HomeMy WebLinkAbout2012-11-27; City Council; 21053; Performance Management Compensation SystemCITY OF CARLSBAD - AGENDA BILL
AB# 91 nfi3 PERFORMANCE MANAGEMENT AND
COMPENSATION SYSTEM FOR
MANAGEMENT CLASSIFICATIONS
DEPT. HEMh^fH^
MTG. 11/27/12
PERFORMANCE MANAGEMENT AND
COMPENSATION SYSTEM FOR
MANAGEMENT CLASSIFICATIONS CITY ATTY. cX^
DEPT. HR
PERFORMANCE MANAGEMENT AND
COMPENSATION SYSTEM FOR
MANAGEMENT CLASSIFICATIONS CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2012-256 amending the Management Salary Structure,
establishing a Base Pay Increase Matrix to provide for base pay increases for eligible
unrepresented management employees and employees represented by the Carlsbad Police
Management Association (CPMA), increasing the Health "Benefits Credits" for unrepresented
management employees, decreasing the CalPERS Employer Paid Member Contribution
(EPMC) and eliminating the floating holiday for unrepresented management employees and
revising sections ofthe Management Compensation and Benefits Plan (Exhibit 1) to reflect
current practice.
Adopt Resolution No. 2012-257 amending the city's CalPERS Employer Paid Member
Contribution (EPMC) for local safety and local miscellaneous employees who are
unrepresented management employees, elected officials and appointed officials.
ITEM EXPLANATION:
A formal Perfonnance Management and Compensation System for management employees
was established in 1997. This system uses a market-based approach to setting
compensation levels for management employees and rewards employee perfonnance (when
funding is authorized by the City Council) for the demonstration of competencies and the
achievement of goals.
Management Salary Structure: One key element of the system is the management salary
structure. Covering all management jobs, the management salary structure reflects
competitive pay ranges for jobs assigned to each pay grade and provides the basis for
equitable pay decisions. Each year, the management salary structure is reviewed to ensure
that salary ranges for management classifications in the City of Carisbad remain competitive
with salaries paid by other local government agencies.
The City Council's philosophy is to adjust the management salary structure as necessary to
reflect changing market conditions. If the Council elects to adjust the salary structure, this
does not result in individual salary increases for management employees. This year's market
survey supports movement of the management salary structure upward by five percent (5%).
Attachment A, the Management Salary Structure, has been updated to reflect this movement.
Base Pay Increases: The amount of money used to fund the base pay matrix is set by the
City Council on an annual basis and is based on the City's economics and other factors as
detennined by the City Council.
DEPARTMENT CONTACT: Debbie Porter 760/602-2441 debbie.porter@carisbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
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At the end of each fiscal year, performance appraisals are completed for all unrepresented
management and CPMA employees, and each employee's annual pay increase is
determined by taking into consideration two factors:
1. Performance
2. Position in the salary range
Base pay increases are calculated using a Base Pay Matrix:
July 2012 Base Pay Matrix
Position in Salary Range
Performance Rating Below Market
Range
Within Market
Range
Exceeds Expectations A (5%) B (4.5%)
Achieves Expectations C (4%) D (3.5%)
Needs Improvement 0% 0%
After all performance ratings are determined, the dollar amount approved by the City Council
is spread appropriately to employees whose performance ratings and position in the range
assigns them to cells A, B, C and D in the above Base Pay Matrix. Because the intent is to
move high-performing employees who are paid below market range into the range as quickly
as possible, the percentage granted to employees in cell A will be greater than the
percentage granted to employees in cell B. Similarly, increases granted to employees rated
in cell C will be higher than those granted to employees in cell D. The actual base pay salary
adjustments to be given to management employees (in cells A, B, C and D) is not computed
until all management performance reviews have been completed. However, at no time will
the collective base pay increases granted to management employees exceed the budgeted
amount authorized by the City Council.
The above Base Pay Matrix will result in individual base pay adjustments ranging from 0% to
5% with an average base pay adjustment of 3.9%. Any base pay increases granted will be
effective the pay period that includes July 1, 2012.
Health Benefits Credits: On an annual basis, the City Council reviews the monthly amount
the City will contribute on behalf of each active management employee in the form of
"Benefits Credits". In order to share the increase in Health insurance premiums. City Council
will increase the monthly Benefits Credits effective January 1, 2013 by the following
additional amounts: 1) $26 for employees with "employee only" coverage, 2) $50 for
employees with "employee plus one dependent" coverage, 3) $65 for employees with
"employee plus two or more dependents" coverage and 4) $14 for employees who do not
wish to participate in the CalPERS Health Program and, therefore, exercise the "Opt Out
Provision".
Retirement: The City Council has expressed its desire for all employees to pay their full
share of the employee retirement contribution. Effective the pay period that includes
December 1, 2012, the City Council will decrease the Employer Paid Member Contribution
(EPMC) from 3.5% to 0% for all unrepresented management employees, elected officials and
appointed officials.
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Floating Holiday: Currently, management employees have 12 paid holidays per year. One of
those holidays is designated as a "floating holiday" which means the employee selects one
day each flscal year on which they will receive paid time off. Recent surveys show that the
public sector has more paid holidays than the private sector. In order to reduce paid
holidays. City Council will eliminate the floating holiday for unrepresented management
employees effective July 1, 2013.
Other Revisions to Reflect Current Practice: The remaining language changes outlined in
Exhibit 2 reflect recent changes resulting from implementation of a daily timekeeping system
and other current administrative pracflces.
The attached resolution supersedes Resolution No. 2009-217 dated August 18, 2009 in its
entirety. Exhibit 1, the Management Compensation and Benefits Plan, reflects the changes
to the Management Compensation and Benefits Plan described above.
FISCAL IMPACT:
There is no cost related to adjusting the Management Salary Structure.
The estimated annual cost of the above Base Pay Matrix for management employees for all
funds is approximately $630,000, which includes salary and related benefits. The reduction
ofthe CalPERS Employer Paid Member Contribution from 3.5% to 0% for unrepresented
management employees, elected officials and appointed officials will save the city
approximately $460,000 annually.
For FY 2012-13, the retroactive increase from the Base Pay Matrix and the reduction mid-
year of the CalPERS Employer Paid Member Contribution will result in a net budgetary
impact of approximately $390,000 citywide. The General Fund impact in FY 2012-13 is
approximately $322,000 and is requested to be funded from Council Contingency. The
impact for FY 2012-13 on all other city funds totals approximately $68,000 and new
appropriations are being requested which will be funded from the fund balances of each
respective fund. Fund balances are sufficient to allow for the additional appropriations.
The estimated annual cost of increasing the Health Benefits Credits effective January 1, 2013
is approximately $76,000. Sufficient funds for that increase have already been included in
the Fiscal Year 2012-13 Adopted Budget.
The elimination of the floaflng holiday effective July 1, 2013 for all unrepresented
management employees will result in a savings of approximately $2,300 per year related to
the additional pay Fire Battalion Chiefs receive in lieu of time off on a floating holiday. This
savings will be reflected in the Fiscal Year 2013-14 Adopted Budget.
