HomeMy WebLinkAbout2004-01-13; City Council; 17451; Mandatory Increase to Contribution CalPERS46#17,451 TITLE:
HTG. ‘-13-04 MANDATORY INCREASE TO THE MINIMUM EMPLOYER
CONTRIBUTION TOWARDS CALPERS MEDICAL INSURANCE DEPT. H-R.
RECOMMENDED ACTION:
1. Adopt Resolution No. 2004-004
Officers’ Association (CPOA) that amends the article in the CPOA Memorandum of
Understanding (MOU) titled, “Flexible Benefits Program,” to reflect the mandatory increase
to the minimum employer contribution towards medical insurance for agencies participating
in the Public Employees Medical and Hospital Care Act (PEMHCA).
approving a side letter with the Carlsbad Police
DEPT. HD,&
CITY MGR.
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2. Adopt Resolution No. 2004-005
Firefighters’ Association (CFA) that amends the article in the CFA Memorandum of
Understanding (MOU) titled, “Flexible Benefits Program,” to reflect the mandatory increase
to the minimum employer contribution towards medical insurance for agencies participating
in the Public Employees Medical and Hospital Care Act (PEMHCA).
approving a side letter with the Carlsbad
3. Adopt Resolution No. 2004-006 modifying the Management Compensation and
Benefits Plan to reflect the mandatory increase to the minimum employer contribution
towards medical insurance for agencies participating in the Public Employees Medical and
Hospital Care Act (PEMHCA).
ITEM EXPLANATION:
Senate Bill 1464
Prior to January 1,2004, Government Code Section 22825 of the Public Employees Medical
and Hospital Care Act (PEMHCA) required agencies to contribute a minimum of sixteen
dollars ($16) per month toward the cost of each employee’s and retiree’s CalPERS medical
insurance. Senate Bill 1464 increased this minimum employer contribution as follows:
January 1,2004 $32.20 per month
January 1,2005 $48.40 per month
January 1,2006 $64.60 per month
January 1,2007 $80.80 per month
January 1,2008 $97.00 per month
Commencing January 1,2009, the minimum employer contribution toward the cost of each
employee’s and retiree’s CalPERS medical insurance will be adjusted annually to reflect any
change in the medical care component of the Consumer Price Index.
Staff recommends amending the CPOA MOU, the CFA MOU and the Management
Compensation and Benefits Plan to reflect the change resulting from Senate Bill 1464.
Side Letters
On March 6,2001, the City Council adopted Resolution No. 2001-68 approving an MOU
with the CPOA. On November 5,2002, the City Council adopted Resolution No. 2002-319
that extended the term of this MOU to seven (7) years such that it will expire on December
31,2007. A side letter between the City and the CPOA has been drafted (Exhibit 2)
PAGE 2 OF AB# 17 r 451
whereby Article 25, Flexible Benefits Program, would be amended to reflect the change
resulting from Senate Bill 1464.
On January 15, 2002, the City Council adopted Resolution No. 2002-030 approving an
MOU with the CFA. The term of the MOU is five (5) years and will expire on December
31,2006. A side letter between the City and the CFA has been drafted (Exhibit 4) whereby
Article 15, Flexible Benefits Program, would be amended to reflect the change resulting
from Senate Bill 1464.
Modifications to the Management Compensation and Benefits Plan
The language in the Management Compensation and Benefits Plan has been modified
(Exhibit 5) to reflect the change resulting from Senate Bill 1464.
Language has also been added to the side letters and to the Management Compensation and
Benefits Plan to clarify the current practice and CalPERS rule regarding eligibility for
enrollment in the CalPERS health insurance program upon retirement. Specifically, a retiree
is eligible to enroll in the CalPERS health insurance program as long as they were enrolled
or eligible to enroll at the time of separation and their effective date of retirement is within
120 days of separation. The City also uses these eligibility guidelines within its dental and
vision programs.
