COMPENSATION AND BENEFITS PLAN
FOR
CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
MANAGEMENT EMPLOYEES
Effective May 1, 2025
1 TABLE OF CONTENTS
Section 1 - Wages ....................................................................................................................................3 Section 2 - Retirement..............................................................................................................................3 Section 3 - Probationary Period and Merit Increases...............................................................................5 Section 4 - Public Safety Management Special Pay and Allowance........................................................8 Section 5 - City Provided Vehicles and Vehicle Allowances ....................................................................8 Section 6 - Sick Leave Payment ..............................................................................................................8 Section 7 - Flexible Benefits Plan.............................................................................................................9 Section 8 - Long Term Disability ............................................................................................................10 Section 9 - Life Insurance.......................................................................................................................10 Section 10 – VEBA (Voluntary Employee Beneficiary Association) Program ........................................11 Section 11 - Deferred Compensation Plan.............................................................................................13 Section 12 – 401(a)(h) Plan ...................................................................................................................13 Section 13 - Pay for Temporary Assignment..........................................................................................14 Section 14 - Miscellaneous Pays and Allowances .................................................................................14 Section 15 – Longevity Recognition Plan...............................................................................................15 ARTICLE II HOLIDAYS..............................................................................................................................17 Section 1 - Official City/District Holidays ................................................................................................17 Section 2 – Holiday In-Lieu Pay .............................................................................................................18 ARTICLE III VACATION AND OTHER LEAVES.......................................................................................18 Section 1 - Vacation Accrual & Use .......................................................................................................19 Section 2 - Administrative Leave............................................................................................................21 Section 3 – Recognition Leaves.............................................................................................................21 Section 5 - Sick Leave Accrual & Use....................................................................................................22 Section 6 - Industrial Disability Leave ....................................................................................................23 Section 7 - Educational Release Time ...................................................................................................23 EFFECTIVE DATE.........................................................................................................18 ATTACHMENT A – FY 2024 – 2025 Pay Plan for Management Classifications………....19 2 COMPENSATION AND BENEFITS PLAN
FOR
CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
MANAGEMENT EMPLOYEES
(Unrepresented)
The City of Foster City/Estero Municipal Improvement District (hereinafter called "City/District") provides the following wages, hours, and other terms and conditions of employment to its Management Group (hereinafter called “Management Group,” “Management Employees”, or “Employees”) as described in this Compensation and Benefits Plan (hereinafter called the “Plan”).
ARTICLE I
WAGES AND BENEFITS
Section 1 - Wages
1.1 Effective July 1, 2025, an across-the-board increase to base salary for all management classifications of a percentage movement of the SF-Bay Area CPI- U April 2024 to April 2025 (Urban) with a minimum of three percent (3.0%) and a maximum of five percent (5.0%)
1.2 Effective July 1, 2026, an across-the-board increase to base salary for all management classifications of a percentage movement of the SF-Bay Area CPI- U April 2025 to April 2026 (Urban) with a minimum of three percent (3.0%) and a maximum of five percent (5.0%)
1.3 Effective July 1, 2027, an across-the-board increase to base salary for all management classifications of a percentage movement of the SF-Bay Area CPI-U April 2026 to April 2027 (Urban) with a minimum of three percent (3.0%) and a maximum of five percent (5.0%)
1.4 Effective July 1, 2028, an across-the-board increase to base salary for all management classifications of a percentage movement of the SF-Bay Area CPI-U April 2026 to April 2027 (Urban) with a minimum of three percent (3.0%) and a maximum of five percent (5.0%)
Section 2 - Retirement
2.1 The City/District contracted with the Public Employees Retirement System (P.E.R.S.) to provide the 2.7% @ 55 retirement plan for miscellaneous Employees effective October 1, 2007. Effective January 1, 2013, the City/District no longer offered the 2.7% @ 55 retirement benefit formula to new Employees. All miscellaneous Employees hired on or before December 31, 2012, will continue to be afforded the 2.7% @ 55 retirement benefit formula. Effective January 1, 2013, the Public Employees Pension Reform Act (PEPRA) requires new miscellaneous Employees to enroll in the 2% @ 62 retirement tier with pension calculated based 3 on the average highest annual compensation over a consecutive 36-month period.
This new retirement tier applies only to a new member. A new member is (a) someone who has never been in P.E.R.S. or a reciprocal retirement system or (b) someone previously in P.E.R.S. or a reciprocal retirement system, but who has a gap of at least six (6) months since being covered by any of those pension systems. P.E.R.S. refers to employees hired before January 1, 2013, as classic members.
Miscellaneous Employees Hire Date
Retirement
Benefit Formula
On or before 12/31/2012 2.7% @ 55
"Classic Member" on or after 1/1/2013 2.7% @ 55
"New Member" on or after 1/1/2013 2.0% @ 62
2.2 Miscellaneous and public safety Management Employees P.E.R.S. contributions shall be administered in accordance with Internal Revenue Code Section 414(h)(2).