There is no fiscal impact due to the sections ofthe Management Compensation and Benefits
Plan that were amended to reflect current practice.
ENVIRONMENTAL IMPACT:
The proposed action does not qualify as a "project" under the California Environmental
Quality Act (CEQA) per State CEQA Guidelines Secfion 15378 as it does not result in a direct
or reasonably foreseeable indirect physical change in the environment.
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EXHIBITS:
1. Resolufion No. 2012-256 with its Exhibit 1: Management Compensafion and
Benefits Plan and Attachment A: Management Salary Structure
2. Strikeout copy of the Management Compensation and Benefits Plan
3. Resolufion No.. 2012-257 amending the city's CalPERS Employer Paid Member
Contribution (EPMC) for local safety and local miscellaneous employees who are
unrepresented management employees, elected officials and appointed officials.
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1 RESOLUTION NO. 2012-256
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AMENDING
^ THE MANAGEMENT SALARY STRUCTURE,
ESTABLISHING A BASE PAY MATRIX TO PROVIDE
FOR BASE PAY INCREASES FOR ELIGIBLE
5 MANAGEMENT EMPLOYEES, INCREASING
HEALTH BENEFIT CREDITS, DECREASING THE
6 CALPERS EMPLOYER PAID MEMBER
CONTRIBUTION, ELIMINATING THE FLOATING
7 HOLIDAY AND REVISING THE MANAGEMENT
COMPENSATION AND BENEFITS PLAN TO
^ REFLECT CURRENT PRACTICE
WHEREAS, City Council has authorized the City Manager to administer a
Peri'ormance Management and Compensafion Plan for employees in management
classiflcations; and
WHEREAS, the compensafion program that has been designed provides for a
market survey of eleven public agencies and a management salary structure based on
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15 the market data gathered from the agencies in the survey market; and
16 WHEREAS, the survey data gathered indicates that an adjustment to the
17 management salary structure is justified; and
WHEREAS^ the City Council wishes to fund a base pay program for
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24 granted are based on performance; and
25 WHEREAS, the City Council has the authority to set the amount of Health
26 "Benefits Credits" that the City will contribute on behalf of each active management
27 employee; and
management employees which rewards the development and demonstrafion of
competencies on the job; and
WHEREAS, the City Council wishes to support a Peri'ormance Management and
Compensation System for management employees in which all compensation increases
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1 WHEREAS, the City Council intends to decrease the Employer Paid Member
2 Contribution (EPMC) for unrepresented management employees, elected officials and
appointed officials; and
WHEREAS, the City Council intends to eliminate the Floafing Holiday for
unrepresented management employees; and
WHEREAS, in order to reflect current practice, the Management Compensation
and Benefits Plan requires modification.
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9 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
10 Carlsbad, California, as follows:
11 1. That the above recitations are true and correct.
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implement base pay increases for management employees effecfive July 1,
lg 2012, based on peri'ormance during the previous fiscal year and a base pay
19 matrix that results in an average base pay adjustment of 3.9%, to be paid in
20 accordance with the Management Compensation Plan.
4. That the City Council authorizes the Finance Director to transfer $322,000 from
Council Contingency to the respective General Fund departments to be used to
provide for the difference between the cost of the July 1, 2012 base pay
increases for management employees and the budgetary savings from the
decrease to the retirement benefits for management employees effective the pay
2. That adjustments to the Management Salary Structure as reflected in Attachment
A of Exhibit 1 (Management Compensation and Benefits Plan) are hereby
approved.
3. That the City Council hereby authorizes the Human Resources Director to
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2y period that includes December 1, 2012
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1 5. That the City Council hereby authorizes the Finance Director to adjust the Fiscal
^ Year 2012-13 budgets for the Non-General Funds by appropriafing a total of
$68,000 in the affected funds to be used to provide for the difference between
the cost of the July 1, 2012 base pay increases for management employees and
the budgetary savings from the decrease to the retirement benefits for
management employees effective the pay period that includes December 1,
2012.
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9 6. That Exhibit 1, the Management Compensation and Benefits Plan, as approved,
10 contains revisions to the Health Benefits, Retirement, Holidays and other
11 provisions, and supersedes Resolution No. 2009-217 adopted August 18, 2009.
7. That the Fiscal Year 2012-13 budgets will be adjusted to reflect the net
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budgetary savings that results from the decrease to the refirement benefits.
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PASSED, APPROVED AND ADOPTED at a Regular Meefing ofthe City Council
of the City of Carisbad on the 27th day of November, 2012, by the following vote
to wit:
AYES:
NOES:
Council Members Hall, Kulchin, Blackburn, Douglas, Packard
None.
ABSENT: None.
MATT KALL, Mayor
ATTEST:
LOR^^E MrmOOD, 0% Clerk
Karen R. Kundtz, Assistant City Clerk
(SEAL)
Exhibit 1
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. Except as to
those management employees subject to an applicable law, all management
employees are considered "at-will" and have no property rights to their position. At
will employment with the City may be terminated at any time by either party, with or
without cause, for any reason or no reason whatsoever, and with or without advance
notice. At will employees do not have the right to appeal.
2. Carlsbad Police Management Association - The City of Carlsbad recognizes the
Carlsbad Police Management Association (CPMA) as the exclusive majority
representative for the classifications of Police Lieutenant and Police Captain,
pursuant to the petition for formal recognition submitted on January 24, 1983 and
approved April 22, 1983, in accordance with the Carlsbad Municipal Code.
3. City Council Appointed Employees - The City Manager and City Attomey 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 Attomey 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 Attomey, for
management employees in the City Attomey's Office)' to administer a Performance
Management and Compensation System for management employees, including CPMA
represented employees, under the following general guidelines.
' Hereafter, all references to the City Manager include, with regard to management employees in the City Attomey's
Office, the City Attomey.
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The system is comprised of two major components:
• Performance Management - emphasizing an employee development approach to
performance appraisal, comprised of:
=> Alignment of individual contributions with organizational direction,
=> Development and demonstration of competencies in the job, and
=> Measurement of levels of accomplishment of goals
• Compensation - based on a market driven approach to compensation, comprised of:
=> Market based salary stmcture
=> Base pay
=> Incentive Pay
PERFORMANCE MANAGEMENT
The Performance Managenient Cycle
The Performance Management Cycle coincides with the fiscal year and includes three separate
phases: Performance Planning, Performance Update, and Performance Review.
Major Components of Performance Management
The two major components upon which a management employee's performance is based are:
• the development and demonstration of specific competencies, and
• the accomplishment of goals.
Management Competencies -
All management employees are reviewed and evaluated based on how well they can
develop and demonstrate specific competencies. Competencies are the knowledge, skills,
abilities, and behaviors that are essential to the success of each management employee.
Goals -
Goals describe how the individual's contribution links and aligns with their department's
goals and objectives and ultimately with those of the City Council. Goals are set at the
begirming 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.