The current Carlsbad City Employee’s Association (CCEA) MOU does not require an
amendment because it contains language that reflects the results of Senate Bill 1464.
FISCAL IMPACT:
There is no fiscal impact related to active employees. The cost for each City of Carlsbad
retiree will increase from $16.00 per month to $32.20 per month on January 1,2004. Using
the number of City of Carlsbad retirees who are currently enrolled in a CalPERS medical
plan, this represents an annual cost of $9,720. Future fiscal year impacts will be reflected
during the annual budget process.
EXHIBITS:
1. ResolutionNo. 2004 - 004
Officers’ Association
2. Side Letter with CPOA and strikeout copy of the amended Article 25
3. ResolutionNo. 7004 - 005
Association
4. Side Letter with CFA and strikeout copy of the amended Article 15
5. Resolution No. 2004-006
Benefits Plan
6. Strikeout copy of the amended provision of the Management compensation and
Benefits Plan.
approving a side letter with the Carlsbad Police
approving a side letter with the Carlsbad Firefighters’
, with its Exhibit A: Management Compensation and
DEPARTMENT CONTACT: Debbie Porter, (760) 602-2441, dport@ci.carlsbad.ca.us
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RESOLUTION NO. 2004-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A SIDE LETTER REGARDING AN
AMENDMENT 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 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.
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2. That the side letter, 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 13th day of January , 200 4 by the following vote, to wit
Dn behalf of the City:
AYES:council Members Lewis, Finnil hin, Hall and
NOES: None
ABSENT: None
4lTEST:
n
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,OdRAINE M. WOOD, City Clerk
:SEAL)
age 2 of 2 of Resolution No. 2004-004
EXHIBIT 2
SIDE-LETTER AMENDING CPOA MOU
ARTICLE 25 - FLEXIBLE BENEFITS PROGRAM
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 31,2007.
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:
Article 25 is amended to read as follows:
ARTICLE 25 FLEXIBLE BENEFITS PROGRAM
25. L Employees represented by the CPOA will participate in a flexible benefits program
which includes medical insurance, dental insurance, vision insurance, flexible
spending accounts (FSAs) and other insurance-related products offered through the
CPOA. Each of these components is outlined below.
25.2 Medical Insurance
During the entire term of this agreement, represented employees will be covered by
the Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be
eligible to participate in the CalPERS Health Program. The City will pay on behalf
of all employees covered by this agreement and their eligible dependents and those
retirees designated in Section 25.5 of this Article, the minimum amount per month required under Government Code Section 22825 of the PEMHCA for medical
insurance through the California Public Employees’ Retirement System
(CalPERS). If electing to enroll for medical benefits, the employee must select
one medical plan from the variety of medical plans offered.
Effective the first full pay period following City Council approval of this
agreement, the City shall contribute the following monthly amounts (called
“Benefits Credits”) on behalf of each active 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,
vision coverage, or other insurance related products offered through the CPOA.
(a) For employees with “employee only” coverage, the City shall contribute
two hundred eighty dollars ($280) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums exceed the
City’s total contributions, the employee will pay the difference.
(b) For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred nine dollars ($409) per month that shall
include the mandatory payments to CalPERS. If the actual total premiums
exceed the City’s total contributions, the employee will pay the difference.
25.3
(c) For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred twenty-four dollars ($524) per month
that shall include the mandatory payments to CalPERS. If the actual total
premiums exceed the City’s total contributions, the employee will pay the
difference.
Beginning January 1,2002:
(a) For employees with “employee only” coverage, the City shall contribute
three hundred twenty dollars ($320) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums exceed the
City’s total contributions, the employee will pay the difference.
(b) For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred forty-nine dollars ($449) per month that shall
include the mandatory payments to CalPERS. If the actual total premiums
exceed the City’s total contributions, the employee will pay the difference.
(c) For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred sixty-four dollars ($564) per month
that shall include the mandatory payments to CalPERS. If the actual total
premiums exceed the City’s total contributions, the employee will pay the
difference.
