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HomeMy WebLinkAbout2002-02-05; City Council; 16538; Management Compensation and Benefits PlanCITY OF CARLSBAD - AGENDA BILL +/ Lti LB # lb~C.8 iTG. 2-6-03 DEPT. HD.“SL, TITLE: IEPT. & MODIFICATIONS TO THE MANAGEMENT COMPENSATION AND BENEFITS PLAN CITY ATT ~~ IECOMMENDED ACTION: ~~ Adopt Resolution No. d@&O1/5 modifymg the Management Compensation and Benefits Plan to 1) place the duty Fire Battalion Chiefs on a 24-hour shift schedule, 2) allow the Fire Battalion Chiefs to be compensated at straight time for any overtime hours worked covering for a duty Battalion Chief on leave, 3) modify their accrual rates and benefit schedules to be commensurate with CFA represented employees that work a 112 hour bi-weekly pay period and 4) clarify the retirement provisions provided to management employees who are considered “fire safety” employees. ITEM EXPLANATION: Backmound Over the past two years the Fire Department has been examining the Battalion Chiefs position in regard to their work schedule and how it impacts communication and emergency response, given an increasing volume of calls that need to be responded to each year. The Battalion Chiefs are responsible for various administrative duties as well as supervising a shift of six captains, one at each fire station. Currently, the three Battalion Chiefs who supervise a shift work four days a week, ten hours a day, in addition to being on standby for the remaining fourteen hours of the 24-hour day when their shift is on duty. Weekend duty coverage is rotated among the three duty Battalion Chiefs and one Division Chief in the same manner. When a Battalion Chief is on leave, the vacancy is typically filled with a Captain who is paid overtime (at time and a half) or another Battalion Chief or Division Chief who is not provided any additional compensation. This schedule limits the time the Battalion Chiefs have to work with their captains and crews to about 60% of the time the shift is on duty, making it difficult for the Battalion Chiefs to maintain consistent and effective communication with their crews. In addition, the Battalion Chiefs response in the evening hours may be delayed if the Battalion Chief is responding from home rather than from a fire station. Finally, the Battalion Chief position is viewed as a less than desirable promotional opportunity by Captains who work a 24-hour shift and receive time and a half for overtime. To alleviate some of these issues many fire agencies utilize shift Battalion Chiefs. In addressing these issues, various fire department personnel were interviewed, an internal survey of fire captains was conducted, other cities were surveyed as to their practices, outside counsel was consulted, and numerous meetings were held among the fire department’s management team. As a result of these inquiries, staff is recommending that the following changes be made to the work schedule and compensation for shift Battalion Chiefs: Place Battalion Chiefs assigned to a shift on a 24-hour shiWl12 hours per bi-weekly Compensate Battalion Chiefs at straight time for any overtime worked when covering pay period work schedule for a 24-hour duty Battalion Chief on leave Modify their holiday pay, sick accrual, vacation accrual, vacation accrual maximum, and vacation conversion to be commensurate with a 112 hour work week It should be noted that Fire Battalion Chiefs are still considered exempt under the Fair Labor Standards Act (FLSA) and that the aforementioned changes will not impact their exempt status. With these changes it is believed that communication between chief officers and their captains and crews will be improved, emergency scene management will be enhanced, training and procedural consistency across shifts will be increased, and a greater incentive for career advancement will be created. Although these changes may result in less time for Battalion Chiefs to accomplish administrative duties, it is anticipated that greater delegation and involvement of shift personnel in some of the more routine administrative tasks will help accommodate this transition. In addition, because of the way the retirement contracts with the California Public Employees’ Retirement System (CalPERS) are structured, any retirement provisions provided to employees represented by the Carlsbad Firefighters’ Association (CFA) are extended to all management employees who are considered “fire safety” employees. Currently, the classifications of Fire Chief, Fire Division Chief and Fire Battalion Chief are considered fre safety classifications. It is staffs recommendation that the City Council authorize a change to the Management Compensation Plan to clarify this practice. FISCAL IMPACT: The cost to transition the Fire Battalion Chiefs to a 24-hour shift schedule is approximately $6,800 per year. There is an annual savings of approximately $6,700 associated with hiring a Battalion Chief at straight time instead of hiring a Captain (as an acting Battalion Chief) at time and one half to fill in for a Battalion Chief on leave. However, this savings does not completely offset the cost of paying three Battalion Chiefs for holiday pay, which is estimated to be $13,500 per year. The difference of $6,800 per year would be paid for out of the Fire Department’s contingency account. The recommended language changes associated with extending the retirement benefits provided to CFA-represented employees to all fire management classifications will have a fiscal impact any time a change is made to the retirement benefits offered to CFA employees. As a result of negotiations with the Carlsbad Firefighters’ Association and the Memorandum of Understanding presented to the City Council for consideration in January 2002, the City will be making changes to the retirement benefits offered to all “fire safety” employees. The costs associated with extending such benefits to the fire management employees are included in the fiscal impact section of the agenda bill that outlines the CFA contract. EXHIBITS: 1. Resolution No. dsod -0 q$ (including the revised Management Compensation and 2. UnderlinedStrikeout Copy of the Management Compensation and Benefits Plan . Benefits Plan) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 10 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2002-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING THE MANAGEMENT COMPENSATION AND BENEFITS PLAN FOR FIRE MANAGEMENT EMPLOYEES WHEREAS, the City Council desires to increase the effectiveness of the Fire Battalion Chief classification; and WHEREAS, the City Council believes the creation of 24 hour shift Battalion Chiefs will improve communication, enhance emergency scene management, increase consistency across shifts, and provide a greater incentive for career advancement; and WHEREAS, the City Council believes Battalion Chiefs on shift should be compensated in a manner commensurate with their schedule; and WHEREAS, the City Council recognizes that Fire Battalion Chiefs are exempt under the Fair Labor Standards Act (FLSA) and that the proposed changes will not affect their exempt status; and WHEREAS, it is the intention of the City Council that Battalion Chiefs on shift receive straight time for overtime worked; and WHEREAS, it is the intention of the City Council that Battalion Chiefs on shift accrue sick leave and vacation at the same rates and maximums as CFA represented employees on shift and that Battalion Chiefs remain eligible for vacation conversion at a level commensurate with their 24-hour shift schedule; and WHEREAS, the City Council desires to have a Management Compensation and Benefits Plan that complies with existing laws and reflects current practice. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. That the above recitations are true and correct. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. That the City Council hereby amends the Management Compensation and Benefits Plan to provide overtime compensation at straight time for Battalion Chiefs working in place of a shift Battalion Chief on leave. 3. That the City Council hereby amends the Management Compensation and Benefits Plan to clarify that shift Battalion Chiefs earn andlor accrue vacation, sick leave, and holiday pay equivalent to employees represented by the Carlsbad Firefighters’ Association (CFA). 4. That the City Council hereby amends the Management Compensation and Benefits Plan to clarify that shift Battalion Chiefs qualify for 112 hours of vacation conversion provided they use 11 2 hours of vacation during the calendar year. 5. That the City Council hereby amends the Management Compensation and Benefits Plan to clarify that any retirement provisions provided by the California Public Employees’ Retirement System (CalPERS) to employees represented by the Carlsbad Firefighters’ Association are extended to all management employees who are considered “fire safety” employees. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council, held on this 5th day of FEBRUARY , 2002, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall NOES: None ABSENT: None (SEAL) MANAGEMENT COMPENSATION AND BENEFITS PLAN SECTION 1: INTRODUCTION This attachment constitutes the Management Compensation and Benefits Plan, which contains three parts: 1) an introduction, 2) a brief overview of how management performance will be evaluated and how compensation levels will be determined, and 3) a schedule of management benefits. A. Definitions 1. Management Employees - Management employees are defined as those employees whose classifications are listed on the Management Salary Structure 2. City Council Appointed Employees - The City Manager and City Attorney are hired by and responsible directly to the City Council. The salaries for these positions shall be set by the City Council. The City Manager and City Attorney will not be subject to the provisions of the Performance Management and Compensation program as outlined in Section 2 of this attachment. The schedule of management benefits (as outlined in Section 3 of this attachment) will apply to these positions, except as otherwise provided by the City Council. SECTION 2: PERFORMANCE MANAGEMENT AND COMPENSATION SYSTEM OVERVIEW The City Council has delegated its authority to the City Manager (and City Attorney, for management employees in the City Attorney’s Office)’ to administer a Performance Management and Compensation System for management employees under the following general guidelines. The system is comprised of two major components: Performance Management - emphasizing an employee development approach to performance appraisal, comprised of: j Alignment of individual contributions with organizational direction, Development and demonstration of competencies in the job, and j Measurement of levels of accomplishment of goals I Hereafter, all references to the City Manager include, with regard to management employees in the City Attorney’s Office, the City Attorney. 