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2017/04/25 City Council Resolution 2017-050RESOLUTION NO. 2017-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING AND ADOPTING AN OUTLINE OF CERTAIN CONDITIONS OF EMPLOYMENT, FRINGE BENEFITS, AND SALARY FOR THE MANAGEMENT UNIT FOR THE PERIOD OF APRIL 30, 2017 THROUGH JUNE 30, 2021 WHEREAS, staff has prepared a final Outline of Certain Conditions of Employment, Fringe Benefits, and Salary for the Management Unit; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby approve and adopt the Outline of Certain Conditions of Employment, Fringe Benefits, and Salary for the Management Unit, which is attached hereto as Exhibit "A" and incorporated by this reference. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute documents pertaining to same for and on behalf of the City of Rohnert Park. DULY & REGULARLY ADOPTED this 25th day of April, 2017. CITY OF ROHNERT PARK ATTEST: )c)A4niZ�MBuergler, City Clerk Attachment: Exhibit A AHANOTIJ:A "'� BELFORTE: Atn$ CALLINAN: STAFFORD: f MACKENZIE: � AYES: ( 3 ) NOES: ( 0 ) ABSENT: ( Z ) ABSTAIN: ( 0 ) EXHIBIT A OUTLINE OF CERTAIN CONDITIONS OF EMPLOYMENT, FRINGE BENEFITS, AND SALARY FOR THE MANAGEMENT UNIT EFFECTIVE April 30, 2017 – JUNE 30, 2021 OUTLINE-Management • April 30, 2017 through June 30, 2021 Page I TABLE OF CONTENTS 1. WORK SCHEDULES ........................................................................................................................ 3  2. HOLIDAYS .......................................................................................................................................... 3  2.1. Holidays Observed ..................................................................................................................... 3  2.2. Proclaimed Holidays .................................................................................................................. 3  2.3. Day of Mourning .......................................................................................................................... 3  2.4. Floating Holiday .......................................................................................................................... 4  3. ANNUAL LEAVE PROGRAM ......................................................................................................... 4  4. MILITARY LEAVE ............................................................................................................................. 5  5. OTHER FRINGE BENEFITS ............................................................................................................ 5  5.1. Fringe Benefit Administration ................................................................................................. 5  5.2. Administrative Leave ................................................................................................................. 5  5.3. Catastrophic Leave .................................................................................................................... 6  5.4. Hearing Aid Benefit .................................................................................................................... 6  5.5. Family Medical Leave ................................................................................................................ 6  5.6. Light or Limited Duty ................................................................................................................. 6  5.7. Americans with Disabilities Act .............................................................................................. 6  5.8. Employee Death .......................................................................................................................... 6  5.9. Health Insurance ......................................................................................................................... 7  5.10. Adoption Benefit ......................................................................................................................... 9  5.11. Bereavement Leave .................................................................................................................... 9  5.12. Funeral Benefit ............................................................................................................................ 9  5.13. Long-Term Disability Insurance ............................................................................................ 10  5.14. Life Insurance ............................................................................................................................ 10  5.15. Deferred Income ........................................................................................................................ 10  5.16. Retired, Deceased and/or Permanently and Totally Disabled Employees .......... 10  5.17. Education and Training ........................................................................................................... 13  5.18. Longevity Pay ............................................................................................................................ 13  5.19. Retirement Programs ............................................................................................................... 14  5.20. 401(a) Retirement Plan ............................................................................................................ 15  5.21. Dependent Care Assistance Program ................................................................................. 15  5.22. Health Care Tax-Free Dollar Account Program ................................................................ 15  5.23. Counseling Services ................................................................................................................ 15  6. SALARY & MISCELLANEOUS PAYS ......................................................................................... 15  6.1. Salary Adjustment .................................................................................................................... 