The 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 in 2003,2004 and 2005. The amount of the increase will be
determined by 1) taking the average percentage increase for all of the CalPERS
HMO Health plans for January 1st of the year in question and 2) adding this
percentage increase to the previous calendar year’s monthly City contribution for
each coverage level (rounded to the nearest whole dollar amount) to determine the
new monthly City contribution dollar amount.
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 (eniployee only, employee plus one dependent, employee plus two or more dependents) will
be increased on January 1,2007 by sixty dollars ($60).
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 insurance purchased by the employee, the
employee will have the option of using any “excess credits” to purchase dental
insurance, vision insurance or any other insurances provided by the CPOA, or to
contribute to a healthcare or dependent care flexible spending account (FSA).
Dental Insurance
Represented employees are eligible to enroll in a CPOA-sponsored dental plan.
25.4
25. 5
Vision Insurance
Represented employees are eligible to enroll in a CPOA-sponsored vision
insurance plan.
Each retired employee who was a member of this bargaining unit is covered by the
Public Employees’ Medical and Hospital Care Act and is eligible to participate in
the California Public Employees’ Retirement System (CalPERS) Health Program.
Represented 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 or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of
retirement is within 120 days of separation. The City will contribute the
minimum amount per month required under Government Code Section
22825 of the PEMHCA 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.
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 6, 2003.
CITY OF CARLSBAD
Raymond R. Patchett
City Manager
APPROVED AS TO FORM:
n
RonawBall
City Attorney /.//ic.oy
CARLSBAD POLICE OFFICERS’
ASSOCIATION
Sr. Police Officer Robert Gwway
President
Silver, Hadden & Silver
STRIKEOUT VERSION
ARTICLE 25 FLEXIBLE BENEFITS PROGRAM
25.1 Employees represented by the CPOA will participate in a flexible benefits program
which includes medical insurance, dental insurance, vision insurance, flexible
spending accounts (FSAs) and other insurance-related products offered through the
CPOA. Each of these components is outlined below.
25.2 Medical Insurance
During the entire term of this agreement, represented employees will be covered by
the Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be
eligible to participate in the CalPERS Health Program. P
1. The City will pay on behalf of all employees covered by this agreement and their eligible
dependents and those retirees designated in Section 25.5 of this Article, the
minimum amount per month required under Government Code Section 22825
of the PEMHCA for medical insurance through the California Public
Employees’ Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical
plans offered.
Effective the first full pay period following City Council approval of this
agreement, the City shall contribute the following monthly amounts (called
“Benefits Credits”) on behalf of each active 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,
vision coverage, or other insurance related products offered through the CPOA.
For employees with “employee only” coverage, the City shall contribute
two hundred eighty dollars ($280)
per month that shall include the mandatory payments to CalPERS. If
the actual total premiums exceed the
+.,,,City’s total contributions, the
employee will pay the difference.
For employees with “employee plus one dependent” coverage, the City
shall contribute ~ four hundred nine
dollars ($409) per month that shall include the mandatory payments to
CalPERS. If the actual total premiums exceed the
1City’s total contributions, the employee will pay the difference.
For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred
twenty-four dollars ($524) per month that shall include the mandatory
payments to CalPERS. If the actual total premiums exceed the aggegyb
CCity’s total contributions, the employee will pay the difference.
Beginning January 1,2002:
For employees with “employee only” coverage, the City shall contribute 2 three hundred twenty dollars ($320)
per month that shall include the mandatory payments to CalPERS. If
the actual total premiums exceed the
{City’s total contributions, the employee will pay the difference.
For employees with “employee plus one dependent” coverage, the City
shall contribute 1 four hundred forty-nine dollars ($449) per month that shall include the mandatory
payments to CalPERS. If the actual total premiums exceed the aggwga& 3City’s
total contributions, the employee will pay the difference.