2.3 The City/District shall contract with P.E.R.S. to provide the 4th Level of 1959 Survivor Benefits.
2.4 The City/District contracted with P.E.R.S. to provide the enhanced Public Safety retirement benefit formula 3% @ 50 (Section 21362.2) effective July 1, 2002 for Police Safety Managers. All Police Safety Managers hired on or before December 31, 2011 will continue to be afforded the 3% @ 50 retirement benefit formula.
Effective January 1, 2012, the City/District no longer offered the 3% @ 50 benefit formula to new Police Safety Managers. All Police Safety Managers hired on or after January 1, 2012 were afforded a 2% @ 50 retirement benefit formula.
Effective January 1, 2013, PEPRA requires new Police Safety Managers to enroll in a 2.7% @ 57 retirement tier with pension calculated based on the average highest annual compensation over a consecutive 36-month period. This new retirement tier applies only to a new member as defined in Section 2.1 above.
Public Safety Managers Hire Date
Retirement Benefit
Formula
On or before 12/31/2011 3.0% @ 50
On or after 1/1/2012 and before 1/1/2013 2.0% @ 50
"Classic Member" on or after 1/1/2013 2.0% @ 50
"New Member" on or after 1/1/2013 2.7% @ 57
2.5 The City/District shall continue to contract with P.E.R.S. to provide the Military Service Credit.
2.6 Effective April 1, 2022, the parties agree that Classic employees designated by CalPERS as Misc Employees and Public Safety Members will pay/contribute 0.5% toward the Employer’s PERS contribution rate.
4 Section 3 - Probationary Period and Merit Increases
3.1 Probationary Period - The initial probationary period for new hire Employees hired on or after May 1, 2025, shall be twelve (12) months of actual service.
The probationary period for a newly promoted employee shall be twelve (12) months of actual service.
Further provisions regarding probationary periods are found in the City/District Personnel Rules and Regulations (hereinafter called “City/District Personnel Rules”).
3.2 Merit Increases - Upon the satisfactory completion of six (6) months of the required probationary period, a merit increase to the next higher step in the salary range shall be granted to eligible Employees. Each twelve (12) months thereafter upon the anniversary of such first merit increase, and until the maximum pay range established for their job class has been reached, each Employee receiving a satisfactory performance evaluation shall receive a merit increase to the next higher step. Provided, however, that the Employee shall not receive annual merit increases beyond the maximum step of the salary range for the established job class.
Section 4 - Police Management Special Pay and Allowance
4.1 Uniform Allowance - The City/District shall provide an annual uniform purchase and maintenance allowance of $722 for each Public Safety Management Employee required to purchase and maintain a uniform. The City/District shall pay the uniform allowance in twenty-four (24) equal installments of thirty dollars and eight cents ($30.08) to eligible employees each payroll period.
Effective July 1, 2025, The City/District shall provide an annual uniform purchase and maintenance allowance of $900 for each Police Management Employee required to purchase and maintain a uniform. The City/District shall pay the uniform allowance in twenty-four (24) equal installments of thirty dollars and eight cents ($37.50) to eligible employees each payroll period.
4.2 Legal Defense Insurance - The City/District will provide annual legal defense coverage through the California Police Officers Association (CPOA) on a reimbursable basis. The cost of reimbursement for such coverage shall not exceed $250 per year.
4.3 Education Incentive Pay - Effective July 1, 2024, completion of the P.O.S.T.
Managerial Training curriculum or possession of a Master’s Degree shall qualify a Police Manager for a differential equivalent to seven percent (7%) of Police Sergeant base salary at top step. Pay shall commence upon approval of a request for incentive pay. Pay will not be retroactive to date of eligibility. 5 Section 5 - City Provided Vehicles and Vehicle Allowances
5.1 Employees in Executive Management classifications shall be provided with either a City vehicle or a vehicle allowance of $400 per month, as determined to be appropriate by the City/District Manager. Certain Employees in other Management classifications whose duties include response to emergencies outside the regular workday may also be assigned City vehicles or granted vehicle allowances at the discretion of the City/District Manager.
5.2 Employees using a City vehicle must sign a "Vehicle Use Declaration & Acknowledgement Form."
Section 6 - Sick Leave Payment
6.1 Employees who terminate their employment in good standing shall receive compensation for the prescribed value of unused sick leave at a rate of 25% of the prescribed value of unused sick leave upon termination.
6.2 Calculation of Unused Sick Leave Balance Values - The prescribed value of unused sick leave shall be calculated as follows:
a) Determine number of sick leave hours accrued upon separation. b) Calculate value of sick leave by multiplying the hours accrued at the Employee’s pay rate at separation by the percentage in section 8.1.
6.3 The rate of pay to be used for calculating the payment for sick leave shall be the rate of pay established in the City/District Personnel Rules.
