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HomeMy WebLinkAbout2002-11-05; City Council; 16957; Side Letter With Police Officers AssociationCITY OF CARLSBAD - AGENDA BILL \B # 16,957 ITG. 11/5/02 TITLE: IECOMMENDED ACTION: IEPT. HR APPROVAL OF A SIDE LETTER WITH THE CARLSBAD POLICE OFFICERS’ASSOCIATION AND MODIFICATION TO THE MANAGEMENT COMPENSATION AND BENEFITS PLAN CITY ATTY CITY MG 1. Adopt Resolution No. 2002-319 approving a side letter with the Carlsbad Police Officers’ Association (CPOA) that extends the term of the current Memorandum of Understanding (MOU) between the City of Carlsbad and CPOA to December 3 1,2007, and amends the articles in this MOU titled, “Compensation Adjustments,” “Retirement Benefits.” and “Medical Insurance.” 2. Adopt Resolution No. 2002-320 authorizing paying and reporting the value of California Public Employees’ Retirement System (CalPERS) Employer Paid Member Contributions (EPMC) for all local police employees and for all CPOA,represented employees effective the pay period inclusive of January 1,2004. 3. Adopt Resolution No. 2002-321 modifying the Management Compensation and Benefits Plan to a) extend the EPMC benefit to sworn police management employees and b) make minor language changes to bring the Management Compensation and Benefits Plan into compliance with current practice. ITEM EXPLANATION: Side Letter On March 6,2001, the City Council adopted Resolution No. 2001-68 approving a Memorandum of Understanding with the CPOA with a term of five (5) years that would expire on December 31,2005. At the request of the CPOA, in May, 2002 the City of Carlsbad (“City’) agreed to open discussions regarding certain terms and provisions covered by the current MOU between the parties. Representatives of the City and the CPOA have reached agreement on the following amendments to the current MOU: Amendment to Term The side letter specifies an agreement to extend the term of the MOU through December 3 1, 2007. Amendment to Compensation Adiustments The side letter specifies that the effective dates of the agreed upon salary increases in 2003, 2004, and 2005 will change from “the pay period inclusive of January 1” to “the pay period inclusive of July 1.” The following additional salary increases are specified during the duration of the contract: Effective Date July 1,2006 July 1,2007 Percentage Four percent (4%) Four percent (4%) Amendment to Retirement Benefits The side letter specifies that the City will begin reporting the value of EPMC as additional compensation to CalPERS for all CPOA represented employees as of the pay period PAGE 2 OF AB# 16,957 inclusive of January 1,2004. This change will be made without modifying the City’s contract with CalPERS. Amendment to Medical Insurance The side letter specifies that the City’s contribution to employee health insurance under the CalPERS Health Program will increase by fifty-five dollars ($55) per month as of the pay period inclusive of January 1,2006 and will increase by an additional sixty dollars ($60) per month as of the pay period inclusive of January 1,2007. Modifications to the Management Compensation and Benefits Plan Reporting the Value of EPMC - Police Management Historically retirement benefit enhancements provided to sworn CPOA represented employees have been extended to all sworn police management employees, which includes the Police Chief and the members of the Carlsbad Police Management Association (CPMA). Therefore, the language in the Management Compensation and Benefits Plan has been modified to reflect the extension of the Reporting the Value of EPMC retirement benefit to all sworn police management employees as of the pay period inclusive of January 1,2004. Representatives of the CPMA have met and conferred with the City and agree to this change in the Management Compensation and Benefits Plan. Uniform Reimbursement - Police Management The City’s long-standing practice is to give sworn police management employees the same uniform reimbursement benefit that CPOA represented employees receive. It is staffs recommendation that the City Council authorize a change to the Management Compensation and Benefits Plan to add language that clarifies this practice. FISCAL IMPACT: Moving the CPOA salary increases from January 1 to July 1 in 2003,2004, and 2005 will result in a total cost savings of approximately $575,000 over the three years. The annual cost of the salary adjustments for CPOA represented employees in 2006 and 2007 are estimated at $390,000 and $360,000 respectively. The cost (for all CPOA represented employees and sworn police management employees) of the “Reporting the Value of EPMC” benefit has two components. The first cost component represents the impact of reporting the value of the City’s CalPERS employer paid member contribution [currently eight percent (8%) for all local police employees and seven percent (7%) for miscellaneous employees represented by CPOA] as additional compensation. The annual cost of this component is estimated at $1 10,000, based on current payroll costs. The second cost component is due to an estimated increase in the City’s CalPERS employer contribution rate for all safety employees of 2.2% as of July 2005, the effective date of the next CalPERS valuation for the City of Carlsbad following implementation of the EPMC benefit. This represents an annual cost of approximately $295,000, based on current payroll costs. a PAGE 3 OF AB# 16,957 The annual additional costs to the City for health insurance contributions for CPOA represented employees in 2006 and 2007 are estimated at $78,000 and $85,000 respectively. There is no fiscal impact associated with clarifying the current practice of giving uniform reimbursement to sworn police management employees. Future fiscal year impacts will be reflected during the annual budget process. EXHIBITS: 1. Resolution No. 2002-319 approving a side letter with the Carlsbad Police 2. Side Letter 3. Resolution No. 2002-320 authorizing paying and reporting the value of 4. Resolution No. 2002-321 ,with its Exhibit A: Management Compensation and 5. Strikeout copy of the amended provisions of the Management Compensation and Officers’ Association CalPERS Employer Paid Member Contributions Benefits Plan Benefits Plan. 3 1 C f - I E s 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTIONNO. 