Beverly Hills City Council
June 14, 2022

AGENDA REPORT
Meeting Date: June 14, 2022
Item Number:

To: Honorable Mayor & City Council
From: Jeff S. Muir, Director of Finance
Tatiana Szerwinski, Assistant Director of Finance
Brandy Gros, Budget Manager
Subject: CITY COUNCIL CONSIDERATION AND ADOPTION OF FISCAL YEAR 2022-23 BUDGET; AND

RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY

HILLS ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
THE FISCAL YEAR 2022-23; AND

RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY

HILLS APPROVING THE BUDGET AND FINANCIAL POLICIES
FOR FISCAL YEAR 2022-23 AND APPROPRIATING FUNDS
THEREFOR; AND

RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF

BEVERLY HILLS APPROVING THE OPERATING BUDGET AND
FINANCIAL POLICIES FOR THE 2022-23 FISCAL YEAR AND
APPROPRIATING FUNDS THEREFOR; AND

CITY COUNCIL APPROVAL OF AMENDED AND RESTATED
EXECUTIVE EMPLOYEE COMPENSATION PLAN.

Attachments: 1. Resolution Adopting the Annual Appropriations Limit

2. Resolution for Adopting the City Budget and Financial Policies

3. Resolution for Adopting the Parking Authority Budget and Financial Policies

4. Amended and Restated Executive Employee Compensation Plan

5. Amended and Restated Executive Employee Compensation Plan (Tracked Changes)

6. Independent Fiscal Analysis
G-1
Meeting Date: June 14, 2022

RECOMMENDATION
It is recommended that the City Council adopt the resolutions for the Fiscal Year 2022-23 appropriations limit, operating and capital improvement program budget and financial policies, and approve the amended and restated Executive Employee Compensation Plan and that the Board of Directors adopt the resolution approving the Fiscal Year 2022-23 operating budget and financial policies for the Parking Authority.

INTRODUCTION
The purpose of this report is to request that the City Council and Board of Directors adopt the Fiscal Year 2022-23 Budget and Financial Policies of the City and Fiscal Year 2022- 23 Budget of the Parking Authority of the City of Beverly Hills, respectively. The Parking Authority’s operations are provided for through an operating agreement with the City of Beverly Hills, which employs or contracts for all staffing and other needs to operate the Authority’s facilities.

In accordance with Government Code Section 65013, the Planning Commission in its capacity as the Planning Agency reviewed the Fiscal Year 2022-23 Capital Improvement Budget at its May 12, 2022 meeting and found it to be consistent with the City’s General Plan.

The City Council has been briefed multiple times throughout the fiscal year through quarterly financial updates and budget study sessions including the following:
 November 16, 2021: Update on Fiscal Year 2020-21 Year-End Results and Fiscal Year 2021-22 First Quarter Results
 February 15, 2022: Update on Fiscal Year 2021-22 Second Quarter Results and Forecast
 April 26, 2022: City Council Priorities Session
 May 10, 2022: Update on Fiscal Year 2021-22 Third Quarter Results and Forecast  May 12, 2022: Planning Commission reviewed Fiscal Year 2022-23 Capital Improvement Budget for conformance with General Plan.
 May 17, 2022: Presentation of the Proposed Fiscal Year 2022-23 Capital Improvement Budget
 May 9, 2022 – May 19, 2022: Meetings held with City Council members to review proposed capital and operating budgets in detail.
 May 24, 2022: Presentation of the Proposed Fiscal Year 2022-23 Operating Budget.

DISCUSSION
The proposed Citywide appropriations for Fiscal Year 2022-23 are $572.5 million for all funds, with $560.7 million in projected Citywide revenues. Reserves of $11.8 million would be used to fund the full expenditure budget. This budget is inclusive of General Fund appropriations of $296.8 million and Citywide Capital Improvement Program (CIP) appropriations of $75.0 million. Projected General Fund revenues of $293.0 million exceeds General Fund base operating expenditures of $262.4 million, yielding a base operating surplus of $30.6 million. After providing for transfers out of $26.5 million and one-time enhancement requests of $6.9 million, and additional enhancements and updates subsequently approved by Council of $1.0 million, a modest utilization of $3.8 million of unassigned reserves is proposed to balance the budget (from a portion of the Meeting Date: June 14, 2022

forecasted fiscal year 2021-22 surplus of $15.3 million, which was presented to the City Council as part of the third quarter financial update on May 10, 2022).

The Fiscal Year 2022-23 Proposed Operating Budget for the Parking Authority includes a total appropriation of $27.3 million with $25.2 million of anticipated revenues and a $2.1 million utilization of reserves. This Proposed Budget was included in the document presented at the May 24, 2022 Study Session.

The initial proposed budget includes a total of 39 budget enhancements totaling $22.4 million across all funds ($6.9 million one-time and $15.5 million ongoing). Full summaries by fund and details for all enhancements can be found in the proposed budget document in the Budget Enhancements section and in the Supplemental Information section under Budget Enhancement Details. With an improving financial outlook and the need to support the priorities of the community and City Council, enhancement requests for fiscal year 2022-23 are centered primarily around bolstering the Police Department to increase public safety, support for the community through additional Community Assistance Grant Funding, adding staff resources to support growing Community Services programs, and increased funding for materials and supplies and contractual services in response to inflationary costs.

The Proposed CIP and Operating Budgets were presented at the Study Sessions on May 17, 2022 and May 24, 2022 respectively, at which time Council provided additional direction and support for bringing the resolutions forward for adoption. There are a few recommended updates from the initial Proposed Budget based on recent City Council actions embedded in the budget resolution including appropriation increases for:
 $104,166 for ongoing animal care and control services approved by Council on May 10, 2022;
 Salaries and benefit cost increases of $652,876 associated with a 3% cost of living increase for the Police Officers’ Association and Police Management Association effective October 2022, approved by Council on May 24, 2022;  Salaries and benefit cost increases of $12,051 associated with two 5.5% mental evaluation team (MET) police officer bonuses approved by Council on May 24, 2022;
 Elimination of the Assistant City Clerk position of $194,790 with budgeted funds applied as an offset for the Deputy City Clerk budget enhancement approved by Council on May 24, 2022 in conjunction with no cost changes to the Executive Compensation Plan; and
 $150,000 for Next Night as part of the Next BH work plan for fiscal year 2022-23.

Additionally, there are two anticipated updates incorporated based on items the City Council is expected to have approved prior to this budget adoption item at the June 14th Study and Formal Sessions:
 Additional funding for four regular part-time Childcare Counselors to support a Universal Transition Kindergarten (TK) Program totaling $187,267.  Based on recommendations from the Human Relations Liaison Committee, a total of $2.01 million is proposed for fiscal year 2022-23 Community Assistance Grant Funding, requiring an appropriation increase of $87,500 over the amount in the proposed budget.

The total of all aforementioned changes of $1.0 million has been included in the updated Citywide proposed budget appropriation total of $572.5 million.

Meeting Date: June 14, 2022

Should the Council change either of these recommended amounts, an update will be necessary to the total proposed budget appropriation amount to be approved in formal session on June 14, 2022.

Future Budget Impacts
Public Works is currently going through an Request for Proposal process for facility engineering services at City facilities. The scope of services includes, but is not limited to:

HVAC monitoring, service and maintenance, fire, life and safety equipment monitoring and maintenance, electrical and mechanical system service and maintenance, City fountain service and maintenance, facility water and wastewater service and maintenance, and gun range cleaning.

Based on the proposals received, there will be a cost increase for these services when compared to the current contract. The increase could be as high as $1.1 million per year to cover the ongoing routine scope of services, with additional costs for as-needed work.

The amount of the cost increase will depend on which proposal is selected. The new contract will have a more complete scope of services which aims to enhance service levels at City and tenant facilities, while reducing the amount of deferred maintenance and avoiding major system failures in the future. Staff anticipates bringing the proposed contract award and appropriation to the City Council in July 2022.

Budget Resolutions Updates
The budget resolution is adopted by the City Council annually to formally approve total budget appropriations for the upcoming fiscal year and associated financial policies for the City. Additionally, the resolution also serves to document authority granted to the City Manager and Director of Finance in the annual administration of the City’s budget. For fiscal year 2022-23, there are changes recommended as follows:
 Providing that the Director of Finance may authorize appropriations for interfund transfers out, when required.
 In addition to the authority already granted to the City Manager to authorize appropriations for litigation costs, insurance premiums, and pass through charges, changes are recommended to allow the City Manager to authorize appropriations to fulfill the City’s obligations with respect to local return fund exchanges, reimbursed/reimbursable costs, credit card acceptance service charges, and expenditures funded through authorized donations. Any such appropriations made by the City Manager shall be communicated to the City Council along with the reason therefor. Finance brings an annual report to the City Council at the conclusion of each year detailing any City Manager or Director of Finance approved appropriations.

Financial Policies Updates
Financial policies are adopted by the City Council annually and establish the framework for the overall fiscal planning and management of the City of Beverly Hills. These policies guide City staff in the management of the City’s finances, as well as provide guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated. Adherence to adopted financial policies promotes sound financial management, which helps maintain the City’s AAA bond ratings, provides a lower cost of capital, and a minimum of unexpected impacts upon taxpayers and users of public Meeting Date: June 14, 2022

services. The areas covered by these policies are: financial reporting, operating management, capital management, debt management, reserve and audit. There are no recommended changes to the financial policies for fiscal year 2022-23. These policies will be revisited as part of upcoming presentations to review the City’s unfunded other postemployment benefits (OPEB) and unfunded pension liability in conjunction with a review of current Council direction and any recommended updates.

Annual Appropriations Limit
Article XIIIB of the California Constitution, commonly known as the Gann Limit, specifies that appropriations from the proceeds of taxes received by governmental entities may increase annually as follows: 1) by the calendar year change in City or County population, and 2) by the fiscal year change in California per capita personal income, or the change in non-residential assessed valuation in Beverly Hills. The City Council is required to adopt the adjustment factors used by recorded vote. Using information provided by the State's Department of Finance on the change in California per capita personal income with the change in the Los Angeles County population, the City's appropriation limit for the Fiscal Year 2022-23 is $283.8 million, as shown on Schedule B attached to the appropriations resolution. This represents the upper limit on expenditures from proceeds of taxes, as defined in the California Constitution, and does not include other types of revenue.

Therefore, the total appropriations for funds that receive tax revenue may be greater than $283.8 million when expenditures funded by other types of non-tax revenue are part of the appropriations.

As shown on Schedule B attached to the Appropriations Limit resolution, the appropriations subject to the limit total $239.8 million and the City is below the limit by $44.0. The City is projected to continue to be well below the appropriations limit margin through Fiscal Year 2023-24 by approximately $50.6 million.

Executive Compensation Plan Changes
With recent Police Department restructuring, the Chief of Police recommended a budget enhancement for the addition of a newly created Deputy Director of Police Special Projects as an Executive position. Additionally, with the recently announced retirement of the Assistant City Clerk in June, this classification is recommended to be eliminated from the Executive Compensation Plan (“Plan”). Both classifications are included in Senior Management Band “A” of the salary schedule and as such result in no cost impact to the overall Plan structure. There are also two language plan changes proposed which were presented during the May 24, 2022 meeting: (1) updates to CalPERS plan language to align with current plan names and (2) changes to present the optional accrued sick leave conversion to deferred compensation uniformly with other bargaining groups. There is no cost impact with these language changes. Per the City’s dedication to transparency and in compliance with the Civic Openness in Negotiations (COIN) ordinance, this item represents the second of two public meetings, and a fiscal analysis was completed demonstrating no cost impact, which was reviewed by an outside consultant and was posted on May 31, 2022.

Meeting Date: June 14, 2022

FISCAL IMPACT
The recommended Fiscal Year 2022-23 budget appropriations for approval are as follows:

Further details can be found in the Fiscal Year 2022-23 Proposed Operating and Capital Improvement Budget documents (versions as of May 17, 2022 and May 24, 2022, respectively) on the City’s website at
https://www.beverlyhills.org/departments/finance/financialdocuments/budgetdocuments/.

The proposed Executive Compensation Plan changes have no cost impact and include the addition of the Deputy Director of Police Special Projects job classification and the elimination of the Assistant City Clerk job classification along with other no cost language changes.

George Chavez
City Manager
Jeff S. Muir
Director of Finance
Approved By Approved By
Fiscal Year 2022-23 Resources Appropriations for
Council Approval Net
City
Operating Budget
(including CIP) $ 560,686,609.31 $ 572,530,560.31 $ (11,843,951.00) Parking
Authority Operating Budget $ 25,170,752.58 $ 27,275,010.26 $ (2,104,257.68) Attachment 1
1 B0785-0001\2669237v1.doc
RESOLUTION NO. 22-R-______

RESOLUTION OF THE COUNCIL OF THE CITY OF

BEVERLY HILLS ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2022-
23 WHEREAS, the voters of California on November 6, 1979, added Article XIII B to the State Constitution placing various limitations on the appropriations of the State and local governments; and
WHEREAS, Article XIII B provides that the appropriations limit for the Fiscal Year 2022-23 shall not exceed the appropriations limit for the prior year adjusted for the change in the cost of living and the change in population; and WHEREAS, “change in the cost of living" is defined as either (A) the percentage change in California per capita personal income from the preceding year, or (B) the percentage change in the local assessment roll from the preceding year due to the addition of local nonresidential new construction; and
WHEREAS, “change in population” is defined in Article XIII B as either the change in the City or County population; and
WHEREAS, each entity of local government shall annually select its change in the cost of living and change in population by a recorded vote of the governing body; and WHEREAS, the information necessary for making these adjustments is attached in Schedules A, B and C.

NOW, THEREFORE, the City Council of the City of Beverly Hills does resolve as follows:

DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302 2 B0785-0001\2669237v1.doc
Section 1. The “change in the cost of living” for Fiscal Year 2022-23 shall be the percentage change in California per capita personal income from the preceding year. The “change in population” shall be the County of Los Angeles population change over the prior year.

The City Council reserves the right to recalculate and adopt new limitations on a future date.

Section 2. The appropriations subject to limitation in Fiscal Year 2022-23 for the City of Beverly Hills shall be $283,750,009.

Section 3. The Mayor shall sign this Resolution and the City Clerk shall certify and attest to the passage and adoption of this Resolution, and thereupon the same shall take effect and be enforced.

Section 4. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Council of this City.

