for water service; �� • Upgrade JD Edwards,the City's enterprise financial system; • Ensure completion of testing and implementation of the Ac- cella Enterprise Land Management system as it relates to the k Finance Department functions(business license and develop- ment fee collection); •Develop a long-term financial plan to address the City's future capital and operational needs; • Develop a strategy to improve and maintain the City credit ratings; • Update the City's reserve policy to ensure�ly-ng-term fiscal sustainability; CHIEF FINANCIAL OFFICER � The Chief Financial Officer(CFO) is appointed by the City Manager and reports to the Assistant City Manager. The CFO is responsible ,e for directing the financial and central services activities of the City, which include accounting,banking, budget and research,cash collec- tion and management, utility billing, accounts receivables, business tax management,central stores/warehouse,purchasing,reprographic and mail delivery services. The CFO coordinates assigned activities with other City departments and outside agencies;and provides high- ly responsible and complex administrative support to the City Manag- er.The new CFO will work closely with the City Managers Office and will be directly responsible for leading a Department of approximately 33 full-time employees with an operating budget of$6 million. IDEAL CFO CANDIDATE Of primary importance, the City of Huntington Beach is seeking a municipal finance executive who embraces an authentic servant leadership style grounded in humility, and who understands and . Community oriented.Someone able to see the strengths,as- values the critical importance that people play in building a suc- sets, and potential within a community, and an individual who cessful organization. The ideal candidate for the position of CFO operates with a profound respect for understanding the aspira- in Huntington Beach should also be a selfless leader who has a tions and needs of the people in Huntington Beach. deep and granular understanding of all facets related to a munici- pal finance department. • Innovative and flexible. Someone able to see beyond what currently exists and is constant in their pursuit of realistic game- The successful individual will need to absolutely and authen- changing breakthroughs for the Huntington Beach organiza- tically... tion. • ...be willing to put the needs of the team ahead of any personal desires or ambitions. • Obsessive about outcomes. Someone who makes data-driv- en decisions and stays laser-focused on truly audacious goals • ...have a high level of emotional intelligence, and a genuine while balancing the day-to-day needs of the organization. love and passion for people. • A strategic problem-solver. Someone able to break large • ...demonstrate a desire to engage in the truly hard work need- problems into smaller, manageable pieces, and then works to ed for an agency to be premier. identify trends and prioritizes solving the root cause of issues. Other key traits for our ideal Finance Director include: • Intellectual curiosity. Someone who is an excellent listen- • A relationship builder and connector. Someone who can er, and who applies strong critical thinking skills and business quickly forge strong, trusting relationships with diverse sets of judgement to complex issues. people, and readily inspires others to action. • Self-driven. Someone with superior written, organizational, • Leadership through consensus. Someone who is an ap- and project management skills who follows-through on all fac- proachable consensus builder but is also capable of indepen- ets of work. dent and decisive thought and action; • A polished and professional demeanor. Someone who will • A keen sense of ethics. Someone who recognizes the impor- take great pride in representing the Huntington Beach commu- tance of personal and organizational integrity, and someone nity, and one who will serve as an ambassador for the City. comfortable raising and discussing ethical issues with the goal of"doing what's right," not "being right." • A sense of humor. Someone who understands that even the best laid plans can go wrong and has the self-confidence to course-correct with humor and grace. } ESSENTIAL DUTIES INCLUDES: i • Assists in directing the fiscal management of the City, including - budget preparation and monitoring, revenue forecasting, gen- ` � eral accounting, financial reporting, pre-auditing and internal a controls, debt issuance and administration, capital financing, financial systems design, implementation and control; • Plans, directs and coordinates the administration of the City's finance, purchasing, utility billing, business licensing, repro- graphic and mail services; • Ensures that all activities are conducted in accordance with re- lated laws, ordinances, rules and regulations; 151 • Assists in ensuring that the financial needs of the City are met; vanced accounting,auditing,cost accounting,and business law. A Certified Public Accountant credential is preferred. • Raises funds through creative financing, bond issues, certifi- Experience: Six (6) years of responsible financial management cates of participation and lease purchase financing; evaluates alternative financing methods for all major acquisitions; super- experience including at least four(4)years as a supervisor. vises and controls capital financing projects; COMPENSATION AND BENEFITS • Advises department heads and the City Manager in the review The salary range for the Chief Financial Officer is $168,105.60) - of estimates and proposed budget allocations for the City; $208,270.40)and placement within this range is dependent upon qualifications • Estimates anticipated revenues; conducts fiscal analyses and submits data and reports for use in evaluating operating de- The City also offers an attractive benefits package that includes: partment proposals; • Retirement — The City participates in the California Public Employees Retirement System (CaIPERS) under a 2.5% @ 55 • Provides the City Manager and department heads with timely Miscellaneous benefit formula for Classic Members; Members and informative financial reports and statements; contribute the 8%employee share. New Members are under a 2%@ 62 miscellaneous benefit formula and contribute a 6.25% • Manages and participates in the development and administra- employee share. The City does not pay into Security; however, tion of the Finance budget; all employees pay 1.45%towards Medicare. • Directs the forecast of additional funds needed for staffing, • Insurance — Health (medical/dental/vision), life, and disability equipment, materials, and supplies; insurance is provided by the City. IRS Section 125 medical and dependent care reimbursement plan (FSA) is available. • Conducts and/or oversees complex studies relating to the de- velopment of rates,fees and user charges; prepares and super- • Deferred Compensation—457 plans available. vises the preparation of reports to the State Controller, County Auditor Controller and other Federal, State or County agen- e Group Life Insurance—The City offers$50,000 of life insurance cies; coverage, with employee option to purchase additional life in- surance. • Selects,trains, motivates and evaluates finance personnel; pro- vides or coordinates staff training; works with employees to • Leave — General leave— 176 hours per year for the first five correct performance deficiencies; implements discipline and years of service—in lieu of sick/vacation leave. termination procedures; plans, directs and coordinates work plans through subordinate level managers; meets with staff to • Executive Leave—80 hours per calendar year. identify and resolve problems; assigns projects and program areas of responsibility; reviews and evaluates work methods • Auto Allowance—$500 per month. and procedures; SELECTION PROCESS • Performs other related duties. The CFO recruitment is being conducted on a national basis by The Hawkins Company. The firm will review all written materi- als submitted and will screen and evaluate all candidates. Only those deemed qualified will advance to the next level of the re- cruitment process. The most highly qualified candidates will be invited to participate in an on-site interview. All questions must be addressed to The Hawkins Company. - HOW TO APPLY Submit a letter of interest (address to WD Hawkins) and resume i electronically to cfo.hb@thehawkinscompany.com by January , tk, 2020. Preference is for electronic submissions. Materials received by January xx,2020 will receive first consideration.The position is open until filled. © THE HAWKINS COMPANY 8939 S.Sepulveda Blvd.,#110-216 Los Angeles,CA 90045 www.thehawkinscompany.com For additional information or confidential inquiry, please contact a member of our consulting team (The Hawkins Company). MINIMUM QUALIFICATIONS Bill Hawkins at213.308-0945,bill@thehawkinscompany.com Education: Equivalent to a Master's degree from a college or Ms.Brett Byers at 323-403-8279,brett@thehawkinscompany.com university with a major in accounting, finance, business or public Ms.YonnineHawkinsat323-252.1655,yonnine@thehawkinscompany.com administration,or closely related field,and including courses in ad- The City of Huntington Beach is an Equal Opportunity/ADA,�Wloyer. DAHLE M. BULOSAN, CPA, MBA OBJECTIVE My passion is to serve the City of Huntington Beach citizens and employees by ensuring the fiscal health of the organization through my extensive municipal finance experience, leadership, and team-oriented approach. SUMMARY OF QUALIFICATIONS • Over 20 years of progressive finance experience including over 13 years of municipal finance experience. Possess strong leadership, presentation,technical, analytical, and team-building skills. • Currently serving