Revised 11/27/12
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 time to time. Both the base pay increases and the
incentive payments comprise the cash compensation available to management employees.
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
intemal relationships within the organization. Changes to the "minimum" and "market range" of
each salary grade within this stmcture 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 ofthe
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.
Revised 11/27/12
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. Employees cam the incentive based on their
achievement of goals established during the performance management process. For each goal,
achievement is determined by the supervisor.
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 ofthe
performance review cycle. Incentive awards are expressed as a percentage of base pay. The
City Council will determine the aimual 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 time to time 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 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 and Voluntary Benefits
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.
The City provides various voluntary benefits available at the employee's cost. Employees may
select among various levels of coverage. For information regarding these benefits, contact the
Human Resources Department at 760-602-2440.
Former CMWD management employees shall receive Group Term Life Insurance, Accidental
Death and Dismemberment, and Dependent Life Insurance as contained in their Individual
Agreement.
Revised 11/27/12
Retirement
All management employees shall participate in the Califomia 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 contract between the
city and CalPERS. A copy of this contract is kept on file in the Human Resources Department.
Management employees who are considered fire safety employees are eligible for the same
retirement benefit formula and are subject to the same optional retirement benefits described in
the City of Carlsbad CalPERS safety contract as those provided to employees represented by the
Carlsbad Firefighters' Association, Inc. Unrepresented swom police management employees are
eligible for the same retirement benefit formula and are subject to the same optional retirement
benefits described in the City of Carlsbad CalPERS safety contract as those provided to
employees represented by the Carlsbad Police Officers'Association.
The City has contracted with CalPERS for the following retirement benefits:
a) Miscellaneous Tier 1 (employees entering miscellaneous membership for the first time
prior to November 28, 2011) - retirement formula shall be 3% @ 60; single highest year
final compensation.
b) Miscellaneous Tier 2 (employees entering miscellaneous membership for the first time on
or after November 28, 2011) - retirement formula shall be 2% @ 60; three year average
final compensation.
c) Safety Tier 1 (employees entering safety membership for the first time prior to October 4,
2010) - retirement formula shall be 3% @ 50; single highest year final compensation.
d) Safety Tier 2 (employees entering safety membership for the first time on or after
October 4, 2010) - retirement formula shall be 2% @ 50; three year average final
compensation.
Employees entering membership on or after January 1, 2013 and who are subject to the
Califomia Public Employees' Pension Reform Act of 2013 (PEPRA) will have the following
retirement benefits:
a) Miscellaneous employees - retirement formula shall be 2% @ 62; three year average final
compensation.
b) Safety employees - retirement formula shall be 2.7% @ 57; three year average final
compensation.
Employee Retirement Contribution
The employee retirement contribution will be made on a pre-tax basis by implementing
provisions of section 414(h)(2) of the Intemal Revenue Code (IRC).
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Effective with the first payroll period including December 1, 2012, the Employee Paid Member
Contribution (EPMC) shall be reduced from 3.5% to 0% for all unrepresented management
employees. Employees shall make the following employee retirement contributions through
payroll deductions:
• First tier miscellaneous employees shall pay 8%,
• Second tier miscellaneous employees shall pay 7% and
• First and Second tier safety employees shall pay 9%.
Employee contributions for employees entering membership on or after January 1, 2013 and
subject to the Califomia Public Employees' Pension Reform Act of 2013 (PEPRA) will be
determined by CalPERS.
Management Leave
Management employees are exempt from overtime requirements under the Fair Labor Standards
Act. Fire Battalion Chiefs are exempt from overtime requirements under FLSA, however. Fire
Battalion Chiefs that are required to work a 24-hour shift/112 hours per bi-weekly pay period
schedule are paid straight time for overtime when they are covering the duty for a Battalion
Chief on leave. Management employees in the City are paid on a salary basis versus an hourly
basis. Pursuant to FLSA regulation 29 CFR Section 541.5d, the City can make deductions from
salary or leave accounts for partial day absences for personal reasons or sickness because the
City has a policy and practice of requiring its employees to be accountable to the public that they
have eamed 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 541.118 (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.
• Vacation
Every management employee shall accme vacation leave for each calendar year
of actual continuous service dating from the commencement of said service, with
such time to be accmed on a daily (calendar day) basis. Vacation leave can be
used in 15 minute increments.
All management employees (except Fire Battalion Chiefs that work 112 hours per
bi-weekly pay period) shall cam vacation on the following basis:
Beginning with the first (1 st) working day through the completion of five
(5) full calendar years of continuous service - 13 minutes/day.
Beginning the sixth (6th) year of employment through the completion of
ten (10) full calendar years of continuous service - 20 minutes/day.
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Beginning the eleventh (11th) year of employment through the completion
of eleven (11) full calendar years of continuous service - 21 minutes/day.
Begirming the twelfth (12th) year of employment through the completion
of twelve (12) full calendar years of continuous service - 22 minutes/day.
Beginning the thirteenth (13th) year of employment through the
completion of thirteen (13) full calendar years of continuous service - 24
minutes/day.
Beginning the fourteenth (14th) year of employment through the
completion of fifteen (15) full calendar years of continuous
service - 25 minutes/day.
Beginning the sixteenth (16th) year of continuous employment, vacation
time shall be accrued, and remain at a rate of 26 minutes/day for every full
calendar year of continuous employment thereafter.
Management employees with comparable service in local govenmient 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 cam and accme up to and including three hundred and twenty (320)
hours of vacation, and no employee will be allowed to cam and accme 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 Attomey's Office, where the City
Attomey shall be responsible for granting vacation.
* If there are unusual circumstances that would require an employee to exceed the vacation
accmal maximum, he/she must submit a request in writing to the Department Head and the City
Manager or Designee. The Department Head and the City Manager or Designee 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 accme vacation up to and
including the maximum as contained in their Individual Agreement.
Fire Battalion Chiefs that work 112 hours per bi -weekly pay period shall eam and
accme 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 Febmary, management employees will be allowed to voluntarily convert up
to 80 hours of accmed vacation to cash, provided that they have used 80 hours of
vacation during the prior calendar year. Fire Battalion Chiefs that work 112 hours
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per bi-weekly pay period will be allowed to voluntarily convert up to 112 hours of
accmed vacation to cash, provided that they have used 112 hours of vacation
during the prior calendar year.
Executive Leave
All management personnel, except former CMWD management employees, shall
receive 56 hours per fiscal year for executive leave. 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
Sick leave can be used in 15 minute increments.
Sixteen (16) minutes of sick leave are accmed per calendar day. Accumulation is
unlimited (employees cannot receive payment for unused sick leave). Fire
Battalion Chiefs that work 112 hours per bi-weekly pay period shall accme sick
leave commensurate with CFA represented employees that work at 112 hours per
bi-weekly pay period.
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 sick leave or, when no accmed leave is
available, treated as leave without pay.
The "immediate family" shall be defined in the personnel mles and
regulations.