Adopted:

LILI BOSSE
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)

HUMA AHMED
City Clerk
DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302 3 B0785-0001\2669237v1.doc
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
JEFF S. MUIR
Director of Finance
DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302

CITY OF BEVERLY HILLS

APPROPRIATIONS SUBJECT TO LIMIT
BASE YEAR 1978-79

SCHEDULE A
FUND
NO.
1978/79

APPROPRIATIONS

APPROPRIATED

TRANSFERS OR

RESERVES
DEDUCT

ENTERPRISE &

REVOLVING
DEDUCT
DEBT

SERVICE
DEDUCT

UNQUALIFIED

TRANSFERS
DEDUCT

REAPPROPRIATIONS
FROM 1977-78

ADJUSTED
TOTAL
01 22,393,762 $ 1,456,000 $ - $ - $ (3,127,000) $ (147,076) $ 20,575,686 $ 02 765,329 - - - (448,182) 317,147
03 138,776 - - - (41,642) 97,134
04 1,950,000 - - - (1,950,000) - -
06 31,154 - - - - (31,154) -
07 629,302 - - - - (418,432) 210,870
08 8,170,335 3,040,205 - - (3,194,115) 8,016,425
09 36,085 - - - (10,500) 25,585
10 48,881 - - - (42,055) 6,826
11 87,737 - - - (2,637) 85,100
12 38,000 - - - (38,000) -
14 30,675 - - (30,675) - - -
15 949,000 - - - - 949,000
17 7,383 - - - - 7,383
19 116,044 - - - - 116,044
24 196,325 - - (196,325) - - -
26 93,400 - - (93,400) - - -
27 63,875 - - (63,875) - - -
34 137,668 - - - - (133,710) 3,958
40 731,228 - (731,228) - - - -
43 213,333 - (213,333) - - - -
45 720,000 - (720,000) - - - -
46 457,000 - (457,000) - - - -
50 17,000 - - - - - 17,000
67 680,117 - - - - (480,117) 200,000
70 5,000 - - - - - 5,000
80 7,106,161 - (7,106,161) - - - -
81 2,144,496 - (2,144,496) - - - -
82 8,572,676 (8,572,676) - - - -
83 400,375 - (400,375) - - - -
84 837,846 - (837,846) - - - -
$ 4,496,205 57,768,963 $ (21,183,115) $ (384,275) $ (5,077,000) $ (4,987,620) $ 30,633,158 $ DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302

CITY OF BEVERLY HILLS

ARTICLE XIIIB APPROPRIATIONS LIMIT

SCHEDULE B
TYPE OF TAXES FY 2021/22

PROJECTED
FY 2022/23

RECOMMENDED
BUDGET
FY 2023/24

PROJECTED

GENERAL FUND
Property Taxes $ 92,586,250 $ 97,885,460 $ 100,822,020
Sales Tax 40,456,242 40,646,173 41,459,100
Transient Occupancy Tax 39,985,608 44,000,000 45,540,000 Business Tax 52,972,339 52,100,000 52,881,500
Other Taxes 1,670,000 1,965,000 1,994,480
Subventions/Grants 302,811 300,000 303,000
Interest Earnings 374,751 389,419 399,452
Total General Fund Taxes 228,348,001 237,286,052 243,399,552

OTHER FUND TAXES
Park & Rec Construction Tax 1,952,836 2,500,000 2,500,000 Park & Rec Tax Interest Earnings 3,210 4,110 4,110
Total Other Funds Taxes 1,956,046 2,504,110 2,504,110
TAXES SUBJECT TO LIMIT 230,304,047 239,790,162 245,903,662 GANN LIMIT PER SCHEDULE C 265,717,378 283,750,009 296,518,759 (SHORT LIMIT)/OVER LIMIT $ (35,413,331) $ (43,959,847) $ (50,615,097) DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302

CITY OF BEVERLY HILLS

APPROPRIATIONS SUBJECT TO LIMIT

SCHEDULE C
FISCAL
YEAR

CPI/PER CAPITA INCOME

CHANGE OR NON-RESIDENTIAL

ASSESSED VALUE

POPULATION

CHANGE - CITY OR

LOS ANGELES COUNTY

ADJUSTMENT
FACTOR

APPROPRIATIONS
LIMIT
1978/79 N/A N/A N/A $ 30,629,160
1979/80 10.170% 0.000% 1.10170 33,744,146
1980/81 12.110% 0.000% 1.12110 37,830,562
1981/82 9.120% 0.000% 1.09120 41,280,709
1982/83 6.790% 0.049% 1.06842 44,105,270
1983/84 2.350% 1.600% 1.03988 45,864,012
1984/85 4.740% 1.190% 1.05986 48,609,618
1985/86 3.740% -0.290% 1.03439 50,281,377
1986/87 2.300% 1.180% 1.03507 52,044,816
1987/88 3.040% 0.043% 1.03084 53,650,038
1988/89 3.930% 1.120% 1.05094 56,382,979
1989/90 4.980% -0.108% 1.04867 59,126,925
1990/91 4.210% 0.002% 1.04212 61,617,401
1991/92 4.140% 1.730% 1.05942 65,278,474
1992/93 19.950% 1.490% 1.21737 79,468,223
1993/94 3.060% 0.960% 1.04049 82,686,190
Adjustment for Refuse Charges (2,000,000)
1993/94 Revised Appropriations Limit 80,686,190
1994/95 0.710% 0.780% 1.01496 81,892,882
1995/96 4.720% 1.000% 1.05767 86,615,809
1996/97 4.670% 1.580% 1.06324 92,093,207
1997/98 4.670% 1.240% 1.05968 97,589,245
1998/99 4.150% 1.390% 1.05598 103,051,983
1999/00 4.530% 1.670% 1.06276 109,519,166
2000/01 4.910% 2.030% 1.07040 117,228,957
2001/02 7.820% 1.930% 1.09901 128,835,710
2002/03 -1.270% 1.450% 1.00162 129,043,889
2003/04 2.310% 1.480% 1.03824 133,978,770
2004/05 3.280% 1.380% 1.04705 140,282,825
2005/06 5.260% 0.710% 1.06007 148,710,099
2006/07 3.960% 0.170% 1.04137 154,861,838
2007/08 4.420% 0.720% 1.05172 162,871,019
2008/09 4.290% 0.860% 1.05187 171,318,966
2009/10 0.620% 0.880% 1.01505 173,898,098
2010/11 -2.540% 0.750% 0.98191 170,752,195
2011/12 2.510% 0.380% 1.02900 175,703,219
2012/13 3.770% 0.380% 1.04164 183,020,074
2013/14 5.120% 0.690% 1.05845 193,718,198
2014/15 -0.230% 0.780% 1.00548 194,780,173
2015/16 3.820% 0.820% 1.04671 203,878,986
2016/17 5.370% 0.850% 1.06266 216,653,319
2017/18 3.690% 0.570% 1.04281 225,928,319
2018/19 3.670% 0.510% 1.04199 235,414,410
2019/20 3.850% -0.010% 1.03840 244,453,417
2020/21 3.730% -0.110% 1.03616 253,292,601
2021/22 5.730% -0.780% 1.04905 265,717,378
2022/23 7.550% -0.710% 1.06786 $ 283,750,009
DocuSign Envelope ID: BECE5CE2-73ED-4FA3-A59B-880B5308E302 Certificate Of Completion
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Certificate Pages: 3 Initials: 0 Sivan Levin
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Attachment 2
1 B0785-0001\2669234v1.doc
RESOLUTION NO. 22-RRESOLUTION OF THE COUNCIL OF THE CITY OF

BEVERLY HILLS APPROVING THE BUDGET AND
FINANCIAL POLICIES FOR FISCAL YEAR 2022-23 AND

APPROPRIATING FUNDS THEREFOR
The Council of the City of Beverly Hills does resolve as follows:

Section 1. That certain document entitled “City of Beverly Hills Fiscal Year 2022- 23 Budget", a copy of which is on file in the office of the City Clerk and the Beverly Hills Public Library, which may hereafter be amended by the Council, is hereby approved as the operating budget for the City of Beverly Hills for the Fiscal Year 2022-23, beginning July 1, 2022.

Section 2. Appropriations in the amount not to exceed $572,530,560.31 are authorized for the purpose of carrying on the business of the City.

Section 3. In adopting the Budget, the City Council hereby gives authority to the City Manager, upon recommendation of the Director of Finance, to re-appropriate all unencumbered Fiscal Year 2021-22 appropriated fund balances and unexpended encumbrances of the Fiscal Year 2021-22 Budget.

Section 4. The City Manager, or their designee, upon recommendation of the Director of Finance, may transfer appropriations between and among all funds, as defined in the Fiscal Year 2022-23 budget, up to the amount of $572,530,560.31. Any transfer between capital improvement program projects within different funds must also be authorized by the City Manager. An annual report shall be made to the Council describing each transfer between funds and the reason therefor.

Section 5. The Director of Finance may make budget adjustments to accounts within the same fund, provided that the fund is within its approved budget. The Director of Finance may also authorize appropriations for interfund transfers out, when required.

DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 2 B0785-0001\2669234v1.doc
Section 6. The City Manager may appropriate up to $300,000 during the Fiscal Year and the Director of Finance may appropriate up to $100,000 during the Fiscal Year from all fund balances to any accounts within that fund as long as it meets the purposes of that fund’s designation. During the Fiscal Year, the City Manager may authorize appropriations to fulfill the City’s obligations with respect to:
 Litigation costs
 Insurance premiums
 Local return fund exchanges
 Reimbursed/reimbursable costs
 Credit card acceptance service charges
 Pass through charges
 Expenditures that are funded through authorized donations An annual report shall be made to the Council describing each appropriation, and the reason therefor.

Section 7. Pursuant to the provisions of Section 37208 of the Government Code, the Council ratifies the prior payment of budgeted demands from those funds which have been certified or approved by the Director of Finance and may appropriate funds for non-budgeted items, and any such appropriation for a non-budgeted item shall constitute an approval to issue a warrant in payment of a proper demand or demands therefor.

Section 8. The City Council hereby adopts the Comprehensive Financial Policies of the City for Fiscal Year 2022-23, as attached to this resolution.

Section 9. In the case of fee-based programs, if the revenues for such programs exceed the amount budgeted, the City Council hereby authorizes the Director of Finance to increase the appropriation of said program in the same amount of the increased revenue.

DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 3 B0785-0001\2669234v1.doc
Section 10. The Director of Finance is authorized to make such other revisions including individual line-item appropriations, changes in summaries, fund totals, grand totals, and other portions of the budget document as necessary to reflect and implement the programs specified in this resolution, and in full accordance with the direction provided by the Council up until the adoption of this resolution.

Section 11. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Council of this City.

Adopted:

LILI BOSSE
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
JEFF S. MUIR
Director of Finance
DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 
DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 .

DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 
DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 DocuSign Envelope ID: 0A0F9649-F9ED-4615-9C01-55755D3E0A71 Certificate Of Completion
Envelope Id: 0A0F9649F9ED46159C0155755D3E0A71 Status: Sent Subject: Please DocuSign: Resolution - Operating Budget FY 22-23.pdf Source Envelope:

Document Pages: 17 Signatures: 2 Envelope Originator:

Certificate Pages: 3 Initials: 0 Sivan Levin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
6/8/2022 10:24:30 AM
Holder: Sivan Levin
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Stephanie Cao for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to [email protected]
Using IP Address: 107.184.73.66
Sent: 6/8/2022 10:29:31 AM
Resent: 6/9/2022 10:06:26 AM
Resent: 6/9/2022 10:31:15 AM
Viewed: 6/9/2022 1:18:16 PM
Signed: 6/9/2022 1:19:02 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jeff Muir
[email protected]
Director of Finance
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to [email protected]
Using IP Address: 172.58.16.106
Signed using mobile
Sent: 6/9/2022 1:19:05 PM
Viewed: 6/9/2022 1:22:08 PM
Signed: 6/9/2022 1:22:21 PM
Electronic Record and Signature Disclosure:

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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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(None)
Sent: 6/9/2022 1:22:23 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
George Chavez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

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Lili Bosse
[email protected]
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(None)
Electronic Record and Signature Disclosure:

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Not Offered via DocuSign
Huma Ahmed
[email protected]
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(None)
Electronic Record and Signature Disclosure:

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In Person Signer Events Signature Timestamp
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Jill M. Doohen
[email protected]
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(None)
Sent: 6/8/2022 10:29:29 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Shani Parker
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/8/2022 10:29:29 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Brandy Gros
[email protected]
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(None)
Sent: 6/8/2022 10:29:30 AM
Viewed: 6/8/2022 10:30:05 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Tatiana Szerwinski
[email protected]
Assistant Director of Finance
City of Beverly Hills
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(None)
Sent: 6/8/2022 10:29:30 AM
Viewed: 6/8/2022 10:30:12 AM
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Not Offered via DocuSign
Jackie Perez
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/9/2022 1:22:24 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jackie Perez
[email protected]
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(None)
Carbon Copy Events Status Timestamp
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Witness Events Signature Timestamp
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Envelope Sent Hashed/Encrypted 6/8/2022 10:29:29 AM
Payment Events Status Timestamps
ƚƚĂĐŚŵĞŶƚ3
1 B0785-0001\2669239v1.doc
RESOLUTION NO. 22-RRESOLUTION OF THE PARKING AUTHORITY OF THE

CITY OF BEVERLY HILLS APPROVING THE

OPERATING BUDGET AND FINANCIAL POLICIES FOR
THE 2022-23 FISCAL YEAR AND APPROPRIATING

FUNDS THEREFOR
The Board of the Parking Authority of the City of Beverly Hills does resolve as follows:

Section 1. That certain document entitled “Parking Authority of the City of Beverly Hills Fiscal Year 2022-23 Budget", a copy of which is on file in the office of the Secretary of the Parking Authority, which may hereafter be amended by the Parking Authority, is hereby approved as the operating budget for the Parking Authority of the City of Beverly Hills for the Fiscal Year 2022-23, beginning July 1, 2022.

Section 2. Appropriations in the amount not to exceed $27,275,010.26 are authorized for the purpose of carrying on the business of the Parking Authority.

Section 3. The Executive Director of the Parking Authority (“Executive Director”) or their designee may make budget adjustments to accounts, provided that the Parking Authority is within its approved budget.

Section 4. The Executive Director or their designee may appropriate up to $300,000 during the Fiscal Year from Parking Authority balance to any accounts as long as it meets the purposes of the Authority. An annual report shall be made to the Board of the Parking Authority describing each appropriation, and the reason therefor.

Section 5. The Board of the Parking Authority ratifies the prior payment of budgeted demands from those funds which have been certified or approved by the Executive Director or their designee and may appropriate funds for non-budgeted items, and any such DocuSign Envelope ID: AC411F7B-2F15-4EED-B9CA-4109EEA05358 2 B0785-0001\2669239v1.doc
appropriation for a non-budgeted item shall constitute an approval to issue a warrant in payment of a proper demand or demands therefor.

Section 6. The Parking Authority hereby adopts Comprehensive Financial Policies for Fiscal Year 2022-23, as attached to this resolution.

Section 7. In the case of fee-based activities, if the revenues for such programs exceed the amount budgeted, the Board of the Parking Authority hereby authorizes the Executive Director or their designee to increase the appropriation of said activity in the same amount of the increased revenue.

Section 8. The Executive Director or their designee is authorized to make such other revisions including individual line-item appropriations, changes in summaries, totals, grand totals, and other portions of the budget document as necessary to reflect and implement the programs specified in this resolution, and in full accordance with the direction provided by the Board of the Parking Authority up until the adoption of this resolution.

Section 9. The Secretary of the Parking Authority shall certify to the adoption of this resolution and shall cause this resolution and their certification to be entered in the Book of Resolutions of the Board of the Parking Authority.

Adopted:
___________________________

LILI BOSSE
Chairman of the Board
Parking Authority of the
City of Beverly Hills
ATTEST:
(SEAL)

HUMA AHMED
Secretary of the Parking Authority
DocuSign Envelope ID: AC411F7B-2F15-4EED-B9CA-4109EEA05358 3 B0785-0001\2669239v1.doc
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER GEORGE CHAVEZ
General Counsel Executive Director
DocuSign Envelope ID: AC411F7B-2F15-4EED-B9CA-4109EEA05358 DocuSign Envelope ID: AC411F7B-2F15-4EED-B9CA-4109EEA05358 Certificate Of Completion
Envelope Id: AC411F7B2F154EEDB9CA4109EEA05358 Status: Sent Subject: Please DocuSign: Resolution - Operating Budget Parking Authority FY 22-23.pdf Source Envelope:

Document Pages: 4 Signatures: 1 Envelope Originator:

Certificate Pages: 2 Initials: 0 Sivan Levin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
6/8/2022 10:29:59 AM
Holder: Sivan Levin
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Stephanie Cao for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to [email protected]
Using IP Address: 107.184.73.66
Sent: 6/8/2022 10:31:33 AM
Resent: 6/9/2022 10:06:18 AM
Resent: 6/9/2022 10:31:53 AM
Viewed: 6/9/2022 1:16:40 PM
Signed: 6/9/2022 1:17:19 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 6/9/2022 1:17:21 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
George Chavez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Lili Bosse
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Jill M. Doohen
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/8/2022 10:31:31 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Shani Parker
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/8/2022 10:31:32 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Brandy Gros
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/8/2022 10:31:32 AM
Viewed: 6/8/2022 12:30:02 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Tatiana Szerwinski
[email protected]
Assistant Director of Finance
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 6/8/2022 10:31:33 AM
Viewed: 6/8/2022 8:40:54 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jackie Perez
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/9/2022 1:17:21 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jackie Perez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 6/8/2022 10:31:32 AM
Payment Events Status Timestamps
ƚƚĂĐŚŵĞŶƚ4
Amended and Restated
Executive Employee Compensation Plan

B0785-0301\2532765v1.doc

AMENDED AND RESTATED

EXECUTIVE EMPLOYEE COMPENSATION PLAN
(06/14/2021)
I. CITY MANAGER RESPONSIBILITIES AND AUTHORITY
The City Manager, as chief administrative officer of the City, and with responsibility for all employees not appointed by the City Council, is responsible for the administration and implementation of this compensation plan. The City Manager is responsible for attracting and hiring the very best candidates to fill Senior Executive, Executive, Assistant Director, and Senior Management positions with the City. The City Manager may also grant alternate workweek (such as 9/80 and 4/10) and flexible schedules instead of the traditional 5/40 schedule. The City Manager shall notify the City Council when granting any schedule other than the traditional 5/40 schedule.