1 Compensation - based on a market driven approach to compensation, comprised of: Market based salary structure s Base pay 3 Incentive Pay PERFORMANCE MANAGEMENT The Performance Management Cycle The Performance Management Cycle coincides with the fiscal year and includes three separate phases: Performance Planning, Performance Update, and Performance Review. Ma.jor Components of Performance Management The two major components upon which a management employee’s performance is based are: the development and demonstration of specific competencies, and the accomplishment of goals. Management Competencies - All management employees are reviewed and evaluated based on how well they can develop and demonstrate specific competencies. Competencies are the knowledge, skills, abilities, and behaviors that are essential to the success of each management employee. Goals - Goals describe how the individual’s contribution links and aligns with their department’s goals and objectives and ultimately with those of the City Council. Goals are set at the beginning of the performance management cycle, and employees are evaluated at the end of the cycle as to how well they accomplished their assigned tasks for the year. Link to Compensation An employee’s performance, as evaluated against the selected competencies, is rewarded by a base pay adjustment. Base pay adjustments are ongoing and are added to the employee’s annual salary. An employee’s performance, as evaluated against the achievement of annual goals, is rewarded by an incentive award. Incentive payouts are one-time cash payments to an employee which do not recar automatically from year to year. Both the base pay increases and the incentive payments comprise the cash compensation available to management employees. 2 6 COMPENSATION The Performance Management and Compensation System is based upon a market based approach to compensation, comprised of: A market based salary structure A base pay program based on the development and demonstration of competencies 0 An incentive pay program based on the measurable achievement of specific goals Market Based Salary Structure - Base Pay Program The Management Salary Schedule, attached hereto as Attachment A, establishes a salary grade for each management classification. The City Manager is delegated authority to place employees at any salary within the range, as determined by the appointee’s knowledge, skills and abilities. The area of the salary grade between the minimum and the bottom of the market range is intended for inexperienced new hires. The Human Resources Department will conduct an annual survey of a reasonable number of comparable agencies in San Diego County. Job content, job classification and salary information on each City of Carlsbad classification will be compared with appropriate classifications in the comparator group. The City Council delegates to the City Manager the authority to assign job classifications to a specific salary grade, based on both benchmark salary information and internal relationships within the organization. Changes to the “minimum” and “market range” of each salary grade within this structure shall be approved by the City Council. The City Council determines the budget amount to be spent on management base pay increases for each fiscal year, and the base pay increase percentages will be determined after all of the performance ratings have been determined. All base pay increases are prospective. Management employees whose current salary is above the maximum of the market range for their assigned salary grade shall continue to be paid at that base rate until their salary falls within the market range, and until such time shall not be eligible for base pay increases. INCENTIVE PAY PLAN The Incentive Pay plan is provided in addition to the Base Pay plan. All management employees are eligible for incentive pay, regardless of their position in the salary range. All management employees’ salary above base pay is unfixed and uncertain until 3 7 completion of the evaluation and award process annually, in which the incentive portion, if any, is determined for each management employee. Employees earn the incentive based on their achievement of goals established during the performance management process. For each goal, achievement is rated based on one of three performance levels: Threshold, Target or Optimum. Unlike base pay increases which are determined at the end of the performance management cycle, the potential incentive percentages will be made public at the beginning of the performance review cycle. Incentive awards are expressed as a percentage of base pay. The City Council will determine the annual amount to be budgeted for management incentive pay, and an Incentive Pay matrix will be distributed to all management employees. This matrix will change from year to year based on the City's economics, market data, and demographics. At the end of the fiscal year and upon completion of the review process, incentive awards will be granted to employees based on their level of goal accomplishment during the performance management cycle. No management employee shall be awarded incentive compensation in an amount greater than 10% of that employee's base salary. The City Manager will periodically provide the City Council with progress reports on the operation of the Performance Management and Compensation System. SECTION 3: SCHEDULE OF BENEFITS Life Insurance All management employees shall receive City paid life insurance in an amount equal to two times the basic yearly earnings. To determine benefits, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Supplemental Life, at an amount equal to City paid life insurance, is available at the employee's cost. Dependent life is also available at the employee's cost. Former CMWD management employees shall receive Group Term Life Insurance, Accidental Death and Dismemberment, and Dependent Life Insurance as contained in their Individual Agreement. Retirement All management employees shall participate in the California Public Employees' Retirement System (CalPERS). The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the CalPERS system. Optional benefits unique to the City of Carlsbad's contract with CalPERS are outlined in the Coverage Key of the CalPERS Procedures Manual. A copy of this manual is kept on file in the Human Resources Department. 4 Retirement Contribution All management employees, other than sworn police management employees and management employees who are considered fire safety employees, shall have their portion of the retirement contribution to the California Public Employees’ Retirement System paid by the City. The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the CalPERS system. For sworn police management employees, the City will contract with the California Public Employees’ Retirement System (CalPERS) to provide the “3% @ 50” retirement benefit effective the pay period inclusive of June 30,2001. Effective the pay period inclusive of July 1, 2001, the City will pay on behalf of all sworn police management employees eight percent (8%) of the employee’s retirement contribution to CalPERS. Effective the pay period inclusive of July 1,2001, each sworn police management employee will pay the additional one percent (1%) employee retirement contribution to CalPERS. This one percent employee retirement contribution will be made on a pre-tax basis. Management employees who are considered fire safety employees are eligible for the same retirement benefits and are subject to the same retirement provisions as those provided to employees represented by the Carlsbad Firefighters’ Association. Management Leave Management employees, except Police Lieutenants, are exempt from overtime requirements under the Fair Labor Standards Act. Fire Battalion Chiefs are also exempt from overtime requirements under FLSA, however, Fire Battalion Chiefs that are required to work a 24-hour shiWll2 hours per bi-weekly pay period schedule are paid straight time for overtime when they are covering the duty for a Battalion Chief on leave. Management employees in the City are paid on a salary basis versus an hourly basis. Pursuant to FLSA regulation 29 CFR Section 541.5d, the City can make deductions from salary or leave accounts for partial day absences for personal reasons or sickness because the City has a policy and practice of requiring its employees to be accountable to the public that they have earned their salaries. A partial day absence is an absence of less than the employee’s regular work day. Pursuant to FLSA regulation 29 CFR Section 541.1 18 (a)(2) and (a)(3), the City may make salary or leave reductions based upon full day absences. Partial day or full day absences shall be first charged against the exempt employee’s vacation, sick, or executive leave account. In the event the exempt employee does not have sufficient time in hisiher leave account to cover the absence, deductions without pay will be made on full days only. 5 9 e Vacation All management employees (except Fire Battalion Chiefs that work 112 hours per bi-weekly pay period) shall earn vacation on the following basis: - Beginning with the first (1st) working day through the completion of five (5) full calendar years of continuous service - 80 houdyear (3.08 hours biweekly). - Beginning the sixth (6th) year of employment through the completion of ten (10) full calendar years of continuous service - 120 hourdyear (4.62 hours biweekly). - Beginning the eleventh (1 lth) year of employment through the completion of eleven (1 1) full calendar years of continuous service - 128 hourdyear (4.92 hours biweekly). - Beginning the twelfth (12th) year of employment through the completion of twelve (12) full calendar years of continuous service - 136 hoursiyear (5.23 hours biweekly). - Beginning the thirteenth (13th) year of employment through the completion of thirteen (13) full calendar years of continuous service - 144 hourdyear (5.54 hours biweekly). - Beginning the fourteenth (14th) year of employment through the completion of fifteen (15) full calendar years of continuous service - 152 hoursiyear (5.84 hours biweekly). - Beginning the sixteenth (16th) year of continuous employment, vacation time shall be accrued, and remain at a rate of 160 hours for every full calendar year of continuous employment thereafter (6.15 hours biweekly). Management employees with comparable service in local government agencies may be granted credit for such service for the purpose of computing vacation at the discretion of the City Manager. All management employees shall be permitted to earn and accrue up to and including three hundred and twenty (320) hours of vacation, and no employee will be allowed to earn and accrue vacation hours in excess of the three hundred and twenty (320) hour maximum.