The employee may be required to submit proof of relative's death before final
approval of bereavement leave 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 approval of his/her Department Head for less than
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two calendar weeks. If the duration of the leave of absence will be
longer, the approval of the City Manager or his/her designee is
required.
An employee shall utilize all his/her vacation, e-time and/or sick
leave (if applicable) prior to taking an authorized leave of absence
without pay.
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 retum to his/her 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 in writing
and shall state specifically the reason for the request, the date when
the leave is desired to begin, the probable date of retum, 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 his/her
Department Head, and, if applicable, shall be promptly transmitted
to the City Manager or his/her designee for approval. A copy of
any approved request for leave of absence without pay with a
duration equal to or greater than two calendar weeks 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.
Revised 11/27/12
n
D. Retum From Leave
When an employee intends to retum from an authorized leave of
absence without pay either before or upon the expiration of such
leave, he/she shall contact his/her Department Head at least
fourteen (14) calendar days prior to the day he/she plans to retum.
The Department Head shall promptly notify the Human Resources
Department of the employee's intention. The employee shall
retum at a rate of pay not less than the rate at the time the leave of
absence began.
E. Effect of Leave Without Pay
A prorata reduction of normal aimual vacation and sick leave
accmals 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. Accmal will be reinstituted beginning the
first day after the employee has retumed to work.
F. Leave Without Pay - Insurance Payments and Privileges
An employee on leave without pay may continue his/her City
insurance benefits by reimbursing the City for the employee's
costs of insurance on a monthly basis during the period ofthe
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.
Upon the employee's retum to paid status, any sums due to the
City shall be repaid through payroll deductions. This applies to
sums due for insurance as well as other payment plans entered into
between the City and the employee (e.g., computer loan).
Upon eligibility for COBRA, the employee will be notified of the
opportunity to continue benefit coverage via the COBRA process.
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Revised 11/27/12
An employee on leave of absence without pay shall not have all of
the privileges granted to regular employees (e.g., holiday pay),
unless required by law.
Pregnancy Disability Leave
Pregnancy Disability Leave shall be authorized and/or administered in accordance
with the provisions of State and Federal law. An employee disabled by pregnancy
shall be allowed to utilize a combination of accmed 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 accmed leave prior to taking
leave without pay. Reasonable period of time means that period during which the
employee is disabled on account of pregnancy, childbirth, or related conditions.
An employee who plans to take a leave pursuant to this article shall give the City
reasonable notice of the date the leave shall commence and the estimated duration
of the leave.
Family and Medical Leave of Absence (FMLA)
An employee may be granted a FMLA of up to 12 weeks ina 12 month period for
one or more of the following reasons:
- for the birth/placement of a child for adoption or foster care,
- to care for an immediate family member with a serious health condition, or
- to take medical leave when the employee is unable to work because of a
serious condition.
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.
Military Leave
Military leave shall be authorized in accordance with the provisions of State and
Federal law. The employee must fumish satisfactory proof to his/her Department
Head, as far in advance as possible, that he/she must report to military duty.
Jury Duty
When called to jury duty, an employee shall be entitled to his/her regular
compensation. Employees released early from jury duty shall report to their
11
Revised 11/27/12
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 his/her sole discretion, contact the court and request
an exemption and/or 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 Califomia 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 Govemment Code Section 22892 of the PEMHCA toward the
cost of each retiree's enrollment in the CalPERS Health Program.
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 retiree and eligible dependents shall be home solely by the retiree. The
City shall not charge the COBRA administrative cost to the retirees. A retiree who does not
choose continued coverage upon retirement, or drops coverage, is only eligible to retum to the
City's dental and vision insurance program during open enrollment periods.
The City will invoice the retiree for his/her monthly premiums for dental and/or vision insurance
and the retiree must keep such payments current to ensure continued coverage.
Sick Leave Conversion
Any management employee who has accmed 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
accmal 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
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20
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 shall be paid holidays in accordance with the schedule of eleven (11)
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.
As of July 1, 2013, the floating holiday shall be eliminated for all management employees.
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
Only employees who are on paid status on their last scheduled work day before a holiday shall
be entitled to the paid holiday except where otherwise required by law.
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 Califomia 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
Govemment Code Section 22892 of the PEMHCA for medical insurance through the Califomia
13
Revised 11/27/12
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, 2012, 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" coyerage, the City shall contribute
five hundred forty-one ($541) per month that shall include the mandatory
payments to CalPERS. If the actual total premiums exceed the City's total
contributions, the employee will pay the difference.
(b) For employees with "employee plus one dependent" coverage, the City
shall contribute one thousand thirty-two dollars ($ 1,032) 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 one thousand three hundred fifty-six dollars
($1,356) 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, 2013, 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
five hundred sixty-seven ($567) 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 one thousand eighty-two dollars ($1,082) 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 one thousand four hundred twenty-one dollars
($1,421) per month that shall include the mandatory payments to
14
Revised 11/27/12
?2.
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
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, 2012, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of two hundred ninety-four dollars ($294) 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 ninety-four dollars ($294) 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, 2013, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of three hundred eight dollars ($308) 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 three hundred eight dollars ($308) 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).
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13
All active management employees who work three quarter-time or less will receive prorated
benefit credits
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 Physical Examination and/or Physical Fitness Testing
All management employees, excluding former CMWD management employees, shall be eligible
for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal
year to pay the cost of an employee's annual physical examination and/or physical fitness testing.
The annual physical examination may be completed by a physician of the employee's choice.
Each employee claiming reimbursement shall be required to submit original receipts to the
Human Resources Department in lieu of submitting them to the insurance company for payment.
The annual physical examination offered to management employees provides physical fitness
testing and information regarding lifestyle changes that promote optimum health. Program
components include, but are not limited to: Computerized Heart Risk Profile, Complete Blood
Profile, Nutritional Assessment, Diet Program, Body Measurements, Lung Assessment,
Consultations, etc.
Long-Term Disability Insurance (LTD)
Long-term disability is available for all management personnel (except management personnel
who are considered fire safety employees) after 30 days of disability. The LTD premium cost is
paid by the City. Employees shall be entitled to combine accumulated vacation leave or e-time
with LTD payments for the purpose of achieving the equivalent of their pre-disability salary to
the extent allowed by law during any period of nonindustrial disability. Accumulated sick leave
may not be combined with LTD payments. Under no circumstances shall the combination of
accumulated leave and LTD payments exceed the employee's pre-disability salary.
Former CMWD management employees shall receive LTD benefits as contained in their
Individual Agreement.
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.
The City agrees to work with the City's deferred compensation provider (currently ICMA
Retirement Corporation) to maintain a personal loan provision for all management employees. It
16
Revised 11/27/12
2V
is acknowledged that the City will assist in the administration of this benefit but that the City has
no liability if an employee should default on the repayment of such a loan.
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 eamings.
Drug and Alcohol Policy
It is the policy of the City of Carlsbad to provide a work environment free from the effects of
dmgs and alcohol consistent with the directives of the Dmg 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. For
more specific information, contact the Human Resources Department or visit the City's intranet
site.