II. SENIOR EXECUTIVES, EXECUTIVES, ASSISTANT DIRECTORS, AND

SENIOR MANAGEMENT EMPLOYEE BANDS
There shall be four bands of employees affected by this Compensation Plan.

They are classified as: Senior Executives, Executives, Assistant Directors, and Senior Management. The positions within each band are as follows:

Senior Executives
Assistant City Manager
Chief of Police
Fire Chief
Executives
Assistant Chief of Police
Chief Information Officer
Deputy City Manager
Deputy Fire Chief
Director of Community Development
Director of Community Services
Director of Finance
Director of Human Resources
Director of Public Works
Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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Assistant Directors
Assistant Chief Information Officer
Assistant Director of Community Development/Building Official Assistant Director of Community Services
Assistant Director of Finance
Assistant Director of Human Resources
Assistant Director of Public Works/City Engineer
City Planner
Deputy Director of Public Works/Operations
Utilities General Manager
Senior Management
Chief Communications Officer
City Architect
Deputy Director of Police Special Projects
Deputy Director of Rent Stabilization
The City Manager may make appointments within the prescribed bands of management for any position upon evaluation of employee qualifications and job responsibilities.

III. MANAGEMENT INCENTIVE PAY
Employees covered by this compensation plan shall be entitled to Management Incentive Pay (MIP) above their base pay, at rates established by the City Council, as listed below. MIP is a means of assuring the recruitment and retention of highly capable and qualified employees. It provides eligible employees extra pay for the unique nature of their jobs and the special skills, knowledge and abilities required. The compensation is paid as earned for normally required duties performed during normal work hours. It is not compensation in lieu of overtime nor in lieu of other benefits that are excluded from consideration under the statutes and regulations of the Public Employees’ Retirement System.

Senior Executives and Executives will be entitled to $625.00 per month, Assistant Directors will be entitled to $400.00 per month, and Senior Management Employees will be entitled to $300.00 per month. Employees receiving MIP in excess of these amounts as of December 2009 will be grandfathered at such higher level until the MIP for their level meets or exceeds their individual amount. Employees moving to a lower level will receive the MIP for the lower level on the effective date of the change.

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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IV. LEAVES
A. Holidays
Employees covered by this compensation plan shall be entitled to the following paid holidays if said employee worked the regularly assigned work period the day before and the day after the holiday or was absent on authorized paid leave during said period:

New Year's Day January 1
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veterans’ Day November 11
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Day after 4th Thursday in November Christmas Day December 25
If the following holidays (January 1, July 4, November 11, and December 25) fall on a Saturday, the preceding Friday shall be considered the holiday; if the holiday falls on Sunday, the following Monday shall be considered the holiday.

If the holiday falls on a day which is an off day for employees working the 9/80, 4/10 or another alternate or flexible schedule, those employees shall receive a floating holiday in lieu of the holiday. Floating holidays may be taken at the employee’s discretion, subject to approval of the Department Head or designee. Floating holidays may only be used after the holiday has occurred, unless the employee requests to use the floating day contiguous to the actual holiday. If the employee does not use his/her floating holidays earned within the calendar year in which the employee has received it, he/she will not earn any additional floating holidays in subsequent years until the employee’s holiday balance reaches zero.

Provided, however, that those floating holidays which are earned in November or December, may be held and may be used during the year granted and for two months of the following year.

B. Personal Holiday
Employees covered by this compensation plan shall be entitled to two paid personal holidays each calendar year. Said holidays may be taken at the employees’ discretion subject to their supervisor’s approval. Employees are encouraged to use said personal holidays during the year they are Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
-4-
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accrued. Employees may not have more than two personal holidays on the books at any time. If at the end of a calendar year, an employee still has personal holidays on the books, for the following calendar year, the employee will receive only that amount of personal holidays that will bring the balance to two personal holidays, in accordance with California Labor Code Section 227.3. Personal holidays cannot be cashed out at the end of the year. Effective at the start of calendar year 2019, personal holidays will be converted to a fiscal year basis. Employees covered by this plan will receive one personal holiday at the start of calendar year 2019 or the amount of time, if any, to bring the employee to one personal holiday, whichever is less. Employees covered by this plan will receive sufficient personal holidays at the start of each fiscal year thereafter to provide two paid personal holidays.

C. Vacation Leave

1. Authorization for Taking Vacation
Upon approval of their supervisor, employees may take accrued vacation leave.

2. Holidays During Vacations
When a holiday falls within an employee's vacation leave, the leave time shall be extended or credited by the amount of the holiday time.

3. Vacation Accumulation
Vacation credit shall be accrued biweekly at the following rates:

FIRST YEAR BEGINNING THE 2ND YEAR AFTER 14 YEARS

OF SERVICE OF SERVICE OF SERVICE

3.07 Hours 4.60 Hours 6.13 Hours
Bi-weekly Bi-weekly Bi-weekly
80 hours/yr. 120 hours/yr. 160 hours/yr.

Employees covered by this compensation plan may accumulate accrued vacation up to a maximum of 240 hours, plus the current year’s accruals.

For example, employees earning vacation leave at the rate of 120 hours per year whose vacation accumulations at the beginning of the calendar year are less than 360 hours may accumulate vacation leave which will result in their balances being above 360 hours but these employees must not have more than 360 hours at the end of the calendar year (240 + 120). Likewise, employees earning 160 hours per year whose vacation accumulations at the beginning of a calendar year are less than 400 hours may accumulate Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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annual vacation which will result in their balances being above 400 hours, but these employees must not have more than 400 hours at the end of the calendar year (240 + 160). Employees in their first through fourth years, earning at the applicable rate of 80 or 120 hours per year, normally will not have the mathematical possibility of exceeding the applicable limit of either 320 hours (240 + 80) or 360 hours (240 + 120) for their level.

If an employee is above the applicable limit at the end of the calendar year (320, 360 or 400 hours), the employee will receive no additional vacation accumulation until his or her accumulation is below the applicable limit. The examples above notwithstanding, an employee hired or rehired on or after January 1, 2010 may not exceed the accumulation limit (320, 360 or 400 hours) at any time during the year and will not earn any additional vacation accumulation once the limit is reached and until the employee’s vacation accumulation falls below the applicable limit.

The City Manager may grant a temporary written waiver of the accumulation limit where an employee is unable to take vacation because of work scheduling or where required by law. Except as authorized by the City Manager according to this paragraph, any vacation leave credited to an employee above the applicable accumulation limit has not been earned and is credited in error. The vacation leave accumulation records of an employee may be corrected to remove such time credited in error.

By December 15 of each year, employees may make an irrevocable election to cash out up to eighty (80) hours which will be earned in the following calendar year, provided that at the time of the cash out, the employee has a minimum of 240 hours of accrued vacation leave.

The employee will be paid for the vacation hours (up to a maximum of eighty (80) hours) they irrevocably elected to cash out on the first pay day in January of the following calendar year (the first year being 2023). The leave shall be paid at the employee’s then existing rate of pay.

The City Manager may advance not more than 80 hours of vacation leave to new employees covered by this compensation plan as an advance of future vacation leave to be earned. An employee leaving City employment will not be paid for any portion of the advance that has not been earned at the time of separation. The City Manager may also advance the accumulation rate of a new employee based on years of prior service in other jurisdictions or upon prevailing market conditions.

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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D. Sick Leave
Employees covered by this compensation plan shall accrue eight (8) hours of sick leave per month. The City Manager may advance not more than 80 hours of sick leave to new employees covered by this compensation plan as an advance of future sick leave to be earned. Hours advanced will not be eligible for cash conversion, under the Sick Leave Incentive or otherwise, unless and until earned.

1. Job Connected Disability
Except as provided herein, no employee shall be entitled to use accumulated sick leave during any period for which he/she is entitled to receive temporary disability indemnity under Division 4 (Section 3201, et. seq.) of the California Labor Code. Any employee (except members of the Fire and Police Service entitled to the industrial leave benefits of Section 4850 of the California Labor Code) entitled to receive temporary disability indemnity may elect (for a period not to exceed twelve (12) months after he/she first makes such election) to use as much of his/her accumulated sick leave or accumulated vacation, so when added to his/her temporary disability indemnity will result in a payment to him/her of not more than full base pay or wage.

2. Sick Leave Incentive
Employees covered by this compensation plan, who use twenty-four (24) or fewer hours of sick leave in a single payroll year (defined as the year that ends at the end of the last full pay period in December where the payday is also in December), may receive cash payment for up to 24 hours of such sick leave during the month of January of the next succeeding year. The sick leave shall be paid at the employee’s then existing rate of pay. Eligible sick leave accrued for 2021 will be paid as provided in this paragraph (which will be paid in January 2022). a. Effective for sick leave accrued in calendar year 2022 and every year thereafter, if an employee wants to cash out sick leave (because he/she has used 24 hours of sick leave or less), he/she must comply with the following: By December 15 (of the first year being 2021) of each year, employees may make an irrevocable election to cash out up to twenty-four (24) hours of sick leave which will be earned in the following calendar year. If the irrevocable election is not made, the employee will not have any of his/her sick leave cashed out in January of the year after it was accrued (the first year being January 2023).

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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E. Bereavement Leave
Bereavement leave is an absence occasioned by the death of a family member of the employee.

Forty (40) hours of bereavement leave, per calendar year, may be used in the event of the death of a family member, herein defined as a spouse, registered domestic partner, parent, sibling, child, grandparent, in-law, or parent of registered domestic partner of the employee. These terms shall be defined by Labor Code section 245.5. In the event an employee needs additional time off for this leave, he/she may use up to 40 hours of sick leave per calendar year.

Requests for bereavement leave shall be made in writing, when feasible, and shall be approved by the Department Head in consultation with the Director of Human Resources. In the event the emergency required the presence of employee, and he/she could not prospectively make a request, subsequent approval must still be obtained in writing.

F. Witness and Jury Leave
Any employee who is required to serve as a witness pursuant to a lawful subpoena in any judicial or quasi-judicial proceeding or who is required to serve as a juror, shall be allowed time off without loss of pay to perform such duties. In addition, per California Labor Code section 230(b), an employee shall be allowed time off but with loss of pay, if the employee is a party to the matter for reasons other than actions within the scope of the employee’s current or past public employment. All fees to which the employee is entitled by law for such service shall be paid (less transportation allowance, if any) to the City. This section is not applicable to those employees participating in judicial or quasi-judicial proceedings that are within the scope of their employment.

Upon receipt of a jury summons, employees should notify their Department Head so that the request for jury duty can be considered relative to the pending projects of the department. This notification will give the Department Head and the employee’s supervisor an opportunity to discuss whether or not a postponement is necessary.

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G. Professional Development Program

1. Employees covered by this compensation plan are eligible for this program.

A City paid leave of absence (sabbatical leave) program shall be established with the following privileges and restrictions:

The granting of sabbatical leaves shall be at the discretion of the City Manager.

2. Approval of requests for sabbatical leave shall be based on the following criteria:
a. Content of a leave program with a basic requirement that the program be designed to professionally develop the employee in a manner potentially beneficial to his or her City employment. b. A plan for maintaining work continuity of the employee's duties and responsibilities during his or her absence, with emphasis placed on development of subordinates through training assignments. c. Coordination with departmental priorities and workload. d. Employee's performance record.

3. Sabbatical leaves may allow up to Five Hundred Dollars ($500) for expenses.

4. Sabbatical leaves shall be restricted to one (1) leave up to ninety (90) calendar days, for each employee covered by this compensation plan each five (5) years with not more than three (3) employees participating in any one (1) year.

5. Each participant in Sabbatical Leave Programs shall submit to the City Manager reports summarizing his or her activities prior to final approval of such programs.

6. Typical Sabbatical Leave Programs might include internships, on-loan executive programs, educational programs, travel-study programs, or authorship sabbaticals.

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H. Administrative Leave
Each employee covered by this compensation plan will be granted up to 120 hours of Administrative Leave each calendar year pursuant to the following:

Administrative Leave shall be granted in recognition of overtime work and the nature of the work performance and expectations placed upon employees covered by this compensation plan. Administrative Leave shall be approved by the employee’s supervisor noting the needs of the department and the necessity of having personnel available for the effective functioning of the department.

At the end of each calendar year, employees covered by this compensation plan will receive cash payment for up to 80 hours of administrative leave for that calendar year. If the employee still has unused leave after the 80 hour maximum cash out, then whatever amount of leave is left will rollover to the next calendar year and the City will grant an additional number of hours to raise the employee’s administrative leave balance for that calendar year up to the maximum of 120 hours, per California Labor Code Section 227.3.

I. Miscellaneous Paid Leave
The City Manager may approve additional paid leave (including benefits) under certain conditions including: administrative investigations, continuous employee's absence if caused by an injury on duty, employee sick leave exhaustion, certain disciplinary procedures and other situations as deemed appropriate by the City Manager in the best interests of the City.

V. INSURANCE PROGRAMS
As of January 1, 2010, the provisions of this Section V shall no longer be applicable to Senior Executives, Executives, Assistant Directors, and Senior Management Employees. To the extent this Section V is specifically made applicable to Councilmembers and the City Treasurer by the terms of the City Council and City Treasurer Compensation Plan, it shall continue to be applicable to them.

A. Medical Insurance
The City shall provide a medical insurance program to Senior Executive, Executive, Assistant Director and Senior Management employees, the cost of which shall be borne by the City. The City shall also provide a medical insurance program for City Councilmembers and City Treasurer (to the extent required by the terms of the City Council and City Treasurer Compensation Plan) during their terms of office, the cost of which shall be Amended and Restated
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borne by the City. The cost of the coverage may vary, contingent upon the number of dependents claimed. Insurance coverage is effective the first day of the month following the 30-day waiting period.

In the event an employee is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(I) of this Plan, the City shall pay the medical insurance premium of an employee and dependents coverage to the limit of one month's coverage for each full year of said employee's City services.

The City shall pay, at the rate set forth below, the premium for employees and dependents, if any, for medical benefits during the continuous periods of an employee's unpaid absence if caused by an injury or job-related illness while on duty. The payment shall be at the rate of one month's premium contribution for each year of service or major portion thereof.

The City's present medical insurance plan is the CalPERS medical insurance plan.

The payment of benefits toward this medical insurance program will be through the administration of a flexible benefit (cafeteria plan) package.

The City shall pay the minimum required under Government Code Section 22892 (b) or its successor on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant. In addition to the minimum payment required under Government Code Section 22892 (b) or its successor, flexible benefits shall be provided as follows:

1. For active Senior Executive, Executive, Assistant Director, and Senior Management employees, the City shall pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance premiums up to the full family coverage of the PERS Platinum Plan.

2. For employees retiring (service retirement only) from the City of Beverly Hills after July 1, 1981, with the exception of those employees hired or promoted as a Senior Executive, Executive, Assistant Director and/or a Senior Management employee or equivalent former position on or after December 2, 1997, the City shall continue to pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance premiums up to the two party rate of the PERS Platinum Plan under CalPERS. In the event of the death of a retired employee, the City shall continue to pay the single party Amended and Restated
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coverage rate of the PERS Platinum Plan under PERS for the spouse or registered domestic partner.

3. For employees hired or promoted as a Senior Executive, Executive, Assistant Director, and/or a Senior Management employee on or after December 2, 1997, the retiree medical insurance benefit shall be as follows:
a. Employee must complete a minimum of 5 years of full-time employment with the City of Beverly Hills; and
b. Receive a service retirement from the City of Beverly Hills; and c. Remain continuously retired from the City of Beverly Hills without reinstatement to active status with PERS. To remain eligible for this benefit, an employee cannot work for another PERS
contracting agency and make contributions to PERS to enhance his/her retirement.

