EMPLOYMENT AGREEMENT
FOR CITY MANAGER
This Agreement is entered into, effective this 1st day of July, 2023, by and between the City of Manteca, a municipal corporation (hereinafter called the “CITY”) and Toni Lundgren (hereinafter called “LUNDGREN”) (together the “Parties”, individually a “Party”).
R E C I T A L S
WHEREAS, the City Council of the City of Manteca is desirous of employing LUNDGREN to act as and perform the duties of the City Manager; WHEREAS, LUNDGREN represents that she is qualified to perform the duties and services of the position of City Manager, and is agreeable to filling that position, subject to the terms and conditions set out below;
WHEREAS, the CITY has established and set forth the duties, conditions, and responsibilities of the position of City Manager;
WHEREAS, it is the desire of the CITY and LUNDGREN to enter into this employment agreement (“Agreement”) concerning compensation, benefits, terms, and conditions of her employment as the City Manager, effective July 1, 2023; WHEREAS, the Parties agree, acknowledge, and recognize that the position of City Manager is an at-will employee who shall serve at the behest and pleasure of the City Council; and
WHEREAS, the Parties agree that the CITY reserves a fair and just means of (i) terminating the employment of LUNDGREN as City Manager in the event that LUNDGREN, for any reason, becomes unable or unwilling to discharge fully the duties of the office of City Manager, or as set out in this Agreement; or (ii) terminating the employment of LUNDGREN as City Manager in the exercise of the right of the City Council to fill the position of City Manager as the City Council seesfit.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. EMPLOYMENT AND TERM:
CITY hereby employs LUNDGREN, and LUNDGREN hereby accepts employment with the CITY in the position of City Manager, on the terms and conditions and for the compensation set forth herein.
2. DUTIES:
CITY hereby agrees to employ LUNDGREN as City Manager, to perform the duties of the City Manager as set forth in the City Manager’s current job description and Manteca ATTACHMENT 1
Municipal Code Chapter 2.08 that are both made a part of this Agreement by reference. a. LUNDGREN has the authority to recruit employees in conjunction with the Human Resources Department, and discipline employees in conjunction with the Human Resources Department and City Attorney’s Office, subject to City personnel rules, procedures, and policies, and state and federal law. In addition, LUNDGREN has the authority direct the workforce subject to City personnel rules, procedures, and policies, and state and federal law. Included within the functions of the City Manager are that she be the Chief Administrator of the City, Executive Director of the Manteca Successor Agency and the Manteca Housing Authority, Personnel Officer, Emergency Operations Center Director, and Purchasing Officer.
In addition, LUNDGREN shall serve as the Municipal Employee Relations Officer, Chief Administrative Officer of the Manteca Financing Authority, and such other offices and duties as are normally associated with the office of the City Manager.
LUNDGREN shall perform her obligations and responsibilities diligently within the time parameters indicated and set out by the City Council, applying the highest degree of professionalism, ethics, integrity, and competency to the discharge of every aspect of her obligations.
b. LUNDGREN shall not engage in any activity that is, appears to be, or may become a conflict of interest; neither shall LUNDGREN enter into or enter the CITY into a prohibited contract, nor shall LUNDGREN create an incompatibility of office as defined under California law. LUNDGREN shall comply fully with her reporting and disclosure obligations under regulations promulgated by the Fair Political Practices Commission (“FPPC”).
c. LUNDGREN agrees to remain in the exclusive employ of the CITY during the term of this Agreement. LUNDGREN shall dedicate her full energies and qualifications to her employment as the City Manager, and shall not engage in any other employment except as may be specifically approved in writing in advance by the City Council. d. LUNDGREN shall devote her full time to her position as City Manager and shall generally work normal office hours. LUNDGREN generally will work a “4/10 schedule” consistent with the CITY guidelines. It is recognized that LUNDGREN must devote a great deal of time outside the normal office hours to business or related business activities, meetings, and functions of the CITY, and to that end, LUNDGREN will need to exercise a flexible work schedule.
e. LUNDGREN shall not spend any time consulting and/or working for any other non-CITY connected business without the prior approval of the City Council. Such outside activities shall not interfere with the performance of LUNDGREN’s duties under this Agreement. f. In general, LUNDGREN shall perform all duties and functions specified in the CITY’s Municipal Code, ordinances, resolutions, policies, and the responsibilities set out in the job description for City Manager.