15  6.2 Automobile Allowance ............................................................................................................ 16  6.3  Paychecks .................................................................................................................................. 16  6.4  Pay Change Effective Dates ................................................................................................... 16  _Toc480876672  7. ALCOHOL AND DRUGS................................................................................................................ 16  OUTLINE-Management • April 30, 2017 through June 30, 2021 Page II 7.1  Alcoholic Beverages or Other Drugs ................................................................................... 17  7.2  Off Duty Hours ........................................................................................................................... 17  7.3  Prescription Drugs ................................................................................................................... 17  8. SMOKING ......................................................................................................................................... 17  9. RESIDENCY ..................................................................................................................................... 17  10. GRIEVANCE POLICY AND PROCEDURE ................................................................................. 17  11. USE OF CITY FACILITIES ............................................................................................................. 17  12. MANAGEMENT RIGHTS ............................................................................................................... 18  13. WORK CURTAILMENT (NO STRIKE CLAUSE) ....................................................................... 18  14. TERM OF OUTLINE ........................................................................................................................ 18  15. INVALIDATION ................................................................................................................................ 18  15.1  Suspension of Agreement ...................................................................................................... 18  15.2  Replacement .............................................................................................................................. 18  16. NON-DISCRIMINATION ................................................................................................................. 19  17. PERSONNEL FILES ....................................................................................................................... 19  18. EMPLOYEE PERFORMANCE EVALUATIONS ........................................................................ 19  INDEX .......................................................................................................................................................... 21  OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 3 This Outline is a document that describes conditions of employment, fringe benefits and salary for employees in the Management Unit. The Management Unit currently consists of employees occupying the classifications of: City Clerk City Engineer Civilian Fire Marshall Deputy City Engineer Director of Public Works and Community Services Planning Manager 1. Work Schedules The appointing authority shall establish and modify work schedules for all employees. Employees in Management positions shall work any and all hours necessary in the performance of their assigned duties, without overtime and without regard to fixed work schedules. 2. Holidays 2.1. Holidays Observed The holidays observed by the City will be: “Independence Day,” July 4 The first Monday in September, "Labor Day" The second Monday in October, "Columbus Day" "Veteran's Day," November 11 The fourth Thursday in November, "Thanksgiving Day" Day after "Thanksgiving 12:00 Noon to 5:00 p.m. on Christmas Eve, December 24 “Christmas Day,” December 25 “New Year’s Day”, January 1 The third Monday in January, "Martin Luther King, Jr. Day" Friday proceeding "President's Day" The third Monday in February, "President's Day" The last Monday in May, "Memorial Day" 2.2. Proclaimed Holidays Every day proclaimed by the President, Governor or Mayor of the City as a public holiday and made applicable to City employees. 2.3. Day of Mourning Each day that the Governor declares a day of mourning or special observance as a holiday for State employees if the declaration makes it applicable to City employees. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 4 2.4. Floating Holiday In addition to the recognized holidays identified in Section 2.1, each eligible employee shall be allocated one floating holiday (equivalent to 8 hours for a full- time employee) per fiscal year on July 1st. Each employee hired prior to July 1 of each year shall be entitled to the floating holiday. Employees hired between July 1 and December 31 will receive 8 hours of floating holiday time. Employees hired between January 1 and June 30 will receive 4 hours of floating holiday time in the fiscal year in which they were hired. The floating holiday must be taken prior to June 30th of each year. The floating holiday will not be carried over from year to year and there shall be no cash value for the floating holiday during employment or upon separation from the City. 3. Annual Leave Program 3.1. Effective July 1, 2011 employees shall accrue monthly the following Annual Leave: Length of Service Monthly Accrual Rate Annual Leave Allowance 0-2 Years 12.67 hours 152 hours 3-5 Years 14.00 hours 168 hours 6-10 Years 16.00 hours 192 hours 11-15 Years 18.00 hours 216 hours 16+ Years 19.33 hours 232 hours 3.2. Effective July 1, 2011, employees shall not accrue any form of sick leave or disability wage, non-industrial or industrial. However, employees who