For employees with “employee plus two or more dependents” coverage,
the City shall contribute fi five hundred sixty-four dollars ($564) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums exceed
the a$ @&BjCity’s total contributions, the employee will pay the difference.
The 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 in 2003,2004 and 2005. The amount of the increase will be
determined by 1) taking the average percentage increase for all of the CalPERS
HMO Health plans for January 1st of the year in question and 2) adding this
percentage increase to the previous calendar year’s monthly City contribution for
each coverage level (rounded to the nearest whole dollar amount) to determine the
new monthly City contribution dollar amount.
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).
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 insurance purchased by the employee, the employee will have the option of using any “excess credits” to purchase dental
insurance, vision insurance or any other insurances provided by the CPOA, or to
contribute to a healthcare or dependent care flexible spending account (FSA).
25.3
25.4
25. 5
Dental Insurance
Represented employees are eligible to enroll in a CPOA-sponsored dental plan.
Vision Insurance
Represented employees are eligible to enroll in a CPOA-sponsored vision
insurance plan.
Each retired employee who was a member of this bargaining unit is covered by the
Public Employees’ Medical and Hospital Care Act and is eligible to participate in
the California Public Employees’ Retirement System (CalPERS) Health Program. Represented 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 or eligible to enroll in a CalPERS
medical plan at the time of separation from employment and their effective date of
retirement is within 120 days of separation. The City will contribute tq+h+a
tthe minimum amount per
month required under Government Code Section 22825 of the
PEMHCA 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.
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RESOLUTION NO. 2004-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A SIDE LETTER REGARDING AN
AMENDMENT TO THE MOU BETWEEN THE CITY AND THE CARLSBAD
FIREFIGHTERS ’ ASSOCIATION.
WHEREAS, representatives of management and the Carlsbad Firefighters’
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 marked Exhibit 4 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.
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2. That the side letter, set forth in Exhibit 4, 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 13th day of January , 200 4 by the following vote, to wit
on behalf of the City:
AYES:Council Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
ATTEST:
A
M. WOOD, City Clerk
(SEAL)
,. .~
Page 2 of 2 of Resolution no. 2004-005 1 i..
EXHIBIT 4
SIDE-LETTER AMENDING CFA MOU ARTICLE 15 - FLEXIBLE BENEFITS PROGRAM
WHEREAS, the Carlsbad Firefighters’ Association, Inc. 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 1,2002 to December 3 1,2006.
WHEREAS, representatives of the City and the CFA have reached agreement on the following
amendments to the current MOU.
THE CFA AND THE CITY OF CARLSBAD DO HEREBY AGREE THAT:
Article 15 is amended to read as follows:
ARTICLE 15. FLEXIBLE BENEFITS PROGRAM
A. Employees represented by the CFA, Inc. will participate in a flexible benefits
program which includes medical insurance, dental insurance, vision insurance,
flexible spending accounts (FSAs) and other insurance-related products offered
through the CFA, Inc. Each of these components is outlined below.
Medical Insurance
Al. During the term of this agreement, represented employees will be covered by the
Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be
eligible to participate in the CalPERS Health Program. The City will pay on
behalf of all employees covered by this agreement and their eligible dependents
and those retirees designated in Section D of this Article, the minimum amount
per month required under Government Code Section 22825 of the PEMHCA for
medical insurance through the California Public Employees’ Retirement System
(CalPERS).
All active members of the association must enroll in one of the health plans
offered through CalPERS. Within one pay period following City Council
approval of this Memorandum, the City shall contribute the following monthly
amounts (called Benefits Credits) on behalf of each active 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) contribution of some or all of the premium for
dental coverage or vision coverage being paid by the employee through the CFA:
I
(a) For employees with “employee only” coverage, the City shall contribute
two hundred sixty-four dollars ($264) per month. If the actual total
premiums exceed the aggregate of sixteen dollars ($16) and two hundred
sixty-four dollars ($264), the employee will pay the difference.