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g. Consistent with the CITY Municipal Code, LUNDGREN shall report to and be managed by the City Council as an at-will employee.
h. LUNDGREN acknowledges that consistent with the Municipal Code she will live within forty (40) miles of CITY’s administrative offices within six (6) months after the effective date noted above, or subject to any change approved by the City Council.
3. COMPENSATION AND BENEFITS:
a. Salary: LUNDGREN’s compensation shall be $255,000.00 annually. LUNDGREN shall be paid that compensation at the same intervals and in the same manner as regular City employees. LUNDGREN shall not be entitled to any other compensation than expressly stated in this paragraph and this section. The City Manager shall be the highest paid employee at the City.
b. Salary Review: The City Council and LUNDGREN agree to conduct, at a minimum, an annual salary review concurrently with the annual performance evaluation set forth in Section 4 hereof.
c. Salary Adjustment: Following the annual performance evaluation set forth in Section 4 hereof, and the annual Salary review set forth above in Section 3(b), the City Council, in its sole discretion, may increase LUNDGREN’s base salary based on the results of the reviews and subject to the salary ordinance. Any adjustments following the annual evaluation shall be at the sole discretion of City Council and may be made retroactive to the anniversary date of the evaluation.
d. Benefits: Other elements of LUNDGREN’s compensation package (“Benefits”) are attached herein (Attachment 1), the City Council may consider the Executive Management Summary of Salaries and Benefits (and/or other employees, and/or any one of the seven (7) bargaining groups), when considering the terms and conditions of these Benefits.
However, Lundgren’s Benefits shall not be tied to any of the seven (7) bargaining groups or to the Executive Management Summary of Salaries and Benefits. e. Car Stipend: CITY shall provide LUNDGREN a car stipend of $300/month. In addition, if a CITY vehicle is available, LUNDGREN may, consistent with CITY policies, use a CITY vehicle to conduct and/or for purposes of official CITY business. f. Electronics: CITY shall provide LUNDGREN a City-issued laptop, cell phone, and iPad, which LUNDGREN shall surrender to the CITY following the end of her term and/or the end of this Agreement (whichever occurs earlier), or as ordered by the City Council.
When using and/or utilizing these items LUNDGREN shall be subject to all related City rules, policies, and regulations. LUNDGREN may elect to receive a $120 cell phone stipend in lieu of a CITY issued cell phone.
g. Professional Development: Subject to available funding, the CITY agrees to budget and to pay the professional dues and subscriptions on behalf of LUNDGREN that are reasonably necessary for LUNDGREN’s continuation and participation, and other professional associations as the City Council deems necessary and desirable for LUNDGREN’s continued professional participation, growth and advancement, or for the good of the CITY. Subject to available funding, CITY shall budget and pay for the ATTACHMENT 1
professional dues and subscriptions. Subject to available funding, the CITY agrees to budget and to pay the travel and subsistence expenses of LUNDGREN for official travel, meetings, and occasions reasonably adequate to continue the professional development of LUNDGREN and reasonably attend necessary official and other functions for the CITY.
4. PERFORMANCE EVALUATIONS:
At or around every July 1, on an annual basis, the City Council shall conduct an evaluation of LUNDGREN’s performance, beginning on or around July 1, 2024. During that evaluation, the City Council shall establish performance goals and objectives to be met by LUNDGREN during the following year. LUNDGREN will request and schedule such reviews, as appropriate, or as otherwise directed by the City Council. As part of the evaluation process, the City Council will review LUNDGREN’s salary and benefits for potential adjustment.