as the Acting Chief Financial Officer for the City of Huntington Beach. • Active member of Governmental Finance Officers Association and California Municipal Finance Officers Association. Possess a Certified Public Accountant License. • Proficient computer skills — JD Edwards Enterprise Financial System, Hubble Financial Reporting Software, Advanced Excel User. • Excellent written, verbal, and interpersonal skills having dealt with council members, commissioners, department heads and analysts, board of directors for various business improvement districts, inter- departmental management and staff, immediate peers, attorneys, bankers, and consultants. Exceptional analytical, organizational, and supervisory skills. Self-motivated: able to set and meet deadlines independently and efficiently. Education University of Hawaii at Manoa— Bachelor's in Business Administration—Major:Accounting May 1998 California State University of Long Beach—Master's in Business Administration—Finance emphasis May 2007 Phi Delta Gamma National Graduate Honor Society Member PROFESSIONAL EXPERIENCE City of Huntington Beach Acting Chief Financial Officer September 2006—Present Huntington Beach, California • Quickly progressed in the Finance Department over the last thirteen years due to proven leadership, communication, and technical skills. Positions held include the following: Senior Accountant (September 2006 — July 2007), Acting Principal Accountant (July 2007 — January 2008), Acting Senior Administrative Analyst (January 2008 —July 2008), Senior Administrative Analyst (July 2008 - April 2011), Acting Budget Manager (April — October 2011), Acting Accounting Manager (October 2011 —January 2012), Accounting Manager (January 2012 — November 2014), Finance Manager — Accounting (November 2014 — October 2019),Acting Chief Financial Officer(October 2019—Present) • Lead a team of up to 41 employees. Team members performed accounting, budget, payroll, purchasing, municipal services, business license, cashiering, accounts receivable, and accounts payable functions. • Instituted a strong team-oriented environment as Acting Chief Financial Officer through weekly email updates to team members to promote transparency; creation of an Encouragement Team to plan monthly celebrations and activities to foster a positive work culture; and emphasis of a servant and lead by example mindset with the Finance Department Leadership Team. • Hosted the first Huntington Beach Budget Process Roundtable to promote communication and collaboration with Citywide Departments and to improve the budget development process. Based on feedback received, 10 ideas discussed during the Roundtable will the implemented during the FY 20/21 budget development process. 1 153 DAHLE M. BULOSAN, CPA, MBA PROFESSIONAL EXPERIENCE (continued) • Assist in the development of the City budget and ensure budgetary compliance by departments. The City of Huntington Beach is a,full service City with Public Safety and Fire with $381 million All Funds and $232 million General Fund budget. • Prepared the Comprehensive Annual Financial Report, Popular Annual Financial Report, State Controller's Reports, and other required reports for the City. • Participated as an integral Finance Team member involved in the issuance of the Lease Revenue Bond for the construction of the City's new state of the art Senior Center and refunding of Community Facilities District and Lease Revenue Bonds. • Pioneered the establishment of an audit function within the Finance Department to increase compliance by concessionaires and hotels to increase revenues in the City. • Managed all aspects of the City's Accounting Function including the year-end audit. Presented year-end audit and financial results to City Council and the Finance Commission. • Championed the successful upgrade of the City's ERP Software, JD Edwards, as the Finance Department Lead for less than half of the initial cost projected. • Finance Department Lead for the implementation of the City's Financial Reporting Software, Hubble. • Significant contributor to the City's prior Long Term Financial Plan. Currently in the process of leading the development of the City's current Long Term Financial Plan. • Primary Liaison of the Citizen's Infrastructure Advisory Committee for the City's Charter required Infrastructure funding. Present annual results to the Committee. • Managed the Citywide Master Fee and Charges and presented recommended changes to City Council and the Finance Commission. • Implemented policies and processes to address SB998 requirements for water service. • Currently overseeing the process to issue potential Pension Obligation Bonds to address the current and ongoing CalPERS unfunded accrued pension liabilities. Also overseeing the development of a comprehensive Unfunded Pension liabilities policy to address future potential unfunded liabilities. Retirement Housing Foundation Accounting Supervisor May 2004—September 2006 Long Beach, California • Promoted from a Senior Accountant to Accounting Supervisor after a year of service at Retirement Housing Foundation. Responsibilities included over fifty affordable housing facilities across the United States (including Housing and Urban Development (HUD) Subsidized Properties and Tax Credit Facilities) with revenues of$10 million annually. • Lead the testing and implementation of a new Accounting Package (Great Plains—Accounting Software and Management Plus—Accounts Receivable Software)within the Affordable Housing Department. Developed policies and procedures for the new Software for both the Accounting Staff and On-site Facility Managers. • Supervised a staff of three Senior Accountants and one Staff Accountant. Responsible for reviewing and approving the work of the staff for final mailing of monthly financial statements. Involved in the interview, screening and hiring process within the department. • Prepared monthly financial statements and quarterly reporting packages to lenders and investors for more complex facilities, including tax credit facilities and development facilities. Responsible for addressing non- routine transactions for various facilities. • Researched significant budget to actual differences and provided periodic reporting to management. 2 154 DAHLE M. BULOSAN, CPA, MBA PROFESSIONAL EXPERIENCE (continued) Welch & Co.Accountancy Corporation Senior Accountant December 2003-April 2004 Torrance, California • Independently managed a majority of the audit and review engagements for Welch &Co. • Initiative taken in marketing efforts to increase client base. Successfully obtained new client for the firm in duration of employment. • Addressed all technology and information systems issues within the office. • Proposed and incorporated new accounting software (Creative Solutions Trial Balance) within the firm to create added efficiencies to engagements. Los Angeles International Church of Christ Accounting Manager June 2001—December 2003 Los Angeles, California • Managed monthly financial closing and reporting cycles for Los Angeles International Church of Christ (LAICC) a non-profit organization with revenues of over$30 million annually. • Reviewed the monthly financials and supporting work papers generated by two accountants responsible for the reporting of subsidiary entities (Regions). • Maintained internal controls and auditability of organization. Acted as the primary liaison for auditors for LAICC and also coordinated audits for affiliated entities which included the International Churches of Christ (ICC), Kingdom News Network (KNN), Northern Federation World Sector (NFWS), and Middle East World Sector(MEWS). • Supervised accounts payable staff of two, and provided support for payroll department and affiliated entities accounting department. Managed the preparation of W-2's and 1099's for LAICC and for affiliated entities. • Completed special projects as directed by the Chief Financial Officer including managing a bank conversion, providing financial accountability for special events,and assisting in the preparation of quarterly and annual reports for scheduled board meetings. Squar, Milner, Reehl, & Williamson LLP Staff Accountant July 2000-June 2001 Newport Beach, California • Planned, budgeted, and supervised audits, compilations, and reviews for clients in various industries including manufacturing, hi-tech communications and internet, contracting, title insurance and property management. • Prepared clients' financial statements, including footnote disclosures, in accordance with Generally Accepted Accounting Principles. • Participated in several reviews of client's 1OQs for quarterly SEC filings. Choo, Osada& Lee CPAs, Inc. Staff Accountant March 1999-June 2000 Honolulu, Hawaii • Quickly progressed to an in-charge role.Supervised staff on numerous audits,agreed-upon procedures,and other engagements for clients in various industries including property management, distribution, and non- profit. • Managed several engagements simultaneously and successfully adhered to time budgets and deadlines. • Interviewed all levels of client personnel; served as key liaison between client and manager/partners. • Prepared numerous corporate, partnership, and individual tax returns using Prosystems Tax Preparation Softwa re. 3 155 DAHLE M. BULOSAN, CPA, MBA COMMUNITY INVOLVEMENT International Church of Christ Volunteer 1994-2019 Los Angeles, California& Honolulu, Hawaii • Served as Regional Financial Advisory Committee member for the Metro Los Angeles Region of the Los Angeles Church of Christ to provide fiscal oversight over the congregation's finances. • Organized large and small group events; lead bible discussion groups; and provided marriage, life, career, academic, and financial counseling. • Frequently spoke