CITY OF SIMI VALLEY
MEMORANDUM
April 3, 2023
TO: City Council
FROM: Office of the City Manager
SUBJECT: ADOPTION OF A RESOLUTION REVISING THE TERMS AND
CONDITIONS OF EMPLOYMENT FOR MANAGEMENT -DESIGNATED
EMPLOYEES
STAFF RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution No. 2023-13 (page 6) approving revisions related to the terms and conditions of employment for Management-designated employees.
BACKGROUND AND OVERVIEW
The City’s employees are currently divided into the following five groups for labor relations purposes: General Unit employees, Police Unit employees, Sworn Management employees, Confidential Management -designated employees and Management-designated employees. Management-designated employees are not represented by an employee organization. A proposed 27- month Management package for FY 2023- 24 and FY 2024- 25 has been developed and is hereby submitted for the City Council’s adoption.
The current resolution detailing benefits for the Management-designated employees will expire on June 30, 2023. City staff and Management employees have met , and in consideration of the policy goals communicated to the negotiating team by the City Council for this negotiation included recognizing employees’ commitment and dedication to the City and provide a compensation increase to address salary parity with other local jurisdictions to assist with the retention of current employees and recruitment of new employees. In accord ance with the adopted Polic ies and Procedures for Negotiations, the revised terms and conditions were presented to the City Council on March 20, 2023 to provide transparency and solicit public consideration and comment prior to final approval by the City C ouncil. As of the writing of this report, no public input has been received.
FINDINGS AND ALTERNATIVES
As a result of meeting with management representatives, revisions to the current compensation package are recommended and are hereby submitted for the City Council’s adoption. This new package is proposed to begin prior to the expiration of the current
AGENDA ITEM NO.
8C
2 resolution to provide for implementation of the salary increases as soon as possible for management designated employees. In pa st negotiations when the City was facing concerns with its CalPERS unfunded l iability, management employees worked with the City and agreed to no salary increases. Since then, the City has made positive strides, has a healthy budget, and is well positioned for future CalPERS payments, therefore staff recommends implementing the proposed salary increase during the first pay period following adoption by the City Council.
As a result of meeting with management representatives, the proposed resolution focuses on salary increases only and does not provide for any additional enhanced benefits.
Clarifying language was added, outdated language was removed, and current practices were updated.
• Term shall be effective from April 10, 2023 through June 30, 2025. • Effective upon the beginning of the first pay period following Council adoption, April 10, 2023, a cost of living adjustment (COLA) of 6% will be implemented for Management designated employees.
• Effective upon the first full pay period commencing with the anniversary in 2024, April 8, 2024, Management designated employees will receive a 4% cost of living adjustment (COLA) adjusting pay scales and corresponding pay rates for each affected employee, for a total COLA of 10% for the term of the resolution. • The Simi Flex amount will remain at the 2023 Plan Year levels with no adjustments during the term of the resolution.
The increases for Non- Sworn Management will be funded out of the following funds:
General, Housing Successor Agency, Library, Sanitation, Trans it, Water, and Workers’ Compensation. The table on the next page represents the cost to the City for each year of the agreement in salary and PERS.
3 The total cost of the agreement over two years is $2,063,980.94.
This resolution will apply to all Unrepresented Management employees, except for the seven positions that are identified as part of the City’s Negotiations team as described below. Therefore, this resolution applies to approximately 182 in the unrepresent ed Management group.
Beginning with the 2021 negotiation cycle, the City Council determined it would remove employees that are involved with bargaining on the City’s behalf from the Non- Represented Management group into its own unrepresented group of “Confidential Employees.” The goal of this action is to remove the perception of any self -dealing on behalf of the negotiating team members. Those positions include the City Manager, City Attorney, Administrative Services Director, Deputy Human Resources Di rector, Senior Assistant City Attorney, and Senior Human Resources Analyst. The positions previously included a Deputy City Manager, however the resolution is updated to remove the Deputy City Manager and add an Assistant City Manager. The positions will not be recipients of the package described in this report and are not included in the cost table above. The City Manager will present any package details and resolution for the Confidential Employees group at a later date to the City Council for consideration.
Effective January 1, 2017, Government Code (GC) Section 54953(c)(3) requires the City Council to orally report in open session a summary of the salary, salary schedules, and compensation in form of fringe benefits for local agency executives, before the City Council may take final action on such compensation. Local agency executives are Funding
Source
FY 2023-24 Inc. in
Salary
Inc. in
PERS
FY 2024-25 Inc. in
Salary
Inc. in
PERS
General
Fund (100)
$905,862.02 $814,774.82 $91,087.20 $640,142.50 $575,774.20 $64,368.29
Housing
Successor
(201)
$19,110.80 $17,158.51 $1,952.30 $13,504.97 $12,125.35 $1,379.62 Library
(250)
$6,359.47 $5,728.22 $631.25 $4,494.03 $4,047.94 $446.08 Sanitation
(700)
$116,797.03 $104,797.47 $11,817.56 $82,407.96 $74,056.88 $8,351.08 Transit
(750)
$51,997.57 $46,796.18 $5,201.39 $36,744.94 $33,069.30 $3,675.65 Water (761) $97,483.32 $87,721.61 $9,761.70 $68,888.21 $61,989.94 $6,898.27 Workers’
Comp (805)
$11,828.98 $10,650.54 $1,178.44 $8,359.14 $7,526.38 $832.76 Total $1,209,439.19 $1,087,627.35 $121,629.84 $854,541.75 $768,589.99 $85,951.75 4 defined as the chief executive officer, a deputy executive officer, or an assistant deputy officer; a department head; a person employed pursuant to an employment agreement (GC Section 3511.1).