2002-319 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A SIDE LETTER DATED OCTOBER 21,2002 REGARDING AMENDMENTS TO THE MOU BETWEEN THE CITY AND THE CARLSBAD POLICE OFFICERS' ASSOCIATION. WHEREAS, representatives of management and the Carlsbad Police Officers' Association have met and conferred in good faith pursuant to the Meyers-Millias-Brown Act regarding wages and other terms and conditions of employment; and WHEREAS, said representatives have reached agreement which they desire to submit to the City Council for consideration and approval; and WHEREAS, the City Council has determined it to be in the public interest to accept such an agreement in the form of a side letter dated October 21,2002, marked Exhibit 2 and incorporated by reference herein. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. Ill 111 '11 Ill '11 Yl '11 'N 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 side letter dated October 21, 2002, set forth in Exhibit 2, attached hereto and made a part hereof, is adopted. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City council held on the 5th day of NOVEMBER , 2002; by the following vote, to wit on behalf of the City: AYES: Council Members Lewis, NOES: None ABSENT: None ATTEST: 'age 2 of Resolution No. 2002-319 Kulchin, Finnila, Nygaard, Hall 5 EXHIBIT 2 to Resolution No. 2002-319 SIDE-LETTER AMENDING CPOA MOU ARTICLE 2 -TERM AND RENEGOTIATION, ARTICLE 8 - COMPENSATION AND ARTICLE 25.2 -MEDICAL INSURANCE ADJUSTMENTS, ARTICLE 24 -RETIREMENT BENEFITS WHEREAS, the Carlsbad Police Officers’ Association and representatives of the City of Carlsbad (“City”) met and conferred and reached agreement on a Memorandum of Understanding (MOU) for the period from January 1,2001 to December 31,2005. WHEREAS, at the request of the CPOA, in May, 2002 the City agreed to open discussions regarding certain terms and provisions covered by the current MOU between the parties. WHEREAS, representatives of the City and the CPOA have reached agreement on the following amendments to the current MOU. THE CPOA AND THE CITY OF CARLSBAD DO HEREBY AGREE THAT: MOU Article 2 - Term and Renegotiation is amended to read as follows: “2.1 The term of this Memorandum shall commence on January 1,2001, and shall continue until December 3 1,2007. 2.2 Negotiations for a successor Memorandum shall begin by the exchange of written proposals in approximately September 2007.” MOU Article 8 - Compensation Adjustments is amended to read as follows: “8.3 Effective the pay period inclusive of July 1,2003, the base salary of each employee in each classification represented by the CPOA and employed as of July 1,2003, shall be increased by four and one-halfpercent (4.5%). 8.4 Effective the pay period inclusive of July 1,2004, the base salary of each employee in each classification represented by the CPOA and employed as of July 1,2004, shall be increased by four and three-quarters percent (4.75%). 8.5 Effective the pay period inclusive of July 1,2005, the base salary of each employee in each classification represented by the CPOA and employed as of July 1,2005, shall be increased by five percent (5%). 8.6 Effective the pay period inclusive of July 1,2006, the base salary of each employee in each classification represented by the CPOA and employed as of July 1,2006, shall be increased by four percent (4%). 8.7 Effective the pay period inclusive of July 1,2007, the base salary of each employee in each classification represented by the CPOA and employed as of July 1,2007, shall be increased by four percent (4%).” 6 The following language is added to MOU Article 24 -Retirement Benefits: “24.5 Effective the pay period inclusive of January 1,2004, the City will begin reporting the value of Employer Paid Member Contributions (EPMC) as additional compensation to CalPERS for all CPOA represented employees.” The following language is added to MOU Article 25.2 -Medical Insurance: “The monthly dollar amount paid by the City for each coverage level (employee only, employee plus one dependent, employee plus two or more dependents) will be increased on January 1,2006 by fifty-five dollars ($55) The monthly dollar amount paid by the City for each coverage level (employee only, employee plus one dependent, employee plus two or more dependents) will be increased on January 1,2007 by sixty dollars ($60).” IN WITNESS WHEREOF, the parties hereto understand and agree to the above terms and conditions and have caused their duly authorized representatives to execute this side letter on October 21,2002. CITY OF CARLSBAD CARLSBAD POLICE OFFICERS’ ASSOCIATION City Manager President APPROVED AS TO FORM: City Attorney //-g.oe. ~ ~~ ~ Silver, Hadden & Silver Page 2 of Exhibit 2 of Resolution No. 2002-319. .4 I. z - I E s 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTIONNO. 