at weekend church services and special events. • Participated in numerous events to serve the homeless and food insecure throughout Los Angeles, Orange County, and Oahu. • Partnered with Hope Worldwide with community cleanup and school site beautification projects. • Entrusted as lead volunteer administrator to coordinate collection, counting, and deposit of donations. • Oversaw Sunday School Children's Program as Children's Ministry Coordinator. • Served as Lead Teacher of children 2 to 18 years of age. First Christian Church of Huntington Beach Volunteer 2019 Huntington Beach, California • Volunteered with my wife and two boys for a family meal-packing event working with Lifeline Ministries for families in need. Youth Basketball Volunteer Coach 2015-Present • Mentor and coach youth basketball teams in Huntington Beach,Garden Grove,and Fountain Valley through Huntington Beach National Junior Basketball, Next Level Sports Complex, and Boys and Girls Club of Huntington Valley. • Instilled Fundamentals, Unselfish play, and Never give up attitude while having FUN! 4 156 EMPLOYMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND DAHLE BULOSAN THIS AGREEMENT is entered into this 16th day of March , 2020, between the City of Huntington Beach, a California municipal corporation, hereinafter "City," and Dahle Bulosan, hereinafter "Bulosan." WITNESSETH The City Manager has been empowered to appoint and remove department heads; and The City,through the City Manager, desires to employ the services of Bulosan as the,head of the Finance Department as the Chief Financial Officer, of the City of Huntington Beach; and The City seeks to provide certain benefits, establish certain conditions of employment, and to set working conditions of Bulosan; and The City intends to: (1) Secure, retain and employ the services of Bulosan: and (2) To provide a means for terminating Bulosan's service; and (3) Bulosan intends to accept employment as Chief Financial Officer of the City; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: SECTION 1. DUTIES. The City agrees to employ Bulosan as Chief Financial Officer of the City to perform the functions and duties of that office as set forth in the Municipal Code of the City of Huntington Beach and the City Charter, and to perform other duties and functions as the City Manager shall from time to time assign. Bulosan shall devote his full attention and effort to the office and perform the mentioned duties and functions in a professional manner. SECTION 2. STATUS AND TERM. (a) Bulosan shall serve for an indefinite term at the pleasure of the City Manager and shall be considered an at-will employee of the City. 1 20-8556/226696 Dahle Bulosan Employment Agreement-2020 (b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Manager to terminate the employment of Bulosan at any time, subject only to the provisions set forth in Section 6, subparagraphs(a), (b)and(c)of this Agreement, and Section 401 of the Charter of the City of Huntington Beach. (c) Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Bulosan to resign at any time from his position with the City, subject only to the provisions set forth in Section 6, subparagraph (d), of this Agreement. (d) Bulosan agrees to remain in the exclusive employ of City for an indefinite period of time and shall neither accept other employment or become employed by any other employer without the prior written approval of the City Manager until notice of Bulosan's resignation is given. The term "employed" (and derivations of that term as used in the preceding paragraph) shall include employment by another legal entity or self-employment, however, shall not be construed to include occasional teaching,writing,consulting,or military reserve service performed on Bulosan's time off, and with the advance approval of the City Manager. SECTION 3. SALARY. City agrees to pay Bulosan for his services rendered pursuant to this Agreement at Range NA0518, Step B ($85.27/hourly)of the City's classification and compensation plan or Resolutions or Ordinances from time to time enacted that govern such compensation. SECTION 4. OTHER BENEFITS. In addition to the foregoing benefits, Bulosan shall also receive all such other benefits that are generally applicable to non-associated employees(Department Heads) hired after 12/27/97, as set forth in Huntington Beach City Council Resolution No. 2016-50, entitled "A Resolution Of The City Council Of The City Of Huntington Beach Modifying Salary And Benefits For Non- Represented Employees Including The Elected City Attorney, City Clerk, And City Treasurer", a copy of which is attached hereto as Exhibit "A" and incorporated by reference as fully set forth 2 20-8556/226696 Dahle Bulosan Employment Agreement-2020 herein. Bulosan shall also be eligible for a cell-phone stipend (Smartphone) in the amount of $50.00 per month,paid bi-weekly. The benefits provided to Bulosan pursuant to this Section may be modified by the City from time to time, upon adoption of a successor Resolution. SECTION 5. ADMINISTRATIVE LEAVE. The City Manager may place Bulosan on Administrative Leave with full pay and benefits at any time during the term of this Agreement. SECTION 6. TERMINATION AND SEVERANCE PAY. (a) Except as provided in subsection (b), in the event the City Manager terminates the employment of Bulosan, and during such time that Bulosan is willing and able to perform his duties under this Agreement, then City shall pay to Bulosan a severance payment equal to salary payments which Bulosan would have been receiving over a twelve week period at Bulosan's current rate of pay in effect on the day prior to the date of termination. In addition, for the lesser of ninety (90) calendar days after the date of termination or the time Bulosan secures health and medical insurance through comparable employment, the City shall maintain and pay for health, medical, disability, the continuation of retirement benefits and life insurance in such amounts and on such terms as have been received by Bulosan and Bulosan's dependents at the time of such termination; however, no other or additional benefits shall accrue during this ninety(90) calendar- day period. (b)(1) Notwithstanding subsection (a) above, the following reasons shall constitute grounds to terminate the employment of Bulosan without severance pay: (i) a willful breach of this agreement or the willful and repeated neglect by Bulosan to perform duties that he is required to perform; (ii) conviction of any criminal act relating to employment with the City; (iii) conviction of a felony. (2) Prior to the time that the City Manager terminates Bulosan without severance pay for any of the reasons set forth in Section (b)(1) above, and only in that case, the 3 20-8556/226696 Dahle Bulosan Employment Agreement-2020 City Manager shall provide Bulosan with written notice of proposed termination which will include the reason and factual basis for termination. Within ten days of such notice, Bulosan may request an opportunity to respond to the reasons and factual basis provided by the City Manager. If such a request to respond is made, the City Manager shall conduct a meeting, which may be informal in nature, that Bulosan may respond to the notice of proposed termination. At such meeting, Bulosan may be represented by an attorney of his choice and present evidence or information relevant to the reasons and factual basis set forth in the notice of proposed termination. Subsequently, the decision of the City Manager as to whether reasons set forth in Section (b)(1) exist or do not exist shall be final as between the parties. (c) In the event the City at any time during the term of this Agreement, reduces the salary of Bulosan from its current level, except as part of an across-the-board reduction for all Directors of City, or in the event City refuses, following written notice, to extend to Bulosan any non-salary benefit customarily available to all Directors, or in the event Bulosan resigns following a suggestion, whether formal or informal, by the City Manager that he resign,then, Bulosan may, at his option, be deemed to be "terminated". The termination date will occur then at the date of reduction or refusal to extend or such suggestion of resignation within the meaning and context of the severance pay provision in subparagraph (a) above; provided that the option to be deemed terminated is exercised by written notice from Bulosan and delivered to the City Manager within ten (10) working days of notification of such reduction, refusal to extend, or suggestion of resignation. In that event, the severance payment shall be calculated from the date Bulosan exercises the option to be deemed terminated. (d) In the event Bulosan voluntarily resigns his position, Bulosan shall give City written notice at least thirty (30) days prior to the last workday, unless the City Manager and Bulosan otherwise agree. 