T
he City of Simi Valley positions which meet the above definition include the following job titles: City Manager, City Attorney, Assistant City Manager, Deputy City Manager, Chief of Police, Public Works Director, Administrative Services Director, Environmental Services Director, and Community Services Director. The Community Services Director position is currently not funded and vacant. Salary ranges are set forth by resolution and retirement, health and leave benefits are provided consistent with the City’s management employees, except if specified otherwise in a particular employment agreement .
Consequently, the management employees’ resolution found in this report will affect the compensation and/or benefits of most individuals in these positions, unless they are in the Confidential Employees group as discussed earlier. Therefore, in accordance wit h Government Code requirements as set forth above, an oral reading of benefit changes affecting these personnel will be required prior to final action on the management resolution.
T
he following alternatives are available to the City Council:
1. A
dopt Resolution No. 2023-13 approving revisions to the terms and conditions of employment for Management-designated employees;
2. N
ot adopt the attached resolution and vote not to approve the changes to the current Management resolution with Management-designated employees;
3. P
rovide staff with other direction.
S
taff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I m ove to a dopt a resolutio n approving r evisions t o the t erms an d conditions o f employment for Management-designated employees.
[Begin Reading Oral Report]
“In accordance with Government Code Section 3511.1, a summary of t hese benefits for the various positions identified below is reported as follows:
For the positions of, Assistant City Manager (non- Confidential), Deputy City Manager (non-Confidential), City Clerk, Chief of Police, Public Works Director, Environmental Services Director, and Community Services Director, r evisions to pay ranges and compensation (unless spec ified under individual contracts), are as follows:
5 Effective April 10, 2023, a 6% cost of living adjustment that includes adjustments to pay ranges will be implemented.
Effective April 8, 2024, a 4% cost of living adjustment that includes adjustments to pay ranges will be implemented.
All other prior benefit levels remain the same.”
[End of Oral Report]
SUMMARY
A proposed two -year Management package for FY 2023- 24 and FY 2024- 25 has been developed and is hereby submitted for the City Council’s adoption. It is recommended that the City Council adopt Resolution No. 2023- 13 approving revisions related to the terms and conditions of employment for Management-designated employees.
____________________________________
Samantha Argabrite
Assistant City Manager
Prepared by: Samantha Argabrite, Assistant City Manager
INDEX Page
Resolution No. 2023-13 .................................................................... 6 Exhibit to the Proposed Resolution for
Management-designated Employees
RESOLUTION NO. 2023-13
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY ESTABLISHING TERMS AND CONDITIONS
OF EMPLOYMENT FOR MANAGEMENT -DESIGNATED
EMPLOYEES, AND REPEALING RESOLUTION NO. 2021 -
39 AND PREVIOUS RESOLUTIONS TO THE EXTENT THAT
THEY ARE IN CONFLICT HEREWITH
W
HEREAS, the City Council has reviewed the terms and conditions for Management-designated employees; and
W
HEREAS, the City Council desires to incorporate changes to such Management terms and conditions for the remainder of Fiscal Year 2022- 23 and Fiscal Years 2023-24 and 2024-25; and
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
S
ECTION 1 . The salary, benefits, and other terms and conditions of employment for Management -designated employees shall be as in Exhibit 1 attached hereto.
S
ECTION 2. All previous resolutions related to salary, benefits, and other terms and conditions of employment for Management-designated employees are hereby repealed to the extent that are in conflict with this resolution.
S
ECTION 3. The provisions of Exhibit 1 attached hereto shall be effective as of April 10, 2023, unless otherwise specifically indicated within Exhibit 1.
S
ECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED
and ADOPTED this 3rd day of April 2023.
