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HomeMy WebLinkAbout2019-12-10; City Council; ; Side Letters amending Memorandum of Understandings (MOUs) with the Carlsbad Police Management Association, Carlsbad Police Officers' Association, Carlsbad City Employees'Pursuant to Gov. Code section 3505.1, the Side Letters to the MOUs are being presented to the City Council as the governing body for consideration. Staff also recom.mends updating the Management Compensation and Benefits Plan for unrepresented employees. Per Carlsbad Municipal Code Section 2.44.020, the City Council is the governing body authorized to make changes to such documents. Discussion 1. Carlsbad Police Management Association: Beginning Jan. 1, 2020, the city will provide represented employees with a short-term disability insurance plan, a modified long-term insurance plan, and a modified life and AD&D insurance plan. Articles 18.5, 21 and 30 of the CPMA MOU will be replaced in their entirety. The Side Letter modifying the MOU language is included as Attachment A to the Resolution. 2. Carlsbad Police Officers' Association: Beginning Jan. 1, 2020, the city will provide represented employees with a short-term disability insurance plan, a modified long-term disability insurance plan, and a modified life and AD&D insurance plan. Articles 30 and 40 of the CPOA MOU will be replaced in their entirety. Article 47 will be added to CPOA MOU. The Side Letter modifying the MOU language is included as Attachment B to the Resolution. 3. Carlsbad City Employees' Association: Beginning Jan. 1, 2020, the city will discontinue represented employees' enrollment in the State Disability Insurance Program and replace the insurance with a short-term disability insurance plan and a modified long-term disability plan and provide a modified life and AD&D insurance plan. Articles 35, 36, and 51 will be replaced in their entirety and Article 57 will be added to the CCEA MOU. The Side Letter modifying the MOU language is included as Attachment C to the Resolution. 4. Carlsbad Firefighters' Association, Inc.: Beginning Jan. 1, 2020, the city will provide represented employees with a short-term disability insurance plan and a modified life and AD&D insurance plan. Represented employees will retain their current long term insurance plan. Articles 10 and 36 will be replaced in their entirety. Article 43 will be added to the CFA MOU. The Side Letter modifying the MOU language is included as Attachment D to the Resolution. 5. Management Compensation and Benefits Plan: Beginning Jan. 1,. 2020, the city will provide all full time, management employees with a short-term disability insurance plan, a modified long-term disability insurance plan, and a modified life and AD&D insurance plan. The revised Management Compensation and Benefits Plan is included as Attachment E to the Resolution. Dec. 10, 2019 Item #1 Page 2 of 38 Fiscal Analysis The estimated annual cost of revising the short-term disability insurance and long-term disability insurance as of Jan. 1, 2020 is $88,000. The total estimated impact to the fiscal year (FY) 2019-20 Operating Budget is $44,000. Staff is requesting a transfer of $44,000 from the City Council's contingency budget in the General Fund to cover the estimated fiscal impact to the current fiscal year. The total estimated annual impact of the paid family leave benefit is dependent on how many employees request leave per year and if the affected departments need to hire temporary staff or backfill hours with overtime from other employees during the employee's absence. Staff is estimating this annual additional cost to be from $0 to $260,000 per FY. Since the annual cost of this benefit is difficult to predict, staff will monitor the fiscal impact of this enhanced benefit for the remainder of FY 2019-20 and request additional funds, if needed, closer to the end of the FY. There is no fiscal impact related to the changes to group life insurance or AD&D insurance. Funding for changes listed above that occur in future FYs will be included in subsequent adopted budgets. Next Steps Staff will implement the changes to the CPMA, CPOA, CCEA, and CFA MOUs, and to the Management Compensation and Benefits Plan as shown in Attachments A, B, C, D, and E to the City Council Resolution. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment; and therefore, does not require environmental review. Public Notification This item was npticed in accordance with the Ralph M. Brown Act and was available for viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council Resolution 2. Amended sections of the Management Compensation and Benefits Plan 3. Administrative Order No. 84 Dec. 10, 2019 Item #1 Page 3 of 38 RESOLUTION NO. 2019-245 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING MEMORANDUMS OF UNDERSTANDING (MOUS) BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD POLICE MANAGEMENT ASSOCIATION (CPMA), CARLSBAD POLICE OFFICERS' ASSOCIATION (CPOA), CARLSBAD CITY EMPLOYEES' ASSOCIATION (CCEA), AND CARLSBAD FIREFIGHTERS' ASSOCIATION, INC. (CFA) AND A REVISED MANAGEMENT COMPENSATION AND BENEFITS PLAN. WHEREAS, the City of Carlsbad and the Carlsbad Police Management Association (CPMA), the Carlsbad Police Officers' Association (CPOA), the Carlsbad City Employees' Association (CCEA), and the Carlsbad Firefighters' Association, Inc. (CFA) have met and conferred in good faith pursuant to the Meyers-Milias-Brown Act regarding benefits and other terms and conditions of employment; and WHEREAS, said representatives have reached agreement which they desire to submit to the City Council for consideration and approval; and WHEREAS, the City Council of the City of Carlsbad, California has determined the need to accept such agreements in the form of a CPMA side letter (Attachment A), a CPOA side letter (Attachment B), a CCEA side letter (Attachment C), and a CFA side letter (Attachment D). WHEREAS, the City Council has determined it to be in the public interest to accept the revised Management Compensation and benefits Plan (Attachment E) NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Attachment A, the side letter between CPMA and the City of Carlsbad, attached hereto is hereby adopted by the City Council and the city manager is directed to execute it. 3. That Attachment B, the side letter between CPOA and the City of Carlsbad, attached hereto is hereby adopted by the City Council and the city manager is directed to execute it. 4. That Attachment C, the side letter between CCEA and the City of Carlsbad, attached hereto is hereby adopted by the City Council and the city manager is directed to execute it. Dec. 10, 2019 Item #1 Page 4 of 38 5. That Attachment D, the side letter between CFA and the City of Carlsbad, attached hereto is hereby adopted by the City Council and the city manager is directed to execute it. 6. That Attachment E, the revised Management Compensation and Benefits Plan attached hereto is hereby adopted by the City Council and the city manager is directed to execute it. 7. That the deputy city manager-administrative services is authorized to transfer $44,000 from the City Council Contingency budget in the General Fund to cover the increase for FY 2019-20 in short-term and long-term disability insurance payments. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 10th day of December 2019, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. ~/lectrL&t:,ma, /Je;w:_v ~ENfilESON, City Clerk Cr I C.'t'o< (SEAL) Dec. 10, 2019 Item #1 Page 5 of 38 SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD POLICE MANAGEMENT ASSOCIATION AND THE CITY OF CARLSBAD Attachment A RELATED TO DISABILITY INSURANCE AND PAID FAMILY LEA VE The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad Police Management Association (hereinafter referred to as the "CPMA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January 1, 2019 and terminating on December 31, 2021. The city and the CPMA are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's disability insurance benefits and paid family leave benefits for employees and clarifies that beginning January 1, 2020 the city will provide short-term disability insurance for represented employees that provides a benefit for an employee's own short-term injury/illness. In addition, per Administrative Order No. 84, the city will provide eligible employees with 160 hours per year of paid family leave to take care of a family member or to bond with a new child. Finally, this agreement relates to revisions to the city-sponsored long-term disability insurance, life insurance and accidental death & dismemberment (AD&D) insurance. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA"). Based on the above, the city has proposed and the CPMA has agreed to modify the provisions in the MOU prospectively that relate to the abovementioned benefits. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CPMA remain in full force and effect. The Parties mutually agree to add Article 39 and replace Articles 18.5, 21 and 30 in their entirety with the following: 18.5 Accidental Death & Dismemberment (AD&D) Insurance Effective January 1, 2020, all CPMA-represented employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000. To determine the benefit, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. CPMA employees may also choose to enroll in or opt out of the city-sponsored voluntary Accidental Death & Dismemberment (AD&D) insurance plan at any coverage level. Dec. 10, 2019 Item #1 Page 6 of 38 ARTICLE 21. SHORT-TERM AND LONG-TERM DISABILITY INSURANCE Short-Term Disability Effective January 1, 2020, the city agrees to provide represented employees with short-term disability insurance via an insurance provider and to pay the premium. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short- term disability benefits shall be provided at 60°/o of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Long-Term Disability The city agrees to continue to provide long term disability insurance and to pay the premium. Prior to January 1, 2020, the insurance shall provide for a thirty (30) calendar day waiting period prior to payment eligibility and the long-term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $100,000. Effective January 1, 2020, the waiting period prior to payment eligibility shall be ninety (90) calendar days and the long-term disability benefits shall be provided at 66 2/3% of the employee's pre- disability base salary, up to a maximum base salary of $150,000. Use of Accrued Paid Time Off While Receiving Disability Benefits The employee shall use their accrued paid time off(e.g., vacation, sick leave) during the disability insurance waiting period. The employee shall combine accrued paid time off, except for accrued sick leave, with short-term and long-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the disability payments. Transition/Continuation of Benefits for Employees on a Short-Term or Long-Term Disability Leave of Absence as of December 31, 2019 An employee who is on a short-term or long-term disability leave of absence as of December 31, 2019 (including an intermittent leave), will be converted to short-term and/or long-term coverage with the city's new disability insurance provider as of January 1, 2020 without having to repeat the waiting period. ARTICLE 30. LIFE INSURANCE AND VO LUNT ARY BENEFITS All represented employees shall receive city paid life insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000. 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. Dec. 10, 2019 Item #1 Page 7 of 38 ARTICLE 39. PAID FAMILY LEAVE Effective January 1, 2020, per Administrative Order No. 84, all CPMA-represented employees will be eligible for 160 homs per year of paid family leave to care for an immediate family member or bond with a new child. CITY OF CARLSBAD: Date: Date: \t / 1 z.-} tl] Date: ~ lJ l)'-.1,.\q GREG KORAN, PRESIDENT, CARLSBAD POLICE MANAGEMENT ASSOCIATION · CHADWICK, CITY MANAGER, CITY OF CARLSBAD Dec. 10, 2019 Item #1 Page 8 of 38 SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD POLICE OFFICERS' ASSOCIATION AND THE CITY OF CARLSBAD Attachment B RELATED TO DISABILITY INSURANCE AND PAID FAMILY LEAVE The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad Police Officers' Association (hereinafter referred to as the "CPOA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January I, 2019 and terminating on December 31, 2021. The city and the CPOA are collectively refe1Ted to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's disability insurance benefits and paid family leave benefits for employees and clarifies that beginning January I, 2020 the city will provide short-term disability insurance for represented employees that provides a benefit for an employee's own short-term injury/illness. In addition, per Administrative Order No. 84, the city will provide eligible employees with 160 hours per year of paid family leave to take care of a family member or to bond with a new child. Finally, this agreement relates to revisions to the city-sponsored long-term disability insurance, life insurance and accidental death & dismemberment (AD&D) insurance. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA"). Based on the above, the city has proposed and the CPOA has agreed to modify the provisions in the MOU prospectively that relate to the abovementioned benefits. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CPOA remain in full force and effect. The Parties mutually agree to add Article 47 and replace Articles 30 and 40 in their entirety with the following: ARTICLE 30. SHORT-TERM AND LONG-TERM DISABILITY INSURANCE Short-Term Disability Effective January I, 2020, the city agrees to provide represented employees with short-term disability insurance via an insurance provider and to pay the premium. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short- term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Dec. 10, 2019 Item #1 Page 9 of 38 Attachment B Long-Term Disability The city agrees to continue to provide long term disability insurance and to pay the premium. Prior to January 1, 2020, the insurance shall provide for a thirty (30) calendar day waiting period prior to payment eligibility and the long-term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $100,000. Effective January 1, 2020, the waiting period prior to payment eligibility shall be ninety (90) calendar days and the long-term disability benefits shall be provided at 66 2/3% of the employee's pre- disability base salary, up to a maximum base salary of $150,000. Use of Accrued Paid Time Off While Receiving Disability Benefits The employee shall use their accrued paid time off ( e.g., vacation, sick leave) during the disability insurance waiting period. The employee shall combine accrued paid time off, except for accrued sick leave, with short-term and long-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the disability payments. Transition/Continuation of Benefits for Employees on a Short-Term or Long-Term Disability Leave of Absence as of December 31, 2019 An employee who is on a short-term or long-term disability leave of absence as of December 31, 2019 (including an intermittent leave), will be converted to short-term and/or long-term coverage with the city's new disability insurance provider as of January 1, 2020 without having to repeat the waiting period. ARTICLE 40. LIFE/ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE AND VOLUNTARY BENEFITS All CPOA-represented employees shall receive city paid life insurance in an amount equal to their base salary up to a maximum base salary of $200,000. To determine the benefit, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Effective January 1, 2020, all CPOA-represented employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to their base salary up to a maximum base salary of $200,000. To determine the benefit, 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. ARTICLE 47. PAID FAMILY LEAVE Effective January 1, 2020, per Administrative Order No. 84, all CPO A-represented employees will be eligible for 160 hours per year of paid family leave to care for an immediate family member or bond with a new child. Dec. 10, 2019 Item #1 Page 10 of 38 CITY OF CARLSBAD: Date: / I -a -11 Date: l l { l 2-/ / 0t Date: \lebtt l'-) MA TI LOWE, PRESIDENT, CARLSBAD POLICE OFFICERS' ASSOCIATION HUMAN RESOURCES SBAD CHA WICK, CITY MANAGER, CITY OF CARLSBAD Dec. 10, 2019 Item #1 Page 11 of 38 Attachment C SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD CITY EMPLOYEES' ASSOCIATION AND THE CITY OF CARLSBAD RELATED TO DISABILITY INSURANCE AND PAID FAMILY LEAVE The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad City Employees' Association (hereinafter referred to as the "CCEA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January I, 2018 and terminating on December 31, 2020. The city and the CCEA are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's disability insurance benefits and paid family leave benefits for employees and clarifies that beginning January 1, 2020 the city will discontinue enrollment in the State Disability Insurance program. Instead, effective January 1, 2020, the city will provide short-term disability insurance for represented employees that provides a benefit for an employee's own short-term injury/illness. In addition, per Administrative Order No. 84, the city will provide eligible employees with 160 hours per year of paid family leave to take care of a family member or to bond with a new child. Finally, this agreement relates to revisions to the city-sponsored long-term disability insurance, life insurance and accidental death & dismemberment (AD&D) insurance. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA"). Based on the above, the city has proposed and the CCEA has agreed to modify the provisions in the MOU prospectively that relate to the abovementioned benefits. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CCEA remain in full force and effect. The Parties mutually agree to add Article 57 and replace Articles 35, 36 and 51 in their entirety with the following: Article 35 Short Term Disability Insurance A. Employees represented by CCEA will be enrolled in the State Disability Insurance (SDI) Program through December 31, 2019. (The City agrees to pay the premium.) B. On January 1, 2004, the State Disability Insurance Program will provide for paid leave benefits for employees who qualify for family medical leaves of absence. The employee may elect to use accumulated vacation, sick leave or compensatory time off during the seven day elimination period. Dec. 10, 2019 Item #1 Page 12 of 38 Attachment C C. Employees represented by CCEA shall be entitled to combine accumulated sick leave, vacation leave or comp time with State Disability 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. Under no circumstances shall the combination of accumulated leave and State Disability Insurance payments exceed the employee's pre-disability salary. Effective January 1, 2020, the city will discontinue enrollment in the State Disability Insurance program. Effective January 1, 2020, the city agrees to continue to provide short-term disability insurance via an insurance provider. The city agrees to pay the premium. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short- term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. The employee shall use their accrued paid time off ( e.g., vacation, sick leave) during the disability insurance waiting period. Employees may elect to combine accrued paid time off, except for accrued sick leave, with short-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the short-term disability payments. Transition/Continuation of Benefits for Employees on a Short-Term Disability or Paid Family Leave of Absence as of December 31, 2019 An employee who is on a short-term disability leave of absence (including an intermittent leave) as of December 31, 2019, will be converted to coverage with the city's new short- term disability insurance provider as of January 1, 2020 without having to repeat the elimination period. An employee who is on a paid family leave of absence as of December 31, 2019 will have their paid family leave benefits converted to those benefits described in Administrative Order No. 84 as of January 1, 2020. In this situation ( conversion of a paid family leave that started prior to January 1, 2020 and will continue on or after January 1, 2020), the number of hours of paid family leave for which an employee was paid from SDI in the prior calendar year will count towards the 160 hours per year of paid family leave the employee may receive under the city's new paid family leave program. Article 36 Long Term Disability Insurance (LTD) During the term of this memorandum, city agrees to continue to provide city-paid long term disability insurance. This insurance shall provide for a ninety (90) calendar day waiting period prior to payment eligibility. The employee shall use their accrued paid time off (e.g., vacation, sick leave) during the disability insurance waiting period. Employees shall combine accrued paid time off, except for accrued sick leave, with LTD payments for the purpose of achieving the equivalent of their base salary. Prior to January 1, 2020, long-term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $100,000. Effective Dec. 10, 2019 Item #1 Page 13 of 38 January 1, 2020, long-tenn disability benefits shall be provided at 66 2/3% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Transition/Continuation of Benefits for Employees on a Long-Tenn Disability Leave of Absence as of December 31. 2019 An employee who is on a long-tenn disability leave of absence (including an intermittent leave) as of December 31, 2019, will be converted to coverage with the city's new long- term disability insurance provider as of January 1, 2020 without having to repeat the elimination period. Article 51 Life/Accidental Death and Dismemberment (AD&D) Insurance and Voluntary Benefits All CCEA-represented employees shall receive city paid life insurance in an amount equal to their base salary up to a maximum base salary of $200,000. To detennine the benefit, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Effective January 1, 2020, all CCEA-represented employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to their base salary up to a maximum base salary of$200,000. To detennine the benefit, 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 infonnation regarding these benefits, contact the Human Resources Department at 760-602-2440. Article 57 Paid Family Leave Effective January I, 2020, per Administrative Order No. 84, all CCEA-represented employees will be eligible for 160 hours per year of paid family leave to care for an immediate family member or bond with a new child. CITY OF CARLSBAD: Date: ro / 30l 19 Date: ( ~bt/J~ SCOTT CHADWICK, CITY MANAGER, CITY OF CARLSBAD Dec. 10, 2019 Item #1 Page 14 of 38 SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD FIREFIGHTERS' ASSOCIATION, INC. AND THE CITY OF CARLSBAD Attachment D RELATED TO DISABILITY INSURANCE AND PAID FAMILY LEA VE The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad Firefighters' Association, Inc. (hereinafter referred to as the "CF A") entered into a Memorandum of Understanding ("MOU") with a term beginning on January 1, 2017 and terminating on December 31, 2019. The city and the CFA are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's disability insurance benefits and paid family leave benefits for employees and clarifies that beginning January 1, 2020 the city will provide short-term disability insurance for represented employees that provides a benefit for an employee's own short-term injury/illness. In addition, per Administrative Order No. 84, the city will provide eligible employees with 160 hours per year of paid family leave to take care of a family member or to bond with a new child. Finally, this agreement relates to revisions to the city-sponsored life insurance and accidental death & dismemberment (AD&D) insurance. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA"). Based on the above, the city has proposed and the CF A has agreed to modify the provisions in the MOU prospectively that relate to the abovementioned benefits. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CFA remain in full force and effect. The Parties mutually agree to add Article 43 and replace Articles 10 and 36 in their entirety with the following: ARTICLE 10. SHORT-TERM AND LONG-TERM DISABILITY INSURANCE Short-Term Disability Effective January I, 2020, the city agrees to provide represented employees with short-term disability insurance via an insurance provider and to pay the premium. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short- term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Dec. 10, 2019 Item #1 Page 15 of 38 Attachment D Long-Term Disability The city will contract with a mutually agreed upon insurance company to provide long term disability insurance for all represented employees and the city will pay the premium. For information about this benefit, contact the Human Resources Department at 760-602-2440. Use of Accrued Paid Time Off While Receiving Disability Benefits The employee shall use their accrued paid time off ( e.g., vacation, sick leave) during the disability insurance waiting period. The employee shall combine allowable types of accrued paid time off with short-term and long-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the disability payments. Accrued sick leave may not be combined with short-term disability payments. Refer to the long-term disability plan document for information on which types of accrued paid time off may be combined with long- term disability payments. Transition/Continuation of Benefits for Employees on a Short-Term Disability Leave of Absence as of December 31, 2019 An employee who is on a short-term disability leave of absence as of December 31, 2019 (including an intermittent leave), will be converted to short-term coverage with the city's new disability insurance provider as of January 1, 2020 without having to repeat the waiting period. ARTICLE 36. LIFE/ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE AND VOLUNTARY BENEFITS All CF A-represented employees shall receive city paid life insurance in an amount equal to their base salary up to a maximum base salary of $200,000. To determine the benefit, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Effective January 1, 2020, all CF A-represented employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to their base salary up to a maximum base salary of $200,000. To determine the benefit, 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. ARTICLE 43. PAID FAMILY LEAVE Effective January 1, 2020, per Administrative Order No. 84, all CF A-represented employees will be eligible for 160 hours per year of paid family leave to care for an immediate family member or bond with a new child. Dec. 10, 2019 Item #1 Page 16 of 38 CITY OF CARLSBAD: Date: Date: \lot:t:t0 HADWICK, CITY MANAGER, CITY OF CARLSBAD Dec. 10, 2019 Item #1 Page 17 of 38 Attachment E MANAGEMENT COMPENSATION AND BENEFITS PLAN TABLE OF CONTENTS Section 1 Section 2 Section 3 Introduction ............................................................................ Page 2 Compensation ........................................................................ Page 2 Pay Ranges ....................................................................... Page 2 Compensation Adjustments ............................................ Page 3 Survey Market. ................................................................. Page 3 Benefits and Other Types of Pay ........................................... Page 4 Life/ Accidental Death and Dismemberment (AD&D) Insurance and Voluntary Benefits .................... Page 4 Retirement ........................................................................ Page 4 Leave of Absence ............................................................. Page 5 1. Vacation .............................................................. Page 6 2. Executive Leave ................................................. Page 7 3. Sick Leave .......................................................... Page 7 4. Bereavement Leave ............................................ Page 8 5. Leave Without Pay ............................................. Page 8 6. Pregnancy Disability Leave ................................ Page 9 7. FMLA ................................................................. Page 10 8. Military Leave .................................................... Page 10 9. Jury Duty ............................................................ Page 10 10. Extended Leave of Absence ............................... Page 10 Separation Compensation ................................................ Page 11 Holidays ........................................................................... Page 11 Health Benefits ................................................................. Page 12 Health Insurance for Retirees ........................................... Page 13 Physical Fitness Reimbursement ..................................... Page 14 Short-Term and Long-Term Disability Insurance (LTD)Page 14 Paid Family Leave ........................................................... Page 15 Deferred Compensation ................................................... Page 15 Drug and Alcohol Policy ................................................. Page 15 Uniform Reimbursement and Reporting the Value of Uniforms to CalPERS .................................................. Page 15 Fire Safety Management .................................................. Page 15 Special Assignment and Temporary Upgrade Pay .......... Page 16 Educational Incentive Pay ................................................ Page 17 Dec. 10, 2019 Item #1 Page 18 of 38 Management Compensation and Benefits Plan SECTION 1: INTRODUCTION The Management Compensation and Benefits Plan contains three parts: 1) an introduction, 2) an overview of compensation and 3) a description of benefits for management employees. 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. City Council Appointed Employees -The City Manager and City Attorney are hired by and responsible directly to the City Council. The salaries for these positions shall be set by the City Council. The City Manager and City Attorney will not be subject to the provisions of the Compensation program as outlined in Section 2 of this document. The schedule of management benefits (as outlined in Section 3 of this document) will apply to these positions, except as otherwise provided by the City Council. SECTION 2: COMPENSATION Pay Ranges Each management job classification is assigned to a specific pay range. An employee may be paid anywhere in the pay range associated with their job classification. Any employee may be advanced in the pay range regardless of the length of time served at the employee's present pay rate. This advancement requires the written recommendation of the employee's manager and the approval of the employee's department head and City Manager (or City Attorney, for management employees in the City Attorney's Office)1• If, as a result of a pay range adjustment, an employee's base salary falls below the minimum of the pay range, the employee's salary will be increased to the new range minimum as of the date City Council approves the pay range adjustment. Periodically the Human Resources Department will bring forth salary range movement recommendations to City Council that are based on market and economic conditions, and may include one or more salary ranges. 1 Hereafter, all references to the City Manager include, with regard to management employees in the City Attorney's Office, the City Attorney. 2 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 19 of 38 Management Compensation and Benefits Plan Compensation Adiustments Effective January 1, 2020, all management employee salaries will be increased by three percent (3%). As a result, all management salary ranges will be adjusted to reflect this increase. An employee's salary may not exceed the maximum of the pay range for their classification. Survey Market In keeping with the City Council's philosophy of surveying the total compensation oflocal agencies, the agencies listed below will be considered in the survey market for management classifications. • City of Chula Vista • City of Coronado • City of Del Mar • City of El Cajon • City of Encinitas • City of Escondido • City of Imperial Beach • City of La Mesa • City of National City • City of Oceanside • City of Poway • City of San Marcos • City of Solana Beach • City of San Diego • City of Santee • City of Vista • County of San Diego In addition to the agencies listed above, the following agencies will be considered in the survey market only for Utilities Director, Utilities Manager and Utilities Supervisor classifications. • Encina Wastewater Authority • Helix Water District • Olivenhain Municipal Water District • Otay Water District • Padre Dam Municipal Water District • Vallecitos Water District • Vista Irrigation District The Human Resources Department will compare salary and benefits information on each City of Carlsbad benchmark classification with appropriate classifications in the survey market. Those classifications that are considered benchmarks are those in which there was a substantial match between the competencies and duties required for jobs at the City of Carlsbad and those for jobs in the survey market. Each City of Carlsbad job classification is assigned to a specific pay range. The non-benchmark positions are assigned to a pay range based on internal relationships, responsibility and/or 3 Revised 11/ 12/ 19 Dec. 10, 2019 Item #1 Page 20 of 38 Management Compensation and Benefits Plan knowledge, skills and abilities of jobs. The benchmark salary data will be surveyed regularly and the benchmark comparisons will be modified when the classifications change within the organization. The City Council delegates to the City Manager the authority to create and change job classifications and assign job classifications to a specific pay range, based on both benchmark salary information and internal relationships within the organization. SECTION 3: BENEFITS AND OTHER TYPES OF PAY Life/Accidental Death and Dismemberment (AD&D) Insurance and Voluntary Benefits All management employees shall receive city-paid life insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000. To determine benefits, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Effective January 1, 2020, all management employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000. To determine the benefit, 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. Retirement All management employees shall participate in the California Public Employees' Retirement System (CalPERS). The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the CalPERS system. Optional benefits unique to the City of Carlsbad's contract with CalPERS are outlined in the 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 (and are the same as those provided to employees represented by the Carlsbad Firefighters' Association, Inc.). Unrepresented sworn 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 (and are the same as those provided to employees represented by the Carlsbad Police Officers' Association). A. The City has contracted with CalPERS for the following retirement benefits: Miscellaneous "Classic" Members (those that do not qualify as "New Members" as defined below) 4 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 21 of 38 Management Compensation and Benefits Plan a) Employees entering City of Carlsbad miscellaneous CalPERS membership for the first time prior to November 28, 2011 -The retirement formula shall be 3%@ 60; single highest year final compensation. b) Employees entering City of Carlsbad miscellaneous CalPERS membership for the first time on or after November 28, 2011 -The retirement formula shall be 2%@ 60; three year average final compensation. c) Employees entering City of Carlsbad safety CalPERS membership for the first time prior to October 4, 2010 -The retirement formula shall be 3% @50; single highest year final compensation. d) Employees entering City of Carlsbad safety CalPERS membership for the first time on or after October 4, 2010 -The retirement formula shall be 2%@ 50; three year average final compensation. "New Members" Employees who are "New Members" as defined by the California Public Employees' Pension Reform Act of2013 (PEPRA) (e.g., an employee hired on or after 1/1/2013 who has never been a CalPERS member or member of a reciprocal system or who has had a break in CalPERS service of at least 6 months or more) will be subject to all the applicable PEPRA provisions, which include but are not limited to 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. B. Employee Retirement Contribution The employee retirement contribution will be made on a pre-tax basis by implementing provisions of section 4 l 4(h)(2) of the Internal Revenue Code (IRC). Employees shall make the following employee retirement contributions through payroll deductions: • • • • Leave of Absence miscellaneous employees subject to the 3%@ 60 benefit formula shall pay all of the employee retirement contribution (8% ), miscellaneous employees subject to the 2% @ 60 benefit formula shall pay all of the employee retirement contribution (7% ), safety employees subject to the 3%@ 50 or 2%@ 50 benefit formulas shall pay all of the employee retirement contribution (9% ), and miscellaneous and safety employees who meet the definition of"New Member" under PEPRA shall pay one half of the normal cost rate associated with their benefit plan. Management employees are exempt from overtime requirements under the Fair Labor Standards Act. 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 5 Revised I 1/12/19 Dec. 10, 2019 Item #1 Page 22 of 38 Management Compensation and Benefits Plan practice of requiring its employees to be accountable to the public that they have earned their salaries. A partial day absence is an absence ofless 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. 1. Vacation a. Vacation Accrual Revised 11/12/19 Every management employee shall accrue vacation leave for each calendar year of actual continuous service dating from the commencement of said service, with such time to be accrued on a daily ( calendar day) basis. Vacation leave can be used in 15 minute increments. All management employees (except Fire Battalion Chiefs) shall earn vacation on the following basis: Beginning with the first (1st) working day through the completion of five (5) full calendar years of continuous service -13 minutes/day. Beginning the sixth (6th) year of employment through the completion often (10) full calendar years of continuous service -20 minutes/day. Beginning the eleventh (11th) year of employment through the completion of eleven (11) full calendar years of continuous service -21 minutes/day. Beginning 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 may be granted credit for such service for the purpose of computing vacation at the discretion of the City Manager. All management employees shall be permitted to earn and accrue up to and including three hundred and twenty (320) hours of vacation, and no employee will be allowed to earn and accrue vacation hours in excess of the three hundred and twenty (320) hour maximum.* The City Manager shall be responsible for the granting of vacation 6 Dec. 10, 2019 Item #1 Page 23 of 38 Management Compensation and Benefits Plan to all management personnel, except in the case of the City Attorney's Office, where the City Attorney shall be responsible for granting vacation. * If there are unusual circumstances that would require an employee to exceed the vacation accrual maximum, he/she must submit a request in writing to the Department Head and the City Manager 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. Fire Battalion Chiefs shall accrue vacation in the same manner and up to the same maximum as Carlsbad Firefighters' Association (CF A) represented employees. b. Vacation Conversion Each February, management employees will be allowed to voluntarily convert up to 80 hours of accrued vacation to cash, provided that they have used 80 hours of vacation, executive time or floating holiday during the prior calendar year. Fire Battalion Chiefs that work 112 hours per bi-weekly pay period will be allowed to voluntarily convert up to 112 hours of accrued vacation to cash, provided that they have used 112 hours of vacation, executive time or floating holiday during the prior calendar year. c. Vacation Payout An employee separating from the City service who has a balance of unused accrued vacation leave shall be entitled to be paid for the remainder of their unused accrued vacation leave as of their last day on payroll. 2. Executive Leave (E-time) Effective July 1, 2018, all management personnel shall receive sixty-four (64) hours per fiscal year for executive leave. The sixty-four ( 64) hours will be credited upon hire or promotion into management and 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. 3. Sick Leave Sick leave can be used in 15 minute increments. Sixteen ( 16) minutes of sick leave are accrued 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 accrue sick leave commensurate with CFA represented employees that work at 112 hours per bi-weekly pay period. Any management employee who has accrued and maintains a minimum of one hundred (100) hours of sick leave shall be permitted to convert up to twelve (12) days of sick leave 7 Revised 1 I /12/19 Dec. 10, 2019 Item #1 Page 24 of 38 Management Compensation and Benefits Plan and uncompensated sick leave to vacation at a ratio of three (3) sick leave days per one (1) day of vacation. The sick leave conversion option will be provided during the first week of each fiscal year. Conversion can only be made in increments of full day vacation days. Employees will not be allowed to convert sick leave to vacation if such conversion would put them over the vacation accrual maximum. Any permanent employee applying for retirement with the Public Employees' Retirement System may convert accrued and unused sick leave time to extend service time in the system at the ratio of twenty-five (25) days of accrued sick leave to one month of extended service. 4. 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 accrued leave is available, treated as leave without pay. The "immediate family" shall be defined in the personnel rules and regulations. The employee may be required to submit proof of relative' s death before final approval of bereavement leave is granted. 5. 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 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 return to his/her position in the City service. 