4 20-8556/226696 Dahle Bulosan Employment Agreement-2020 (e) It is understood that after notice of termination in any form, Bulosan and the City will cooperate to provide for an orderly transition. Specific responsibilities during such transition may be specified in a written separation agreement. SECTION 7. DISABILITY. If Bulosan is medically, physically disabled or otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or ill health, and has provided proof of the same from a medical professional, he shall be eligible for Disability Leave upon exhausting all accrued sick leave, general leave and executive leave, and duty injury leave if applicable. Disability Leave shall be unpaid and shall be approved by the City Manager for a time period of up to three (3) months. The length of such time period of the Disability Leave shall be dependent upon the length of the disability as demonstrated by Bulosan. If Bulosan is unable to return to work at that time, the City shall have the option to terminate the employment of Bulosan, subject to the requirements imposed on City by Section 6, paragraph(a). SECTION 8. PERFORMANCE EVALUATION. The City Manager shall review and evaluate in writing the performance of Bulosan at least once annually. That review and evaluation shall be in accordance with specific criteria developed in consultation with Bulosan and the City Manager. Those criteria may be added to or subtracted from as the City Manager may from time to time determine, in consultation with Bulosan. SECTION 9. GENERAL AND EXECUTIVE LEAVE Bulosan shall accrue General Leave in accordance with the General Leave accrual provisions applicable to Department Heads of the City as contained in the Non-Associated Resolution (Exhibit"A"). Bulosan shall be credited 80 hours of Executive Leave on January 1 of each calendar year. Executive Leave must be used in the same calendar year it is credited; unused Executive Leave may not be carried forward to the next calendar year or cashed out at any time. Any Administrative Leave that is currently accrued shall be available for Bulosan's use until the end of the calendar year, and may not be carried forward or cashed out. General Leave shall be 5 20-8556/226696 Dahle Bulosan Employment Agreement-2020 accrued in accordance with the appropriate provisions of the Non-Associated Resolution(Exhibit "A"). Bulosan shall provide the City Manager with reasonable notice prior to taking two (2) or more General Leave or Executive Leave days off. SECTION 10. PROFESSIONAL DEVELOPMENT. The City agrees to budget and pay for Bulosan's professional memberships as normally accorded to Department Heads. Bulosan shall also receive paid leave,plus registration,travel and reasonable expenses for short courses, conferences and seminars that are necessary for professional/personal development and, in the judgment of the City Manager, for the good of the City, and subject to budget limitations and to established travel policies and procedures. SECTION 11. FINANCIAL DISCLOSURE. Bulosan shall report to the City Manager any ownership interest in real property within the County of Orange, excluding personal residence. Bulosan shall also complete and file annually, Financial Disclosure 700 Forms. Also, Bulosan shall report to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for City or from which City intends to make a purchase. Such reporting shall be made in writing by Bulosan to the City Manager within ten (10) calendar days of the execution of this agreement and within ten (10) calendar days of acquisition of that interest in real property. Additionally, Bulosan shall report in writing to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for the City or from whom the City intends to make a purchase immediately upon notice of the intended work or purchase. SECTION 12. INDEMNIFICATION. The City shall defend and indemnify Bulosan against actions, including but not limited to any: tort, professional liability claim or demand, or other non-criminal legal, equitable or administrative action, arising out of an alleged act or omission occurring in the performance of Bulosan during the discharge of his duties as an employee/officer of the City, other than an action brought by the City against Bulosan, or an action filed against the City by Bulosan. The City shall 6 20-8556/226696 Dahle Bulosan Employment Agreement-2020 pay the reasonable expenses for the travel, lodging, meals, and lost work time of Bulosan should Bulosan be subject to such, should an action be pending after termination of Bulosan. The City shall be responsible for and have authority to compromise and settle any action, with prior consultation with Bulosan, and pay the amount of any settlement or judgment rendered on that action. Bulosan shall cooperate fully with the City in the settlement, compromise, preparation of the defense, or trial of any such action. SECTION 13. GENERAL PROVISIONS. (a) The text herein shall constitute the entire Agreement between the parties. (b) This Agreement shall become effective commencing March 16, 2020. (c) If any provision, or any portion of any provision, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or any portion of it, shall be deemed severable, shall not be affected and shall remain in full force and effect. (d) No amendment of this Agreement shall be effective unless in writing and signed by both parties. IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its City Manager, and Bulosan has signed and executed this Agreement, both in duplicate, the day and year first above written. y: BULOSAN: City Manager Dahle Bulosan APPROVED AS TO FORM: � L ,,,,.City Attorney 7 20-8556/226696 Dahle Bulosan Employment Agreement-2020 RESOLUTION NO. 2016-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR NON-REPRESENTED EMPLOYEES INCLUDING THE ELECTED CITY ATTORNEY, CITY CLERK, AND CITY TREASURER WHEREAS, the City Council of the City of Huntington Beach desires to modify the salary and benefits for Non-Represented Employees upon adoption of this Resolution. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. Salaries and Benefits for Non-Represented employees shall be as reflected in Exhibit "A", attached hereto and incorporated by this reference. SECTION 2. The salary range for the elected City Attorney, City Clerk and City Treasurer shall be modified as reflected in the Non-Associated Executive Management Salary Schedule—Exhibit 1. SECTION 3. Benefits for the elected City Attorney, City Clerk and City Treasurer shall be as reflected in Exhibit"A", attached hereto and incorporated by this reference. SECTION 4. Resolution 2007-6, Resolution 2010-106, and Resolution 2014-94 are hereby repealed. SECTION 5. Any existing provisions in conflict with the foregoing, whether by minute action or resolution of the City Council, are hereby repealed. SECTION 6. All other benefits and salary ranges established and reflected in the Non- Associated Employees Pay and Benefits Resolution 2016-50, shall continue unless modified by City Council action. RLS 6/27/16/16-5325/138993/MV 1 164 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting tliereof held on the /k'`tiday of � , 2016. Ma REVIEW D APPROVED: APP OVED A TO FORM: act. uly'� City 1V a'n `er ve,CitylAttorney � IN " D A� ED: ire ctor of Muman Resources RLS 6/27/16/16-5325/138993/MV 2 165 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT A - NON-ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISION................................................................................................... 1 SECTIONI PAY.............................................................................................................. 1 A. SALARY SCHEDULE................................................................................................. 1 B. DIRECT DEPOSIT................................................................... .. 1 ................................ C. ASSIGNED VEHICLE/AUTO ALLOWANCE .................................................................... 1 1. Department Heads......................................................................................................................1 D. Deferred Compensation ...................................................................................... 1 SECTION II — HOURS OF WORK/OVERTIME/TIME OFF............................................. 1 A. EXECUTIVE LEAVE................................................................................................... 1 B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES........................................................ 2 1. 5/40 Work Schedule....................................................................................................................2 2. 9/80 Work Schedule....................................................................................................................2 3. Alternative Work Schedule..........................................................................................................2 SECTION III — HEALTH AND OTHER INSURANCE BENEFITS...................................2 A. HEALTH INSURANCE................................................................................................ 2 1. Medical, Dental and Vision Insurance.........................................................................................2 2. City and Employee Paid Health Insurance.................................................................................2 3. Medical Cash Out........................................................................................................................4 4. Section 125 Plan.........................................................................................................................4 B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE ...............................4 C. LONG-TERM DISABILITY INSURANCE.........................................................................4 D. CITY-PAID PHYSICAL EXAMINATIONS ........................................................................ 5 E. MISCELLANEOUS..................................................................................................... 5 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREE SUBSIDY PLAN ..........................:...................................................................... 5 G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE ......................................................6 SECTION IV — RETIREMENT.........................................................................................6 A. BENEFITS...............................................................................................................6 1. Self-Funded Supplemental Retirement Benefit..........................................................................6 2. Medical Insurance for Retirees.................................