have accrued fully-paid hours under either the sick leave or disability wage program for non-industrial illness and injury shall retain the balance of such hours accumulated as of July 1, 2011. Half-pay hours accumulated as provided by the disability wage plan will be converted to fully-paid hours (balance divided by 2), and credited to the balance of each employee covered by the disability wage plan. Employees in the disability wage plan who have not received their 2011 anniversary allotment of 40 hours of full-pay disability wage at the time of conversion will receive this additional 40 hours upon conversion. Paid leave for approved absence due to injury or illness may be charged against this balance at the employee’s discretion. Upon retirement from the City of Rohnert Park, an employee may convert any remaining sick leave balance to service credits pursuant to CalPERS regulations and procedures. 3.3. Annual Leave hours may be used to provide paid time off for any approved absence, including but not limited to vacation and illness. When annual leave is used for sick leave purposes, the City may require the employee to submit substantiating evidence of illness If a demonstrable pattern of abuse or evidence of suspected fraud is identified. 3.4. An employee may accumulate Annual Leave credits up to a maximum of 550 hours of Annual Leave. Accrual shall cease until the Annual Leave balance falls below the cap. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 5 3.5. Accumulated Annual Leave shall be converted to cash upon separation from City service. 3.6. The City will provide a short-term disability insurance program which includes income replacement of 60% and benefits coordination to employees. 4. Military Leave The City grants military leave and any related benefits maintenance, job seniority and retention rights to all employees for service in a uniformed service in accordance with state and federal law. The employee must notify his/her supervisor of upcoming military duty as soon as he/she becomes aware of his/her obligation. 5. Other Fringe Benefits 5.1. Fringe Benefit Administration The City reserves the right to select the insurance carrier(s) or to self- administer any of the fringe benefit programs provided. All benefits provided under this section (Section 5) are subject to the characteristics of each individual benefit program. The value or availability of the benefits provided in this Outline as originally worded or as amended from time to time may depend on their tax treatment by the State or Federal government or the decisions of other government agencies or departments, such as, but not limited to, the California Public Employees' Retirement System (CaIPERS). The City will endeavor to obtain the most favorable treatment legally possible from these other governmental entities. However, the City makes no representation concerning the value of such benefits to unit members or how they will be taxed or otherwise treated by other agencies or departments. The City's obligations under this Outline are limited to the direct cost of providing the salary and benefits as described in this Outline. The City shall have no additional financial obligation, even if the tax or other treatment of such salary or benefits by other agencies or departments reduces or eliminates their value to the employee. A. The City will continue all employee benefits and pay the appropriate premiums, as specified by law or the City's Personnel Rules. B. Employee may continue benefits during an authorized leave without pay for the period of the authorized leave by making payment to the City for said benefits. C. If there is any inconsistency between this section and the Personnel Rules and Regulations, the Personnel Rules and Regulations shall govern. 5.2. Administrative Leave The employees in the unit shall receive one hundred (100) hours of Administrative Leave on July 1, 2017 and each July 1st. thereafter for the term of this outline. Up to twenty (25) hours of unused Administrative Leave OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 6 may be paid in cash or its equivalent value applied towards an approved benefit program. Requests for pay of this leave shall be submitted to the City Manager on or before June 1, 2018 and each June 1st thereafter for the term of this outline. Payment shall be made no more than 30 days subsequent to the approval of the request by the City Manager. Any unused Administrative Leave hours remaining as of June 30, 2018 and each June 30th thereafter for the term of this outline shall be forfeited. 5.3. Catastrophic Leave Leave benefits shall be provided as outlined in City Council Resolution No. 2001-270, adopted December 11, 2001. 5.4. Hearing Aid Benefit That the City shall reimburse employees up to eighty percent (80%) with a lifetime maximum of nine hundred dollars ($900) for hearing aid devices. 5.5. Family Medical Leave Employees may request a leave of absence under the California Family Rights Act (CFRA) and/or the Federal Family Medical Leave Act (FMLA). Requests for family and medical leave shall comply with the requirements of the CFRA and/or the FMLA. 5.6. Light or Limited Duty Employees injured or ill from either on-the-job (industrial) or off-the-job (non-industrial) causes may, at the City's sole discretion, be assigned to light, limited, or modified duty. They may be assigned duties that differ from the normal work duties of the employee. By virtue of this paragraph, City does not intend to create any permanent light, limited or modified positions. 5.7. Americans with Disabilities Act The City recognizes it has an obligation under law to comply with the Americans with Disabilities Act (ADA) and disability provisions of the California Fail employment and Housing Act (FEHA). 5.8. Employee Death Upon death of an employee, any unused annual leave shall be paid to the employee's surviving spouse or beneficiary. In the absence of a spouse or beneficiary, any unused annual leave shall be paid to the primary beneficiary specified by the employee on the employee's enrollment/beneficiary card for City-provided life insurance. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 7 5.9. Health Insurance The City shall provide the insurance programs described in this Section. The City reserves the right to provide these insurance programs by self- insurance, through an insurance company or by any other method which provides the coverage outlined. Any premiums paid by the employee eligible for Section 125 will be deducted from the employee’s pay on a pre- tax basis. A. Health Insurance - The City shall offer employees and their eligible dependents, a health insurance program under the terms set forth below: 1) The City will contribute up to the following amounts per month toward the cost of employee medical insurance premiums for City’s offered health plans at the employee’s enrollment level: 2) The City shall provide a copy of the summary description of all health care programs offered by the City to each employee upon request. 3) Regular part-time employees may elect to participate in health insurance plans and the City will contribute a a pro- rata amount (based on the allocation of the position) towards the premium. The part-time employee will be responsible for the balance of the premium through payroll deductions. If the part-time employee does not select coverage, no cash payment will be made in lieu of the insurance. B. Alternate Benefit - Employees who opt out of medical coverage are eligible to receive an alternate benefit in the amount of $350 per month (provided as specified below) if they satisfy the following conditions: 1) The employee must provide proof of and attest to having minimum essential coverage as defined by the Internal Revenue Service (IRS) through another group health plan (or other plan deemed acceptable by the IRS) for the employee and for all individuals for whom the employee reasonably expects to claim a personal exemption Enrollment Level 7/1/2017- 6/30/18 2018-2019 2019-2020 2020-2021 Employee Only (Single) $500 $500 $515 $530 Employee + 1 (Two Party) $1,000 $1,000 $1,030.00 $1,060 Employee + 2 (Family) $1,400 $1,400 $1,450.00 $1,500 OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 8 deduction for the taxable plan year to which the opt out payment applies; 2) The employee must provide the City with proof of and attestation to coverage every plan year. Such proof and attestation must be provided at the time the employee first wishes to opt out of City-provided medical insurance, and during Open Enrollment each year thereafter, so long as the employee wishes to continue to opt out of City provided medical coverage. This alternate benefit shall be provided as a contribution to the employee’s deferred compensation account or for the purchase of supplemental life insurance and/or any other eligible benefit program approved and authorized by the City. The alternate benefit program meets all requirements for exclusion from “regular rate” calculations. C. Joint Commitment to Affordable Health Care –Ninety (90) days prior to open enrollment, parties will work together to review preliminary health care rates and discuss any potential changes to plan design to reduce costs. However, changes necessitated by REMIF’s transition from fully insured plans to self-insured plans are outside the scope of this outline. D. Dental Insurance - The City shall offer employees and their eligible dependents, dental insurance benefits under the terms as set forth below. The City shall provide a copy of the summary description of the dental program offered by the City to each employee upon request. 1) In general, the program includes basic dental insurance coverage of payment to Delta Dental PPO network dentists of the indicated percentage up to the maximum of $2,000 for each eligible person per year for the following benefits: 2) One hundred percent (100%) of the cost of diagnostic and preventative care. 3) Eighty-five percent (85%) of the cost of basic dental services. 4) Eighty-five percent (85%) of the cost of crowns and restorations. 5) Fifty percent (50%) of the cost of prosthodontics. 6) Two thousand dollar ($2,000) maximum benefit for dental services per person per year. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 9 7) Fifty percent (50%) of the cost of orthodontics with a one thousand five hundred dollar ($1,500) lifetime maximum benefit per person 8) Services rendered by dentists outside of the Delta Dental PPO network (including Delta Dental Non-PPO Dentists) are covered at a reduced rate; are subject to the limitation of section (v) above and a one thousand five hundred dollar ($1,500) lifetime maximum orthodontic benefit per person. E. Vision Insurance -The City shall offer employees and their eligible dependents, a vision insurance program under the terms as set forth below: 1. The City shall pay the applicable monthly premiums and any increases during the term of this Agreement. Premiums will be set by the insurer, or if self-insured by the City, using fiscally prudent methods. The City shall provide a copy of the summary description of the vision insurance program offered by the City to each employee upon request. 2. In general, the program includes an eye examination once each twelve (12) months, lenses once each twelve (12) months, and frames once each twenty-four (24) months. An employee may purchase contact lenses in lieu of the benefits summarized above. For details, allowances and restrictions, refer to the Plan documents. 5.10. Adoption Benefit The City will provide a six hundred dollar ($600) per child cash benefit to employees adopting minor children to help offset the cost of adoptions. 5.11. Bereavement Leave A. A regular employee shall be paid up to three (3) days of bereavement leave when there is a death in their immediate family. B. Immediate family in this case means: spouse, domestic partner, father, father-in-law, mother, mother-in-law, brother, brother-in-law, sister, sister-in-law, child (including step-children), step-parents, aunts, uncles, grandparents, grandparent-in-Iaw, grandchildren and relationships in loco- parentis, and close personal relationships, with the approval of the City Manager or his/her designee. 