A
ttest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
6 RES. NO. 2023-13
Approved as to Form: Approved as to Content:
David L. Caceres, City Attorney Brian Paul Gabler, City Manager
Samantha Argabrite
Assistant City Manager
7 1
EXHIBIT 1
1. Salary Compensation
a. The hourly salary ranges for Management -designated positions updated as of July 4, 2022 shall be as follows:
Job Title Hourly Salary Range
Accounting Projects Analyst $ 36.9911 - $ 47.4273
Accounting Specialist $ 29.7725 - $ 38.0429
Accounting Supervisor $ 41.2272 - $ 52.9348
Administrative Assistant $ 26.7020 - $ 34.0520
Administrative Officer $ 45.2460 - $ 58.1586
Assistant City Attorney $ 59.4678 - $ 76.6473
Assistant City Clerk $ 37.9132 - $ 49.2872
Assistant City Manager (non-Confidential) $ 71.2849 - $ 92.6706 Assistant Community Services Manager $ 30.6379 - $ 39.1685 Assistant Engineer $ 37.7847 - $ 48.4593
Assistant Planner $ 32.5092 - $ 41.6011
Assistant Public Works Director $ 65.1614 - $ 84.0487
Assistant to the City Manager $ 51.9026 - $ 64.3758
Assistant Waterworks Services Manager $ 41.3951 - $ 53.1771 Associate Engineer $ 39.8372 - $ 51.1516
Associate Planner $ 37.0523 - $ 47.5066
Budget & Administration Manager $ 43.7930 - $ 56.2373
Budget Officer $ 47.0199 - $ 60.4650
Chief of Police $ 91.9004 - $ 119.4702
City Clerk $ 53.3378 - $ 65.0857
City Engineer $ 59.3745 - $ 76.5265
Code Compliance Manager $ 43.0399 - $ 55.1252
Code Compliance Officer $ 30.2273 - $ 38.6347
Code Enforcement Supervisor $ 39.2520 - $ 50.3673
Communication Systems Coordinator $ 44.2391 - $ 56.8502 Communications Manager $ 41.9142 - $ 53.8276
Community Services Coordinator $ 34.6009 - $ 44.3204
Community Services Director $ 66.4347 $ 86.3652
Community Services Manager $ 41.2850 - $ 53.0095
Counter Technician (Hourly) $ 25.9400 - $ 33.0900
Crime Analysis and Prevention Manager $ 41.7488 - $ 53.5795 Crime Analyst $ 33.5012 - $ 42.8909
Cultural Arts Center Technical Coordinator $ 29.2145 - $ 37.3386 Customer Services Manager $ 41.9143 - $ 53.8276
Customer Services Supervisor $ 33.7475 - $ 43.3656
Deputy Administrative Services Director (Fiscal Services) $ 53.5703 - $ 68.9805 Deputy Administrative Services Director (Information Services) $ 59.8045 - $ 77.0846 Deputy Administrative Services Director (Support Services) $ 49.1223 - $ 63.1985 Deputy Building Official $ 44.7480 $ 57.5111
Deputy Building Official/Plan Check $ 49.2033 - $ 62.3034 Deputy City Attorney $ 49.1331 - $ 63.8730
Deputy City Clerk $ 26.7020 - $ 34.0520
8 2
Job Title Hourly Salary Range
Deputy City Manager $ 61.3946 - $ 79.1519
Deputy Community Services Director $ 53.3928 - $ 68.7502 Deputy Environmental Services Director $ 53.3928 - $ 68.7502 Deputy Environmental Services Director (Building Official) $ 54.5196 - $ 70.2142 Deputy Environmental Services Director (City Planner) $ 55.4632 - $ 71.4415 Deputy Director/Economic Development $ 56.8900 - $ 73.2964 Deputy Director/Housing & Special Projects $ 53.3928 - $ 68.7502 Deputy Director Police Administration & Communication $ 54.5813 - $ 70.2951 Deputy Director/Traffic Engineer $ 59.3745 - $ 76.5266
Deputy Human Resources Director $ 58.2201 - $ 75.0253
Deputy Public Works Director (Administration) $ 54.5813 - $ 70.2951 Deputy Public Works Director (Development Services) $ 54.1440 - $ 69.7265 Deputy Public Works Director (Environmental Compliance) $ 53.8488 - $ 69.3434 Deputy Public Works Director (Maintenance Services) $ 53.8488 - $ 69.3434 Deputy Public Works Director (Maintenance Services
Engineer) $ 54.1440 - $ 69.7265
Deputy Public Works Director (Sanitation Services) $ 53.8488 - $ 69.3434 Deputy Public Works Director (Transit) $ 53.3928 - $ 68.7502 Deputy Public Works Director (Waterworks Services) $ 53.8488 - $ 69.3434 Digital and Print Media Coordinator $ 36.2184 - $ 46.4232 Emergency Services Coordinator $ 36.2184 - $ 46.4232
Emergency Services Manager $ 41.7076 - $ 53.5594
Enterprise Systems Analyst $ 48.2117 - $ 62.0142
Environmental Compliance Program Analyst $ 34.8285 - $ 44.6162 Environmental Compliance Program Coordinator $ 39.2520 - $ 50.3673 Environmental Services Director $ 66.4181 - $ 86.3427
Executive Assistant $ 34.5559 - $ 44.2621
Fiscal Services Supervisor $ 29.7724 - $ 38.0429
GIS Coordinator $ 46.4514 - $ 59.6931
Home Rehabilitation Coordinator $ 34.7080 - $ 44.4596
Human Resources Analyst $ 37.0923 - $ 47.5594
Information Services Analyst I $ 37.1784 - $ 47.6718
Information Services Analyst II $ 40.3919 - $ 51.8476
Investigative Assistant $ 24.3780 - $ 31.1100
Laboratory Chemist $ 39.0464 - $ 50.0993
Laboratory Supervisor $ 42.9205 - $ 55.1357