-................................................................6 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTIONS AND REPORTING............7 1. Miscellaneous Unit Members .....................................................................................................7 2. Safety Unit Members...................................................................................................................7 3. IRS Code 414(h)(2)........................................................................................... .......8 4. Pre-Retirement Optional Settlement 2 Death Benefit.................................................................8 5. Fourth Level of 1959 Survivor Benefits.......................................................................................8 6. VEBA Plan Requirements...........................................................................................................8 SECTION V — LEAVE BENEFITS ................................................................................ 10 Exhibit"A"to Non-Associated Resolution No.2016-50 i 166 Item 25. - 5 HIS _6;6_ NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION A. GENERAL LEAVE................................................................................................... 10 1. Accrual.................................................................................................... ......... ----.....---.....10 2. Eligibility and Approval ............... ............................................................................................10 3. Leave Benefit Entitlements.......................................................................................................10 4. Conversion to Cash..............................................................................................-..................10 B. HOLIDAYS AND PAY PROVISIONS............................................................................. 11 C. SICK LEAVE.......................................................................................................... 11 1. Accrual ......................................................................................................................................11 2. Credit.........................................................................................................................................12 3. Usage........................................................................................................................................12 4. Payoff at Termination................................................................................................................12 D. BEREAVEMENT LEAVE........................................................................................... 13 E. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM........................................ 13 SECTION VI - RETIREE SUBSIDY MEDICAL PLAN.................................................. 13 SECTION VII - MISCELLANEOUS............................................................................... 13 A. COLLECTION OF PAYROLL OVERPAYMENTS............................................................. 13 B. UNIFORMS AND CALPERS REPORTING .................................................................. 14 EXHIBIT 1 - NON-ASSOCIATED SALARY SCHEDULE............................................. 15 EXHIBIT 2 - RETIREE MEDICAL PLAN ...................................................................... 16 EXHIBIT 3 - 9/80 WORK SCHEDULE..........................................................................20 EXHIBIT 4 -VOLUNTARY CATASTROPHIC LEAVE DONATION .............................22 Exhibit"A"to Non-Associated Resolution No.2016-50 ii HB -657- Item 25. - 6 NON-ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS EXHIBIT A SECTION I — PAY A. Salary Schedule 1. All current Non-Associated employees shall receive the salaries as identified in Exhibit 1. 2. The City Council shall set the salaries of the elected executive management positions identified in Exhibit 1, at any rate within the designated salary range. 3. The City Manager is authorized to set the salaries of the non-elected executive management positions identified in Exhibit 1 at any rate at or below the control point of the designated salary range. The City Manager is authorized to increase the salary by any percentage not greater than 5% based upon performance at annual review and market data. However, no salary for a new employee may be set above the control point at any time without City Council approval. B. Direct Deposit All Non-Associated employees are required to utilize direct deposit of payroll checks. C. Assigned Vehicle/Auto Allowance 1. Department Heads Appointed Department Heads and the City Clerk, City Treasurer, and City Attorney shall have the option of an assigned City vehicle or an auto allowance in the amount of two hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus reimbursement of out-of-town travel at the approved mileage rate. D. Deferred Compensation Effective the beginning of the pay period following City Council approval of this resolution, each employee covered by this resolution, including the City Attorney, City Clerk and City Treasurer, shall receive a one-time deposit to the employee's 457 Deferred Compensation account in the amount of$3,800.00. 1. This shall be a single, one-time only deposit. All appropriate Federal and State legal mandates regarding the tax-treatment of this one-time deposit shall apply. SECTION II — HOURS OF WORK/TIME OFF A. Executive Leave Non-Associated exempt employees shall not be eligible for overtime compensation. Exempt department heads shall be credited with eighty (80) hours of executive leave per calendar year. Item 25. - 7'A"to Non-Associated Resolution No. 2016-50 168 xB -658- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. Flexible and Alternative Work Schedules 1. 5/40 Work Schedule The 5/40 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week with a one-hour lunch during each work shift, totaling a forty (40) hours work week. 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in Exhibit 3, shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA designated work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 3. Alternative Work Schedule Non-associated employees may elect any alternative work schedule approved by the City Manager or designee. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A. Health Insurance 1. Medical, Dental and Vision Insurance The City shall continue to make group medical, dental and vision benefits available to all Non-Associated employees. 2. City and Employee Paid Health Insurance The City and the employee shall pay for health insurance premiums for employees and qualified dependent(s) effective the first of the month following the employee's hire date. The employee payroll deduction for premium contributions shall be deducted on a pre-tax basis. Such deductions shall be aligned with the effective date of coverage and the ending date of coverage upon employment separation. The employee's payroll deduction amount shall begin no later than the beginning of the first full pay period following the effective date of coverage and pro-rated for coverage through the end of'the month in which employment was separated. Exhibit"A"to Non-Associated Resolution No. 2016-50 169 HB -659- Item 25. - 8 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i. Health Plan Employee and Employer Contributions Chart for Non-Safety Classifications in EXHIBIT 1 City of Huntington Beach 2016 Health Premiums and Contributions Effective pay period following final City Council approval Non-Associated/Non-Safety Month Employer Employee Empioee . Plan er ty Month! "Month Bi-Weekly Ti - y lY Premium Contribution Contributl "Contribution Single 466.65 466.65 0.00 0.00 Kaiser Two-Party 1,022.11 974.36 47.75 22.04 Family 1,343.90 1,170.04 173.86 80.24 Single 671.00 640.76 30.24 13.96 Blue Shield HMO Two-Party 1,466.00 974.36 491.64 226.91 Family 1,896.00 1,170.04 725.96 335.06 Single 736.00 736.00 0.00 0.00 Blue Shield PPO Two-Party 1,555.00 1,135.78 419.22 193.49 Family 1,927.00 1,314.31 612.69 282.78 Single 58.10 45.02 13.08 6.04 Delta Dental PPO Two-Party 108.60 85.91 22.69 10.47 Family 143.20 122.18 21.02 9.70 Single 30.11 30.11 0.00 0.00 Delta Care HMO Two-Party 51.19 51.19 0.00 0.00 Family 78.29 78.29 0.00 0.00 Single 25.12 0.00 25.12 11.59 VSP Vision Two-Party 25.12 0.00 25.12 11.59 Family 25.12 0.00 25.12 11.59 Medical Opt-Out: $466.65 per month ($215.38 bi-weekly) ii. "Safety Member Health Premiums- Employer Contribution Employees that are classified as "safety member' by the California Public Employees' Retirement System (CaIPERS) may have access to the medical plans offered by CaIPERS as contracted by the City. In accordance with eligibility provisions, the Police Chief and the Fire Chief may elect to enroll in the CaIPERS health insurance program offered by the City. The City's maximum monthly employer contributions for the CaIPERS health insurance program is set forth in the current City of Huntington Beach Non- Associated Safety Health Premiums and Contributions Chart. The amounts listed therein include the mandated Public Employees' Medical and Hospital Care Act (PEMHCA) contribution. Item 25. A"to Non-Associated Resolution No.2016-50 170 - 9� xs -660- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION iii. Employees shall not be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. iv. Future Premiums The City "caps" its contributions toward monthly group medical, dental and vision plan premiums by category (EE, EE + 1, and EE + 2 or more) as outlined in sections i and ii above. The City agrees to increase the contribution toward monthly group medical by $200 per plan, per tier, effective following City Council approval of this resolution. The employee and employer contributions rates set forth in sections i and ii above shall remain in effect in 2017 and beyond unless otherwise modified by a successor Non-Associated Resolution. Employee and City Contributions subject to change as a result of City Council approval. The City's contribution caps for dental and vision in effect as of August 1, 2014 shall not be increased. The City's contribution caps will remain in place, even if premium increases result in these additional costs being borne by the employee. 