* The City Manager shall be responsible for the granting of vacation to all management personnel, except in the case of the City Attorney’s Office, where the City Attorney shall be responsible for granting vacation. * If there are unusual circumstances that would require an employee to exceed the vacation accrual maximum, hehhe must submit a request in writing to the Department Head and the City 6 Manager. The Department Head and the City Manager may grant such a request if it is in the best interest of the City. Requests will be handled on a case-by-case basis and will be considered only in extreme circumstances. Former CMWD management employees shall earn and accrue vacation up to and including the maximum as contained in their Individual Agreement. Fire Battalion Chiefs that work a 112 hours per bi -weekly pay period shall em and accrue vacation up to and including the maximum commensurate with Carlsbad Firefighters' Association (CFA) represented employees that work 112 hours per bi-weekly pay period. Vacation Conversion Each December, management employees (including Police Lieutenants and Police Captains) will be allowed to voluntarily convert up to 80 hours of accrued vacation to cash, provided that they have used 80 hours of vacation during the prior calendar year as defined by the 26 pay periods in that calendar year. Fire Battalion Chiefs that work 112 hours per bi-weekly pay period will be allowed to voluntarily convert up to 112 hours of accrued vacation to cash, provided that they have used 112 hours of vacation during the prior calendar year as defined by the 26 pay periods in that calendar year. Executive Leave All management personnel, except former CMWD management employees and the position of Police Lieutenant, shall receive 56 hours per fiscal year for executive leave. Persons employed in the position of Police Lieutenant are not eligible to receive executive leave because they receive overtime at the rate of time and one-half for actual hours worked. The 56 hours will be credited at the beginning of each fiscal year to individual leave balances. This leave must be used within the same fiscal year. The City Manager is authorized to provide ten (10) additional hours of executive leave per year to any management employee who is required to work extended hours due to emergencies such as fires, storms, floods, or other emergencies. Sick Leave Twelve (12) days of sick leave are accrued per year. Accumulation is unlimited (employees cannot receive payment for unused sick leave). Fire Battalion Chiefs that work 112 hours per bi-weekly pay period shall accrue sick leave commensurate with CFA represented employees that work at 112 hours per bi- weekly pay period. 7 e Bereavement Leave An employee may use up to an equivalent of three work days of paid leave if required to be absent kom duty due to the death of a member of the employee’s immediate family. Additional time off may be authorized by the Department Head and charged to accrued vacation or treated as leave without pay. The “immediate family” shall be defined as: spouse, child, parent, sibling, grandparents; the aforementioned either natural, legally adopted, step or in-law, or any person over which the employee acts as legal guardian, or a verifiable current member of the immediate household. The employee may be required to submit proof of relative’s death before final approval of leave with pay is granted. 0 Leave of Absence 1. Leave of Absence Without Pay A. General Policy Any employee may be granted a leave of absence without pay pursuant to the recommendation of hisiher Department Head and the approval of the City Manager. A leave without pay may be granted for any of the following reasons: 1. Illness or disability. 2. To take a course of study which will increase the employee’s usefulness on return to hisher position in the City service. 3. For personal reasons acceptable to the City Manager and Department Head. B. Authorization Procedure Requests for leave of absence without pay shall be made upon forms prescribed by the City Manager and shall state specifically the reason for the request, the date when the leave is desired to begin, the probable date of return, and the agreement to reimburse 8 the City for any benefit premiums paid by the City during the leave of absence. The request shall normally be initiated by the employee, but may be initiated by hisher Department Head, and, upon written recommendation of the Department Head that it be granted, modified or denied, shall be promptly transmitted to the City Manager. A copy of any approved request for leave of absence without pay shall be delivered promptly to the Directors of Finance and Human Resources. C. Length of Leave and Extension A leave of absence without pay may be made for a period not to exceed six months, unless otherwise approved by the City Manager. The procedure for granting extensions shall be the same as that in granting the original leave provided that the request for extension is made no later than fourteen (14) calendar days prior to the expiration of the original leave. D. Return From Leave When an employee intends to return from an authorized leave of absence without pay either before or upon the expiration of such leave, he/she shall contact hisiher Department Head at least fourteen (14) calendar days prior to the day he/she plans to return. The Department Head shall promptly notify the City Manager of the employee’s intention. The employee shall return at a rate of pay not less than the rate at the time the leave of absence began. E. Effect of Leave Without Pay An employee shall utilize all hisher vacation, and/or sick leave (if applicable) prior to taking an authorized leave of absence without Pay. A prorata reduction of normal annual vacation and sick leave accruals shall be applicable to an approved absence without pay. Any absence without pay constitutes a break of continuous service with the City. The granting of any leave without pay exceeding two full scheduled pay periods shall cause the employee’s salary anniversary date and calculation of full-time continuous service to be extended by the number of calendar days for which such leave has been granted less the first two full pay periods of such leave. 9 An employee’s accumulation of sick leave and vacation leave will cease after the completion of two (2) full scheduled pay periods in which the employee has not received compensation due to a leave of absence without pay. Accrual will be reinstituted beginning the first day of the first full pay period after the employee has returned to work. F. Leave Without Pay - Insurance Payments and Privileges An employee on leave without pay may continue hisher City insurance benefits by reimbursing the City for the costs of insurance on a monthly basis during the period of the leave. Failure to reimburse the City for such benefits during the term of a leave of absence will result in the employee’s coverage terminating on the first day following the month in which the last payment was received. An employee on leave of absence without pay shall not have all of the privileges granted to regular employees. 0 Pregnancy Disability Leave An employee disabled by pregnancy shall be allowed to utilize a combination of accrued sick leave and vacation time and leave without pay to take a leave for a reasonable period of time, not to exceed four months. An employee shall utilize all accrued leave prior to taking leave without pay. Reasonable period of time means that period during which the employee is disabled on account of pregnancy, childbirth, or related conditions. An employee who plans to take a leave pursuant to this article shall give the City reasonable notice of the date the leave shall commence and the estimated duration of the leave. Family and Medical Leave of Absence PMLA) An employee may be granted a FMLA of up to 12 weeks ina 12 month period for one or more of the following reasons: - for the birth/placement of a child for adoption or foster care, - to care for an immediate family member with a serious health condition, or - to take medical leave when the employee is unable to work because of a serious condition. 10 FMLA may be paid or unpaid and may be granted concurrently and in conjunction with other leave and benefit provisions. Specific details regarding the provisions of this leave are available by contacting the Human Resources Department. 0 Military Leave Military leave shall be authorized in accordance with the provisions of State and Federal law. The employee must furnish satisfactory proof to hisiher Department Head, as far in advance as possible, that he/she must report to military duty. 0 Jury Duty When called to jury duty, an employee, having provided at least five working days written notice, shall be entitled to hisiher regular compensation. Employees released early from jury duty shall report to their supervisor for assigmnent for the duration of the shift. Employees shall he entitled to keep mileage reimbursement paid while on jury duty. A Department Head may, at hisiher sole discretion, contact the court and request an exemption and/or postponement ofjury service on behalf of an employee. Employees released early from jury duty shall report to their supervisor for assipnent for the duration of the work day. At the discretion of the supervisor, an employee may he released from reporting back to work if an unreasonable amount of the work day remains in light of travel time to the job site after release. Health Insurance for Retirees Effective January 1,2001, management employees will he covered by the Public Employees’ Medical and Hospital Care Act and will be eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Management employees who retire from the City, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled at the time of separation from employment and their effective date of retirement is within 120 days of separation. The City will contribute up to a maximum of sixteen dollars ($16.00) per month toward the cost of each retiree’s enrollment in the CalPERS Health Program. Direct authorization may he established for automatic deduction of payments for health insurance administered by CalPERS. Employees who retire from the City, either service or disability, shall be eligible to continue to participate in the City’s dental and/or vision insurance programs. The cost of such dental and01 11 vision insurance for the employee and eligible dependents shall be borne solely by the employee. The City shall not charge the COBRA administrative cost to the retirees. In order to qualify for this benefit, the retiree must have a minimum of five (5) years of City service and be a minimum of fifty (50) years old. The retiree must make arrangements with the City to prepay hisher monthly premiums for dental and/or vision insurance and must keep such payments current to ensure continued coverage. A retiree who does not choose continued coverage upon retirement is not eligible to return to the CalPERS health insurance program or the City’s dental or vision insurance programs. Sick Leave Conversion Any management employee who has accrued and maintains a minimum of one hundred (100) hours of sick leave shall be permitted to convert up to twelve (12) days of sick leave and uncompensated sick leave to vacation at a ratio of three (3) sick leave days per one (1) day of vacation. The sick leave conversion option will be provided during the first week of each fiscal year. Conversion can only be made in increments of full day vacation days. Employees will not be allowed to convert sick leave to vacation if such conversion would put them over the vacation accrual maximum. Former CMWD management employees per their Individual Agreement, have the option to sell back 100% of accumulated sick leave in excess of 250 hours at their current rate. The City, at its discretion, may purchase any accumulated sick leave from any of these referenced management employees at the current rate. Separation