Landscape Architect $ 46.1041 - $ 59.2748
Legal Administrative Assistant $ 27.9143 - $ 35.6281
Maintenance Superintendent $ 42.4813 - $ 54.5652
Maintenance Supervisor $ 34.4239 - $ 44.0896
Management Analyst $ 36.2184 $ 46.4232
Management Assistant $ 28.3292 - $ 36.1671
Payroll Coordinator $ 42.3242 $ 54.3583
Permit Services Coordinator $ 33.3332 $ 43.3373
Plant Maintenance Supervisor $ 37.1287 $ 47.6063
Plant Operations Manager $ 43.8568 $ 56.3530
Plant Operations Supervisor $ 37.1287 $ 47.6063
Plant Support Systems Manager $ 43.8568 - $ 56.3530
Police Communications & Records Manager $ 46.1057 - $ 59.2104
9 3
Job Title Hourly Salary Range
Police Maintenance Supervisor $ 31.6119 - $ 40.4350
Police Records Manager $ 37.9132 - $ 49.2873
Police Records Supervisor $ 33.5012 - $ 42.8909
Police Services Supervisor $ 31.7705 - $ 40.6407
Principal Engineer $ 54.1440 - $ 69.7265
Principal Information Services Analyst $ 48.5260 - $ 62.4230 Principal Planner/Zoning Administrator $ 48.3004 - $ 62.1300 Public Works Director $ 72.3771 - $ 94.0904
Risk Manager $ 47.0285 - $ 60.4759
Senior Accountant $ 41.4585 - $ 53.2350
Senior Administrative Officer $ 49.5392 - $ 63.7404
Senior Assistant City Attorney (non-Confidential) $ 65.3451 $ 84.2876 Senior Code Compliance Officer $ 34.4318 $ 44.1002
Senior Crime Analyst $ 41.7488 - $ 53.5795
Senior Engineer $ 47.2340 - $ 60.7433
Senior Human Resources Analyst (non-Confidential) $ 42.3242 - $ 54.3583 Senior Information Services Analyst $ 44.2391 - $ 56.8502 Senior Management Analyst $ 41.7076 - $ 53.5594
Senior Planner $ 42.2796 - $ 54.3019
Staff Accountant $ 36.4042 - $ 46.6655
Supervising Building Inspector $ 37.6823 - $ 48.3260
Supervising Public Works Inspector $ 37.6823 - $ 48.3260 Transit Finance Manager $ 41.2607 - $ 52.9782
Transit Operations Manager $ 41.7076 - $ 53.5594
Transit Supervisor $ 32.1397 - $ 41.1210
Treasury Officer $ 41.3111 - $ 53.0439
Utility Services Specialist $ 33.1386 - $ 42.4481
Wastewater Collection System Supervisor $ 34.4239 - $ 44.0896 Water Distribution Supervisor $ 37.6688 - $ 48.3085
Water Operations Supervisor $ 37.6688 - $ 48.3085
Water Field Services Supervisor $ 37.6688 - $ 48.3085
Workers' Compensation Adjuster I $ 28.3292 - $ 36.1671
Workers' Compensation Adjuster II $ 31.1623 - $ 39.7838 Workers' Compensation Manager $ 41.2242 - $ 52.9305
Workers' Compensation Supervisor $ 37.0923 - $ 47.5594
b. All employees in Management-designated positions shall be placed within the ranges in Section 1.a. of this Exhibit. Except as provided herein, the position within the salary range shall be determined by merit.
c. Executive Management shall be reviewed annually in July of each year, and Management Employees (all employees in Management -designated positions except for Executive Management, the City Manager and the City Attorney) shall be reviewed annually on their respective anniversary dates . Unless otherwise specified, Executive Management includes the titles of Assistant City Manager, Administrative Services Director , Chief of Police, Community Services Director (as of October 2020 Community Services is unfunded and vacant), Environmental Services Director and Public Works Director. The City's 10 4
merit pay policy shall generally provide for merit salary increases up to 5% (not to exceed the top of the established range for the position classification) on the employee's anniversary date, based on continued meritorious and efficient service. An additional 1% if it is within the range may be granted for exceptional service and work above and beyond the call of duty based on the City Manager approval.
d. Executive Management and Management Employees that are temporarily assigned to work in a n upgraded (higher level) position/classification for a limited duration ( not merely performing some additional duties of the higher - level classification) shall receive the minimum salary for the position to which assigned, or an additional 5.5% of the employee’s current salary, whichever is greater. In no case shall the adjusted salary be greater than the maximum salary for the position to which assignment has been made. Payment will be effective the first day of the temporary acting assignment, and the City will report to CalPERS the temporary upgrade/ acting pay as special compensation with the exception of New Members.
e. Effective April 10, 2023, a six percent (6%) cost of living increase (COLA) will be applied to all pay ranges and incumbents.
f. Effective April 8, 2024, a four percent (4%) cost of living increase will be applied to all pay ranges and incumbents.