3. Medical Cash Out If an employee is covered by a medical program outside of a City-provided program (evidence of which must be supplied to Human Resources), the employee may elect to discontinue City medical coverage and receive the monthly value of the City's contribution to the lowest cost employee-only medical plan paid bi-weekly. 4. Section 125 Plan Employees shall be eligible to participate in a City-approved Section 125 Flexible Spending Account Plan the same as all other eligible employees, as provided by IRS law. This plan allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. B. Life and Accidental Death and Dismemberment Insurance Each Non-Associated employee shall be provided with $50,000 life insurance and $50,000 accidental death and dismemberment insurance paid for by the City. Each employee shall have the option, at his/her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the City's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Long-Term Disability Insurance This program provides benefits for each incident of illness or injury after a waiting period of thirty (30) calendar days during which the Non-Associated employee may use accumulated sick leave, general leave, executive leave pay. Subsequent to the thirty-(30) day waiting period, the employee will be covered by an insurance plan paid for by the City providing sixty-six and two- thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury or illness shall be to age sixty-five (65). Exhibit"A"to Non-Associated Resolution No.2016-50 171 HB -66I- Item 25. - 10 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability is defined as: "The inability to perform all of the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation, for which he/she is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Human Resources Department. D. City-Paid Physical Examinations Non-Associated employees shall be provided, once every two years, with a City-paid physical examination comparable to the current pre-placement class physical examination or reimbursed the amount authorized for said physical examination. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. Said exam shall be comprehensive in nature and shall include: 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. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Miscellaneous When a Non-Associated employee is on a leave of absence without pay for reason of medical disability, the City shall maintain the City-paid insurance premiums during the period the employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24) months. F. Retiree Medical Coverage for Retirees Not Eligible for the 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. Item 25. - 11 . to Non-Associated Resolution No. 2016-50 172 HB -662- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). G. Post-65 Supplemental Medicare Coverage Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in City-sponsored medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in City-sponsored medical insurance plans that are supplemental to Medicare, after a contract is in place between the City and a health insurance provider. A retiree or qualified dependent must choose to participate in City-sponsored medical insurance plans that are supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in City-sponsored medical insurance plans that are supplemental to Medicare for themselves or qualified dependents without any City subsidy. Retirees or qualified dependents, upon turning age 65, who choose not to participate in the City-sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for�this insurance. SECTION IV — RETIREMENT A. Benefits 1. Self-Funded Supplemental Retirement Benefit In the event a Non-Associated employee member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees' Retirement law, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone as provided in California Government Code sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member (Non- Associated employee), shall be payable by the City during the life of the member, and upon that member's death, the City's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 2. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the City's group health insurance program at the equivalent of the City's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. Exhibit"A"to Non-Associated Resolution No. 2016-50 173 Item 25. - 12 HB -663- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. As an alternative to the benefit described in paragraph IV.A.2.a above, the City will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. B. Public Employees' Retirement System Contributions and Reporting 1. Miscellaneous Members a. The City shall provide all miscellaneous employees described as "classic members by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain retirement program commonly known and described as the "2.5% at age 55 plan" which is based on the retirement formula as set forth in the California Public Employees' Retirement System (CalPERS), Section 21354 of the California Government Code. b. Miscellaneous bargaining unit "classic members" shall pay to CalPERS as part of the required member retirement contribution eight percent (8%) of pensionable income. This provision shall not sunset. c. The City shall contract with CalPERS to have retirement benefits calculated based upon the "classic" employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this resolution. e. For "New" Members within the meaning of the California Public Employees' Pension Reform Act of 2013. 1) New Members shall be governed by the two percent at age 62 (2% @ 62) retirement formula set forth in Government Code section 7522.20. 2) Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. 3) Effective January 1, 2013, "new" members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the normal cost as established by CalPERS. 2. Safety Members a. The City shall provide all safety employees described as "classic" members by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain retirement program commonly known and described as the "3% at age 50 plan" which is based on the retirement formula as set forth in the California Public Employees' Retirement System (CalPERS), Section 21362.2 of the California Government Code. Item 25. - 13' to Non-Associated Resolution No. 2016-50 174 HB -664- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. All safety employees described as "classic" members shall pay to CaIPERS as part of the required member retirement contribution nine percent (9%) of pensionable income. This provision shall not sunset. c. The City shall contract with CaIPERS to have retirement benefits calculated based upon the "classic" employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this resolution. e. For "New" Members within the meaning of the California Public Employees' Pension Reform Act of 2013. 1) New Members shall be governed by the two and seven tenths percent at age 57 (2.7% @ 57) retirement formula set forth in Government Code section 7522.25(d) 2) Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of retirement, or some other 36 consecutive month period designated by the member. 3) Effective January 1, 2013, "new" members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the normal cost, as established by CalPERS. 3. IRS Code Section 414(h)(2) The City has adopted the CaIPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. 