RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MARIA, CALIFORNIA,
AUTHORIZING AND APPROVING A WAGE AND BENEFIT PACKAGE FOR THE
NON-REPRESENTED MANAGEMENT AND CONFIDENTIAL EMPLOYEES
WHEREAS, the City Council is committed to a compensation policy that strengthens the recruitment and retention of well qualified and effective managers and confidential employees; and
WHEREAS, in 2003, the Santa Maria Association of City Management Employees (SMACME) initiated a petition to decertify its bargaining group, a bargaining group comprised of management & confidential employees; and
WHEREAS, SMACME granted its request to decertify enabling their members the ability to represent themselves as a group in informal discussions with the City Manager over wages, hours, and other terms and conditions of employment; and
WHEREAS, in February 2024 , the City Manager entered into discussions with these unrepresented employees and assembled a wage and benefit package incorporated herein, that outlines and delineates the benefit structure for these employees consistent with other employee bargaining groups.
WHEREAS, Resolution Number 2022-64 established broadband classifications of Organizational Leader - Non Safety; Organizational Leader – Safety; Corporate/Executive Leader - Non Safety; and Corporate/Executive Leader – Safety; and
WHEREAS, Resolution Number 2024-22 established and changed the broadband classifications of Business Program Leaders to consist of Business Program Leader classifications which include Business Leader, Program Leader, and Administrative Leader; and
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, that the following shall replace the wage and benefit package approved for the non-represented management and confidential employees in January 2022:
Broadband Corporate/Executive Leader (Non-Safety) – classifications include City Manager, City Attorney, Assistant City Manager, Department Directors, Chief Human Resources Officer, and Chief Information Officer . Broadband Organizational Enterprise Leader – Assistant City Attorney, and Assistant Directors. Business Program Leader – classifications include Business Leader, Program Leader, and Administrative Leader.
1. SALARY
Effective at the beginning of the pay period following ratification of this Resolution by the City Council, a base salary increase of five percent (5.0%) of the employee’s base salary 2 will be given to all management and confidential employees in the employ of the City . If this agreement is ratified and adopted by the City Council by April 2, 2024, this increase shall be effective the first full pay period containing January 1, 2024.
Effective the first full pay period containing January 1, 2025, a base salary increases of five percent (5%) of the employee’s base salary will be given to all management and confidential employees in the employ of the City.
Accordingly, the aforementioned salary increase shall also be afforded to all Executive Managers on at -will employment contracts (City Manager, City Attorney, Department Directors) in the employ of the City upon adoption of this resolution.
2. SALARY SURVEY PROCEDURES
The salary survey shall include for comparison purposes, the “E” step or fifth step monthly salary. For purposes of preparing a salary survey for wage and benefit consideration, the City will add two-point six percent (2.6%) to the top step salary of the benchmarked management positions (for salary comparison purposes only), in recognition of the City reporting the employer paid members contribution (EPMC) benefit to CalPERS as special compensation. Notwithstanding this provision, said salary survey procedures shall not be interpreted to mandate the setting of salary and/or other forms of compensation at the level indicated in the salary survey.
Originally, the parties agreed to add an additional percentage of 3.97% for salary survey purposes until all surveyed CalPERS agencies have the EPMC benefit, however, due to Public Employee Pension Reform Act (PEPRA) legislation, the parties agree to reduce the percentage commensurately with the percentage of unit members in Tier I (as noted in the preceding paragraph).
3. BILINGUAL PAY (See CAM 93-2)
The City will pay bilingual differential of $55 per month for basic level skills and $100 per month for advanced level skills to eligible employees that are required by their department director to use both English and Spanish in communicating with the general public on a regular basis while performing the duties of his/her position. The City will pay $250 per month to eligible employees who are required by their department director to provide extensive written translations of Spanish to English and English to Spanish on a regular and frequent basis.
4. LONGEVITY PAY
Employees hired before July 1, 2011, and who have continuously been employed by the City will be provided with a six percent (6%) longevity pay.