Reporting Value of Uniforms to CalPERS
Effective May 31, 2010, all fire management employees who are required to wear City-provided
uniforms will have the amount of $17.31 reported to CalPERS bi-weekly as special
compensation related to the monetary value of the required uniforms, excluding boots.
17
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Attachment A
JOB TITLE
Management Salary Stmcture (Base Pay)
FY 2012/13
GRADE MINIMUM MARKET RANGE
Assistant City Manager 8 $ 130,500 $150,200 - $ 189,300
Deputy City Manager 8
Fire Chief 8
Police Chief 8
Assistant City Attomey 7 $ 113,500 $130,000 - $ 162,300
Community & Economic Dev. Director 7
Finance Director 7
Fire Division Chief 7
Housing & Neighborhood Svcs Director 7
Human Resources Director 7
Information Technology Director 7
Library and Cultural Arts Director 7
Police Captain 7
Parks and Recreation Director 7
Property & Environmental Mgmt. Dir. 7
Transportation Director 7
Utilities Director 7
Assistant Finance Director 6 $ 92,900 $106,800 - $ 134,700
Assistant Utilities Director 6
Building & Code Enforc. Manager 6
City Communications Manager 6
City Traffic Engineer 6
City Planner 6
Deputy City Attomey 6
Economic Development Manager 6
Engineering Manager 6
Fire Battalion Chief 6
Fire Marshal 6
Information Technology Manager 6
Municipal Property Manager 6
Police Lieutenant 6
Public Works Manager 6
Development Services Manager 5 $ 84,700 $95,200 - $ 116,600
Emergency Medical Services (EMS)
Paramedic Nurse Coordinator 5
Environmental Programs Manager 5
Facilities Manager 5
Finance Manager 5
Finance Payroll Information Technology Mgr 5
Revised 11/27/2012
2So
Attachment A
JOB TITLE
Management Salary Structure (Base Pay)
FY 2012/13
GRADE MINIMUM MARKET RANGE
Geographic Info. Systems Manager 5
Human Resources Manager 5
Municipal Projects Manager 5 $ 84,700 $95,200 - $ 116,600
Park Development Manager 5
Police Communications Manager 5
Principal Planner 5
Public Safety Info. Technogy Manager 5
Public Works Superintendent 5
Recreation Services Manager 5
Risk Manager 5
Senior Engineer 5
Utilities Superintendent 5
Cultural Arts Manager 4 $ 70,000 $78,800 - $ 96,200
Constmction Manager 4
Deputy Library Director 4
Emergency Preparedness Coordinator 4
Housing Program Manager 4
Public Information Officer 4
Records Manager 4
Senior Accountant 4
Senior Management Analyst 4
Video Production Manager 4
Community Relations Manager 3 $ 62,300 $69,900 - $ 85,400
Management Analyst 3
Principal Librarian 3
Public Works Supervisor 3
Utilities Supervisor 3
Aquatic Supervisor 2 $ 55,400 $62,500 - $ 76,200
Assistant City Clerk 2
Associate Analyst 2
Benefits Administrator 2
Gallery Curator 2
Media Services Specialist 2
Recreation Area Manager 2
Secretary to City Attomey 2
Secretary to City Council 2
Secretary to City Manager 2
Revised 11/27/2012
17
Attachment A
JOB TITLE
Management Salary Stmcture (Base Pay)
FY 2012/13
GRADE MINIMUM MARKET RANGE
Communications Coordinator 1 $ 50,400 $56,900 - $ 69,200
Community Arts Coordinator 1
Community Volunteer Coordinator 1
Management Assistant 1
Revised 11/27/2012
Exhibit 2
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 v^ll 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 Stmcture. Except as to
those management employees subject to an applicable law, all management
employees are considered "at-will" and have no property rights to their position. At
will employment with the City may be terminated at any time by either party, with or
without cause, for any reason or no reason whatsoever, and with or v^thout advance
notice. At will employees do not have the right to appeal.
2. Carlsbad Police Management Association - The City of Carlsbad recognizes the
Carlsbad Police Management Association (CPMA) as the exclusive majority
representative for the classifications of Police Lieutenant and Police Captain,
pursuant to the petition for formal recognition submitted on January 24, 1983 and
approved April 22, 1983, in accordance with the Carlsbad Municipal Code.
3. City Council Appointed Employees - The City Manager and City Attomey 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 Attomey 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
othenvise 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 Attomey, for
management employees in the City Attomey's Office)^ to administer a Performance
Management and Compensation System for management employees, including CPMA
represented employees, under the following general guidelines.
^ Hereafter, all references to the City Manager include, with regard to management employees m the City Attomey's
Office, the City Attomey.
1
Revised 11/27/12
1
The system is comprised of two major components:
• Performance Management - emphasizing an employee development approach to
performance appraisal, comprised of:
=> Alignment of individual contributions v^th organizational direction,
=> Development and demonstration of competencies in the job, and
=> Measurement of levels of accomplishment of goals
• Compensation - based on a market driven approach to compensation, comprised of:
=> Market based salary stmcture
=> 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.
Major Components of Performance Management
The two major components upon which a management employee's performance is based are:
• the development and demonstration of specific competencies, and
• the accomplishment of goals.
Management Competencies -
All management employees are reviewed and evaluated based on how well they can
develop and demonstrate specific competencies. Competencies are the knowledge, skills,
abilities, and behaviors that are essential to the success of each management employee.
Goals -
Goals describe how the individual's contribution links and aligns with their department's
goals and objectives and ultimately with those of the City Council. Goals are set at the
beginning of the performance management cycle, and employees are evaluated at the end
of the cycle as to how well they accomplished their assigned tasks for the year.
Revised 11/27/12
3o
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 time to time. Both the base pay increases and the
incentive payments comprise the cash compensation available to management employees.
COMPENSATION
The Performance Management and Compensation System is based upon a market based
approach to compensation, comprised of:
• A market based salary stmcture
• 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 ofthe 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 ofCarlsbad classification will be compared v^th 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
intemal relationships within the organization. Changes to the "minimum" and "market range" of
each salary grade within this stmcture shall be approved by the City Council.
The City Council determines the budget amoimt to be spent on management base pay increases
for each fiscal year, and the base pay increase percentages will be determined after all ofthe
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.
Revised 11/27/12
For 2011, the City Council has determined that Management omployoes will receive a 3 percent
salary increase, beginning the pay period that includes December 1, 2011, except as noted below:
Employees whose most recent performance evaluation documented a below standard
level of performance will not receive an increase.
Employees whose salaries are already at tho top of the salary range for their position will
receive a one time payment equal to 3 percent of their salary, but no salary increase.
Employees w^hose salaries are within 1 or 2 percentage points of the top ofthe salary
range for their position will receive a salary increase to the top of the salary range and the
remaining amount as a one time payment.
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. Employees eam the incentive based on their
achievement of goals established during the performance management process. For each goal,
achievement is yate^ baned on one of tw^o performance levels: Threshold or Target.determined
by the supervisor.
