Staff Report — Simi Valley City Council, May 1, 2023

CITY OF SIMI VALLEY

MEMORANDUM
M
ay 1, 2023
TO
: City Council
F
ROM: Office of the City Manager
S
UBJECT: ADOPTION OF A RESOLUTION MODIFYING A JOB CLASSIFCATION

INCLUDED IN THE CONFIDENTIAL DESIGNATED EMPLOYEE GROUP

AND ADOPTION OF A RESOLUTION REVISING THE TERMS AND

CONDITIONS OF EMPLOYMENT FOR CO NFIDENTIAL-DESIGNATED

EMPLOYEES

STAFF RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution No. 2023-18 (page 5) to modify one of the job classifications included in the Confidential -designated employee group and adopt Resolution No. 2023-24 (page 7 ) approving revisions related to the terms and conditions of employment for Confidential-designated employees.

BACKGROUND AND OVERVIEW
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 was 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 Director, Deputy City Manager, a Senior Human Resources Analyst, and a Senior Assistant City Attorney. These seven positions were not recipients of the package provided to Management-D esignated Employees as outlined in Resolution No. 2023-13 (Attachment A, page 20) at the April 3, 2023 City Council Meeting.

In consideration of the policy goals communicated by the City Council for this negotiation which included addressing 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, staff brings forward the recommendation that the compensation, benefits and terms as those contained in Resolution No. 2023- 13 for the Management -designated group be similarly provided to the Confidential-designated group. In accordance with the adopted Policies and Procedures for Negotiations, the revised terms and conditions were presented to the City Council on April 10, 2023 to provide transparency and solicit public AGENDA ITEM NO.

8A
2 consideration and comment prior to final approval by the City Council. As of the writing of this report, no public input has been received.

Resolution No. 2023- 18 is also included for adoption to modify one of the job classifications included in the Confidential-designated employee group from Deputy City Manager to Assistant City Manager to capture the promotion that became effective as of January 2, 2023 . The Confidential -designated R esolution 2023- 24 will cap ture this modification as well as the modification previously adopted in Resolution No. 2022-3 8 as part of the FY 2022-23 Budget that adjusted the Assistant City Attorney pos ition to the Senior Assistant City Attorney classification.

FINDINGS AND ALTERNATIVES
The proposed compensation package is recommended and is hereby submitted for the City Council’s adoption, which is the same package provided to the Management - designated group and now contained in Resolution No. 2023-13, summarized below:
• T
erm shall be effective from May 8, 2023 through June 30, 2025. • Effective upon the beginning of the first pay period following City Council adoption, May 8, 2023, a cost of living adjustment (COLA) of 6% will be implemented .

Effective May 6, 2024, 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.

T
he increases for the Confidential Group will be entirely funded out of the General Fund.

The table below represents the cost to the City for each year of the agreement for salary and PERS.

General Fund FY 2023-24 FY 2024-25 Total
Salary $79,353.71 $56,076.62 $135,430.33
PERS $9,028.87 $6,380.40 $15,409.27
Total $88,382,58 $62,457.02 $150,839.60
E
ffective 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 defined as the chief executive of ficer, 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 and which pertain to the group of Confidential-designated employees include the following job titles: City Manager, City Attorney , Assistant City Manager (Confidential), and Administrative Services Director. Salary ranges are set forth by resolution and retirement, health and leave 3 benefits are provided consistent with the City’s management employees, except if specified otherwise in a particular employment agreement.

T
herefore, in accordance with 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 Confidential-designated employees’ resolution.

T
he following alternatives are available to the City Council:

1. A
dopt Resolution No. No. 2023-18 to modify one of the job classifications included in the Confidential-designated employee group;

2. A
dopt Resolution No. 2023-24 approving revisions to the terms and conditions of employment for Confidential-designated employees;

3. N
ot adopt the attached resolutions and vote not to approve the changes to the current resolution with Confidential-designated employees;

4. Provide staff with other direction.

S
taff recommends Alternative Nos.1 and 2.

SUGGESTED CITY COUNCIL MOTION
I mov
e to adopt R esolution No. 2023-18 deleting the Confidential designated classification of Deputy City Manager and related salary range, and adding the classification of Assistant City Manager and r elated salary range to the Confidential designated group;
I
also move to adopt a Reso lution approving revisions to the terms and conditions of employment for Confidential-designated employees.
[
Begin Reading Oral Report]
“
In accordance with Government Code Section 3511.1, a summary of these benefits for the various positions identified below is reported as follows:

Fo
r the positions of, City Manager, City Attorney, Assistant City Manager (Confidential), and Administrative Services Director, revisions to pay ranges and compensation (unless specified under individual contracts), are as follows:

E
ffective May 8, 2023, a 6% cost of living adjustment that includes adjustments to pay ranges will be implemented.