Compensation All management employees involuntarily separated from the City service due to budget cutbacks, layoffs, contracting out of service or for other reasons not due to misconduct which would justify involuntary separation shall receive one month’s salary computed at the employee’s actual salary at the time of separation. Holidays All management employees, except for employees represented by the Carlsbad Police Management Association, shall be paid holidays in accordance with the schedule of eleven (1 1) holidays and one (1) floating holiday, as established by the City Council. Fire Battalion Chiefs are subject to the same holiday schedule that is outlined for management employees. However, they are compensated for holidays in the same manner as CFA represented employees that work 112 hours per bi-weekly pay period. The floating holiday may be used at the discretion of the employee with prior approval of the Department Head. 12 16 The scheduled paid holidays that will be official City holidays for 2000 shall be as follows: New Year’s Day Columbus Day Lincoln’s Birthday Veteran’s Day Washington’s Birthday Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day MLK (Floating Holiday) The scheduled paid holidays that will be official City holidays for 2001 and beyond shall be as follows: New Year’s Day Columbus Day Martin Luther King’s Birthday Veteran’s Day Presidents’ Day Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day One (1) Floating Holiday All employees represented by the Carlsbad Police Management Association (CPMA) shall be paid for the same holidays that employees represented by the Carlshad Police Officers’ Association (CPOA) are paid. Police Lieutenants assigned to Patrol shall receive holiday pay in the same manner as CPOA-represented employees assigned to Patrol. Police Lieutenants assigned to areas other than Patrol shall receive holiday pay in the same manner as CPOA- represented employees assigned to areas other than Patrol. Health Benefits Management employees will participate in a flexible benefits program which includes medical insurance, dental insurance, vision insurance and flexible spending accounts (FSAs). Each of these components is outlined below. Medical Insurance Effective January 1,2001, management employees will be covered by the Public Employees’ Medical and Hospital Care Act and will be eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Under the CalPERS Health Program, the City will contribute up to a maximum of sixteen dollars ($16.00) per month toward the cost of each employee’s health insurance. If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. Effective January 1,2001, the City will contribute the following monthly amounts (called “Benefits Credits”) on behalf of each active management employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health Program, 2) 13 contributions in the name of the employee to the City’s flexible spending account(s), 3) contributions of some or all of the premium for dental coverage or vision coverage: (4 For employees with “employee only” coverage, the City shall contribute two hundred sixty-two dollars ($262) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and two hundred sixty two dollars ($262), the employee will pay the difference. @) For employees with “employee plus one dependent” coverage, the City shall contribute five hundred twelve dollars ($512) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and five hundred twelve dollars ($512), the employee will pay the difference. (c) For employees with “employee plus two or more dependents” coverage, the City shall contribute six hundred seventy-nine dollars ($679) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and six hundred seventy-nine dollars ($679), the employee will pay the difference. Effective January 1,2002, the City will contribute the following monthly amounts (called “Benefits Credits”) on behalf of each active management employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health Program, 2) contributions in the name of the employee to the City’s flexible spending account(s), 3) contributions of some or all of the premium for dental coverage or vision coverage: (4 For employees with “employee only” coverage, the City shall contribute two hundred eighty-seven dollars ($287) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and two hundred eighty-seven dollars ($287), the employee will pay the difference. For employees with “employee plus one dependent” coverage, the City shall contribute five hundred sixty-two dollars ($562) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and five hundred sixty-two dollars ($562), the employee will pay the difference. For employees with “employee plus two or more dependents” coverage, the City shall contribute seven hundred forty-four dollars ($744) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and seven hundred forty-four dollars ($744), the employee will pay the difference. Under no circumstances will any unused Benefits Credits as outlined above be paid to the employee in cash. If the amount contributed by the City (Benefits Credits) exceeds the cost of the medical and dental insurance purchased by the employee, the employee will have the option 14 of using any “excess credits” to purchase vision insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Dental Insurance Management employees will be eligible to enroll in a City-sponsored dental plan. Should an - employee elect to enroll for medical benefits, he/she must also enroll in dental coverage at the same coverage level (employee only, employee plus one dependent, employee plus two or more dependents) as medical insurance. ” Vision Insurance Management employees will be eligible to enroll in a City-sponsored vision insurance plan. Employees may elect to purchase vision insurance or to opt out of the vision insurance program. -~ If the decision is made to purchase vision insurance, a management employee may purchase vision insurance at any level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). Opt Out Provision Management emulovees who do not wish to participate in the CalPERS Health Program will - .- - have the choice of opting out of the City’s medical insurance program, provided they can show that they are covered under another insurance program. Employees who elect this option will be given a reduced City contribution amount (Benefits Credits) of one hundred fifty dollars ($150) per month to be used toward the purchase of dental insurance, vision insurance, or as a contribution to a flexible spending account. The City contribution amount of one hundred fifty dollars ($150) per month will be panted to any employee who elects to opt out of the CalPERS Health Program, regardless of the employee’s level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). Effective January 1,2002, employees who elect this option will be given a reduced City contribution amount (Benefits Credits) of one hundred sixty-five dollars ($165) per month to be used toward the purchase of dental insurance, vision insurance, or as a contribution to a flexible spending account. The City contribution amount of one hundred sixty-five dollars ($165) per month will be granted to any employee who elects to opt out of the CalPERS Health Program, regardless of the employee’s level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). Under no circumstances will any unused Benefits Credits as outlined above be paid to the employee in cash. Former CMWD management employees shall receive Medical, Dental and Vision, and Retiree Medical as contained in their Individual Agreement. 15 19 Annual Physical Examination andor Physical Fitness Testing All management employees, excluding former CMWD management employees, shall be eligible for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal year to pay the cost of an employee's annual physical examination and/or physical fitness testing. The annual physical examination may be completed by a physician of the employee's choice. Each employee claiming reimbursement shall be required to submit original receipts to the Human Resources Department in lieu of submitting them to the insurance company for payment. The annual physical examination offered to management employees provides physical fitness testing and information regarding lifestyle changes that promote optimum health. Program components include, but are not limited to: Computerized Heart Risk Profile, Complete Blood Profile, Nutritional Assessment, Diet Program, Body Measurements, Lung Assessment, Consultations. etc. Long-Term Disability Insurance (LTD) Long-term disability is available for all management personnel after 30 days of disability. The LTD premium cost is paid by the City. Former CMWD management employees shall receive LTD benefits as contained in their Individual Agreement. Accidental Death and Dismemberment This is a voluntary program available to any employee who chooses to participate. Employees may select among various levels of coverage which cover accidents and death. The City will pay one-third (1/3) of the cost, the employee pays two-thirds (2/3) and 100% of dependent coverage. Deferred Compensation The City shall provide deferred compensation plan(s) which may be utilized by any management employee. The City reserves the right to accept or reject any particular plan and to impose specific conditions upon the use of any plan. Former CMWD management employees may voluntarily participate in the Deferred Compensation Plan as contained in their Individual Agreement. The City matches former CMWD employee contributions up to a maximum of 7.5% of the employee's earnings. Drug and Alcohol Policy It is the policy of the City of Carlsbad to provide a work environment free from the effects of drugs and alcohol consistent with the directives of the Drug Free Workplace Act. This policy is 16 applicable to all employees covered by the Management Compensation and Benefits Plan. A copy of this policy is available in the Human Resources Department. As a provision of this policy, the City provides a voluntary Employee Assistance Program (EM) to assist employees who seek help for substance abuse or other personal problems affecting work or family life. This program is available to employees and their family members and offers 24- hour access to confidential professional EAF' assistance for emergency or urgent situations. The toll free number is 800 999-7222. For more specific information, contact the Human Resources Department. 