5.12. Funeral Benefit City will provide fifty percent (50%) co-payment, not to exceed two thousand dollars ($2,000), for funeral expenses for an employee or their spouse only. This funeral benefit will be considered secondary to and shall be coordinated with any and all other funeral benefits that may be payable to employee or spouse. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 10 5.13. Long-Term Disability Insurance The City shall provide, at no premium cost to employees, long-term disability income protection insurance coverage. The basic benefit shall be sixty six and two thirds percent (66 2/3%). In no event shall the employee receive more than full salary. The benefits provided under this section are subject to the characteristics of the individual program. The waiting period for the above long-term disability benefits plan shall be ninety (90) days. 5.14. Life Insurance A. The City will provide, at no premium cost to employees, one hundred thousand dollars ($100,000) life insurance coverage provided to employees and five thousand dollars ($5,000) for dependents, and which coverage includes accidental death and dismemberment benefits. B. The City will allow, subject to the insurance carrier's approval, any employee to purchase, at his or her own cost additional life insurance coverage under the City's group program. 5.15. Deferred Income The City will continue to make available to the employees a deferred income program, now being administered by Nationwide and International City Management Association (ICMA) or a similar program with another institution acceptable to City. 5.16. Retired, Deceased and/or Permanently and Totally Disabled Employees   This Section 5.16 (including subsections) applies only to employees hired prior to July 1, 2007, and providing continuous City service since that time. The language in this section has been revised for the purposes of administrative clarification, and does not represent a change in benefits provided to current employees or retirees. 1. Definition of Terms (a) “Eligible Employee” means any regular full-time or regular part-time benefited employee hired by the City before July 1, 2007, and who actively participates in and contributes to the CalPERS Retirement System, and who will be entitled, when eligible, to receive a retirement allowance from CalPERS. (b) “Retired Employee” or “Retiree” is a regular full-time or regular part-time benefited City employee hired before July 1, 2007 who retires from the City and thereafter receives a retirement OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 11 allowance from CalPERS. Retirement includes service retirement or disability retirement from the City of Rohnert Park. (c) “Continuous City service” is defined as being continuous regular full-time or regular part-time benefited City employment for calculating length of continuous service and service credit. Part- time (non-benefited) employment and approved unpaid leaves will not be used in calculating length of continuous service under this section. Any separation from City employment will void any previous accrual towards length of continuous service for purposes of this section, unless otherwise waived by the City Manager and due to extenuating circumstances. Layoffs with subsequent restoration and approved City paid leaves do not constitute separation from City service (and therefore will not void any previous accrual towards length of continuous service) for the purpose of this section. 2. Retirement Health Benefits For Employees Hired Prior to July 1 2007 (a) Retirement Medical Benefits Eligible Employees had the option to opt out of the retirement medical benefit provided previously, and all employees hired before July 1, 2007 who are currently in the unit elected to opt out, and are therefore covered by the provisions below. Eligible Employees hired before July 1, 2007 received the following Retirement Medical Benefit, which is fully vested. Eligible Employees who elected this opt-out option shall not be subject to any retiree medical cost-sharing requirements (i.e., normal cost) during the term of their employment. (i) The City established a Retiree Health Savings Account (RHSA) in the eligible employee’s name for the Eligible Employee. The City contributed $2,000.00 per year of Continuous City Service into the RHSA. For purposes of the service credit calculation, eligible employees received service credit on a pro rata basis by month and days of service as of January 1, 2015. (ii) Upon retirement from the City, the City will provide the Retired Employee with $500 per month for the cost of retirement healthcare premiums and qualified health care expenses until the Retired Employee reaches the age of Medicare eligibility. These funds shall be provided to each member on a pre-tax basis (to the extent permitted by law), through a Retiree Health Care Reimbursement Account (RHRA). In the event of the Retired Employee’s death, the benefits provided by the City to the Retired Employee under OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 12 this section will not continue for the survivors or dependent children of the Retired Employee. (iii) Retired Employees may participate at their own expense in the City’s group health insurance, subject to applicable group health insurance plan requirements. (b) Dental and Vision Benefits For Eligible Employees Upon retirement, City will provide/offer and pay on behalf of Retired Employees, the premium benefit(s) as provided for active employees at the time of retirement for dental care and vision care benefits for Retired Employees and one eligible dependent until the Retired Employee reaches the age of Medicare eligibility or elects to leave the City dental and vision system. Calculation of premium benefit will be prorated for regular, part-time employees. (i) (ii) In the event of the retired employee’s death, the benefits provided by the City to the Retired Employee under this section will not continue for the survivors or dependent children of the Retired Employee. (ii) Any Retired Employee who, after retirement from the City, becomes employed elsewhere and is covered by dental or vision care benefits by his/her new employer, said coverage provided by the City to the retired employee will be considered secondary to the coverage provided by his/her new employer, his/her new employer’s coverage shall be considered primary. Retired employees are required to notify the City’s Human Resources Department of any additional insurance coverage from new employers. 