2. Allowances
a. Mileage Allowance – Effective June 23, 2008, Executive Management shall receive a monthly mileage allowance in the amount of $400 (Chief of Police may receive vehicle in-lieu of allowance). The mileage allowance is granted in- lieu of mileage reimbursement for use of a personal vehicle on City business within the City. The City Manager and City Attorney have a mileage allowance provided as part of their employee agreement.
b. Uniform Allowance – Under the California Public Employees’ Retirement System regulations and definition of Special Compensation (2 CCR §571), uniform allowance is defined as compensation paid or the monetary value for the purchase, rental and/or maintenance of required clothing, including clothing made from specially designed protective fabrics, which is a ready substitute for personal attire the employee would otherwise have to acquire and maintain.
i. Effective July 1, 2002, the Chief of Police shall receive an annual uniform allowance of $1,600 payable in the second paycheck in November of each year. Such allowance shall be for maintenance and normal replacement of uniforms. With the exception of New Members, the City will report to CalPERS the uniform allowance as special compensation in the amount of $61.54 per pay period.
ii. With the exception of New Members, the City will report to CalPERS the uniform rental and/or maintenance cost (currently $7.74 paid biweekly) as 11 5
special compensation for those full -time management employees, defined below, required by the City to wear a uniform:
• Environmental Compliance Program Coordinator
• Laboratory Chemist
• Laboratory Supervisor
• Maintenance Superintendent
• Maintenance Supervisor
• Plant Maintenance Supervisor
• Plant Operations Supervisor
• Plant Support Systems Manager
• Wastewater Collection System Supervisor
• Water Distribution Supervisor
• Water Operations Supervisor
• Water Field Services Supervisor
3. Health Plans & Flexible Benefits Plan
Medical Insurance
Effective January 1, 2014, the City contract ed with the Public Employees’ Retirement System for medical insurance through the Public Employees Medical and Hospital Care Act (“PEMHCA”).
For employees enrolled in a CalPERS plan, the City shall pay the required statutory minimum on behalf of each employee. The minimum contribution will apply only toward the medical insurance premium for a CalPERS Health plan. If an employee chooses not to enroll in a CalPERS Health plan, the minimum contribution cannot be used for any other purpose.
If CalPERS changes any of the medical insurance plans by either adding to or deleting the plan options, employees will be limited to those plan options offered by CalPERS.
Dental and Vision Insurances
Effective as of the January 1, 2019 Plan Year, the City shall contribute up to $100.00 per month ($46.15 per pay period) for dental insurance.
Effective August 1, 2005, the City shall contribute up to $19.80 per month ($9.13 per pay period) for vision care insurance.
Contributions for part-time employees are prorated based on their part-time status (i.e., a 50% part -time employee will receive $50.00 per month for dental insurance and $9.90 per month of the City’s contribution toward vision care.)
For both Dental and Vision Insurances, the City’s contribution is split between the first and second paycheck of each month.
Simi Flex Dollars
12 6
In addition to the City’s payment of a portion of employees’ medical, dental, and vision insurance premiums as described above, eligible regular employees are provided with a flexible benefit plan package (Simi Flex dollars), which could be used by the employee to offset the cost of medical, dental, or vision insurance, or other optional benefits. The Simi Flex amount varies depending upon the employee group and the medical plan selected. Contributions for part -time employees are prorated based on their part-time status (i.e., a 50% part-time employee will receive half of the City’s Simi Flex contribution provided to a full-time employee.)
Maximum monthly Simi Flex amounts for employees who are enrolled in a City medical insurance plan are determined as follows:
Since there was an overall decrease in the average premium cost of the four (4) medical insurance plans with the highest enrollment from Plan Year 2021 to Plan Year 2022, the Base Simi Flex Amount in 2022 remains static and the results are shown in the table below:
2021 Simi Flex
Monthly Maximum
2022 Simi Flex
Monthly
Maximum
Management Employees
With Medical
Insurance* $2,202.18 $2,202.18
Without Medical
Insurance (Opt Out) $335.83 $335.83
Executive Management
With Medical
Insurance* $2,499.02 $2,499.02
Without Medical
Insurance (Opt Out) $632.66 $632.66
*After deducting the employee’s medical insurance out -of-pocket costs (premium less PEMHCA minimum employer medical insurance contribution), the remaining Simi Flex cash balance shall not exceed the Opt Out amounts shown above.
Effective for the January 1, 2023 Plan Year, the City’s contribution to the Flexible Benefit Plan (Simi Flex) will be increased, if necessary, by an amount equal to eighty percent (80%) of any premium increase in the average of the four (4) medical insurance plans with the highest enrollment above the existing 2022 premiums at the Family level.