17 Strikeout Copy MANAGEMENT COMPENSATION AND BENEFITS PLAN SECTION 1: INTRODUCTION This attachment constitutes the Management Compensation and Benefits Plan, which contains three parts: 1) an introduction, 2) a brief overview of how management performance will be evaluated and how compensation levels will be determined, and 3) a schedule of management benefits. A. Definitions 1. Management Employees - Management employees are defined as those employees whose classifications are listed on the Management Salary Structure 2. City Council Appointed Employees - The City Manager and City Attorney are hired by and responsible directly to the City Council. The salaries for these positions shall be set by the City Council. The City Manager and City Attorney will not be subject to the provisions of the Performance Management and Compensation program as outlined in Section 2 of this attachment. The schedule of management benefits (as outlined in Section 3 of this attachment) will apply to these positions, except as otherwise provided by the City Council. SECTION 2: PERFORMANCE MANAGEMENT AND COMPENSATION SYSTEM OVERVIEW The City Council has delegated its authority to the City Manager (and City Attorney, for management employees in the City Attorney’s Office)’ to administer a Performance Management and Compensation System for management employees under the following general guidelines. The system is comprised of two major components: Performance Management - emphasizing an employee development approach to performance appraisal, comprised of: Alignment of individual contributions with organizational direction, Measurement of levels of accomplishment of goals = Development and demonstration of competencies in the job, and ’ Hereafter, all references to the City Manager include, with regard to management employees in the City Attorney’s Office, the City Attorney. 1 Compensation - based on a market driven approach to compensation, comprised of Market based salary structure 3 Base pay 3 Incentive Pay PERFORMANCE MANAGEMENT The Performance Management Cycle The Performance Management Cycle coincides with the fiscal year and includes three separate phases: Performance Planning, Performance Update, and Performance Review. Major Components of Performance Management The two major components upon which a management employee’s performance is based are: the development and demonstration of specific competencies, and the accomplishment of goals. Management Competencies - All management employees are reviewed and evaluated based on how well they can develop and demonstrate specific competencies. Competencies are the knowledge, skills, abilities, and behaviors that are essential to the success of each management employee. Goals - Goals describe how the individual’s contribution links and aligns with their department’s goals and objectives and ultimately with those of the City Council. Goals are set at the beginning of the performance management cycle, and employees are evaluated at the end of the cycle as to how well they accomplished their assigned tasks for the year. Link to Compensation An employee’s performance, as evaluated against the selected competencies, is rewarded by a base pay adjustment. Base pay adjustments are ongoing and are added to the employee’s annual salary. An employee’s performance, as evaluated against the achievement of annual goals, is rewarded by an incentive award. Incentive payouts are one-time cash payments to an employee which do not recur automatically from year to year. Both the base pay increases and the incentive payments comprise the cash compensation available to management employees. 2 23 COMPENSATION The Performance Management and Compensation System is based upon a market based approach to compensation, comprised of: A market based salary structure A base pay program based on the development and demonstration of competencies An incentive pay program based on the measurable achievement of specific goals Market Based Salary Structure - Base Pay Program The Management Salary Schedule, attached hereto as Attachment A, establishes a salary grade for each management classification. The City Manager is delegated authority to place employees at any salary within the range, as determined by the appointee’s knowledge, skills and abilities. The area of the salary grade between the minimum and the bottom of the market range is intended for inexperienced new hires. The Human Resources Department will conduct an annual survey of a reasonable number of comparable agencies in San Diego County. Job content, job classification and salary information on each City of Carlsbad classification will be compared with appropriate classifications in the comparator group. The City Council delegates to the City Manager the authority to assign job classifications to a specific salary grade, based on both benchmark salary information and internal relationships within the organization. Changes to the “minimum” and “market range” of each salary grade within this structure shall be approved by the City Council. The City Council determines the budget amount to be spent on management base pay increases for each fiscal year, and the base pay increase percentages will be determined after all of the performance ratings have been determined. All base pay increases are prospective. Management employees whose current salary is above the maximum of the market range for their assigned salary grade shall continue to be paid at that base rate until their salary falls within the market range, and until such time shall not be eligible for base pay increases. INCENTIVE PAY PLAN The Incentive Pay plan is provided in addition to the Base Pay plan. All management employees are eligible for incentive pay, regardless of their position in the salary range. All management employees’ salary above base pay is unfixed and uncertain until 3 completion of the evaluation and award process annually, in which the incentive portion, if any, is determined for each management employee. Employees earn the incentive based on their achievement of goals established during the performance management process. For each goal, achievement is rated based on one of three performance levels: Threshold, Target or Optimum. Unlike base pay increases which are determined at the end of the performance management cycle, the potential incentive percentages will be made public at the beginning of the performance review cycle. Incentive awards are expressed as a percentage of base pay. The City Council will determine the annual amount to be budgeted for management incentive pay, and an Incentive Pay matrix will be distributed to all management employees. This matrix will change from year to year based on the City's economics, market data, and demographics. At the end of the fiscal year and upon completion of the review process, incentive awards will be granted to employees based on their level of goal accomplishment during the performance management cycle. No management employee shall be awarded incentive compensation in an amount greater than 10% of that employee's base salary. The City Manager will periodically provide the City Council with progress reports on the operation of the Performance Management and Compensation System. SECTION 3: SCHEDULE OF BENEFITS Life Insurance All management employees shall receive City paid life insurance in an amount equal to two times the basic yearly earnings. To determine benefits, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Supplemental Life, at an amount equal to City paid life insurance, is available at the employee's cost. Dependent life is also available at the employee's cost. Former CMWD management employees shall receive Group Term Life Insurance, Accidental Death and Dismemberment, and Dependent Life Insurance as contained in their Individual Agreement. Retirement All management employees shall participate in the California Public Employees' Retirement System (CalPERS). The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the CalPERS system. Optional benefits unique to the City of Carlsbad's contract with CalPERS are outlined in the Coverage Key of the CalPERS Procedures Manual. A copy of this manual is kept on file in the Human Resources Department. 4 Retirement Contribution All management employees, other than sworn police management employees, and management employees who are considered fire safety employees, shall have their portion of the retirement contribution to the California Public Employees’ Retirement System paid by the City. The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the CalPERS system. For sworn police management employees, the City will contract with the California Public Employees’ Retirement System (CalPERS) to provide the “3% @ 50” retirement benefit effective the pay period inclusive of June 30,2001. Effective the pay period inclusive of July 1, 2001, the City will pay on behalf of all sworn police management employees eight percent (8%) of the employee’s retirement contribution to CalPERS. Effective the pay period inclusive of July 1,2001, each sworn police management employee will pay the additional one percent (1%) employee retirement contribution to CalPERS. This one percent employee retirement contribution will be made on a pre-tax basis. Management employees who are considered fire safety employees are eligible for the same retirement benefits and are subject to the same retirement provisions as those provided to employees represented by the Carlsbad Firefighters’ Association. Management Leave Management employees, except Police Lieutenants, are exempt from overtime requirements under the Fair Labor Standards Act. Fire Battalion Chiefs are also exempt from overtime requirements under FLSA, however, Fire Battalion Chiefs that are required to work a 24- hour shifUll2 hours per bi-weekly pay period schedule are paid straight time for overtime when they are covering the duty for a Battalion Chief on leave. Management employees in the City are paid on a salary basis versus an hourly basis. Pursuant to FLSA regulation 29 CFR Section 541.5d, the City can make deductions from salary or leave accounts for partial day absences for personal reasons or sickness because the City has a policy and practice of requiring its employees to be accountable to the public that they have earned their salaries. A partial day absence is an absence of less than the employee’s regular work day. Pursuant to FLSA regulation 29 CFR Section 541.1 18 (a)(2) and (a)(3), the City may make salary or leave reductions based upon full day absences. Partial day or full day absences shall be first charged against the exempt employee’s vacation, sick, or executive leave account. In the event the exempt employee does not have sufficient time in hisher leave account to cover the absence, deductions without pay will be made on full days only. 5 0 Vacation All management employees (except Fire Battalion Chiefs that work 112 hours per bi-weekly pay period) shall earn vacation on the following basis: - Beginning with the frst (1st) working day through the completion of five (5) full calendar years of continuous service - 80 hourdyear (3.08 hours biweekly). - Beginning the sixth (6th) year of employment through the completion of ten (10) full calendar years of continuous service - 120 hourdyear (4.62 hours biweekly). - Beginning the eleventh (1 lth) year of employment through the completion of eleven (1 1) full calendar years of continuous service - 128 hourslyear (4.92 hours biweekly). - Beginning the twelfth (12th) year of employment through the completion of twelve (12) full calendar years of continuous service - 136 hourslyear (5.23 hours biweekly). - Beginning the thirteenth (13th) year of employment through the completion of thirteen (13) full calendar years of continuous service - 144 hourdyear (5.54 hours biweekly). - Beginning the fourteenth (14th) year of employment through the completion of fifteen (1 5) full calendar years of continuous service - 152 hourdyear (5.84 hours biweekly). - Beginning the sixteenth (16th) year of continuous employment, vacation time shall be accrued, and remain at a rate of 160 hours for every full calendar year of continuous employment thereafter (6.15 hours biweekly). Management employees with comparable service in local government agencies may be granted credit for such service for the purpose of computing vacation at the discretion of the City Manager. All management employees shall be permitted to earn and accrue up to and including three hundred and twenty (320) hours of vacation, and no employee will be allowed to earn and accrue vacation hours in excess of the three hundred and twenty (320) hour maximum.