For retirees meeting these conditions, the City shall continue to pay the difference between the minimum required under
Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the two-party rate of the PERS Platinum plan under PERS for the employee and for the spouse or surviving spouse subject to the conditions below:
i) A spouse includes any marriage, domestic partnership, or civil union partner eligible for coverage under the applicable plan documents, such as a spouse, husband, wife or
registered domestic partner.
ii) An employee must elect City premium contributions above the statutory minimum for a surviving spouse upon the
spouse first being eligible for coverage under the City’s plan, at a cost of $10.00 per month while the employee is employed and paid by payroll deduction based on a
reduction in the City’s contribution toward coverage above the statutory minimum. Typically, election will occur at initial employment in the Executive Employee Group or at the date of a subsequent marriage or domestic partnership.

An employee who does not timely elect and pay the $10
monthly charge may not later elect surviving spouse
premium contributions. The employee payments are not
refundable, even if an employee leaves City service without retiree medical coverage, gets divorced, terminates a
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domestic partnership or is otherwise unable to take
advantage of surviving spouse premium contributions.

4. With the concurrence of the City Manager, if an employee is hired in the Senior Executive, Executive, Assistant Director, and Senior Management group on or after December 2, 1997, but before January 1, 2010, and has previously retired from active status from an agency served by PERS; and is within the first five years of service as a full-time permanent employee with the City of Beverly Hills; and was entitled to and receiving retiree medical benefits equal to the agency paying at least 25 percent of the premium for medical insurance for the employee; and that employee retires or separates from city service for any reason involving incapacitation or an inability to perform the duties of this employee’s position (expressly excludes but is not limited to voluntary retirement prior to the employee’s fifth anniversary of employment with the City of Beverly Hills and retirement in lieu of termination) then this employee shall be eligible for the benefit outlined in 3. Specifically, the City shall pay the cost of medical insurance premiums equal to the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the twoparty rate of the PERS Platinum plan under PERS.

B. Dental Insurance
The City shall provide one or more dental insurance plan(s) to active Senior Executive, Executive, Assistant Director, and Senior Management employees, the cost of which shall be borne by the City. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled. Upon retirement, Department Director, Assistant Department Director and Senior Management employees can continue in the City's dental plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document. The City reserves the right to modify or discontinue retiree dental based on availability, market conditions and other factors.

C. Life Insurance
Senior Executive, Executive, Assistant Department, Director and Senior Management employees shall be entitled to a three hundred thousand dollar ($300,000) term life insurance policy under the City's life insurance program. The full premium for such policy shall be paid for by the City under the life insurance program of its choosing. Each such employee shall have the option to purchase additional life insurance at the City's unit cost, if available.

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D. Disability Insurance
The City shall provide, at employees’ taxable expense, long-term disability insurance for Senior Executive, Executive, Assistant Director, and Senior Management employees. This benefit shall be mandatory for each Senior Executive, Executive, Assistant Director, and Senior Management employee. The disability plan will pay two thirds (66%) of the employee’s base pay, up to a maximum of $10,000 per month with a 90-day disability wait period.

E. Disability Leave - Extended Disability Base Pay and Benefits Continuance The City shall provide to each Senior Executive, Executive, Assistant Director, and Senior Management employee extended disability base pay and benefits (less legally required deductions) continuance in the event that an eligible employee sustains an injury or illness causing long term disability. This continuance shall be up to 90 days, as approved by the City Manager at his/her sole discretion, upon recommendation from the Director of Human Resources.

After this period, or upon the commencement of disability benefits from insurance provided pursuant to subsection D above, whichever occurs first, the City’s Extended Disability Base Pay and Benefits Continuance shall stop. To qualify for this pay and benefits continuance, an employee must notify the Risk Management Division in writing immediately upon becoming aware that an injury or illness may result in a long term disability. Risk Management Division, in consultation with the Human Resources Division, will contact the employee’s physicians and medical treatment centers as may be appropriate to determine the severity and scope of injury/illness and probable length of absence of the employee. The employee must also make himself or herself available for examination by a City appointed physician (at City expense). The employee must file for disability insurance within the prescribed insurance required time-lines and provide the City with a written statement from a physician, satisfactory to the Risk Manager, detailing the employee’s injury or illness and recommending disability leave.

No Extended Disability Base Pay and Benefits Continuance shall be granted for employees if they do not follow the procedures as set forth in this section or do not qualify for disability insurance.

Employees covered under this program shall not receive a monetary amount greater than they would normally receive if they had been working under normal conditions. Any disability indemnity received by the employee from the State of California for the purpose of insuring a weekly or monthly income as the result of the same work incurred injury for which the Amended and Restated
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employee is receiving Extended Disability Base Pay and Benefits Continuance from the City shall be paid to the City.

F. Optical Insurance
The City shall provide one or more optical insurance plan(s) to active Senior Executive, Executive, Assistant Director, and Senior Management employees, the cost of which shall be borne by the City. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled. Upon retirement, Senior Executive, Executive, Assistant Director and Senior Management employees can continue in the City's optical plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue the retiree optical plan based on availability, market conditions and other factors.

VI. MEDICAL INSURANCE BENEFIT AND FLEXIBLE BENEFITS (CAFETERIA) PLAN
As of January 1, 2010, the provisions of this Section VI shall be applicable to Senior Executive, Executive, Assistant Directors, and Senior Management Employees.

The City shall contribute the PERS statutory minimum toward the cost of providing medical insurance on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant.

In addition, in order to enhance the City’s Flexible Benefits (Cafeteria) Plan, as of January 1, 2010, the City shall provide a monthly benefit contribution (in addition to the PERS statutory minimum contribution to medical insurance for all participants) to each current Senior Executive, Executive, Assistant Director and Senior Management employee to use to pay for employee selected I.R.S. qualified benefits as detailed in this Section. The amount of the monthly benefit will be equal to the combined cost of the PERS Platinum family medical (minus statutory minimum contribution being made by the City), the enhanced family dental and the enhanced family vision plans as of January 1, 2010 and on each January 1 thereafter through calendar year 2015 (ending December 31, 2015). (Where more than one plan is offered in a particular category of coverage, “enhanced” designates the plan with the greatest premium.) Effective January 1, 2022, the monthly benefit, including the PERS Statutory minimum, will be $2,250.00 for the purchase of the eligible medical, dental and optical insurance benefits. If employees subject to the Management and Professional Employees Association MOU receive any future increase to the monthly benefit contribution, employees covered by this compensation plan shall receive the same increase, subject to the following exceptions: (1) such increase shall not Amended and Restated
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affect the amount employees are permitted to receive as a taxable cash payment (referred to in the next paragraph); and (2) such increase shall not affect the amount employees receive for family coverage.

If after selection of the various I.R.S. qualified benefits as detailed in this section, an employee has benefit contribution left over, the employee shall receive, in a taxable cash payment added to his or her bi-weekly payroll, that amount as determined by the difference between the employee’s selected benefits and the monthly benefit amount, subject to a maximum limit of $600.

However, any employee who made elections prior to January 1, 2010 for the 2010 plan year resulting in a taxable cash payment in excess of the maximum limit of $600 may continue the receipt of cash in excess of $600 until the earlier of (1) the end of the 2010 plan year or (2) any change in, revocation of or making of a new election under this benefit. If an employee “spends” more than what is allocated by the City in the Flexible Benefits (Cafeteria) Plan monthly allotment, the difference shall be deducted from that employee’s pay on a bimonthly basis. Terms will be as specified in the applicable plan document(s) and any conflict will be resolved in favor of the plan document.

The various I.R.S. qualified benefits offered by the City are as follows:

A. Medical Insurance
The City shall provide a medical insurance program to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents claimed. Eligible new hires are covered under the program on the first day of the month following the employee’s hire date.

In the event an employee covered by this compensation plan is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(I) of this Plan, the City shall pay the employee’s applicable cafeteria plan contribution amount for one month for each full year of said employee's City service or major portion thereof.

The City shall pay the applicable cafeteria plan contribution amount for employees covered by this compensation plan and dependents, if any, during the continuous periods of an employee's unpaid absence if caused by an injury or job related illness while on duty. The payment shall be at the rate of one month's applicable cafeteria plan contribution for each full year of said employee’s City service or major portion thereof.

The City's present medical insurance plan is the CalPERS medical insurance plan.

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B. Dental Insurance
The City shall provide a choice of one or more dental insurance plans to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled and the level of plan services.

C. Optical Insurance
The City shall provide one or more optical insurance plans to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled.

VII. OTHER BENEFITS
As of January 1, 2010, the provisions of this Section VII shall be applicable to Senior Executive, Executive, Assistant Department Directors, and Senior Management Employees.

A. Life Insurance
Employees covered by this section shall be entitled to a three hundred thousand dollar ($300,000) term life insurance policy under the City's life insurance program. The premium for such policy shall be paid for by the City under the life insurance program of its choosing. Each such employee shall have the option to purchase additional life insurance at the City's unit cost, if available.

B. Disability Insurance
The City shall contract for a long-term disability insurance plan for employees covered by this section. Each employee covered by this section shall be required to participate in the long-term disability insurance plan at his or her own expense. The disability plan will pay two thirds (66%) of the employee’s base pay, up to a maximum of $15,000 per month with a thirty (30) day disability wait period.

C. Disability Leave - Extended Disability Base Pay and Benefits Continuance The City may provide to each employee covered by this compensation plan employee base pay and benefits (less legally required deductions) during a thirty-day period after the employee sustains an injury or illness causing long term disability, but before the employee receives benefits from any long term disability insurance policy. The decision whether to provide base pay and benefits during this thirty-day period shall be made by the City Amended and Restated
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Manager, at the City Manager’s sole discretion, based upon medical information certified by a competent physician. To qualify for this base pay and benefits, the employee must notify the City Manager or the City Manager’s designee, in writing, immediately upon becoming aware that an injury or illness may result in a long-term disability and the employee must apply for disability insurance benefits as required by the disability insurance plan referenced in paragraph B above. Additionally, upon request by the City Manager or the City Manager’s designee, the employee shall provide the City with a written statement from a physician, satisfactory to the City Manager or the City Manager’s designee, detailing the employee’s injury or illness and recommending disability leave. Upon authorization from the employee, the City Manager or the City Manager’s designee may request additional information from the employee’s physicians and medical treatment providers, as may be appropriate, to determine the severity and scope of injury/illness and probable length of absence of the employee. The employee must also make himself or herself available for examination by a City-appointed physician at City expense.

No base pay or benefits shall be provided to the employee pursuant to this Paragraph C except in accordance with the procedures set forth in this Paragraph C. Nor shall any benefits be provided pursuant to this Paragraph C unless the employee qualifies for benefits under the long-term disability insurance plan referenced in Paragraph B above.

Nothing in this Paragraph C shall entitle the employee to total compensation that exceeds the base pay and benefits provided to the employee in the absence of a disability. Any disability indemnity received by the employee from the State of California intended to cover the period for which the employee has received base pay and benefits pursuant to this Paragraph C, shall be paid to the City.

D. Retirement Medical Benefit

1. For employees retiring (service retirement only) from the City of Beverly Hills after July 1, 1981, with the exception of those employees hired as a Senior Executive, Executive, Assistant Department Director, and/or a Senior Management employee on or after December 2, 1997 and with the exception of those employees who promote into the Executive Employee group on or after December 2, 1997, the City shall continue to pay the difference between the PERS statutory minimum and the actual cost of medical insurance premiums up to the two-party rate of the PERS Platinum Plan under PERS. In the event of the death of a retired employee, the City shall continue to pay the difference between the PERS statutory minimum and the actual cost of medical insurance premiums up to the one-party rate of the PERS Platinum Plan under PERS for the spouse or registered domestic partner.

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2. For employees hired as a Senior Executive, Executive, Assistant Department Director and/or a Senior Management employee on or after December 2, 1997 or who promote into the Executive Employee group on or after December 2, 1997, but on or before December 31, 2009, the retiree medical insurance benefit shall be as follows:
a) Employee must complete a minimum of 5 years of full-time employment with the City of Beverly Hills; and
b) Receive a service retirement from the City of Beverly Hills; and c) Remain continuously retired from the City of Beverly Hills without reinstatement to active status with PERS.

For retirees meeting these conditions, the City shall pay the difference between the PERS statutory minimum and the actual cost of medical insurance up to the two-party rate of the PERS Platinum plan under PERS:
i) A spouse includes any marriage, domestic partnership or civil union partner eligible for coverage under the applicable plan documents, such as a spouse, husband, wife or registered domestic partner.
ii) An employee must elect City premium contributions above the statutory minimum for a surviving spouse upon the spouse first being eligible for coverage under the City’s plan, at a cost of $10.00 per month while employed and paid by payroll deduction based on a reduction in the City’s contribution toward coverage above the statutory minimum. Typically, election will occur at initial employment in the Executive Employee Group or at the date of a subsequent marriage or domestic partnership. An employee who does not timely elect and pay the $10 monthly charge may not later elect surviving spouse premium
contributions. The employee payments are not refundable, even if an employee leaves City service without retiree medical coverage, gets divorced, terminates a domestic partnership or is otherwise unable to take advantage of surviving spouse
premium contributions.

3. With the concurrence of the City Manager, if an employee is hired as a Senior Executive, Executive, Assistant Director, or Senior Management employee on or after December 2, 1997 but before January 1, 2010, and has previously retired from active status from an agency served by PERS; and is within the first five years of Amended and Restated
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service as a full-time permanent employee with the City of Beverly Hills; and was entitled to and receiving retiree medical benefits from another agency equal to the agency paying at least 25 percent of the premium for medical insurance for the employee; and that employee retires or separates from city service for any reason involving incapacitation or an inability to perform the duties of this employee’s position (expressly excludes but is not limited to voluntary retirement prior to the employee’s fifth anniversary of employment with the City of Beverly Hills and retirement in lieu of termination) then this employee shall be eligible for the benefit outlined in Subsection 2, above. Specifically, the City shall pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the twoparty rate of the PERS Platinum plan.

4. Employees Hired on or after January 1, 2010:

As provided above in Section VI, effective January 1, 2010, the City will contribute, based on a qualifying retirement, the PERS statutory minimum on behalf of each participant in the program who has retired from City service.

In addition, for employees hired as a Senior Executive, Executive, Assistant Department Director, and/or a Senior Management employee on or after January 1, 2010, in lieu of additional retiree medical insurance benefits, the City shall, while the employees are working for the City, contribute $1,375.00 per month, or such amount as the City Council may establish from time-to-time, into a tax deferred IRS allowed account on behalf of such employees. The assets in the tax deferred account will be vested after one year of service. This plan will be portable at the time the employee separates from City service. Terms of the plan will be determined by the plan document adopted by the City Council.

Employees who promote into the Executive Employee group on or after January 1, 2010, who were City employees as of December 31, 2009, will receive retiree medical benefits (based on their years of service with the City) in accordance with the benefits and plan under which they were covered immediately prior to the promotion.

An employee promoted to Fire Chief or Deputy Fire Chief from the sworn fire group after December 29, 2012, who is a “Member” of the Beverly Hills Firemen’s Association Post-Retirement Medical Benefit Plan and Trust (“Association Plan”), as defined in the Association Plan, on the date of promotion and who would be eligible for postretirement benefits under the Association Plan as a “Participant,” as Amended and Restated
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defined in the Association Plan, except for the fact that the employee will no longer be a Member solely as a result of the promotion, will receive a substitute benefit consisting of the same benefit under the same terms as provided to other employees promoted to the Executive Employee group between December 2, 1997 and
December 31, 2009, as provided in Section VII, Paragraph D, SubParagraph 2, above. The benefit applicable to the Fire Chief and Deputy Fire Chief under this paragraph is operative until December 31, 2033 and will sunset after that date, if not sooner modified or terminated.

Employees hired before January 1, 2010 may choose an Alternative Retiree Medical Program instead of their current retiree medical benefit plan. This choice will include a lump sum payment (value of payment to be determined by the City Council following receipt and review of an actuarial study). If the employee chooses the Alternative Retiree Medical Program, the employee will not be able to request reinstatement to the former (pre-2010) benefit plan. Any additional terms involved in making the choice will be determined by the City Council. Terms of the plan will be determined by the plan document adopted by the City Council.