(b) For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred thirty-eight dollars ($438) per month. If
the actual total premiums exceed the aggregate of sixteen dollars ($16)
and four hundred thirty-eight dollars ($438), the employee will pay the
difference.
(c) For employees with “employee plus two or more dependents’’ coverage,
the City shall contribute five hundred fifty-eight dollars ($558) per
month. If the actual total premiums exceed the aggregate of sixteen
dollars ($16) and five hundred fifty-eight dollars ($558), the employee
will pay the difference.
Effective the pay period inclusive of January 1,2003:
(d) For employees with “employee only” coverage, the City shall contribute
two hundred ninety-four dollars ($294) per month. If the actual total
premiums exceed the aggregate of sixteen dollars ($16) and two hundred
ninety-four dollars ($294), the employee will pay the difference.
For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred sixty-eight dollars ($468) per month. If
the actual total premiums exceed the aggregate of sixteen dollars ($16)
and four hundred sixty-eight dollars ($468), the employee will pay the
difference.
For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred eighty-eight dollars ($588) per
month. If the actual total premiums exceed the aggregate of sixteen
dollars ($16) and five hundred eighty-eight dollars ($588), the employee
will pay the difference.
B. The 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 in 2004,2005 and 2006. The amount of the increase will
be determined by 1) taking the average percentage increase for all of the CalPERS
HMO Health plans for which CFA-represented employees are eligible January 1st
of the year in question and 2) adding this percentage increase to the previous
calendar year’s monthly City contribution for each coverage level, (rounded to the
nearest whole dollar amount) to determine the new monthly City contribution
dollar amount.
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 insurance purchased by the employee, the
employee will have the option of using any “excess credits” to purchase dental
insurance, vision insurance or any other insurances provided by the CFA, Inc., or
to contribute to a healthcare or dependent care flexible spending account (FSA).
C. Dental Insurance
Represented employees are eligible to enroll in the City sponsored dental plan.
Vision Insurance
Represented employees are eligible to enroll in the City sponsored vision
insurance plan.
D. Each retired employee who was a member of this bargaining unit is covered by
the Public Employees’ Medical and Hospital Care Act and is eligible to
participate in the California Public Employees’ Retirement System (CalPERS)
Health Program. Represented 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 or eligible to
enroll in a CalPERS medical plan at the time of separation from employment and
their effective date of retirement is within 120 days of separation. The City will
contribute the minimum amount per month required under Government Code
Section 22825 of the PEMHCA 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.
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 December 1,2003.
CITY OF CARLSBAD
CARLSBAD FIREFIGHTERS’
ASSOCIATION, INC.
Raymond R. Pitchett -
City Manager ‘-#resident
APPROVED AS TO FORM:
Christophd$. Platten
Attorney City Attorney
1- /+ OV.
STRIKEOUT VERSION
ARTICLE 15. FLEXIBLE BENEFITS PROGRAM
A. Employees represented by the CFA, Inc. will participate in a flexible benefits
program which includes medical insurance, dental insurance, vision insurance,
flexible spending accounts (FSAs) and other insurance-related products offered
through the CFA, Inc. Each of these components is outlined below.
Medical Insurance
Al. During the term of this agreement, represented employees will be covered by the
Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be
eligible to participate in the CalPERS Health Program. The City will pay on
behalf of all employees covered by this agreement and their eligible dependents
and those retirees designated in Section D of this Article, the
&Akm#&@ minimum amount per month required under Government Code
Section 22825 of the PEMHCA pe+ma& for medical insurance through the
California Public Employees’ Retirement System (CalPERS).
All active members of the association must enroll in one of the health plans
offered through CalPERS. Within one pay period following City Council
approval of this Memorandum, the City shall contribute the following monthly
amounts (called Benefits Credits) on behalf of each active 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) contribution of some or all of the premium for
dental coverage or vision coverage being paid by the employee through the CFA:
(d) For employees with “employee only” coverage, the City shall contribute
two hundred sixty-four dollars ($264) per month. If the actual total
premiums exceed the aggregate of sixteen dollars ($16) and two hundred
sixty-four dollars ($264), the employee will pay the difference.