3. Retiree Health Benefits For Employees Hired On or After July 1, 2007 Beginning July 1, 2014, on a going forward basis, regular full-time or part-time benefited City employees hired on or after July 1, 2007 shall be eligible for the benefits described below in lieu of the benefits described in Sections 5.16(2)(a-b) above: (a) Effective July 1, 2014, the City will increase the contribution from $75.00 per month to $100.00 per month for active employees in paid status to a Retiree Health Savings Account (RHSA). The monthly contribution will end upon the employee’s date of retirement or separation from the City. (b) The City’s contribution to an employee’s RHSA shall be considered vested as to an employee terminating City OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 13 employment with five (5) or more consecutive years of City service. (c) Calculation of the monthly contribution will be prorated for regular part-time employees. No employee contribution is required. (d) Subject to the eligibility criteria of REMIF and/or insurance plans, employees hired after June 30, 2007 may participate as retirees at their own expense in the City's group health insurance. 5.17. Education and Training The City will provide an education and training assistance program to provide reimbursement to employees for tuition, parking and book costs only for attending and completing, with a satisfactory grade (C or better), courses in the adult high school program, at Santa Rosa Junior College, at Sonoma State University or any other educational institution acceptable to the City. All courses or classes for which reimbursement will be requested must be previously approved by the Department Head and the Human Resources Director prior to the start of said classes and approval requested on the appropriate City form. The maximum allowed amount reimbursable for tuition is one thousand dollars ($1,000) per instructional period plus books and materials, with a total reimbursable amount not to exceed three thousand dollars ($3,000) per calendar year. 5.18. Longevity Pay A. The City shall provide longevity pay to employees based on continuous years of service, as defined immediately below: Completed Years of Service Pay Percentage Increases 5 years 2% For each year completed thereafter ½% B. The maximum longevity pay percentage to be paid shall be ten percent (10%) of base pay. The “completed years of service” will be determined on January 1st and July 1st only and not on an employee’s employment anniversary date. C. Longevity Pay Program as outlined in Section 5.20 shall not apply to personnel hired after October 10, 1995. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 14 5.19. Retirement Programs A. Effective July 1, 2007, the City will provide the California Public Employees’ Retirement System (CalPERS) two and seven tenths percent (2.7%) at fifty-five (55) retirement program to miscellaneous member employees. Effective July 1, 2011 the City will provide the California Public Employees’ Retirement System (CalPERS) two percent (2.0%) at fifty-five (55) program to miscellaneous member employees hired on or after July 1, 2011. Effective August 1, 2011, all employees, regardless of program, will pay the required member contribution. 1) The City will continue to provide the "one-year highest compensation" optional provision in its contract with CaIPERS. 2) The City will absorb any employer contribution rate increases for miscellaneous members required by CaIPERS. 3) The City will modify the CalPERS Annual Cost-of- Living Allowance Increase (Section 21335) to provide for a 2.0% annual maximum cost-of-living increase for employees hired after December 31, 2007. Employees hired prior to December 31, 2007 shall be eligible for the 5.0% annual maximum cost- of-living allowance increase as defined in Section 21335. B. New Employees Hired On or After January 1, 2013 Who Are New Members of the CalPERS System. 1) Effective January 1, 2013, the City will provide the CalPERS two percent (2.0%) at sixty-two (62), highest three year average program to new miscellaneous employees (who meet the definition of a new member under PEPRA) hired on or after January 1, 2013. 2) Effective January 1, 2013, such new miscellaneous member employees hired on or after January 1, 2013, shall contribute at least fifty percent (50%) of the normal cost rate to CalPERS. 3) Pensionable compensation does not include monies paid to new miscellaneous members for bonuses, uniform allowance, overtime allowance or reimbursement for housing and vehicles, or any ad hoc or one-time payments pursuant to Government Code Section 7522.34(c). OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 15 C. The City makes no representation concerning the value of this benefit or how it may be taxed or treated by other agencies either presently or in the future. The City's obligation under this section is limited to the direct cost of providing the benefit as described. The City shall assume no further or additional financial obligation even if an outside agency imposes or determines there to be a financial obligation for the City or the employee. 5.20. 