E
ffective May 6, 2024, a 4% cost of living adjustment that includes adjustments to pay ranges will be implemented.

A
ll other prior benefit levels remain the same.”
4 SUMMARY
A pr
oposed Confidential-designated employee package for FY 2023-24 and FY 2024-25 has been developed to mirror that which was approved for Management-designated employees on April 3, 2023 is hereby submitted for the City Council’s adoption. It is recommended that the City Council adopt attached Resolution No. 2023- 18 (page 5) approving modification to one of the job classifications included in the Confidential - designated employee group and adopt Resolution No. 2023-24 approving revisions to the terms and conditions of employment for Confidential-designated employees . ______
___________________
Brian P. Gabler
City Manager
INDEX Page
Res
olution No. 2023-18 .................................................................... 5 Resolution No. 2023-24 for Confidential-designated Employees ..... 7 Attachment A – Resolution No. 2023-13 for
Management-designated Employees .....................20 A
ttachment B – Guiding Principles, Policies, and Procedures For Negotiations with Recognized Employee
Organizations ....................................................... .38 RESOLUTION NO. 2023-18
A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY AMENDING RESOLUTION 2021- 50 TO

DELETE THE CONFIDENTIAL -DESIGNATED

CLASSIFICATION OF DEPUTY CITY MANAGER AND

RELATED SALARY RANGE, AND ADD THE

CONFIDENTIAL-DESIGNATED CLASSIFICATION OF

ASSISTANT CITY MANAGER AND RELATED SALARY
RANGE
W
HEREAS, the City Council previously adopted Resolution 2021- 50 to establish terms and conditions of employment for Confidential -designated employees; and
W
HEREAS, the incumbent carrying out duties on the City’s negotiation team promoted from Deputy City Manager to Assistant City Manager and due to that change the deletion of Deputy City Manager (Confidential) and the addition of Assistant City Manager (Confidential) and related salary range has been proposed; and W
HEREAS, the City Council finds and determines that it desires to amend Resolution 2021-50 to delete the Confidential-designated classification and related salary range of Deputy City Manager (Confidential) and add a Confidential -designated classification and related salary range of Assistant City Manager (Confidential) with an hourly salary range of $71.2849 to $92.6706.

W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:

S
ECTION 1. Exhi bit 1 of Resolution No. 2021- 50 is hereby amended to delete the classification of Deputy City Manager (Confidential) and related salary range and to add the classification of Assistant City Manager (Confidential) with an hourly salary range of $71.2849 to $92.6706.

S
ECTION 2. All other provisions of Resolution No. 2021-50, as previously amended by Resolution No. 2022-38, shall remain unchanged.

S
ECTION 3. The provisions of this resolution shall be effective retroactively to January 2, 2023.

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 1st day of May 2023.

A
ttest:
5 RES. NO. 2023-18

Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California

Approved as to Form: Approved as to Content:

David L. Caceres, City Attorney Brian Paul Gabler, City Manager

Samantha Argabrite
Assistant City Manager
6 RESOLUTION NO. 2023-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SIMI VALLEY ESTABLISHING TERMS AND CONDITIONS

OF EMPLOYMENT FOR CONFIDENTIAL-DESIGNATED
EMPLOYEES, AND REPEALING RESOLUTION NO. 2021 -
51 AND PREVIOUS RESOLUTIONS TO THE EXTENT THAT

THEY ARE IN CONFLICT HEREWITH

WHEREAS, the City Council has reviewed the terms and conditions for Confidential-designated employees; and

WHEREAS, the City Council desires to incorporate changes to such Confidential-designated employees’ terms and conditions for the remainder of Fiscal Year 2022-23 and Fiscal Years 2023-24 and 2024-25; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1
. The salary, benefits, and other terms and conditions of employment for Confidential-designated employees shall be as in Exhibit 1 attached hereto.

SECTION 2. All previous resolutions related to salary, benefits, and other terms and conditions of employment for Confidential-designated employees are hereby repealed to the extent that are in conflict with this resolution.

SECTION 3
. The provisions of Exhibit 1 attached hereto shall be effective as of May 8, 2023, unless otherwise specifically indicated within Exhibit 1.

SECTION

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 1st day of May 2023.