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 ofthe
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 time to time 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 and Voluntary Benefits
All management employees shall receive City paid life insurance in an amount equal to two
times the basic yearly eamings. 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
Revised 11/27/12
^2.
an amount equal to City paid life insurance, is available at the omployoo's cost. Dependent life is
also available at the employee's cost.
The City provides various voluntary benefits available at the employee's cost. Employees may
select among various levels of coverage. For information regarding these benefits, contact the
Human Resources Department at 760-602-2440.
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
AU management employees shall participate in the Califomia 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 v^th CalPERS are outiined in the Coverage Key of the
CalPERS Procedures Manualcontract between the city and CalPERS. A copy of this manual
contract is kept on file in the Human Resources Department.
Management employees who are considered fire safetv employees are eligible for the same
retirement benefit formula and are subject to the same optional retirement provisionsbenefits
described in the Citv of Carlsbad CalPERS safetv contract as those provided to emplovees
represented bv the Carlsbad Firefighters' Association. Inc. Unrepresented swom police
management employees are eligible for the same retirement benefit formula and are subiect to
the same optional retirement benefits described in the City of Carlsbad CalPERS safety contract
as those provided to employees represented by the Carlsbad Police Officers'Association.
The Citv has contracted with CalPERS for the following retirement benefits:
a) Miscellaneous Tier 1 (employees entering miscellaneous membership for the first time
prior to November 28, 2011) - retirement formula shall be 3% @ 60; single highest year
final compensation.
b) Miscellaneous Tier 2 (employees entering miscellaneous membership for the first time on
or after November 28, 2011) - retirement formula shall be 2% @ 60; three year average
final compensation.
c) Safety Tier 1 (employees entering safety membership for the first time prior to October 4,
2010) - retirement formula shall be 3% (d), 50; single highest year final compensation.
d) Safety Tier 2 (employees entering safety membership for the first time on or after
October 4, 2010) - retirement formula shall be 2% (g) 50; three year average final
compensation-
Employees entering membership on or after January 1, 2013 and who are subject to the
Califomia Public Employees' Pension Reform Act of 2013 (PEPRA) will have the following
retirement benefits:
Revised 11/27/12
3-3
a) Miscellaneous employees - retirement formula shall be 2% fg), 62; three year average final
compensation.
b) Safety employees - retirement formula shall be 2.7% (d), 57; three year average final
compensation.
Employee Retirement Contribution
All management employees, other than management employees who are considered fire
safety employees, shall have all seven percent (IVo) of their portion ofthe retirement
contribution to the Califomia Public Employees' Retirement System paid by tho City
until tho 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 doomed eligible for safety retirement will bo doomed
miscellaneous under the CalPERS system.
Management cmployoco who arc considered fire safety cmployoca arc eligible for the
oamo retirement benefit formula and arc subject to the oamo retirement proviQiono
dcocribod in the City of Carlsbad CalPEP^S safety contract as those provided to
cmployoco represented by the Carlsbad Firefighters' Association, Inc. For swom fire
management employees, the City will contract with the Califomia Public Employees'
Retirement System (CalPERS) to provide tho "3^0 @ 50" retirement benefit effective the
pay period inclusive of January 1, 2001 Effective the pay period inclusive of January 1,
2001, the City will pay on behalf of all swom fire management employees eight percent
(8^0) ofthe employee's retirement contribution to CalPERS. Effective tho pay period
inclusive of Januar>^ 1, 2001 each swom fire management employee will pay the
additional one percent (l^o) employee retirement contribution to CalPERS. Tho one
percent employee retirement contribution will be made on a pre tax basis. A two tier
retirement plan will apply to all swom members entering membership for the first time in
a City ofCarlsbad fire safety classification on or after October 1, 2010. The terms ofthe
second tier shall include the following:
a. 2% @ 50 formula
b. 3 year Final Average Eamings (FAE) for final componsation calculation
A. Effective January 1, 2005, tho City will contract with CalPERS to provide tho "3^0 @ 60"
retirement benefit for Management employees who are considered miscellaneous.
Effective tho pay period inclusive of January 1, 2005, the City will pay on behalf of all
miscellaneous management omployoes seven percent (7^0) of the employee's retirement
contribution to CalPERS. Effective the pay period inclusive of Januar>^ 1, 2005, each
miscellaneous management employee will pay the additional one percent (l^o) employee
retirement contribution to CalPERS. This one percent employee retirement contribution
will be made on a pre tax basis by implementing provisions of section 111 (h)(2) ofthe
Intemal Revenue Code (IRC).
Reduction in Employer Paid Member Contributions (EPMC): Effective with tho first payroll
period including Docombor 1, 2011, tho EPMC referenced above shall be reduced to 3.5^0
Revised 11/27/12
^1
3^'
for all management employees. First tier non safety employees shall malce employee
contributions of 1.5% through payroll deductions. Since the statutor>^ employee contribution
for Second tier non safet>^ employees (as described below) is 7%, those employees shall
make employee contributions of 3.5S^o through payroll deductions. All safety employees
shall malce employee contributions of 5.5^0 through payroll deductions. The employee
retirement contribution will be made on a pre-tax basis by implementing provisions of
section 414(h)(2) ofthe Intemal Revenue Code (IRC).
Effective with the first payroll period including December 1, 2012, the Employee Paid
Member Contribution (EPMC) shall be reduced from 3.5% to 0% for all unrepresented
management employees. Employees shall make the following employee retirement
contributions through payroll deductions:
• First tier miscellaneous employees shall pay 8%,
• Second tier miscellaneous employees shall pay 7% and
• First and Second tier safety employees shall pay 9%.
Employee contributions for employees entering membership on or after January 1, 2013
and subiect to the California Public Employees' Pension Reform Act of 2013 (PEPRA)
will be determined by CalPERS.
B. Second tier of retirement benefits for employees hired after November 27, 2011: The
City shall amend its contract with CalPERS pursuant to Government Code Section 20175
to provide a second tier of retirement benefits for all employees hired after November
27, 2011 or as soon as administratively possible thereafter. The second tier shall have the
following key components:
—Retirement Formula shall be 2% @ 60 (Government Code Section 21353); and
three year average final compensation (Government Code Section 20037).
Management Leave
Management employees are exempt from overtime requirements under the Fair Labor Standards
Act. Fire Battalion Chiefs are exempt fi-om overtime requirements under FLSA, however. Fire
Battalion Chiefs that are required to work a 24-hour shift/112 hours per bi-weekly pay period
schedule are paid straight time for overtime when they are covering the duty for a Battalion
Chief on leave. Management employees in the City are paid on a salary basis versus an hourly
basis. Pursuant to FLSA regulation 29 CFR Section 541.5d, the City can make deductions fi'om
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 eamed 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 541.118 (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
Revised 11/27/12
in his/her leave account to cover the absence, deductions without pay will be made on full days
only.
• Vacation
Every management employee shall accme vacation leave for each calendar year
of actual continuous service dating from the commencement of said service, with
such time to be accmed on a daily (calendar day) basis. Vacation leave can be
used in 15 minute increments.