5. The provisions of this Paragraph D shall not apply to those employees who have voluntarily elected to participate in the City’s Alternative Retirement Medical Plan (“ARMP”). Instead, retirement medical benefits will be governed by the ARMP.

E. Retirement Dental Benefit
Upon retirement, Employees covered by this compensation plan can continue in the City's dental plans, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue retiree dental based on availability, market conditions and other factors.

F. Retirement Optical Benefit
Upon retirement, Employees covered by this compensation plan can continue in the City's optical plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue retiree optical based on availability, market conditions and other factors.

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G. Mileage Reimbursement
Since Executive Employees are not provided auto allowances, executive employees will be allowed a mileage reimbursement benefit, as was effective October 1, 2007. This benefit is for city related travel in an employee’s private vehicle at the prevailing rate as set by the Finance Department. Mileage reimbursement will begin after the employee has traveled 25 miles or more in a single day. This 25 mile exemption rule will be waived for overnight training or conference travel. For example, if an employee drives 35 miles in a day on City business- that employee would be eligible for mileage reimbursement of 10 miles (35-25=10). If an employee travels to San Diego for a training session or conference and stays over night, and the employee’s total mileage is 250 miles, the employee would get a mileage reimbursement of 250 miles. All executive employees must submit City approved forms for reimbursement. All reimbursements must be submitted no later than 3 months after the final day of travel. The Director of Finance shall be responsible for administering and interpreting this benefit.

VIII. SALARIES AND ANNUAL SALARY INCREASES
The City’s policy is to maintain a competitive pay structure that enables attraction and retention of highly experienced and effective Senior Executive, Executive, Assistant Directors, and Senior Managers.

The salary schedule for classifications represented in this Compensation Plan consists of four bands. Each band has a minimum and maximum salary with a forty-five percent (45%) differential from the minimum to the maximum, except for the Senior Management band which has a fifty-two (52%) differential between the minimum and maximum salary. The differential between each range is twenty-two percent (22%) applied to the maximum salary. Individuals in classifications covered under this Compensation Plan will be compensated at a base rate of pay equal or above the minimum of the approved salary range, and not at a base rate of pay that would exceed the maximum of the approved salary range. The Salary Schedule is identified in Appendix A.

Effective the pay period including October 1, 2021, employees will receive a base salary increase of two percent (2.0%).

Effective the pay period including October 1, 2022, employees will receive a base salary increase of two percent (2.0%).

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A. Salary Schedule Modifications
The salary schedule may be modified upon approval of the City Council.

Considerations for salary schedule modification may include one or more of the following:
 Increasing the salary structure based on a cost of living adjustment using the Consumer Price index data provided by the Bureau of Labor Statistics. Data will be reviewed using a 12 month average;  Increasing the salary structure to correspond to any negotiated increases of the City’s Management and Professional Employees Association;
 Increasing or decreasing the salary range differentials and/or the differential between ranges.

B. Placement of Classifications within the Salary Structure  Classifications are placed within the salary structure as identified in Appendix A.
 Modifications to classification placement require City Manager recommendation and City Council approval.
 Modifications to the placement of classifications within the Salary Structure may be based on any one of the following or a combination of the following:
o Difficulty in Recruitment of highly experienced individuals with qualifications exceeding minimum standards for the classification; o Market data of comparable agencies. The City Manager shall determine the procedures used to conduct a market survey.

Market surveys are conducted to provide salary and total compensation data that will be evaluated against the City of Beverly Hills salary and total compensation data which may support modifications to the salary structure.

C. Salary Placement for Individuals Upon Hire or Promotion Salary placement will be at least the minimum established salary of the classification. Placement above the minimum may be made at the discretion of the City Manager. Placement above the minimum or movement within the salary range shall be considered when the individual appointed or promoted: exceeds the minimum qualification and/or Amended and Restated
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experience of the position; the individual holds specialized certifications, licenses, skills, and/or abilities that would be beneficial to the City; and/or any other job-related factor that the City Manager deems relevant to the position and to the service of the City. In no case may an individual be compensated at a base salary above the approved maximum salary on the salary schedule.

D. Salary Adjustments to Individuals
The City Manager may authorize a salary adjustment to any individual during their service to the City. This salary adjustment is authorized at the sole discretion of the City Manager and is effective at the beginning of a pay period as identified by the City Manager. Consideration for an annual salary adjustment is generally made in conjunction with an annual performance evaluation although the City Manager may approve a salary adjustment at any time. For Assistant Directors and Senior Managers, a Senior Executive or Executive may submit a recommendation to the City Manager for consideration of the authorization for a salary adjustment. The salary adjustment may not result in an individual exceeding the maximum salary of the established salary range for his/her classification.

IX. WELLNESS PAY
Effective the pay period including October 1, 2021, the City agrees that employees will receive one- and one-half percent (1.5%) of each employee’s annual base pay for wellness pay. However, if the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% (the 2020-2021 rate), employees covered by this compensation plan will cost share (in accordance with Government Code section 20516(f)) as follows:

Classic Employees: One-half (1/2) of the amount by which the Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 0.5% of compensation earnable.

New Members as defined by the Public Employees’ Pension Reform Act of 2013: One-half (1/2) of the amount by which the Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 0.5% of pensionable compensation.

This cost share would be effective the first day of the pay period including October 1, 2021. For example, if the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate increases to 10.903% (a 0.6% increase), employees will cost share 0.3%. If the City’s Fiscal Year 2021- 2022 Employer Miscellaneous Normal Cost Rate increases to 12% (which is more than 1% above the 2020-2021 rate), the employees shall cost share Amended and Restated
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0.5%, the maximum amount. Rate increases will be applied to the one thousandth of a percent. If there is rounding necessary, the City will round up.

Effective the pay period including October 1, 2022, the City agrees that employees will receive an additional one half of one percent (0.5%) (for a total of 2.0% of annual base pay) for wellness pay. However, if the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303%, (the 2020-2021 Rate) employees covered by this compensation plan will cost share on an ongoing basis (in accordance with Government Code section 20516(f)) as follows:

Classic Employees: One-half (1/2) of the amount by which the Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 1.0% of compensation earnable.

New Members as defined by the Public Employees’ Pension Reform Act of 2013: One-half (1/2) of the amount by which the Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 1.0% of pensionable compensation.

This cost share would be effective the first day of the pay period including October 1, 2022. For example, if the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate increases to 11.503% (a 1.2% increase over the 2020-2021 rate), employees will cost share 0.6% on an ongoing basis. If the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate increases to 12.5% (which is more than 2% above the 2020-2021 rate), the employees shall cost share 1.0%, the maximum amount. Rate increases will be applied to the one thousandth of a percent. If there is rounding necessary, the City will round up.

If the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate is lower than the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate, the employees will cost share, on an ongoing basis, the amount they started to cost share at the beginning of the pay period including October 1, 2021, but it will not be reduced. If the City’s Fiscal Year 2022- 2023 Employer Miscellaneous Normal Cost Rate is higher than the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate, the employees will cost share as described above effective October 1, 2022 on an ongoing basis, but not in addition to the amount of the cost share the employees will be pay beginning with the pay period including October 1, 2021. The maximum cost share an employee can pay effective October 1, 2022 is one percent (1.0%).

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X. PAY FOR PERFORMANCE PROGRAM
Individuals covered under the Compensation Plan are expected to strive to meet and exceed the established goals and objectives set by the City Council. For those individuals who exceed the expectations set by the City Council and/or City Manager, a Pay for Performance Program has been established. The rules, regulations and eligibility criteria related to the Pay for Performance program may be further detailed in an Administrative Regulation approved by the City Manager. The Human Resources Department will assist the City Manager in the administration of this program.

The City Manager is authorized to allot Pay for Performance amounts that total no more than five percent (5%) of the combined annual base salary for all employees covered by this compensation plan as of June 30th of the immediately preceding fiscal year. The Pay for Performance payment is separate from and addition to base salary. The Pay for Performance payment to an individual will be a lump sum amount determined by the City Manager based on the performance in the prior twelve months and may only be considered as part of the employees’ annual performance evaluation. Employees are eligible for a lump sum payment up to ten percent (10%) of their base salary. Pay for performance awards are provided with the first full pay period following receipt by Human Resources of the employees performance evaluation and approval of the City Manager.

XI. UNIFORM ALLOWANCES
The Chief of Police, Fire Chief, Assistant Chief of Police and Deputy Fire Chief shall receive $600.00 annual uniform allowances.

XII. RETIREMENT
A. For “Classic Members” as Defined by PERS and the Public Employees’ Pension Reform Act of 2013 (PEPRA)
The City’s Retirement contract with PERS is at the 2.5% at 55 rate for miscellaneous employees and 3% at 50 for local safety employees hired on or before June 30, 2012 (Chief of Police, Fire Chief, Assistant Chief of Police and Deputy Fire Chief).

The City amended its contract with PERS for local safety employees (Police Chief, Fire Chief, Assistant Chief of Police and Deputy Fire Chief) hired by the City after June 30, 2012 to provide a 3% at 55 rate and to use three year average final compensation as set forth in Government Code Section 20037.

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Classic members will pay their 8% (miscellaneous) or 9% (safety) member contributions effective on the first day of the first full pay period following February 1, 2015.

B. For “New Members” as Defined by PERS and PEPRA
The retirement formula is the miscellaneous reform plan of 2% @ 62 and the applicable safety reform plan with final compensation based on the highest annual average compensation earnable over three consecutive years, as provided in the retirement law.

New Members are responsible for paying the employee contribution of onehalf of the total normal cost of the plan, as defined by CalPERS. This amount is determined and may be changed by CalPERS from time-to-time.

In addition, new members will pay an additional amount for their retirement contribution as cost sharing in accordance with Government Code section 20516. That amount will be the difference between half the normal cost amount and either 8% for miscellaneous members (so that their total retirement contribution will be 8%) or 9% for safety members (so their total retirement contribution will be 9%). This cost sharing will be effective on the first day of the first full pay period following February 1, 2015.

C. 1959 Survivor Benefit
The City’s contract with the Public Employees Retirement System provides for Level 4 coverage under the 1959 Survivor Benefit.

D. The City’s contract with the Public Employees Retirement System provides for Pre-Retirement Optional Settlement 2W Death Benefit as set forth in Government Code Section 21548.

E. All PERS benefits shall be provided in accord with the requirements of the Public Employees’ Retirement Law, commencing at Government Code §20000, and all applicable regulations and procedures of PERS, which shall prevail in the event of conflict with the provisions of this compensation plan.

XIII. SEPARATION FROM CITY SERVICE
A. Sick Leave Pay-Off
All accrued, unused sick leave earned and credited to each employee shall be the basis for determining the amount to be paid to each employee who qualifies to receive sick leave pay-off.

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Employees covered by this compensation plan who have achieved seven (7) or more years of continuous service and are listed on the City's active payroll on or after July 1, 1982, shall be eligible for sick leave pay-off upon termination of employment with the City, in accordance with the following.

The rate of sick leave pay-off shall be calculated as follows:
- For the first 7 years - 4% of accrued, unused sick leave per full year of service.
- For each year thereafter - 6% of accrued, unused sick leave per full year of service to a maximum of 100%.
- Sick leave pay-off shall be calculated at the rate of base pay received by the employee at the time of termination. Each employee eligible to receive sick leave pay-off shall receive said pay-off at the time of termination.

B. Vacation and Administrative Leave Pay-Off
An employee who terminates from City service shall receive an amount equal to accrued, unused vacation at the time of termination. The rate of pay off shall be based on the rate of base pay received by the employee at the time of termination. An employee does not have the option of utilizing accrued, unused vacation in lieu of vacation pay-off at time of termination.

An employee who terminates from City service shall receive an amount equal to accrued, unused Administrative Leave at the time of termination.

C. Notice of Termination/Severance
If the City determines to terminate an employee without cause (cause shall mean termination for conviction of a felony, or for malfeasance in office) after one full year of Executive Employee service the, City shall provide a Senior Executive or Executive employee with four (4) to twelve (12) months prior notice of the termination date; and shall provide an Assistant Director or a Senior Management employee with three (3) to eight (8) months prior notice of the termination date. The amount of notice within the applicable range shall be in the City Manager’s discretion. In lieu of providing the required notice above, the City Manager in his/her discretion may pay the eligible employee severance (severance shall include salary and benefits) at the rate of four (4) to twelve (12) months’ severance for a Senior Executive or Executive employee; and three (3) to eight (8) months’ severance for an Assistant Director or a Senior Management employee.

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Manager’s discretion. The City Manager may grant severance above the minimum within the specified range only with City Council concurrence.

XIV. DEFERRED COMPENSATION
A. City Contribution
Effective October 2021, the City shall contribute at least $50.00 per month per Senior Executive, Executive, Assistant Director, and Senior Management employee to the City's deferred compensation program. If the employees covered by the Management and Professional Employees Association MOU receive an increase to the City’s monthly contribution to the deferred compensation program, employees covered by this compensation plan shall receive the same increase.

B. Conversion of Sick Leave to Deferred Compensation
Employees covered by this compensation plan may convert accumulated sick leave to base pay. The extra pay may only be used to fund “catch up” contributions to deferred compensation. The following restrictions apply to this program.
1) The employee shall have a minimum of 7 years of service with the City of Beverly Hills.
2) The individual’s sick leave accrual cannot be reduced below 240 hours.
3) Contribution amounts and deferral limits will be governed by IRS Code restrictions and the deferred compensation plan rules related to “catch-up” contributions.
4) A conversion of no more than the amount which will bring the annual deferral to the maximum permitted by law is allowed.
5) The conversion will be at the then existing sick leave payoff percentage.

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EXECUTIVE AND SENIOR MANAGEMENT COMPENSATION PLAN
Effective 09/25/2021
Salary
Band
Band Name Classification Monthly
Band
Minimum
Band
Maximum
A Senior
Management
Chief Communications Officer
City Architect
Deputy Director of Rent Stabilization
Deputy Director of Police Special Projects
$11,158 $16,953
B Assistant
Directors
Assistant Chief Information Officer
Assistant Director of Community Development/Building
Official
Assistant Director of Community Services
Assistant Director of Finance
Assistant Director of Human Resources
Assistant Director of Public Works/City Engineer
City Planner
Deputy Director of Public Works/Operations
Utilities General Manager
$14,241 $20,607
C Executives Assistant Chief of Police
Chief Information Officer
Deputy City Manager
Deputy Fire Chief
Director of Community Development
Director of Community Services
Director of Finance
Director of Human Resources
Director of Public Works
$17,310 $25,048
D Senior
Executives
Assistant City Manager
Chief of Police
Fire Chief
$21,040 $30,447
ƚƚĂĐŚŵĞŶƚ5
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AMENDED AND RESTATED

EXECUTIVE EMPLOYEE COMPENSATION PLAN
(06/1401/2021)
I. CITY MANAGER RESPONSIBILITIES AND AUTHORITY
The City Manager, as chief administrative officer of the City, and with responsibility for all employees not appointed by the City Council, is responsible for the administration and implementation of this compensation plan. The City Manager is responsible for attracting and hiring the very best candidates to fill Senior Executive, Executive, Assistant Director, and Senior Management positions with the City. The City Manager may also grant alternate workweek (such as 9/80 and 4/10) and flexible schedules instead of the traditional 5/40 schedule. The City Manager shall notify the City Council when granting any schedule other than the traditional 5/40 schedule.

II. SENIOR EXECUTIVES, EXECUTIVES, ASSISTANT DIRECTORS, AND

SENIOR MANAGEMENT EMPLOYEE BANDS
There shall be four bands of employees affected by this Compensation Plan.

They are classified as: Senior Executives, Executives, Assistant Directors, and Senior Management. The positions within each band are as follows:

Senior Executives
Assistant City Manager
Chief of Police
Fire Chief
Executives
Assistant Chief of Police
Chief Information Officer
Deputy City Manager
Deputy Fire Chief
Director of Community Development
Director of Community Services
Director of Finance
Director of Human Resources
Director of Public Works
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Assistant Directors
Assistant Chief Information Officer
Assistant Director of Community Development/Building Official Assistant Director of Community Services
Assistant Director of Finance
Assistant Director of Human Resources
Assistant Director of Public Works/City Engineer
City Planner
Deputy Director of Public Works/Operations
Utilities General Manager
Senior Management
Assistant City Clerk
Chief Communications Officer
City Architect
Deputy Director of Police Special Projects
Deputy Director of Rent Stabilization
The City Manager may make appointments within the prescribed bands of management for any position upon evaluation of employee qualifications and job responsibilities.