Nothing in this paragraph is intended to limit additional interim evaluations or to limit the normal communications process between the City Council and LUNDGREN, nor is anything herein a guarantee that LUNDGREN’s salary shall be adjusted.
5. TERMINATION:
Notwithstanding anything to the contrary stated herein, the City Council has the right to terminate LUNDGREN at any time during the term of this Agreement with or without cause, and nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City Council to terminate the services of LUNDGREN at any time without cause. The Parties agree that LUNDGREN serves at the will of the City Council and that this Agreement contains all of the terms and conditions of LUNDGREN’s employment. It is intended that Chapter 2.08.100 through 2.08.140 of the Manteca Municipal Code will apply if the City Council elects to remove LUNDGREN from office.
a. Termination, General
This Agreement shall terminate upon the occurrence of any of the following events:
i. Upon (60) sixty days’ notice given to CITY by LUNDGREN; or ii. Upon the death of LUNDGREN; or
iii. Upon the effective date of retirement from the CITY’s service pursuant to CalPERS; or
iv. By motion to terminate LUNDGREN by a majority vote of the City Council, with or without cause.
b. Termination Without Cause
i. In the event that the City Council terminates LUNDGREN’s employment for any reason other than for cause, LUNDGREN shall receive, in addition to any accrued vacation, a lump sum severance payment based on the following calculation:
a) Less than one (1) year of employment with the CITY, severance equal to four (4) months’ pay;
b) More than one (1) year of employment with the CITY, severance equal to six (6) months’ pay.
ii. In the event that the City Council terminates LUNDGREN’s employment for any reason ATTACHMENT 1
other than for cause, the CITY shall give LUNDGREN notice that her employment shall terminate upon a date certain at least thirty (30) days after delivery of said termination notice, subject to the procedures outlined in Chapter 2.08.100 through 2.08.140 of the Manteca Municipal Code.
c. Termination for Cause.
1) The City Council shall have the right to terminate LUNDGREN’s employment as City Manager for cause. If LUNDGREN is terminated by the City Council for any or all of the reasons stated below, LUNDGREN shall not be entitled to any severance pay (or related benefits) as described in Subsection 5(b). For purposes of this Agreement, cause for termination shall include the following:
a. Employee’s mental incapacity or inability to perform her duties hereunder due to physical or mental disability, as determined by a medical doctor; b. Willful destruction, theft, misappropriation, or misuse of CITY property;
c. Intoxication on duty, whether by alcohol or non-prescriptive drugs; d. Conviction of a felony; provided that LUNDGREN may instead be placed on administrative leave without pay should she be charged with such a crime or crimes;
e. Dishonesty, fraud, and/or misconduct in office or in securing this appointment;
f. Violation of any conflict of interest laws, policies, or regulations; g. Violation of State or federal discrimination laws concerning race, religious creed, color, national origin, ancestry, physical or mental disability, marital status, sexual orientation, sex or age concerning either members of the general public or CITY employees;
h. Willful or unlawful retaliation against any other CITY official or employee or member of the general public who in good faith reports, discloses, divulges, or otherwise brings to the attention of any appropriate authority any facts or information relative to actual or suspected violations of any law occurring on the job or directly related thereto; or
i. Violation of the CITY’s ethics policy, civility policy, and/or harassment policy as determined by a judgment, results of an internal or external investigation, admission, or any criminal conviction; or any other violation of any personnel or employment policy, rule, or procedures. 2) As with the process applicable to a termination without cause, if the CITY terminates LUNDGREN for cause, the CITY shall give LUNDGREN notice that her employment shall terminate upon a date certain at least thirty (30) days after delivery of said termination notice, subject to the procedures outlined in Chapter 2.08.100 through
2.08.140 of the Manteca Municipal Code.
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6. RESIGNATION:
If LUNDGREN voluntarily resigns from the position of City Manager, she will provide the CITY with a minimum of sixty (60) days advance written notice. During the sixty (60) day period subsequent to said written notice of resignation, LUNDGREN shall continue to discharge her duties as City Manager to the best of her ability, unless the City Council opts, in its sole discretion, to place LUNDGREN on paid leave during all or any portion of said sixty (60) day period.
7. LIABILITY:
Subject to the terms and limitations of the Government Claims Act (Government Code sections 810 et seq.), CITY agrees to indemnify, hold harmless and defend at its expense LUNDGREN from any and all claims, actions, losses, damages, charges, and expenses, including attorneys’ fees to which LUNDGREN may be subject to, arising out of, or resulting from the performance of this Agreement and LUNDGREN’s duties hereunder. This section shall not apply to liability incurred by LUNDGREN for actions that are outside the scope of services or which result from willful or malicious conduct, or gross negligence.
8. NO PROPERTY RIGHT IN EMPLOYMENT:
LUNDGREN understands and agrees that the term of her employment is governed only by this Agreement and that no right of regular employment for any specific term is created by this Agreement. LUNDGREN further understands that she acquires no property interest in her employment by virtue of this agreement, that the employment is “at will” as defined by the laws of the State of California (meaning that he can be terminated at any time for any reason or for no reason), and that she is not entitled to any pre- or post-deprivation administrative hearing or other due process upon termination or any disciplinary action, except for those that are specifically included in Chapter 2.08.100 through 2.08.140 of the Manteca Municipal Code and/or the Government Code.
9. NOTICE:
Notices required pursuant to this Agreement shall be given by personal service upon the Party to be notified or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows:
If to CITY:
City of Manteca
1001 W. Center Street
Manteca, CA 95337
Attention: City Attorney’s Office
If to LUNDGREN:
LUNDGREN
(address on file)
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10. NON-ASSIGNMENT OF AGREEMENT:
This Agreement is intended to secure the individual services of the LUNDGREN and is not assignable and/or transferable by LUNDGREN to any third party.
11. GOVERNING LAW AND VENUE:
This Agreement shall be interpreted according to the laws of the State of California. The exclusive venue to resolve any disputes related to this Agreement shall be the Superior Court for the County of San Joaquin, California.
12. ENFORCEABILITY AND SEVERABILITY:
If any term, covenant, condition, section, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
13. CONFLICT OF INTEREST:
LUNDGREN agrees that during the term of this Agreement, she will not maintain any financial interest or engage in any other contract employment, occupation, work, endeavor, advisory role, or association, whether compensated or not, that would in any way conflict with, or impair LUNDGREN’s ability to perform the duties described in this Agreement. Any work performed for the CITY outside the terms of this Agreement must be approved in advance in writing by the City Council. LUNDGREN agrees to disclose whether she is performing work for any other CalPERS public agency employer as required by this Agreement. LUNDGREN further agrees not to hire and/or appoint any individual to the CITY whose appointment and/or hire results in or that may potentially lead to a conflict of interest for the CITY and/or LUNDGREN.
14. ENTER AGREEMENT, APPLICABILITY, AND MODIFICATION:
This Agreement constitutes the entire understanding of the Parties hereto. This Agreement supersedes any previous contracts, agreements, negotiations, or understandings, whether written or oral, between the Parties. LUNDGREN shall be entitled to no other compensation or benefits than those specified herein, and LUNDGREN acknowledges that no representation, inducements or promises not contained in this Agreement have been made to LUNDGREN to induce LUNDGREN to enter into this Agreement. No changes, amendments, or alterations hereto shall be effective unless in writing and signed by both Parties.
LUNDGREN understands that no oral modifications of this Agreement made by any officer, agent, or employee of CITY is effective. LUNDGREN specifically acknowledges that in entering into and executing this Agreement, she relies solely upon the provisions contained herein and no others. To the extent applicable and/or permitted by law, this Agreement shall apply retroactively.
15. NO PRESUMPTION OF DRAFTER:
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The Parties acknowledge and agree that the terms and provisions of this Agreement have been negotiated and discussed between the Parties, and this Agreement reflects their mutual agreement regarding the subject matter of this Agreement. Because of the nature of such negotiations and discussions, it would be inappropriate to deem any Party to be the drafter of this Agreement, and, therefore, no presumption for or against validity or as to any interpretation, based upon the identity of the drafter, shall be applicable in interpreting or enforcing this Agreement.
16. ASSISTANCE OF COUNSEL:
Each Party to this Agreement warrants to the other Party that the Party has either had the assistance of counsel or other representative in negotiation for, and preparation of, this Agreement or could have had such assistance and voluntarily declined to obtain such assistance.
17. BONDING:
The CITY shall bear the full cost of any fidelity or other bond required of LUNDGREN as the City Manager under any law or ordinance.
18. COMPLIANCE WITH AB 1344:
Notwithstanding any other provision of this Agreement, CITY and LUNDGREN agree to fully comply with the Government Code sections that are part of AB 1344, as it became effective on January 1, 2012 (“AB 1344”), and to fully comply with other applicable law as it exists as of the date of execution of this Agreement, and as the Agreement may be amended from time to time thereafter. In that regard, the following Government Code sections are hereby incorporated into the terms of this Agreement:
§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position,
§53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position,
§53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position,
§53243.3. Reimbursement of non-contractual payments upon conviction or crime involving office or position and
§53243.4. Abuse of office or position defined.
LUNDGREN has reviewed, is familiar with, and agrees to comply fully with each of those provisions if any are ever applicable to LUNDGREN, including that LUNDGREN agrees that any cash settlement or severance LUNDGREN may receive as a result of any termination shall be fully reimbursed to the City if LUNDGREN is convicted of a crime involving an abuse of her office or position.
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IN WITNESS WHEREOF, the above Parties have executed this Agreement as of the date first ATTACHMENT 1
written above:
CITY OF MANTECA TONI LUNDGREN
By: By:
Gary Singh, Mayor Toni Lundgren
Date: _____________________ Date: ________________________
ATTEST APPROVED AS TO FORM
Cassandra Candini-Tilton, City Clerk L. David Nefouse, City Attorney REVIEWED AS TO FORM:
___________________________________________
Dawn Cortesi, Interim Director of Human Resources
___________________________________
Jared Hansen, Acting Finance Director
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ATTACHMENT 1
CITY OF MANTECA
CITY MANAGER
SUMMARY OF SALARY AND BENEFITS
Effective July 1, 2023
ATTACHMENT 1
2 The City Manager shall herein be referred to as the “Employee”.
I. COMPENSATION
1. SALARY
Set by contract.
2. STIPEND
Employee will receive a non-PERSable stipend equal to 6% of her/his annual base salary.
The 6% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation or on June 30 each year, if not cashed out or placed into a deferred compensation account.
3. LONGEVITY PAY
Employee with over five years of continuous employment with the City of Manteca are eligible to be considered for one longevity bonus per year of 10% of one month’s base salary. Employee with ten years of continuous employment are eligible for 20% of one month's base salary. This bonus will be considered on the employee's anniversary date of employment and paid with the next regular payroll.
4. DEFERRED COMPENSATION
Mission Square Retirement Corporation and Strategic Retirement Advisors administer a deferred compensation plan for the City. Employee may voluntarily contribute to this plan with a minimum contribution of $10.00 per pay period. The maximum amount that may be deferred is available in the deferred compensation provider materials.
Employee may catch up on unused deferrals for any years since January 1, 1979 that they did not defer the maximum amounts. The maximum catch-up contribution amount is available in the deferred compensation provider materials.
5. HOLIDAY BENEFITS
The following are recognized as legal holidays:
New Year’s Day Labor Day
Martin Luther King Day Veterans Day
Presidents Day Thanksgiving Day
Memorial Day Day after Thanksgiving
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3 Cesar Chavez Day Christmas Eve
Independence Day Christmas Day
When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, it shall be observed on the preceding Friday. If Employee works a 4/10 work schedule will be granted one additional floating holiday if a holiday lands on a day that is previously designated as their day off. Rules regarding usage of floating holidays as outlined below shall otherwise apply.
Employee will receive four (4) floating holidays the first pay period in July of each year. The floating holidays are to be taken any time as a whole day throughout the fiscal year. Employee will not be allowed to carryover the floating holidays. The floating holidays cannot be cashed out in lieu of taking the day off.
6. OUT-OF-CLASS PAY
The City agrees in concept with providing just compensation to Employee working outofclass, either when managing another department, pending approval of the City Council.
Out-of-class compensation of 5% is eligible after the completion of five consecutive days of working out-of-class with authorization by the City Council.
II. LEAVES
7. VACATION LEAVE
Employee shall be entitled to vacation leave based upon their full and continuous length of service with the City in accordance with the following accrual rates and the Personnel and Rules and Regulations:
1 thru 48 months 80 hours annually
49 thru 96 months 120.00 hours annually
97 thru 144 months 152 hours annually
145 months & on 184 hours annually
The maximum vacation accrual limit shall be three (3) times the annual accrual rate. Once the vacation cap is reached, no additional accruals of vacation will be made until the reduction is at least equal to the monthly accrual. Payment for cashing out up to 80 hours of vacation leave per fiscal year may be made upon request.
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4 8. ADMINISTRATIVE LEAVE
Employee shall receive 120 hours of administrative leave per fiscal year, with a cap of 300 hours.
Once the cap is reached, no further administrative leave will accrue until the reduction is at least equal to the monthly accrual rate. Payment for cashing out up to 80 hours per fiscal year of administrative leave may be made upon request.
9. SICK LEAVE
Employee shall accrue 96 hours of sick leave annually for each full month of continuous service. There shall be no maximum accumulation limit on sick leave accrual. Sick leave with pay shall not be considered an earned right to time off from work at the employee's discretion but shall only be allowed in cases of actual necessity caused by personal illness, disability or preventive medical, dental, or optical care.
Employee may utilize up to 80 hours of accrued sick leave per calendar year for illness, disability or preventative medical, dental or optical care for members of the employee’s immediate family.
10. BEREAVEMENT LEAVE
For the Employee, in the event of an immediate family member’s death, employee will be granted up to three days bereavement leave with pay without charge to their accumulated sick leave credits or accrued vacation. The City will also grant an additional two (2) days bereavement leave, pursuant to AB 1949. The additional days shall be charged against the employee's accumulated sick-leave, vacation, and/or administrative leave credits.
For the purpose of this section, "immediate family" shall be defined as the employee's spouse/registered domestic partner, children/stepchildren, siblings, parents (including foster or step), parents of the employee's spouse /registered domestic partner (including foster or step), grandparents and grandchildren of the employee or the employee's spouse/registered domestic partner or other individuals whose relationship to the employee is that of a dependent.
In the event of the death of a relative other than those defined above as immediate family, the employee may be granted up to one (1) day of bereavement leave upon request which shall be charged against the employee's accumulated sick, vacation or administrative leave credits. Any additional leave required under circumstances of ATTACHMENT 1
5 bereavement for the purpose of funeral arrangements, estate matters or additional travel time, must be authorized by the City Council.
The City may require evidence of the relationship and attendance of the funeral within 30 days of the first date of leave. Leave must be completed within three (3) months of the date of death.
III.INSURANCE
11. HEALTH INSURANCE
Active Employee:
A health care plan will be provided for the Employee. The monthly maximum benefit paid, including the Minimum Employer Contribution (MEC) and the City contribution, will be as follows:
Single $ 850
Employee +1 $ 1600
Family $ 2100
If the City paid cap exceeds the cost of the medical insurance premium, no monetary value will result for the employee regardless of the medical insurance option they chose. Any unused cap dollars will be maintained by the City and no additional compensation will be afforded to the employee.
If an Employee chooses to decline health insurance coverage, the City will contribute $600 to the Employee’s deferred compensation account or cash in lieu of deferred compensation each month. The Employee shall notify Finance if they want the contribution in cash or deferred compensation by February of each year.
Failure to notify Finance will result in continuation of the previous year's option.
If the Employee currently contributes the maximum allowed amount to deferred compensation, that contribution must be reduced by the amount exceeding the maximum contribution to enable the City to make the in-lieu of contribution. In this case, the Employee will net the difference in their paycheck.
The Employee will be required to sign a waiver when canceling coverage. Reenrollment to CalPERS plans can only be made during the open enrollment period unless criteria for re-enrollment are met as defined by CalPERS.
12. DENTAL INSURANCE
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6 The City shall pay the entire premium for dental coverage for the Employee and dependents. Diagnostic/preventative work will be covered 100%. Deductibles will also be waived for diagnostic/preventative work.
Orthodontia Coverage:
The City will provide orthodontia coverage under the dental plan. The plan will be 50% of the cost of orthodontia serves up to a lifetime maximum of $1,500 per person covered.
13. VISION INSURANCE
The City shall pay the entire premium for vision care of Employee and her/his dependents.
14. LIFE INSURANCE COVERAGE
Employee shall receive $10,000, plus an equivalent amount to their annual salary of group life insurance coverage upon being employed one full calendar month. The City shall pay all premium costs for life insurance coverage.
15. SHORT TERM/LONG TERM DISABILITY INSURANCE
The City shall provide a short term/long-term disability insurance plan. The plan shall provide a maximum monthly income benefit of 66 2/3% of the first $15,000 of base monthly earnings.
The maximum benefit paid shall not exceed $10,000 per month. Benefits of the plan shall not be paid until 50% of accrued sick leave has been exhausted or until the 30th day following the onset of disability, whichever is longer. The City pays the majority of the cost of the long-term disability insurance plan. Employees will pay the difference in the cost (with pre tax dollars) for the enhanced benefit.
IV.RETIREMENT
16. RETIREMENT
The Employee shall be a member of the California Public Employees' Retirement System (CalPERS). Any contract with CalPERS currently in effect, shall remain in effect, as they may apply to the Employee. All employee contributions to the below retirement plans shall be paid on a pre-tax basis in accordance with the provisions of Internal Revenue Code 414(h)(2) - Employee Pick-Up. Retirement benefits shall be consistent with the laws of the State of California and the United States.
Definitions:
Retired Employee is defined as follows:
Any employee who retires from the City of Manteca under the provisions of the California Public Employees’ Retirement System.
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7 New Member is defined as follows:
1. A unit member who becomes a member of CalPERS for the first time on or after January 1, 2013 and who was not a member of any other public retirement system prior to that date;
2. A unit member who becomes a member of Cal PERS for the first time on or after January 1, 2013 and who was a member of another public retirement system prior to that date, but who was not subject to reciprocity under Gov.
Code §7522.02(c) and related CalPERS reciprocity requirements; or
3. A unit member who was an active member in CalPERS with another employer and who, after a break in service of more than six (6) months, returned to active membership in CalPERS with the City.
Classic Member is defined as follows:
A unit member who entered into membership with a qualifying public retirement system on or before December 31, 2012 who does not meet the definition of a New Member under Government Code §7522.04(t) and related CalPERS membership requirements.
Status as either a New Member or Classic Member shall be determined by CalPERS.
Retirement Benefits
Classic Tier 1: Retirement plan for employees hired with the City of Manteca on or before May 31, 2012.
Classic Tier 1 members shall receive the 2.7% at 55 retirement formula. For purposes of determining a retirement benefit, final compensation for these employees shall mean the single highest year of pensionable compensation.
Classic Tier 1 members shall pay through payroll deduction 100% of the CalPERS established employee contribution, which is eight percent (8%). Additionally, Classic Tier 1 members shall pay through payroll deduction an additional eight percent (8%). Toward the employer contribution for a total of sixteen percent (16%).