Attest:

Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California

7 RES. NO. 2023-24
Approved as to Form: Approved as to Content:

David L. Caceres, City Attorney Brian Paul Gabler, City Manager

Samantha Argabrite
Assistant City Manager
8 EXHIBIT 1

1. Salary Compensation
a. The hourly salary ranges for Confidential-designated positions updated as of July 4, 2022, shall be as follows:

Job Title Hourly Salary Range
Administrative Services Director $ 67.8811 - $ 88.2448
Assistant City Manager (Confidential) $ 71.2849 - $ 92.6706 City Attorney $ 93.8408 $ 121.9919
City Manager $ 117.0302 $ 140.4364
Deputy Human Resources Director $ 58.2201 - $ 75.0253
Senior Assistant City Attorney (Confidential) $ 65.3451 - $ 84.2876 Senior Human Resources Analyst (Confidential) $ 42.3242 - $ 54.3583 b. All employees in Confidential-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. Confidential Executive Management shall be reviewed annually in July of each year. Confidential Executive Management includes the titles of Assistant City Manager, and Administrative Services Director . Confidential Management Employees (all employees in Confidential Management-designated positions except for Confidential Executive Management, the City Manager, and the City Attorney) shall be reviewed annually on their respective anniversary dates. The City's merit pay policy shall generally provide for merit salary increase s 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's approval.
d. Employees that are temporarily assigned to work in an upgraded (higher level) position/classification for a limited duration (not merely performing some additional dutie s 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 May 8, 2023, a six percent (6%) cost of living increase (COLA) will be applied to all pay ranges and incumbents .
f. Effective May 6, 2024, a four percent (4%) cost of living increase will be applied to all pay ranges and incumbents.
9 2. Allowances

Mileage Allowance – Effective June 23, 2008, Confidential Executive Management shall receive a monthly mileage allowance in the amount of $400.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.

3. Health Plans & Flexible Benefits Plan

Medical Insurance
Effective January 1, 2014, the City contracted 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.

For both Dental and Vision Insurances, the City’s contribution is split between the first and second paycheck of each month.

Simi Flex Dollars

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 10 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:

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 P E MHCA minimum employer medical insurance contribution), the remaining Simi Flex cash balance shall not exceed the Opt-Out amounts show n 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 Confidential Executive Management and $2,269.44 for Confidential Management.

These maximum Simi Flex amounts will sta y static for the 2024 and 2025 Plan Years.

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 designat ed 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 11 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 prior 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 emplo yees 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.

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.
12 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 :

Employees 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 sp ouse 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 in 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 m eets 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.

Delay of City Medical Insurance Contribution:

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 pla ns 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 contributi on. 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.

13 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 amount 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 for Confidential Executive Management and $101,000 for all other Confidential 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 continue s for 180 days (6 months).

The long-term disability policy begin s 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:

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.

Definitions

“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.
14 The City will provide the following defined benefits for employees:

Tier 1 Classic Member
(Non-Sw orn)
2% @ 55 Hired prior to 1/1/2013 and reciprocal
transfers
Tier 2 New Member (Non-Sw orn) 2% @ 62 Hired on or after 1/1/2013

Classic Tier 1 Summary of CalPERS Contract Provisions :
 One Year Final Compensation - Single Highest Year
 4th 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 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 three percent (3%) reported to CalPERS as EPMC (special compensation) .

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
 4th 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, which is applied toward the member portion.

9. Annual Leave

Employees shall accumulate Annual Leave at the following rates:

Years of Continuous Service Effective 1/22/18

10 or more years
and all Confidential 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
Commented [SN1]: Employee share is 7 percent this year.

The employees should be paying 4 percent (plus any increase in the employee share) based on annual actuarials, plus the 3 percent on the employer portion. Employee share to increase to 7.34 percent for FY 23-24; so employee would pay 4.34 percent as well as 3 percent of employer share for a total of 7.34 percent in FY 23-24. 15 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 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.

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 in tent 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 w ill be based on the employee's base hourly rate of pay at the time of the pay out.
16 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 durin g the following cal endar 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.

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 o f 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 Confidential Employee Group, 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
17 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 with the Management Employees’ Manual.

Whenever any of the listed holidays fall 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 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 Leave, in the Management Employees’ Manual.

11. Annual Physical

Confidential 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 Reimbursem ent

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 Confidential Executive Management employees.

Effective with the November 13, 2020 paycheck, the City will also contribute an amount equal to 100% of a Confidential Executive Management or Confidential Management Employee’s pre-tax voluntary contribution to the 401(k) Plan up to a maximum amount of $92.31 per pay period ($200 per month).