III. MANAGEMENT INCENTIVE PAY
Employees covered by this compensation plan shall be entitled to Management Incentive Pay (MIP) above their base pay, at rates established by the City Council, as listed below. MIP is a means of assuring the recruitment and retention of highly capable and qualified employees. It provides eligible employees extra pay for the unique nature of their jobs and the special skills, knowledge and abilities required. The compensation is paid as earned for normally required duties performed during normal work hours. It is not compensation in lieu of overtime nor in lieu of other benefits that are excluded from consideration under the statutes and regulations of the Public Employees’ Retirement System.

Senior Executives and Executives will be entitled to $625.00 per month, Assistant Directors will be entitled to $400.00 per month, and Senior Management Employees will be entitled to $300.00 per month. Employees receiving MIP in excess of these amounts as of December 2009 will be grandfathered at such higher level until the MIP for their level meets or exceeds their individual amount. Employees moving to a lower level will receive the MIP for the lower level on the effective date of the change.

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IV. LEAVES
A. Holidays
Employees covered by this compensation plan shall be entitled to the following paid holidays if said employee worked the regularly assigned work period the day before and the day after the holiday or was absent on authorized paid leave during said period:

New Year's Day January 1
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veterans’ Day November 11
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Day after 4th Thursday in November Christmas Day December 25
If the following holidays (January 1, July 4, November 11, and December 25) fall on a Saturday, the preceding Friday shall be considered the holiday; if the holiday falls on Sunday, the following Monday shall be considered the holiday.

If the holiday falls on a day which is an off day for employees working the 9/80, 4/10 or another alternate or flexible schedule, those employees shall receive a floating holiday in lieu of the holiday. Floating holidays may be taken at the employee’s discretion, subject to approval of the Department Head or designee. Floating holidays may only be used after the holiday has occurred, unless the employee requests to use the floating day contiguous to the actual holiday. If the employee does not use his/her floating holidays earned within the calendar year in which the employee has received it, he/she will not earn any additional floating holidays in subsequent years until the employee’s holiday balance reaches zero.

Provided, however, that those floating holidays which are earned in November or December, may be held and may be used during the year granted and for two months of the following year.

B. Personal Holiday
Employees covered by this compensation plan shall be entitled to two paid personal holidays each calendar year. Said holidays may be taken at the employees’ discretion subject to their supervisor’s approval. Employees are encouraged to use said personal holidays during the year they are Amended and Restated
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accrued. Employees may not have more than two personal holidays on the books at any time. If at the end of a calendar year, an employee still has personal holidays on the books, for the following calendar year, the employee will receive only that amount of personal holidays that will bring the balance to two personal holidays, in accordance with California Labor Code Section 227.3. Personal holidays cannot be cashed out at the end of the year. Effective at the start of calendar year 2019, personal holidays will be converted to a fiscal year basis. Employees covered by this plan will receive one personal holiday at the start of calendar year 2019 or the amount of time, if any, to bring the employee to one personal holiday, whichever is less. Employees covered by this plan will receive sufficient personal holidays at the start of each fiscal year thereafter to provide two paid personal holidays.

C. Vacation Leave

1. Authorization for Taking Vacation
Upon approval of their supervisor, employees may take accrued vacation leave.

2. Holidays During Vacations
When a holiday falls within an employee's vacation leave, the leave time shall be extended or credited by the amount of the holiday time.

3. Vacation Accumulation
Vacation credit shall be accrued biweekly at the following rates:

FIRST YEAR BEGINNING THE 2ND YEAR AFTER 14 YEARS

OF SERVICE OF SERVICE OF SERVICE

3.07 Hours 4.60 Hours 6.13 Hours
Bi-weekly Bi-weekly Bi-weekly
80 hours/yr. 120 hours/yr. 160 hours/yr.

Employees covered by this compensation plan may accumulate accrued vacation up to a maximum of 240 hours, plus the current year’s accruals.

For example, employees earning vacation leave at the rate of 120 hours per year whose vacation accumulations at the beginning of the calendar year are less than 360 hours may accumulate vacation leave which will result in their balances being above 360 hours but these employees must not have more than 360 hours at the end of the calendar year (240 + 120). Likewise, employees earning 160 hours per year whose vacation accumulations at the beginning of a calendar year are less than 400 hours may accumulate Amended and Restated
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annual vacation which will result in their balances being above 400 hours, but these employees must not have more than 400 hours at the end of the calendar year (240 + 160). Employees in their first through fourth years, earning at the applicable rate of 80 or 120 hours per year, normally will not have the mathematical possibility of exceeding the applicable limit of either 320 hours (240 + 80) or 360 hours (240 + 120) for their level.

If an employee is above the applicable limit at the end of the calendar year (320, 360 or 400 hours), the employee will receive no additional vacation accumulation until his or her accumulation is below the applicable limit. The examples above notwithstanding, an employee hired or rehired on or after January 1, 2010 may not exceed the accumulation limit (320, 360 or 400 hours) at any time during the year and will not earn any additional vacation accumulation once the limit is reached and until the employee’s vacation accumulation falls below the applicable limit.

The City Manager may grant a temporary written waiver of the accumulation limit where an employee is unable to take vacation because of work scheduling or where required by law. Except as authorized by the City Manager according to this paragraph, any vacation leave credited to an employee above the applicable accumulation limit has not been earned and is credited in error. The vacation leave accumulation records of an employee may be corrected to remove such time credited in error.

Until December 31, 2021, upon the employee's request, an employee with 240 hours or more of accumulated vacation can receive cash payment for up to 80 vacation hours earned but not taken during the calendar year. The payment will be made in January 2022 at which time the employee’s vacation accrual will be reduced by the number of hours requested to be paid.

Effective for calendar year 2022 and every year thereafter: By December 15 (of the first year being 2021) of each year, employees may make an irrevocable election to cash out up to eighty (80) hours which will be earned in the following calendar year, provided that at the time of the cash out, the employee has a minimum of 240 hours of accrued vacation leave.

The employee will be paid for the vacation hours (up to a maximum of eighty (80) hours) they irrevocably elected to cash out on the first pay day in January of the following calendar year (the first year being 2023). The leave shall be paid at the employee’s then existing rate of pay.

The City Manager may advance not more than 80 hours of vacation leave to new employees covered by this compensation plan as an advance of future vacation leave to be earned. An employee leaving City employment will not be paid for any portion of the advance that has not been earned at Amended and Restated
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the time of separation. The City Manager may also advance the accumulation rate of a new employee based on years of prior service in other jurisdictions or upon prevailing market conditions.

D. Sick Leave
Employees covered by this compensation plan shall accrue eight (8) hours of sick leave per month. The City Manager may advance not more than 80 hours of sick leave to new employees covered by this compensation plan as an advance of future sick leave to be earned. Hours advanced will not be eligible for cash conversion, under the Sick Leave Incentive or otherwise, unless and until earned.

1. Job Connected Disability
Except as provided herein, no employee shall be entitled to use accumulated sick leave during any period for which he/she is entitled to receive temporary disability indemnity under Division 4 (Section 3201, et. seq.) of the California Labor Code. Any employee (except members of the Fire and Police Service entitled to the industrial leave benefits of Section 4850 of the California Labor Code) entitled to receive temporary disability indemnity may elect (for a period not to exceed twelve (12) months after he/she first makes such election) to use as much of his/her accumulated sick leave or accumulated vacation, so when added to his/her temporary disability indemnity will result in a payment to him/her of not more than full base pay or wage.

2. Sick Leave Incentive
Employees covered by this compensation plan, who use twenty-four (24) or fewer hours of sick leave in a single payroll year (defined as the year that ends at the end of the last full pay period in December where the payday is also in December), may receive cash payment for up to 24 hours of such sick leave during the month of January of the next succeeding year. The sick leave shall be paid at the employee’s then existing rate of pay. Eligible sick leave accrued for 2021 will be paid as provided in this paragraph (which will be paid in January 2022). a. Effective for sick leave accrued in calendar year 2022 and every year thereafter, if an employee wants to cash out sick leave (because he/she has used 24 hours of sick leave or less), he/she must comply with the following: By December 15 (of the first year being 2021) of each year, employees may make an irrevocable election to cash out up to twenty-four (24) hours of sick leave which will be earned in the following calendar year. If the irrevocable election is not made, the employee will not have any of his/her sick Amended and Restated
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leave cashed out in January of the year after it was accrued (the first year being January 2023).

E. Bereavement Leave
Bereavement leave is an absence occasioned by the death of a family member of the employee.

Forty (40) hours of bereavement leave, per calendar year, may be used in the event of the death of a family member, herein defined as a spouse, registered domestic partner, parent, sibling, child, grandparent, in-law, or parent of registered domestic partner of the employee. These terms shall be defined by Labor Code section 245.5. In the event an employee needs additional time off for this leave, he/she may use up to 40 hours of sick leave per calendar year.

Requests for bereavement leave shall be made in writing, when feasible, and shall be approved by the Department Head in consultation with the Director of Human Resources. In the event the emergency required the presence of employee, and he/she could not prospectively make a request, subsequent approval must still be obtained in writing.

F. Witness and Jury Leave
Any employee who is required to serve as a witness pursuant to a lawful subpoena in any judicial or quasi-judicial proceeding or who is required to serve as a juror, shall be allowed time off without loss of pay to perform such duties. In addition, per California Labor Code section 230(b), an employee shall be allowed time off but with loss of pay, if the employee is a party to the matter for reasons other than actions within the scope of the employee’s current or past public employment. All fees to which the employee is entitled by law for such service shall be paid (less transportation allowance, if any) to the City. This section is not applicable to those employees participating in judicial or quasi-judicial proceedings that are within the scope of their employment.

Upon receipt of a jury summons, employees should notify their Department Head so that the request for jury duty can be considered relative to the pending projects of the department. This notification will give the Department Head and the employee’s supervisor an opportunity to discuss whether or not a postponement is necessary.

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G. Professional Development Program

1. Employees covered by this compensation plan are eligible for this program.

A City paid leave of absence (sabbatical leave) program shall be established with the following privileges and restrictions:

The granting of sabbatical leaves shall be at the discretion of the City Manager.

2. Approval of requests for sabbatical leave shall be based on the following criteria:
a. Content of a leave program with a basic requirement that the program be designed to professionally develop the employee in a manner potentially beneficial to his or her City employment. b. A plan for maintaining work continuity of the employee's duties and responsibilities during his or her absence, with emphasis placed on development of subordinates through training assignments. c. Coordination with departmental priorities and workload. d. Employee's performance record.

3. Sabbatical leaves may allow up to Five Hundred Dollars ($500) for expenses.

4. Sabbatical leaves shall be restricted to one (1) leave up to ninety (90) calendar days, for each employee covered by this compensation plan each five (5) years with not more than three (3) employees participating in any one (1) year.

5. Each participant in Sabbatical Leave Programs shall submit to the City Manager reports summarizing his or her activities prior to final approval of such programs.

6. Typical Sabbatical Leave Programs might include internships, on-loan executive programs, educational programs, travel-study programs, or authorship sabbaticals.

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H. Administrative Leave
Each employee covered by this compensation plan will be granted up to 120 hours of Administrative Leave each calendar year pursuant to the following:

Administrative Leave shall be granted in recognition of overtime work and the nature of the work performance and expectations placed upon employees covered by this compensation plan. Administrative Leave shall be approved by the employee’s supervisor noting the needs of the department and the necessity of having personnel available for the effective functioning of the department.

At the end of each calendar year, employees covered by this compensation plan will receive cash payment for up to 80 hours of administrative leave for that calendar year. If the employee still has unused leave after the 80 hour maximum cash out, then whatever amount of leave is left will rollover to the next calendar year and the City will grant an additional number of hours to raise the employee’s administrative leave balance for that calendar year up to the maximum of 120 hours, per California Labor Code Section 227.3.

I. Miscellaneous Paid Leave
The City Manager may approve additional paid leave (including benefits) under certain conditions including: administrative investigations, continuous employee's absence if caused by an injury on duty, employee sick leave exhaustion, certain disciplinary procedures and other situations as deemed appropriate by the City Manager in the best interests of the City.

V. INSURANCE PROGRAMS
As of January 1, 2010, the provisions of this Section V shall no longer be applicable to Senior Executives, Executives, Assistant Directors, and Senior Management Employees. To the extent this Section V is specifically made applicable to Councilmembers and the City Treasurer by the terms of the City Council and City Treasurer Compensation Plan, it shall continue to be applicable to them.

A. Medical Insurance
The City shall provide a medical insurance program to Senior Executive, Executive, Assistant Director and Senior Management employees, the cost of which shall be borne by the City. The City shall also provide a medical insurance program for City Councilmembers and City Treasurer (to the extent required by the terms of the City Council and City Treasurer Compensation Plan) during their terms of office, the cost of which shall be Amended and Restated
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borne by the City. The cost of the coverage may vary, contingent upon the number of dependents claimed. Insurance coverage is effective the first day of the month following the 30-day waiting period.

In the event an employee is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(I) of this Plan, the City shall pay the medical insurance premium of an employee and dependents coverage to the limit of one month's coverage for each full year of said employee's City services.

The City shall pay, at the rate set forth below, the premium for employees and dependents, if any, for medical benefits during the continuous periods of an employee's unpaid absence if caused by an injury or job-related illness while on duty. The payment shall be at the rate of one month's premium contribution for each year of service or major portion thereof.

The City's present medical insurance plan is the CalPERS medical insurance plan.

The payment of benefits toward this medical insurance program will be through the administration of a flexible benefit (cafeteria plan) package.

The City shall pay the minimum required under Government Code Section 22892 (b) or its successor on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant. In addition to the minimum payment required under Government Code Section 22892 (b) or its successor, flexible benefits shall be provided as follows:

1. For active Senior Executive, Executive, Assistant Director, and Senior Management employees, the City shall pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance premiums up to the full family coverage of the PERS Care Platinum Plan.

2. For employees retiring (service retirement only) from the City of Beverly Hills after July 1, 1981, with the exception of those employees hired or promoted as a Senior Executive, Executive, Assistant Director and/or a Senior Management employee or equivalent former position on or after December 2, 1997, the City shall continue to pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance premiums up to the two party rate of the PERS Care Platinum Plan under CalPERS. In the event of the death of a retired employee, the City shall continue to pay the single Amended and Restated
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party coverage rate of the PERS Care Platinum Plan under PERS for the spouse or registered domestic partner.

3. For employees hired or promoted as a Senior Executive, Executive, Assistant Director, and/or a Senior Management employee on or after December 2, 1997, the retiree medical insurance benefit shall be as follows:
a. Employee must complete a minimum of 5 years of full-time employment with the City of Beverly Hills; and
b. Receive a service retirement from the City of Beverly Hills; and c. Remain continuously retired from the City of Beverly Hills without reinstatement to active status with PERS. To remain eligible for this benefit, an employee cannot work for another PERS
contracting agency and make contributions to PERS to enhance his/her retirement.

For retirees meeting these conditions, the City shall continue to pay the difference between the minimum required under
Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the two-party rate of the PERS Care Platinum plan under PERS for the employee and for the spouse or surviving spouse subject to the conditions below:
i) A spouse includes any marriage, domestic partnership, or civil union partner eligible for coverage under the applicable plan documents, such as a spouse, husband, wife or
registered domestic partner.
ii) An employee must elect City premium contributions above the statutory minimum for a surviving spouse upon the
spouse first being eligible for coverage under the City’s plan, at a cost of $10.00 per month while the employee is employed and paid by payroll deduction based on a
reduction in the City’s contribution toward coverage above the statutory minimum. Typically, election will occur at initial employment in the Executive Employee Group or at the date of a subsequent marriage or domestic partnership.