* The City Manager shall be responsible for the granting of vacation to all management personnel, except in the case of the City Attorney’s Office, where the City Attorney shall be responsible for granting vacation. * If there are unusual circumstances that would require an employee to exceed the vacation accrual maximum, heishe must submit a request in writing to the Department Head and the City 6 Manager. The Department Head and the City Manager may grant such a request if it is in the best interest of the City. Requests will be handled on a case-by-case basis and will be considered only in extreme circumstances. Former CMWD management employees shall earn and accrue vacation up to and including the maximum as contained in their Individual Agreement. Fire Battalion Chiefs that work a 112 hours per bi-weekly pay period shall earn and accrue vacation up to and including the maximum commensurate with Carlsbad Firefighters' Association (CFA) represented employees that work 112 hours per hi-weekly pay period. 0 Vacation Conversion Each December, management employees (includmg Police Lieutenants and Police Captains) will be allowed to voluntarily convert up to 80 hours of accrued vacation to cash, provided that they have used 80 hours of vacation during the prior calendar year7 as defined by the 26 pay periods in that calendar year. - Fire Battalion Chiefs that work 112 hours per hi-weekly pay period will he allowed to voluntarily convert up to 112 hours of accrued vacation to cash, provided that they have used 112 hours of vacation during the prior calendar year as defined by the 26 pay periods in that calendar year. 0 Executive Leave All management personnel, except former CMWD management employees and the position of Police Lieutenant, shall receive 56 hours per fiscal year for executive leave. Persons employed in the position of Police Lieutenant are not eligible to receive executive leave because they receive overtime at the rate of time and one-half for actual hours worked. The 56 hours will be credited at the beginning of each fiscal year to individual leave balances. This leave must be used within the same fiscal year. The City Manager is authorized to provide ten (10) additional hours of executive leave per year to any management employee who is required to work extended hours due to emergencies such as fires, storms, floods, or other emergencies. 0 Sick Leave Twelve (12) days of sick leave are accrued per year. Accumulation is unlimited (employees cannot receive payment for unused sick leave). Fire Battalion Chiefs that work 112 hours per bi-weekly pay period shall accrue sick leave commensurate with CFA represented employees that work at 112 hours per bi-weekly pay period. 7 0 Bereavement Leave An employee may use up to an equivalent of three work days of paid leave if required to be absent from duty due to the death of a member of the employee’s immediate family. Additional time off may be authorized by the Department Head and charged to accrued vacation or treated as leave without pay. The “immediate family” shall be defined as: spouse, child, parent, sibling, grandparents; the aforementioned either natural, legally adopted, step or in-law, or any person over which the employee acts as legal guardian, or a verifiable current member of the immediate household. The employee may be required to submit proof of relative’s death before final approval of leave with pay is granted. 0 Leave of Absence 1. Leave of Absence Without Pay A. General Policy Any employee may be granted a leave of absence without pay pursuant to the recommendation of hisher Department Head and the approval of the City Manager. A leave without pay may be granted for any of the following reasons: 1. Illness or disability. 2. To take a course of study which will increase the employee’s usefulness on return to hisher position in the City service. 3. For personal reasons acceptable to the City Manager and Department Head. B. Authorization Procedure Requests for leave of absence without pay shall be made upon forms prescribed by the City Manager and shall state specifically the reason for the request, the date when the leave is desired to begin, the probable date of return, and the agreement to reimburse 8 the City for any benefit premiums paid by the City during the leave of absence. The request shall normally be initiated by the employee, but may be initiated by hisher Department Head, and, upon written recommendation of the Department Head that it be granted, modified or denied, shall be promptly transmitted to the City Manager. A copy of any approved request for leave of absence without pay shall be delivered promptly to the Directors of Finance and Human Resources. C. Length of Leave and Extension A leave of absence without pay may be made for a period not to exceed six months, unless otherwise approved by the City Manager. The procedure for granting extensions shall be the same as that in granting the original leave provided that the request for extension is made no later than fourteen (14) calendar days prior to the expiration of the original leave. D. Return From Leave When an employee intends to return from an authorized leave of absence without pay either before or upon the expiration of such leave, he/she shall contact hisher Department Head at least fourteen (14) calendar days prior to the day he/she plans to return. The Department Head shall promptly notify the City Manager of the employee’s intention. The employee shall return at a rate of pay not less than the rate at the time the leave of absence began. E. Effect of Leave Without Pay An employee shall utilize all hisher vacation, andor sick leave (if applicable) prior to taking an authorized leave of absence without Pay. A prorata reduction of normal annual vacation and sick leave accruals shall be applicable to an approved absence without pay. Any absence without pay constitutes a break of continuous service with the City. The granting of any leave without pay exceeding two full scheduled pay periods shall cause the employee’s salary anniversary date and calculation of full-time continuous service to be extended by the number of calendar days for which such leave has been granted less the first two full pay periods of such leave. 9 30 An employee’s accumulation of sick leave and vacation leave will cease after the completion of two (2) full scheduled pay periods in which the employee has not received compensation due to a leave of absence without pay. Accrual will be reinstituted beginning the first day of the first full pay period after the employee has returned to work. F. Leave Without Pay - Insurance Payments and Privileges An employee on leave without pay may continue hisher City insurance benefits by reimbursing the City for the costs of insurance on a monthly basis during the period of the leave. Failure to reimburse the City for such benefits during the term of a leave of absence will result in the employee’s coverage terminating on the first day following the month in which the last payment was received. An employee on leave of absence without pay shall not have all of the privileges granted to regular employees. 0 Pregnancy Disability Leave An employee disabled by pregnancy shall be allowed to utilize a combination of accrued sick leave and vacation time and leave without pay to take a leave for a reasonable period of time, not to exceed four months. An employee shall utilize all accrued leave prior to taking leave without pay. Reasonable period of time means that period during which the employee is dlsabled on account of pregnancy, childbirth, or related conditions. An employee who plans to take a leave pursuant to this article shall give the City reasonable notice of the date the leave shall commence and the estimated duration of the leave. 0 Family and Medical Leave of Absence CFMLA) An employee may be granted a FMLA of up to 12 weeks in a 12 month period for one or more of the following reasons: - for the birtWplacement of a child for adoption or foster care, - to care for an immediate family member with a serious health condition, or - to take medical leave when the employee is unable to work because of a serious condition. 10 31 FMLA may be paid or unpaid and may be granted concurrently and in conjunction with other leave and benefit provisions. Specific details regarding the provisions of this leave are available by contacting the Human Resources Department. e Military Leave Military leave shall be authorized in accordance with the provisions of State and Federal law. The employee must furnish satisfactory proof to hisiher Department Head, as far in advance as possible, that he/she must report to military duty. 0 Jury Duty When called to jury duty, an employee, having provided at least five working days written notice, shall be entitled to hisher regular compensation. Employees released early from jury duty shall report to their supervisor for assignment for the duration of the shift. Employees shall be entitled to keep mileage reimbursement paid while on jury duty. A Department Head may, at hisher sole discretion, contact the court and request an exemption and/or postponement ofjury service on behalf of an employee. Employees released early from jury duty shall report to their supervisor for assignment for the duration of the work day. At the discretion of the supervisor, an employee may be released kom reporting back to work if an unreasonable amount of the work day remains in light of travel time to the job site after release. Health Insurance for Retirees Effective January 1,2001, management employees will be covered by the Public Employees’ Medical and Hospital Care Act and will be eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Management employees who retire kom the City, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled at the time of separation from employment and their effective date of retirement is within 120 days of separation. The City will contribute up to a maximum of sixteen dollars ($16.00) per month toward the cost of each retiree’s enrollment in the CalPERS Health Program. Direct authorization may be established for automatic deduction of payments for health insurance administered by CalPERS. Employees who retire from the City, either service or disability, shall be eligible to continue to participate in the City’s dental and/or vision insurance programs. The cost of such dental and/or 11 vision insurance for the employee and eligible dependents shall be borne solely by the employee. The City shall not charge the COBRA administrative cost to the retirees. In order to qualify for this benefit, the retiree must have a minimum of five (5) years of City service and be a minimum of fifty (50) years old. The retiree must make arrangements with the City to prepay hisher monthly premiums for dental and/or vision insurance and must keep such payments current to ensure continued coverage. A retiree who does not choose continued coverage upon retirement is not eligible to return to the CalPERS health insurance program or the City’s dental or vision insurance programs. Sick Leave Conversion Any management employee who has accrued and maintains a minimum of one hundred (100) hours of sick leave shall be permitted to convert up to twelve (12) days of sick leave and uncompensated sick leave to vacation at a ratio of three (3) sick leave days per one (1) day of vacation. The sick leave conversion option will be provided during the first week of each fiscal year. Conversion can only be made in increments of full day vacation days. Employees will not be allowed to convert sick leave to vacation if such conversion would put them over the vacation accrual maximum. I Former CMWD management employees per their Individual Agreement, have the option to sell back 100% of accumulated sick leave in excess of 250 hours at their current rate. The City, at its discretion, may purchase any accumulated sick leave from any of these referenced management employees at the current rate. Separation Compensation All management employees involuntarily separated from the City service due to budget cutbacks, layoffs, contracting out of service or for other reasons not due to misconduct whch would justify involuntary separation shall receive one month’s salary computed at the employee’s actual salary at the time of separation. Holidays All management employees, except for employees represented by the Carlsbad Police Management Association, shall be paid holidays in accordance with the schedule of eleven (1 1) holidays and one (1) floating holiday, as established by the City Council. Fire Battalion Chiefs are subject to the same holiday schedule that is outlined for management employees. However, they are compensated for holidays in the same manner as CFA represented employees that work 112 hours per bi-weekly pay period. The floating holiday may be used at the discretion of the employee with prior approval of the Department Head. 12 33 The scheduled paid holidays that will be official City holidays for 2000 shall be as follows: New Year’s Day Columbus Day Lincoln’s Birthday Veteran’s Day Washington’s Birthday Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day MLK (Floating Holiday) The scheduled paid holidays that will be official City holidays for 2001 and beyond shall be as follows: New Year’s Day Columbus Day Martin Luther King’s Birthday Veteran’s Day Presidents’ Day Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day One (1) Floating Holiday All employees represented by the Carlsbad Police Management Association (CPMA) shall be paid for the same holidays that employees represented by the Carlsbad Police Officers’ Association (CPOA) are paid. Police Lieutenants assigned to Patrol shall receive holiday pay in the same manner as CPOA-represented employees assigned to Patrol. Police Lieutenants assigned to areas other than Patrol shall receive holiday pay in the same manner as CPOA- represented employees assigned to areas other than Patrol. Health Benefits Management employees will participate in a flexible benefits program which includes medical insurance, dental insurance, vision insurance and flexible spending accounts (FSAs). Each of these components is outlined below. Medical Insurance Effective January 1,2001, management employees will be covered by the Public Employees’ Medical and Hospital Care Act and will be eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Under the CalPERS Health Program, the City will contribute up to a maximum of sixteen dollars ($16.00) per month toward the cost of each employee’s health insurance. If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. Effective January 1,2001, the City will contribute the following monthly amounts (called “Benefits Credits”) on behalf of each active management employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health Program, 2) 13 contributions in the name of the employee to the City’s flexible spending account(s), 3) contributions of some or all of the premium for dental coverage or vision coverage: (a) For employees with “employee only” coverage, the City shall contribute two hundred sixty-two dollars ($262) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and two hundred sixty two dollars ($262), the employee will pay the difference. (b) For employees with “employee plus one dependent” coverage, the City shall contribute five hundred twelve dollars ($512) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and five hundred twelve dollars ($512), the employee will pay the difference. (c) For employees with “employee plus two or more dependents” coverage, the City shall contribute six hundred seventy-nine dollars ($679) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and six hundred seventy-nine dollars ($679), the employee will pay the difference. Effective January 1, 2002, the City will contribute the following monthly amounts (called “Benefits Credits”) on behalf of each active management employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health Program, 2) contributions in the name of the employee to the City’s flexible spending account(s), 3) contributions of some or all of the premium for dental coverage or vision coverage: (4 For employees with “employee only” coverage, the City shall contribute two hundred eighty-seven dollars ($287) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and two hundred eighty-seven dollars ($287), the employee will pay the difference. For employees with “employee plus one dependent” coverage, the City shall contribute five hundred sixty-two dollars ($562) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and five hundred sixty-two dollars ($562), the employee will pay the difference. For employees with “employee plus two or more dependents” coverage, the City shall contribute seven hundred forty-four dollars ($744) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and seven hundred forty-four dollars ($744), the employee will pay the difference. Under no circumstances will any unused Benefits Credits as outlined above be paid to the employee in cash. If the amount contributed by the City (Benefits Credits) exceeds the cost of the medical and dental insurance purchased by the employee, the employee will have the option 14 of using any “excess credits” to purchase vision insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Dental Insurance Management employees will be eligible to enroll in a City-sponsored dental plan. Should an employee elect to enroll for medical benefits, he/she must also enroll in dental coverage at the same coverage level (employee only, employee plus one dependent, employee plus two or more dependents) as medical insurance. Vision Insurance Management employees will be eligible to enroll in a City-sponsored vision insurance plan. - Employees may elect to purchase vision insurance or to opt out of the vision insurance program. If the decision is made to purchase vision insurance, a management employee may purchase vision insurance at any level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). ~~ Opt Out Provision Management employees who do not wish to participate in the CalPERS Health Program will - have the choice of opting out of the City’s medical insurance program, provided they can show that they are covered under another insurance program. Employees who elect this option will be given a reduced City contribution amount (Benefits Credits) of one hundred fifty dollars ($150) per month to be used toward the purchase of dental insurance, vision insurance, or as a contribution to a flexible spending account. The City contribution amount of one hundred fifty dollars ($150) per month will be granted to any employee who elects to opt out of the CalPERS Health Program, regardless of the employee’s level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). Effective January 1,2002, employees who elect this option will be given a reduced City contribution amount (Benefits Credits) of one hundred sixty-five dollars ($165) per month to be used toward the purchase of dental insurance, vision insurance, or as a contribution to a flexible spending account. The City contribution amount of one hundred sixty-five dollars ($165) per month will be granted to any employee who elects to opt out of the CalPERS Health Program, regardless of the employee’s level of coverage (employee only, employee plus one dependent, employee plus two or more dependents). Under no circumstances will any unused Benefits Credits as outlined above be paid to the employee in cash. Former CMWD management employees shall receive Medical, Dental and Vision, and Retiree Medical as contained in their Individual Agreement. .. 15 36 Annual Physical Examination and/or Physical Fitness Testing All management employees, excluding former CMWD management employees, shall be eligible for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal year to pay the cost of an employee's annual physical examination and/or physical fitness testing. The annual physical examination may be completed by a physician of the employee's choice. Each employee claiming reimbursement shall be required to submit original receipts to the Human Resources Department in lieu of submitting them to the insurance company for payment. The annual physical examination offered to management employees provides physical fitness testing and information regarding lifestyle changes that promote optimum health. Program components include, but are not limited to: Computerized Heart Risk Profile, Complete Blood Profile, Nutritional Assessment, Diet Program, Body Measurements, Lung Assessment, Consultations. etc. Long-Term Disability Insurance (LTD) Long-term disability is available for all management personnel after 30 days of disability. The LTD premium cost is paid by the City. Former CMWD management employees shall receive LTD benefits as contained in their Individual Agreement. Accidental Death and Dismemberment This is a voluntary program available to any employee who chooses to participate. Employees may select among various levels of coverage which cover accidents and death. The City will pay one-third (1/3) of the cost, the employee pays two-thirds (2/3) and 100% of dependent coverage. Deferred Compensation The City shall provide deferred compensation plan(s) which may be utilized by any management employee. The City reserves the right to accept or reject any particular plan and to impose specific conditions upon the use of any plan. Former CMWD management employees may voluntarily participate in the Deferred Compensation Plan as contained in their Individual Agreement. The City matches former CMWD employee contributions up to a maximum of 7.5% of the employee's earnings. Drug and Alcohol Policy It is the policy of the City of Carlsbad to provide a work environment free from the effects of drugs and alcohol consistent with the directives of the Drug Free Workplace Act. This policy is 16 33 applicable to all employees covered by the Management Compensation and Benefits Plan. A copy of this policy is available in the Human Resources Department. As a provision of this policy, the City provides a voluntary Employee Assistance Program (EM) to assist employees who seek help for substance abuse or other personal problems affecting work or family life. This program is available to employees and their family members and offers 24- hour access to confidential professional EAF' assistance for emergency or urgent situations. The toll free number is 800 999-7222. For more specific information, contact the Human Resources Department. 