6.4 When termination is caused by the death of the Employee, said pay for unused sick leave will be paid to the beneficiary the Employee has designated. In the event an Employee has not designated a beneficiary, the payment shall be made to the estate of the Employee.
Section 7 - Flexible Benefits Plan
7.1 Benefit eligible employees shall receive the city contribution toward their Flex Benefits when they have been in a paid status for each eligible paycheck on which the employee is paid for at least twenty (20) hours a week, or forty (40) hours, in the pay period. Employees who are paid less than the minimum number of hours in two consecutive eligible paychecks may continue their elected coverage limited to the city’s medical, dental, and vision plans for up to six (6) months or the period of time permitted by Consolidated Omnibus Budget Reconciliation Act (COBRA), whichever is greater, by personal remittance or other arrangement for payment of the full premiums of any insurance elected to be continued.
7.2 The City/District shall offer a Flexible Benefits Plan and make monthly contributions as an Employee benefits allowance for allocation to a health plan, dental plan, optional vision plan, health and/or dependent care flexible spending account, as follows:
6 Employee and Family
Members enrolled in Medical
Plan Choice:
Monthly
Amount
Effective
1/1/2025
No Plan $1517
Employee Only $1845
Employee + One $2391
Employee + Two or more $2981
Effective January 1, of each year of the Compensation Benefits Plan, the Employer’s contribution toward the Flexible Benefit Plan will be increased by the percentage increase in the CalPERS Kaiser Basic Premium Region 1 Rate.
7.3 Employees who have any leftover flexible benefit allowance available after deducting all selected plan premium amounts will receive the funds as wages subject to applicable tax withholdings.
7.4 Flexible Benefit Plan participants shall assume the third-party administration costs of the plan. A plan participant is defined as any person for whom the third- party administrator charges a fee.
7.5 The City/District shall contribute the minimum amount required under the P.E.R.S. Health Care Plan (PEMCHA) for active and retired Employees' medical insurance premiums.
7.6 Employees who opt out of health plan coverage provided through the City/District must annually provide proof of group insurance coverage through either a spouse or state-registered domestic partner, parent or guardian in order to be eligible for the “no plan” contribution amount in Section 7.2 Section 8 - Long Term Disability
8.1 The City/District shall pay the full amount to provide Long Term Disability (LTD) insurance for Management Employees.
Section 9 - Life Insurance
9.1 The City/District shall contribute the full amount to provide a term life insurance policy equal to the Employee's annual salary with a minimum coverage of $50,000 and a maximum coverage of $150,000, plus the same amount of Accidental Death and Dismemberment insurance for each Employee.
Section 10 – VEBA (Voluntary Employee Beneficiary Association) Program
10.1 The purpose of the VEBA (Voluntary Employee Beneficiary Account) Trust is to provide Employees with the ability to plan for future as well as current health care expenses. Expenses such as long-term care, unreimbursed medical premiums, copayments and pharmacy charges are all eligible expenses under a VEBA Trust arrangement. Employees will realize a significant benefit since eligible 7 contributions to a VEBA Trust are tax exempt and the reimbursed expenses from the VEBA Trust are also tax exempt.
10.2 Eligibility Defined. Effective July 1, 2012, all eligible employees, who are members of the Management Group, may participate in the VEBA Trust. An eligible employee is an employee who is a member of the Management Group. Beginning July 1, 2012, all eligible employees had fifteen (15) days to “opt-in” or “opt-out” of the VEBA Trust. Elections to “opt-in” or “opt-out were irrevocable for the duration of the employee’s tenure within the Management Group. Participation is subject to and governed by all IRS requirements applicable to the VEBA Trust. Management Group Employees who elected to “opt-in” will make uniform monthly contributions and contributions upon separation as outlined below.
Employee Contributions. Participation in the VEBA Trust by an Employee who elects to “opt-in” requires a payroll deduction each pay period to fund the Employee’s account. The Management Group determined that contributions to the VEBA Trust are based on years of service in PERS or a reciprocal retirement plan and the contributions effective as of July 1, 2012, shall remain in effect for the duration of this Plan as follows:
Years of Service Contribution Amount Per Pay Period
0 to 5 $50.00
6 to 10 $100.00
11 to 15 $100.00
16 to 20 $150.00
21 to 25 $175.00
Over 25 years $225.00
Contributions made by an eligible Employee must be made through payroll deductions. Eligible Employees cannot make direct contributions to the VEBA Trust. Once separated from the City/District, the Employee can no longer make contributions to the VEBA Trust.
Leave Payout
Sick Leave – as of July 1, 2012, upon retirement/separation of employment, 100% of the Employee’s sick leave balance payout (25% of the total dollar value per Section 8 of the Plan) shall be contributed into the Employee’s VEBA account.