(e) For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred thirty-eight dollars ($438) per month. If
the actual total premiums exceed the aggregate of sixteen dollars ($16)
and four hundred thirty-eight dollars ($438), the employee will pay the
difference.
(0 For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred fifty-eight dollars ($558) per
month. If the actual total premiums exceed the aggregate of sixteen
dollars ($16) and five hundred fifty-eight dollars ($558), the employee
will pay the difference.
Effective the pay period inclusive of January 1, 2003:
(g) For employees with “employee only” coverage, the City shall contribute
two hundred ninety-four dollars ($294) per month. If the actual total
premiums exceed the aggregate of sixteen dollars ($16) and two hundred
ninety-four dollars ($294), the employee will pay the difference.
(h) For employees with “employee plus one dependent” coverage, the City
shall contribute four hundred sixty-eight dollars ($468) per month. If
the actual total premiums exceed the aggregate of sixteen dollars ($16)
and four hundred sixty-eight dollars ($468), the employee will pay the
difference.
(i) For employees with “employee plus two or more dependents” coverage,
the City shall contribute five hundred eighty-eight dollars ($588) per
month. If the actual total premiums exceed the aggregate of sixteen
dollars ($16) and five hundred eighty-eight dollars ($588), the employee
will pay the difference.
B. The 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 in 2004,2005 and 2006. The amount of the increase will
be determined by 1) taking the average percentage increase for all of the CalPERS
HMO Health plans for which CFA-represented employees are eligible January 1st
of the year in question and 2) adding this percentage increase to the previous
calendar year’s monthly City contribution for each coverage level, (rounded to the
nearest whole dollar amount) to determine the new monthly City contribution
dollar amount.
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 insurance purchased by the employee, the
employee will have the option of using any “excess credits” to purchase dental
insurance, vision insurance or any other insurances provided by the CFA, Inc., or
to contribute to a healthcare or dependent care flexible spending account (FSA).
C. Dental Insurance
Represented employees are eligible to enroll in the City sponsored dental plan.
Vision Insurance
Represented employees are eligible to enroll in the City sponsored vision
insurance plan.
D. Each retired employee who was a member of this bargaining unit is covered by
the Public Employees’ Medical and Hospital Care Act and is eligible to
participate in the California Public Employees’ Retirement System (CalPERS)
Health Program. Represented 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 or eligible to
enroll in a CalPERS medical plan at the time of separation from employment
and their effective date of retirement is within 120 days of separation. The City
will contribute up tc 2 . p+me&l+the
minimum amount per month required under Government Code Section
22825 of the PEMHCA 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.
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RESOLUTION NO. 2004-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, MODIFYING THE MANAGEMENT COMPENSATION AND
BENEFITS PLAN
WHEREAS, Senate Bill 1464 set forth annual increases in the minimum employer
contribution towards medical insurance for agencies participating in the Public Employees
Medical and Hospital Care Act (PEMHCA) effective January 1,2004; and
WHEREAS, the City Council for the City of Carlsbad wishes to amend the
Management Compensation and Benefits Plan to reflect the increases set forth in Senate Bill
1464 and current CalPERS rules regarding eligibility for enrollment in their health insurance
program upon retirement.
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.
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2. That Exhibit A, the Management Compensation and Benefits Plan, contains
revisions to the provisions titled, “Health Insurance for Retirees” and “Health
Benefits.”
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City
Council held on the 13th day of January ,2004 by the following vote, to wit
on behalf of the City:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
ATTW$T:
LORY M. WOOD, City Clerk
(SEAL)
‘age 2 of 2 of Resolution No. 2004-006
Exhibit A
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:
3 Alignment of individual contributions with organizational direction,
3 Development and demonstration of competencies in the job, and
3 Measurement of levels of accomplishment of goals
' Hereafter, all references to the City Manager include, with regard to management employees in the City Attorney's
Office, the City Attorney.