All management employees (except Fire Battalion Chiefs that work 112 hours per
bi-weekly pay period) shall eam vacation on the following basis:
Beginning v^th the first (1 st) working day through the completion of five
(5) full calendar years of continuous service -13 minutes/day80-
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 - 20 minutes/day420-
hours/year (1.62 hours biweekly).
Beginning the eleventh (11th) year of employment through the completion
of eleven (11) full calendar years of continuous service - 21
minutes/day 128 hours/year (1.92 hours biw^eekly).
Beginning the twelfth (12th) year of employment through the completion
of twelve (12) full calendar years of continuous service - 22
minutes/day 136 hours/year (5.23 hours biweekly).
Beginning the thirteenth (13th) year of employment through the
completion of thirteen (13) full calendar years of continuous service - 24
minutes/daylll hours/year (5.51 hours biweekly).
Beginning the fourteenth (14th) year of employment through the
completion of fifteen (15) full calendar years of continuous
service - 25 minutes/day 152 hours/year (5.81 hours biweekly).
Beginning the sixteenth (16th) year of continuous employment, vacation
time shall be accrued, and remain at a rate of 26 minutes/day 160 hours for
every full calendar year of continuous employment thereafter (6.15 hours
biw^eekly).
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 eam and accme up to and including three hundred and twenty (320)
hours of vacation, and no employee will be allowed to eam and accme vacation
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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 Attomey's Office, where the City
Attomey shall be responsible for granting vacation.
* If there are unusual circumstances that would require an employee to exceed the vacation
accmal maximum, he/she must submit a request in vmting to the Department Head and the City
Manager or Designee. The Department Head and the City Manager or Designee may grant such
a request ifit 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 eam and accme vacation up to and
including the maximimi as contained in their Individual Agreement
Fire Battalion Chiefs that work a-112 hours per bi -weekly pay period shall eam
and accme 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 DecemberFebmary, management employees will be allowed to voluntarily
convert up to 80 hours of accmed 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
accmed vacation to cash, provided that they have used 112 hours of vacation
during the prior calendar year as defined by tho 26 pay periods in that calendar
y ^Lii •
Executive Leave
All management personnel, except former CMWD management employees, shall
receive 56 hours per fiscal year for executive leave. 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
Sick leave can be used in 15 minute increments.
Sixteen (16) minutes Twelve (12) days of sick leave are accmed per ye^calendar
day. Accumulation is unlimited (employees cannot receive payment for unused
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3-^
sick leave). Fire Battalion Chiefs that work 112 hours per bi-weekly pay period
shall accme sick leave commensurate with CFA represented employees that work
at 112 hours per bi-weekly pay period.
Bereavement Leave
An employee may use up to an equivalent of three work days of paid leave if
required to be absent fi'om 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 accmed vacation or sick leave or-, when no accmed leave is
available, treated as leave without pay.
The "immediate family" shall be defined in the personnel mles and
regulationsas: spouse, child, parent, sibling, grandparents, grandchild,
registered domestic partner; 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 bereavement 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 approval of his/her
Department Head ^for less than two calendar weeks. If the
duration of the leave of absence will be longer, d-the approval of
the City Managerv or his/her designee is required.
An employee shall utilize all his/her vacation, e-time and/or sick
leave (if applicable) prior to taking an authorized leave of absence
without pay.
A leave v^thout 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 rettrni to his/her position in the
City service.
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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 in vyriting and shall state
specifically the reason for the request, the date when the leave is
desired to begin, the probable date of retum, 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 his/her
Department Head, and, upon written recommendation of the
Department Head that it be granted, modified or deniedif
applicable, shall be promptly transmitted to the City Manager or
his/her designee for approval. A copy of any approved request for
leave of absence without pay with a duration equal to or greater
than two calendar weeks 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. Retum From Leave
When an employee intends to retum from an authorized leave of
absence without pay either before or upon the expiration of such
leave, he/she shall contact his/her Department Head at least
fourteen (14) calendar days prior to the day he/she plans to retum.
The Department Head shall promptly notify the City
ManagerHuman Resources Department of the employee's
intention. The employee shall retum 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 his/her vacation, and/or sick leave (if
applicable) prior to talcing an authorized leave of absence without
pay.
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5^
A prorata reduction of normal annual vacation and sick leave
accmals 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. Accmal will be reinstituted beginning the
first day of the first full pay period after the employee has retumed
to work.
F. Leave Without Pay - Insurance Payments and Privileges
An employee on leave without pay may continue his/her City
insurance benefits by reimbursing the City for the employee's
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.
Upon the employee's retum to paid status, any sums due to the
City shall be repaid through payroll deductions. This applies to
sums due for insurance as well as other payment plans entered into
between the City and the employee (e.g., computer loan).
Upon eligibility for COBRA, the employee will be notified of the
opportunity to continue benefit coverage via the COBRA process.
An employee on leave of absence without pay shall not have all of
the privileges granted to regular emplovees (e.g., holiday pay),
unless required by law.
Pregnancy Disability Leave
Pregnancy Disability Leave shall be authorized and/or administered in accordance
with the provisions of State and Federal law. An employee disabled by pregnancy
shall be allowed to utilize a combination of accmed 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 accmed leave prior to taking
12
Revised 11/27/12
</o
leave without pay. Reasonable period of time means that period during which the
employee is disabled on account of pregnancy, childbirth, or related conditions.
An employee who plans to take a leave pursuant to this article shall give the City
reasonable notice of the date the leave shall commence and the estimated duration
of the leave.
• Family and Medical Leave of Absence (FMLA)
An employee may be granted a FMLA of up to 12 weeks ina 12 month period for
one or more of the following reasons:
- for the birth/placement of a child for adoption or foster care,
- to care for an immediate family member with a serious health condition, or
- to take medical leave when the employee is unable to work because of a
serious condition.
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.
• Military Leave
Military leave shall be authorized in accordance with the provisions of State and
Federal law. The employee must fumish satisfactory proof to his/her Department
Head, as far in advance as possible, that he/she must report to military duty.
• Jury Duty
When called to jury duty, an employee shall be entitled to his/her 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 his/her sole discretion, contact the court and request
an exemption and/or postponement of jury service on behalf of an employee.
Employees released early fi'om 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 fi'om reporting back to work if an unreasonable
amoimt of the work day remains in light of travel time to the job site after release.
Health Insurance for Retirees
13
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9
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 Califomia Public
Employees' Retirement System (CalPERS) Health Program. Management employees who retire
fi'om 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 fi-om employment and their effective
date of retirement is within 120 days of separation. The City will contribute the minimum
amoimt per month required under Govemment Code Section 22892 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 retiree and eligible dependents shall be borne solely by the
employeeretiree. The City shall not charge the COBRA administrative cost to the retirees. A
retiree who does not choose continued coverage upon retirement, or drops coverage, is only
eligible to retum to the City's dental and vision insurance program during open enrollment
periods.