Safety Management Employees are entitled to convert their unused sick leave balance to service credit with P.E.R.S. at the time of retirement. After this election, 100% of the Employee’s available sick leave balance payout (25% of the remaining balance) will be contributed to their VEBA account.
Vacation Leave – as of July 1, 2012, upon retirement/separation of employment, the Management Group determined the following vacation leave payouts will be contributed to the Employee’s VEBA account:
8 Years of Service Contribution Amount
0 to 5 50%
6 to 10 75%
11 to 15 75%
16 to 20 75%
21 to 25 100%
Over 25 years 100%
If an Employee elects to sell back any accrued vacation leave and/or contribute any accrued vacation leave to their 457 Plan account pursuant to Article III, Section
1.7, the VEBA vacation leave payout will be calculated by applying the contribution amount percentage shown in the table immediately above to the remaining balance of the Employee’s accrued vacation leave after the sell back and/or 457 Plan account contribution
Longevity Pay
100% of the longevity pay for those Public Safety Management Employees who participate in the VEBA Trust shall be contributed to their VEBA account.
Administrative Leave
100% of the balance shall be contributed into the Employee’s VEBA account.
New Employees or Newly Eligible Employees
Employees, whether new to the City/District or to the Management Group, who become eligible to participate in the VEBA Trust after July 1, 2012, will have fifteen (15) calendar days from the date of eligibility to elect whether they would like to “opt-in” or “opt-out” of the VEBA Trust. If a newly eligible Employee elects to “opt- in,” payroll deductions will begin in accordance with the Employee contribution amounts in this Plan. If a newly eligible Employee fails to make an election within fifteen (15) days from the date of plan eligibility, it will be deemed that the newly eligible Employee has elected to “opt-out.”
Participant Account
A separate account is maintained for each contributing eligible Employee which documents the Employee’s contributions and disbursements. Contributions to a VEBA Trust, as well as any disbursements to cover non-reimbursed post-tax medical care expenses, are both tax-free. Eligible benefits subject to reimbursement by the VEBA Trust shall be limited to long-term care expenses and non-reimbursed medical premiums, co-payments, prescribed drug expenses and other medical care costs as defined by internal Revenue Code Section 213.
An eligible Employee’s VEBA account is subject to a monthly administrative fee for expenses related to recordkeeping, claims processing and claims reimbursement. The fee will be deducted from the eligible Employee’s individual account.
If the Internal Revenue Service (IRS) concludes that the VEBA Trust does not qualify under the requirements of the Tax Code or no longer qualifies after initial 9 qualification, the City/District shall meet with the Management Employees and discuss options to bring the VEBA Trust into compliance or to discontinue the VEBA Trust.
The Management Group may discuss with the City Manager and, if approved by a majority of the Management Group, implement a retirement health savings program. Participation in a retirement health savings program would be mandatory for all Management Group members with contributions determined by the Management Group per side letter in accordance with current law.
Section 11 - Deferred Compensation Plan
11.1 The City/District shall offer a voluntary deferred compensation plan available to all Management Employees in accordance with Internal Revenue Code section 457.
Information about the 457 Plan options is available on the City/District’s intranet.
The plan year for Employee contributions to the 457 Plan is the calendar year, January 1 to December 31. The maximum voluntary contribution to any Employee’s account shall be that amount established by law.
Section 12 – 401(a)(h) Plan
12.1 Effective July 1, 2002, the 401(a)(h) plan was discontinued and when it was discontinued, “side car” contributions could no longer be made to the 401(a)(h).
The “side car” program continued and “side car” sick leave reserve balances could only be used as sick leave. Effective July 1, 2013, any remaining “side car” sick leave reserve balances were paid out as specified in Section 8 to Employees with remaining balances. The City/District contributed the “side car” funds directly into the Employees’ VEBA account, and the “side car” program no longer exists.
12.2 All Management Employees may participate in a voluntary 401(a) plan. Only Miscellaneous (non-Public Safety) Management Employees who elect to participate and who contribute a minimum of 1% of salary shall receive a City/District contribution to their account of 4% of salary.
The maximum voluntary contribution to any Employee’s account shall be that amount established by law.
Section 13 - Pay for Temporary/Special Assignment
13.1 An Employee appointed to a higher paid classification on an acting basis shall be paid at the first step of the higher pay range or at the step which is not less than 5% more than their base rate of pay, provided the duration of the assignment is for five (5) days or more for purposes other than vacation relief and the duties of the higher paid class are performed.
13.2 An Employee who performs a substantial portion of specially assigned work that includes duties, including but not limited to, supervising staff, special projects, or other work which may be deemed to be working outside of one’s specified job classification, that is otherwise not considered to be working in a higher class as specified above, shall be eligible to receive up to a 10% differential above the 10 Employee’s base rate of pay, subject to the prior approval of the department head and the City/District Manager. The special assignment must be for a period of not less than two weeks.