4. Pre-Retirement Optional Settlement 2 Death Benefit Non-Associated employees shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 of the California Government Code when approved by the City Council, 5. Fourth Level of 1959 Survivor Benefits Non-Associated employees shall be covered by the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 of the California Government Code. 6. VEBA Plan Requirements a. Eligibility Defined Effective December 23, 2009, all eligible Unrepresented Management Employees with 25 years of continuous service to the City of Huntington Beach will participate in the Plan. An eligible employee is an employee who works twenty (20) or more hours per week and receives benefits. Exhibit"A"to Non-Associated Resolution No. 2016-50 175 HB -665- Item 25. - 14 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. Employee Contributions c. Leave Payout Each eligible unrepresented management employee shall designate all leave payouts to be rolled over to his/her VEBA Plan account based on the established range upon separation from City employment. d. Participant Account A separate account is maintained for each contributing eligible unrepresented management employee, which documents the employee's contributions and disbursements. Contributions to a VEBA plan account as well as any disbursements to cover nonreimbursed, post-tax medical care expenses are both tax free. Eligible benefits subject to reimbursement by the Plan shall be limited to long-term care expenses and nonreimbursed medical premiums, co-pays, prescribed drug expenses and other medical care costs as that term is defined by the Internal Revenue Code Section 213. e. Administrative Fees Any Plan administrative fees will be deducted from interest on the total Plan investments. An eligible unrepresented management employee's Plan account is subject to a monthly administrative fee for expenses related to recordkeeping, claims processing, and claims reimbursement. The fee will first be deducted from interest on total plan investments, and then deducted, if necessary, from the employee's individual account. f. Dispute Resolution This Resolution and any disputes arising under or in connection with this Resolution shall not be subject to any dispute resolution procedures in the City's Personnel Rules, nor shall this Resolution and any such dispute relating thereto be subject to the jurisdiction of the City's Personnel Board for any reason whatsoever. g. Indemnification All Unrepresented Management Employees agree to indemnify and hold the City of Huntington Beach harmless against any claims made of any nature and against any suit instituted against the City arising from this Resolution, including, but not limited to, claims arising from an employee's participation in VEBA or from any salary reduction initiated by the City for VEBA contributions. Item 25. - 15�to Non-Associated Resolution No. 2016-50 176 xB _666_ NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION SECTION V— LEAVE BENEFITS A. General Leave 1. Accrual Employees will accrue General Leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. General leave for non-associated employees shall be accrued as follows: Annual General Leave Biweekly General Leave Years of Service - Allowance Allowance First through Fourth Year 176 hours 6.77 Fifth through Ninth Year 200 hours 7.69 Tenth through Fourteenth Year 224 hours 8.62 Fifteenth Year and Thereafter 256 hours 9.85 2. Eligibility and Approval General leave must be pre-approved except for illness, injury or family sickness, which may require a physician's statement for approval. General leave accrued time is to be computed from hiring date anniversary. Employees shall not be permitted to take general leave in excess of actual time earned. Employees shall not accrue general leave in excess of six hundred forty (640) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Leave Benefit Entitlements The City shall comply with all State and Federal leave benefit entitlement laws. An eligible employee on an approved leave shall be allowed to use applicable earned Sick Leave, General Leave, or Executive Leave for family or personal health issues. For more information on employee leave options contact the Human Resources Department. 4. Conversion to Cash a. Pay Off at Termination An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. b. Conversion to Cash Two times during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred-twenty (120) general leave benefit hours per fiscal year. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. Exhibit"A"to Non-Associated Resolution No.2016-50 HB -667- Ite111 ZS. - 16 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION c. One Week Minimum Vacation Requirement The City Manager may require certain positions which handle money or transfer funds to take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. d. Deferred Compensation Contribution at Time of Separation The value of any unused earned leave benefits may be transferred to deferred compensation at separation (including retirement), but only during the time that the employee is actively employed with the City. The latest opportunity for such transfer must be the beginning of the pay period prior to the employee's last day of employment. B. Holidays and Pay Provisions 1. Non-Associated employees shall receive the following legal holidays as of the first pay period following adoption of the Non-Associated Resolution paid in full per the employee's regularly scheduled work shift: (1) New Year's Day (January 1) (2) Martin Luther King Day (third Monday in January) (3) Presidents Day (third Monday in February) (4) Memorial Day (last Monday in May) (5) Independence Day (July 4) (6) Labor Day (first Monday in September) (7) Veteran's Day (November 11) (8) Thanksgiving Day (fourth Thursday in November) (9) The Friday after Thanksgiving (10) Christmas Day (December 25) 2. Any day declared by the President of the United States to be a national holiday or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. 3. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual No employee shall accrue sick leave. Item 25. - 17."to Non-Associated Resolution No. 2016-50 178 ua -668- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. Credit Employees assigned to Non-Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 4. Payoff at Termination a. Non Associated employees with continuous service with the City since November 20, 1978, shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death; or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused accumulated sick leave, up to a maximum of 720 hours of such accumulated sick leave. b. Non-Associated employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours, except as provided in paragraph V.C.2.c below. c. Except as provided in paragraph V.C.5.d below, no Non-Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. However, employees may utilize accumulated sick leave on the basis of"last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non-Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out' basis. To the extent that any such "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensate amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee had accumulated another 48 hours. Employee Exhibit"A"to Non-Associated Resolution No.2016-50 179 xB -669- Item 25. - 18 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928.) D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. E. Voluntary Catastrophic Leave Donation Program Under certain conditions, an employee may donate leave time to another employee in need. The program is outlined in Exhibit 4. SECTION VI — RETIREE SUBSIDY MEDICAL PLAN An employee who has retired from the City shall be entitled to participate in the City-sponsored medical insurance plans in accordance with the Retiree Subsidy Medical Plan as outlined in Exhibit 2. Employees hired on or after December 1, 2009, shall not be eligible for this benefit. SECTION VII — MISCELLANEOUS A. Collection of Payroll Overpayments In the event that a payroll overpayment is discovered and verified, and considering all reasonable factors including the length of time that the overpayment was made and if and when the employee could have reasonably known about such overpayment, the City shall take action to collect from the employee the amount of overpayment(s). Such collection shall be processed by payroll deduction over a reasonable period of time considering the total amount of overpayment. In the event the employee separates from employment during the collection period, the final amount shall be deducted from the last payroll check of the employee. If applicable, the balance due from the employee shall be communicated upon employment separation if the last payroll check does not sufficiently cover the amount due the City. It shall be the responsibility of the employee and the City to periodically monitor the accuracy of compensation payments or reimbursements due to the possibility of a clerical oversight or error. The City reserves the right to also collect compensation overpayments caused by or the result of misinterpretation of a pay provision by non-authorized personnel. The interpretation of all pay provisions shall be administered by the City Manager or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05). Item 25. - 19"to Non-Associated Resolution No. 2016-50 180 HB -670- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. Uniforms and CalPERS Reporting The City provides uniforms to active duty employees in the classifications of Police Chief and Fire Chief. These employees are required to wear a standard uniform for appearance, uniformity, and public recognition purposes. The City will report to the California Public Employees' Retirement System (CaIPERS) the average annual cost of uniforms as special compensation for each eligible employee in accordance with Title 2, California Code of Regulations, Section 571(a)(5). Exhibit"A"to Non-Associated Resolution No. 2016-50 181 HB -671- Item 25. - 20 NON-ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 1 NON-ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE SEPTEMBER 24, 2016 -2.0% Increase Job No. Description Pay Starting Control High Grade Point Point Point EXECUTIVE MANAGEMENT 0591 lCity Manager NA0591 NA NA 128.29 DEPARTMENT HEADS 0592 Assistant City Manager NA0592 85.82 95.51 106.32 0009 Director of Building &Safety NA0009 74.64 83.07 92.46 0014 Director of Community Services NA0014 74.64 83.07 92.46 0008 Director of Economic Development NA0008 74.64 83.07 92.46 0574 Director of Human Resources NA0574 74.64 83.07 92.46 0479 Chief Information Officer NA0479 74.64 83.07 92.46 0007 Director of Library Services NA0007 69.94 77.85 86.66 0589 Community Development Director NA0589 80.82 89.97 100.13 0010 Director of Public Works NA0010 80.82 89.97 100.13 0518 Chief Financial Officer NA0518 80.82 89.97 100.13 0015 Fire Chief NA0015 85.82 95.51 106.31 0011 Police Chief NA0011 85.82 95.52 106.31 ELECTED OFFICIALS 0016 ICity Attorney NA0016 100.18 111.51 124.10 0017 ICity Clerk NA0017 69.94 77.85 86.66 ELECTED OFFICIALS PART-TIME 0018 ICity Treasurer- PART-TIME NA0018 74.64 83.07 92.46 *Annual'Sa1a ltii it to Exceed$51 812. CONTRACT NON-DEPARTMENT HEAD Job No. Description Pay I Grade A B C D E 0593 IChief Assistant City Attorney NA0593 71.05 74.96 79.08 83.43 88.01 Historical changes to Non-Associated position titles: Per Ordinance 3855 adopted on 1/19/10, Building&Safety Department duties were combined with the Planning Department creating a new position of Director of Planning and Building. Per Resolution 2010-106 adopted on 12/20/10 the City Treasurer was established as a part-time position. Per Ordinance 3906 adopted on 2/7/11 amended the title of City Administrator to City Manager. Per Ordinance 3959 adopted on 10/01/12,the position of Chief Assistant City Attorney was established. Per Resolution 2012-95 adopted on 12/17/12 the title of Deputy City Manager was changed to Assistant City Manager. Per Ordinance 4086 adopted 4/18/16:the position of Finance Director was changed to Chief Financial Officer, the Director of Information Services was changed to Chief Information Officer and the Director of Planning and Building was changed to Community Development Director. to No Resolution No.2016-50 182 Item 25. - 21 " xB -672- 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: 1. 