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 will invoice the retiree for to prepay his/her
monthly premiums for dental and/or vision insurance and the retiree must keep such payments
current to ensure continued coverage.
Sick Leave Conversion
Any management employee who has accmed 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
accmal 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 firom any of these referenced management
employees at the current rate.
Separation Compensation
All management employees involuntarily separated fi'om the City service due to budget
cutbacks, layoffs, contracting out of service or for other reasons not due to misconduct which
14
Revised 11/27/12
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 shall be paid holidays in accordance with the schedule of eleven (11)
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.
As of July 1, 2013, the floating holiday shall be eliminated for all management employees.
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
Only employees who are on paid status on their last scheduled work day before a holiday shall
be entitled to the paid holiday except where otherwise required bv law.
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 Califomia 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
Govemment Code Section 22892 of the PEMHCA for medical insurance through the Califomia
Public Employees' Retirement System (CalPERS). If electing to enroll for medical benefits, the
employee must select one medical plan fi-om the variety of medical plans offered.
Effective January 1, 2011, 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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Revised 11/27/12
V3
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
five hundred thirty ($530) 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.
(fe) For employees with "employee plus one dependent" coverage, the City
shall contribute one thousand eleven dollars ($1,011) 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.
(e) For employees with "employee plus two or more dependents" coverage,
the City shall contribute one thousand three hundred twenty eight dollars
($1,328) 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, 2012, 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
five hundred forty-one ($541) 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 dependenf coverage, the City
shall contribute one thousand thirty-two dollars ($1,032) 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 one thousand three hundred fifty-six dollars
($1,356) 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, 2013, 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:
16
Revised 11/27/12
(a) For employees with "employee only" coverage, the Citv shall contribute
five hundred sixty-seven ($567) 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 dependenf coverage, the City
shall contribute one thousand eighty-two dollars ($1,082) 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 one thousand four hundred twenty-one dollars
($1,421) 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
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, 2011, employees w^ho elect this option will be given a reduced City
contribution amount (Benefits Credits) of two hundred eighty eight dollars ($288) per month,
that shall include the mandator}^ 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
17
Revised 11/27/12
contribution amount of two hundred eighty eight dollars ($288) per month will be granted to any
employee w^ho 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, 2012, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of two hundred ninety-four dollars ($294) 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 ninety-four dollars ($294) 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, 2013, employees who elect this option will be given a reduced City
contribution amount (Benefits Credits) of three hundred eight dollars ($308) 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 Citv
contribution amount of three hundred eight dollars ($308) 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).
All active management employees who work three quarter-time or less will receive prorated
benefit credits
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 Physical Examination and/or Physical Fitness Testing
All management employees, excluding former CMWD management employees, shall be eligible
for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal
year to pay the cost of an employee's annual physical examination and/or physical fitness testing.
The annual physical examination may be completed by a physician of the employee's choice.
Each employee claiming reimbursement shall be required to submit original receipts to the
Human Resources Department in lieu of submitting them to the insurance company for payment.
The annual physical examination offered to management employees provides physical fitness
testing and information regarding lifestyle changes that promote optimum health. Program
components include, but are not limited to: Computerized Heart Risk Profile, Complete Blood
18
Revised 11/27/12
Profile, Nutritional Assessment, Diet Program, Body Measurements, Lung Assessment,
Consultations, etc.
Long-Term Disability Insurance (LTD)
Long-term disability is available for all management personnel (except management personnel
who are considered fire safety employees) after 30 days of disability. The LTD premium cost is
paid by the City._ Employees shall be entitled to combine accumulated vacation leave or e-time
with LTD payments for the purpose of achieving the equivalent of their pre-disability salary to
the extent allowed by law during any period of nonindustrial disability. Accumulated sick leave
mav not be combined with LTD payments. Under no circumstances shall the combination of
accumulated leave and LTD payments exceed the employee's pre-disability salary.
Former CMWD management employees shall receive LTD benefits as contained in their
Individual Agreement.
Accidental Death and Dismemberment
This is a voluntar>^ program available to any employee w^ho 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.
The City agrees to work with the City's deferred compensation provider (currently ICMA
Retirement Corporation) to implement maintain a personal loan provision for all management
employees as soon as administratively possible. It is acknowledged that the City will assist in
the administrative set upadministration of this benefit but that the City has no liability if an
employee should default on the repayment of such a loan.
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 eamings.
Drug and Alcohol Policv
It is the policy of the City of Carlsbad to provide a work environment free fi'om the effects of
dmgs and alcohol consistent with the directives of the Dmg 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.
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Hi
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. For
more specific information, contact the Human Resources Department or visit the City's intranet
site.
Reporting Value of Uniforms to CalPERS
Effective May 31, 2010, all fire management employees who are required to wear City-provided
uniforms will have the amount of $17.31 reported to CalPERS bi-weekly as special
compensation related to the monetary value of the required uniforms, excluding boots.
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Revised 11/27/12
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RESOLUTION NO. 2012-257
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING THE CITY'S CALPERS
EMPLOYER PAID MEMBER CONTRIBUTION (EPMC) FOR
UNREPRESENTED MANAGEMENT EMPLOYEES, ELECTED
OFFICIALS AND APPOINTED OFFICIALS
WHEREAS, the City Council of the City of Carisbad has the authority to implement
Government Code Section 20691; and
WHEREAS, the Retirement section ofthe Management Compensafion and Benefits
Plan applies to unrepresented management employees, elected officials and appointed officials,
and specifically provides for a portion of the normal member contributions to be paid by the City;
and
WHEREAS, the City Council intends to modify the Retirement section of the
Management Compensation and Benefits Plan to decrease the Employer Paid Member
Contribufion (EPMC); and
WHEREAS, the City Council has identified the conditions described below for reduction
ofthe EPMC.
• This benefit shall apply to all in the following groups and this benefit shall consist of
the City paying the related percentage of the normal member contributions as EPMC
as noted:
Employee Group Effective
Date
EPMC
Percentage
1. Unrepresented Miscellaneous Management
Employees
11/26/2012 0%
2. Unrepresented Safety Management (Police
and Fire) Employees
11/26/2012 0%
3. Elected Officials 11/26/2012 0%
4. Appointed Officials 11/26/2012 0%
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Carisbad as
follows:
1. That the above recitations are true and correct.
///
^7
1 2. That the City Council wishes to comply with Secfion 20691 by adopting this
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resolufion.
3. That the City Council elects to pay Employer Paid Member Contributions
(EPMC), as set forth above.
///
SD
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PASSED, APPROVED AND ADOPTED at a Regular Meefing of the City Council
of the City of Carisbad on the 27th day of November, 2012, by the following vote
to wit:
AYES:
NOES:
Council Members Hall, Kulchin, Blackburn, Douglas, Packard
None.
ABSENT: None.
MATT IflALL, Mayor
ATTEST:
LORFWNE
Karen R. Kundtz,
(SEAL)
_ Clerk
istant City Clerk
<^r3t o/<