Section 14 - Miscellaneous Pay and Allowances
The City/District will reimburse, upon presentation of the proper documentation as outlined below, up to $200 per fiscal year (July 1 through June 30 of the following year) for the following items:
14.1 (a) Vision Care: appropriate receipts from a qualified optometrist and/or optician towards the cost of an Employee's eye examination, prescription eyeglasses, which may include sun/safety glasses, and/or contact lenses. To be eligible for the sun/safety eyewear benefit, employees must be employed in a classification where the primary duties are performed outdoors and using these items as protective eyewear for safety reasons to perform their job functions. (b) Corrective lens surgery (e.g., laser surgery) shall be reimbursable for a one- time reimbursement of $200.
(c) Professional Development: appropriate receipts for professional development expenses which may include the following: the cost of certificate programs, seminars, workshops, conferences; professional, civic, or community organizations; management-related books, tapes, or training programs.
Reimbursement for such expenses must be approved in advance by the City/District Manager. These expenses must be career/job related and not provided through any other budgetary means such as the City-wide training fund or departmental travel/meeting funds.
(d) Fitness Club (Gym) Membership: appropriate receipts for fitness club (gym) membership expenses including membership fees and monthly dues, class fees or any other fees paid to the fitness club (gym) or any other provider.
Reimbursement of any fitness club (gym) expense under this section is subject to Federal, State and Medicare taxes in accordance with IRS regulations.
14.2 Employees who work in the classifications of Building/Fleet Maintenance Manager, Fleet Supervisor, Public Works Superintendent, Public Works Manager, Parks Maintenance Supervisor, and Parks Maintenance Manager shall be paid $300 effective July 1, 2025, and every other year thereafter, for the purchase of safety- toed footwear complying with the Standard Test Methods for Foot Protection and Standard Specification for Performance Requirements for Foot Protection.
14.3 Employees who work in the classifications of Assistant Engineer, Associate Engineer, Senior Engineer, and Engineering Manager shall be paid $300 effective July 1, 2025, and every three years thereafter, for the purchase of safety-toed footwear complying with the Standard Test Methods for Foot Protection and Standard Specification for Performance Requirements for Foot Protection.
14.4 Effective July 1, 2025, employees who work in the classifications of Building/Fleet Maintenance Manager, Fleet Supervisor, Public Works Superintendent, Public 11 Works Manager, Parks Maintenance Supervisor, and Parks Maintenance Manager who possess and maintain a commercial class B or higher driver’s license shall be eligible for $200 a year certification pay for possessing such license. The city shall not be responsible for the payment of training, recertification, or medical examination to obtain, but will cover the cost of the medical examination to renew and maintain the license. However, an employee receiving this certification pay shall be subjected to the city’s commercial driver’s policy.
14.5 Effective July 1, 2025, employees who work in the classification of Parks Maintenance Supervisor and possess Certified Playground Safety Inspector (CPSI) certification and/or Pest Control Advisor license shall be eligible for a $300 year certification pay for possession of such certification or license.
14.6 Allowances provided in sections 14.1-14.5 are distributed as stated on a fiscal year basis (July 1 through June 30 of the following year). The benefit shall be offered to new employees upon hire, and promotion if the employee has been promoted from a classification that was not provided the benefit. The employee will then receive the benefit as stated within the applicable section.
Section 15 – Longevity Recognition Plan
15.1 The City/District provided a Longevity Recognition Plan in recognition of an Employee’s length of service with the City/District and that the City/District does not otherwise provide retiree medical benefits prior to October 1, 2007.
15.2 Employees who retired from the City/District as defined by P.E.R.S., whether for a normal retirement or an industrial disability retirement prior to October 1, 2007, receive a monthly benefits payment as outlined in the table below starting at the beginning of the first calendar month following retirement:
Years of Service Upon Retirement Monthly Benefit
Day 1, Year 10 through Year 14 $125
Day 1, Year 15 through Year 19 $200
Day 1, Year 20 through Year 24 $275
Day 1, Year 25 and thereafter $350
15.3 The monthly benefit as described in Section 15.2 is payable to the Employee up until the Employee’s death. Benefits shall cease on the first day of the calendar month following the Employee’s death.
15.4 Prior to implementation of the Longevity Recognition Plan, the City/District determined a third-party administrator was not necessary to establish and administer the plan. If the City/District makes a determination to the contrary in the future, such decision will be discussed with Employees prior to implementation. If a third-party administrator is used, any recurring administrative fees associated with administering the plan shall be paid by the participating employees. The City/District shall also strive to implement the Longevity Recognition Plan in 12 accordance with Internal Revenue Code statutes and in a manner that minimizes the tax liability of the Employee to the extent possible.