5. EDUCATIONAL INCENTIVE PAY (See CAM 76-4)
Upon the approval of the City Manager, educational incentive pay shall be paid in addition to regular pay when education is in addition to the regular requirements of the job specifications and is work-related. An employee may not receive more than 5% in education 3 incentive pay. The City agrees to provide the following educational incentive pay upon date of hire.
A.A. Degree = 2.5%
B.A. Degree = 5%
M.A. Degree = 5%
6. CONSTRUCTIVE RECEIPT
Employees may receive a cash payment for unused vacation, personal leave and/or compensatory time provided they meet the requirements set forth in the applicable provision of the resolution and abide by the below.
Employees will have the option to declare their intent to cash-out accrued leave under the following conditions in accordance with Internal Revenue Code Section 451:
- Hours cashed-out shall be paid at straight time.
- By December 1 st of each year, employees can declare their intent to cash -out the leave (or a portion of the leave) they earn during the following payroll calendar year.
For example, elections made by December 1, 2024, shall apply to hours accrued in 2025.
- The employee can choose any pay period(s) during the year to receive the elected cash-out and must declare the selected pay period for cash -out at the time of election.
- Once an election is made it cannot be rescinded.
- The employee will be responsible for making sure the required number of hours to be cashed-out are available at the time of each cash -out. If an employee has not met the requirements, the employee will not be eligible for that cash -out during the year.
- Employees will be eligible for partial cash-outs if the full amount of hours elected are not available at the elected time of cash -out. For example, if an employee elects to cash-out 40 vacation hours during the first pay period in November but only 20 hours are available at that time, 20 hours would be cashed-out. - Employees will be required to complete the City’s standardized election form. - Failure to submit an irrevocable election form by December 1st of each year shall be the same as not electing to cash-out leave during the following payroll calendar year. -
7. OVERTIME (See CAM 76-7)
The Confidential Technician I/II, Confidential Office Clerk I/II, and Legal Office Specialist - Confidential shall be designated as non-exempt positions for the purposes of overtime.
These employees will receive hourly time and one-half pay or compensatory time off for each hour paid in excess of the forty (40) hour workweek. The maximum accumulation of compensatory time shall be 120 hours. No other compensation or benefits will be afforded to these employees in consideration for overtime.
8. MANAGEMENT LEAVE
Management leave is designed to recognize and compensate for work in excess of employee’s regularly scheduled workweek by exempt employees. Management leave is 4 not based on overtime hours worked on an hour-for-hour basis.
During the first payroll period of each new payroll calendar year, all eligible exempt employees shall be credited with a designated amount of management leave time (rounded to the nearest half-hour) to be used during that payroll calendar year. No portion of the management leave hours may be accumulated or rolled over from one payroll calendar year to another, and all unused management leave will automatically be erased from the books at the end of the payroll calendar year. For employees separating service or starting during the calendar year, management leave will be pro -rated (to the nearest half-hour) based on the number of full pay periods elapsed or remaining during the payroll year. If an employee, prior to separating service, used more management leave than the pro-rated amount for the payroll year, the excess used management leave will be deducted from vacation leave hours, then if needed, from the employee’s final paycheck without the necessity of the City securing a judgment. Accordingly, management leave is a “use it or lose it” benefit and no unused management leave will be cashed-out.
Broadband Corporate/Executive Leader (Non-Safety) that are on at -will employment contracts will receive eighty (80) hours of management leave.
The following classifications shall be placed in the second tier of the management leave program and receive sixty -four (64) hours of management leave per calendar year:
Broadband Organizational Enterprise Leader , Business Program Leader (Business Leader), Building Divi sion Manager, Chief Deputy City Clerk, Community Programs Manager, Fire Marshal, Organization/Enterprise Leader, Planning Division Manager, Principal Civil Engineer (attending Planning Commission), Senior Systems Analyst, Solid Waste Manager, Transit Services Manager, and Water Resources Manager.
All remaining full-time exempt classifications (including Business Program Leader (Program Leader and Administrative Leader) within the City's management structure shall be placed in the third tier of the program and receive thirty-two (32) hours of management leave per calendar year.
9. HOLIDAYS (See CAM 78-2)
For Full-time Employees: The City will recognize seven (7) (eight hour) holidays as fixed holidays: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, the day after Thanksgiving Day, and Christmas. Employees will be eligible to receive, on a pro-rated basis, six additional days [forty -eight (48) hours] of floating holiday time on the first pay period in the payroll calendar year to be scheduled off by formal request of each individual employee with the approval of the department director and/or City Manager.
Prior to the second to last ful l pay period in the payroll calendar year , employees are eligible to use and/or cash-out up to forty-eight (48) hours of floating holiday time on one occasion anytime during the (payroll) calendar year.
5 Any floating holiday hours remaining on the books after the second to last full pay period in the payroll calendar year will automatically be cashed -out and included in the last payroll check of the calendar year.
All employees separating service or starting during the calendar year, floating holidays will be pro -rated (rounded to the nearest half -hour) based on the number of full pay periods elapsed or remaining during the payroll year. If an employee, prior to separating service, used more floating holiday time than the pro -rated amount for the payroll year, the excess used floating holiday time will be deducted from vacation leave hours, then if needed, from the employee’s final paycheck without the necessity of the City securing a judgment.
10. MOVE-UP PAY (See CAM 77-3)
Up to a five percent (5%) differential in salary shall be allowed for those personnel who may be required to perform duties above their classification for forty (40) consecutive hours or more. If an employee is functioning in an acting department director capacity for more than the above stated timeframe, the employee may be placed at the appropriate step in the department director range to compensate him/her for the lengthy assignment, commensurate with the assignment as determined by the City Manager or h is/her designee. The employee working in a higher classification shall be compensated back to and including the first day that s/he works in the higher classification.
11. Special Assignment/Project Pay
Where employees, on a temporary basis, are assigned , by their department director, to perform a significant project outside the scope of their position, the City Manager may authorize payment not to exceed fifteen percent (15%) than the employee’s current salary. This shall not be in addition to the standard (5%) move-up pay.
The special assignment and/or project should connect individual achievement to organizational goals , which provides an incentive for their performance. The special assignment and/or project shall not change in any way an employee’s ability to meet the core expectations of his or her job. Unlike standard move -up pay, granting this pay shall be at the sole discretion of the City Manager.
12. TUITION REIMBURSEMENT (See CAM 76-4)
The City will reimburse employees up to $1,000 per calendar year for the cost of tuition and books if a grade of "C" or better is obtained for undergraduate, and "B" or better for post graduate work; or for ( Department Director approved) job-related courses taken on the employee's own time, that result in a course completion certificate issued a recognized training organization.
Receipts must be received by the City for processing within 60 days of course completion.
For those in the position of Senior Systems Analyst (SSA) the City will reimburse employees the fu ll cost of obtaining and maintaining the following certifications: Cisco (CCNA) network associate certificate, Microsoft Certified Systems Engineer (MCSE), and 6 Certified Information Systems Security Professional (CISSP). The SSA may request any further certificates that are directly job-related, current, and necessary; those requests will be reviewed and approved by the Chief Information Officer and the City Manager.
13. VACATIONS
With the exception of executive managers on at-will employment contracts and full-time management and/or confidential employees shall be entitled to take all vacation accrued to him/her after six months of employment.
Vacation accrual for full-time employees shall be as follows:
Years 0-5 6-9 10 11-19 20
Working
Days/Year
10 15
16 20
21 The maximum amount of vacation accumulation at any one time shall be 336 hours for full-time employees, and 416 hours of executive managers on at -will employment contracts. When an employee reaches the maximum allowable vacation credit, no additional vacation credit shall be accrued until the vacation balance is below the maximum.
During the calendar year, full-time employees performing at an acceptable or superior level are eligible to predesignate a cash-out or sell-back up to forty (40) hours of vacation time at straight time on two occasions anytime during the payroll calendar year, so long as they have (after said cash-out) a minimum vacation balance of at least forty (40) hours on the books. This cash -out benefit shall be made in accor dance with Section 7, Constructive Receipt.
The City will reinstate vacation accrual rates for previous years of service for former City employees who have completed 26 pay periods and probationary period (if applicable) after returning to City employment.
14. SICK LEAVE
Sick leave will be granted to employees when they are incapacitated for the performance of duties by sickness, injury, or for medical, dental , or optical examination or treatment, and a new full-time employee shall be eligible to use sick leave for bona fide illness as it is accumulated.
Full-time management and confidential employee s will accumulate 3.69 hours of sick leave per payroll period with no maximum accumulation.
An employee may use up to half of his/her annually accrued sick lea ve for family illness per California Labor Code 233 and 245.5 (4) (c) . Additional sick leave may be used for family illness upon approval through Human Resources.
7 Unused sick leave at time of retirement, for which there is no compensation or remuneration at all to the employee, will be converted to additional service credit at the rate of 0.004 years of service credit for each full day, i.e. , 250 days of sick leave for one additional year of service credit. Sick leave hours will be converted to days in the following manner: the unused hours of sick leave for which there is no compensation or remuneration will be divided by eight (8). Any fraction of a day will not be counted toward service credit. There is no limit on the amount of accumulated sick leav e that can be converted to service credit. PERS rules mandate that this benefit shall apply to members whose effective date of retirement is within four months of separation from employment and who retire after the effective date of this benefit in the ag ency's contract. For the purpose of reporting sick leave hours to PERS under the sick leave credit benefit option, sick leave hours shall be reduced only by the actual hours paid under the sick leave incentive program.
The City’s sick leave incentive pro gram shall compensate employees at the rate of 50 percent for all accrued sick leave beyond 480 hours to a maximum of 1,200 hours when the employee leaves City service upon regular retirement, disability retirement, or death.
The City shall retire an employee prior to the exhaustion of sick leave in conjunction with an industrial or non -industrial injury upon a determination that the employee's condition is permanent and stationary for disability retirement purposes. The employee's unused sick leave shall be compensated pursuant to the terms of the City's sick leave incentive program as described above. These provisions are intended to contravene Government Code Section 21025.2 insofar as it provides that an employee's disability retirement will not commence until all sick leave benefits are exhausted.
The City will reinstate unused sick leave balances for former City employees upon receiving documented proof from the employee as to the amount of sick leave that was unused at the time of separation for said former City employee who has returned to City employment and has completed his/her probationary period.
15. BEREAVEMENT
Up to five days (equating to: up to 40 hours) per incident may be used for family bereavement leave charged to any accrued leave bank. The term "family" in this section shall be defined as anyone per California Labor Code Section 245.5 (4) (c).
The above referenced bereavement leave will also apply to leave for reproductive loss event, defined as a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction. If an employee experiences more than one reproductive loss event within a 12 -month period, the employer is not obligated to gra nt a total amount of reproductive loss leave time in excess of 20 days within a 12 -month period.
8 16. RETIREMENT
Tier I employees:
The City will provide the CalPERS 2.7% @ 55 retirement benefit, based on the single highest year (one-year final compensation) retirement formula for employees hired before July 1, 2011 (Tier I employees) , with the City’s contribution to the employee’s share of retirement being eight percent (8%), and the City reporting to CalPERS the employer paid members contribution (EPMC) benefit as special compensation for retirement purposes.
Tier I Unit Members shall contribute a total of eight percent (8%) towards member contribution cost-sharing of the employer’s mandated CalPERS contribution, which shall be in accordance with Section 414(h)(2) of the Internal Revenue Code whereby the employee contributions shall be tax deferred.
Tier II employees:
For classic employees hired on or after July 1, 2011, (Tier II employees), the City will provide the 2% @ 55 CalPERS retirement benefit, based on the last 36 months of employment (three -year average highest compensation), and the employee shall be required to pay the entire members’ contribution plus two percent (2%) of the employer contribution.
Tier III (PEPRA) employees:
As defined under the Public Employee Pension Reform Act (PEPRA), miscellane ous “non-classic” employees (aka new members, or Tier III) hired after January 1, 2013, shall be covered under the CalPERS 2% @ 62 retirement benefit, based on the last 36 months of employment (three-year average highest compensation), and the employees shall pay fifty percent (50%) of the total “normal” cost of the benefit (as determined by CalPERS annually), through a payroll deduction. Eligibility for other benefits provided to classic employees under this Resolution through CalPERS (as stated above) shall be determined by the provisions of PEPRA for “non -classic employees” aka new members . Tier III employees will also pay two percent (2%) of the employer contribution.
The City will provide employees with the CalPERS Section 21024 Military Service Credit as a public service benefit; the CalPERS credit for unused sick leave benefit (see Section 11); the 1959 CalPERS Survivor Benefit Level 4 benefit; the Pre -Retirement Option 2W Death Benefit, Section 21548; and the Post-Retirement Survivors Allowance benefit.
17. DEFERRED RETIREMENT
For Full-Time Employees: The City will contribute $11.54 per pay period toward a 457 deferred compensation plan except the City Attorney and City Manager.
For the City Attorney and City Manager, the City agrees to provide an IRS approved 401(a) deferred compensation plan and will contribute two percent (2%) of salary per pay period toward the 401(a) plan for these two employees.
9 18. DISABILITY INSURANCE
Employees shall participate in the City's Short/Long-Term Disability (STD/LTD) Program and shall pay the entire premium themselves. STD/LTD benefits are equal to 66 2/3's percent of the first $8,000 of monthly earnings, minus the offset amounts from other benefits and other sources of income as described in the group policy schedule. The maximum monthly benefit will be $6,000 after a 30-day qualifying period.
19. MEDICAL INSURANCE
An employee shall be eligible for medical insurance upon his/her first day of employment.
The effective date of coverage may vary for new employees based upon whether or not the required premium (necessary to pay for the medical insurance) was deducted in the month prior to the benefit commencing.
The City currently provides employee medical insurance through the CalPERS Public Employees’ Medical and Hospital Care Act (PEMHCA). As a condition of participation in the PEMHCA plan, the CalPERS Board determines an annual Minimum Employer Contribution (MEC). The City will contribute the MEC as required by the PEMHCA per month per employee to be used solely toward City-sponsored employee medical benefits.
For 2024, the MEC is $157 per month.
In addition to the above stated contribution, effective the first full payroll period after ratification by the City Council, the City shall provide a pro-rated monthly optional medical insurance contribution regardless of the medical plan chosen, up to the amounts listed below at the times stated:
For Full-Time Employees:
Employee Only $642.44
Employee + one $1,441.88
Family $1,908.24
If this agreement is ratified and adopted by the City Council by April 2, 2024, these rates shall be effective retroactively the pay period in which deductions are made for January 2024
Effective the payroll period in which deductions are made for the January 2025 medical premium rates, the City shall increase its contributions to cover the increase in the cost for CalPERS Gold (all three tier levels) for the 2025 calendar year only.
The City shall provide a pro -rated cash-in-lieu option to those employees hired before February 4, 2017, who do not elect to participate in the PEMHCA medical insurance plan provided they are in compliance with the below evidence of coverage provision. If an employee is in a paid status , is eligible to not participate in the PEMHCA medical insurance plan and elects the pro -rated cash -in-lieu option, full-time employees will receive $518 on a monthly basis while on the City payroll. Employees hired on or after 10 February 4, 2017, will not be eligible for the cash -in-lieu option. Employees hired into a full-time position directly from a part-time capacity (in the employ of the City) and receive cash-in-lieu as a part-time employee will be eligible to receive the aforementioned cash- in-lieu as a full-time employee and vice versa.
To establish eligibility for the cash -in-lieu option, employees who do not elect to use the City-sponsored medical benefits shall provide evidence of major medical insurance coverage and sign a City provided form certifying that they have other continuing major medical insurance coverage in compliance with Federal and State law and regulations .
Once eligibility has been established, to maintain continued eligibility to receive the cash- in-lieu option employees shall provide said documents prior to January 31st on an annual basis, or as requested by the City. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The cash-in-lieu option shall no longer be payable if the employee and family members cease to be enrolled in other minimum essential coverage.
20. LIFE INSURANCE
The City will provide employees with life and accidental death and dismemberment insurance in the amount equal to one time their annual salary, up to a maximum of $150,000, upon his/her first day of employment. The employee will pay $0.53 bi -weekly for the above stated employee-only insurance benefit with the City paying the remainder of the premium.
21. DENTAL AND OPTICAL INSURANCE
Employees shall be eligible for dental and optical insurance upon his/her first day of employment, and the City shall pay the full cost of the monthly premiums for employee and family coverage. The dental benefit amount is $2,000 annually, and the City agree s to add posterior composite restoration to the current plan design.
22. POST EMPLOYMENT HEALTH PLAN
For Full -Time Employees : The City will contribute $ 100 per pay period per full -time employee toward a post-employment health plan.
In March 2024, an election was conducted, and it was concluded that upon ratification of this resolution, the 2024 and 202 5 calendar years , upon (any type of) separation , applicable accruals will be cashed out to the employee.
23. PERFORMANCE REVIEW INCREASES FOR EMPLOYEES WITHIN THE
BROADBAND ORGANIZATIONAL LEADER SALARY CLASSIFICATIONS
Increases for employees within a broadband Organizational Leader salary classification shall be governed by the following. (This section is not applicable to Executive managers [Department Directors] and Council-appointed managers [City Manager and City Attorney]):
I. Salary increases within the broadband range shall not be automatic but shall be granted only upon the affirmative recommendation of the appropriate department 11 director, including written certification that the employee's overall annual performance has been satisfactory or better.
II. Such salary increases shall be effective on the first day of the pay period in which the salary anniversary date occurs.
III. The percentage range of the salary increase shall be determined by the City Manager, in consultation with the Chief Human Resources/Organizational Development Officer, on an annual basis, and shall be communicated to the appropriate department director.
IV. Under exceptional circumstances, where rigid adherence to the percentage range for the salary increase could cause disruption to city operational issues or cause inequity, the City Manager, in consultation with the Chief Human Resources/Organizational Development Officer, could grant a salary increase outside of the percentage range for an eligible employee.
V. For the employee to be eligible for consideration under (IV) they must have an overall annual performance rating of Excellent or Outstanding.
24. PERFORMANCE BASED PAY (PBP) PROGRAM (See PBP Guidelines) Executive managers ( Department Director s) and Council -appointed managers (City Manager and City Attorney) are eligible to participate in the City’s Performance Based Pay Program. Employees in the Council-appointed group may receive a PBP incentive of up to ten percent (10%) of the employees’ annual salary. Employees in the executive group may receive a PBP incentive of up to three percent (3%) of the employee’s annual salary. All PBP incentives will be tied directly to job performance and criteria established by the City Manager’s Office and approved by the City Council.
25. PROBATIONARY PERIOD (See CAM 76-5)
With the exception of employees on an at -will employment contract, all original and promotional appointments shall be tentative and subject to a probationary period of twenty-six (26) pay periods of actual and continuous service.
26. LAYOFF (See CAM 79-2)
The Layoff Procedures for non -represented management and confidential employees shall be consistent with those of SEIU, Local 620.
27. DISASTER PREPAREDNESS TRAINING
When approved by the City Manager, management employees who are part of an established Red Cross Disaster Services Human Resources System will be eligible to receive a City match of paid leave time, up to a maximum of forty (40) working hours, when they use their own paid leave accruals when responding to a disaster outside the tri-county area.
28. SERVICE CLUB PARTICIPATION
City recognizes the desirability of representation in and before local civic organizations that meet in the City of Santa Maria and are a benefit to the community. The City also encourages participation of its executive managers and some designated division managers in said clubs (i.e. , Rotary, Kiwanis, Lions, etc.). In that regard, the City shall pay necessary expenses for dues and meals f or said participation. The City will not 12 reimburse employees for any service club -related fines or event costs (i.e. , ticket purchases, auction items, etc.).
29. ALTERNATIVE WORK SCHEDULE
Effective June 23, 2018, the City agreed to extend the 9/80 alternative workweek to full - time City personnel at the discretion of the Department Director. However, should adequate coverage or staffing become an issue in these above areas, the City retains the right to discontinue the alternative work schedule upon notice to the employees.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held on this 2nd day of April 2024.
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_________________________
City Attorney
APPROVED AS TO CONTENT:
_________________________
Interim Department Director
_________________________
Interim City Manager