3. For personal reasons acceptable to the City Manager and Department Head. b. Authorization Procedure Revised 11112/19 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 return, and the agreement to reimburse the City for any benefit premiums paid by the City during the leave of absence. The request shall normally be initiated by the employee, but may be initiated by his/her Department Head, and, 8 Dec. 10, 2019 Item #1 Page 25 of 38 Management Compensation and Benefits Plan 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. d. Return From Leave When an employee intends to return from an authorized leave of absence without pay either before or upon the expiration of such leave, he/she shall contact his/her Department Head at least fourteen (14) calendar days prior to the day he/she plans to return. The Department Head shall promptly notify the Human Resources Department of the employee's intention. The employee shall return at a rate of pay not less than the rate at the time the leave of absence began. e. 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 return 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 employees (e.g., holiday pay), unless required by law. 6. 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 accrued sick leave and vacation time and leave without pay to take a leave for a reasonable period of time, not to exceed four months. An employee shall utilize all accrued leave prior to taking leave without pay. Reasonable period of time means 9 Revised I I /12/19 Dec. 10, 2019 Item #1 Page 26 of 38 Management Compensation and Benefits Plan 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. 7. 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. 8. Military Leave Military leave shall be authorized in accordance with the provisions of State and Federal law. The employee must furnish satisfactory proof to his/her Department Head, as far in advance as possible, that he/she must report to military duty. 9. 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 onjury 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. 10. Extended Leave of Absence Upon completion of 84 consecutive calendar days (12 weeks) ofleave of absence (paid or unpaid and except when leave is ordered by the city or when an employee is on an active duty military leave) or completion of a leave of absence related to Section 4850 of the Labor Code, whichever occurs later, an employee will not be eligible for the benefits listed below: • accrual of sick leave and vacation, 10 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 27 of 38 Management Compensation and Benefits Plan • cell phone allowance, • car allowance and • holiday pay for Fire Battalion Chiefs. On the day that the employee returns to work from the extended leave of absence, the employee will resume eligibility for the abovementioned benefits and the employee's vacation anniversary date and seniority (calculation of continuous service with the City) will be adjusted for each calendar day the leave of absence lasted beyond 84 consecutive calendar days or the completion of a leave of absence related to Section 4850 of the Labor Code, whichever was longer. 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 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 scheduled paid holidays that will be official City holidays shall be as follows: New Year's Day Martin Luther King's Birthday Presidents' Day Memorial Day Independence Day Labor Day Columbus Day Veteran's Day Thanksgiving Day Thanksgiving Friday Christmas Day Only employees who are on employed status on their last scheduled work day before a holiday shall be entitled to the paid holiday except where otherwise required by law. Effective July 1, 2019, all management employees will receive two floating holidays per fiscal year, each year on July 1st. The floating holiday may be used at the discretion of the employee with prior approval of the employee's supervisor. The floating holiday must be taken as a full day off. There is no partial day use of a floating holiday. The floating holiday pay is paid at straight time equal to the number of hours in the employee's regular work shift on that day. Unused floating holidays will not carry over to the next fiscal year and will not paid out upon separation of employment. 11 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 28 of 38 Management Compensation and Benefits Plan Health Benefits Management employees will participate in a flexible benefits program which includes medical insurance, dental insurance, vision insurance, flexible spending accounts (FSAs) and Accidental Death & Dismemberment insurance (AD&D). Each of these components is outlined below. 1. Medical Insurance Management employees will be covered by the Public Employees' Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the California Public Employees' Retirement System (CalPERS) Health Program. The City will pay on behalf of all management employees and their eligible dependents and those retirees mentioned in the section of this document titled, "Health Insurance for Retirees," the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees' Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. Effective January 1, 2018, 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) dental premiums 4) vision premiums and/or 5) accidental death and dismemberment (AD&D) premiums: (a) (b) (c) For employees with "Employee" coverage, the City shall contribute five hundred seventy-three ($573) per month that shall include the mandatory payments to CalPERS. If the actual total premiums exceed the City's total contributions, the employee will pay the difference. For employees with "Employee Plus One" coverage, the City shall contribute one thousand one hundred forty-six dollars ($1,146) per month that shall include the mandatory payments to CalPERS. If the actual total premiums exceed the City's total contributions, the employee will pay the difference. For employees with "Family" coverage, the City shall contribute one thousand five hundred two dollars ($1,502) 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. Subsequently, effective January 1 of each calendar year, the City monthly Benefits Credits will change for each coverage level. The monthly Benefits Credits will be set to dollar amounts that equate to 80% of the average health (medical, dental and vision) premium for Employee, Employee Plus One and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income. If the amount contributed by the City (Benefits Credits) exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any "excess credits" to purchase dental, vision, or accidental death and dismemberment (AD&D) 12 Revised l l /12/19 Dec. 10, 2019 Item #1 Page 29 of 38 Management Compensation and Benefits Plan insurance or to contribute to a healthcare or dependent care flexible spending account (FSA), instead of receiving taxable cash. All management employees who work three quarter-time or less will receive prorated Benefits Credits. 2. Dental Insurance Management employees will be eligible to enroll in or waive enrollment in a City-sponsored dental plan at any coverage level. 3. Vision Insurance Management employees will be eligible to enroll in or waive enrollment in a City-sponsored vision insurance plan at any coverage level. 4. Waiver Provision Management employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the City's medical insurance program, provided they can show that they are covered under another group insurance program. The dollar amount paid by the City for employees who elect the waiver provision may change in the first pay period of each calendar year. The Benefits Credits associated with waiving medical coverage will be set equal to 50% of the Benefits Credits associated with Employee medical coverage. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income. Health Insurance for Retirees Effective January 1, 2001, management employees will be covered by the Public Employees' Medical and Hospital Care Act and will be eligible to participate in the California Public Employees' Retirement System (CalPERS) Health Program. Management employees who retire from the City, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of retirement is within 120 days of separation. The City will contribute the minimum amount per month required under Government Code Section 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 elect, upon retirement to participate in the City's dental and/or vision insurance programs as a retiree. The cost of such dental and/or vision insurance for the retiree and eligible dependents shall be borne solely 13 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 30 of 38 Management Compensation and Benefits Plan by the retiree. An individual who does not choose coverage upon retirement, or who chooses coverage and later drops it is not eligible to return to the City's dental and vision insurance program. 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. Physical Fitness Reimbursement All management employees shall be eligible for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal year for the costs associated with physical fitness. Each employee claiming reimbursement shall be required to submit original receipts to the Human Resources department for approval and reimbursement. The physical fitness reimbursement is offered to management employees to promote optimum health. Services include, but are not limited to: health assessment testing and examinations, computerized heart risk profile, complete blood profile, fees paid to physical fitness providers, nutritional assessment and diet program. Short-Term and Long-Term Disability Insurance Short-Term Disability Effective January 1, 2020, short-term disability insurance is available for all management employees and the insurance premium is paid by the city. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short-term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of$150,000. Long-Term Disability Long-term disability is available for all management employees and the insurance premium is paid by the city. Effective January 1, 2020, the waiting period prior to payment eligibility shall be ninety (90) calendar days and the long-term disability benefits shall be provided at 66 2/3% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Use of Accrued Paid Time Off While Receiving Disability Benefits The employee shall use their accrued paid time off ( e.g., vacation, sick leave) during the disability insurance waiting period. The employee shall combine accrued paid time off, except for accrued sick leave, with short-term and long-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the disability payments. Transition/Continuation of Benefits for Employees on a Short-Term or Long-Term Disability Leave of Absence as of December 31, 2019 An employee who is on a short-term or long-term disability leave of absence as of December 31, 2019 (including an intermittent leave), will be converted to short-term and/or long-term coverage with the city's new disability insurance provider as of January 1, 2020 without having to repeat the waiting period. 14 Revised 11/ 12/ 19 Dec. 10, 2019 Item #1 Page 31 of 38 Management Compensation and Benefits Plan Paid Family Leave Effective January 1, 2020, per Administrative Order No. 84, all management employees will be eligible for 160 hours per year of paid family leave to care for an immediate family member or bond with a new child. 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. It 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. Drug and Alcohol Policy It is the policy of the City of Carlsbad to provide a work environment free from the effects of drugs and alcohol consistent with the directives of the Drug Free Workplace Act. 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. Uniform Reimbursement & Reporting the Value of Uniforms to CalPERS Reimbursement to the Police Chief and Assistant Police Chief for the cost of purchasing and maintenance of required uniforms shall be $34.62 per pay period. 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. Under PEPRA, this benefit is not reported to CalPERS as special compensation for new members. Fire Safety Management 1. Post-Retirement Healthcare Trust Employees promoted into a fire safety management classification from a position represented by CF A, Inc. after the establishment of the post-retirement healthcare trust by CF A, Inc. shall contribute into the post-retirement healthcare trust established by CF A, Inc. via payroll deductions until participation by CF A, Inc., in this type of trust is terminated. The employee contribution amount shall be equal to the amount established for employees represented by CF A, Inc. In addition, the city will make monthly contributions per fire safety management employee who is contributing to the trust. The city contribution amount will be equal to the amount established for 15 Revised 11 / 12/19 Dec. 10, 2019 Item #1 Page 32 of 38 Management Compensation and Benefits Plan employees represented by CF A, Inc. The City has no administrative responsibilities or liabilities related to this benefit, other than processing of payroll contributions as described above. 2. Overtime The classifications of Fire Chief, Fire Division Chief, Fire Battalion Chief and Fire Marshal are exempt from overtime requirements under FLSA. However, Fire Battalion Chiefs are paid straight time for overtime when they are covering the duty for a Battalion Chief who is on a leave of absence and when they are directed to attend a mandatory training class associated with the rank of Battalion Chief on a non-scheduled work day. Through the California Fire and Rescue Mutual Aid System and California Fire Assistance Agreement (CFAA), and at the request of the California Governor's Office of Emergency Services (Cal OES), California Department of Forestry and Fire Protection (CAL FIRE), Federal Fire Agencies or other fire agencies, City of Carlsbad Fire Department personnel can be assigned to locations throughout California in the event of a local, State, or Federal emergency. In the event this occurs, employees in the classification of Fire Division Chief and Fire Marshal who are assigned to the emergency location are paid straight time for overtime (portal to portal) beginning at the time of dispatch to the return to jurisdiction and employees in the classification of Fire Battalion Chief who are assigned to the emergency location are paid at a rate of 1.5 for overtime (portal to portal) beginning at the time of dispatch to the return to jurisdiction. Special Assignment and Temporary Upgrade Pay Whenever the needs of the City require an employee to temporarily perform the duties of a job classification that has a higher pay range than the pay range associated with their current job classification for a period of more than twenty-one (21) calendar days, the employee shall be designated as being in a special assignment and receive additional temporary upgrade pay. In such cases, the employee shall be paid at an appropriate level which will assure an increase of not less than five percent (5%) greater than his/her current salary. Subsequent to designation in a special assignment, in the event that the situation changes and the City does not need the employee to serve in the assignment for at least twenty-one (21) consecutive calendar days, the employee shall receive the temporary upgrade pay for that period of time the assignment lasts. In the event that at the beginning of a special assignment, it is not perceived that the assignment will last at least twenty- one (21) consecutive calendar days, and the assignment nonetheless extends beyond twenty-one (21) consecutive calendar days, the employee in the assignment shall receive the temporary upgrade pay retroactive to the first day of the acting assignment. No employee shall be required to perform any of the duties of a higher classification unless that employee is deemed to possess the minimum qualifications of the higher classification by the Human Resources Director as recommended by the affected Department Head. Exceptions to the minimum qualifications criteria may be recommended by the affected Department Head on a case by case basis. If the employee does not meet the minimum qualifications for the higher classification he/she shall receive not less than 2.5% temporary upgrade pay. The temporary upgrade pay shall commence on the first (1st) calendar day of the special assignment. The recommendation that an employee be placed in a special assignment shall be put in writing by the affected Department Head and submitted to the Human Resources Director for 16 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 33 of 38 Management Compensation and Benefits Plan approval. The employee shall not serve for more than one hundred and eighty (180) calendar days in a special assignment unless approved by the City Manager or his/her designee. If an employee is on a leave of absence (paid or unpaid and except when leave is ordered by the city) for more than twenty-one (21) calendar days, the temporary upgrade pay associated with their special assignment shall cease on the twenty-second (22nd) day. On the day that the employee returns to work, if the supervisor determines that the employee is required to continue to perform the duties of the special assignment, the temporary upgrade pay will resume as of the day the employee returns to work. A person in a special assignment shall be eligible to receive pay increases in his/her regular position during the special assignment. The Human Resources Director shall obtain the employee's consent for the special assignment prior to the employee's assuming or continuing the duties and additional compensation, which shall clearly state that it is understood that a reduction in salary will occur due to cessation of the temporary upgrade pay upon the expiration of the need for the special assignment. Educational Incentive Effective January 1, 2019, employees in the classifications of Police Chief and Assistant Police Chief who present proof to the Professional Standards Division Sergeant, Carlsbad Police Department, of evidence of the award of a Management certificate issued by the State of California Commission on Peace Officer Standards and Training (POST) will be eligible to receive educational incentive pay in the amount of four hundred sixty-two dollars ($462) biweekly. Eligibility for receiving the compensation will be based upon the date the employee provides evidence of eligibility to the Professional Standards Division Sergeant. It is the sole responsibility of the employee to make notification of eligibility for the educational incentive pay. 17 Revised 11/12/19 Dec. 10, 2019 Item #1 Page 34 of 38 Exhibit 2 Life/Accidental Death and Dismemberment (AD&D)-Insurance and Voluntary Benefits All management employees shall receive City paid life insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000the 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. Effective January 1, 2020, all management employees shall receive city paid Accidental Death and Dismemberment (AD&D) insurance in an amount equal to two times their base salary up to a maximum benefit of $400,000. To determine the benefit, 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. Short-Term and Long-Term Disability Insurance Short-Term Disability Effective January 1, 2020, short-term disability insurance is available for all management employees and the insurance premium is paid by the city. The insurance shall provide for a seven (7) calendar day waiting period prior to payment eligibility and the short-term disability benefits shall be provided at 60% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Long-Term Disability Long term disability is available for all management personnel after 30 calendar 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. Long-term disability is available for all management employees and the insurance premium is paid by the city. Effective January 1, 2020, the waiting period prior to payment eligibility shall be ninety (90) calendar days and the long-term disability benefits shall be provided at 66 2/3% of the employee's pre-disability base salary, up to a maximum base salary of $150,000. Use of Accrued Paid Time Off While Receiving Disability Benefits The employee shall use their accrued paid time off (e.g ., vacation, sick leave) during the disability insurance waiting period. The employee shall combine accrued paid time off, except for accrued sick leave, with short-term and long-term disability payments for the purpose of achieving the equivalent of their base salary while receiving the disability payments. Dec. 10, 2019 Item #1 Page 35 of 38 Exhibit 2 Transition/Continuation of Benefits for Employees on a Short-Term or Long-Term Disability Leave of Absence as of December 31, 2019 An employee who is on a short-term or long-term disability leave of absence as of December 31, 2019 (including an intermittent leave), will be converted to short-term and/or long-term coverage with the city's new disability insurance provider as of January 1, 2020 without having to repeat the waiting period. Paid Family Leave Effective January 1, 2020, per Administrative Order No. 84, all management employees will be eligible for 160 hours per year of paid family leave to care for an immediate family member or bond with a new child. Dec. 10, 2019 Item #1 Page 36 of 38 Administrative Order No. 84 Date: January 1, 2020 To: From: Subject: PURPOSE: All City Departments Scott Chadwick, City Manager FAMILY/PARENTAL LEAVE POLICY Exhibit 3 {cityof Carlsbad The purpose of this Administrative Order is to provide employees with paid Family/Parental Leave to care for either (1) a seriously ill family member, or, (2) to bond with a new child. This policy is separate and apart from any rights you may have under the Family and Medical Leave Act or any other federal of state leave laws, if any. Accordingly, Family/Parental Leave does not waive or limit any rights or obligations an employee has under local, state or federal law related to family and medical leave laws. However, Family/Parental Leave may run concurrently on any applicable leave laws. POLICY: Who is Covered Under this Policy? Currently employed full-time or three quarter-time employees are eligible to receive Family/Parental Leave if they have been employed and worked with the city for at least thirty consecutive calendar days. Leave Entitlement Family/Parental Leave is pro-rated based on the employee's employment status. Employees in an approved 50% job sharing arrangement will receive up to a maximum of 80 hours of Family/Parental Leave. Three-quarter time status employees will receive up to a maximum of 120 hours of Family/Parental Leave. Full-time status employees will receive up to a maximum of 160 hours of Family/Parental Leave. Two City of Carlsbad employees who are married to each other, or are in a domestic partnership, will each be eligible for their own separate hours of Family/Parental Leave. The definition of the terms "family" and "child" shall be as defined in the City's Personnel Rules and Regulations, which is incorporated by reference. Family/Parental Leave may be applied to one or more eligible event/s per rolling 12-month period, calculated from the date of the first eligible event and may be taken in a continuous period or intermittently within a 12-month period. Any unused Family/Parental Leave will automatically be forfeited at the end of the rolling 12-month period or upon separation of employment from the City . City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 I 760-720-9461 fax I www.carlsbadca.gov Dec. 10, 2019 Item #1 Page 37 of 38 Use of Leave To help the City accommodate its staffing needs, when an employee reasonably knows of a future eligible event that he/she wishes to use leave for (i.e. birth of a child), a Request for Leave of Absence must be submitted to the Human Resources Department at least 30 calendar days prior to the-first use of the Family/Parental Leave. · If an eligible event is not reasonably foreseeable to an employee at least 30 days in advance, notice to · use Family/Parental Leave must be given by the employee as soon as reasonably practicable. Request for Leave of Absence forms are available at the Human Resources Department. Family Leave to Care for a Seriously Ill Family Member Request for Leave of Absence and Medical Certification forms must be submitted within 15 calendar days from the day th~ forms are provided by Human Resources. Failure to provide medical certification on a timely basis ~ay result in delay or denial of the leave. Family Leave must be taken in. one-hour increments. Parental Leave Request for Leave of Absence and proof of relationship between employee and child (e.g., certificate of live birth, adoptive placement agreement, foster/guardianship placement record) must be submitted· within 15 calendar days from the day the forms are provided by Human Resources. Failure to provide proof of relationship on a timely basis may result in delay or denial of the leave. Parental Leave must be taken within 12 months of the birth or placement of the child. Leave must be taken in minimum increments of two weeks. The city shall grant a request for leave of less than two weeks' duration, with one-hour minimum increments, in its sole discretion. -During Family/Parental Leave, employees will continue to be eligible for benefit credits. While on leave, if an employee goes into unpaid status, or has insufficient pay for co-share premiums; they are required to coordinate co-share premiums wfth Human Resources. The employee remains responsible to pay all of his/her share of premiums. dministrative Order is effective January 1, 2020. City Manager Dec. 10, 2019 Item #1 Page 38 of 38