15.5 Effective October 1, 2007, upon implementation of the enhanced 2.7% @ 55 retirement formula for Miscellaneous Management Employees per Section 2.1, the Longevity Recognition Plan no longer applied to the Miscellaneous Management Employees except for Employees who retired prior to October 1, 2007. Future retirees forfeited any previously agreed to benefit under this provision which terminated one day prior to the implementation of the enhanced retirement formula.
15.6 On January 1, 2002, the City/District implemented a Longevity Recognition Plan for the Police Safety Managers. This plan was implemented in recognition of an employee’s length of service with the City/District and that the City/District does not otherwise provide retiree medical benefits. Effective January 1, 2012, this plan was eliminated for all newly hired Police Safety Managers. a. Police Safety Managers hired on or before December 31, 2011, who file for a P.E.R.S. retirement while employed with the City/District, whether for a normal retirement or an industrial disability retirement, shall receive a monthly benefit payment starting at the beginning of the first calendar month following retirement to be contributed, in whole or in part, at the discretion of the Employee, into the Employee’s VEBA account. The amount of entire benefit is dependent upon the Employee’s length of service, as follows:
Years of Service Upon Retirement % of
Maximum
Benefit
Monthly
Benefit
Amount
Day 1, Year 10 through Year 14 40% $140
Day 1, Year 15 through Year 19 60% $210
Day 1, Year 20 through Year 24 80% $275
Day 1, Year 25 and thereafter 100% $345
b. Police Safety Managers hired on or before December 31, 2011, before separation of employment, must opt for one of the following options for the proportion of their longevity pay to be contributed to the VEBA account:
0% 25% 50% 75% 100%
If the Employee fails to make an election before the Employee’s last day of employment, the entire amount of the longevity pay will be contributed into the VEBA.
c. The monthly benefit as described in Section 15.6(a) is payable to the Police Safety Manager up until the Employee’s death. Benefits shall cease on the first day of the calendar month following the Employee’s death. 13 d. Police Safety Managers hired on or after January 1, 2012, will not be eligible for the Longevity Recognition Plan.
ARTICLE II
HOLIDAYS
Section 1 - Official City/District Holidays
1.1 The following holidays are observed by the City/District:
New Year's Day, January 1st
Martin Luther King, Jr. Day, January 15th or its legal substitute (third Monday in January)
President’s Day, February 22nd or its legal substitute (third Monday in February) Memorial Day, May 31st or its legal substitute (last Monday in May) Juneteenth, June 19th
Independence Day, July 4th
Labor Day, first Monday in September
Veteran's Day, November 11th
Thanksgiving Day, fourth Thursday in November
Day after Thanksgiving, fourth Friday in November
Christmas Eve, December 24th
Christmas Day, December 25th
New Years’ Eve, December 31st
When any day recognized as a holiday fall on a Sunday, the holiday shall be observed on the following Monday. When any day recognized as a holiday fall on a Saturday, the holiday shall be observed on the preceding Friday.
With regards to the holidays on Christmas Eve (December 24) and New Years’ Eve (December 31) should either date fall on a Saturday or Sunday, the preceding Friday shall be observed. In the case where Christmas Day and/or New Years’ Day are observed on Friday, the corresponding Eve holiday shall be observed on Thursday.
For purposes of determining eligibility for premium pay for work on a holiday, the authorized holiday shall be defined as the day observed by the City/District as an official holiday in accordance with Article II Section 1.1, or as the actual date of the holiday, but not both.
Work on a Holiday – A non-FLSA exempt Employee who is required to work on an authorized holiday shall be compensated at their regular rate of one and one-half times the hours worked for the holiday.
Section 2 – Holiday In-Lieu Pay
2.1 Police Lieutenants and Captains shall receive holiday in-lieu pay in the amount of
5.78% of their base rate of pay in-lieu of thirteen (13) City/District recognized holidays. Police Lieutenants and Captains wishing to take a holiday off will need to use other available leave accruals.
14 ARTICLE III
VACATION AND OTHER LEAVES
1.1 Leave under this article, which are accrual base, shall be provided to employees who have been in a paid status for each eligible paycheck on which the employee is paid for at least twenty (20) hours a week, or forty (40) hours, in the pay period.
1.2 Section 1 - Vacation Accrual & Use Vacation Accrual for Executive Management shall be as follows:
Years of Service Hours per Pay
Period
Maximum Hours Days per Year
1 through 5 5.00 360 15 working days
Day 1, Year 6 5.33 384 16 working days
Day 1, Year 7 5.67 408 17 working days
Day 1, Year 8 6.00 432 18 working days
Day 1, Year 9 6.33 456 19 working days
Day 1, Year 10 6.67 480 20 working days
Day 1, Year 11 to 15 7.00 504 21 working days
Day 1, Year 16 and
thereafter
7.67 552 23 working days
1.3 Vacation Accrual for Other Management Employees
Years of Service Hours per Pay
Period
Maximum Hours Days per Year
1 through 3 3.67 264 11 working days
Day 1, Year 4 4.00 288 12 working days
Day 1, Year 5 5.00 360 15 working days
Day 1, Year 6 5.33 384 16 working days
Day 1, Year 7 5.67 408 17 working days
Day 1, Year 8 6.00 432 18 working days
Day 1, Year 9 6.33 456 19 working days
Day 1, Year 10 6.67 480 20 working days
Day 1, Year 11 to
15 7.00 504 21 working days
Day 1, Year 16
and thereafter
7.67 552 23 working days
1.4 Employees shall accrue vacation leave only as it is earned. New Employees shall not be eligible to take any vacation leave until after completion of their initial six months of employment.