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0 Compensation - based on a market driven approach to compensation, comprised of
Market based salary structure
Base pay
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.
Maior Components of Performance Manapement
The two major components upon which a management employee’s performance is based are:
the accomplishment of goals.
the development and demonstration of specific competencies, and
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 gods, 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.
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The Performance Management and Compensation System is based upon a market based
approach to compensation, comprised of
0 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.
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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.
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Retirement Contribution
All management employees, other than sworn police management employees and management
employees who are considered fire safety employees, shall have all seven percent (7%) of their
portion of the retirement contribution to the California Public Employees’ Retirement System
paid by the City until the pay period that includes January 1,2005. 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.
Effective January 1, 2005, the City will contract with CalPERS to provide the “3% 43 60”
retirement benefit for Management employees who are considered miscellaneous. Effective the
pay period inclusive of January 1,2005, the City will pay on behalf of all miscellaneous
management employees seven percent (7%) of the employee’s retirement contribution to
CalPERS. Effective the pay period inclusive of January 1,2005, each miscellaneous
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 by implementing provisions of section 414(h)(2) of the Internal Revenue Code
(NC).
Manaeement 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
shift/ll2 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,
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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 his/her leave account to cover the absence, deductions without pay will be made on full days
only.
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 first (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 hours/year (4.62
hours biweekly).
Beginning the eleventh (1 1 th) 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 houdyear
(5.23 hours biweekly).
Beginning the thirteenth (1 3 th) 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 hours/year (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).
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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, he/she 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
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 Zndividual 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 1 12 hours per
bi-weekly pay period.
0 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.
a 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.
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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.
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.
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 hidher 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.
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2. To take a course of study which will increase the
employee’s usefulness on return to hidher position in the
City service.
For personal reasons acceptable to the City Manager and
Department Head.
3.
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 hidher 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 hidher vacation, andor sick leave (if
applicable) prior to taking an authorized leave of absence without
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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 exceedmg
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
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 hidher 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.
e Pregnancy 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.
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e Family 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 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.
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 Militarv Leave
Military leave shall be authorized in accordance with the provisions of State and
Federal law. The employee must furnish satisfactory proof to hisher Department
Head, as far in advance as possible, that he/she must report to military duty.
e 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 andor postponement of jury 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
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CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to
enroll in a CalPERS medical plan at the time of separation from employment and their effective
date of retirement is within 120 days of separation. The City will contribute the minimum
amount per month required under Government Code Section 22825 of the PEMHCA 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
and/or vision insurance and must keep such payments current to ensure continued coverage.
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.
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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
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
Management employees will be covered by the Public Employees’ Medical and Hospital Care
Act (PEMHCA) and will be eligible to participate in the California Public Employees’
Retirement System (CalPERS) Health Program. The City will pay on behalf of all management
employees and their eligible dependents and those retirees mentioned in the section of this
document titled, “Health Insurance for Retirees,” the minimum amount per month required under
Government Code Section 22825 of the PEMHCA for medical insurance through the California
Public Employees’ Retirement System (CalPERS). If electing to enroll for medical benefits, the
employee must select one medical plan from the variety of medical plans offered.
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)
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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
three hundred sixty-one dollars ($361) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums exceed the
City’s total contributions, the employee will pay the difference.
(b) For employees with “employee plus one dependent” coverage, the City
shall contribute six hundred eighty-eight dollars ($688) per month that
shall include the mandatory payments to CalPERS. If the actual total
premiums exceed the City’s total contributions, the employee will pay the
difference.
For employees with “employee plus two or more dependents” coverage,
the City shall contribute nine hundred four dollars ($904) per month that
shall include the mandatory payments to CalPERS. If the actual total
premiums exceed the City’s total contributions, the employee will pay the
difference.