401(a) Retirement Plan If eligible under guidelines, members of the management unit may participate in the City’s 401(a) retirement plan. 5.21. Dependent Care Assistance Program City will continue to provide the Dependent Care Assistance Program (DCAP) as authorized by the Internal Revenue Service for the set-aside of employee pre-tax dollars for childcare as approved by the Internal Revenue Service (IRS) and the California Franchise Tax Board. 5.22. Health Care Tax-Free Dollar Account Program City will continue to provide the Health Care Tax-Free Dollar Account Program as authorized by the Internal Revenue Service for the set-aside of employee pre-tax dollars for the cost of monthly health care premiums as well as eligible unreimbursed medical expenses, as approved by the Internal Revenue Service (IRS) and the California Franchise Tax Board. 5.23. Counseling Services Payment by the City of any unreimbursed costs, up to a maximum City reimbursement of one thousand dollars ($1,000) per household per calendar year, for professional counseling service charges which are not paid for by City-provided or other insurance which the employee may have. Services not covered by City-provided health insurance programs with a maximum calendar year benefit of one thousand dollars ($1,000) per calendar year per household. 6. Salary & Miscellaneous Pays 6.1. Salary Adjustment (a) Effective the pay period beginning April 30, 2017 employees shall receive a five and one half (5.5%) increase to base salary. (b) Effective the first day of the pay period that includes July 1, 2018, employees shall receive a two and one half percent (2.5%) increase to base salary. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 16 (c) Effective the first day of the pay period that includes July 1, 2019, employees shall receive a two and one half percent (2.5%) increase to base salary. (d) Effective the first day of the pay period that includes July 1, 2020, employees shall receive a three percent (3%) increase to base salary. 6.2 Automobile Allowance Effective December 1, 2007, miscellaneous members of the management unit shall receive an automobile allowance in the amount of $322.30. On July 1 of each year, the automobile allowance shall be adjusted by an amount to be determined by the Bay Area All Urban Workers Consumer Price Index (CPI). The amount of the adjustment will be based upon the change in the CPI from April of the year prior to April of the current year. Effective July 1, 2016, the automobile allowance amount shall be $393.04 per month. 6.3 Paychecks When the City acquires the technology to do so, the City may distribute paychecks/Automatic Deposit Notices to employees electronically on payday. Employees requesting a physical paycheck may pick it up on break or lunchtime at the City Hall front counter on payday. 6.4 Pay Change Effective Dates Any and all pay changes provided to employees, including but not limited to step increases, special pay provisions, promotions, classification changes, or similar pay increases shall become effective as follows: if the effective date of the change is in the first week of the pay period the increase will be effective on the first day of the pay period that includes the effective date of the change. If the effective date is in the second week of the pay period the change will be effective the first day of the subsequent pay period. 7. Alcohol and Drugs The City agrees to continue to work together to assist any employees who have an alcohol, alcohol related, drug or substance abuse problem. It is mutually acknowledged that continued cooperative efforts would give employees a much better opportunity to recover from this very serious health problem. Since certain City employees are required to drive City vehicles, to think clearly and act responsibly as well as use various types of equipment, and it is known that drinking alcoholic beverages or taking certain drugs may slow a person’s reflexes and ability to think clearly. The probability of having an accident is increased after drinking alcohol or taking certain drugs. The City recognizes that this situation could place the employee as well as co-workers and the public at risk of injury. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 17 7.1 Alcoholic Beverages or Other Drugs Alcoholic beverages, or other drugs which affect an employee's ability to drive or function safely, shall not be used by employees during their assigned regular workday, nor while on assigned standby duty. 7.2 Off Duty Hours If an employee who has been drinking alcohol or using a drug which may impair the employee's ability to drive or function safely receives a call to return to work during off duty hours, the employee must decline the request to work. 7.3 Prescription Drugs Employees using prescription drugs that affect the employee's ability to work safely must inform their supervisor and may be assigned to other appropriate duties or required to take leave. 8. Smoking The City maintains as a clearly expressed condition of employment that employees refrain from smoking. 9. Residency This program is eliminated effective July 1, 2011. Employees receiving residency stipends of $60/mo. as of this date may retain them unless they fail to meet to condition of residing within the City. Should such an employee lose eligibility, no re-entry to the program is permitted. 10. Grievance Policy and Procedure City will comply with the grievance procedure as outlined in Resolution No. 79-22, adopted February 13, 1979, a copy of which is attached hereto. Failure to meet any time line or specifically comply with any other requirement of the grievance procedure constitutes a specific waiver and is a bar to further consideration of the grievance. 11. Use of City Facilities Employees and their spouse or domestic partner, and eligible dependents (as defined by City eligible dependent policy), will be allowed to participate with no fee imposed in open gym time, and to use the weight room and locker room facility at the Sports Center when such facilities are open, and to participate in the Lap Swim Program conducted at the City's swimming pools. In the event that the City determines that such use of the Sports Center or pools by employees, spouse or domestic partner, and/or dependents of employees adversely impacts the public's access to these facilities, the City may revoke this access and require payment of a fee. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 18 12. Management Rights Except as limited in this Outline and applicable State laws, the exclusive rights of the City shall include, but not be limited to, the right to determine the organization of city government and the purpose and mission of its departments and agencies, to determine the nature, levels and mode of delivery and for set standards of service to be offered to the public; and through its management officials to exercise control and discretion over its organization and operations; to establish and effect administrative regulations which are consistent with law and the specific provisions of this Outline; to direct its employees and establish employee performance standards and to require compliance therewith; to take disciplinary action; to discharge, suspend, reduce in pay, reprimand, withhold salary increases and benefits, or otherwise discipline employees subject to the requirements of applicable laws; to layoff its employees whenever their positions are abolished, or whenever necessary because of lack of work or lack of funds, or other legitimate reasons; to determine whether goods or services shall be made, purchased, or contracted for; to determine the methods, means, and numbers and kinds of personnel by which the City's services are to be provided; including the right to schedule and assign work and overtime; and to otherwise act in the interest of efficient service to the City; and to take all necessary actions to protect the public and carry out its mission in emergencies. 13. Work Curtailment (No Strike Clause) Under no circumstances shall any employee individually or collectively cause, sanction, honor or engage in any strike, sit-down, stay-in, sick-out, slow-down, speed-up, work to rule or any other type of job action, curtailment of work, restriction of production or restriction of service during the term of this Outline. 14. Term of Outline This Outline shall become effective on April 30, 2017 through June 30, 2021. 15. Invalidation 15.1 Suspension of Agreement If during the term of this Outline, any item or portion thereof of this Outline is held to be invalid by operation of any applicable law, rule, regulation, or order issued by governmental authority or tribunal of competent jurisdiction, or if compliance with or enforcement of the item or portion thereof shall be restrained by any tribunal, such provision of this Outline shall be immediately suspended and be of no effect hereunder so long as such law, rule, regulation, or order shall remain in effect. Such invalidation of a part or portion of this Outline shall not invalidate any remaining portion that shall continue in full force and effect. 15.2 Replacement OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 19 In the event of suspension or invalidation of any article or section of this Outline, City agrees, that except in an emergency situation, to arrive at a satisfactory replacement for such article or section. 16. Non-Discrimination City acknowledges that in receiving the benefits afforded by this Outline, no person shall in any way be favored or discriminated against to the extent prohibited by law. 17. Personnel Files Employees or their duly authorized representative have the right to inspect his or her personnel file maintained on him or her by the City. Employees have the right to respond in writing to anything contained or placed in their personnel file and any such responses shall become part of their personnel file. 18. Employee Performance Evaluations Employees have the right to respond in writing to the evaluation report should they so desire. Said responses should be submitted to the reviewer no later than thirty days after the evaluation interview. OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 20 Incorporated by Reference. The following are incorporated in this agreement by reference: City Council Resolution No. 79-22, adopted February 13, 1979 - Grievance Policy and Procedure City Council Resolution No. 2001-270, adopted December 11, 2001 – Catastrophic Leave City's Personnel Rules & Regulations OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 21 INDEX A  Adoption Benefit ∙ 9  Alcoholic Beverages or Other Drugs ∙ 19  Alternate Benefit ∙ 8  Americans with Disabilities Act ∙ 7  Annual Leave Program ∙ 4  Automobile Allowance ∙ 19  B  Bereavement Leave ∙ 9  C  Catastrohic Leave ∙ 6  Counseling services ∙ 18  D  Deferred Income Program ∙ 10  Dental insurance ∙ 8  Dependent Care Assistance Program ∙ 18  Disability Wage Program ∙ See Annual Leave  Program  E  Education ∙ 16  Employee Death ∙ 7  Employee Performance Evaluations ∙ 22  F  Family and Medical Leave ∙ 6  Funeral Benefit ∙ 9  G  Grievance Policy and Procedure ∙ 20  H  Health Care Tax-Free Dollar Account Program ∙  18  Health insurance ∙ 7  Hearing Aid Benefit ∙ 6  Holidays  Holidays Observed ∙ 3  L  Life Insurance ∙ 10  Light Duty ∙ 6  Limited Duty ∙ 6  Longevity ∙ 16  Long-Term Disability Insurance ∙ 9  M  Management Rights ∙ 20  Medical insurance ∙ 7  Military leave ∙ 5  Modified duty ∙ See light or limited duty  N  Non-Discrimination ∙ 22  O  Off Duty Hours  Alcohol and Drugs ∙ 20  OUTLINE-Management • April 30, 2017 through June 30, 2021 Page 22 P  Paychecks ∙ 19  Personnel Files ∙ 22  Prescription Drugs ∙ 20  R  Residency ∙ 20  Retiree Health Savings Account ∙ 13  Retiree medical benefit ∙ 14  Retirement Benefits ∙ 17  Retirement plan 401(a) ∙ 18  S  Short-term disability insurance program ∙ See  Annual Leave Program  Sick Leave ∙ See Annual Leave Program  Smoking ∙ 20  Suspension of Agreement ∙ 21  T  Term of Outline ∙ 21  Training ∙ 16  U  Use of City Facilities ∙ 20  V  Vacation.Leave ∙ See Annual Leave Program  Vision insurance ∙ 9