1.5 The City/District Manager may grant a new Management Employee a starting accrual rate that recognizes that individual’s professional service prior to becoming a Foster City Manager. This does not apply to promotional Employees. 15 1.6 Employees shall not accumulate more than the equivalent of three annual vacation accruals. An Employee who accumulates vacation in excess of three annual vacation accruals shall not accrue additional hours until the balance is below the maximum amount pursuant to this section. Employees may cash out up to a maximum of one hundred sixty (160) hours of accrued vacation leave once per calendar year in December. An Employee is eligible for this cash out option only if he/she has used at least forty-eight (48) hours of vacation leave in the previous twelve (12) month period, retains a minimum accrued vacation leave balance of eighty (80) hours after the requested cash out, and filed a vacation cash out request form with Human Resources no later than December 20th of the prior year.
Payroll records will be used to determine whether or not an Employee has taken the required forty-eight (48) hours of vacation leave. If an Employee has used twenty-four (24) hours of vacation leave in the previous six (6) month period, the Employee is eligible to cash out up to eighty (80) hours of accrued vacation leave once per calendar year in December. An employee is eligible for this cash out option only if he/she retains a minimum accrued vacation leave balance of eighty (80) hours after the requested cash out and filed a vacation cash out request form with Human Resources no later than December 20 th of the prior year. Payroll records will be used to determine whether or not an Employee has taken the required twenty-four (24) hours of vacation leave.
1.7 Vacation use may be deferred by the written approval of the City/District Manager when in the best interests of City/District government and the Employee.
1.8 It is the responsibility of the Employee to review the vacation accrual balance printed on their paycheck stub to ensure that he/she uses their vacation within three accrual years unless deferment is requested and obtained from the City/District Manager as provided.
1.9 Employees may use accrued vacation in one (1) hour increments, subject to Department Head or designee (or City/District Manager in the case of Department Heads) approval.
1.10 Additional guidelines that clarify the use and administration of this provision may be found in the City/District Personnel Rules.
1.11 At least thirty (30) days prior to separation, Management Employees may elect to (a) sell back up to a maximum of 200 hours of accrued vacation leave or (b) contribute up to a maximum of 200 hours of accrued vacation leave to their 457 Plan account within applicable IRS limits. A total of 200 hours of accrued vacation leave is available for sell back, 457 Plan contribution or a combination thereof. The number of hours to be sold or contributed must be accrued at the time of sell back or contribution, and if the Employee elects to sell back any accrued vacation leave hours, the Employee shall receive a check for the hours sold prior to separation of employment. If an Employee elects vacation sell back and/or 457 Plan contribution and participates in VEBA, the VEBA contribution vacation leave payout in Article I, Section 12.2 will be calculated by applying the contribution amount percentage in the vacation leave table in Article I, Section 12.2 to the remaining balance of the Employee’s accrued vacation leave after the sell back or 457 Plan contribution. 16 Section 2 - Administrative Leave
2.1 FLSA exempt employees shall be credited with eighty (80) hours of administrative leave annually. FLSA non-exempt employees shall be credited with thirty-six (36) hours of administrative leave annually. Administrative leave will be credited on December 1 and shall not be carried over past November 30 of the following year.
FLSA exempt employees may receive pay in lieu of time off for up to eighty (80) hours of unused administrative leave as of November 30, to be paid in December.
FLSA non-exempt employees may receive pay in lieu of time off for up to thirty-six (36) hours of unused administrative leave as of November 30, to be paid in December.
2.2 Upon appointment, new Employees shall receive administrative leave on a prorated basis at the rate of 6.66 hours per month for exempt employees and 3 hours per month for non-exempt employees for the remaining months of the year.
2.3 Administrative leave shall be taken at the discretion of the Employee contingent upon approval by the City/District Manager for Executive Management and by the Department Head or designee for all other Management Employees.
Section 3 – Recognition Leaves
Performance Recognition Leave
3.1 Employees are eligible to receive a maximum of five (5) days of paid leave per fiscal year in recognition of exemplary performance.
3.2 Leave may be granted in any increment between one (1) day and five (5) days to individuals or to work teams for such reasons as a single outstanding achievement, consistently above standard job performance, or other extraordinary efforts on behalf of the City/District, as recommended by the Department Head and approved by the City/District Manager.