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 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. Employees hired on or after December 1, 2009 shall not be eligible for this benefit. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 3. Marital Status — Married retirees eligible for benefits under the Retiree Medical Subsidy Plan may each receive the benefit earned pursuant to Section 4 — Exhibit"A"to Non-Associated Resolution No. 2016-50 H13 ��� Ite18l ZS. - 22 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Maximum Monthly Subsidy Payments, whether enrolled individually as the plan enrollee or whether enrolled as a dependent on any City-sponsored medical plan. a. In the case where a retiree is married to a City employee (active or retired) who is not an unrepresented/non-associated employee or retiree, this provision shall remain applicable. b. This provision shall apply to State of California registered domestic partners the same as married spouses. 4. Maximum Monthly Subsidy Payments Payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. All retirees, including those retired as a result of disability whose number of years of service prior to retirement, exceeds ten (10) years of continuous full time service, shall be entitled to maximum monthly payment of premiums by the City for each year of completed City service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Item 25. - 23 A HB -674- to Non-Associated Resolution No.2016-50 184 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION MISCELLANEOUS PROVISIONS A. Eligibility: 1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Human Resources Department shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. B. Benefits: 1. The Retiree Subsidy Medical Plan includes any medical plan offered by the City to active and/or retired unrepresented/non-associated employees and retirees. 2. City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only for Medicare. 3. Premium payments are to be received at least one month in advance of the coverage period. C. Subsidies: 1. The subsidy payments will pay for: a. The Retiree Subsidy Medical Plan. b. HMO. c. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. b. Any other employee benefit plan. c. Any other commercially available benefit plan. d. Medicare supplements D. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. Exhibit"A"to Non-Associated Resolution No. 2016-50 185 xB -675- Item 25. - 24 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching age 65. c. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application," whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2. See provisions under "Benefits," "Subsidies," and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. 3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non- payment of premium by means of a certified letter from Employee Benefits in accordance with provisions of the Non-Associated Resolution. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. to Non-Associated Resolution No. 2016-50 186 Item 25. - 25-° Ha -676- NON-ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 3 - 9/80 WORK SCHEDULE This work schedule is known as "9/80". The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. A. Forty (40) Hour FLSA Work Week The actual FLSA workweek is from Friday at mid-shift (p.m.) to Friday at mid-shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA workweek is 12:00 noon Friday. B. Two Week Pay Period The pay period for employees starts Friday mid-shift (p.m.) and continues for fourteen (14) days until Friday mid-shift (a.m.). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the "A" schedule and the "B" schedule, based upon the departmental needs. For identification purposes, the "A" schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, `off on payday", the "B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on payday". An example is listed below: r Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - Exhibit"A"to Non-Associated Resolution No.201&50 187 HB -677- Item 25. - 26 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. A/B Schedule Changes FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor or City Manager approval. E. Emergencies All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, or designee may require such service from any of said employees. LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave —As stated in the Non-Associated Resolution. 2. Sick Leave —As stated in the Non-Associated Resolution. 3. Executive Leave—As stated in the Non-Associated Resolution. 4. Bereavement Leave—As stated in the Non-Associated Resolution. 5. Holidays -As stated in the Non-Associated Resolution. 6. Jury Duty—The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added compensation. to Non-Associated Resolution No. 2016-50 188 Item 25. - 27° HB -678- NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 4 - VOLUNTARY CATASTROPHIC LEAVE DONATION Guidelines 1. Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either return to work, long-term disability, or medical retirement. Permanent employees who accrue vacation, general leave or compensatory time may donate such leave to another permanent employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The leave-sharing Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of vacation, general, or sick leave. 2. Definitions Catastrophic Illness or Injury -A serious debilitating illness or injury, which incapacitates the employee or an employee's family member. Family Member - For the purposes of this policy, the definition of family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner). 3. Eligible Leave Accrued compensatory, vacation or general leave hours may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Permanent employees who accrue vacation or general leave may donate such hours to eligible recipients. Compensatory time accrued may also be donated. An eligible recipient is an employee who: • Accrues vacation or general leave; • Is not receiving disability benefits or Workers' Compensation payments; and • Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's regular salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted into a dollar amount based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient's hourly wage. An employee needing leave will complete a Leave Donation Request Form and submit it to the Department Director for approval. The Department Director will forward the form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. Exhibit"A"to Non-Associated Resolution No. 2016-50 189 HB -679- Item 25. - 28 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Employees wanting to make donations will submit a Leave Donation Form to the Finance Department (payroll). All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. 6. Other Please contact the Human Resources Department with questions regarding employee participation in this program. to Non-Associated Resolution No.2016-50 190 Item 25. - 29' HB _6b��_ NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated vacation, general leave or compensatory time. MY SIGNATURE CERTIFIES THAT: • A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and • 1 am not receiving disability benefits or Workers' Compensation payments. ........... .............. . ,Name: (Please Print or Type: Last, First, MI) E i l Work Phone: Department: Job Title: lEmployee ID#: ,Requester Signature: Date: Department Director Signature of Support: lDate: n Res iurce a ant Ilse� � - Y \ _ a r ° t\._ U „ __ �aFb7 t� Meffn Al _4 'm.w1m.,Reitrement tntllrlt ; ,/ 9 A­er�giQf 61 groaA Resc�ur 'yDareflrgn� E gned 9 '. w Please submit this form to the Human Resources Office for processing. Exhibit"A"to Non-Associated Resolution No.2016-50 191 xs -681- Item 25. - 30 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete ;Donor Name: (P/ease Print or Type: Last, First, MI) Work Phone: 4 E :Donor Job Title: [ F Type of Accrued Leave: Number of Hours I wish to Donate: 7 Vacation Hours of Vacation Compensatory Time Hours of Compensatory Time '❑ General Leave Hours of General Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: Date: Please submit to the Finance Department. to Non-Associated Resolution No.2016-50 192 Item 25. - 31 ' l-�B _682_ Res. No. 2016-50 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 18, 2016 by the following vote: AYES: O'Connell, Sullivan, Hardy, Delgleize NOES: Posey, Peterson OUT OF ROOM: Katapodis ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 193