For the 2023 Plan Year, the maximum monthly Simi Flex was $2,443.24 for Executive Management and $2,269.44 for Management. These maximum Simi Flex amounts will stay static for the 2024 and 2025 Plan Years.
13 7
4. Continuation of Health Plan Coverages
Effective August 1, 2001, employees who retire may elect to remain on the City’s dental and vision plans, at the premium rates, subject to the carriers’ terms.
5. Retiree Health Premium Coverage
The City shall contribute amounts for health premium coverage under the City's group health plans, for employees who retire from the City of Simi Valley after July 2, 1990 and were hired prior to June 21, 2010 (as designated below) . Employees hired on or after June 21, 2010, are not eligible to receive current retiree health insurance benefits (as designated below), but rather will receive a contribution in the amount of $200.00 per month during employment placed into a retiree health savings account or similar program. Employees hired June 20, 2010 or before are not subject to this provision upon promotion.
Effective June 21, 2010, eligible employees who retire from the City of Simi Valley may select one of the following options for health coverage:
Option One
The City shall contribute equal to employee-only coverage for up to $1,500 per month on the City's group health plan for up to 120 months (10 years) after the date of retirement for employees that served ten (10) years or more with the City pri or to retirement.
Option Two
The City shall contribute equal to employee-plus-one coverage up to $1,500 per month on the City's group health plan for up to 60 months (5 years) after the date of retirement for employees that served ten (10) years or more with the City prior to retirement.
Effective July 2, 2001, retiring eligible employees (hired prior to June 21, 2010) who have worked for the City for over twenty (20) years will be eligible for additional years of medical coverage. For every year worked for the City beyond twenty (20), the retiring employee will be eligible for an additional year of medical coverage under Option One or one-half year under Option Two.
Effective January 1, 2014, the City contract ed with the Public Employees’ Retirement System for medical insurance through the Public Employees Medical and Hospital Care Act (“PEMHCA”). All benefits shall be provided in accordance with PEMHCA regulations.
For retirees enrolled in a CalPERS plan, the City shall pay the required statutory minimum on behalf of each eligible retiree. The minimum contribution will apply only toward the medical insurance premium for a CalPERS Health plan. If a retiree chooses not to enroll in a CalPERS Health plan, the minimum contribution cannot be used for any other purpose.
14 8
If CalPERS changes any of the medical insurance plans by either adding to or deleting any of the plan options, retirees will be limited to those plan options offered by CalPERS.
CalPERS Health Plan Requirements for Retirees
:
In order to qualify for coverage under the City’s medical insurance plans in retirement, retirees must meet the following CalPERS Health Plan requirements, along with any additional requirements as dictated by CalPERS and applicable laws:
• Retire from the City of Simi Valley within 120 days of separation from employment;
• Be eligible for health benefits upon separation; and, • Receive a monthly CalPERS retirement allowance.
In the event of the death of a retiree, a surviving spouse is eligible for coverage under the City’s medical insurance plans so long as they continue to receive a pre-selected allocation of the retiree’s retirement allowance in place of the deceased retiree. The CalPERS Health Plan is tied to the CalPERS pension benefit, such that, if the surviving spouse does not receive the retiree’s retirement allowance (for example, the retiree selected Unmodified Allowance or Option 1 at the time of retirement), the surviving spouse will not be eligible for the City’s medical insurance plans upon the death of the retiree.
Sharing the City Medical Insurance Contribution with a Spouse :
Executive Management, the City Manager, City Attorney, Management Employees, and City Council Member retirees who have earned a City medical insurance contribution (as described in Section 5 Retiree Health Premium Coverage) can apply the City medical insurance contribution to cover a spouse for all or a portion of the earned period of time, so long as the retiree and the spouse continue to meet the CalPERS Health Plan requirements.
For example, if the retiree earned a City contribution towards medical insurance for a 10-year time period, the retiree may elect to apply the contribution to cover him/herself and a spouse for 2 years, and him/herself only for the remaining 6 years. The retiree must designate, at the time of retirement, how the City’s medical insurance contribution will be applied. Changes will not be permitted once the designation is complete. The retiree is required to be the insured on the medical plan; a spouse may not participate on the medical plan without the retiree, except in the event of death of the retiree as outlined below.
In the event of the death of a retiree, a surviving spouse, who meets the CalPERS Health Plan requirements, will continue receiving the City medical insurance contribution for the remainder of the earned period of time as elected by the retiree at the time of retirement, or until the spouse remarries, whichever occurs first.