Classic Tier 2: Retirement p lan for employees hired with the City of Manteca on or a fter June 1, 2012 who meet the definition of a Classic member as de fined by CalPERS.
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8 Classic Tier 2 members shall receive the 2.0% at 60 retirement formula. For purposes of determining a retirement benefit, final compensation for these employees shall mean the highest annual average pensionable compensation earned during thirty-six (36) consecutive months of service.
Classic Tier 2 members shall pay through payroll deduction 100% of the CalPERS established employee contribution, which is seven percent (7%). Additionally, Classic Tier I members shall pay through payroll deduction an additional eight percent (8%) toward the employer contribution for fifteen percent (15%).
PEPRA: Retirement plan for employees hired with the City of Manteca on or after January 1, 2013, who meet the definition of a new member as defined by CalPERS.
PEPRA members shall receive the 2.0% at 62 retirement benefit. For purposes of determining a retirement benefit, final compensation for these employees shall mean the highest annual average pensionable compensation earned during thirty-six (36) consecutive months of service.
As required by Gov. Code§ 7522.04(g), PEPRA members shall pay through payroll deduction fifty percent (50%) of the total normal cost of their retirement plan as determined annually by CalPERS.
Additionally, PEPRA members shall pay through payroll deduction an additional eight percent (8%) toward the employer contribution for a total of eight percent (8%) plus fifty percent (50%) of normal cost.
Under no circumstances shall these employees pay less than half the normal cost as determined annually by CalPERS.
All classifications will utilize Level 4 of the Cal PERS 1959 Survivor Benefit.
17. SUPPLEMENTAL RETIREMENT PLANS
Mission Square 401
Employee will be eligible for Mission Square 401 Supplemental Retirement enhancement. The City will contribute five percent (5%) to this plan, and the participant may voluntarily contribute after-tax dollars. This plan supplements the CalPERS retirement benefit to provide the following vesting schedule:
ATTACHMENT 1
9 Number Years
Completed
Vesting
%
1 years 20%
2 years 40%
3 years 60%
4 years 80%
5 years 100%
18. RETIREE HEALTH
All members hired prior to December 31, 2011 will receive a monthly maximum contribution benefit of $675, which includes the Minimum Employer Contribution (MEC) as established annually by CALPERS.
The maximum benefit provided to retirees under this section shall be $675.00.
All members hired after December 31, 2011 will receive the Minimum Employer Contribution (MEC) as established annually by CALPERS.
19. SICK LEAVE UPON RETIREMENT
An Employee who retires from City service (exclusive of deferred or disability retirement) shall be entitled to all sick leave hours credited to their account in the form of one of the options below:
• 50% applied toward retirement credit and the remaining 50% cash payment at their currently hourly rate; or
• 50% applied toward retirement credit and the remaining 50% applied toward Retirement Health Savings Plan at their current hourly rate; or • 100% of sick leave hours applied toward retirement credit.
V. MISCELLANEOUS
20. CATASTROPHIC LEAVE PLAN
Employee may donate sick leave, vacation, and/or administrative leave to another Employee for the use of another employee when he/she/they are off work due to a nonwork related injury or illness. When an Employee donates time to another employee, a release form must be signed permitting the City to transfer the time. Time may only be donated as needed.
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10 21. LIGHT DUTY ASSIGNMENT
The City will assign Employee to light duty assignments when an injured Employee is found by a physician to be able to return to work but unable to assume all of the duties of his / her regular assignment. The guiding principle for the City in making light duty assignments will be that the tasks will not aggravate the Employee’s illness or injury.
22. SEVERANCE
Severance for the Employees are set out in their individual contracts.
23. AMENDMENTS
Any amendments to the benefits set out herein shall require approval by the City Council.
24. PERSONNEL FILES
Employee shall have access to her/his personnel files including the right to inspect or receive a copy of any material placed in their personnel file maintained by the Human Resources Department and the right to respond to any such material. Employee shall be required to provide Human Resources with 24 hours advance notice to review their personnel file.
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