3.3 This leave must be taken as paid time off in the fiscal year in which it is granted.
This leave has no cash value and is not compensable upon termination of employment with the City/District.
Service Recognition Leave
3.4 In recognition of years of service, Employees who subsequently complete 10, 15, 20, 25 and 30 years of service with the City/District shall receive 40 hours of paid leave on their 10th, 15th, 20th, 25th and 30th anniversary of employment with the City/District on their anniversary date.
3.5 This leave must be taken as paid time off within one year of the date it is granted.
This leave has no cash value and is not compensable upon termination of employment with the City/District.
Section 4 - Funeral/Bereavement Leave
17 4.1 Regular and probationary Employees shall be entitled to up to five (5) working days of funeral/bereavement leave for each occurrence of death of an immediate family member. Up to three (3) working days shall be paid by the City. If requested, up to two (2) additional working days shall be unpaid or, at the option of the employee, paid from the employee’s accrued leave banks (sick, vacation, administrative, and compensatory). Request for any additional time must be approved by the Administrative Services Director or their designee. Immediate family shall mean spouse, state-registered domestic partner, child, foster child who resided with the employee at the time of their death, stepchild, mother, father, stepmother, stepfather, mother-in-law, father-in-law, brother, stepbrother, sister, stepsister, brother-in-law, sister-in-law, grandmother, grandfather, spouse’s grandmother, spouse’s grandfather, son-in-law, daughter-in-law, or grandchildren. Other relatives and significant persons may be included with the approval of the Administrative Services Director or designee.
Bereavement leave does not need to be taken consecutively and must be completed within three (3) months of the day of death of the family member.
Section 5 - Sick Leave Accrual & Use
5.1 Management Group Employees shall accrue sick leave at a rate of five and two thirds (5.666) hours per calendar month for each month that the Employee has worked regularly scheduled hours. There shall be no maximum accumulation of sick leave.
5.2 Effective July 1, 2025, Management Group Employees shall accrue sick leave at a rate of eight and two thirds (8.666) hours per calendar month for each month that the Employee meets eligibility for such leave as defined in section 1.1 above.
There shall be no maximum accumulation of sick leave.
5.3 Employees may utilize unused sick leave to care for members of the immediate family and/or household members who have suffered an illness or injury in accordance with State law.
Family sick leave may be taken and if taken, shall be charged to sick leave or, with the concurrence of the Department Head, to vacation or administrative leave where the presence of the employee elsewhere is essential because of illness, or disability of immediate members of their family. Immediate family member means parent, child, spouse, registered domestic partner, parent-in-law, sibling, grandparent or grandchild. No more than half of the Employee’s annual accrual may be granted for family sick leave in any one calendar year. Any additional absences due to family illness or for other family members shall be charged to discretionary leave balances (e.g., vacation, compensatory time off, etc.).
5.4 Employees may be entitled to request additional leave pursuant to Federal and State Family Leave laws.
5.5 The patterns of use, frequency of occurrence, total hours used, and hours available compared to hours accrued for each Employee will be periodically reviewed by the 18 Department Head. Department standards will be communicated and applied to evaluate the individual use of this benefit. An improvement plan may be developed and implemented by the Department Head, considering factors such as Employee circumstances, the operational impact of unscheduled absences, the obligation to provide consistency within the department, and the responsibility of managers to set a good example for other employees of the City/District.
5.6 Employees covered by this Plan are eligible to participate in a catastrophic leave donation program in accordance with the City/District’s Catastrophic Leave Donation Policy.
Section 6 - Industrial Disability Leave
6.1 The City/District will provide full pay for the initial three (3) months to non-Public Safety Employees who suffer industrial disabilities and are on authorized disability leave. During this period, the Employee will accrue benefits and the City/District will continue to contribute to benefits as usual. The Employee shall pay their usual portion of the benefits. Worker's Compensation benefits will be integrated and checks endorsed to the City/District by the Employee. No use of sick leave will be required during the first three (3) months.
6.2 After the first three (3) months of Industrial Disability Leave, until the Employee is determined to be able to return to work or permanent and stationary and unable to return to work, the Employee may integrate Worker's Compensation benefits with unused sick leave to assure no loss of compensation. The continuing eligibility for employee benefits will be determined in accordance with insurance contracts, State and Federal law, and City/District policy after the first three (3) months.
Section 7 - Educational Release Time
7.1 Employees shall be permitted to take job-related educational classes during on- duty hours within reasonable limits, with the approval of the Department Head and the City/District Manager, or their designee, while considering employee performance and operational needs.
EFFECTIVE DATE
This Plan shall take effect on May 1, 2025, and will remain in effect until further revised or replaced by action of the City Council.
19 Attachment A
Pay Plan for FY 2025-2026
Effective May 1, 2025, hourly wages for exempt classes represented by the Management Group shall be listed below: