Cities Index.
Agenda packet

San Carlos City Council
September 11, 2023

Document
Agenda packet
Meeting
September 11, 2023
Body
San Carlos City Council
Pages
30
Original file
17.1 MB
Text extracted from the city's file for reading and search. Open the original on cityofsancarlos.primegov.com. That file is the official record.

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding is entered into pursuant to the provisions of Section 3500 et. seq. of the Government Code of the State of California.

The Employee Relations Officer (City Manager) is the representative of the City of San Carlos in employer-employee relations matters.

Local 829, American Federation of State, County and Municipal Employees, AFL -CIO, is the formally recognized employee organization for the employees assigned to those classifications identified in Appendix A hereof.

The parties have met and conferred in good faith regarding wages, hours and other terms and conditions of employment for the employees in said representation unit, and have freely exchanged information, opinions and proposals and have endeavored to reach a greement on all matters relating to the employment conditions and employer-employee relations of such employees.

This Memorandum of Understanding shall be presented to the San Carlos City Council as the joint recommendation of the undersigned parties for salary and employee benefit adjustments for the period specified in Section 20, Effective Date and Termination, below.

Section 1 - No Discrimination

There shall be no unlawful discrimination by the City or the Union against an employee because of the employee’s race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, reproductive health decisionmaking, military or veteran status or because the employee engaged or refused to engage in protected union activities.

Section 2 - Hours of Work

2.1 Regular Schedules

The standard workweek for employees occupying full-time positions consists of forty (40) hours in any designated five (5) out of seven (7) consecutive days.

The City Manager shall fix the hours of work with due regard for the convenience of the public and the laws of the State and the City.

Alternate work schedules for FLSA non- exempt employees (including 4/10 or 9/80 schedules) may be approved on an individual or work group basis by the City Manager if approval is recommended by the relevant affected department head. Employees assigned

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to an alternate 4/10 or 9/80 schedule will continue to work forty (40) hours per FLSA work week. While the City is supportive of providing alternate schedules when feasible, the City shall remain open for business Monday through Friday from 8:00 a.m. until 5:00 p.m. and will continue to provide a high level of service to the citizens of San Carlos.

2.2 Flexible Hours

The City will consider employee requests for flexible starting and ending hours when they can be accommodated within a department's operational and staffing needs and are approved by the department head. The City will also consider the feasibility of job-sharing if two (2) employees request to job-share one position.

Section 3 - Overtime

3.1 Authorization

All compensable overtime must be authorized by the Department Head or designated representative in advance of being worked. If prior authorization is not feasible because of emergency conditions a confirming authorization must be made on the next regular working day following the date on which the overtime was worked.

3.2 Definition

A. Any authorized time worked by a non- FLSA exempt employee in excess of forty (40) hours in the applicable designated FLSA workweek shall be considered overtime and shall be compensable at the rate of one and one -half (1½) times the employee's regular straight-time rate of pay. Any authorized time worked in excess of twelve (12) hours shall be compensable at the rate of two (2) times the employee’s regular straight-time rate of pay. Compensatory time off may be taken in lieu of overtime payment. For purposes of Section 3, Overtime, and any applicable state or federal law, “time worked” excludes time in paid status but not worked (e.g. paid sick, vacation, holiday, disability or other compensatory time off.) Compensatory time off shall be at a time mutually agreeable to the employee and the Department Head. Compensatory time off which accrues in excess of forty-eight (48) hours will be liquidated by monetary payment during the month of October. An employee shall not be required to reduce a scheduled workday in whole or in part to avoid the payment for overtime worked on another scheduled work day.

B. The parties acknowledge that the classification of Senior Systems Analyst, as constituted on July 1, 2008; Recreation Supervisor as constituted on September 1, 2010; Associate Engineer, Public Workers Supervisor and Recreation Coordinator as agreed on November 17, 2015 and Associate Planner as constituted on January 26, 2015 qualifies for exemption from overtime pay under applicable law and is therefore excluded from overtime under this agreement. Other positions or

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classifications may be exempt from overtime pay by mutual agreement between the City and Union if they qualify for exempt status under the FLSA. Employees in a classification exempted from overtime by mutual agreement shall be credited with sixty (60) hours of Administrative Leave with pay each January 1. If an overtime exempt employee is hired after January 1 of the calendar year, they shall be credited with a prorated amount of Administrative leave based on the number of pay periods remaining in the calendar year. Use of Administrative Leave shall be governed by the same rules of use that apply to unrepresented management. Unused Administrative Leave does no t carry over from one year to the next, is not compensable on termination, and is forfeited if not used within the calendar year in which it is credited.

3.3 Court Time

An employee who is ordered to report to work on an off -day for the purpose of appearing in court and who does so at the specified time shall receive a minimum of three (3) hours’ pay at the employee’s hourly straight time rate of pay subject to section 3.2 above.

An employee who is ordered to report to work for the purpose of appearing in court on an on-duty day more than three (3) hours prior to the employee’s regular starting time shall receive a minimum of three (3) hours’ pay at the employee’s hourly straight time rate of pay, subject to section 3.2 above. An employee who is ordered to report back to work on an on-duty day for the purpose of appearing in court shall receive a minimum of two (2) hours’ pay at the employee’s straight time hourly rate of pay, subject to section 3.2 above, when such court appearance time is not continuous with other assigned work time.

3.4 On-Call/Call-Back

A. On-Call Compensation

Either one (1) hour compensatory time off or one (1) hour pay at the straight- time rate, at the option of the employee, shall be granted to employees required to be in an “on-call” status during the period that begins with the end of one workday and the beginning of the next work day.

Either three (3) hours’ compensatory time off or three (3) hours’ pay at the straight- time rate, at the option of the employee, shall be granted to employees required to be in an “on-call” status during the period that begins with the start of the workday Saturday and the beginning of the workday Monday.

Either four (4) hours’ compensatory time off or four (4) hours’ pay at the straight - time rate, at the option of the employee, shall be granted to employees required to be in an “on -call” status on the fixed holidays recognized in Section 5, Holidays, of this Memorandum of Understanding.

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Employees designated to be “on-call” on Christmas Eve, New Year’s Eve or Easter Sunday, shall receive three (3) hours of compensatory time or three hours’ pay at straight time.

B. Call Back

An employee recalled to work outside of and not contiguous with regularly scheduled hours shall be compensated a minimum of three (3) hours at the overtime rate. For the purpose of this Section, pay for call -back shall begin from the time the employee leaves the employee’s residence to report for work and shall end at the time the employee returns to the employee’s residence. Such travel time shall not exceed fifteen (15) minutes when reporting to work and fifteen (15) minutes after the work period.

Section 4 - Salaries

4.1 Bi-Weekly Salary Rates

A. The salary rates for all classifications are listed on Appendix A, attached hereto.

For the period beginning July 3, 2023, the applicable base wage rates set forth in Appendix A reflect a base wage rate increase of five percent (5%) over base wage rates in effect on June 30, 2023 for all classifications covered by this Memorandum of Understanding. For the period beginning on July 1, 2024 applicable base wage rates set forth in Appendix A reflect an additional base wage rate increase equal to three percent ( 3%) of the base wage rates in effect on June 30, 2024, for all classifications in the bargaining unit . For the period beginning on July 1 4, 2025 applicable base wage rates set forth in Appendix A reflect an additional base wage rate increase equal to three percent (3%) of the base wage rates in effect on June 30, 2025, for all classifications in the bargaining unit.

Effective each year beginning on the first pay period of July 2023 – June 2025, some positions are eligible for equity adjustments based on market comparable in the following agencies:

Burlingame, Cupertino, Foster City, Fremont, Hayward, Menlo Park, Milpitas, Mountain View, Palo Alto, Redwood City, San Mateo, Santa Clara, Sunnyvale, and Union City.

All adjustments have been incorporated into the hourly wage schedule as shown in Appendix A.

B. Before commencement of negotiations over a successor to this 2023-2026 Memorandum of Understanding, the City will conduct a compensation survey and share the results with the Union.

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4.2 Salary Plan

No increase in salary shall be automatic merely upon completion of a specified period of service. All increases shall be based on merit as established by record of the employee's performance and shall require recommendation of the Department Head and approval by the City Manager. In case of an unsatisfactory employee performance evaluation, an increase in salary may be withheld. An employee who is denied an increase in salary may discuss such denial with the employee’s Department Head and the City Manager. The decision of the City Manager shall be final and not grievable.

All increases or decreases in compensation that occur under this Memorandum of Understanding shall take effect at the start of the first pay period following the date of the increase or decrease.

The City Manager may at any time , and following consultation with the relevant Department Head, advance an employee to a higher step rate within the salary range fixed for the classification if the City Manager determines that such action will facilitate recruitment, retention, workforce motivation, or other City operational interests.

The City Council may grant equity salary increases, at its discretion, to any classification(s) covered by this Memorandum of Understanding during the term of this Memorandum of Understanding. The City will notify the Union of the Council's decision to grant any such increases in salary range(s) and the Council will be mindful of compaction of the salary ranges in granting any such increases.

Except as provided above in this subsection, an employee who has received a satisfactory rating on an employee performance evaluation shall receive increases in salary according to the following plan:

Step 2 upon completion of twelve (12) months' satisfactory service at Step 1.

Step 3 upon completion of twelve (12) months' satisfactory service at Step 2.

Step 4 upon completion of twelve (12) months' satisfactory service at Step 3.

Step 5 upon completion of twelve (12) months' satisfactory service at Step 4.

4.3 Pay for Temporary or Interim Appointment to a Higher Classification

An employee who is temporarily appointed and performs the work of a position in a higher classification temporarily vacated by its incumbent either within or outside of the Bargaining Unit for more than four (4) consecutive workdays shall be paid five percent (5%) above the regular rate the employee received in the employee’s regular lower classification. However, if the position in the higher classification is vacant (has no incumbent) and the employee is given an interim appointment to such position pending the permanent filling of such position, the employee shall be paid five percent (5%) above the

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regular rate received in the employee’s regular lower classification, or the rate of the first step of the range assigned to the higher classification, whichever is greater. In no event shall such pay exceed the maximum of the range of the classification in which the employee is temporarily assigned. Payment shall commence with the first (1 st) workday of the temporary or interim assignment and shall continue, including holidays, during the period of temporary or interim assignment. Such appointment shall be in writing by the Department Head and approved by the City Manager or -the City Manager’s designated representative.

4.4 Pay on Promotion

An employee promoted to a classification having a higher salary range shall be placed on that step in the new range which provides a salary increase for the employee of at least five percent (5%), provided that the employee’s new salary shall not exceed the top step of the pay range for the classification to which appointed.

Section 5 - Holidays

5.1. Holidays

The following days are recognized as City holidays:

(1) January 1 New Year's Day
(2) Third Monday in January Martin Luther King, Jr. Day (3) Third Monday in February President's Day
(4) Last Monday in May Memorial Day
(5) June 19 Juneteenth
(6) July 4 Independence Day
(7) First Monday in September Labor Day
(8) November 11 Veterans Day
(9) Fourth Thursday in November Thanksgiving Day
(10) Fourth Friday in November Day after Thanksgiving
(11) December 25 Christmas Day

For purposes of this Memorandum of Understanding, a “recognized holiday” refers to the calendar day listed above in this section on which the listed holiday occurs each year. A recognized holiday shall be deemed “observed” when the employee takes the holiday off from work (but not a compensatory day off in lieu of a holiday).

5.2 Float Time

Regular full-time employees will also be entitled to forty (40) hours of Float T ime. Such float time shall be arranged at least two (2) weeks in advance of the day desired and scheduled by mutual agreement with the Department Head. Th e forty (40) hours of Float Time will be pro-rated for new employees hired during the year. Unused Float Time is not carried forward into subsequent calendar years.

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5.3 Saturday and Sunday Holidays

Except as provided in subsection 5.4 below, a recognized City holiday that falls on Saturday shall be observed the preceding Friday, and a recognized holiday that falls on Sunday shall be observed on the following Monday.

5.4 Observance of Recognized Holidays Based On Work Day Schedule

If a recognized City holiday falls on the employee’s first regularly scheduled day off, the employee’s immediately preceding scheduled work day shall be observed as the employee’s holiday. If the recognized City holiday falls on the employee’s second or third scheduled day off the employee shall observe the employee’s next scheduled work day as the holiday.

5.5 Compensation for City Holidays

Except as provided in this subsection 5.5, the City shall pay the full -time employee eight (8) hours of straight time pay when the employee observes and does not work on a recognized City holiday; p rovided that the employee is in pay status on the employee’s regularly scheduled work days immediately before and after the holiday.

FLSA non-exempt employees required to work on a holiday shall be compensated for such time worked at the overtime rate (in pay or compensatory time off as provided in section

3.2 above) and in addition shall receive eight (8) hours' pay at the straight -time rate for holiday pay.

For an employee on a nine -eighty (9/80) schedule, if the recognized City holiday is observed on the day that the employee is scheduled to work an eight (8) hour workday, the employee shall receive eight (8) hours of holiday for that day. If it is observed on a nine (9) hour work day, the employee shall receive eight (8) hours of holiday and shall charge an hour of compensatory time off, float time, or accumulated vacation or, if the employee has no remaining accruals in those accounts, leave without pay to make up the remaining hour.

Section 6 - Vacations

6.1 Entitlement

All employees who hold full-time positions are entitled to ninety-six (96) hours of vacation pay upon successful completion of the employee’s first year of continuous service.

Employees may take accrued vacation after the completion of six (6) months' service. After the first year, employees shall accrue vacation according to the following schedule:

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Length of Service Vacation Accrual Rate
1st year to 4 years 12 days (96 working hours/3.694 hours bi- weekly) After 4 years to 11 years 16 days (128 working hours/4.924 hours bi- weekly) After 11 years 17 days (136 working hours/5.231 hours bi- weekly) After 12 years 18 days (144 working hours/5.54 hours bi- weekly) After 13 years 19 days (152 working hours/5.847 hours bi- weekly) After 14 years to 16 years 21 days (168 working hours/6.462 hours bi- weekly) After 16 years 22 days (176 working hours/6.77 hours bi- weekly) After 17 years 23 days (184 working hours/7.077 hours/bi- weekly) After 18 years 24 days (192 working hours/7.385 hours/bi- weekly) After 19 years 25 days (200 working hours/7.70 hours/bi- weekly)

6.2 Vacation Accrual

No employee shall be allowed to accumulat e more than two (2) times the amount of vacation the employee would earn in a calendar year at the employee’s current rate of accrual. The City Manager may grant an exception to this policy. If an employee reaches the applicable accumulation ceiling, the employee shall continue to accrue vacation and the hours in excess of the accumulation ceiling at the end of September each year will be paid to the employee in the month of October. Payment will be at the employee’s regular straight time hourly rate, exclusive of premiums, as of the September 30 preceding the October payment.

6.3 Vacation Scheduling
The time at which employees shall be granted vacations shall be at the discretion of the Department Head. Length of service shall be given consideration when giving preference as to vacation time.

6.4 Holiday Closures
The City Manager may designate up to five (5) specific work days in each calendar year between Christmas Eve and New Year’s Eve during which employees may be required to take time off, charged to leave without pay, the employee’s accumulated compensatory time, vacation, floating holidays, or a combination thereof, as determined by the affected employee. The days must be consecutive for the employee, but may differ between employees. Employees who do not have sufficient accumulated time off in their account to cover the required time off may request, and will be granted, sufficient advance on their vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by the employee. Time off of work under this provision shall not be deemed a layoff.

6.5 Vacation Cash Out
An employee may make an irrevocable election to sell back to the City forty (40) hours in a calendar year of accumulated vacation at the employee’s base rate of pay.

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Sell back requests must be received by Payroll no later than December 31 for the following calendar year’s elections. Elected hours not requested for distribution (sell back) by December 1 will be automatically distributed in the next pay period (sell bac k cannot be more than the hours available at time of distribution).

Section 7 - Sick Leave

7.1 Accrual

Employees shall accrue sick leave credit at the rate of eight (8) hours per month. Unused sick leave may be accrued without limit.

7.2 General

Employees shall not be entitled to sick leave as a matter of right, but only in accordance with the provisions of law and this Memorandum of Understanding.

7.3 Usage

Employees are entitled to be paid for sick leave used, to a maximum of the time accrued, under the following conditions:

A. The employee's illness, injury, exposure to contagious disease, or pregnancy, childbirth, or related medical conditions which incapacitates the employee from performance of duties.

B. The employee's receipt of required medical or dental care or consultation.

C. The care of the employee's ill or injured immediate family member (as defined in Section 7.5) to a maximum of forty-eight (48) hours per calendar year or as required by applicable law.

7.4 Procedures for Requesting and Approving Sick Leave

When the requirement for sick leave is known to the employee in advance of the employee’s absence, the employee shall request authorization for sick leave at such time in the manner hereinafter specified. In all other instances the employee shall notify the employee’s supervisor as promptly as possible by telephone or other means.

Subject to the limits of applicable law, the Department Head, in consultation with the Human Resources D ivision, may require a physician's statement from an employee who applies for sick leave, or make whatever investigation into the circumstances that appears warranted before taking action on the request.

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7.5 Bereavement Leave

In case of death within the immediate family of an employee, such employee shall be entitled to remain absent from duty with pay in order to attend the funeral or memorial service for a maximum of five (5) workdays, which need not be taken consecutively, provided that the bereavement leave must be taken within three (3) calendar months to the date of death.

For the purpose of this Section, immediate family is defined as spouse, domestic partner as defined by the State of California, parent, grandparent, sibling, child, grandchild, parent- in-law, stepchild, stepparent, or such person who has served in the place of the employee’s parent.

Such leave shall not be charged against the employee as leave without pay nor deducted from the employee's accrued sick or vacation leave balances.

7.6 Jury Duty

An employee summoned to jury duty shall inform employee’s supervisor and if required to serve, may be absent from duty with full pay; provided, however, the employee must remit to the City, through the employee's Department Head, within fifteen (15) days after receipt, all fees received except those specifically allowed for mileage and expenses.

Section 8 - Layoff and Reemployment

Permanent employees may be laid off, without prejudice, due to lack of funds or curtailment of work. No permanent employee, however, may be separated while there are temporary employees serving in the same class or position in the City service, unless that employee has been offered the temporary work.

When a Department Head is instructed by the City Manager or the City Council to reduce the number of employees, layoff shall be made in accordance with the following rules:

Layoffs shall be by job classification according to reverse order of seniority as defined by total continuous City service as a regular full -time employee (i.e. forty (40) scheduled hours of work per week). A regular employee working in a full-time position that accepts a reduction to a less than full-time but at least half-time position in the same classification will receive credit for such time worked on a prorated basis.

The employee to be laid off may displace the least senior employee in the lateral or next lower classification in which the bumping employee previously held permanent status provided the displaced employee has less total continuous City service.

An employee may, with the approval of the City Manager, demote or transfer to a vacant position for which the employee possesses the necessary skills.

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The name of each employee laid off shall be entered on a Reemployment List in order of seniority for two (2) years.

Former employees who return within two (2) years who are appointed from a reemployment eligibility list shall be restored all rights accrued prior to being laid off, such as sick leave, vacation accrual level, longevity and credit for years of service. However, such re -employed employees shall not be eligible for benefits for which they receive compensation at the time of or subsequent to the date they were laid off.

Section 9 - Hospitalization and Medical Care

9.1 Health Plan Contributions for Active Employees

Through June 30, 2026, the City shall contribute the minimum amount required by law toward the monthly premium for hospital and medical care benefits under the CalPERS (PEMHCA) Health Plan for each active employee enrolled in a CalPERS ( PEMHCA) Health Plan. Any remaining premium shall be paid by the employee either through the section 125 Plan (described below) or payroll deduction or a combination thereof.

9.2 Section 125 Cafeteria Plan Components and City Contribution Increases

A. The City will continue to provide a Cafeteria Benefits plan, subject to the requirements and availability of Internal Revenue Code Section 125, allowing employees to use pre-tax compensation for PEMHCA medical premiums, eligible dependent care expenses, eligible uninsured medical expenses, or a combination thereof.

B. T he City shall contribute each month up to the amounts listed below, based on the employee’s level of medical plan enrollment, but not exceeding the amount charged for the plan in which the employee has enrolled, to each active employee’s section 125 Plan account.

Level of Medical Plan Enrolment Amount of Monthly City Contribution Effective January 1, 2023
No Plan (Opt out)* $1,011.51
Employee Only $1,011.51
Employee + One $1,721.99
Employee + Two or more $2,080.64

Effective January 1, 2024 the City will increase the above contribution amounts .

The increase will be a percentage that reflects that portion of the average January 1, 2024 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent ( 2%). For example, if the combined average increase is seven percent (7%), the City’s contribution will increase by five

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percent (5%).

Effective January 1, 2025 the City will increase the 2024 amounts. The increase will be a percentage that reflects that portion of the average January 1, 2025 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMCHA plans (offered within San Mateo County) that exceeds two percent (2%). For example, if the combined average increase is seven percent (7%), the City’s contribution will increase by five percent (5%).

Effective January 1, 2026 the City will increase the 2025 amounts. The increase will be a percentage that reflects that portion of the average January 1, 2026 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMCHA plans (offered within San Mateo County) that exceeds two percent (2%). For example, if the combined average increase is seven percent (7%), the City’s contribution will increase by five percent (5%).

*An employee may elect to opt out of medical insurance coverage only in accordance with sub -section 9.5 below. The amount shown in this table is the amount resulting from such election.

C. Any amount remaining after the employee has designated the portions of the employee’s 125 plan contribution amount for the purposes described in subsection

9.2.A above will be deemed forfeited.

D. Procedures for the administration of the Section 125 Plan shall be determined by the City. The City shall assume the administrative cost for the Plan.

E. Health Flexible Spending Account.

During an annual open enrol lment period, an employee may elect to enter into a salary reduction agreement with the City whereby the City will direct the amount of the salary reduction on a pre -tax basis, to the extent allowed by Internal Revenue Code section 105, into the employee’s Health Flexible Spending Account (“HFSA”).

The employee’s election is irrevocable until the next open enrollment period, except on the occurrence of a qualifying event specified in the City’s Plan Document. The employee will forfeit all unused funds remaining in the employee’s HFSA at the end of the plan year or at the end of the grace period, if any, allowed under the City Plan Document, whichever is later. During the period allowed under the Plan Document, the employee may use the funds in the employee’s HFSA to obtain reimbursement for otherwise unreimbursed eligible medical expenses.

F. Dependent Care Assistance Plan Account

During the annual open enrollment period, an employee may elect to enter into a salary reduction agreement whereby the City will direct the amount of the salary reduction on a pre -tax basis, to the extent permitted by IRC section 129, into the

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employee’s Dependent Care Assistant Plan (“DCAP”) account. The employee’s election is irrevocable until the next open enrollment period, except on occurrence of a qualifying event specified in the City’s Plan Document. The employee may request reimbursement of qualifying dependent care expenses from the employee’s DCAP Account. The employee will forfeit all unused funds remaining in the employee’s DCAP account at the end of the plan year or at the end of the grace period, if any, allowed under the City Plan Document, whichever is later.

9.3 Deferred Compensation Incentive

Effective the first full pay period after the successor MOU is adopted by the City Council and signed by the parties, the City shall provide a contribution to an employee's deferred compensation account in an amount equal to the employee's contribution at a ratio of 1:1, to a maximum of two hundred and twenty-five dollars ($225.00) per month. This shall not imply any City endorsement or responsibility for the performance of any deferred compensation account or instrument selected by the employee.

9.4 Domestic Partner Coverage

The City will provide domestic partner medical coverage to the extent and in the manner which CalPERS health plan carriers allow for the domestic partner’s enrollment

9.5 Alternate Medical Benefit Program

Eligible employees who are covered by health insurance coverage through their spouse or other source with benefits comparable to those provided through City sponsored plans may waive coverage under the City sponsored plans. The employee shall sign a waiver form provided by the Human Resource s Department. If the employee waives coverage as provided herein, the City will pay the amount of the City’s monthly individual employee- only contribution to the employee’s Section 125 plan account, as provided in Subsection

9.2.B above. Such payment will be made each month that the employee continues to waive coverage and receive health insurance through the employee’s spouse or other source.

Re-enrollment in the City sponsored CalPERS Plan is subject to the limitations/exclusions/time period instituted by CalPERS. Employees are eligible to re - enroll during the CalPERS open enrollment period. Upon the effective date of the re - enrollment, payments pursuant to this subsection 9.5 cease.

9.6 Retiree Health Plan Contributions

If an employee has worked for the City of San Carlos a minimum of ten (10) years and retires with a PERS retirement, the City will allow the retiree only to stay on the City’s dental and vision insurance plans provided the employee pays the full premium(s) plus a

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two percent (2%) administration fee. This option must be exercised at the time of retirement.

Through June 30, 2023 the City shall contribute the minimum amount required by law toward the monthly premium for hospital and medical care under the CalPERS (PEMHCA) Health Plan for individuals who retire from the City through CalPERS.

9.7 Longevity Recognition Program

A. Employees hired by the City before January 1, 2009 who have completed at least ten (10) years of continuous City service immediately preceding such retirement shall be eligible for a monthly payment equal to the City’s employee -only contribution to the Section 125 plan, as provided under subsection 9.2.B above, following retirement and continuing until the employee’s death. This amount shall increase by the same percentages and at the same times as the City’s Section 125 Plan contribution increases for active employees selecting employee-only medical coverage.

B. Employees hired on or after January 1, 2009 but before December 13, 2010 (for employees formerly included in the mid- management unit) or February 28, 2011 (for all other employees) who retire from the City through CalPERS who have completed at least fifteen (15) years of continuous City service immediately preceding such retirement shall be eligible for a monthly payment of three hundred fifty dollars ($350) per month following retirement and continuing until the employee’s death. This amount shall not change after retirement. This City will not make such payments for employees hired on or after the respective cutoff dates set forth in this subsection 9.7.B.

9.8 Dental Plan

The City shall provide a Dental Plan , through a carrier or administrator of its choice, for eligible employees and their dependents and shall pay a maximum monthly amount of one hundred seventy-five dollars ($175). The Plan will continue to pay the dentist directly and the employee is responsible for paying any remaining balance directly to the dentist/orthodontist.

The annual maximum reimbursement for dental expenses per fiscal year per covered participant is a total of two thousand dollars ($2,000). During the life of this agreement the City may select to implement a substitute plan(s) of benefits to replace the existing dental plan. Any enrollee’s monthly premium amount for such substitute plan in excess of the amount paid by the City for the plan in effect prior to implementation of the substitute plan will be paid by the employee through payroll deduction.

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9.9 Vision Care Plan

The City agrees to contribute up to fifteen dollars ($15.00) per month per employee in the bargaining unit towards the cost of a vision plan covering the employee only. Such plan shall include annual frames, lenses and examinations.

Employees are permitted to enroll their dependents in the Vision Care Plan. The entire premium for the dependent coverage will be paid by the employee by payroll deduction at their own expense at the applicable two-party or family rate then in effect minus the City’s contribution for the employee’s coverage.

9.10 Long- Term Disability

The City shall continue to provide long- term disability insurance for employees in the Professional and Technical Employee Unit; the waiting period for long- term disability benefits shall be forty-five (45) days. The Long-Term Disability premium is taxed to allow the long-term disability payment to be issued on a tax-free basis.

9.11 Short-Term Disability

Within sixty (60) days after the Council adopts this Memorandum of Understanding, the bargaining unit may by majority vote elect to participate in the State Disability Insurance program. If such election is made, the City will deduct the premiums from the paychecks of employees and forward payment to the State.

Section 10 - Life Insurance

The City shall provide for each eligible employee life insurance in the amount of Two Hundred Thousand Dollars ($200,000)
at no cost to the employee. The premium for the amount over $50,000 is subject to Federal and State taxes.

Section 11 - Retirement

11.1 Formula for Employees Hired Before March 16, 2009

For Miscellaneous employees hired before March 16, 2009, the City provides the PERS

2.7% at 55 retirement benefit formula with PERS single highest year final average compensation, conversion of unused sick leave to PERS service credit and Industrial Disability

11.2 Formula for Employees Hired March 16, 2009 through April 22, 2012

For Miscellaneous employees hired on or after March 16, 2009 but before April 23, 2012 the City provides the PERS 2.5% at 55 retirement benefit formula with the PERS single highest year final compensation earnable average, conversion of unused sick leave to PERS

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service credit and Industrial Disability.

11.3 Formula for Employees Hired After April 22, 2012 through December 31, 2012 or Classic CalPERS Members

For Miscellaneous employees hired after April 2 2, 2012 but before January 1, 2013 t he City provides the PERS 2.0% at 55 retirement benefit formula with the average of the three highest years’ compensation earnable as the basis for calculating the pension, conversion of unused sick leave to PERS service credit, and Industrial Disability.

11.4 Formula for Employees Hired On or After January 1, 2013 (New CalPERS Members)

For Miscellaneous employees hired on or after January 1, 2013 the City provides the PERS

2.0% at 62 pension formula with the average of three (3) highest ye ars’ pensionable compensation as the basis for calculating pension, conversion of unused sick leave to PERS service credit and Industrial Disability pursuant to the California Public Employee Pension Reform Act of 2013 (“PEPRA”) . Notwithstanding the foregoing, if PERS determines, consistent with law, that an employee hired by the City on or after January 1, 2013 is an eligible “Classic” member of the PERS (as such status is defined by law) subject to the

2.0% at age 55 pension benefit formula set forth in subsection 11.3 above, the City will provide the employee with that formula rather than the 2.0% at age 62 formula otherwise provided under this subsection 11.4.

11.5 Formula for Fire Safety Employees Hired Prior to January 1, 2013 or Classic CalPERS Members

For Fire Safety employees hired before January 1, 2013 or “classic” CalPERS members as defined by CalPERS, the City provides the PERS 2.0% at 50 retirement benefit formula with the average of the three highest years’ compensation as the basis for calculating the pension, conversion of unused sick leave to PERS service credit, and Industrial Disability.

11.6 Formula for Fire Safety Employees Hired On or After January 1, 2013 (New CalPERS Members)

For Fire Safety employees hired on or after January 1, 2013 that are “new members” of CalPERS as defined by the Public Employee Pension Reform Act of 2013 (“PEPRA”), the City provides the PERS 2.7 at 57 retirement benefit formula with the average of the three highest years’ compensation as the basis for calculating pension, conversion of unused sick leave to PERS service credit, and Industrial Disability.

11.7 Pre-Tax Deduction for Employee Pension Contributions

The City will continue to offer the voluntary salary reduction option offered by Section 414(h)(2) of the Internal Revenue Service Code and the Public Employees Retirement System.

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11.8 Retirement Notice

An employee who intends to retire from the City must deliver to the City Manager a written notice of the employee’s planned retirement date as far in advance of that date as possible, but not less than one hundred eighty ( 180) days in advance of the employee’s last anticipated day of actual work. If such notice is given, the employee will be allowed to use the employee’s accumulated unused vacation credits after the employee’s last actual day of work and prior to the employee’s retirement date. However, if less notice is given, the employees will not be allowed to run out the employee’s accumulated unused vacation credits prior to retirement unless the employee provides documentation of extenuating circumstances that, in the City Manager’s judgment, rendered the giving of the notice infeasible to the extent it was not given.

Section 12 - Safety Shoes and Safety Glasses

12.1 For employees in the Building Inspector, Public Works Inspector, Public Works Assistant Superintendent, Associate Engineer, Civil Engineering Assistant and Fire Prevention Officer classifications the City shall establish and maintain a safety shoe purchase program through which employees may purchase safety shoes. The maximum allowance toward the purchase shall be three hundred fifty dollars ($350) annually. The cost of safety shoes (including work boots) under this section shall be covered only if they meet or exceed the requirements of American Society for Testing Materials (ASTM) standard F2413- 05, or its successor(s) if any, and bear the manufacturer’s mark denoting such compliance.

12.2 Effective with the first pay period commencing on or after the date this this Memorandum of Understanding is adopted by the City Council, whichever is later, the City will commence paying employees in the Fire Prevention Officer classification an allowance of eight hundred dollars ($800) per year paid in equal installments each bi-weekly pay period.

The allowance will be paid to the employee while in active service for the acquisition, maintenance and cleaning of the Fire Prevention Officer ’s City-specified and approved uniform.

The City shall provide safety glasses to employees who are required to wear safety glasses in the performance of their job.

Section 13 - Promotions

All promotions shall be made by competitive examination conducted in accordance with the following rules:

"The examination will give due consideration for length of service and capacity for the new position as demonstrated by a promotional or an open competitive examination. A candidate for promotion shall submit adequate evidence that the candidate can perform the essential job duties of the position."

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An employee to be eligible to compete for promotion must have permanent status in a lower related class. A promotional competitive examination shall consist of any combination of the following:
written tests, oral tests, ratings on training or experience, performance tests, and shall fulfill the qualifications as set forth in the job classification. The combination in each case or procedure for the determination of the qualifying grade shall be announced in advance of the examination and shall take into consideration approved practices.

All employees who qualify in the promotional examination shall be placed on a promotional eligibility list for the class of position in the order of their examination ratings.

Selection decisions shall be made by the City based on the City’s determination of relative qualifications and merit.

An employee failing the employee’s probationary period in a promotional class shall have the right to return to the classification from which the employee was promoted provided that the employee had permanent status.

Section 14 - Grievances

14.1 Definition

A grievance is any dispute which involves the interpretation or application of any provision of this Memorandum of Understanding excluding, however, those provisions of this Memorandum of Understanding which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance procedure. Letters of reprimand are not subject to the grievance procedure.

14.2 Procedure

Grievances shall be processed in the following manner:

STEP 1 – Immediate Supervisor. A grievance may be filed by an employee in the employee’s own behalf, or jointly by a group of employees or by the Union.

Within ten (10) calendar days of the event giving rise to a grievance, the employee who believes the employee has a grievance may discuss such a complaint with the immediate supervisor in the presence of a Union representative if the employee so requests.

Grievances not presented within the time period shall be considered resolved. No grievance involving suspension, dismissal or demotion of an employee will be entertained unless it is filed in writing with the immediate supervisor within ten (10) calendar days of the time at which the affected employee was notified of such action.

The immediate supervisor will meet with the employee to discuss the grievance and attempt to resolve the matter. If the issue is not resolved at this level, or if the employee elects to

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submit the grievance directly to the Union, the matter will be taken up in the following manner:

STEP 2 – Department Head. If the grievance is not resolved in Step 1, within ten (10)

calendar days of the event giving rise to a grievance, the employee or an official of the Union may present the grievance in writing to the Department Head. The written grievance shall include a state ment of the relevant facts, cite the specific provision(s) of this Memorandum of Understanding allegedly violated, and the specific remedy sought. The Department Head shall investigate the grievance , meet with the complainant and attempt to reach a satisfactory resolution of the problem. The Department Head shall respond to the grievance in writing within ten (10) calendar days from receipt of the written grievance.

STEP 3 – City Manager. If the grievance is not resolved in Step 2, the employee or an official of the Union may, within ten (10) calendar days from receipt of the response from the Department Head, present the grievance in writing to the City Manager. The City Manager, or a representative designated by the City Manager who shall not be the Department Head shall investigate the merits of the complaint, meet with the complainant and, if the complainant is not the Union, meet with the officials of the Union and attempt to resolve the grievance. The City Manager will carry out these steps within a reasonable period, normally not to exceed twenty-one (21) business days. The City Manager shall respond to the grievance in writing within ten (10) calendar days after the conclusion of the City Manager’s investigation into the grievance, including any meeting with the Grievant.

STEP 4 – Arbitration. If the parties are unable to resolve the grievance at step 3, either the Union or the City may require that the grievance ( except those specifically outlined above as not proceeding beyond Step 3) , be referred to an impartial arbitrator. The arbitrator shall be selected by the parties by alternately striking names from the predetermined panel of five (5) local arbitrators . The first party to cross off a name shall be determined by the flip of a coin. The final name left on such list shall be the arbitrator .

Prior to selecting an arbitrator, the parties will determine by mutual agreement whether or not to submit the grievance to an expedited process; which will provide for a bench decision and no post-hearing briefs. The fees and expenses of the arbitrator and of a Court Reporter shall be shared equally by the Union and the City. Each party, however, shall bear the cost of its own presentation, including preparation and post-hearing briefs, if any. Decisions of the arbitrator on matters properly before the arbitrator shall be final and binding on the parties hereto to the extent permitted by the laws governing General Law Cities in the State of California. An arbitrator shall not entertain, hear, decide or make recommendations on any dispute unless such dispute involves a position in a unit represented by the Union and unless such dispute falls within the definition of a grievance as set forth in Section 14.

14.3 Extension of Time Limits

The above specified time limits may be extended by mutual agreement between the parties.

Failure of the employee or the Union to act within the specified time limits, unless extended, shall dismiss and nullify the grievance. Failure by the City to observe such time

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limits, unless extended, shall cause the grievance to be moved to the next level of the grievance procedure.

14.4 Compensation Complaints

All grievances concerning the payment of compensation shall be initially filed in writing with the City Manager. In such cases no adjustment of compensation, if owed, shall be retroactive for more than sixty (60) days from the date upon which the grievance was filed.

Only complaints that allege that the affected employee(s) has not been compensated in accordance with the provisions of this Memorandum of Understanding shall be considered as grievances. Any other matter concerning compensation shall be resolved in the meeting and conferring process and, if not detailed in the Memorandum of Understanding which results from such meeting and conferring process, shall be dee med withdrawn until the meeting and conferring process for a successor MOU is next opened for such discussions.

14.5 Suspension and Discharge Grievances

If the parties resolve a grievance challenging a suspension without pay, a reduction in pay, or discharge, they may agree to reinstatement with or without restoration of pay or benefits lost due to the challenged action. In the event the dispute is referred to arbitration and the arbitrator finds that the City had the right to take the action complained of, the arbitrator may not substitute the arbitrator’s judgment for the judgment of management, and if the arbitrator finds that the City had such right, the arbitrator may not order reinstatement and may not assess any penalty upon the City.

14.6 No Change in Memorandum

A. No changes in this Memorandum of Understanding or interpretations thereof (except interpretations resulting from arbitration proceedings hereunder) will be recognized unless agreed to by the City Manager and the Union.

B. Proposals to add to or change this Memorandum of Understanding or written agreements or addenda supplementary hereto shall not be grievable and no proposal to modify, amend or terminate this Memorandum of Understanding, nor any matter or subject arising out of or in connection with such proposal, may be referred to the Grievance Procedure. An arbitrator shall not have the power to amend or modify the Memorandum of Understanding or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment.

14.7 No Strike

The Union, its members and representatives agree that it and they will not engage in, authorize, sanction, or support any strike, slowdown, stoppage of work, curtailment of production, concerted refusal of overtime work, refusal to operate designated equipment

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(provided such equipment is in an operating condition that conforms with applicable state and federal law ) or refuse to perform customary duties; and neither the Union nor any representatives thereof shall engage in job action for the purpose of effecting changes in the directives or decisions of the City, nor to effect a change of personnel or operations of management or of employees not covered by the Memorandum of Understanding.

Section 15 - Severability of Provisions

If any provision of this Memorandum of Understanding is declared by a court of competent jurisdiction to be illegal or unenforceable, that provision of the Memorandum of Understanding shall be null and void but such nullification shall not affect any other provisions of this Memorandum of Understanding, all of which other provisions shall remain in full force and effect.

Section 16 - Advance Notice

16.1 Ordinances Rules and Regulations

Except in cases of emergency, reasonable advance written notice shall be given to the Union if it is affected by any ordinance, rule, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the City Council, by any board or commission of the City, or by any department, and the Union shall be given the opportunity to meet with such body prior to adoption. In cases of emergency when the City management determines that an ordinance, rule, resolution or regulation must be adopted immediately without prior notice or meeting with the Union, City Management shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of such ordinance, rule, resolution or regulation.

16.2 Contracting Out, Subcontracting, and JPA’s

The City will notify the Union of its intent to contract, subcontract, or place in a joint powers agreement (JPA), work customarily performed by members of this bargaining unit where such contracting or subcontracting would result in loss, or potential loss, through attrition or layoff of such bargaining unit members. The notice shall include an explanation of the City's reason for proposing such contracting/subcontracting. Such notice shall also be given if the City propose s to merge or consolidate a portion of operations affecting Bargaining Unit employees.

The Union shall be given the opportunity to meet with the City to discuss the effect of the proposed action upon its members and, upon request, to propose effective and economical alternative ways in which such services could continue to be provided by the City's own employees. The City shall allow the Union forty-five calendar days, from notice by the City, in which to make such proposals and to conduct necessary meetings prior to formal action by the City Council.

If the City decides to subcontract, undertake a merger, or enter into a joint powers

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agreement (JPA), the City shall endeavor in good faith to negotiate for the assumption of all affected employees into the proposed successor operation. However, if the City determines in good faith that such assumption is not feasible, the City will attempt to mitigate the impact on displaced employees, including the possibility of placement in City suitable vacancies and/or retraining.

16.3 P ersonnel Rules Revisions

The City may modify or supplement its Personnel Rules and Regulations. To the extent such changes in the rules or regulations are within the scope of representation, the City will notify the Union in writing of such changes at least ten (10) business days in advance of their tentative effective date. Such notice shall be sent by certified mail to AFSCME Council 57, ATT: Business Agent, 80 Swan Way , Suite #110, Oakland, CA 94621. The Union will notify the City’s Director of Administrative Services in writing by certified mail of any change in the foregoing mailing address, which shall thereafter apply. Within ten (10) business days after the City delivers such notice to the Union, the Union may request to meet and confer over the changes. Such request shall be in writing and delivered to the Human Resources Manager within the (10) business day request period. Any suc h discussions shall commence within ten (10) business days after the City’s receipt of the notice. The parties shall make reasonable efforts to conclude the meet and confer process within sixty (60) days after they first meet, and the changes shall be held in abeyance during that period. However, the City may thereafter implement the changes as originally written or as modified by the City during the meet and confer process. However, such changes must be reasonable, and the parties shall continue to meet and confer over such changes until agreement or impasse is reached. If a conflict exists between the terms of this MOU and the modified or new rule or regulation, the terms of this MOU will prevail.

Section 17 - Union Membership

The Union will provide representation to all employees in all classes in the units for which this section is applicable regardless of whether the employees are members of the Union.

17.1 Union Membership

Consistent with California Government Code Section 3500 et. seq. and the provisions of the City’s Employer-Employee Organization Relations Ordinance, employees shall have the right to form, join and participate in the activities of a recognized employee organization, free from interference and discrimination, for the purpose of representation on all matters of employer-employee relations.

Employees covered by this Memorandum of Understanding may, at their own choosing, be members of Local 829, American Federation of State, County and Municipal Employees, AFL-CIO.

The Union shall be entitled to have authorized dues of its members deducted from the employees’paychecks in accordance with the procedures set forth herein.

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17.2 Dues Deduction

Payroll deductions for dues shall be made for each individual for whom the City has received a request in writing from the Union for the payroll deduction to be made. The Union shall certify to the City all dues deductions and changes in a timely manner. The City shall process each change in deductions within 15 days of receiving the Union’ s notification. All dues deductions shall be transmitted to the Union monthly. Separation of employment with the City will also sever dues deduction.

All transmittal checks shall be accompanied by documentation which denotes the time period for deduction, the employee's full name and amount of deduction.

The Union shall be the custodian of the authorization for payroll deduction forms.

If the City receives any questions from employees regarding union membership and/or dues, the City shall direct the employees to the Union. The City shall not provide advice to employees about those matters.

17.3 Union Access to New Employee Orientation

The City will provide the Union the opportunity to access the orientation of each new City employee in the bargaining unit for the purposes set forth in Government Code section 3555. The City will notify the Union in advance of the scheduled date, time and location of the orientation as provided in Government Codes section 3556. The Union will be granted thirty (30) minutes at the commencement of the orientation to communicate with the new employee(s) concerning the rights and obligations created by the Memorandum of Understanding, the role of the Union in negotiating and effectuating the terms of the Memorandum of Understanding, and to answer questions. The thirty (30) minute period will not be extended, delayed, or rescheduled to accommodate failure of the Union to timely appear for part or the entirety of the thirty (30) minute period. The City representative conducting the orientation may observe the Union presentation but may not speak during the Union presentation. The City will schedule the new employe e to attend the Union presentation. However, the City will not compel the employee to attend the Union presentation if the employee wishes to refrain from such attendance.

17.4 Membership Listing

Every 120 days, the City shall produce and provide to the Union a listing of the name, job title, department, work location and telephone number, home address and telephone number, personal cellular telephone number, and address on file with the City of all represented employees.

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17.5 Forfeiture of Deduction

If, after all other involuntary and insurance premium deductions are made in any pay period, the balance is not sufficient to pay the deduction of Union dues, no such deduction shall be made for the current pay period.

17.6 Reinstatement

If an employee is separated from the bargaining unit and is subsequently reinstated to city employment within the bargaining unit, upon the return of the employee to the representation unit, the employee will complete the new employee orientation. For the purpose of this section, the term separation includes transfer out of the representation unit, layoff, termination or retirement.

17.7 Hold Harmless

The Union shall indemnify, defend, and save the City, its officers, agents and employees, harmless against any and all claims, demands, suits, orders, or judgments, or other forms of liability that arise out of or by reason of this Section, or action taken or not taken by the City under this Section, and shall promptly reimburse the City for legal fees and costs incurred by the City in responding to or defending against any claims, disputes or challenges.

The City shall promptly give written notice of any claim to the Union, shall provide any assistance that the Union may reasonably request for the defense of the claim, and the Union has the right to control the defense or settlement of the claim.

The duty to indemnify shall not apply to actions related to compliance with this section.

17.8 Third Party Notification

The City acknowledges the Union’s standing as sole representative for employees within the Unit. If the City receives an information request or a Public Records Act request for bargaining unit names and/or contact information, the City will notify the Business Agent of any such requests that are submitted to the City.

Section 18 - Miscellaneous

18.1 Mileage Reimbursement

The City agrees to reimburse employees for mileage driven in their personal vehicles while conducting City business at the rate specified by the IRS. Claims for such reimbursement must be submitted monthly on the proper City form and approved by the City before payment can be made. All employees in the bargaining unit are required to participate in the California Department of Motor Vehicles Pull Notice Program and to execute any authorizations necessary to facilitate that participation.

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18.2 Tuition Reimbursement

Employees covered by this Memorandum of Understanding are eligible for reimbursement of educational expenses in accordance with the City’s Tuition Reimbursement Policy, as modified by this section to provide
up to Three Thousand Dollars ($3,000) per non-
probationary
employee per year of expenses incurred in job related educational programs or job-related certificate programs
which are recommended by the employee’s Department
Head and approved by the City Manager. In order to be eligible for reimbursement the employee must attain a grade of “C” or better or “pass” in a pass/fail system.

18.3 Disciplinary Action

Non-probationary employees may be suspended, reduced in pay, demoted or discharged only for cause.

18.4 Pregnancy Disability Leave

Leave from work due to pregnancy shall be provided as required by applicable state and federal law and in accordance with existing City policy.

18.5 Military Leave

The provisions of the Military and Veterans Code of the State of California and the Uniformed Services Employment and Reemployment Rights Act of 1994, as applicable, shall govern military leave of City employees.

18.6 Leave of Absence Without Pay

Employees shall not be entitled to leaves of absence as a matter of right, but only in accordance with the provisions of law and this Memorandum of Understanding.

The employee’s Department Head may grant a leave of absence from duty without pay for a period not exceeding fifteen (15) days for reasons satisfactory to the Department Head.

A leave of absence without pay not to exceed six (6) months may be granted to a regular employee within the classified service upon the written request of the employee, the recommendation of the Department Head and with the approval of the City Manager. Such leave of absence without pay may be extended upon the recommendation of the Department Head and with the approval of the City Manager for an additional six (6) months, the total leave not to exceed one (1) year.

18.7 Family Care Leave

Family Care Leave shall be administered in accordance with the City's Family Care Leave Policy. The City may modify such policy from time to time to conform to changes in the applicable law. The City shall promptly notify the Union of such change.

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18.8 Commute Incentives

This Program will remain in effect only for the duration of the District/Commission mandate pursuant to SB 1339 (or its successor, if any) unless extended beyond the term of such mandate by the City Council at its discretion.

Section 19 - Integration and Waiver

19.1 Integration

The parties acknowledge that each has had the unlimited right and opportunity to raise, discuss, and meet and confer with the other on all matters within the scope of representation, and that the agreements reached between the parties are fully set forth herein in writing. There are no agreed upon terms, promises, or conditions except as expressly set forth in this written MOU.

19.2. Waiver Of Further Bargaining On Covered Matters

Except as provided in subsection 3 below, the parties agree that neither shall be required to meet and confer over any wage, hour, term or condition of employment contained in this MOU for the life of the agreement, except for purposes of negotiating an entire successor MOU on timely notice given pursuant to Section 20 below, and that any legal duty to do so is hereby waived. However, the City Manager (or the City Manager’s expressly authorized delegate) and the Union Business Representative may enter into a joint written memorandum of interpretation to settle the meaning of any ambiguous provision of this Memorandum of Understanding.

19.3. No Adverse Inference

The Parties agree that proposals made by the City or Union during the negotiations that led to the conclusion of this MOU between them that were withdrawn will not be raised or submitted in any future labor relations forum (e.g. grievances, grievance arbitration, etc.) as evidence that either party sought but did not obtain or did not already posse ss rights, authority, or privileges addressed in those proposals.

Section 20 - Effective Date and Termination

This Memorandum of Understanding shall take effect July 1, 2023 or immediately after ratification by the San Carlos City Council , whichever is later, and subsequent signing by the authorized representatives of the Union and City. However, this shall not thereafter preclude or render optional implementation of an earlier effective date(s) for a specific provision(s) of this

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APPENDIX A

CITY OF SAN CARLOS

AFSCME

PROFESSIONAL AND TECHNICAL EMPLOYEE UNIT

WAGE AND SALARY SCHEDULE

Effective July 3, 2023
Classification Step 1 Step 2 Step 3 Step 4 Step 5*

HOURLY RATE
Accounting Technician I $ 30.4973 $ 32.0232 $ 33.6437 $ 35.3047 $ 37.0680 Accounting Technician II $ 35.0654 $ 36.8159 $ 38.6603 $ 40.5906 $ 42.6225 Administrative Clerk $ 28.2353 $ 29.6427 $ 31.1252 $ 32.6829 $ 34.3159 Assistant Planner $ 48.1788 $ 50.5880 $ 53.1185 $ 55.7705 $ 58.5596 Building Inspector I $ 45.4714 $ 47.7447 $ 50.1294 $ 52.6339 $ 55.2660 Building Inspector II $ 50.4815 $ 53.0068 $ 55.6588 $ 58.4373 $ 61.3585 Civil Engineering Assistant $ 50.8187 $ 53.3595 $ 56.0279 $ 58.8239 $ 61.7711 Civil Engineering Technician $ 42.8829 $ 45.0168 $ 47.2733 $ 49.6328 $ 52.1161 Communications Coordinator $ 35.8131 $ 37.6012 $ 39.4861 $ 41.4603 $ 43.5314 Cook $ 32.8546 $ 34.4985 $ 36.2300 $ 38.0382 $ 39.9340 Facility Attendant $ 19.9221 $ 20.9181 $ 21.9640 $ 23.0623 $ 24.2154 Fire Prevention Officer $ 63.9412 $ 67.1406 $ 70.5094 $ 74.0288 $ 77.7270 Permit Technician $ 36.8329 $ 38.6744 $ 40.6081 $ 42.6386 $ 44.7705 Public Works Inspector $ 50.6460 $ 53.1807 $ 55.8381 $ 58.6261 $ 61.5600 Senior Administrative Clerk $ 33.9868 $ 35.6828 $ 37.4707 $ 39.3431 $ 41.3075 Senior Facility Attendant $ 28.8261 $ 30.2674 $ 31.7808 $ 33.3698 $ 35.0384 Systems Analyst $ 53.0074 $ 55.6597 $ 58.4455 $ 61.3645 $ 64.4328

Classification Step 1 Step 2 Step 3 Step 4 Step 5*

MONTHLY RATE
Associate Engineer (Exempt) $10,676.45 $11,209.51 $11,771.08 $12,358.58 $12,977.23 Associate Planner (Exempt) $9,317.63 $9,782.76 $10,272.10 $10,785.65 $11,324.72 PW Assistant Superintendent (Exempt) $9,503.45 $9,978.64 $10,477.56 $11,001.45 $11,551.51 Recreation Coordinator (Exempt) $6,616.97 $6,947.36 $7,295.62 $7,660.38 $8,043.06 Recreation Supervisor (Exempt) $8,792.54 $9,231.40 $9,693.57 $10,177.73 $10,686.52 Senior Systems Analyst (Exempt) $10,542.51 $11,069.69 $11,623.16 $12,204.36 $12,814.56

*Actual salary may be at or below this maximum at the discretion of the City Manager

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APPENDIX A

CITY OF SAN CARLOS

AFSCME

PROFESSIONAL AND TECHNICAL EMPLOYEE UNIT

WAGE AND SALARY SCHEDULE

Effective July 1, 2024
Classification Step 1 Step 2 Step 3 Step 4 Step 5*

HOURLY RATE
Accounting Technician I $32.3671 $33.9866 $35.7065 $37.4693 $39.3407 Accounting Technician II $36.7819 $38.6182 $40.5528 $42.5776 $44.7089 Administrative Clerk $29.0824 $30.5319 $32.0589 $33.6634 $35.3454 Assistant Planner $49.6242 $52.1056 $54.7120 $57.4437 $60.3163 Building Inspector I $48.6808 $51.1146 $53.6676 $56.3489 $59.1668 Building Inspector II $53.6390 $56.3223 $59.1401 $62.0925 $65.1963 Civil Engineering Assistant $54.3323 $57.0488 $59.9017 $62.8909 $66.0419 Civil Engineering Technician $44.2136 $46.4136 $48.7402 $51.1729 $53.7332 Communications Coordinator $36.8875 $38.7293 $40.6707 $42.7041 $44.8374 Cook $35.3191 $37.0862 $38.9476 $40.8914 $42.9295
Facility Attendant $20.5197 $21.5456 $22.6229 $23.7542 $24.9419 Fire Prevention Officer $65.8595 $69.1548 $72.6247 $76.2496 $80.0588 Permit Technician $38.8483 $40.7907 $42.8302 $44.9718 $47.2204 Public Works Inspector $52.2123 $54.8254 $57.5650 $60.4393 $63.4639 Senior Administrative Clerk $35.0064 $36.7533 $38.5948 $40.5234 $42.5468 Senior Facility Attendant $30.7330 $32.2697 $33.8832 $35.5773 $37.3563 Systems Analyst $55.8315 $58.6251 $61.5593 $64.6339 $67.8657

Classification Step 1 Step 2 Step 3 Step 4 Step 5*

MONTHLY RATE
Associate Engineer (Exempt) $11,041.83 $11,593.13 $12,173.93 $12,781.52 $13,421.35 Associate Planner (Exempt) $9,699.85 $10,184.06 $10,693.47 $11,228.08 $11,789.27 PW Assistant Superintendent (Exempt) $10,240.79 $10,752.84 $11,290.48 $11,855.01 $12,447.74 Recreation Coordinator (Exempt) $7,052.66 $7,404.80 $7,775.99 $8,164.77 $8,572.64 Recreation Supervisor (Exempt) $9,337.96 $9,804.05 $10,294.89 $10,809.09 $11,349.43 Senior Systems Analyst (Exempt) $11,296.39 $11,861.28 $12,454.32 $13,077.08 $13,730.92

*Actual salary may be at or below this maximum at the discretion of the City Manager

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City of San Carlos - AFSCME 829
2023-2026 Memorandum of Understanding

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APPENDIX A

CITY OF SAN CARLOS

AFSCME

PROFESSIONAL AND TECHNICAL EMPLOYEE UNIT

WAGE AND SALARY SCHEDULE

Effective July 14, 2025
Classification Step 1 Step 2 Step 3 Step 4 Step 5*

HOURLY RATE
Accounting Technician I $34.3483 $36.0669 $37.8920 $39.7627 $41.7487 Accounting Technician II $38.5824 $40.5086 $42.5379 $44.6619 $46.8975 Administrative Clerk $29.9549 $31.4479 $33.0207 $34.6733 $36.4057 Assistant Planner $51.1129 $53.6688 $56.3534 $59.1670 $62.1258 Building Inspector I $52.1168 $54.7224 $57.4555 $60.3262 $63.3429 Building Inspector II $56.9940 $59.8451 $62.8392 $65.9762 $69.2742 Civil Engineering Assistant $58.0888 $60.9932 $64.0433 $67.2392 $70.6081 Civil Engineering Technician $45.5855 $47.8538 $50.2526 $52.7608 $55.4006 Communications Coordinator $37.9941 $39.8912 $41.8908 $43.9852 $46.1825 Cook $37.9684 $39.8681 $41.8691 $43.9588 $46.1497
Facility Attendant $21.1353 $22.1920 $23.3016 $24.4668 $25.6901 Fire Prevention Officer $67.8352 $71.2294 $74.8034 $78.5371 $82.4606 Permit Technician $40.9741 $43.0228 $45.1739 $47.4327 $49.8043 Public Works Inspector $53.8271 $56.5210 $59.3453 $62.3085 $65.4267 Senior Administrative Clerk $36.0566 $37.8559 $39.7527 $41.7391 $43.8232 Senior Facility Attendant $32.7630 $34.4011 $36.1212 $37.9272 $39.8236 Systems Analyst $58.8061 $61.7486 $64.8391 $68.0775 $71.4814

Classification Step 1 Step 2 Step 3 Step 4 Step 5*

MONTHLY RATE
Associate Engineer (Exempt) $11,419.72 $11,989.88 $12,590.55 $13,218.95 $13,880.67 Associate Planner (Exempt) $10,097.75 $10,601.82 $11,132.13 $11,688.67 $12,272.88 PW Assistant Superintendent (Exempt) $11,035.33 $11,587.11 $12,166.46 $12,774.80 $13,413.51 Recreation Coordinator (Exempt) $7,517.03 $7,892.36 $8,287.99 $8,702.37 $9,137.10 Recreation Supervisor (Exempt) $9,917.23 $10,412.23 $10,933.51 $11,479.61 $12,053.47 Senior Systems Analyst (Exempt) $12,103.02 $12,708.24 $13,343.63 $14,010.86 $14,711.39

*Actual salary may be at or below this maximum at the discretion of the City Manager

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CITY COUNCIL

STAFF REPORT
MEETING DATE: September 11, 2023
ITEM TITLE: Consideration of Adopting a Resolution Adopting the Amended Salary and Benefit Resolution for the Management Group for the Period July 1, 2023 through June 30, 2026.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution adopting the amended Management Group Salary and Benefit Resolution for the period of July 1, 2023 through June 30, 2026.

FISCAL IMPLICATIONS:

There is no fiscal impact and no additional appropriation is needed at this time.

The additional cost for the provisions below is approximately $561,800 for Fiscal Year (“FY”) 2023-24, $469,900 for FY 2024-25, and $503,900 for FY 2025-26. As discussed with the City Council during the budget study sessions, certain assumptions were presumed and included as part of the development of the Adopted FY 2023-25 Biennial Budget; therefore, there is sufficient funding for FYs 2023-25.

BACKGROUND:

On June 28, 2021, the Council approved a two-year Management Group Salary and Benefit Resolution for the period from July 1, 2021 through June 30, 2023.

ANALYSIS:

The following is a summary of the key modifications to the proposed Salary and Benefit Resolution:
•Term: Three year – July 1, 2023 through June 30, 2026;

•Cost of Living Adjustments: Effective July 3, 2023, increase base wage rates for all positions by five percent (5%), effective July 1, 2024 increase base wages for all positions by three percent (3%), and effective July 14, 2025 increase base wages for all positions by three percent (3%);
•Equity Adjustments: Effective each year, beginning on the first pay period of July 2023 to July 2025, some positions are eligible for equity adjustments based on market comparables in the following agencies:

Burlingame, Cupertino, Foster City, Fremont, Hayward, Menlo Park, Milpitas, Mountain

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View, Palo Alto, Redwood City, San Mateo, Santa Clara, Sunnyvale, and Union City.

All adjustments have been incorporated into the wage schedule as shown in Appendix A in the Salary and Benefits Resolution;
•Pay for Temporary Appointment to Higher Classification: Changed the criteria from “more than 5 days” to “5 days” which allows employees to receive acting pay while their supervisor is gone for one week;
•Holidays: The City will now designate June 19 (Juneteenth) as an observed and paid holiday;
•Bereavement Leave: Update language to comply with new state law by removing the word “consecutive” and adding language that all paid and unpaid bereavement leave must be taken within three calendar months of the date of death; •Vision Plan: Remove the two percent (2%) administrative fee the City currently charges for enrollment into a two-party or family vision plan;
•Tuition Reimbursement: Increase the reimbursement amount to $3,000 annually for expenses incurred in job related educational programs or job-related certificate programs; and
•Severance Pay: Updated the language to remove option for payment over six-month period (taxation law issue) and added the following language: “The severance benefit shall be payable in full by the City to the Management Group employee after seven (7) calendar days of employee signing a full general release of all claims to include a mutual non- disparagement clause.”
ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the amended Salary and Benefit Resolution for the Management Group for the period July 1, 2023 through June 30, 2026; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - Management Salary & Benefit Reso 2023-2026

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

ADOPTING THE AMENDED SALARY AND BENEFIT RESOLUTION FOR THE MANAGEMENT GROUP FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2026.

WHEREAS, on June 28, 2021 the City Council adopted Resolution No. 2021-061 modifying the Salary and Benefit Resolution for the Management Group for the period July 1, 2021 through June 30, 2023; and
WHEREAS, is it now necessary to adopt a new Salary and Benefit Resolution for the period of July 1, 2023 through June 30, 2026.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Carlos hereby adopts the amended Salary and Benefit Resolution for the Management Group (attached as Exhibit A).
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 11th day of September 2023, by the following vote:

AYES, COUNCILMEMBERS:_____________________________________________ NOES, COUNCILMEMBERS:_____________________________________________ ABSENT, COUNCILMEMBERS:_____________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A: Salary and Benefit Resolution for the Management Group

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CITY OF SAN CARLOS

MANAGEMENT GROUP
Salary and Benefit
Resolution
July 1, 2023
To
June 30, 2026

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MANAGEMENT GROUP
Table of Contents

1. SALARIES ..............................................................................................................................4

1.1 Salary Rates...............................................................................................................................4

1.2 Equity Adjustments...................................................................................................................5

2. OVERTIME.............................................................................................................................5

3. PAY FOR TEMPORARY APPOINTMENT TO A HIGHER CLASSIFICATION..............5

4. ADMINISTRATIVE LEAVE .................................................................................................5

5. HOLIDAYS.............................................................................................................................5

6. VACATION ............................................................................................................................6

6.1 Entitlement................................................................................................................................6

6.2 Vacation Accrual.......................................................................................................................6

6.3 Vacation Cash Out....................................................................................................................7

6.4 Holiday Closures.......................................................................................................................7

7. SICK LEAVE ..........................................................................................................................7

7.1 Accrual......................................................................................................................................7

7.2 Sick Leave Reinstatement.........................................................................................................7

7.3 Family Sick Leave.....................................................................................................................7

7.4 Bereavement Leave...................................................................................................................7

7.5 Family Care Leave and Pregnancy Disability Leave.................................................................8

8. JURY DUTY ...........................................................................................................................8

9. BENEFITS...............................................................................................................................8

9.1 Health Plan Contributions for Active Employees.....................................................................8

9.2 Section 125 Flex Plan Contribution..........................................................................................8

9.3 Alternate Medical Benefit Program...........................................................................................9

9.4 Retiree Health Plan Contributions...........................................................................................10

9.5 Longevity Recognition Program.............................................................................................10

9.6 Dental Plan..............................................................................................................................10

9.7 Vision Care Plan......................................................................................................................10

9.8 Long-Term Disability..............................................................................................................11

9.9 Life Insurance..........................................................................................................................11

9.10 California State Disability Insurance & Paid Family Leave....................................................11

9.11 State Paid Leave Integration:..................................................................................................11

9.12 Commuter Benefits.................................................................................................................11

10. RETIREMENT ......................................................................................................................11

10.1 Retirement Notice...................................................................................................................12

10.2 Deferred Compensation 457 Plan Match.................................................................................12

11. MILEAGE REIMBURSEMENT ..........................................................................................12

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12. FLEXIBLE BENEFIT PLAN................................................................................................12

13. TUITION REIMBURSEMENT............................................................................................13

14. MONTHLY AUTO ALLOWANCE.....................................................................................13

15. SEVERANCE PAY FOR MANAGEMENT GROUP..........................................................13

16. VOLUNTARY REDUCTION IN TIME/SALARY (RIT) PROGRAM ..............................13 MONTHLY SALARY SCHEDULE (APPENDIX A)……………….......................................14

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CITY OF SAN CARLOS

MANAGEMENT GROUP
Salary and Benefit Resolution
This RESOLUTION modifies the existing terms of employment for the Management Group.

The Management Group is comprised of at-will employees and is not formally recognized by the City as an organized employee unit. The members of the Management Group have been consulted in the development of these terms, and it is the Council’s desire to adopt the revised terms as documented below.

1. SALARIES
Salaries are paid bi-weekly. The salary rates for all classifications listed on Appendix A, attached hereto.

1.1 Salary Rates
The salary range for each classification shall be as specified in the attached Appendix “A” and shall take effect the first pay period in July 2023, July 2024 and July 2025.

The salary rates for all classifications are set forth in Appendix “A”. For the pay period beginning July 3, 2023, the applicable base wage rate increases for a cost-of-living adjustment are:

Classification Percentage Increase
All Classifications 5%
For the pay period beginning July1, 2024, the applicable base wage rate increases for a cost-of-living adjustment are:

Classification Percentage Increase
All Classifications 3%
For the pay period beginning July 14, 2025, the applicable base wage rate increases for a cost-of-living adjustment are:

Classification Percentage Increase
All Classifications 3%
All increases or decreases in compensation shall take effect at the start of the first pay period following the date of the increase or decrease.

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1.2 Equity Adjustments
Effective each year beginning on the first pay period of July 2023 – July 2025, some positions are eligible for equity adjustments based on a market comparables in the following agencies:

Burlingame, Cupertino, Foster City, Fremont, Hayward, Menlo Park, Milpitas, Mountain View, Palo Alto, Redwood City, San Mateo, Santa Clara, Sunnyvale, and Union City.

All adjustments have been incorporated into the monthly Salary Schedule as shown in Appendix A.

2. OVERTIME
Members of the Management Group are exempt from overtime compensation. When a member of the Management Group has an absence from work for less than a full day, this time shall not be charged to their leave balances.

3. PAY FOR TEMPORARY APPOINTMENT TO A HIGHER CLASSIFICATION When an employee has been appointed temporarily to perform the work of a position having a different classification either within or outside of the employee group and being paid at a higher rate, and if he/she has worked in such classification for five (5), but less than thirty (30) consecutive workdays, he/she shall be entitled to payment at five percent (5%) above his/her regular pay. For temporary assignments greater than 30 days, the City Manager can approve the salary rate within existing range of the new classification.

Payment shall commence with the first (1st) workday of the temporary assignment and shall continue, including holidays, during the period of temporary assignment. Such appointment shall be in writing by the Department Head and approved by the City Manager or his designated representative.

4. ADMINISTRATIVE LEAVE
Members of the Management Group receive eighty (80) hours of Administrative Leave each January 1. Administrative Leave shall be prorated for new hires based on the date of hire during a calendar year. Administrative leave must be used within the calendar year or else it is lost.

5. HOLIDAYS
Regular full-time employees in established positions shall be entitled to take all authorized holidays at full pay, not to exceed eight (8) hours for any one (1) day, provided they are in a pay status on both their regularly scheduled workdays immediately preceding and following the holiday.
(1) January 1 (New Year's Day)
(2) Third Monday in January (Martin Luther King, Jr. Day) (3) Third Monday in February (President's Day)
(4) Last Monday in May (Memorial Day)
(5) June 19 (Juneteenth)
(6) July 4 (Independence Day)

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(7) First Monday in September (Labor Day)
(8) November 11 (Veterans Day)
(9) Fourth Thursday in November (Thanksgiving Day)
(10) Fourth Friday in November (Day after Thanksgiving) (11) December 25 (Christmas Day)

6. VACATION

6.1 Entitlement
All employees who hold full-time positions are entitled to twelve (12) working days' vacation pay upon successful completion of their first year of continuous service. In addition, the vacation accrual rate for employees in the Management Group will be based on prior service in CalPERS agencies. Employees who have related public service experience with non-CalPERS member agencies (e.g., STRS, or equivalent) which have reciprocal agreements with CalPERS may be considered for this benefit. Employees may take accrued vacation after the completion of six (6) months' service. After the first year, employees shall accrue vacation according to the following schedule:

Length of Service Vacation Accrual Rate
1st year to 4 years 12 days (96 working hours/3.694 hours bi-weekly) After 4 years to 11 years 16 days (128 working hours/4.924 hours bi-weekly) After 11 years 17 days (136 working hours/5.231 hours bi-weekly) After 12 years 18 days (144 working hours/5.54 hours bi-weekly) After 13 years 19 days (152 working hours/5.847 hours bi-weekly) After 14 years to 16 years 21 days (168 working hours/6.462 hours bi-weekly) After 16 years 22 days (176 working hours/6.77 hours bi-weekly) After 17 years 23 days (184 working hours/7.077 hours/bi-weekly) After 18 years 24 days (192 working hours/7.385 hours/bi-weekly) After 19 years 25 days (200 working hours/7.70 hours/bi-weekly) In addition to the above, Management Group employees shall be granted twenty-four (24) hours of float time each year at a time agreeable to the Department Head or City Manager.

Such time shall be arranged at least two (2) weeks in advance of the day(s) desired by mutual agreement with the Department Head or City Manager. This amount will be pro- rated for new employees hired during the year. Float time must be used within the calendar year or else it is lost.

6.2 Vacation Accrual
No Management Group employee shall be allowed to have an accumulation of more than two (2) years’ vacation accrual to his or her credit at any one time. The City Manager may grant an exception to this policy. Effective July 1, 2021, the applicable accumulation ceiling will be lifted, and any vacation accrued in excess of the maximum allowed on or after that date shall be liquidated by monetary payment every year through payroll during the month of October. With the City Manager approval, employees may request the liquidation of their vacation accrued in excess of two (2) years prior to October.

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6.3 Vacation Cash Out
An employee may make an irrevocable election to sell back to the City forty (40) hours in a calendar year of accumulated vacation at the employee’s base rate of pay.

Sell back requests must be received by Payroll no later than December 31 for the following calendar year’s elections. Elected hours not requested for distribution (sell back) by December 1 will be automatically distributed in the next pay period (sell back cannot be more than the hours available at time of distribution).

6.4 Holiday Closures
The City Manager may designate up to five (5) specific work days in each calendar year between Christmas Eve and New Year’s Day during which employees may be required to take time off, charged to leave without pay, the employee’s accumulated vacation, administrative leave, or a combination thereof, as determined by the affected employee.

The days must be consecutive for the employee but may differ between employees.

Employees who do not have sufficient accumulated time off in their account to cover the required time off may request, and will be granted, sufficient advance on their vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by the employee. Time off work under this provision shall not be deemed a layoff.

7. SICK LEAVE

7.1 Accrual
Employees shall accrue sick leave credit at the rate of eight (8) hours per month. Unused sick leave may be accrued without limit. The City’s PERS contract provides the option of allowing employees service credit for accrued sick leave for employees who retire with a PERS retirement benefit.

7.2 Sick Leave Reinstatement
In accordance with State law, if an employee is rehired within one year from the date of separation, the previously accrued and unused sick hours shall be reinstated. The City will not reinstate any accrued paid time off that was paid out at the time of termination, resignation, or retirement.

7.3 Family Sick Leave
The care of the employee’s ill or injured immediate family member as defined in Bereavement Leave) to a maximum of half of the employee’s annual sick leave accrual (48 hours a year). Such leave is charged against an employee’s accrued sick credit.

7.4 Bereavement Leave
In case of death within the immediate family of an employee, such employee shall be entitled to remain absent from duty with pay in order to attend the funeral or memorial service for a maximum 3 workdays.

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If the funeral or memorial services are outside the state of California, the employee will be allowed up to two (2) additional workdays of leave with pay.

Employees who qualify for three (3) paid workdays above may request up to an additional two (2) workdays for bereavement purposes. The additional time may be paid utilizing available vacation, sick or compensatory time or taken unpaid at the employee’s discretion.

All paid and unpaid bereavement leave must be taken within three calendar months of the date of death.

For the purpose of this Section, immediate family is defined as husband, wife, domestic partner as defined by the State of California, father, mother, grandfather, grandmother, sister, brother, son, daughter, grandchild, mother-in-law, father-in-law, stepchild, stepmother, stepfather, or such person who has served in the place of the employee’s parent. Such leave shall not be charged against the employee’s sick leave accrual.

7.5 Family Care Leave and Pregnancy Disability Leave
Family Care Leave and Pregnancy Disability Leave are granted to an employee in accordance with the Federal and State law as adopted in the City’s Family Care Leave Policy and Pregnancy Disability Leave Policy.

8. JURY DUTY
A Management Group employee summoned to jury duty may be absent from duty with full pay; provided, however, the employee must remit to the City, through the City Manager, within fifteen (15) days after receipt, all fees received except those specifically allowed for mileage and expenses.

9. BENEFITS

9.1 Health Plan Contributions for Active Employees
The City shall contribute the CalPERS (PEMHCA) minimum amount required by law for each active employee enrolled in a CalPERS health plan. Any remaining premium shall be paid by the employee either through the section 125 Plan (described below) or payroll deduction or a combination thereof.

9.2 Section 125 Flex Plan Contribution
A. The City will continue to provide a Flexible Benefits plan, subject to the requirements and availability of Internal Revenue Code Section 125, allowing employees to use pre-tax compensation for PEMHCA medical premiums, eligible dependent care expenses, eligible uninsured medical expenses, or a combination thereof.

B. Effective January 1, 2023, the City contributes each month up to the amounts listed below, based on the employee’s level of medical plan enrollment, to each active employee’s Section 125 Plan account.

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*An employee may elect to opt out of medical insurance coverage only in accordance with sub- Section 9.3 below. The amount shown in this table is the amount resulting from such election.

C. Any amount remaining after the employee has designated the portions of his or her Section 125 plan contribution amount for the purposes described in paragraph A above will be deemed forfeited.

D. Procedures for the administration of the Section 125 Plan shall be determined by the City. The City shall assume the administrative cost for the Plan.

E. Effective January 1, 2024, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2023 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

F. Effective January 1, 2025, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2024 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

G. Effective January 1, 2026, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2025, combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

9.3 Alternate Medical Benefit Program
Eligible employees who are covered by health insurance through their spouse or other source with benefits comparable to those provided through City sponsored plans may waive coverage under the City sponsored plans. The employee shall sign a waiver form provided by the Human Resources Department. The City will pay such employee(s) an amount equal to the monthly employee only contribution to the Section 125 plan pursuant to section 9.2 above each month thereafter that the employee continues to receive health insurance through their spouse or other source.

The employee must understand that re-enrollment in the City sponsored CalPERS Plan is subject to the limitations/exclusions/time period instituted by CalPERS. Employees are Level of Medical Plan Enrollment Amount of Monthly City Contribution No Plan (opt out) * $1,011.51
Employee Only $1,011.51
Employee + One $1,721.99
Employee + Two or more $2,080.64

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eligible to re-enroll during the CalPERS open enrollment period. Upon the effective date of the re-enrollment, payments pursuant to this subsection 9.3 cease.

9.4 Retiree Health Plan Contributions
The City shall contribute the minimum amount required by law toward the monthly premium for hospital and medical care under the CalPERS (PEMHCA) Health Plan for individuals who retire from the City through CalPERS.

If a full-time Management Employee has worked for the City of San Carlos a minimum of ten (10) years of total continuous city service and retires with a PERS retirement, the City will allow the retiree only to stay on the City’s dental and vision insurance plans provided the employee pays the full premium(s) plus a two percent (2%) administration fee. This option must be exercised at the time of retirement.

9.5 Longevity Recognition Program
A. Employees hired by the City before January 1, 2009, who retire from the City through CalPERS who have completed at least ten (10) years of total continuous City service immediately preceding such retirement shall be eligible for a monthly payment in the amount equal to the monthly employee only contribution to the Section 125 plan pursuant to section 9.2 following retirement and continuing until the employee’s death. This amount shall increase by the same percentages and at the same times as the City’s Section 125 Plan contribution increases for active employees selecting employee-only medical coverage.

B. Employees hired on or after January 1, 2009, will not be eligible for longevity pay.

9.6 Dental Plan
The City shall provide a Dental Plan for eligible employees and their dependents and shall pay a maximum monthly amount of up to one hundred seventy-five Dollars ($175.00).

Effective July 1, 2015, the annual maximum reimbursement for dental expenses per fiscal year per covered participant will increase from $1,500 to $2,000. During the life of this agreement the City may select and implement a substitute plan(s). Any cost for the current or a substitute plan not paid by the City will be paid by the employee through payroll deduction.

9.7 Vision Care Plan
The City agrees to contribute up to thirty dollars ($30.00) per month per employee in the Management Unit towards the cost of a vision plan covering the employee only. Such plan shall include annual frames, lenses, and examinations.

Effective January 1, 2016, employees will be permitted to enroll their dependents in the Vision Care Plan. The entire premium for the dependent coverage will be paid be the employee by payroll deduction at their own expense at the applicable two-party or family rate then in effect minus the City’s contribution for the employee’s coverage.

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9.8 Long-Term Disability
The City shall continue to provide long-term disability insurance for employees in the Management Unit; the waiting period for long-term disability benefits shall be forty-five (45) days. The Long-Term Disability premium is taxed to allow the long-term disability payment to be issued on a tax-free basis.

9.9 Life Insurance
The City shall provide for each eligible employee life insurance in the amount of Two Hundred Thousand Dollars ($200,000). The premium for the amount over $50,000 is subject to Federal and State taxes.

9.10 California State Disability Insurance & Paid Family Leave The Management Group participates in the California State Disability Insurance and Paid Family Leave programs. All costs for this program are paid by the employee. The City deducts the premiums from the paychecks of employees and forward payment to the State.

9.11 State Paid Leave Integration:

A. State Disability Insurance (SDI) and Paid Family Leave (PFL) integration will be made only when the employee is off work and meets the State’s eligibility requirements.

B. Integration will be made with accrued and unused sick leave first, and then, after exhaustion of all accrued sick leave or eligible family sick, at the employee’s request, accrued and unused vacation leave, float, and/or accumulated Compensatory Time Off (CTO) will be used.

C. The City will project the amount of SDI/PFL benefit to be received by an eligible employee for the purpose of integration, and the employee will provide the City with evidence of the SDI/PFL benefit received.

D. An employee who does not wish to file for SDI/PFL, however, shall notify payroll and no such integration shall be made.

9.12 Commuter Benefits
Employees can elect to designate a portion of salary before taxes (pretax income) to pay for qualified transit, vanpooling, or parking expenses (up to the IRS allowable monthly maximum). The City will also contribute up to $225 per year per employee toward a commuter benefit program which would also be subject to the IRS allowable maximums.

Such program for qualifying commuter expenses will be established by the City after the adoption of this Salary and Benefit Resolution.

10. RETIREMENT
For employees hired before March 16, 2009, the City provides the PERS 2.7 % @ 55 retirement benefit formula with the PERS single highest year final compensation average, conversation of unused sick leave to PERS service credit and Industrial Disability.

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For employees hired on March 16, 2009, through April 22, 2012, the City provides the PERS

2.5% @ 55 retirement benefit formula with the PERS single highest year final compensation average, conversation of unused sick leave to PERS service credit and Industrial Disability.

For employees hired on April 23, 2012, through December 31, 2012, or “classic” CalPERS members, as defined by CalPERS, the City provides the PERS 2.0% @ 55 retirement benefit formula with the average of the three highest year’s compensation as the basis for calculating the pension, conversion of unused sick leave to PERS credit and Industrial Disability.

For employees hired on or after January 1, 2013, and are “new” CalPERS members, as defined by CalPERS, the City will provide the PERS 2.0% @ 62 retirement benefit formula with the average of the three highest years compensation as the basis for calculating the pension, conversion of unused sick leave to PERS credit and Industrial Disability.

The City will continue to offer the voluntary salary reduction option offered by Section 414(h)(2) of the Internal Revenue Service Code and the Public Employees Retirement System.

10.1 Retirement Notice
Employees shall submit a notice of retirement in writing as far in advance as possible.

Employees should submit a written letter to the City Manager at least 180 days before their anticipated last day of work. If less than 180 days’ notice is given and no extenuating circumstances prevented the employees from give the required notice, employees will not be allowed to run out their accrued vacation time prior to retirement.

10.2 Deferred Compensation 457 Plan Match
The City shall provide a contribution to an employee's deferred compensation account in an amount equal to the employee's contribution at a ratio of 1:1, to a maximum of four hundred dollars ($400.00) per month. This shall not imply any City endorsement or responsibility for the performance of any deferred compensation account or instrument selected by the employee.

11. MILEAGE REIMBURSEMENT
For employees who do not receive an auto allowance, the City agrees to reimburse employees for mileage driven in their personal vehicles while conducting City business at the rate specified by the Internal Revenue Service. Claims for such reimbursement must be submitted monthly on the proper City form and approved by the City before payment can be made.

12. FLEXIBLE BENEFIT PLAN
The City will continue to implement the provisions of the Internal Revenue Code Section 125 Plan, allowing employees to use pre-tax compensation for dependent care expenses, medical premiums and excess medical expenses subject to the provisions of the Internal Revenue Code. Participation is through the Direct Reimbursement Plan.

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13. TUITION REIMBURSEMENT
In accordance with the City’s policy, Management employees are eligible to participate in the City’s tuition reimbursement program which provides for reimbursement of up to Three Thousand Dollars ($3,000) per employee per year of expenses incurred in job-related educational programs which are approved by the City Manager.

14. MONTHLY AUTO ALLOWANCE
The following Management Group employees shall receive monthly auto allowances of Two Hundred Fifty Dollars ($250):

Administrative Services Director
Assistant City Manager
Building Official
City Engineer
Community Development Director
Director of Community Relations/City Clerk
Economic Development & Housing Manager
Parks and Recreation Director
Public Works Director

15. SEVERANCE PAY FOR MANAGEMENT GROUP
Under City Ordinance 1460 all employees of the Management Group are at-will employees. Where termination of a Management Group employee is not for cause, the Management Group employee shall receive a severance benefit, subject to the conditions below:

1. The severance benefit shall consist of six (6) months’ salary of the Management Group employee’s base salary.

2. The severance benefit shall be payable in full by the City to the Management Group employee after seven (7) calendar days of employee signing a full general release of all claims to include a mutual non-disparagement clause.

3. The severance benefit shall be applicable to the Management Unit employee only after one (1) year of employment with the City.

16. VOLUNTARY REDUCTION IN TIME/SALARY (RIT) PROGRAM
An employee may, upon the approval of the City Manager, reduce his or her work hours on a temporary basis with a corresponding reduction in salary while maintaining benefits at the full-time rate. Any impact to PERS service credit is determined by PERS. An employee may reinstate to full-time status if approved by the City Manager.

It is mutually recommended that the provisions shown above be made applicable on the dates indicated for those employees represented by the Management Group.

CITY OF SAN CARLOS

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Dated:

By:

Jeff Maltbie, City Manager

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CITY OF SAN CARLOS

MANAGEMENT GROUP
Monthly Salary Schedule

APPENDIX A
Effective July 3, 2023
Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Administrative Services Director $17,576 $18,456 $19,380 $20,348 $21,368 Assistant City Manager $18,740 $19,678 $20,663 $21,694 $22,780 Assistant Community Development Director $14,970 $15,718 $16,504 $17,329 $18,196 Assistant Building Official $11,709 $12,294 $12,909 $13,554 $14,232 Building Official $13,207 $13,868 $14,560 $15,290 $16,054 Community Relations Director/City Clerk $12,028 $12,629 $13,263 $13,924 $14,620 City Engineer $15,216 $15,977 $16,777 $17,615 $18,496
Communications Manager $11,036 $11,588 $12,167 $12,775 $13,414 Community Development Director $17,772 $18,661 $19,595 $20,572 $21,602 Economic Development & Housing Manager $12,777 $13,415 $14,084 $14,790 $15,528 Economic Development Coordinator $10,036 $10,537 $11,063 $11,616 $12,198 Financial Services Manager $13,464 $14,138 $14,844 $15,586 $16,367 Human Resources Manager $13,369 $14,037 $14,738 $15,474 $16,249 Information Technology Manager $13,087 $13,741 $14,426 $15,149 $15,906 Parks & Recreation Director $17,114 $17,970 $18,868 $19,810 $20,801 Planning Manager $13,477 $14,143 $14,842 $15,575 $16,346 Principal Engineer $13,005 $13,654 $14,337 $15,055 $15,808 Principal Planner $12,215 $12,825 $13,468 $14,142 $14,850 Public Works Director $18,435 $19,359 $20,326 $21,342 $22,410 Public Works Superintendent $12,809 $13,449 $14,121 $14,827 $15,568 Recreation Manager $11,716 $12,302 $12,917 $13,563 $14,241 Senior Accountant $10,161 $10,670 $11,203 $11,761 $12,350 Senior Building Inspector $9,929 $10,426 $10,947 $11,494 $12,069 Senior Engineer $13,005 $13,654 $14,337 $15,055 $15,808 Senior Management Analyst $10,184 $10,693 $11,227 $11,790 $12,377 Senior Planner $10,394 $10,912 $11,459 $12,032 $12,633
Senior Sustainability Analyst $9,972 $10,471 $10,994 $11,545 $12,120 Senior Traffic Engineer $13,005 $13,654 $14,337 $15,055 $15,808 *Actual salary may be at or below this maximum at the discretion of the City Manager

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CITY OF SAN CARLOS

MANAGEMENT GROUP
Monthly Salary Schedule

APPENDIX A
Effective July 1, 2024
Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Administrative Services Director $19,282 $20,248 $21,262 $22,324 $23,442 Assistant Building Official $12,060 $12,663 $13,296 $13,961 $14,659 Assistant City Manager $20,582 $21,612 $22,694 $23,826 $25,019 Assistant Community Development Director $16,108 $16,913 $17,759 $18,647 $19,580 Building Official $14,374 $15,093 $15,846 $16,640 $17,472 City Engineer $16,125 $16,931 $17,779 $18,667 $19,601
Communications Manager $11,812 $12,403 $13,023 $13,673 $14,358 Community Development Director $19,171 $20,130 $21,137 $22,192 $23,303 Director of Community Relations/City Clerk $13,169 $13,827 $14,521 $15,244 $16,007 Economic Development & Housing Manager $13,697 $14,382 $15,099 $15,856 $16,646 Economic Development Coordinator $10,411 $10,930 $11,476 $12,050 $12,654 Financial Services Manager $14,307 $15,023 $15,774 $16,562 $17,392 Human Resources Manager $14,264 $14,977 $15,724 $16,510 $17,337 Information Technology Manager $13,958 $14,655 $15,386 $16,157 $16,964 Parks & Recreation Director $18,165 $19,073 $20,027 $21,026 $22,079 Planning Manager $14,254 $14,958 $15,698 $16,473 $17,289 Principal Engineer $13,441 $14,112 $14,818 $15,560 $16,339 Principal Planner $12,730 $13,365 $14,035 $14,738 $15,476 Public Works Director $19,500 $20,477 $21,501 $22,575 $23,704 Public Works Superintendent $13,466 $14,139 $14,845 $15,588 $16,367 Recreation Manager $12,122 $12,728 $13,364 $14,033 $14,735 Senior Accountant $10,619 $11,150 $11,708 $12,291 $12,907 Senior Building Inspector $10,542 $11,069 $11,622 $12,204 $12,814 Senior Engineer $13,441 $14,112 $14,818 $15,560 $16,339 Senior Management Analyst $11,063 $11,616 $12,197 $12,808 $13,446 Senior Planner $10,975 $11,522 $12,100 $12,704 $13,339
Senior Sustainability Analyst $10,608 $11,138 $11,695 $12,281 $12,893 Senior Traffic Engineer $13,441 $14,112 $14,818 $15,560 $16,339 *Actual salary may be at or below this maximum at the discretion of the City Manager

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CITY OF SAN CARLOS

MANAGEMENT GROUP
Monthly Salary Schedule

APPENDIX A
Effective July 14, 2025
Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Administrative Services Director $21,154 $22,214 $23,326 $24,491 $25,718 Assistant Building Official $12,422 $13,043 $13,695 $14,380 $15,098 Assistant City Manager $22,605 $23,737 $24,924 $26,168 $27,478 Assistant Community Development Director $17,333 $18,199 $19,110 $20,065 $21,068 Building Official $15,644 $16,426 $17,246 $18,110 $19,015 City Engineer $17,087 $17,942 $18,840 $19,781 $20,771
Communications Manager $12,643 $13,275 $13,939 $14,635 $15,368 Community Development Director $20,680 $21,715 $22,801 $23,938 $25,137 Director of Community Relations/City Clerk $14,418 $15,139 $15,898 $16,690 $17,525 Economic Development & Housing Manager $14,683 $15,417 $16,186 $16,998 $17,845 Economic Development Coordinator $10,800 $11,339 $11,905 $12,500 $13,126 Financial Services Manager $15,203 $15,964 $16,762 $17,599 $18,481 Human Resources Manager $15,219 $15,979 $16,777 $17,615 $18,498 Information Technology Manager $14,886 $15,630 $16,410 $17,232 $18,093 Parks & Recreation Director $19,281 $20,245 $21,257 $22,318 $23,435 Planning Manager $15,076 $15,821 $16,603 $17,423 $18,286 Principal Engineer $13,892 $14,586 $15,316 $16,082 $16,887 Principal Planner $13,266 $13,929 $14,627 $15,359 $16,128 Public Works Director $20,627 $21,660 $22,743 $23,880 $25,074 Public Works Superintendent $14,157 $14,864 $15,607 $16,387 $17,206 Recreation Manager $12,543 $13,169 $13,828 $14,520 $15,246 Senior Accountant $11,097 $11,653 $12,236 $12,845 $13,489 Senior Building Inspector $11,192 $11,752 $12,339 $12,956 $13,604 Senior Engineer $13,892 $14,586 $15,316 $16,082 $16,887 Senior Management Analyst $12,018 $12,619 $13,250 $13,914 $14,607 Senior Planner $11,588 $12,166 $12,776 $13,414 $14,085
Senior Sustainability Analyst $11,285 $11,849 $12,441 $13,065 $13,716 Senior Traffic Engineer $13,892 $14,586 $15,316 $16,082 $16,887 *Actual salary may be at or below this maximum at the discretion of the City Manager

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CITY COUNCIL

STAFF REPORT
MEETING DATE: September 11, 2023
ITEM TITLE: Consideration of Adopting a Resolution Adopting the Amended Salary and Benefit Resolution for the Confidential Group for the Period July 1, 2023 through June 30, 2026.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution adopting the amended Confidential Group Salary and Benefit Resolution for the period of July 1, 2023 through June 30, 2026.

FISCAL IMPLICATIONS:

There is no fiscal impact and no additional appropriation is needed at this time.

The additional cost for the provisions below is approximately $152,800 for Fiscal Year (“FY”) 2023-24, $131,400 for FY 2024-25, and $143,700 for FY 2025-26. As discussed with the City Council during the budget study sessions, certain assumptions were presumed and included as part of the development of the Adopted FY 2023-25 Biennial Budget; therefore, there is sufficient funding for FYs 2023-25.

BACKGROUND:

On June 28, 2021, the Council approved a two-year Confidential Group Salary and Benefit Resolution for the period from July 1, 2021 through June 30, 2023.

ANALYSIS:

The following is a summary of the key modifications to the proposed Salary and Benefit Resolution:
•Term: Three year – July 1, 2023 through June 30, 2026;

•Cost of Living Adjustments: Effective July 3, 2023, increase base wage rates for all positions by five percent (5%), effective July 1, 2024 increase base wages for all positions by three percent (3%), and effective July 14, 2025 increase base wages for all positions by three percent (3%);
•Equity Adjustments: Effective each year, beginning on the first pay period of July 2023 to July 2025, some positions are eligible for equity adjustments based on market comparables in the following agencies:

Burlingame, Cupertino, Foster City, Fremont, Hayward, Menlo Park, Milpitas, Mountain

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View, Palo Alto, Redwood City, San Mateo, Santa Clara, Sunnyvale, and Union City.

All adjustments have been incorporated into the wage schedule as shown in Appendix A in the Salary and Benefits Resolution;
•Overtime Definition: Any authorized time worked in excess of twelve (12) hours shall be compensable at the rate of two (2) times the employee’s regular straight-time rate of pay; •Holidays: The City will now designate June 19 (Juneteenth) as an observed and paid holiday;
•Bereavement Leave: Update language to comply with new state law by removing the word “consecutive” and adding language that all paid and unpaid bereavement leave must be taken within three calendar months of the date of death; and •Tuition Reimbursement: Increase the reimbursement amount to $3,000 annually for expenses incurred in job related educational programs or job-related certificate programs.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the amended Salary and Benefit Resolution for the Confidential Group for the period July 1, 2023 through June 30, 2026; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution- Confidential Salary & Benefit Reso 2023-2026

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

ADOPTING THE AMENDED SALARY AND BENEFIT RESOLUTION FOR THE CONFIDENTIAL GROUP FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2026.

WHEREAS, on June 28, 2021 the City Council adopted Resolution No. 2021-062 modifying the Salary and Benefit Resolution for the Confidential Group for the period July 1, 2021 through June 30, 2023; and
WHEREAS, is it now necessary to adopt a new Salary and Benefit Resolution for the period of July 1, 2023 through June 30, 2026.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Carlos hereby adopts the amended Salary and Benefit Resolution for the Confidential Group (attached as Exhibit A).
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 11th day of September 2023, by the following vote:

AYES, COUNCILMEMBERS:___________________________________________ NOES, COUNCILMEMBERS:___________________________________________ ABSENT, COUNCILMEMBERS:___________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A: Salary and Benefit Resolution for the Confidential Group

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CITY OF SAN CARLOS

CONFIDENTIAL GROUP
Salary and Benefit
Resolution
July 1, 2023
to
June 30, 2026

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CONFIDENTIAL GROUP
Table of Contents

1. SALARIES..............................................................................................................................4

1.1 Salary Rates .................................................................................................................4

1.2 Equity Adjustments .......................................................................................................4

2. OVERTIME ............................................................................................................................5

2.1 No Minimum Hours Guarantee .....................................................................................5

3. PAY FOR TEMPORARY APPOINTMENT TO A HIGHER CLASSIFICATION...............5

4. ADMINISTRATIVE LEAVE..................................................................................................6

5. HOLIDAYS..............................................................................................................................6

6. VACATION .............................................................................................................................6

6.1 Entitlement.....................................................................................................................6

6.2 Vacation Accrual ...........................................................................................................7

6.3 Vacation Cash Out.........................................................................................................7

6.4 Holiday Closures ...........................................................................................................7

7. SICK LEAVE...........................................................................................................................7

7.1 Accrual...........................................................................................................................7

7.2 Sick Leave Reinstatement..............................................................................................8

7.3 Family Sick Leave .........................................................................................................8

7.4 Bereavement Leave .......................................................................................................8

7.5 Family Care Leave and Pregnancy Disability Leave ....................................................8

8. JURY DUTY............................................................................................................................8

9. BENEFITS ...............................................................................................................................8

9.1 Health Plan Contributions for Active Employees .........................................................8

9.2 Section 125 Flex Plan Contribution...............................................................................9

9.3 Alternate Medical Benefit Program...............................................................................9

9.4 Retiree Health Plan Contributions ...............................................................................10

9.5 Longevity Recognition Program..................................................................................10

9.6 Dental Plan...................................................................................................................10

9.7 Vision Care Plan ..........................................................................................................10

9.8 Long-term Disability ...................................................................................................11

9.9 Life Insurance ..............................................................................................................11

9.10 Commuter Benefits......................................................................................................11

10. RETIREMENT.......................................................................................................................11

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10.1 Retirement Notice........................................................................................................11

10.2 Deferred Compensation 457 Plan Match.....................................................................12

11. CALIFORNIA STATE DISABILITY INSURANCE & PAID FAMILY LEAVE ..............12

11.1 State Paid Leave Integration:.......................................................................................12

12. MILEAGE REIMBURSEMENT...........................................................................................12

13. FLEXIBLE BENEFIT PLAN ................................................................................................12

14. EDUCATION REIMBURSEMENT .....................................................................................12 APPENDIX A................................................................................................................................14 WAGE SCHEDULE..............................................................................................................14

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CITY OF SAN CARLOS

CONFIDENTIAL GROUP
Salary and Benefit Resolution
This RESOLUTION modifies the existing terms of employment for the Confidential Group.

The Confidential Group is a non-represented group and not a formally recognized employee organization. The members of the Confidential Group have been consulted in the development of these terms, and it is the Council’s desire to adopt the revised terms as documented below.

1. SALARIES
Salaries are paid bi-weekly. The salary rates for all classifications are listed on Appendix A, attached hereto.

1.1 Salary Rates
The salary range for each classification shall be as specified in the attached Appendix “A” and shall take effect July 2023, July 2024 and July 2025.

The salary rates for all classifications are set forth in Appendix “A”. For the pay period beginning July 3, 2023 the applicable base wage rate increases for a cost-of-living adjustment is:

Classification Percentage Increase
All Classifications 5%
For the pay period beginning July 1, 2024 the applicable base wage rate increases for a cost-of-living adjustment is:

Classification Percentage Increase
All Classifications 3%
For the pay period beginning July 14, 2025, the applicable base wage rate increases for a cost-of-living adjustment are:

Classification Percentage Increase
All Classifications 3%
All increases or decreases in compensation shall take effect at the start of the first pay period following the date of the increase or decrease.

1.2Equity Adjustments
Effective each year beginning on the first pay period of July 2023 – July 2025, some positions are eligible for equity adjustments based on a market comparables in the following agencies:

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Burlingame, Cupertino, Foster City, Fremont, Hayward, Menlo Park, Milpitas, Mountain View, Palo Alto, Redwood City, San Mateo, Santa Clara, Sunnyvale, and Union City.

All adjustments have been incorporated into the monthly Salary Schedule as shown in Appendix A.

2. OVERTIME
Any authorized time worked in excess of 40 hours in the applicable designated FLSA workweek shall be considered overtime and shall be compensable at the rate of one and one-half (1-1/2) times the employee's regular straight time rate of pay. Any authorized time worked in excess of twelve (12) hours shall be compensable at the rate of two (2) times the employee’s regular straight-time rate of pay. For purposes of Section Two, Overtime, “time worked” excludes time in paid status but not worked such as paid or unpaid sick leave hours, vacation hours, holidays, disability, or other leave or compensatory time off. An employee shall not be required to reduce a scheduled workday in whole or in part to avoid the payment for overtime worked on another scheduled workday. Compensatory time off may be taken in lieu of overtime payment. Such time shall be taken off at a time mutually agreeable to the employee and the Department Head. Accrued compensatory time off in excess of forty-eight (48) hours shall be liquidated by monetary payment to the employee during the month of October. However, accrued hours in excess of 48 may be retained if the employee has a scheduled and approved leave for which those hours will be taken.

The parties acknowledge that the classifications of Human Resources Management Analyst and Executive Assistant qualify for exemption from overtime pay under applicable law and are therefore excluded from overtime under this agreement.

2.1 No Minimum Hours Guarantee
For new hires as of July 1, 2010, the City does not guarantee any employee full-time (40 hour per week) employment and may reduce the hours of a budgeted position at any time.

For incumbents of positions that have been permanently reduced to less than full time and remain subject to this Salary and Benefit Resolution, insurance benefits and paid leave accruals will be prorated in the ratio that the number of hours that the employee is regularly scheduled to work per week in the reduced position bears to forty (40) hours. (For example, an employee reduced to 32 hours per week will receive eighty percent (80%) of the section 125 plan contribution, vacation and sick leave accrual, and holiday pay that the employee would have received when working full-time.)
For employees hired prior to July 1, 2010, the City may reduce any employee to 37.5 hours per week. The City will consider 37.5 hours per week to be full-time employment and employees reduced to 37.5 hours per week will not experience a prorated reduction in insurance benefits or paid leave accruals.

3. PAY FOR TEMPORARY APPOINTMENT TO A HIGHER CLASSIFICATION When an employee has been appointed temporarily to perform the work of a position having a different classification either within or outside of the employee group and being paid at a higher rate, and if he/she has worked in such classification for more than four (4), but less than thirty (30) consecutive workdays, he/she shall be entitled to payment at five

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percent (5%) above his/her regular pay. For temporary assignments greater than 30 days, the City Manager may recommend to Council a salary rate within the existing range of the new classification. Payment shall commence with the first (1 st) workday of the temporary assignment and shall continue, including holidays, during the period of temporary assignment. Such appointment shall be in writing by the Department Head and approved by the City Manager or his designated representative.

4. ADMINISTRATIVE LEAVE
Employees in the Human Resources Management Analyst, Legal Secretary, Deputy City Clerk and Executive Assistant classifications shall be credited with sixty (60) hours of Administrative Leave each January 1. Administrative leave shall be pro-rated for new hires based on the date of hire during the calendar year. Administrative leave must be used within the calendar year or else it is lost.

5. HOLIDAYS
Regular full-time employees in established positions shall be entitled to take all authorized holidays at full pay, not to exceed eight (8) hours for anyone (1) day, provided they are in a pay status on both their regularly scheduled workdays immediately preceding and following the holiday.
(1) January 1 New Year’s Day
(2) Third Monday in January Martin Luther King, Jr. Day (3) Third Monday in February President’s Day
(4) Last Monday in May Memorial Day
(5) June 19 Juneteenth
(6) July 4 Independence Day
(7) First Monday in September Labor Day
(8) November 11 Veteran’s Day
(9) Fourth Thursday in November Thanksgiving Day
(10) Fourth Friday in November Day after Thanksgiving
(11) December 25 Christmas Day
Regular full-time employees will be entitled to forty (40) hours of Floating time off. Such float time shall be arranged at least two (2) weeks in advance of the day desired and scheduled by mutual agreement with the Department Head. This amount will be pro-rated for new employees hired during the year. Float time must be used within the calendar year or else it is lost.

If an FLSA non-exempt employee is required to work on his or her holiday, he or she shall receive one and one-half (1.5) times his or her regular wage rate for the hours worked.

6. VACATION

6.1 Entitlement
All employees who hold full-time positions are entitled to twelve (12) working days' vacation pay upon successful completion of their first year of continuous service.

Employees may take accrued vacation after the completion of six (6) months' service. After the first year, employees shall accrue vacation according to the following schedule:

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Length of Service Vacation Accrual Rate
1st year to 4 years 12 days (96 working hours/3.694 hours bi-weekly) After 4 years to 11 years 16 days (128 working hours/4.924 hours bi-weekly) After 11 years 17 days (136 working hours/5.231 hours bi-weekly) After 12 years 18 days (144 working hours/5.54 hours bi-weekly) After 13 years 19 days (152 working hours/5.847 hours bi-weekly) After 14 years to 16 years 21 days (168 working hours/6.462 hours bi-weekly) After 16 years 22 days (176 working hours/6.77 hours bi-weekly) After 17 years 23 days (184 working hours/7.077 hours bi-weekly) After 18 years 24 days (192 working hours/7.385 hours bi-weekly) After 19 years 25 days (200 working hours/7.70 hours bi-weekly)

6.2 Vacation Accrual
No employee shall be allowed to have an accumulation of more than two (2) years’ vacation accrual to his or her credit at any one time. Effective July 1, 2021, the applicable accumulation ceiling will be lifted, and any vacation accrued in excess of the maximum allowed on or after that date shall be liquidated by monetary payment every year through payroll during the month of October. With the City Manager approval, employees may request the liquidation of their vacation accrued in excess of two (2) years prior to October.

6.3 Vacation Cash Out
An employee may make an irrevocable election to sell back to the City forty (40) hours in a calendar year of accumulated vacation at the employee’s base rate of pay.

Sell back requests must be received by Payroll no later than December 31 for the following calendar year’s elections. Elected hours not requested for distribution (sell back) by December 1 will be automatically distributed in the next pay period (sell back cannot be more than the hours available at time of distribution).

6.4 Holiday Closures
The City Manager may designate up to five (5) specific workdays in each calendar year between Christmas Eve and New Year’s Day during which employees may be required to take time off, charged to leave without pay, the employee’s accumulated compensatory time, vacation, float time, administrative leave, or a combination thereof, as determined by the affected employee. The days must be consecutive for the employee but may differ between employees. Employees who do not have sufficient accumulated time off in their account to cover the required time off may request, and will be granted, sufficient advance on their vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by the employee. Time off work under this provision shall not be deemed a layoff.

7. SICK LEAVE

7.1 Accrual
Employees shall accrue sick leave credit at the rate of eight (8) hours per month. Unused sick leave may be accrued without limit.

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7.2 Sick Leave Reinstatement
In accordance with State law, if an employee is rehired within one year from the date of separation, the previously accrued and unused sick hours shall be reinstated. The City will not reinstate any accrued paid time off that was paid out or applied to the calculation of pension at the time of termination, resignation, or retirement.

7.3 Family Sick Leave
The care of the employee’s ill or injured immediate family member (as defined in Bereavement Leave and applicable state law) to a maximum of half of the employee’s annual sick leave accrual (48 hours per year). Such leave is charged against an employee’s accrued sick leave credit.

7.4 Bereavement Leave
In case of death within the immediate family of an employee, such employee shall be entitled to remain absent from duty with pay in order to attend the funeral or memorial service for a maximum of five (5) workdays.

For the purpose of this Section, immediate family is defined as husband, wife, domestic partner as defined by the State of California, father, mother, grandfather, grandmother, sister, brother, son, daughter, grandchild, mother-in-law, father-in-law, stepchild, stepmother, stepfather, or such person who has served in the place of the employee’s parent.

Such leave shall not be charged against the employee as leave without pay nor deducted from the employee's accrued sick or vacation leave balances. All bereavement leave must be taken within three calendar months of the date of death.

7.5 Family Care Leave and Pregnancy Disability Leave
Family Care Leave and Pregnancy Disability Leave is granted to an employee in accordance with the Federal and State Law as adopted in the City’s Family Care Leave Policy and Pregnancy Disability Leave Policy.

8. JURY DUTY
An employee summoned to jury duty shall inform his supervisor and if required to serve, may be absent from duty with full pay; provided, however, the employee must remit to the City, through the employee's Department Head, within fifteen (15) days after receipt, all fees received except those specifically allowed for mileage and expenses.

9. BENEFITS

9.1 Health Plan Contributions for Active Employees
The City shall contribute the CalPERS (PEMHCA) minimum amount required by law for each active employee enrolled in a CalPERS health plan. Any remaining premium shall be paid by the employee either through the section 125 Plan (described below) or payroll deduction or a combination thereof.

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9.2 Section 125 Flex Plan Contribution
A. The City will continue to provide a Flexible Benefits plan, subject to the requirements and availability of Internal Revenue Code Section 125, allowing employees to use pre-tax compensation for PEMHCA medical premiums, eligible dependent care expenses, eligible uninsured medical expenses, or a combination thereof.

B. Effective January 1, 2023, the City contributes each month up to the amounts listed below, based on the employee’s level of medical plan enrollment, to each active employee’s Section 125 Plan account.
*An employee may elect to opt out of medical insurance coverage only in accordance with sub- section 9.3 below. The amount shown in this table is the amount resulting from such election.

C. Any amount remaining after the employee has designated the portions of his or her Section 125 plan contribution amount for the purposes described in paragraph A above will be deemed forfeited.

D. Procedures for the administration of the Section 125 Plan shall be determined by the City. The City shall assume the administrative cost for the Plan.

E. Effective January 1, 2024, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2023 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

F. Effective January 1, 2025, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2024 combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

G. Effective January 1, 2026, the City’s Section 125 contribution amounts will reflect a percentage portion of the average January 1, 2025, combined percentage premium increase at all levels of plan enrollment for the City’s current miscellaneous employee PEMHCA plans (offered within San Mateo County) that exceeds two percent (2%).

9.3 Alternate Medical Benefit Program
Eligible employees who are covered by health insurance through their spouse or other source with benefits comparable to those provided through City sponsored plans may waive coverage under the City sponsored plans. The employee shall sign a waiver form Level of Medical Plan Enrollment Amount of Monthly City Contribution No Plan (opt out)* $1,011.51
Employee Only $1,011.51
Employee + One $1,721.99
Employee + Two or more $2,080.64

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provided by the Human Resources Department. The City will pay such employee(s) an amount equal to the monthly employee only contribution to the Section 125 plan pursuant to section 9.2 above each month thereafter that the employee continues to receive health insurance through their spouse or other source.

The employee must understand that re-enrollment in the City sponsored CalPERS Plan is subject to the limitations/exclusions/time period instituted by CalPERS. Employees are eligible to re-enroll during the CalPERS open enrollment period. Upon the effective date of the re-enrollment, payments pursuant to this subsection 9.3 cease.

9.4 Retiree Health Plan Contributions
If an employee has worked for the City of San Carlos a minimum of ten (10) years and retires with a PERS retirement, the City will allow the retiree only to stay on the City’s dental and vision insurance plans provided the employee pays the full premium(s) plus a two percent (2%) administration fee. This option must be exercised at the time of retirement.

The City shall contribute the minimum amount required by law toward the monthly premium for hospital and medical care under the CalPERS (PEMHCA) Health Plan for individuals who retire from the City through CalPERS.

9.5 Longevity Recognition Program
A. Employees hired by the City before January 1, 2009, who retire from the City through CalPERS who have completed at least ten (10) years of total continuous City service immediately preceding such retirement shall be eligible for a monthly payment in the amount equal to the monthly employee only contribution to the Section 125 plan pursuant to section 9.2 following retirement and continuing until the employee’s death. This amount shall increase by the same percentages and at the same times as the City’s Section 125 Plan contribution increases for active employees selecting employee-only medical coverage.

B. Employees hired on or after January 1, 2009, will not be eligible for Longevity Pay.

9.6 Dental Plan
The City shall provide a Dental Plan for eligible employees and their dependents and shall pay a maximum monthly amount of up to One hundred and seventy-five ($175.00) Dollars.

Effective July 1, 2015, the annual maximum reimbursement for dental expenses per fiscal year per covered participant will increase from $1,500 to $2,000. During the life of this agreement the City may select and implement a substitute plan(s). Any cost for the current or a substitute plan not paid by the City will be paid by the employee through payroll.

9.7 Vision Care Plan
The City agrees to pay for the cost of a vision plan covering the employee only. Such plan shall include annual frames, lenses, and examinations. Effective January 1, 2016, employees will be permitted to enroll their dependents in the Vision Care Plan. The entire premium for the dependent coverage will be paid by the employee by payroll deduction at their own expense at the applicable two-party or family rate then in effect minus the City’s contribution for the employee’s coverage.

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The City agrees to contribute up to Thirty dollars ($30.00) per month per employee in the Confidential Group towards the cost of a vision plan covering the employee only. Such plan shall include annual frames, lenses, and examinations.

9.8 Long-term Disability
The City shall continue to provide long-term disability insurance for employees in the Confidential Unit; the waiting period for long-term disability benefits shall be forty-five (45) days. The Long-Term Disability premium is taxed to allow the long-term disability payment to be issued on a tax-free basis.

9.9 Life Insurance
The City shall provide for each eligible employee life insurance in the amount of Two Hundred Thousand Dollars ($200,000). The premium for the amount over $50,000 is subject to Federal and State taxes.

9.10 Commuter Benefits
Employees can elect to designate a portion of salary before taxes (pretax income) to pay for qualified transit, vanpooling, or parking expenses (up to the IRS allowable monthly maximum). The City will also contribute up to $225 per year per employee toward a commuter benefit program which would also be subject to the IRS allowable maximums.

Such program for qualifying commuter expenses will be established by the City after the adoption of this Salary and Benefit Resolution.

10. RETIREMENT
For employees hired before March 16, 2009, the City provides the PERS 2.7 % @ 55 retirement benefit formula with the PERS single highest year final compensation average, conversation of unused sick leave to PERS service credit and Industrial Disability.

For employees hired on March 16, 2009, through April 22, 2012, the City provides the PERS 2.5% @ 55 retirement benefit formula with the PERS single highest year final compensation average, conversation of unused sick leave to PERS service credit and Industrial Disability.

For employees hired on April 23, 2012, through December 31, 2012, or “classic” CalPERS members, as defined by CalPERS, the City provides the PERS 2.0% @ 55 retirement benefit formula with the average of the three highest years compensation as the basis for calculating the pension, conversion of unused sick leave to PERS credit and Industrial Disability.

For employees hired on or after January 1, 2013, and are “new” CalPERS members, as defined by CalPERS, the City will provide the PERS 2.0% @ 62 retirement benefit formula with the average of the three highest years compensation as the basis for calculating the pension, conversion of unused sick leave to PERS credit and Industrial Disability.

10.1 Retirement Notice
Employees shall submit a notice of retirement in writing as far in advance as possible.

Employees should submit a written letter to the City Manager at least 180 days before their

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anticipated last day of work. If less than 180 days’ notice is given and no extenuating circumstances prevented the employees from give the required notice, employees will not be allowed to run out their accrued vacation time prior to retirement.

10.2 Deferred Compensation 457 Plan Match
The City shall provide a contribution to an employee's deferred compensation account in an amount equal to the employee's contribution at a ratio of 1:1, to a maximum of two hundred and twenty-five dollars ($225.00) per month. This shall not imply any City endorsement or responsibility for the performance of any deferred compensation account or instrument selected by the employee.

11. CALIFORNIA STATE DISABILITY INSURANCE & PAID FAMILY LEAVE The Confidential Group participates in the California State Disability Insurance and Paid Family Leave programs. The cost for this program is paid completely by the employee.

11.1 State Paid Leave Integration:

A. State Disability Insurance (SDI) and Paid Family Leave (PFL) integration will be made only when the employee is off work and meets the State’s eligibility requirements.

B. Integration will be made with accrued and unused sick leave first, and then, after exhaustion of all accrued sick leave or eligible family sick, at the employee’s request, accrued and unused vacation leave, float, and/or accumulated Compensatory Time Off (CTO) will be used.

C. The City will project the amount of SDI/PFL benefit to be received by an eligible employee for the purpose of integration, and the employee will provide the City with evidence of the SDI/PFL benefit received.

D. An employee who does not wish to file for SDI/PFL, however, shall notify payroll and no such integration shall be made.

12. MILEAGE REIMBURSEMENT
The City agrees to reimburse employees for mileage driven in their personal vehicles while conducting City business at the rate specified by the IRS. Claims for such reimbursement must be submitted monthly on the proper City form and approved by the City before payment can be made.

13. FLEXIBLE BENEFIT PLAN
The City will continue to implement the provisions of the Internal Revenue Code Section 125 Plan, allowing employees to use pre-tax compensation for dependent care expenses, medical premiums, and excess medical expenses subject to the provisions of the Internal Revenue Code. Participation is through the Direct Reimbursement Plan.

14. EDUCATION REIMBURSEMENT
Confidential employees are eligible to participate in the education reimbursement program in an amount up to Three Thousand Dollars ($3,000) per employee per calendar year for the following education expenses:

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•Tuition reimbursement program provides for reimbursement of expenses incurred in job-related educational programs which include the pursuit of a degree program, certificate program or other education that enhances the employee’s service to the community. Participation in this program must be pre-approved by the City Manager and may be subject to applicable tax withholdings. •Student loan payments incurred in the pursuit of post-secondary education during or prior to employee’s service to the City. This reimbursement is subject to applicable tax withholdings.

It is mutually recommended that the provisions shown above be made applicable on the dates indicated for those employees represented by the Confidential Group.

CITY OF SAN CARLOS
Dated:

By:

Jeff Maltbie, City Manager

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CITY OF SAN CARLOS

APPENDIX A

CONFIDENTIAL GROUP

WAGE SCHEDULE
Effective July 3, 2023
Classification Step 1 Step 2 Step 3 Step 4 Step 5*
Hourly
Accountant $47.1240 $49.4802 $51.9542 $54.5519 $57.2795 Administrative Assistant $38.4492 $40.3727 $42.3964 $44.5090 $46.7439 Management Analyst $49.7885 $52.2869 $54.8871 $57.6456 $60.5172 Monthly
Deputy City Clerk $7,716 $8,102 $8,507 $8,933 $9,379
Executive Assistant $7,839 $8,232 $8,644 $9,075 $9,531
Legal Secretary $7,440 $7,812 $8,202 $8,612 $9,043
Human Resources Management Analyst $8,942 $9,392 $9,860 $10,354 $10,871 Effective July 1, 2024
Classification Step 1 Step 2 Step 3 Step 4 Step 5*
Hourly
Accountant $49.8369 $52.3288 $54.9452 $57.6924 $60.5771 Administrative Assistant $40.7155 $42.7524 $44.8954 $47.1325 $49.4991 Management Analyst $53.6069 $56.2970 $59.0966 $62.0666 $65.1585 Monthly
Deputy City Clerk $8,458 $8,881 $9,325 $9,791 $10,281
Executive Assistant $8,273 $8,687 $9,122 $9,578 $10,059 Legal Secretary $7,753 $8,141 $8,548 $8,975 $9,424
Human Resources Management Analyst $9,585 $10,067 $10,569 $11,099 $11,653

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CITY OF SAN CARLOS

APPENDIX A

CONFIDENTIAL GROUP

WAGE SCHEDULE
Effective July 14, 2025
Classification Step 1 Step 2 Step 3 Step 4 Step 5*
Hourly
Accountant $52.7060 $55.3414 $58.1084 $61.0137 $64.0645 Administrative Assistant $43.1154 $45.2724 $47.5417 $49.9106 $52.4167 Management Analyst $57.7182 $60.6146 $63.6289 $66.8267 $70.1557 Monthly
Deputy City Clerk $9,271 $9,734 $10,221 $10,732 $11,268 Executive Assistant $8,731 $9,169 $9,627 $10,108 $10,616 Legal Secretary $8,080 $8,484 $8,908 $9,354 $9,822
Human Resources Management Analyst $10,274 $10,791 $11,329 $11,897 $12,490 *Actual salary may be at or below this maximum at the discretion of the City Manager

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CITY COUNCIL

STAFF REPORT
MEETING DATE: September 11, 2023
ITEM TITLE: Consideration of Introducing an Ordinance Amending and Replacing San Carlos Municipal Code Chapter 8.07 - Tobacco Retailer Permits, to Consolidate and Clarify Existing Definitions and Enact Additional Requirements for Tobacco Retailer Permits to Align with the County of San Mateo Model Ordinance.

RECOMMENDATION:

Staff recommends that the City Council introduce an Ordinance amending the San Carlos Municipal Code Chapter 8.07 "Tobacco Retailer Permits" to consolidate and clarify existing definitions and enact additional requirements for tobacco retailer permits to align with the County of San Mateo Model Ordinance.

FISCAL IMPLICATIONS:

No impact is anticipated as a result of the revised ordinance.

BACKGROUND:

San Carlos Municipal Code Chapter 8.07 provides that sellers of any tobacco product must obtain and maintain a valid tobacco retailer permit. Under existing Chapter 8.07, the City of San Carlos has authorized the San Mateo County Environmental Health Division to administer and enforce the requirements of the City’s Tobacco Retailer Permit Ordinance.

The San Mateo County Board of Supervisors adopted an ordinance (Chapter 4.98 of the County Ordinance Code) to amend the San Mateo County Code related to Tobacco Retailer Permits. The County Environmental Health Division has indicated it will continue to administer a tobacco retailer permit program for those cities which adopt the County’s comprehensive ordinance in its entirety, without alteration. The City should continue to authorize the County to administer a tobacco retailer permit program in the City of San Carlos. The proposed amendments to Chapter 8.07 will add definitions to incorporate best practices across the state, strengthen ordinance language to reduce youth access to tobacco products, and make the San Carlos Municipal Code consistent with the San Mateo County Code of Ordinances, thereby promoting more efficient administration and enforcement. Staff recommends introduction of the Ordinance to provide consistency and maintain the City's interest in providing stringent regulation for the sale of tobacco products.

Environmental Determination.

In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15378(b)(5), adoption of this Ordinance is categorically exempt from CEQA as an administrative activity that will not result in a potentially significant physical impact on the environment.

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Notice Provided.

All meeting noticing requirements were met.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Introduce an Ordinance amending the San Carlos Municipal Code Chapter 8.07 "Tobacco Retailer Permits" to consolidate and clarify existing definitions and enact additional requirements for tobacco retailer permits to align with the County of San Mateo Model Ordinance; or

2. Do not introduce the proposed Ordinance; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Gregory Rubens, City Attorney
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Proposed Ordinance
Exhibit A to Ordinance – SMC Tobacco Ordinance Model

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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AMENDING AND REPLACING SAN CARLOS MUNICIPAL CODE CHAPTER 8.07 -

TOBACCO RETAILER PERMITS, TO CONSOLIDATE AND CLARIFY EXISTING

DEFINITIONS AND ENACT ADDITIONAL REQUIREMENTS FOR TOBACCO RETAILER PERMITS TO ALIGN WITH THE COUNTY OF SAN MATEO MODEL ORDINANCE.

WHEREAS, the County of San Mateo Division of Environmental Health operates a countywide program of enforcement of tobacco retailers; and WHEREAS, the County pays for the cost of operating the program with permit fees and fines collected, with a goal of obtaining compliance and for the protection of the health and safety of its residents; and
WHEREAS, the City Council agrees that regulation of tobacco retail permits and sales and enforcement of these regulations saves limited code enforcement resources of the City and benefits public health and safety for San Carlos residents and visitors; and WHEREAS, Chapter 8.07 of the Municipal Code regulates Tobacco retailers in the City and authorizes County enforcement. Adopting the model Code to provide for alignment with the County model ordinance is in the interest of the City of San Carlos; and WHEREAS, the County is requesting cities desiring to participate and authorize enforcement of the program to adopt a model ordinance with identical provisions in order to provide efficient and uniform enforcement for the tobacco permit and regulatory program.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF SAN CARLOS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: The City Council finds that the replacement and amendment of Chapter 8.07 of Title 8 will provide for continued health and safety of the residents of San Carlos, and will contribute to uniform countywide enforcement of these regulations stated therein by the County of San Mateo Environmental Health Division.

SECTION 2: The City Council finds that the revised Chapter 8.07 of the San Carlos Municipal Code conforming with the County Model Tobacco Permit Ordinance is necessary and appropriate for these purposes.

SECTION 3: The City Council hereby amends and replaces Chapter 8.07 of the Municipal code as attached hereto as Exhibit A and incorporated by this reference.

SECTION 4: Severability. The City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable and if for any reason any sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

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SECTION 5: Publication and Effective Date. This Ordinance shall be published and posted according to law and shall take effect and be in force from and after 30 days after its passage and adoption.
****

I, City Clerk Crystal Mui, hereby certify that the foregoing Ordinance was introduced on the 11th day of September, 2023 and passed and adopted as an Ordinance of the City of San Carlos at a regular meeting thereof held on the __ day of ____, 2023 by the following vote:

AYES, COUNCILMEMBERS: __________________________________________________ NOES, COUNCILMEMBERS: _________________________________________________ ABSENT, COUNCILMEMBERS: _______________________________________________ ______________________________
CITY CLERK of the City of San Carlos
APPROVED:

MAYOR of the City of San Carlos
Exhibit A: Revised Chapter 8.07 (Conforming with SMC Tobacco Ordinance 4.98)

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Chapter 8.07 - TOBACCO RETAILER PERMIT

8.07.100 - Definitions.
(a) "Characterizing Flavor" means a distinguishable taste or aroma, or both, other than the taste or aroma of tobacco, imparted by a Tobacco Product or any byproduct produced by the Tobacco Product. Characterizing flavors include, but are not limited to, tastes or aroma relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A Tobacco Product shall not be determined to have a Characterizing Flavor solely because of the use of additives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, as described in the first sentence of this definition, that constitutes a Characterizing Flavor.
(b) "Constituent" means any ingredient, substance, chemical, or compound, other than tobacco, water, or reconstituted tobacco sheet that is added by the manufacturer to a Tobacco Product during the processing, manufacture, or packing of the Tobacco Product.
(c) “Consumer” means a person who purchases a Tobacco Product for consumption. (d) “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price.
(e) “Director” means the Chief of San Mateo County Health, or designee. (f) "Distinguishable" means perceivable by either the sense of smell or taste. (g) “Electronic Smoking Device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e- hookah.

Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic. “Electronic Smoking Device” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic

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purposes where such product is marketed and sold solely for such an approved purpose.
(h) "Flavored Tobacco Product" means any Tobacco Product that contains a Constituent that imparts a Characterizing Flavor.
(i) “Full Retail Price” means the price listed for a Tobacco Product on its Packaging or on any related shelving, advertising, or display where the Tobacco Product is sold or offered for Sale, plus all applicable taxes and fees if such taxes and fees are not included in the listed price.
(j) “Labeling” means written, printed, pictorial, or graphic matter upon any Tobacco Product or any of its packaging.
(k) “Packaging” means a pack, box, carton, or container of any kind or, if no other container, any wrapping (including cellophane) in which a Tobacco Product is sold, or offered for Sale, to a Consumer.
(l) “Permit” or “Tobacco Retailer Permit” means a valid permit issued by the Director to a Person to act as a Tobacco Retailer.
(m) “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other entity.
(n) "Pharmacy" means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for Sale, regardless of whether the retail establishment Sells other retail goods in addition to prescription pharmaceuticals.
(o) “Sale” or “Sell” means transfer to, exchange, barter, or distribute for a commercial purpose.
(p) “Self-Service Display” shall be defined as the open display or storage of Tobacco Products in a manner that is physically accessible to the general public without the assistance of the retailer or employee of the retailer and a direct face-to-face transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display.
(q) “Tobacco Paraphernalia” means any item designed or marketed for the consumption, use, or preparation of Tobacco Products.
(r) “Tobacco" or "Tobacco Product(s)" means:

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(1) any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
(2) any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic; or
(3) any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, whether natural or synthetic, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
(4) “Tobacco Product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose.
(s) “Tobacco Product Flavor Enhancer” means a product designed, manufactured, produced, marketed or Sold to produce a Characterizing Flavor when added to a Tobacco Product.
(t) “Tobacco Retailer” means any Person who Sells, or offers for Sale, Tobacco Products. This definition is without regard to the quantity of Tobacco Products sold or offered for Sale.
(u) “Youth-Populated Area” means a parcel of real property that is occupied, in whole or in part, by any of the following:
(1) a private or public school that educates children in grades kindergarten through high school;
(2) a library that is open to the public;
(3) a playground that is open to the public;
(4) a youth center, defined as a facility where children ages 6 to 17 come together for programs and activities;
(5) a recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes. “Recreation facility” includes, but is not limited to, a gymnasium, playing court, playing field, and swimming pool;

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(6) a public or private college or university that serves as an institution for education beyond the high school level;
(7) a licensed child-care facility or preschool, other than a small-family day care home or a large-family daycare home as defined in California Health & Safety Code § 1596.78.

8.07.110 - Requirement for a Permit.
(a) No Tobacco Retailer or other Person shall Sell or offer for Sale any Tobacco Product without a current and valid Tobacco Retailer Permit from San Mateo County for each location where such activities are conducted. (b) Permits are valid for one year and must be timely renewed annually by the Permit holder in order to continue to sell or offer for sale any Tobacco Product. A Retailer must obtain a separate Permit for each location at which any Tobacco Product will be sold, offered for sale or distributed. A Permit that is not renewed in a timely manner shall expire at the end of its term, and the Tobacco Retailer must obtain a new Permit prior to any further sale, offer for sale, or distribution of any Tobacco Product.
(c) No Tobacco Retailer shall violate, or cause or allow the Tobacco Retailer’s agents or employees to violate, any provision of this Chapter or any other local, state, or federal law applicable to Tobacco Products or Tobacco Retailing. (d) Tobacco Retailers are responsible for the actions of their employees and agents relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer and the permit holder shall be responsible for any monetary penalties levied.
(e) Nothing in this Chapter shall be construed to penalize the purchase, use, or possession of a Tobacco Product by any Person not engaged in Tobacco Retailing.

8.07.120 - Permit is Nontransferable.
(a) Tobacco Retailer Permits are nontransferable as between Persons, locations, or otherwise. Any attempted transfer shall render the Permit null and void. (b) Notwithstanding any other provision of this Chapter, prior violations of this Chapter at a location shall continue to be counted against that location and Permit ineligibility and suspension periods shall continue to apply to that location unless:

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(1) One hundred percent of the interest in the stock, assets, or income of the business, other than a security interest for the repayment of debt, has been transferred to the new owner(s); and
(2) The County is provided with clear and convincing evidence, including an affidavit, that the business has been acquired in an Arm's Length Transaction. An Arm’s Length Transaction, for the purposes of this section, means a transaction in which two or more unrelated and unaffiliated parties agree on the transfer in question; the parties act independently and in their own self-interest; and the parties have equal bargaining power and symmetric information, leading the parties to agree upon fair-market terms.

8.07.130 - Permit Conveys a Limited, Conditional Privilege.

Nothing in this Chapter shall be construed to grant any Person or entity obtaining and maintaining a Permit any status or right other than the limited, conditional privilege to Sell Tobacco Products and act as a Tobacco Retailer at the location in the County identified on the face of the Permit for the period of time shown on the Permit. All Permits are issued subject to the County’s right to amend this Chapter from time to time, and Retailers shall comply with all provisions of this Chapter, as amended.

8.07.140 - Application, Issuance and Renewal Procedure. (a) Application for a Tobacco Retailer's Permit or the renewal of a Tobacco Retailer Permit shall be submitted in the name of the Person proposing to conduct retail sales of Tobacco Products, referred to herein as the “Applicant,” and shall be signed by such Person or an authorized agent thereof. All applications shall be submitted to the Director on a form supplied by the Director and contain, at a minimum, the following information:
(1) The name, address, and telephone number of the Applicant; (2) The business name, address, and telephone number of the location where Tobacco Products are proposed to be sold, offered for sale or distributed by the Applicant; and
(3) Proof that the location for which a Tobacco Retailer’s Permit is sought has been issued a valid state license for the sale of Tobacco Products, if the Tobacco Retailer sells products that require such license; (4) A statement whether or not the Tobacco Retailer or any agent of the Retailer has been found to have violated this Chapter or other applicable law governing Tobacco Products or Tobacco Retailing and, if so, the dates and locations of all such violations within the previous five years; and

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(5) Such other information as the Director determines is necessary for implementation of this Chapter.
(6) An application for a new or renewal Permit will be denied if there are any outstanding fines or late fees issued by the Director, or during any period of suspension.
(7) It is the responsibility of each Permit holder to be informed regarding all laws applicable to Tobacco Retailing, including those laws affecting the issuance of a Tobacco Retailer Permit. No Permit holder may rely on the issuance of a Permit as a determination by San Mateo County that the Permit holder has complied with all laws applicable to Tobacco Retailing.

A Permit issued contrary to this Chapter or any other law, or on the basis of false or misleading information supplied by the Applicant, shall be revoked. Nothing in this Chapter shall be construed to vest in any person or entity obtaining or maintaining a Tobacco Retailer’s Permit any status or right to act as a Tobacco Retailer in contravention of any provision of law.

8.07.150 - Display of Permit.

Upon receipt of an application for a Tobacco Retailer Permit in compliance with the requirements of this Chapter, the Director or designee may issue a Permit which, if issued, must be prominently displayed in a publicly visible location at the location where Tobacco Product Sales are conducted and permitted.

8.07.160 - Prohibitions Regarding Coupons, Discounts, Pharmacies, Flavored Tobacco, and Electronic Smoking Devices.
(a) No Tobacco Retailer shall do any of the following:
(1) Honor or redeem, or offer to honor or redeem, a Coupon to allow a Consumer to purchase a Tobacco Product for less than Full Retail Price; (2) Sell any Tobacco Product to a Consumer through a multiple package discount or otherwise provide any such product to a Consumer for less than the Full Retail Price in consideration for the purchase of any Tobacco Product or any other item; or
(3) Provide any free or discounted item to a Consumer in consideration for the purchase of any Tobacco Product.
(b) No Person, Tobacco Retailer or other legal entity shall sell or distribute to a person any electronic smoking device that delivers natural or synthetic nicotine or any other substance(s) to the person inhaling from the device. This includes

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any component, part, or accessory intended or reasonably expected to be used with the electronic device, whether or not sold separately. (c) No Person or Tobacco Retailer shall sell or offer to sell any Flavored Tobacco Product or Tobacco Product Flavor Enhancer. There shall be a rebuttable presumption that a Tobacco Product is a Flavored Tobacco Product if a manufacturer or any of the manufacturer's agents or employees, in the course of their agency or employment, has made a statement or claim directed to consumers or to the public that the Tobacco Product has or produces a Characterizing Flavor including, but not limited to, text, color, and/or images on the product's labeling or packaging that are used to explicitly or implicitly communicate that the Tobacco Product has a Characterizing Flavor.
(d) No Pharmacy or Pharmacy employee or agent shall sell or offer to sell any Tobacco Product. The Director shall not issue any new, or renew any existing, Tobacco Retailer Permit for any Pharmacy.
(e) Subdivisions (b) and (c) of this Section shall not apply to the duty- free stores located at the San Francisco International Airport.

8.07.170 - Packaging and Labeling.

No Tobacco Retailer or other Person shall Sell or offer for Sale any Tobacco Product to any Consumer unless the Tobacco Product (1) is Sold in the original manufacturer’s Packaging intended for Sale to Consumers; (2) conforms to all applicable federal Labeling requirements; and (3) conforms to all applicable child-resistant packaging requirements.

8.07.180 - Self-Service Displays Prohibited; On-Site, In-Person Sales Required. (a) Tobacco Retailing by means of a Self-Service Display is prohibited (b) All Sales of Tobacco Products and Tobacco Paraphernalia shall be conducted in- person, over the counter, in the permitted location.

8.07.190 - Notice of Minimum Age for Purchase of Tobacco Products.

Tobacco Retailers shall post conspicuously, at each point of purchase, a notice stating that Selling Tobacco Products to anyone under 21 years of age is illegal and subject to penalties. The form and content of such notice shall be subject to the approval of the Director.

8.07.200 - Positive Identification Required.

No Tobacco Retailer or other Person shall Sell or offer to Sell a Tobacco Product to another Person without first verifying by means of government-issued photographic

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identification that the recipient is at least the minimum legal sales age required under state law to purchase a Tobacco Product.

8.07.210 - Minimum Age for Individuals Selling Tobacco Products.

No Tobacco Retailer shall allow, at its Retail location, any individual who is younger than 21 years of age to Sell or offer to Sell Tobacco Products.

8.07.220 - Display or Offers to Sell Tobacco Products Without Tobacco Retailer Permit Prohibited.

A Tobacco Retailer without a current valid Permit:
(a) Shall keep all Tobacco Products out of public view. The public display of Tobacco Products in violation of this provision shall constitute Tobacco Retailing without a Permit.
(b) Shall not display any advertisement relating to Tobacco Products that offers the Sale of such products from the Tobacco Retailer’s location.

8.07.230 - Limits on Eligibility for a Permit.
(a) No Tobacco Retailer’s Permit may be issued to authorize Tobacco Retailing at or from other than a fixed location. For example, Sales by Persons on foot or from vehicles or other forms of mobile vending are prohibited. (b) No Tobacco Retailer’s Permit may be issued to authorize Sales of Tobacco Products at a temporary event, such as flea markets and farmers’ markets. (c) No new Tobacco Retailer Permit may be issued to authorize Tobacco Product Sales at any location within 1,000 feet of a Youth-Populated Area, as measured by a straight line from the nearest point of the property line of any parcel on which a Youth-Populated Area is located and any point along the property line of the parcel on which the Permit applicant has or proposes to locate the business. (d) No new Tobacco Retailer’s Permit may be issued for a location which is within 500 feet of a location already occupied by another Tobacco Retailer, as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing Tobacco Retailer’s business is located. (e) Tobacco Retailers with a current and valid Permit as of the date of adoption of this ordinance shall be exempt from subsections (c) and (d) of this Section unless the existing Tobacco Retailer fails to timely renew the Permit prior to its annual expiration.

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(f) The Sale of Tobacco Products and accessories is prohibited in County owned structures and in any area of a structure leased by the County, wherever located.

8.07.240 - Fees for Permit.

Tobacco Retailers shall pay all applicable fees at the rates set forth in section

5.64.070 of the San Mateo County ordinance code. Fees shall be used by the Director to administer and enforce this Chapter.

8.07.250 - Enforcement.
(a) The Director or the Director’s designee shall enforce this Chapter consistent with the provisions herein.
(b) Violations of this Chapter may be criminally prosecuted as infraction(s) or misdemeanor(s) at the discretion of the prosecuting attorney as the interests of justice require.
(c) This Section shall not be interpreted to limit the applicable civil or administrative remedies available under law.

8.07.260 - Public Nuisance.

Any violation of this Chapter is hereby declared a public nuisance, subject to all applicable civil, administrative, and criminal remedies and penalties according to the provisions and procedures of contained in this Ordinance Code and state law, including but not limited to, an action for abatement or injunctive relief

8.07.270 - Compliance Monitoring.
(a) Compliance with this Chapter shall be monitored by the Director. In addition, any peace officer may enforce the provisions of this Chapter. The Director may designate additional persons to monitor and facilitate compliance with this Chapter. (b) Individuals designated to enforce the provisions of this Chapter shall inspect each Tobacco Retailer at least two times during each twelve-month period to determine if the Tobacco Retailer is complying with all applicable laws. Compliance checks shall take place during normal business hours, with or without notice. If a violation has occurred, the Tobacco Retailer shall be inspected again within three months.

All permitted premises must be open to inspection by designated persons during regular business hours.

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(c) Nothing in this section shall create a right of action in any Tobacco Retailer or other person or entity against the County or its agents.

8.07.290 - Suspension or Revocation of Permit.
(a) Grounds for Suspension or Revocation.
(1) A Tobacco Retailer Permit may be suspended or revoked, as set forth below in subdivision (b), if any court of a competent jurisdiction determines, or the Director finds, based on a preponderance of the evidence after notice and opportunity for the Tobacco Retailer to be heard, that either of the following violations have occurred:
i. After the Permit was issued it is determined that the Application for the Permit is incomplete or inaccurate.
ii. The Tobacco Retailer or Tobacco Retailer’s agent has violated any of the requirements, conditions, or prohibitions of this Chapter or any applicable local, state, or federal tobacco-related law. (2) Notwithstanding the foregoing, a Tobacco Retailer Permit shall be suspended or revoked, for the maximum time periods and as set forth in subdivision (b), if any court of competent jurisdiction determines, or the Director finds, based on a preponderance of evidence and after notice and opportunity for the Tobacco Retailer to be heard, that the Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has Sold Tobacco Products to any Person(s) under the age of 21 years.
(b) Time Period of Suspension of Permit.
(1) Upon the first violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 30 days. (2) Upon the second violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 90 days. (3) Upon the third violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to one year.
(4) Upon the fourth violation within any sixty (60) month period, the Permit to Sell Tobacco Products shall be revoked. If a Permit is revoked, the Retailer shall not be eligible for a new Permit for a period of five (5) years after the effective date of revocation.
(c) Effective Date of Suspension or Revocation.

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Within ten (10) calendar days of the hearing, the Director shall issue written findings and an order regarding the suspension or revocation, which order will be effective ten (10) calendar days from the date such order was sent by certified mail to the Retailer, unless a timely appeal is filed in accordance with subsection (d). (d) Appeal of Suspension or Revocation.

The decision of the Director is appealable to the San Mateo County Licensing Board and the procedural rules of the San Mateo County Licensing Board shall govern hearings on all appeals of suspensions and revocations. (1) An appeal must be in writing, be addressed to the Director and be hand- delivered to the offices of the Division of Environmental Health. (2) An appeal must be received by the Director before the effective date of suspension or revocation provided by subsection (c) in order to be considered.
(3) The filing of a timely appeal will stay a suspension or revocation pending a decision on the appeal by the San Mateo County Licensing Board. (4) The decision of the San Mateo County Licensing Board shall be a final administrative order, with no further administrative right of appeal.

8.07.300 - Administrative Fine.
(a) Grounds for Fine. A fine shall be imposed on a Tobacco Retailer upon findings made by the Director, based on a preponderance of the evidence, that any Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has violated any of the requirements, conditions, or prohibitions of this Chapter. A fine shall be imposed in the maximum amounts set forth in subsection (b) of this section upon findings made by the Director that the Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has Sold any Tobacco Product to any Person(s) under the age of 21 years. Any administrative fine shall be imposed solely against the Tobacco Retailer, not the Tobacco Retailer’s employees or agents.
(b) Amount of Fine. Upon written findings made by the Director under subsection (a), the person or entity holding the Tobacco Retailer Permit shall be subject to an administrative fine for each such violation as follows:
(1) A fine not exceeding five hundred dollars ($500) for a first violation within a sixty (60) month period; and

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(2) A fine not exceeding one thousand dollars ($1,000) for each subsequent violation within a sixty (60) month period.
(c) Each day that Tobacco Products are Sold or offered for Sale without a Permit or otherwise in violation of this Chapter shall constitute a separate violation. A finding of "offered for Sale" in violation of this Chapter will be made if Tobacco Products are either actually Sold and/or displayed in the retail establishment, or if advertisements offering to Sell Tobacco Products are visible to customers. (d) Fine Procedures. Notice of the fine shall be served on the Tobacco Retailer by certified mail. The notice shall contain a description of the facts upon which the asserted violation is based and an advisement of the right to request a hearing before the Director contesting the imposition of the fine. Said hearing must be requested within ten calendar days of the date appearing on the notice of the fine.

The decision of the Director shall be a final administrative order, with no administrative right of appeal.
(a) Failure to Pay Fine. If a fine imposed pursuant to this Chapter is not paid within 30 calendar days from the date appearing on the notice of the fine or of the notice of determination of the Director after the review provided for under subdivision (c) of this Section, the fine may be referred to a collection agency within or external to the County. In addition, any outstanding fines must be paid prior to the issuance of any new Permit or renewal of a Permit.

8.07.310 - Enforcement of this Chapter in Cities.

The Director is authorized to administer and enforce the provisions of this Chapter 8.07 on behalf of the City of San Carlos as provided in the San Mateo Couty ordinance code at section 4.98.310(a).

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