10 RESOLUTION NO. 26-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,
CALIFORNIA, APPROVING UPDATES TO THE COMPENSATION AND
BENEFITS FOR CITY EXECUTIVE EMPLOYEES
WHEREAS, the City of Menifee ("City") executive employees have updates to their compensation and benefits from time to time, in alignment with other City employees, including:
1) Assistant City Manager
2) Deputy City Manager
3) Police Chief, Chief Information Officer, Chief Financial Officer, Public Works Director, Community Development Director, Community Services Director, Economic Development Director, Human Resources Director, Communication and Government Affairs Director, Director of Strategic Programs and Initiatives, and City Clerk and such other substantially equivalent level positions as may be added in the future (hereinafter collectively referred to as "Directors"); and
4) Deputy Community Development Director, Deputy Public Works Director, Deputy Human Resources Director, Deputy Finance Director, and such other substantially equivalent level positions as may be added in the future (hereinafter collectively referred to as "Deputy Directors"); and
WHEREAS, the City Manager has authority to enter into an Employment Agreement with current and future Assistant City Manager, Deputy City Manager, Directors, and Deputy Directors (hereinafter collectively referred to as “Executive Employees”) on behalf of the City, pursuant to Menifee Municipal Code § 2.08.060; and
WHEREAS, the Executive Employees will be entitled to any future cost-of-living adjustments and other benefits otherwise made available to the Menifee City Employees Association, Mid-Management Unit; and
WHEREAS, the City Council now desires to adopt an amended and restated resolution of salaries, compensation and benefits for the Executive Employees, which restates and replaces any and all pre-existing salary and compensation resolutions for the Executive Employees NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby determines and orders as follows:
Section 1.That the City Council approves a contribution into deferred compensation in the amount of 5% of base salary for Assistant City Manager, Deputy City Manager, and Directors, and 2.5% of base salary for Deputy Directors.
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Section 2.That the City Council approves cost of living adjustments and other benefits otherwise made available to the Menifee City Employees Association, Mid-Management Unit.
Section 3.That the City Council hereby approves the maximum level of benefits and other compensation, not including salary, expressly or impliedly set forth in the employment agreements with the Executive Employees, provided that such level of benefits and other compensation for the Executive Employees shall not exceed the following levels:
A. Professional Development. Training as determined appropriate by the City Manager.
B. Paid Leave.
i. Sick Leave. 104 hours accrued annually with no limit on the total amount of accrued sick leave.
ii. Sick Leave Conversion. The employee may elect to convert earned and unused sick leave into equivalent dollars deposited into a retiree health savings account (RHSA), in the following amounts based on years of City service: 25% of accrued sick leave value for employees with 10 years of service; 50% of accrued sick leave value for employees with 15 years of service; 75% of accrued sick leave value for employees with 20 years of service. Alternatively, to the extent permitted under the City’s CalPERS contract, the employee may convert any earned and unused sick leave to CalPERS service credit. If the employee elects RHSA conversion but has remaining sick leave that cannot be deposited into the RHSA, any remaining balance may be converted to CalPERS service credit to the extent allowed by the CalPERS contract.
iii. Vacation Leave. Vacation shall be accrued annually as indicated in the table below, with a maximum accrual cap of four hundred forty (440) hours.
Any excess hours above 440 hours will be automatically cashed out by the City at the employee's base rate of pay as of June 30 of that year.
Years
of
Service
Vacation Hours
per pay period
Hours per year
0-3 4.62 120
3.01-4 6.15 160
4.01+ 7.69 200
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i. Vacation Leave Cash Out. Executive Employees may cash out vacation leave annually, provided a minimum balance of 80 hours remains in the vacation leave bank at the time of cash out, as indicated in the table below. Upon termination for any reason, the employee shall be entitled to one hundred percent (100%) of the unused vacation leave in the leave bank.
ii. Holiday Leave. Executive Employees shall be entitled to the holidays and wellness day made available to the Menifee City Employees Association, Mid-Management Unit, and paid for each holiday. iii. Holiday Leave Cash Out. Leave balances must be used during the fiscal year or they will be cashed out at the end of the fiscal year in June, or at termination for any reason.
iv. Executive Leave. As employees are exempt from overtime under the provisions of the Fair Labor Standards Act, executive leave hours shall be granted at the start of each fiscal year. Assistant City Manager, Deputy City Manager, and Directors shall be granted 80 hours annually, and Deputy Directors shall be granted 70 hours annually. v. Executive Leave Cash Out. Unused hours shall be cashed out annually in the last pay period of the fiscal year. Upon termination for any reason, the employee shall be entitled to one hundred percent (100%) of the unused executive leave in the leave bank.
vi. Bereavement Leave. Executive Employees shall be granted a leave of up to five (5) days in case of the death of a qualifying member of the employee's family, as defined by Gov. Code § 12945.7. Although applicable laws provide unpaid leave, eligible employees shall be granted, upon written request and with supporting documents, three (3) paid days of bereavement leave. The additional two (2) allowed days may, at the employee’s option, be charged applicable accrued leave or, if the employee chooses not to use accrued leave or has non available, be treated as leave without pay.
C. Cafeteria/Health & Welfare Benefits. The City provides a monthly allocation for eligible employees to be used towards medical, dental, vision, and any other Annual Leave Used During
Preceding 12 Months
Maximum Annual
Cash Out
40 Hours 120 Hours
60 Hours 140 Hours
80 Hours 160 Hours
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benefits that would be eligible. For Executive Employees, this allowance is equivalent to the amount provided to the Menifee City Employees Association, Mid-Management Unit. Executive Employees may use funds for any of the City's medical plans or, upon proof of coverage under a spouse's plan, this amount may be taken as taxable income or converted to a deferred compensation plan.
D. Retirement.
i. Miscellaneous employees hired or having membership in the California Public Employees Retirement System (CalPERS) prior to January 1, 2013, are at the "classic member” formula 2.7% @ 55. ii. Miscellaneous employees hired on or after January 1, 2013, or having membership in CalPERS are defined as a "new member" and shall receive the 2% @ 62 formula.
iii. Safety employees shall receive the "new member" formula of 2.7% @ 57 as the City's Safety plan only allows for the Public Employees' Pension Reform Act (PEPRA) of 2013 rates due to the City's membership plan being effective in June 2019.
iv. Employees shall pay their full member contribution for their CalPERS retirement plan, from the employee's pre-tax compensation.
E. Automobile Allowance. The Assistant City Manager, Deputy City Manager, and Directors shall receive $400.00 per month or the use of a take-home City Vehicle as determined by the City Manager; Deputy Directors shall receive $200.00 per month.
F. City Flexible Spending Plan. Executive Employees may participate in the same program made available to other employees.
G. Life Insurance. The Assistant City Manager, Deputy City Manager, and Directors shall be entitled to a $200,000 life insurance policy, and Deputy Directors shall be entitled to a $150,000.00 life insurance policy.
H. Uniforms. The Police Chief shall receive $1,000 per fiscal year for a uniform allowance.
I. Land Surveyor Certification. The City Engineer and/or Director of Public Works shall receive a special pay incentive of 5% of base salary for possession and exclusive city use of the Professional Land Surveyor certification.
J. Education Incentive. An education incentive will be paid for a master's degree in alignment with the position, which is above the minimum job requirement, in the amount of 5% for Assistant City Manager, Deputy City Manager, Directors, and 4% for Deputy Directors. Education incentive for a professional certification in alignment with the employee’s employment position with the City, which is above the minimum job requirement, shall be in the amount of 2.5% of base salary for Deputy Directors.
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K. Education Reimbursement. Executive Employees may request and be reimbursed up to $3,000 per fiscal year for expenses incurred for tuition, books, and fees for college-level, degree curricula or job-related courses upon prior approval of the City Manager.
L. Cell Phone. City shall issue a cell phone to those employees who require a cell phone to perform their normal duties. Alternatively, employees who wish to use their personal cell phones can receive a stipend of $75 per month.
M. Bilingual Pay. Qualifying employees shall be paid the equivalent amount provided to Menifee City Employees Association, Mid-Management Unit if they are bilingual (speak only) or biliterate (speak, write, and read).
N. Other benefits. Unless stated herein or otherwise in an Employment Agreement, employees shall be entitled to the provisions of the City's personnel rules.
Employees shall be eligible to participate in employee-paid benefit programs that may be offered from time to time.
O. Performance Evaluations. Performance Evaluations will be performed yearly to coincide with the Executive Employee’s anniversary date by the City Manager for the Assistant City Manager, Deputy City Manager, Department Directors, and by Department Director for Deputy Directors. Merit increases are based solely upon job performance; they are not automatic, and there is no annual entitlement to them. Employees are eligible for a merit increase each year based upon the evaluation of their performance through Step 6, at which time they reach the top of their range. Merit increases are subject to the City Manager’s discretion. Any such increase will be applied retroactively to the employee's recent salary anniversary date.
P. Severance Pay. If an Executive Employee is terminated without cause then City agrees to place Employee on administrative leave with full pay and benefits (less legally required or authorized deductions) ("Severance Pay") for the shortest of (i) until Employee finds new full time employment, or (ii) three months for the Assistant City Manager, Deputy City Manager, Director and six weeks for Deputy Director (the "Administrative Leave Period"). At the conclusion of the Administrative Leave Period, the Employee shall be entitled to no further compensation or benefits from the City. In exchange for and as a precondition to receipt of the Severance Pay, Employee shall execute a release and waiver, in a form acceptable to the City Attorney, releasing the City from any and all claims associated with Employee's termination.
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PASSED, APPROVED AND ADOPTED this 4th day of February 2026 _______________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney