CITY OF SIMI VALLEY
MEMORANDUM
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ebruary 14, 2022
TO
: City Council
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ROM: Office of the City Manager
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UBJECT: CONSIDERATION OF PROPSED REVISIONS TO THE TERMS AND
CONDITIONS TO THE MEMORANDUM OF UNDERSTANDING WITH
THE SIMI VALLEY POLICE MANAGERS ASSOCIATION
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ubsequent to the preparation of this staff report, the Simi Valley Police Managers Association requested to retain the language of the current Memorandum of Understanding (MOU) related to Annual Leave and implement Constructive Receipt in 2023. This change would modify Section 16. Annual Leave, Section 17. Compensatory Time, and Section 19. Holidays as shown in the MOU that was presented with the staff report. The language for these sections, as now proposed, is included in Attachment A.
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hould the Council agree to the proposed revision, the MOU in its entirely will be modified to incorporate the language as shown in Attachment A and presented for the City Council’s consideration for final adoption during the February 28, 2022 City Council meeting.
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_________________________________
Samantha Argabrite
Deputy City Manager
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repared by: Samantha Argabrite, Deputy City Manager
SUPPLEMENTAL
AGENDA ITEM NO.
8B
ATTACHMENT A
16. Annual Leave
20 10-41
Sworn Management employees shall accumulate Annual Leave at the following rates:
Years of
Continuous
Service
Effective First Pay
Period of
January 2019
5 or more years
273 hours
(10.5 per pay
period)
Less than 5
years
208 hours
(8 per pay period)
T
he maximum accumulation of Annual Leave for Sworn Management employees shall be 800 hours.
20 10-41, 2018-05, 2022-XX
Conversion to Salary (prior to 12-31-2022)
E
ffective June 26, 2006, Sworn Management employees may convert accumulated annual leave to salary compensation once per quarter up to a maximum of 580 hours per year.
Commented [SN1]: Deleted AL accrual columns that
are not currently active.
2 The City Manager or designee shall determine the dates for conversion of Annual Leave.
Watch Commanders shall be granted Annual Leave consideration separate from Patrol Sergeants.
2022-XX
Conversion to Salary (effective for 2023 calendar year) – Employees may convert
Annual Leave accumulations to salary in accordance with the terms set forth below. Annual Leave accumulations will be designated on SVPMA members’ pay check stubs in the “Annual Leave” category.
A. Eligibility.
This provision applies only to those employees with one or more years of service with the City as of the first working day of December in the year which the conversion is requested.
If an employee has not met the foregoing requirements, the employee will not be eligible to make a cash out election.
B. Cash Out Terms
.
Employees will have the opportunity to declare their intent to cash out annual leave that will accrue after the election in accordance with the following conditions:
1. No less than 8 hours and not more than 241 hours (for employees with 5 or more years of service) and 176 hours (for employees with less than 5 years of service) of annual leave may be converted to salary during a fiscal year.
2. By December 15 of each year, employees can declare their intent to cash out annual leave that they will earn during the following calendar year. Only annual leave hours accrued in the calendar year for which an election is made may be cashed out. Cash outs for annual leave hours accrued in a prior calendar year are not allowed. For example, elections made by December 15, 2022 shall apply to hours accrued in 2023.
3. There will be two pay out opportunities available to employees.
The first pay out date will be the first pay date in July, and the second pay out date will be the first pay day in November, unless mutually agreed to by the parties.
3 4. Once an election is made, it cannot be rescinded.
5. Cash out amounts will be based on the employee's base hourly rate of pay at the time of the pay out.
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 hours of Annual Leave, but only 20 hours are available, 20 hours would be cashed out.
Employees will be required to complete the City’s standardized Annual Leave Cash Out Form by December 15 of the calendar year prior to the calendar year in which the employee wishes to redeem annual leave hours for cash. Failure to submit an Annual Leave Cash Out Form with an irrevocable election by December 15 of each year shall be the same as not electing to cash out annual leave during the following calendar year.
Annual leave hours used for paid time off will be deducted first from annual leave hours accrued in prior calendar years, and last from annual leave hours accrue d in the current calendar year.
C. Exception – Unforeseeable Emergency
.
Employees who experience an unforeseeable emergency may elect to cash out annual leave hours, including hours that have accrued. For these purposes, “unforeseeable emergency” means a severe financial hardship to the employee resulting from an illness or accident of the employee, the employee’s spouse, or a dependent of the employee, loss of the employee’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the employee. The amount of the cash out shall be limited to the amount necessary to satisfy the unforeseeable emergency plus an amount necessary to pay taxes reasonably anticipated as a result of the cash-out.
Whether an occurrence is an unforeseeable emergency shall be determined by the City in its sole discretion.
D. Reopener
.
If it is subsequently determined by the City, the Internal Revenue Service, a court of competent jurisdiction or another governing authority that the leave redemption provisions in place prior to October 2021 or substantially similar, will not trigger constructive receipt of income from accrued leave, the union may, at its sole option, compel the City to reopen negotiations in order to restore the leave redemption provisions in place in October 2021 or something substantially similar that will not trigger constructive receipt of income from accrued leave.
4 Purchase of Annual Leave – SVPMA employees may convert salary compensation to Annual Leave at a rate of 1 hour of earned salary compensation for one hour of Annual Leave. Employee requests for such conversion shall be implemented each pay period. Employees shall be limited to a maximum annual conversion of 180 hours during each calendar year.
17. Compensatory Time
2010-41
Sworn Management employees may roll over compensatory time on an hour for hour basis, subject to the Chief of Police’s approval, to a maximum of 800 hours of annual leave.
Sworn Managers working in the capacity of Watch Commander who are called in early or required to work an extended shift will accrue compensatory time for each thirty (30) minutes worked. For Sworn Managers called back to work to handle a significant event, special event, major investigation or other police related activity, such employee will accrue compensatory time for each thirty minutes worked. 2020-47, 2021-XX
Sworn Managers may opt to be paid straight time overtime for each pay period instead of accruing the time to compensatory time or annual leave for each thirty (30) minutes worked.
19. Holidays
2015-71
Employees shall receive the following eleven (11) paid ten (10) hour holidays per calendar year, as well as any other days proclaimed by City Council as a public holiday:
1. January 1* – New Year’s Day
2. Third Monday in January – Dr. Martin Luther King, Jr. Day
3. Third Monday in February– President’s Day
4. Last Monday in May – Memorial Day
5 5. July 4* – Independence Day
6. First Monday in September – Labor Day
7. Veteran’s Day
8. Thanksgiving Day*
9. Day after Thanksgiving
10. December 24* – Christmas Eve
11. December 25* - Christmas Day
*Special Holiday Pay is applicable, as further described below.
Observance of Holidays – With the exception of Christmas Eve, when a holiday falls on Sunday, the holiday shall be observed by the City on the following Monday; When a holiday falls on a Saturday, the holiday shall be observed by the City on the preceding Friday.
Christmas Eve Holiday – If the December 24 Christmas Eve Holiday falls (1) on a Wednesday, then it will be observed on December 26; or (2) on a Friday, then it will be observed on December 23; or (3) on a Sunday, then it will be observed on December 22.
Holiday Benefit – Employees may either accrue ten (10) hours of annual leave, or be paid ten (10) hours to compensate for each holiday listed above. Each employee must indicate their selected payment method on their timesheet on the date the holiday is observed. Employees must select one payment method per holiday and may not split the ten (10) hours between the two payment methods.
Work on Holidays – With the exception of the Watch Commander, employees are generally required to observe City holidays. If an employee is required to work as determined by the Chief of Police or his/her designee, they may be paid straight time pay for hours worked on the observed holiday (or on the actual holiday for Watch Commander) in addition to their Holiday Benefit.
Special Holiday Pay – In addition to their regular pay, employees shall receive Special Holiday Pay equal to 50% of the employee’s regular rate of pay for hours worked on a holiday where Special Holiday Pay is applicable.
Employees may choose to receive Special Holiday Pay as annual leave accrual, or be paid.
6 Pensionable Holiday Pay – Additional compensation paid to employees for working on a holiday is not reported to CalPERS as pensionable compensation in all cases.
CalPERS applies state law when determining if holiday pay is pensionable or not.
State law defines pensionable holiday pay as additional compensation for employees who are
normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays. If these employees are paid over and above their normal monthly rate of pay (i.e., Special Holiday Pay, Holiday Benefit) for approved holidays, the additional compensation is reportable to CalPERS.
Employees who work on a holiday that occurs on the regular day off (RDO), or outside of their regular work schedule , may receive additional compensation for working on the holiday (over and above their normal monthly rate of pay) in accordance with the holiday pay guidelines in this section; however, such compensation is considered overtime because it exceeds the employee’s regular work schedule.
Overtime is not considered
pensionable and will not be reported to CalPERS as pensionable compensation.
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