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Exhibit 2-A Executive Benefits Profile 2025.docx

Rialto City Council
August 26, 2025

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Exhibit 2-A Executive Benefits Profile 2025.docx
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August 26, 2025
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Rialto City Council
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Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

CITY OFRIALTOEXECUTIVE TEAM2025 BENEFITS PROFILECITY OFRIALTOEXECUTIVE TEAM2025 BENEFITS PROFILE

CITY OF
RIALTO

EXECUTIVE TEAM
2025 BENEFITS PROFILE

CITY OF
RIALTO

EXECUTIVE TEAM
2025 BENEFITS PROFILE

TABLE OF CONTENTS
ARTICLE I.

ADMINISTRATION
3 SECTION 1.01
INTRODUCTION………………………………………………………….
3 SECTION 1.02
PURPOSE…………………………………………………………………..
3 SECTION 1.03
EXECUTIVE MANAGEMENT CLASSIFICATIONS..…………………..
3 ARTICLE II.

COMPENSATION
4 SECTION 2.01
SALARY……………………………………………………………………
4 SECTION 2.02
PERFORMANCE MANAGEMENT…...…………………………………..
4 ARTICLE III.

LEAVES
5 SECTION 3.01
HOLIDAYS…………………………………………………………………
5 SECTION 3.02
VACATION LEAVE……………………………………………………….
6 SECTION 3.03
SICK LEAVE……………………………………………………………….
6 SECTION 3.04
ADMINISTRATIVE LEAVE………………………………………………
6 SECTION 3.05
SECTION 3.06

OPTIONAL ANNUAL VACATION/SICK LEAVE CASH OUT
BEREAVEMENT LEAVE…………………...…………………………….
7 7
SECTION 3.07
STATUTORY LEAVE………………………………...…………………...
8 ARTICLE IV.

BENEFITS
8 SECTION 4.01
MEDICAL INSURANCE…………………………………………………..
8 SECTION 4.02
VISION INSURANCE…...…………………………………………………
9 SECTUIB 4.03
LONG TERM DISABILITY INSURANCE………………………………..
9 SECTION 4.04
LIFE INSURANCE……………………………...………………………….
9 SECTION 4.05
INCOME PROTECTION INSURANCE……………………..…………….
9 SECTION 4.06
FLEXIBLE SPENDING PLAN…………………………………………….
9 SECTION 4.07
DEFERRED COMPENSATION..………………………………………….
9 SECTION 4.08
EDUCATION REIMBURSEMENT / INCENTIVE..……………………...
10 SECTION 4.09
EMPLOYEE ASSISTANCE PROGRAM………………………………….
10 SECTION 4.10
RIALTO FITNESS CENTER ….…………………………………………..
10 SECTION 4.11
TECNOLOGY EQUIPMENT ……………………………………………...
10 SECTION 4.12
CITY VEHICLE ………………………………………………………….
10 ARTICLE V.

RETIREMENT – END OF SERVICE
11 SECTION 5.01
CALIFORNIA PUBLIC EMPLOYEE’S RETIREMENT SERVICE (CALPERS) – CITY CONTRIBUTION…………………………………… 11 SECTION 5.02
EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) …………….
12 SECTION 5.03
SEVERANCE PAY………………………………………………………....
12 ARTICLE I. ADMINISTRATION
Section 1.01 Introduction
The 2024 City of Rialto Executive Benefits Profile (“Profile”) is a summary of compensation and benefit practices, adopted by City Council, that apply to all Executive Team Management classifications identified in Section 1.03 of the Profile.

The Profile establishes the policies and procedures related to the implementation and administration of the Executive Team Compensation/Benefits Program. In the event of a conflict between the provisions of the Profile and the Administrative Policies & Procedures Manual, the provisions of the Profile shall prevail. In the event of a conflict between the provisions of the Profile and any individual employment agreement or contract, the provisions of the employment agreement or contract shall prevail.

The appointment of a person to a position on the Executive Management Team shall be made by the City Manager and will not require the establishment of an eligibility list. Employees in Executive Management positions serve at the will and pleasure of the City Manager and are not represented by an employee organization.

Section 1.02 Purpose
The Executive Benefits Profile is intended to serve as a comprehensive document to define and describe the forms and amounts of compensation and benefits for Executive Management employees. The Profile reflects all City Council actions in effect relating to the Executive Management Compensation/Benefits Program.

The various forms of compensation and benefits described in the Profile recognize that employees of the Executive Management Team should be compensated appropriately for exhibiting accountability, cost effectiveness, application of new technologies and maximization of the utilization of human, physical and fiscal resources; for exerting leadership to enhance the mission and future of the City; and for stimulating the development of employees and work methods to accomplish program goals and objectives.

Benefits provided to elected officials in the Elected Officials Benefits profile is commensurate to the benefits provided to the Executive Team Management classifications as a whole and as stated in this Profile, and not as provided in any single stand-alone executive management employee contract.

Section 1.03 Executive Management Classifications
The following Executive Management Team classifications are covered by this Profile (“Unit”):

City Manager
Police Chief
Assistant City Manager
Fire Chief
Director of Community Development
Director of Finance
Director of Human Resources/Risk Management
Director of Information Technology
Director of Management Services
Director Parks, Recreation, and Community Services
Director of Public Works
Director of Utilities
ARTICLE II. COMPENSATION
Section 2.01 Salary
The City of Rialto Classification and Compensation Plan, as adopted and periodically updated/amended by the City Council, provides the minimum and maximum salary levels for each Executive Team Management classification. At the time of appointment, salaries for Executive Management Team members shall be set by the City Manager at any amount within the respective/prescribed salary range based on the Executive Management Team member’s qualifications and any applicable financial and recruitment considerations.

Salary and benefit levels will be reviewed on a periodic basis. Such review will contain comparisons with other similar agencies within the appropriate labor market, and will be utilized to recommend competitive salary and benefit levels for Executive Management positions. Salary and benefit levels for individual positions may be adjusted from time-to-time by the City Manager (if within established ranges), or with the approval of the City Council.

Section 2.02 Performance Management
The City recognizes that to recruit and retain well-qualified Executive Management Team members, those members should be compensated appropriately. To facilitate and enhance effectiveness and productive efforts of Executive Management Team members, individual employee performance and compensation will be reviewed on a periodic basis, consistent with the provisions below:

Performance Evaluations
Progression in the salary range for Executive Management members shall be based on the individual member’s performance. The City Manager and the Executive Management Team member will develop performance goals, and the City Manager shall be responsible for evaluating the Executive’s performance in relation to the achievement of such goals on a periodic basis, but no less frequently than on an annual basis.

Performance goals to be considered include, but are not limited to the following:

Customer Service
Managing Finance and Material Resources
Leadership
Communication
Quality and Quantity of Work
Interpersonal Characteristics (i.e., listening and communication skills) Meeting and/or exceeding assigned goals and objectives
The City Manager may authorize a salary adjustment to any individual during their service to the City. This salary adjustment is authorized at the sole discretion of the City Manager and is effective at the beginning of a pay period. Consideration for an annual salary adjustment is generally made in conjunction with an annual performance evaluation, although the City Manager may approve a salary adjustment at any time. The salary adjustment may not result in an individual exceeding the maximum salary of the established salary range for their classification.

Progression in the salary range for Executive Team members shall be based on the individual member’s performance. The City Manager and Executive Team will develop performance goals and the City Manager shall be responsible for evaluating the Executive’s performance in relation to the achievement of such goals on an annual basis.

Annual progression, within the range, based on performance will be as follows:

Exceeding expectations – 7.5%
Meeting expectations – 5%
Compensation
The compensation philosophy for the City of Rialto is to establish a compensation package that will attract the highest caliber individuals. Therefore, the second component will contain comparisons with peer and subordinate compensation within the organization as well as comparison with other similar agencies within the appropriate labor market. These factors will be utilized to recommend salary and benefit levels that will facilitate continuation of this philosophy.

ARTICLE III. LEAVES
There exists a variety of different circumstances and situations which require an Executive Management Team member’s absence from work. The following is a compilation of leave benefits afforded to Executive Management Team members.

Section 3.01 Holidays
The City recognizes the following holidays per calendar year:

New Year’s Day
Labor Day
Martin Luther King Day
Veteran’s Day
President’s Day
Thanksgiving Day
Cesar Chavez Day
Friday after Thanksgiving
Memorial Day
Christmas Eve
Juneteenth
Christmas Day
Independence Day
Depending upon a Department Head’s work schedule should a Holiday fall on a regular day off, those Holiday hours will be accrued and “banked” to utilize at a later date.

Holiday Closure: During the week of Christmas Eve through New Year, the City offices will be closed. Employees may utilize accrued administrative leave, floating holidays, or vacation, in addition to the actual holidays, in order to receive full pay for the week.

Section 3.02 Vacation Leave
Executive Management Team members shall accrue up to 240 hours of vacation leave per calendar year on a per pay period basis (9.23 hours per pay period).

Effective June 30, 2019, the maximum vacation leave balance for Executive Management Team members shall be 600 hours. Employees covered under this profile shall cease to accrue vacation leave at such time the maximum leave accrual is reached, until they either cash out some of their accrued leave or use some of their accrued leave below the maximum vacation leave balance.

Upon separation of employment with the City, all accrued vacation hours shall be paid out at the Executive Management Team member’s then current rate of pay. The employee may elect to receive such payout as taxable cash or deferred compensation, up to the legal limits.

Section 3.03 Sick Leave
Executive Management Team members shall accrue up to 120 hours of sick leave per fiscal year, at a rate of 4.615 hours per pay period.

Employees who separate from city service due to retirement, resignation, layoff, or death shall be paid one hundred percent (100%) of their accumulated and unused sick leave at their current hourly rate at separation after a minimum of five consecutive years of satisfactory service with the City.

Section 3.04 Executive / Administrative Leave
Executive Management Team members shall be credited with one hundred forty (140) hours of executive/administrative leave on July 1st; hours must be used by June 30 of the following year.

Executive leave is intended to be utilized throughout the fiscal year for which it is granted and may not be carried over to a subsequent year. Executive Management Team members shall not receive any compensation for any unused executive leave, nor for any unused portion thereof.

Executive leave will be prorated for the fiscal year and credited to newly hired department heads.

Section 3.05 Optional Annual Vacation/Sick Leave Cash Out Effective December 1, 2024, for calendar year 2025 (1/1/2025) and every year thereafter: In December of each year, employees may irrevocably elect to cash-out up to combined total of 200 hours of vacation and/or sick time to be accrued in the following calendar year that are both accrued and unused at the time of the cash out.

Use of Vacation/Sick Cash-Out
In order to cash out, the employee must submit an irrevocable election form, no later than December 1 of the preceding calendar year specifying the amount of hour of each kind of leave requested to cash out, and specifying how much shall occur in each of the 2 annual distributions. The cash-out is only for hours to be accrued in the calendar year following submission of the irrevocable election form. Regardless of the number of leave hours elected, only those hours that were accrued in the calendar year after the irrevocable election that remain unused at the time of the distribution shall be cashed out.

The two annual distributions shall be June 1st and December 1st of each calendar year.

Employees who do not submit an irrevocable election form by December 1 will be deemed as foregoing participation in the optional annual leave cash-out program for that following calendar year.

This section does not preclude an employee the ability to deposit unused hours into their 457(b) deferred compensation account or their RHSA (once established) throughout the year, up to the statutory limits.

Section 3.06 Bereavement Leave
Any eligible employee who is absent from work by reason of death in the immediate family may be allowed a leave of absence with pay. The employee may be allowed up to three (3) cumulative working days (30) hours (per occurrence may be allowed for in-state services and up to five (5) cumulative working days (50 hours) per occurrence may be allowed for out-of-state services, which will not be deducted from the employee’s sick leave. This leave must be requested in writing, with the approval of the City Manager and the Director of Human Resources/Risk Management, or their designee.

For purposes of this Section, “immediate family” is defined as wife, husband, domestic partner, mother, father, grandparents, brother, sister, children or stepchildren, grandchildren, brother-in-law, sister-in-law, son-in-law, daughter-in-law, or parents-in-law of the employee.

Section 3.07 Statutory Leave
The City shall continue to provide statutory leave, including but not limited to Family and Medical Leave Act (FMLA), California Family Rights Act (CFRA), and Pregnancy Disability Leave (PDL), as required by law.

While on statutory leave, Executive Management Team members will continue to be eligible to participate in the City’s group health insurance to the same extent that coverage is provided while the member is actually working. Executive members must exhaust all accrued leave balances in connection with any statutory leave.

ARTICLE IV. BENEFITS
Section 4.01 Medical Insurance
Health and Dental Insurance
Executive Management Team Members shall be provided with a Cafeteria Plan, which will be administered by the City pursuant to Section 125 of the Internal Revenue Code. The Cafeteria Plan is designed to give employees the flexibility to choose various medical and dental insurance benefits provided through City plans. The City’s contribution to the Cafeteria Plan will be one hundred percent (100%) of the Health and Dental insurance premiums for the employee and eligible dependents.

If employee retires from City employment, employee shall retain, as a retiree, all current CalPERS Health benefits. The City shall pay employee’s, as a retiree, and dependent(s)’ Health Insurance Premiums. The City shall not reimburse Medicare premiums for Employee as a current employee or a as a retiree. Employee, as a retiree and dependents must meet the definition of “annuitant” as defined by CalPERS.

Employees declining medical insurance coverage through City sponsored plans must file proof of alternative medical insurance coverage with the Human Resources/Risk Management Department. Employees declining coverage must provide waiver verification documentation annually at open enrollment, or within 30 days after the start of each plan year.

Opt Out-Out of Medical Insurance Benefits
Executive Management Team Members may opt to receive an in-lieu payment of up to one thousand one hundred dollars ($1,100) per month of the City’s contribution if they do not purchase any of the benefits provided by the City. An Employee must provide the City with written notice/waiver of paid health insurance premiums for which the Employee is eligible annually (during open enrollment) or within 30 days after the start of the plan year.

Upon satisfying the aforementioned waiver requirements, Executive Management Team Members may opt to receive cash in lieu of enrolling in a City offered medical insurance plan, up to a maximum of $1,100 per month. Any cash in lieu will be deposited into the Employee’s deferred compensation plan (up to the legal limit).

Section 4.02 Vision Insurance
The City shall pay up to three hundred dollars ($300) per fiscal year for an eye examination, and prescription eyeglasses or contact lenses for the employee only. This benefit will be on a reimbursement basis.

Employees have the option of applying the $300 per fiscal year towards payment of the premium for a vision policy.

Section 4.03 Long Term Disability Insurance
The City will pay one hundred percent (100%) of the premium for short and long-term disability insurance for the Executive Management Classification as listed in section 1.03 of this profile.

Section 4.04 Life Insurance
The City will pay one hundred percent (100%) of the premium for employee and dependent term life insurance coverage contracted by the City for all affected employees. The benefit coverage under such program is as follows:

Employee $300,000
Spouse $ 25,000
Registered Domestic Partner $ 25,000 (so long as required by California law) Children $ 5,000
Executive Management Team Members shall control the designation of any and all beneficiaries.

If the Executive Management Team Member retires from City employment, the City shall pay the Executive Management Team Member’s and dependent(s) life insurance plan(s) coverage for the retired Executive Management Team Member and dependent(s). The Executive Management Team Member must meet the definition of “annuitant” as defined by CalPERS including minimum age and years of service requirements per the City’s contracts with CalPERS in order to be eligible to maintain the City-paid life insurance coverage.

Section 4.05 Income Protection Insurance
The City shall pay for income protection insurance coverage.

Section 4.06 Flexible Spending Account Plan
Executive Management Team members shall be eligible to participate in the City’s Flexible Spending Account Plan (FSA Plan) to make pre-tax deductions for qualifying medical, dental, vision, and dependent care expenses. The plan is established and administered in accordance with Section 125 of the Internal Revenue Service Code.

Section 4.07 Deferred Compensation
Executive Management Team members are eligible to participate in and make voluntary contributions to the City’s 457(b) or 401(a) deferred compensation plan options, subject to Plan provisions and limitations.

The City shall contribute nine hundred sixty dollars ($960) per month towards an employee’s deferred compensation plan.

Section 4.08 Education Reimbursement / Incentive
The City agrees to reimburse employees for education expenses as follows:

One hundred percent (100%) of classes to maintain State-required certification if classes attended after normal work hours.

The City agrees to reimburse employees up to two thousand five hundred dollars ($2,500) per fiscal year for expenses for tuition and books, provided that the employee achieves a passing grade in the course.

Courses must be taken at an accredited college or university after normal work hours and must be job related, with prior written approval of the City Manager.

Reimbursement shall be payable only after successful completion of course(s) and upon submittal of a written request for reimbursement being forwarded to the Human Resources/Risk Management Department within ninety (90) days of completion of course requirements.

An employee that has obtained a Master of Arts or Science degree or doctoral degree from an accredited college or university shall receive an additional seven one-half percent (7.5%) of their regular base salary.

Section 4.09 Employee Assistance Program
Executive Management Team members are eligible to participate in the City’s Employee Assistance Program. Confidentiality regarding a member’s use of this program will be maintained in full compliance with state and federal regulations.

Section 4.10 Rialto Fitness Center
Employees’ spouses, retirees, and retirees’ spouses shall be allowed free use of the Rialto Fitness Center during normal operating hours if the City has managerial control of the facility. Employees, employees’ spouses, retirees, and retirees’ spouses shall adhere to the same regulations regarding reservations and the use and care of the facilities as the general public.

Section 4.11 Technology / Equipment
The City shall provide Executive Team members with a cell phone and tablet for use and efficiency related to city business and operations.

Section 4.12 City Vehicle
The City shall provide Executive Team Members with the option of the use of a City vehicle.

Executive Management Team members assigned a City vehicle must provide the following to the Human Resources/Risk Management Department (during the onboarding process, and as may be requested periodically thereafter):

Proof of valid insurance with acceptable levels as set by the City; and Proof of valid, class C California driver’s license.

Executive Management Team members must participate in the City’s DMV Pull Notice Program.

If assigned a City-owned vehicle, the Executive Management Team member may use said vehicle for City business and for commuting to and from the member’s residence. The City will incur all costs related to the provision of the vehicle, including maintenance and insurance. The Executive Management Team member shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the member’s residence.

In lieu of utilizing a City vehicle under this section 4.12, Executive Management Team members may alternatively opt to receive five hundred dollars ($500) per month vehicle allowance to compensate for using personal vehicles for City related business in the same manner the employee would use a City provided vehicle as specified under this section 4.12.

ARTICLE V. RETIREMENT – END OF SERVICE
Section 5.01 California Public Employees’ Retirement System (CalPERS) Employee Contribution
All miscellaneous employees who are not “new members” (as defined in Government Code Section 7522.04(f), or its successor) will pay eight (8%) of their salary towards the employer’s share of PERS contributions. All public safety employees who are not new members will pay twelve percent (12%) of their salary towards the employer’s share of PERS contributions.

Miscellaneous employees who are new members will also pay eight (8%) of their salary towards PERS but must pay all the required employee contribution and any remaining amount will be credited to the employer’s share. Public safety employees who are new members will also pay twelve percent (12%) of their salary towards PERS but must pay all the required employee contribution and any remaining amount will be credited to the employer’s share.

Following any required contract amendments with PERS, contributions made by bargaining unit members described above that are towards the employer’s share shall be in accordance with IRS Code Section 414(h)(2) (or its successor) whereby employee contributions to the employer’s share of PERS are tax deferred (not subject to taxation until time of constructive receipt) so long as allowed by applicable law.

Tier 1 Retirement Benefits (applicable to ‘Classic Members’ as defined by CalPERS) Miscellaneous (Non-Safety)

2.7% @ 55 formula for CalPERS ‘Classic’ Employees for union-represented miscellaneous employees in this category.

Safety
3% @ 50 formula for CalPERS ‘Classic’ Employees, for union-represented safety employees in this category.

Tier 2 Retirement Benefits (applicable to ‘New Members’ as defined by CalPERS) Miscellaneous (Non-Safety)
A new member is defined as an individual who meets the definition of “new” member for purposes of retirement pension benefits pursuant to the Public Employees’ Pension Reform Act of 2013. Generally, this includes individuals that are hired into a regular position on or after January 1, 2013 or former members who have more than a six-month break in service. CalPERS ultimately determine who is a new member in compliance with the law.

New miscellaneous members shall be eligible for the 2% at 62 formula for CalPERS ‘New Members,’ with the same CalPERS optional contract benefits and employer pick-up of employee share of contributions as the most generous of those collectively bargained, or otherwise implemented consistent with the Public Employee’s Pension Reform Act of 2013, for union-represented miscellaneous employees in this category. Pursuant to current law, the employee contribution for new miscellaneous member shall not be less than one-half of the total normal cost rate, as determined annually by CalPERS, and shall be paid entirely by the employee.

Safety

2.7% @ 57 formula for CalPERS ‘New Members,’ with the same CalPERS optional contract benefits and employer pick-up of employee share of contributions as the most generous of those collectively bargained, or otherwise implemented consistent with the Public Employee’s Pension Reform Act of 2013, for union-represented safety employees in this category. Pursuant to current law, the employee contribution of new safety members shall not be less than one-half of the total normal cost rate, as determined annually by CalPERS, and shall be paid entirely by the employee.

Section 5.02 Employer-paid Member Contributions (EPMC)
Specific to Classic Local Miscellaneous and Classic Local Public Safety, as those terms are defined by CalPERS, the City will report as “compensation” for retirement purposes the EPMC, for any member retiring after January 1, 2011. Classic Local Miscellaneous members will receive 8% of the normal contributions as EPMC, and Classic Local Public Safety members will receive nine percent (9%).

Section 5.03 Severance Pay
In recognition that Executive Management Team members serve at the will and pleasure of the City Manager, the City Manager may offer severance pay to a member upon termination of employment without cause, in an amount up to the equivalent of three (3) months of the employee’s then current base salary and benefit levels.

At the City Manager’s discretion, severance pay shall be issued as a lump sum or in accordance with the City’s regular pay periods.

Although the City Manager is included as one of the Executive Management Classifications, the City Manager continues to have sole discretion as to appointment and termination of any other Executive Management employee and such employees report to the City Manager and serve at the will and pleasure of the City Manager. 2

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