15 9
Delay of City Medical Insurance Contribution:
Executive Management, the City Manager, City Attorney, Management Employees , and City Council Member retirees may elect to delay receiving the City medical insurance contribution for up to five years from their separation date so long as they meet the CalPERS Health Plan requirements. If the separated employee does not meet the CalPERS Health Plan requirements upon retirement, they will not be eligible for enrollment in the City’s medical insurance plans and will not qualify to receive the City retiree medical insurance contribution. Retirees may only enroll in the City’s health plans during an open enrollment period, which usually occurs in September/October each year as stipulated by CalPERS, with an effective date of January 1 of the following year. It is the retiree’s responsibility to enroll in a medical plan during an open enrollment period occurring prior to the deferment deadline in order to begin receiving the City medical insurance contribution. The City will not provide reminders or notices that the deferment period is ending. Retirees who do not enroll in a City medical plan prior to the end of the deferment period will not be eligible to receive any portion of the City medical insurance contribution.
6. Life Insurance
Employees shall be included in the group term life insurance under the terms of the City's policy. The City shall contribute an amo unt equal to the monthly premium amount for the designated amount of insurance including accidental death and dismemberment coverage and dependent life insurance.
The amount of accidental death and dismemberment life insurance coverage shall be $151,000 f or Executive Management and $101,000 for all other Management Employees, except for the City Manager and City Attorney. Life insurance coverage details for the City Manager and City Attorney are outlined in their respective employment agreements.
Effective July 2, 1990, the City shall provide coverage in the amount of $5,000 for the employee's spouse and eligible dependents as defined under the plan.
7. Short-Term/Long-Term Disability Insurance
Employees shall receive short-term and long-term disability insurance under the terms of the City’s policy. The short-term disability benefit begins on the 8th day of absence (or first day if the employee is hospitalized) and continues for 180 days (6 months).
The long-term disability policy begins on the 181st day. The City shall contribute an amount equal to the monthly premium for such coverage. Effective July 1, 2005 the monthly benefit for short-term and long-term disability shall be 66-2/3 percent of salary to a maximum monthly benefit of $9,500.
8. Public Employees' Retirement System
Employees shall be included as members in the Public Employees' Retirement System (PERS) under the provisions of the City's contract with PERS. The City shall pay according to the following provisions:
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Employees must participate in the retirement plan for at least five (5) years in order to be vested and eligible for retirement benefits. The minimum retirement age is fifty (50).
Effective November 5, 1993, the City amended its contract with the Public Employees' Retirement System to permit employees to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment.
Definition
“Classic Member” is defined by the California Public Employees’ Retirement System (CalPERS) as an employee who has been a member of any public employee retirement system or plan prior to January 1, 2013. An employee is considered a Classic Member if he or she does not meet the definition of a “New Member” as defined by Section 7522.04(f) of the California Government Code.
“New Member” is defined by Section 7522.04(f) of the California Government Code.
Generally, with limited exceptions, a New Member is an employee who is hired on or after January 1, 2013 by a public entity.
The City will provide the following defined benefits for employees:
Tier 1 Classic Member (Sworn) 3% @ 55 Hired prior to 1/1/2013 and reciprocal transfers
Tier 1 Classic Member
(Non-Sworn)
2% @ 55 Hired prior to 1/1/2013 and reciprocal
transfers
Tier 2 New Member (Sworn) 2.7% @ 57 Hired on or after 1/1/2013 Tier 2 New Member (Non-Sworn) 2% @ 62 Hired on or after 1/1/2013
Classic Tier 1 Summary of CalPERS Contract Provisions:
• One Year Final Compensation - Single Highest Year
• 4 th Level 1959 Survivor Benefits
• Pre-Retirement Optional Settlement 2 Death Benefit
• Military Service Credit as Prior Service
• Public Service Credit for Peace Corps or AmeriCorps Vista Service • Employer Paid Member Contributions (EPMC), currently three percent (3%) of the employee’s pensionable income for Non-Sworn Management is reported to CalPERS as special compensation.
Classic Tier 1 Non -Sworn Members shall contribute seven percent (7%) of total pensionable income to their CalPERS retirement plan, with four percent (4%) on the employee portion and three percent (3%) on the employer portion. EPMC will be reported to CalPERS as special compensation.
Classic Tier 1 Sworn Members (the Chief of Police) shall contribute nine percent (9%) of total pensionable income to their CalPERS retirement plan toward the member portion and three percent (3%) toward the employer portion for a total of twelve percent (12%).
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New Member Tier 2 Summary of CalPERS Contract Provisions:
• Three Year Final Compensation – Highest average annual final compensation during a consecutive 36-month period subject to cap
• 4 th Level 1959 Survivor Benefits
• Pre-Retirement Optional Settlement 2 Death Benefit
• Military Service Credit as Prior Service
• Public Service Credit for Peace Corps or AmeriCorps Vista Service
New Member Tier 2 employees are required to contribute at least 50% of the normal costs which are subject to changes on an annual basis based on actuarial analysis.
New Member Tier 2 Non-Sworn members shall contribute the PEPRA contribution rate as periodically updated by actuarial of total pensionable income to their CalPERS retirement plan, toward the member portion.
New Member Tier 2 Sworn members (the Chief of Police) shall contribute the PEPRA contribution rate as periodically updated by actuarial of total pensionable income to their CalPERS retirement plan, which is applied toward the member portion.
9. Annual Leave
Management Employees and Executive Management shall accumulate Annual Leave at the following rates:
Years of Continuous Service Effective 1/22/18
10 or more years
and all Executive Management
279.5 hours per year /
10.75 per pay period
5 or more years
267.54 hours per year /
10.29 per pay period
Less than 5 years
227.5 hours per year /
8.75 per pay period
Accruals shall be prorated for part-time employees and granted each pay period. The maximum accrual of Annual Leave for Management Employees and Executive Management shall be 800 hours. This accrual limit shall not apply to the positions of City Manager and City Attorney.
Conversion to Salary - Employees may convert Annual Leave accumulations to salary in accordance with the terms set forth below.
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 and who has a balance of 20 hours remaining after deduction of the hours subject to the cash out election.
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In addition, an employee must use forty (40) hours of accrued annual leave during the twelve (12) months immediately preceding the submission of the cash-out election.
For this purpose, “use” shall mean actually taking time off work and being paid annual leave pay for such time off.
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 235 hours (for employees with 5 or more years of service) and 209 hours (for employees with 1 – 4 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, 2021 shall apply to hours accrued in 2022.
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 date in November.
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 accrued in the current calendar year.
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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 e mployee’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.
10. Holidays
The following dates shall be considered as holidays for employees and are paid to the work schedule for that day. If the holiday is on the regular day off, then the holiday will be accrued at eight (8) hours:
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Day after Thanksgiving Day
Day before Christmas
Christmas Day
New Year’s Day
Martin Luther King, Jr. Day
President’s Day
Memorial Day
Holidays will be observed in accordance to the Management Employees’ Manual.
Whenever any of the listed holidays falls on Sunday, the holiday shall be observed by the City on the following Monday. Whenever any holiday falls on a Saturday, the preceding Friday shall be observed by the City as a holiday.
Floating Holiday
Effective with the January 15, 2016 pay check, and with the first January pay check of each year thereafter, an 8- hour floating holiday shall be added for use by all regular full-time employees. Regular part -time employees shall receive a pro- rated floating 20 14
holiday benefit based on their part -time status (i.e., a 50% part -time employee will receive 4 hours.) The floating holiday benefit may be used by employees in whole or in part at any time during the calendar year for which it is granted, however it may not be cashed out. Any part of the floating holiday benefit that is not used will expire at the end of the last pay period in the calendar year. The use of floating holidays is subject to the scheduling and approval provisions of Policy 27, Annual Leav e, in the Management Employees’ Manual.
11. Annual Physical
Executive Management may receive an annual physical examination at City expense not to exceed $300 beyond health benefits otherwise provided for physical examinations.
12. Tuition Reimbursement
Effective July 1, 2007, employees may receive reimbursement for tuition expenses as outlined in Policy 24, Training and Tuition Reimbursement, in the Management Employees’ Manual to a maximum of $1,600 per fiscal year.
13. 401(k) Plan
A 401(k) deferred compensation program is available to all employees. A Roth 401(k) option is also available.
Effective June 21, 2010, the City shall contribute to the City's 401(k) Plan the amount of $30.00 per bi -weekly pay period for Executive Management employees. Effective with the November 13, 2020 paycheck, the City will also contribute an amount equal to 100% of an Executive Management or Management E mployee’s pre-tax voluntary contribution to the 401(k) Plan up to a maximum amount of $92.31 per pay period ($200 per month).
14. 457 Plan
Effective July 1, 2002, employees shall be eligible to participate in the City’s 457 deferred compensation plan.
15. Substance Abuse Policy/Employee Assistance Program
The City shall continue a Substance Abuse Policy/Employee Assistance Program, applicable to all employees, in concert with the City's commitment to assur ing a drug and alcohol-free workplace.
16. Alternative Work Week
Effective June 29, 1992, an alternative 38- hour workweek option shall be made available to employees. The option will consist of a 9½ hours per day, four days per week schedule, with participation subject to City Manager review and approval.
Participants shall receive a salary reduction, to cover a pro- rated reduction in benefit cost (the reduction will be calculated at the time of request). 21 15
17. Disciplinary Action
Effective June 26, 2006, counseling memoranda and written reprimands that are at least three years old and any future counseling memoranda and written reprimands that become three years old, shall at the request of the employee be sealed. Sealed files will be temporarily removed from the employee’s file immediately prior to anyone inspecting the employee’s file, and can be reviewed only by the City Manager.
18. Sworn Management Educational Incentive
Effective December 28, 2015, employees in the classification of Chief of Police who have been awarded a Master of Arts or Science degree shall be eligible to apply for an educational incentive of seven percent (7%) of base salary after providing appropriate verification of a Master of Arts or Science degree.
19. Other Terms and Conditions of Employment
The remaining terms and conditions of employment for employees shall be as provided in the applicable sections of the Management Employees’ Manual or as determined by the City Manager.
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