An employee who does not timely elect and pay the $10
monthly charge may not later elect surviving spouse
premium contributions. The employee payments are not
refundable, even if an employee leaves City service without retiree medical coverage, gets divorced, terminates a
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domestic partnership or is otherwise unable to take
advantage of surviving spouse premium contributions.

4. With the concurrence of the City Manager, if an employee is hired in the Senior Executive, Executive, Assistant Director, and Senior Management group on or after December 2, 1997, but before January 1, 2010, and has previously retired from active status from an agency served by PERS; and is within the first five years of service as a full-time permanent employee with the City of Beverly Hills; and was entitled to and receiving retiree medical benefits equal to the agency paying at least 25 percent of the premium for medical insurance for the employee; and that employee retires or separates from city service for any reason involving incapacitation or an inability to perform the duties of this employee’s position (expressly excludes but is not limited to voluntary retirement prior to the employee’s fifth anniversary of employment with the City of Beverly Hills and retirement in lieu of termination) then this employee shall be eligible for the benefit outlined in 3. Specifically, the City shall pay the cost of medical insurance premiums equal to the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the twoparty rate of the PERS Care Platinum plan under PERS.

B. Dental Insurance
The City shall provide one or more dental insurance plan(s) to active Senior Executive, Executive, Assistant Director, and Senior Management employees, the cost of which shall be borne by the City. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled. Upon retirement, Department Director, Assistant Department Director and Senior Management employees can continue in the City's dental plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document. The City reserves the right to modify or discontinue retiree dental based on availability, market conditions and other factors.

C. Life Insurance
Senior Executive, Executive, Assistant Department, Director and Senior Management employees shall be entitled to a three hundred thousand dollar ($300,000) term life insurance policy under the City's life insurance program. The full premium for such policy shall be paid for by the City under the life insurance program of its choosing. Each such employee shall have the option to purchase additional life insurance at the City's unit cost, if available.

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D. Disability Insurance
The City shall provide, at employees’ taxable expense, long-term disability insurance for Senior Executive, Executive, Assistant Director, and Senior Management employees. This benefit shall be mandatory for each Senior Executive, Executive, Assistant Director, and Senior Management employee. The disability plan will pay two thirds (66%) of the employee’s base pay, up to a maximum of $10,000 per month with a 90-day disability wait period.

E. Disability Leave - Extended Disability Base Pay and Benefits Continuance The City shall provide to each Senior Executive, Executive, Assistant Director, and Senior Management employee extended disability base pay and benefits (less legally required deductions) continuance in the event that an eligible employee sustains an injury or illness causing long term disability. This continuance shall be up to 90 days, as approved by the City Manager at his/her sole discretion, upon recommendation from the Director of Human Resources.

After this period, or upon the commencement of disability benefits from insurance provided pursuant to subsection D above, whichever occurs first, the City’s Extended Disability Base Pay and Benefits Continuance shall stop. To qualify for this pay and benefits continuance, an employee must notify the Risk Management Division in writing immediately upon becoming aware that an injury or illness may result in a long term disability. Risk Management Division, in consultation with the Human Resources Division, will contact the employee’s physicians and medical treatment centers as may be appropriate to determine the severity and scope of injury/illness and probable length of absence of the employee. The employee must also make himself or herself available for examination by a City appointed physician (at City expense). The employee must file for disability insurance within the prescribed insurance required time-lines and provide the City with a written statement from a physician, satisfactory to the Risk Manager, detailing the employee’s injury or illness and recommending disability leave.

No Extended Disability Base Pay and Benefits Continuance shall be granted for employees if they do not follow the procedures as set forth in this section or do not qualify for disability insurance.

Employees covered under this program shall not receive a monetary amount greater than they would normally receive if they had been working under normal conditions. Any disability indemnity received by the employee from the State of California for the purpose of insuring a weekly or monthly income as the result of the same work incurred injury for which the Amended and Restated
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employee is receiving Extended Disability Base Pay and Benefits Continuance from the City shall be paid to the City.

F. Optical Insurance
The City shall provide one or more optical insurance plan(s) to active Senior Executive, Executive, Assistant Director, and Senior Management employees, the cost of which shall be borne by the City. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled. Upon retirement, Senior Executive, Executive, Assistant Director and Senior Management employees can continue in the City's optical plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue the retiree optical plan based on availability, market conditions and other factors.

VI. MEDICAL INSURANCE BENEFIT AND FLEXIBLE BENEFITS (CAFETERIA) PLAN
As of January 1, 2010, the provisions of this Section VI shall be applicable to Senior Executive, Executive, Assistant Directors, and Senior Management Employees.

The City shall contribute the PERS statutory minimum toward the cost of providing medical insurance on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant.

In addition, in order to enhance the City’s Flexible Benefits (Cafeteria) Plan, as of January 1, 2010, the City shall provide a monthly benefit contribution (in addition to the PERS statutory minimum contribution to medical insurance for all participants) to each current Senior Executive, Executive, Assistant Director and Senior Management employee to use to pay for employee selected I.R.S. qualified benefits as detailed in this Section. The amount of the monthly benefit will be equal to the combined cost of the PERS Care Platinum family medical (minus statutory minimum contribution being made by the City), the enhanced family dental and the enhanced family vision plans as of January 1, 2010 and on each January 1 thereafter through calendar year 2015 (ending December 31, 2015). (Where more than one plan is offered in a particular category of coverage, “enhanced” designates the plan with the greatest premium.) Effective January 1, 2022, the monthly benefit, including the PERS Statutory minimum, will be $2,250.00 for the purchase of the eligible medical, dental and optical insurance benefits. If employees subject to the Management and Professional Employees Association MOU receive any future increase to the monthly benefit contribution, employees covered by this compensation plan shall receive the same increase, subject to the following exceptions: (1) such Amended and Restated
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increase shall not affect the amount employees are permitted to receive as a taxable cash payment (referred to in the next paragraph); and (2) such increase shall not affect the amount employees receive for family coverage.

If after selection of the various I.R.S. qualified benefits as detailed in this section, an employee has benefit contribution left over, the employee shall receive, in a taxable cash payment added to his or her bi-weekly payroll, that amount as determined by the difference between the employee’s selected benefits and the monthly benefit amount, subject to a maximum limit of $600.

However, any employee who made elections prior to January 1, 2010 for the 2010 plan year resulting in a taxable cash payment in excess of the maximum limit of $600 may continue the receipt of cash in excess of $600 until the earlier of (1) the end of the 2010 plan year or (2) any change in, revocation of or making of a new election under this benefit. If an employee “spends” more than what is allocated by the City in the Flexible Benefits (Cafeteria) Plan monthly allotment, the difference shall be deducted from that employee’s pay on a bimonthly basis. Terms will be as specified in the applicable plan document(s) and any conflict will be resolved in favor of the plan document.

The various I.R.S. qualified benefits offered by the City are as follows:

A. Medical Insurance
The City shall provide a medical insurance program to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents claimed. Eligible new hires are covered under the program on the first day of the month following the employee’s hire date.

In the event an employee covered by this compensation plan is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(I) of this Plan, the City shall pay the employee’s applicable cafeteria plan contribution amount for one month for each full year of said employee's City service or major portion thereof.

The City shall pay the applicable cafeteria plan contribution amount for employees covered by this compensation plan and dependents, if any, during the continuous periods of an employee's unpaid absence if caused by an injury or job related illness while on duty. The payment shall be at the rate of one month's applicable cafeteria plan contribution for each full year of said employee’s City service or major portion thereof.

The City's present medical insurance plan is the CalPERS medical insurance plan.

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B. Dental Insurance
The City shall provide a choice of one or more dental insurance plans to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled and the level of plan services.

C. Optical Insurance
The City shall provide one or more optical insurance plans to employees covered by this compensation plan. The cost of the coverage may vary, contingent upon the number of dependents and/or spouse or domestic partner enrolled.

VII. OTHER BENEFITS
As of January 1, 2010, the provisions of this Section VII shall be applicable to Senior Executive, Executive, Assistant Department Directors, and Senior Management Employees.

A. Life Insurance
Employees covered by this section shall be entitled to a three hundred thousand dollar ($300,000) term life insurance policy under the City's life insurance program. The premium for such policy shall be paid for by the City under the life insurance program of its choosing. Each such employee shall have the option to purchase additional life insurance at the City's unit cost, if available.

B. Disability Insurance
The City shall contract for a long-term disability insurance plan for employees covered by this section. Each employee covered by this section shall be required to participate in the long-term disability insurance plan at his or her own expense. The disability plan will pay two thirds (66%) of the employee’s base pay, up to a maximum of $15,000 per month with a thirty (30) day disability wait period.

C. Disability Leave - Extended Disability Base Pay and Benefits Continuance The City may provide to each employee covered by this compensation plan employee base pay and benefits (less legally required deductions) during a thirty-day period after the employee sustains an injury or illness causing long term disability, but before the employee receives benefits from any long term disability insurance policy. The decision whether to provide base pay and benefits during this thirty-day period shall be made by the City Amended and Restated
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Manager, at the City Manager’s sole discretion, based upon medical information certified by a competent physician. To qualify for this base pay and benefits, the employee must notify the City Manager or the City Manager’s designee, in writing, immediately upon becoming aware that an injury or illness may result in a long-term disability and the employee must apply for disability insurance benefits as required by the disability insurance plan referenced in paragraph B above. Additionally, upon request by the City Manager or the City Manager’s designee, the employee shall provide the City with a written statement from a physician, satisfactory to the City Manager or the City Manager’s designee, detailing the employee’s injury or illness and recommending disability leave. Upon authorization from the employee, the City Manager or the City Manager’s designee may request additional information from the employee’s physicians and medical treatment providers, as may be appropriate, to determine the severity and scope of injury/illness and probable length of absence of the employee. The employee must also make himself or herself available for examination by a City-appointed physician at City expense.

No base pay or benefits shall be provided to the employee pursuant to this Paragraph C except in accordance with the procedures set forth in this Paragraph C. Nor shall any benefits be provided pursuant to this Paragraph C unless the employee qualifies for benefits under the long-term disability insurance plan referenced in Paragraph B above.

Nothing in this Paragraph C shall entitle the employee to total compensation that exceeds the base pay and benefits provided to the employee in the absence of a disability. Any disability indemnity received by the employee from the State of California intended to cover the period for which the employee has received base pay and benefits pursuant to this Paragraph C, shall be paid to the City.

D. Retirement Medical Benefit

1. For employees retiring (service retirement only) from the City of Beverly Hills after July 1, 1981, with the exception of those employees hired as a Senior Executive, Executive, Assistant Department Director, and/or a Senior Management employee on or after December 2, 1997 and with the exception of those employees who promote into the Executive Employee group on or after December 2, 1997, the City shall continue to pay the difference between the PERS statutory minimum and the actual cost of medical insurance premiums up to the two-party rate of the PERS Care Platinum Plan under PERS. In the event of the death of a retired employee, the City shall continue to pay the difference between the PERS statutory minimum and the actual cost of medical insurance premiums up to the one-party rate of the PERS Care Platinum Plan under PERS for the spouse or registered domestic partner.

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2. For employees hired as a Senior Executive, Executive, Assistant Department Director and/or a Senior Management employee on or after December 2, 1997 or who promote into the Executive Employee group on or after December 2, 1997, but on or before December 31, 2009, the retiree medical insurance benefit shall be as follows:
a) Employee must complete a minimum of 5 years of full-time employment with the City of Beverly Hills; and
b) Receive a service retirement from the City of Beverly Hills; and c) Remain continuously retired from the City of Beverly Hills without reinstatement to active status with PERS.

For retirees meeting these conditions, the City shall pay the difference between the PERS statutory minimum and the actual cost of medical insurance up to the two-party rate of the PERS Care Platinum plan under PERS:
i) A spouse includes any marriage, domestic partnership or civil union partner eligible for coverage under the applicable plan documents, such as a spouse, husband, wife or registered domestic partner.
ii) An employee must elect City premium contributions above the statutory minimum for a surviving spouse upon the spouse first being eligible for coverage under the City’s plan, at a cost of $10.00 per month while employed and paid by payroll deduction based on a reduction in the City’s contribution toward coverage above the statutory minimum. Typically, election will occur at initial employment in the Executive Employee Group or at the date of a subsequent marriage or domestic partnership. An employee who does not timely elect and pay the $10 monthly charge may not later elect surviving spouse premium
contributions. The employee payments are not refundable, even if an employee leaves City service without retiree medical coverage, gets divorced, terminates a domestic partnership or is otherwise unable to take advantage of surviving spouse
premium contributions.

3. With the concurrence of the City Manager, if an employee is hired as a Senior Executive, Executive, Assistant Director, or Senior Management employee on or after December 2, 1997 but before January 1, 2010, and has previously retired from active status from an agency served by PERS; and is within the first five years of Amended and Restated
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service as a full-time permanent employee with the City of Beverly Hills; and was entitled to and receiving retiree medical benefits from another agency equal to the agency paying at least 25 percent of the premium for medical insurance for the employee; and that employee retires or separates from city service for any reason involving incapacitation or an inability to perform the duties of this employee’s position (expressly excludes but is not limited to voluntary retirement prior to the employee’s fifth anniversary of employment with the City of Beverly Hills and retirement in lieu of termination) then this employee shall be eligible for the benefit outlined in Subsection 2, above. Specifically, the City shall pay the difference between the minimum required under Government Code Section 22892 (b) or its successor and the actual cost of medical insurance up to the twoparty rate of the PERS Care Platinum plan.

4. Employees Hired on or after January 1, 2010:

As provided above in Section VI, effective January 1, 2010, the City will contribute, based on a qualifying retirement, the PERS statutory minimum on behalf of each participant in the program who has retired from City service.

In addition, for employees hired as a Senior Executive, Executive, Assistant Department Director, and/or a Senior Management employee on or after January 1, 2010, in lieu of additional retiree medical insurance benefits, the City shall, while the employees are working for the City, contribute $1,375.00 per month, or such amount as the City Council may establish from time-to-time, into a tax deferred IRS allowed account on behalf of such employees. The assets in the tax deferred account will be vested after one year of service. This plan will be portable at the time the employee separates from City service. Terms of the plan will be determined by the plan document adopted by the City Council.

Employees who promote into the Executive Employee group on or after January 1, 2010, who were City employees as of December 31, 2009, will receive retiree medical benefits (based on their years of service with the City) in accordance with the benefits and plan under which they were covered immediately prior to the promotion.

An employee promoted to Fire Chief or Deputy Fire Chief from the sworn fire group after December 29, 2012, who is a “Member” of the Beverly Hills Firemen’s Association Post-Retirement Medical Benefit Plan and Trust (“Association Plan”), as defined in the Association Plan, on the date of promotion and who would be eligible for postretirement benefits under the Association Plan as a “Participant,” as Amended and Restated
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defined in the Association Plan, except for the fact that the employee will no longer be a Member solely as a result of the promotion, will receive a substitute benefit consisting of the same benefit under the same terms as provided to other employees promoted to the Executive Employee group between December 2, 1997 and
December 31, 2009, as provided in Section VII, Paragraph D, SubParagraph 2, above. The benefit applicable to the Fire Chief and Deputy Fire Chief under this paragraph is operative until December 31, 2033 and will sunset after that date, if not sooner modified or terminated.

Employees hired before January 1, 2010 may choose an Alternative Retiree Medical Program instead of their current retiree medical benefit plan. This choice will include a lump sum payment (value of payment to be determined by the City Council following receipt and review of an actuarial study). If the employee chooses the Alternative Retiree Medical Program, the employee will not be able to request reinstatement to the former (pre-2010) benefit plan. Any additional terms involved in making the choice will be determined by the City Council. Terms of the plan will be determined by the plan document adopted by the City Council.

5. The provisions of this Paragraph D shall not apply to those employees who have voluntarily elected to participate in the City’s Alternative Retirement Medical Plan (“ARMP”). Instead, retirement medical benefits will be governed by the ARMP.

E. Retirement Dental Benefit
Upon retirement, Employees covered by this compensation plan can continue in the City's dental plans, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue retiree dental based on availability, market conditions and other factors.

F. Retirement Optical Benefit
Upon retirement, Employees covered by this compensation plan can continue in the City's optical plan, at their own expense to the extent and subject to the terms and conditions of the then-applicable plan document.