17 3e' LEXSTAT 29 CFR 541.118 LEXIS PUBLISHING'S CODE OF FEDERAL REGULATIONS Copyright (c) 2002, LEXIS Publishing *** THIS SECTION IS CURRENT THROUGH THE JANUARY 1, 2002 ISSUE OF *** *** THE FEDERAL REGISTER *** TITLE 29 -- LABOR SUBTITLE B -- REGULATIONS RELATING TO LABOR CHAPTER V -- WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR SUBCHAPTER A -- REGULATIONS PART 541 -- DEFINING AND DELIMITING THE TERMS "ANY EMPLOYEE EMPLOYED IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYEE EMPLOYED IN THE CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN ELEMENTARY OR SECONDARY SCHOOLS), OR IN THE CAPACITY OF OUTSIDE SALESMAN" SUBPART B -- INTERPRETATIONS EMPLOYEE EMPLOYED IN A BONA FIDE EXECUTIVE CAPACITY 29 CFR 541.118 § 541.118 Salary basis. meaning of the regulations if under his employment agreement he regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of his compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed. Subject to the exceptions provided below, the employee must receive his full salary for any week in which he performs any work without regard to the number of days or hours worked. This policy is also subject to the general rule that an employee need not be paid for any workweek in which he performs no work. deductions from his predetermined compensation are made for absences occasioned by the employer or by the operating requirements of the business. Accordingly, if the employee is ready, willing, and able to work, deductions may not be made for time when work is not available. (2) Deductions may be made, however, when the employee absents himself from (a) An employee will be considered to be paid "on a salary basis" within the (1) An employee will not be considered to be "on a salary basis" if work for a day or more for personal reasons, other than sickness or accident. Thus, if an employee is absent for a day or longer to handle personal affairs, his salaried status will not be affected if deductions are made from his salary for such absences. (3) Deductions may also be made for absences of a day or more occasioned by sickness or disability (including industrial accidents) if the deduction is made compensation for loss of salary occasioned by both sickness and disability. in accordance with a bona fide plan, policy or practice of providing Thus, if the employer's particular plan, policy or practice provides compensation for such absences, deductions for absences of a day or longer because of sickness or disability may be made before an employee has qualified under such plan, policy or practice, and after he has exhausted his leave allowance thereunder. It is not required that the employee be paid any portion of his salary for such days or days for which he receives compensation for leave under such plan, policy or practice. Similarly, if the employer operates under a State sickness and disability insurance law, or a private sickness and disability insurance plan, deductions may be made for absences of a working day or longer if benefits are provided in accordance with the particular law or plan. In the case of an industrial accident, the "salary basis" requirement will be met if the employee is compensated for loss of salary in accordance with the applicable compensation law or the plan adopted by the employer, provided the employer also has some plan, policy or practice of providing compensation for sickness and disability other than that relating to industrial accidents. duty, attendance as a witness, or temporary military leave. The employer may, (4) Deductions may not be made for absences of an employee caused by jury however, offset any amounts received by an employee as jury or witness fees or military pay for a particular week against the salary due for that particular week without loss of the exemption. major significance include only those relating to the prevention of serious significance will not affect the employee's salaried status. Safety rules of danger to the plant, or other employees, such as rules prohibiting smoking in explosive plants, oil refineries, and coal mines. (6) The effect of making a deduction which is not permitted under these interpretations will depend upon the facts in the particular case. Where deductions are generally made when there is no work available, it indicates that exemption would not be applicable to him during the entire period when such there was no intention to pay the employee on a salary basis. In such a case the by these interpretations is inadvertent, or is made for reasons other than lack deductions were being made. On the other hand, where a deduction not permitted of work, the exemption will not be considered to have been lost if the employer reimburses the employee for such deductions and promises to comply in the future. (5) Penalties imposed in good faith for infractions of safety rules of major consist of a predetermined amount constituting all or part of the employee's compensation. In other words, additional compensation besides the salary is not example, by a branch manager who receives a salary of $ 155 or more a week and inconsistent with the salary basis of payment. The requirement will be met, for also be met by a branch manager who receives a percentage of the sales or in addition, a commission of 1 percent of the branch sales. The requirement will profits of the branch, if the employment arrangement also includes a guarantee of at least the minimum weekly salary (or the equivalent for a monthly or other period) required by the regulations. Another type of situation in which the requirement will be met is that of an employee paid on a daily or shift basis, receive not less than the amount specified in the regulations in any week in if the employment arrangement includes a provision that the employee will which the employee performs any work. Such arrangements are subject to the exceptions in paragraph (a) of this section. The test of payment on a salary purpose of circumventing the requirement of payment "on a salary basis". For basis will not be met, however, if the salary is divided into two parts for the additional $ 50 which is made subject to deductions which, are not permitted example, a salary of $ 200 in each week in which any work is performed, and an under paragraph (a) of this section. initial or terminal week of employment is not considered inconsistent with the (c) Initial and terminal weeks. Failure to pay the full salary in the salary basis of payment. In such weeks the payment of a proportionate part of However, this should not be construed to mean that an employee is on a salary the employee's salary for the time actually worked will meet the requirement. basis within the meaning of the regulations if he is employed occasionally for a Moreover, even payment of the full weekly salary under such circumstances would few days and is paid a proportionate part of the weekly salary when so employed. not meet the requirement, since casual or occasional employment for a few days at a time is inconsistent with employment on a salary basis within the meaning of the regulations. HISTORY: [38 FR 11390, May 7, 1973, as amended at 40 FR 7092, Feb. 19, 19751 (b) Minimum guarantee plus extras. It should be noted that the salary may AUTHORITY: AUTHORITY NOTE APPLICABLE TO ENTIRE PART: 29 U.S.C. 213; Pub. L. 101-583, 104 Stat. 2871; Reorganization Plan No. 6 of 1950 (3 CFR 1945-53 Comp. p. 1004); Secretary's Order No. 13-71 (36 FR 8755). NOTES: EFFECTIVE DATE NOTE: Paragraph (b) in § 541.118 was revised at 46 FR 3014, Jan. 13, 1981. In accordance with the President's Memorandum of January 29, 1981 (46 FR 11227, Feb. 6, 1981). the effective date was postponed indefinitely at 46 FR 11972, Feb. 12, 1981. The text of paragraph (b) set forth above remains in effect pending further action by the issuing agency. The text of the postponed regulation appears below. § 541.118 Salary basis. ***** consist of a predetermined amount constituting all or part of the employee's (b) Minimum guarantee plus extras. It should be noted that the salary may compensation. In other words, additional compensation besides the salary is not example, by a branch manager who receives a salary of $ 250 or more a week and inconsistent with the salary basis of payment. The requirement will be met, for in addition, a commission of 1 percent of the branch sales. The requirement will also be met by a branch manager who receives a percentage of the sales or profits of the branch, if the employment arrangement also includes a guarantee of at least the minimum weekly salary (or the equivalent for a monthly or other period) required by the regulations. Another type of situation in which the requirement will be met is that of an employee paid on a daily or shift basis, if the employment arrangement includes a provision that the employee will receive not less than the amount specified in the regulations in any week in which the employee performs any work. Such arrangements are subject to the exceptions in paragraph (a) of this section. The test of payment on a salary basis will not be met, however, if the salary is divided into two parts for the purpose of circumventing the requirement of payment "on a salary basis". For example, a salary of $ 300 in each week in which any work is performed, and an additional $ 55 which is made subject to deductions which are not permitted under paragraph (a) of this section. ***** [PUBLISHER'S NOTE: UNITED STATES SUPREME COURT CASES SIGNIFICANTLY DISCUSSING SECTION -- Auer v Robbins (1997) 519 US 452, 137 L Ed 2d 79, 117 S Ct 9051 NOTES APPLICABLE TO ENTIRE SUBTITLE: CROSS REFERENCES: Railroad Retirement Board: See Employees' Benefits, 20 CFR chapter 11. Social Security Administration: See Employees' Benefits, 20 CFR chapter 111. EDITORIAL NOTE: Other regulations issued by the Department of Labor appear in 20 CFR ChaDters I. IV, V, VI, VII; 30 CFR chapter I; 41 CFR chapters 50, 60, and .~~ ~ 61; and-48 CFR.chapter 29. NOTES APPLICABLE TO ENTIRE PART: EFFECTIVE DATE NOTE: The President's Memorandum Of January 29, 1981 (46 FR 11227, Feb. 6, 1981), directed Federal agencies to postpone for sixty days from January 29, 1981, the effective date of all regulations that they had promulgated in final form and had scheduled to become effective during such sixty day period. .. Several sections in part 541 were revised at 46 FR 3013, Jan. 13, 1981, and the effective date subsequently postponed. For further explanation, see the notes following the text of affected sections in this part. 1099 words