2002-320 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING PAYING AND REPORTING THE VALUE OF CALPERS EMPLOYER PAID MEMBER CONTRIBUTIONS FOR ALL LOCAL POLICE EMPLOYEES AND ALL CPOA REPRESENTED EMPLOYEES. WHEREAS, the City Council of the City of Carlsbad has the authority to implement Government Code Section 20636(c)(4) pursuant to Section 20691; and WHEREAS, the City Council of the City of Carlsbad has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Council of the City of Carlsbad of a Resolution to commence paying and reporting the value of said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council of the City of Carlsbad has identified the following conditions for the purpose of its election to pay EPMC: This benefit shall apply to all local police employees and all employees represented by the Carlsbad Police Officers’ Association. . This benefit shall consist of paying eight percent (8%) of the normal contributions as EPMC for all local police employees and paying seven percent (7%) of the normal contributions as EPMC for all miscellaneous employees represented by the CPOA, and reporting the same percent (value) of compensation earnable {excluding Government Code Section 20636(c)(4)} as additional compensation. . The effective date of this Resolution shall be the first day of the pay period that includes January 1,2004. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. ‘It ‘11 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 of the City of Carlsbad elects to pay and report the value of EPMC, as set forth above. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 5th day of NOVEMBER , 2002; by the following vote, to wit on behalf of the City: NOES: None ABSENT: None AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall ATTEST: 3qe 2 of Resolution No. 2002-320 1 2 c 4 c E 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTIONNO. 2002-321 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, MODIFYING THE MANAGEMENT COMPENSATION AND BENEFITS PLAN WHEREAS, representatives of management and the Carlsbad Police Management Association have met and conferred in good faith pursuant to the Meyers-Millias-Brown Act regarding terms and conditions of employment; and WHEREAS, it the intention of the City Council to extend the “Reporting the Value of EPMC” retirement benefit to all sworn police management employees effective the pay period inclusive of January 1,2004; and WHEREAS, the City Council desires to have a Management Compensation and Benefits Plan that reflects the current practice of providing all sworn police management employees with the same uniform reimbursement that employees represented by the Carlsbad Police Officers’ Association receive. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Exhibit A, the Management Compensation and Benefits Plan contains revisions to the Retirement Contribution provision. Ill Ill Ill Ill Ill d 1 i i 1c 11 1; 1: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That Exhibit A, the Management Compensation and Benefits Plan includes a new provision titled “Uniform Reimbursement”. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 5th day of NOVEMBER ,2002; by the following vote, to wit on behalf of the City: AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall NOES: None ABSENT: None ATTEST: (SEAL) .ge 2 of Resolution No. 2002-321 Exhibit A to Resolution No. 2002-321 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 oE Alignment of individual contributions with organizational direction, = Development and demonstration of competencies in the job, and 3 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 oE 3 Market based salary structure 3 Base pay Incentive Pay PERFORMANCE MANAGEMENT The Performance Management Cvcle 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: 0 the development and demonstration of specific competencies, and 0 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 13 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 Pav 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 completion of the evaluation and award process annually, in which the incentive portion, if any, is determined for each management employee. 3 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 IS 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. Effective the pay period inclusive of January 1,2004, the City will begin reporting the value of Employer Paid Member Contributions (EPMC) as additional compensation to CalPERS for all sworn police management employees. 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. Manauement 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 sch’edule 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 hidher leave account to cover the absence, deductions without pay will be made on full days only. 5 a 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 hours/year (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 hourdyear (5.23 hours biweekly). - Beginning the thirteenth (13th) year of employment through the completion of thirteen (13) full calendar years of continuous service - 144 hourslyear (5.54 hours biweekly). - Beginning the fourteenth (14th) year of employment through the completion of fifteen (15) full calendar years of continuous service - 152 hourslyear (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 Manager. The Department Head and the City Manager may grant such a request if it is in the 6 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 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 defmed 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. 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. 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 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. Leave of Absence 1. Leave of Absence Without Pav 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 hisiher 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 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 hisiher Department Head, and, 8 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 hidher 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. 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 9 first day of the first full pay period after the employee has returned to work. F. Leave Without Pav - 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. Pregnancv Disabilitv 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. Familv and Medical Leave of Absence (FMLA) 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. 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. 10 Militarv Leave Military leave shall be authorized in accordance with the provisions of State and Federal law. The employee must furnish satisfactory proof to hidher Department Head, as far in advance as possible, that he/she must report to military duty. When called to jury duty, an employee, having provided at least five working days written notice, shall be entitled to hisker 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 hisker sole discretion, contact the court and request an exemption andor 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 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 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 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 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 andor vision insurance programs. The cost of such dental andor 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 andor vision insurance and must keep such payments current to ensure continued coverage. 11 2’ 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. The scheduled paid holidays that will be official City holidays 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 12 a: 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 id 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 1,2002, 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. 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. 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. (b) For employees with “employee plus one dependent” coverage, the City (c) For employees with “employee plus two or more dependents” coverage, Effective January 1,2003, 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 three hundred forty-five dollars ($345) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and three hundred forty-five dollars ($349, the employee will pay the difference. (b) For employees with “employee plus one dependent” coverage, the City shall contribute six hundred seventy-two dollars ($672) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and six hundred seventy-two dollars ($672), the employee will pay the difference. (c) For employees with “employee plus two or more dependents” coverage, the City shall contribute eight hundred eighty-eight dollars ($888) per month. If the actual total premiums exceed the aggregate of sixteen dollars ($16) and eight hundred eighty-eight dollars ($888), 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 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 Manaeement emulovees who do not wish to particbate in the CalPERS Health Program will Y .< 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. 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 14 as 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). Effective January 1,2003, employees who elect this option will be given a reduced City contribution amount (Benefits Credits) of one hundred ninety-six dollars ($196) 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 ninety-six dollars ($196) 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. Annual Pbvsical Examination and/or Phvsical 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. Lone-Term Disability Insurance &TD) 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. 15 24 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 (U3) of the cost, the employee pays two-thirds (2/3) and 100% of dependent coverage. Deferred ComDensation 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 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 (EAP) 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 EAP assistance for emergency or urgent situations. The toll free number is l(800) 342-81 11. For more specific information, contact the Human Resources Department. Uniform Reimbursement All sworn police management employees are eligible for the same uniform reimbursement benefit that is provided to employees who are represented by the Carlsbad Police Officers’ Association. 16 Exhibit 5 STRIKEOUT COPY OF AMENDED PROVISIONS OF THE MANAGEMENT COMPENSATION AND BENEFITS PLAN 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. Effective the pay period inclusive of January 1,2004, the City will begin reporting the value of Employer Paid Member Contributions (EPMC) as additional compensation to CalPERS for all sworn police management employees. 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. Uniform Reimbursement All sworn police management employees are eligible for the same uniform reimbursement benefit that is provided to employees who are represented by the Carlsbad Police Officers’ Association.