Effective January 1,2004, 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:
(a) For employees with “employee only” coverage, the City shall contribute
three hundred eighty-nine dollars ($389) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums exceed the
City’s total contributions, the employee will pay the difference.
For employees with “employee plus one dependent” coverage, the City
shall contribute seven hundred forty-three dollars ($743) per month that
shall include the mandatory payments to CalPERS. If the actual total
premiums exceed the City’s total contributions, the employee will pay the
difference.
For employees with “employee plus two or more dependents” coverage,
the City shall contribute nine hundred seventy-six dollars ($976) per
month that shall include the mandatory payments to CalPERS. If the
actual total premiums exceed the City’s total contributions, 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
14
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
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.
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, that
shall include the mandatory payments to CalPERS, 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
de pen dents ) .
Effective January 1, 2004, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of two hundred twelve dollars ($212) per month, that
shall include the mandatory payments to CalPERS, 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 two hundred twelve dollars ($212) 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 -2 ’ . -”’.-
.._.I -2
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 andor 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 (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 (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
to11 free number is l(800) 342-8 11 1. 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.
17
Exhibit 6
STRIKEOUT COPY OF AMENDED PROVISIONS OF THE
MANAGEMENT COMPENSATION AND BENEFITS PLAN
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 or eligible to enroll in a CalPERS medical plan at the time of
separation from employment and their effective date of retirement is within 120 days of
separation. The City will contribute
the minimum amount per month required under Government Code Section 22825 of
the PEMHCA 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 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 hidher monthly premiums for
dental and/or vision insurance and must keep such payments current to ensure continued
coverage.
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
Management employees will be covered by the Public Employees’ Medical and Hospital
Care Act (PEMHCA) and will be eligible to participate in the California Public Employees’
Retirement System (CalPERS) Health Program. 1
-The City will pay on behalf of all management
employees and their eligible dependents and those retirees mentioned in the section of
this document titled, “Health Insurance for Retirees,” the minimum amount per month
required under Government Code Section 22825 of the PEMHCA for medical
insurance through the California Public Employees’ Retirement System (CalPERS). If
electing to enroll for medical benefits, the employee must select one medical plan from the
variety of medical plans offered.
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)
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 three hundred
sixty-one dollars ($361) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums
exceed the
-City’s total contributions, the employee will pay
the difference.
For employees with “employee plus one dependent” coverage, the
City shall contribute six
hundred eighty-eight dollars ($688) per month that shall include
the mandatory payments to CalPERS. If the actual total premiums
exceed the 1
-City’s total contributions, the employee
will pay the difference.
For employees with “employee plus two or more dependents’’
coverage, the City shall contribute
include the mandatory payments to CalPERS. If the actual total
premiums exceed the )
tCity’s total contributions, the
employee will pay the difference.
nine hundred four dollars ($904) per month that shall
Effective January 1, 2004, 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:
(a) For employees with “employee only” coverage, the City shall
contribute 9 three hundred
eighty-nine dollars ($389) per month that shall include the
mandatory payments to CalPERS. If the actual total premiums
exceed the
-City’s total contributions, the employee
will pay the difference.
For employees with “employee plus one dependent” coverage, the
City shall contribute ~
seven hundred forty-three dollars ($743) per month that shall
include the mandatory payments to CalPERS. If the actual total
premiums exceed the fi 1 City’s total contributions, the
employee will pay the difference.
For employees with “employee plus two or more dependents”
coverage, the City shall contribute fi
nine hundred seventy-six dollars ($976) per month that shall
include the mandatory payments to CalPERS. If the actual total
premiums exceed the 1
will pay the difference.
City’s total contributions, the employee
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, hehhe 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.
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,
that shall include the mandatory payments to CalPERS, 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).
Effective January 1,2004, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of two hundred twelve dollars ($212) per month,
that shall include the mandatory payments to CalPERS, 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 two hundred twelve dollars ($212) 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.