The City reserves the right to modify or discontinue retiree optical based on availability, market conditions and other factors.

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G. Mileage Reimbursement
Since Executive Employees are not provided auto allowances, executive employees will be allowed a mileage reimbursement benefit, as was effective October 1, 2007. This benefit is for city related travel in an employee’s private vehicle at the prevailing rate as set by the Finance Department. Mileage reimbursement will begin after the employee has traveled 25 miles or more in a single day. This 25 mile exemption rule will be waived for overnight training or conference travel. For example, if an employee drives 35 miles in a day on City business- that employee would be eligible for mileage reimbursement of 10 miles (35-25=10). If an employee travels to San Diego for a training session or conference and stays over night, and the employee’s total mileage is 250 miles, the employee would get a mileage reimbursement of 250 miles. All executive employees must submit City approved forms for reimbursement. All reimbursements must be submitted no later than 3 months after the final day of travel. The Director of Finance shall be responsible for administering and interpreting this benefit.

VIII. SALARIES AND ANNUAL SALARY INCREASES
The City’s policy is to maintain a competitive pay structure that enables attraction and retention of highly experienced and effective Senior Executive, Executive, Assistant Directors, and Senior Managers.

The salary schedule for classifications represented in this Compensation Plan consists of four bands. Each band has a minimum and maximum salary with a forty-five percent (45%) differential from the minimum to the maximum, except for the Senior Management band which has a fifty-two (52%) differential between the minimum and maximum salary. The differential between each range is twenty-two percent (22%) applied to the maximum salary. Individuals in classifications covered under this Compensation Plan will be compensated at a base rate of pay equal or above the minimum of the approved salary range, and not at a base rate of pay that would exceed the maximum of the approved salary range. The Salary Schedule is identified in Appendix A.

Effective the pay period including October 1, 2021, employees will receive a base salary increase of two percent (2.0%).

Effective the pay period including October 1, 2022, employees will receive a base salary increase of two percent (2.0%).

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A. Salary Schedule Modifications
The salary schedule may be modified upon approval of the City Council.

Considerations for salary schedule modification may include one or more of the following:
 Increasing the salary structure based on a cost of living adjustment using the Consumer Price index data provided by the Bureau of Labor Statistics. Data will be reviewed using a 12 month average;  Increasing the salary structure to correspond to any negotiated increases of the City’s Management and Professional Employees Association;
 Increasing or decreasing the salary range differentials and/or the differential between ranges.

B. Placement of Classifications within the Salary Structure  Classifications are placed within the salary structure as identified in Appendix A.
 Modifications to classification placement require City Manager recommendation and City Council approval.
 Modifications to the placement of classifications within the Salary Structure may be based on any one of the following or a combination of the following:
o Difficulty in Recruitment of highly experienced individuals with qualifications exceeding minimum standards for the classification; o Market data of comparable agencies. The City Manager shall determine the procedures used to conduct a market survey.

Market surveys are conducted to provide salary and total compensation data that will be evaluated against the City of Beverly Hills salary and total compensation data which may support modifications to the salary structure.

C. Salary Placement for Individuals Upon Hire or Promotion Salary placement will be at least the minimum established salary of the classification. Placement above the minimum may be made at the discretion of the City Manager. Placement above the minimum or movement within the salary range shall be considered when the individual appointed or promoted: exceeds the minimum qualification and/or Amended and Restated
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experience of the position; the individual holds specialized certifications, licenses, skills, and/or abilities that would be beneficial to the City; and/or any other job-related factor that the City Manager deems relevant to the position and to the service of the City. In no case may an individual be compensated at a base salary above the approved maximum salary on the salary schedule.

D. Salary Adjustments to Individuals
The City Manager may authorize a salary adjustment to any individual during their service to the City. This salary adjustment is authorized at the sole discretion of the City Manager and is effective at the beginning of a pay period as identified by the City Manager. Consideration for an annual salary adjustment is generally made in conjunction with an annual performance evaluation although the City Manager may approve a salary adjustment at any time. For Assistant Directors and Senior Managers, a Senior Executive or Executive may submit a recommendation to the City Manager for consideration of the authorization for a salary adjustment. The salary adjustment may not result in an individual exceeding the maximum salary of the established salary range for his/her classification.

IX. WELLNESS PAY
Effective the pay period including October 1, 2021, the City agrees that employees will receive one- and one-half percent (1.5%) of each employee’s annual base pay for wellness pay. However, if the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% (the 2020-2021 rate), employees covered by this compensation plan will cost share (in accordance with Government Code section 20516(f)) as follows:

Classic Employees: One-half (1/2) of the amount by which the Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 0.5% of compensation earnable.

New Members as defined by the Public Employees’ Pension Reform Act of 2013: One-half (1/2) of the amount by which the Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 0.5% of pensionable compensation.

This cost share would be effective the first day of the pay period including October 1, 2021. For example, if the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate increases to 10.903% (a 0.6% increase), employees will cost share 0.3%. If the City’s Fiscal Year 2021- 2022 Employer Miscellaneous Normal Cost Rate increases to 12% (which is more than 1% above the 2020-2021 rate), the employees shall cost share Amended and Restated
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0.5%, the maximum amount. Rate increases will be applied to the one thousandth of a percent. If there is rounding necessary, the City will round up.

Effective the pay period including October 1, 2022, the City agrees that employees will receive an additional one half of one percent (0.5%) (for a total of 2.0% of annual base pay) for wellness pay. However, if the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303%, (the 2020-2021 Rate) employees covered by this compensation plan will cost share on an ongoing basis (in accordance with Government Code section 20516(f)) as follows:

Classic Employees: One-half (1/2) of the amount by which the Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 1.0% of compensation earnable.

New Members as defined by the Public Employees’ Pension Reform Act of 2013: One-half (1/2) of the amount by which the Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate exceeds

10.303% up to a maximum of 1.0% of pensionable compensation.

This cost share would be effective the first day of the pay period including October 1, 2022. For example, if the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate increases to 11.503% (a 1.2% increase over the 2020-2021 rate), employees will cost share 0.6% on an ongoing basis. If the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate increases to 12.5% (which is more than 2% above the 2020-2021 rate), the employees shall cost share 1.0%, the maximum amount. Rate increases will be applied to the one thousandth of a percent. If there is rounding necessary, the City will round up.

If the City’s Fiscal Year 2022-2023 Employer Miscellaneous Normal Cost Rate is lower than the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate, the employees will cost share, on an ongoing basis, the amount they started to cost share at the beginning of the pay period including October 1, 2021, but it will not be reduced. If the City’s Fiscal Year 2022- 2023 Employer Miscellaneous Normal Cost Rate is higher than the City’s Fiscal Year 2021-2022 Employer Miscellaneous Normal Cost Rate, the employees will cost share as described above effective October 1, 2022 on an ongoing basis, but not in addition to the amount of the cost share the employees will be pay beginning with the pay period including October 1, 2021. The maximum cost share an employee can pay effective October 1, 2022 is one percent (1.0%).

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X. PAY FOR PERFORMANCE PROGRAM
Individuals covered under the Compensation Plan are expected to strive to meet and exceed the established goals and objectives set by the City Council. For those individuals who exceed the expectations set by the City Council and/or City Manager, a Pay for Performance Program has been established. The rules, regulations and eligibility criteria related to the Pay for Performance program may be further detailed in an Administrative Regulation approved by the City Manager. The Human Resources Department will assist the City Manager in the administration of this program.

The City Manager is authorized to allot Pay for Performance amounts that total no more than five percent (5%) of the combined annual base salary for all employees covered by this compensation plan as of June 30th of the immediately preceding fiscal year. The Pay for Performance payment is separate from and addition to base salary. The Pay for Performance payment to an individual will be a lump sum amount determined by the City Manager based on the performance in the prior twelve months and may only be considered as part of the employees’ annual performance evaluation. Employees are eligible for a lump sum payment up to ten percent (10%) of their base salary. Pay for performance awards are provided with the first full pay period following receipt by Human Resources of the employees performance evaluation and approval of the City Manager.

XI. UNIFORM ALLOWANCES
The Police ChiefChief of Police, Fire Chief, Assistant Chief of Police and Deputy Fire Chief shall receive $600.00 annual uniform allowances.

XII. RETIREMENT
A. For “Classic Members” as Defined by PERS and the Public Employees’ Pension Reform Act of 2013 (PEPRA)
The City’s Retirement contract with PERS is at the 2.5% at 55 rate for miscellaneous employees and 3% at 50 for local safety employees hired on or before June 30, 2012 (Police ChiefChief of Police, Fire Chief, Assistant Chief of Police and Deputy Fire Chief).

The City amended its contract with PERS for local safety employees (Police Chief, Fire Chief, Assistant Chief of Police and Deputy Fire Chief) hired by the City after June 30, 2012 to provide a 3% at 55 rate and to use three year average final compensation as set forth in Government Code Section 20037.

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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Classic members will pay their 8% (miscellaneous) or 9% (safety) member contributions effective on the first day of the first full pay period following February 1, 2015.

B. For “New Members” as Defined by PERS and PEPRA
The retirement formula is the miscellaneous reform plan of 2% @ 62 and the applicable safety reform plan with final compensation based on the highest annual average compensation earnable over three consecutive years, as provided in the retirement law.

New Members are responsible for paying the employee contribution of onehalf of the total normal cost of the plan, as defined by CalPERS. This amount is determined and may be changed by CalPERS from time-to-time.

In addition, new members will pay an additional amount for their retirement contribution as cost sharing in accordance with Government Code section 20516. That amount will be the difference between half the normal cost amount and either 8% for miscellaneous members (so that their total retirement contribution will be 8%) or 9% for safety members (so their total retirement contribution will be 9%). This cost sharing will be effective on the first day of the first full pay period following February 1, 2015.

C. 1959 Survivor Benefit
The City’s contract with the Public Employees Retirement System provides for Level 4 coverage under the 1959 Survivor Benefit.

D. The City’s contract with the Public Employees Retirement System provides for Pre-Retirement Optional Settlement 2W Death Benefit as set forth in Government Code Section 21548.

E. All PERS benefits shall be provided in accord with the requirements of the Public Employees’ Retirement Law, commencing at Government Code §20000, and all applicable regulations and procedures of PERS, which shall prevail in the event of conflict with the provisions of this compensation plan.

XIII. SEPARATION FROM CITY SERVICE
A. Sick Leave Pay-Off
All accrued, unused sick leave earned and credited to each employee shall be the basis for determining the amount to be paid to each employee who qualifies to receive sick leave pay-off.

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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Employees covered by this compensation plan who have achieved seven (7) or more years of continuous service and are listed on the City's active payroll on or after July 1, 1982, shall be eligible for sick leave pay-off upon termination of employment with the City, in accordance with the following.

The rate of sick leave pay-off shall be calculated as follows:
- For the first 7 years - 4% of accrued, unused sick leave per full year of service.
- For each year thereafter - 6% of accrued, unused sick leave per full year of service to a maximum of 100%.
- Sick leave pay-off shall be calculated at the rate of base pay received by the employee at the time of termination. Each employee eligible to receive sick leave pay-off shall receive said pay-off at the time of termination.

B. Vacation and Administrative Leave Pay-Off
An employee who terminates from City service shall receive an amount equal to accrued, unused vacation at the time of termination. The rate of pay off shall be based on the rate of base pay received by the employee at the time of termination. An employee does not have the option of utilizing accrued, unused vacation in lieu of vacation pay-off at time of termination.

An employee who terminates from City service shall receive an amount equal to accrued, unused Administrative Leave at the time of termination.

C. Notice of Termination/Severance
If the City determines to terminate an employee without cause (cause shall mean termination for conviction of a felony, or for malfeasance in office) after one full year of Executive Employee service the, City shall provide a Senior Executive or Executive employee with four (4) to twelve (12) months prior notice of the termination date; and shall provide an Assistant Director or a Senior Management employee with three (3) to eight (8) months prior notice of the termination date. The amount of notice within the applicable range shall be in the City Manager’s discretion. In lieu of providing the required notice above, the City Manager in his/her discretion may pay the eligible employee severance (severance shall include salary and benefits) at the rate of four (4) to twelve (12) months’ severance for a Senior Executive or Executive employee; and three (3) to eight (8) months’ severance for an Assistant Director or a Senior Management employee.

The minimum amount of severance may be granted within the City Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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Manager’s discretion. The City Manager may grant severance above the minimum within the specified range only with City Council concurrence.

XIV. DEFERRED COMPENSATION
A. City Contribution
Effective October 2021, the City shall contribute at least $50.00 per month per Senior Executive, Executive, Assistant Director, and Senior Management employee to the City's deferred compensation program. If the employees covered by the Management and Professional Employees Association MOU receive an increase to the City’s monthly contribution to the deferred compensation program, employees covered by this compensation plan shall receive the same increase.

B. Conversion of Sick Leave to Deferred Compensation
Employees covered by this compensation plan may convert accumulated sick leave to base pay. The extra pay may only be used to fund “catch up” contributions to deferred compensation. The following restrictions apply to this program.
1) The employee shall have a minimum of 7 years of service with the City of Beverly Hills.
2) The individual’s sick leave accrual cannot be reduced below 240 hours.
3) The conversion is limited to the shorter of three consecutive years or the time period allowed by the IRS for “catch-up” provisions in 457, 401(k) and other plans as adopted by the City and the conversion can be used only for funding these deferred compensation “catchups”.Contribution amounts and deferral limits will be governed by IRS Code restrictions and the deferred compensation plan rules related to “catch-up” contributions.
4) A conversion of no more than the amount which will bring the annual deferral to the maximum permitted by law is allowed.
5) The conversion will be at the then existing sick leave payoff percentage.

Amended and Restated
Executive Employee Compensation Plan
(06/01/2021)
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EXECUTIVE AND SENIOR MANAGEMENT COMPENSATION PLAN
Effective 09/25/2021
Salary
Band
Band Name Classification Monthly
Band
Minimum
Band
Maximum
A Senior
Management
Assistant City Clerk
Chief Communications Officer
City Architect
Deputy Director of Rent Stabilization
Deputy Director of Police Special Projects
$11,158 $16,953
B Assistant
Directors
Assistant Chief Information Officer
Assistant Director of Community Development/Building
Official
Assistant Director of Community Services
Assistant Director of Finance
Assistant Director of Human Resources
Assistant Director of Public Works/City Engineer
City Planner
Deputy Director of Public Works/Operations
Utilities General Manager
$14,241 $20,607
C Executives Assistant Chief of Police
Chief Information Officer
Deputy City Manager
Deputy Fire Chief
Director of Community Development
Director of Community Services
Director of Finance
Director of Human Resources
Director of Public Works
$17,310 $25,048
D Senior
Executives
Assistant City Manager
Chief of Police
Fire Chief
$21,040 $30,447
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1 May 31, 2022
Mr. Jeff S. Muir
Director of Finance
City of Beverly Hills
455 North Rexford Drive
Beverly Hills, CA 90210
Dear Mr. Muir:

We have performed the procedures described below solely to assist the City of Beverly Hills (City) with assessing the changes in the Amended and Restated Executive Employee Compensation Plan, tentative agreement dated June 14, 2022 (Amended EECP).

We obtained from the City management the summary spreadsheet titled “Summary EECP" and the Amended EECP. We traced the terms of the Amended EECP to the Summary EECP and evaluated management’s assertions that the identified changes in the Amended EECP did not have a cost impact to the Executive Compensation Plan, dated June 1, 2021.

We noted no changes to management’s assertions in their evaluation of the Amended EECP.

This engagement was conducted in accordance with the American Institute of Certified Public Accountants (AICPA) standards for consulting services. Those standards require that we undertake only those professional services that the member or the member's firm can reasonably expect to be completed with professional competence, exercise due professional care in the performance of professional services, adequately plan and supervise the performance of professional services, and obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed. The sufficiency of the procedures performed by MGO is the responsibility of the City. The City provided the workbook and amended MOUs and MGO is not responsible for the accuracy of those documents. We make no representation regarding the sufficiency of the procedures described above either for the purpose for which this report has been requested or for any other purpose.

We were not engaged to, and did not conduct an audit or examination, the objective of which would be the expression of an opinion on the calculations and the related accounting records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than the specified party.

San Diego, California