18 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 assuring a drug and alcohol-free workplace.

16. Alternative Work Week

Effective June 29, 1992, an alternat ive 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, t o cover a pro -rated reduction in benefit cost (the reduction will be calculated at the time of request).

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. 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.
19 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
WHEREAS, the City Council has reviewed the terms and conditions for Management-designated employees; and
WHEREAS, 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

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The salary, benefits, and other terms and conditions of employment for Management-designated employees shall be as in Exhibit 1 attached hereto.

SECTION 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.

SECTION 3. The provisions of Exhibit 1 attached hereto shall be effective as of April 10, 2023, unless otherwise specifically indicated within Exhibit 1.

SECTION 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.

Attest:

Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California

ATTACHMENT A
20 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
2 21
RES. NO. 2023-1

CERTIFICATION
I, City Clerk of the City of Simi Valley, California, do hereby certify that the foregoing is a full, true, and correct copy of Resolution No. 2023-1 which was regularly introduced and adopted by the City Council of the City of Simi Valley, California, at a regular meeting thereof held on the 3 rd day of April 2023, by the following vote of the City Council:

AYES: Council Members Rhodes, Litster, Cavanaugh, Mayor Pro Tem Judge and Mayor Thomas
NAYS: None
ABSENT: None
ABSTAINED: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Simi Valley, California, dated _____________________.

Lucy Blanco
City Clerk
3 22
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
RES. NO. 2023-13
23 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 RES. NO. 2023-13
24 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 RES. NO. 2023-13
25 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 an 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 RES. NO. 2023-13
26 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 contracted with the Public Employees’ Retirement System for medical insurance through the Public Employees Medical and Hospital Care Act (“PEMHCA”).

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
RES. NO. 2023-13
27 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.

RES. NO. 2023-13
28 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 prior 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 January 1, 2014, the City contracted 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.

RES. NO. 2023-13
29 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:

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.

RES. NO. 2023-13
30 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 amount 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 for 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:

RES. NO. 2023-13
31 10
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).

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%).

RES. NO. 2023-13
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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 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.

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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:

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.

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.

RES. NO. 2023-13
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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 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.

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 RES. NO. 2023-13
35 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 Leave, 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 Employee’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 assuring 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).

RES. NO. 2023-13
36 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.

RES. NO. 2023-13
37 GUIDING PRINCIPLES FOR NEGOTIATIONS

WITH RECOGNIZED EMPLOYEE ORGANIZATIONS
PU
RPOSE. The City of Simi Valley values its employees and seeks to provide fair and equitable compensation for each employee group and classification. The following principles are established to guide adoption of compensation plans and contracts covering City employees.

GUIDING PRINCIPLES.
(1
.) Bargaining in Good Faith – The City renews its ongoing commitment to abide by the Meyers -Milias-Brown Act while developing strategies for long term fiscal stability. The City will negotiate in good faith, with the ultimate goal of ensuring long-term fiscal sustainability of employee salaries and benefits. (2.) Recruitment and Retention – The City’s compensation should, when economically feasible, be structured and provided at levels sufficient to recruit and retain qualified employees who are committed to providing the highest quality service to the community using compensation practices that are competitive with other comparable agencies.
(3.) Fiscal Sustainability – All compensation commitments must take into account the financial ability of the City and be consistent with the principles of fiscal sustainability. The City should be able to meet the cost of any compensation commitment from current and projected on- going City revenues. Contracts, including compensation commitments, should not contain embedded costs and obligations that are difficult for the public to understand/evaluate, or for the City to articulate and sustain long-term.
(4.) Transparency – Compensation for all City employees should be transparent to ensure full public disclosure of all elements of compensation, including all differential and incentive pay and all costs associated with health insurance, retirement, and other post -employment benefits. The City’s compensation structure should be simple and easily understood, and available online. (5.) Compliance with Laws – The City will ensure that its pay practices conform to the Fair Labor Standards Act (FLSA), abide by all requirements of the Meyers -Milias- Brown Act, and comply with other applicable State laws. (6.) Term of Agreement s – Generally, the City should seek to negotiate multi -year agreements with recognized employee organizations. However, the City when considering long-term agreements, salary formulae should be based on objective cost of living indicators.
(7.) Priorities – Levels of employee compensation should ensure the City’s long-term success in achieving its core mission, support the City’s ability to continue providing services, programs, and activities that align with the priorities of the public and the City Council, and be consistent with the interests and welfare of the public.
(8.) Management Rights – The City must maintain its management rights to supervise, manage, and direct its workforce. The City should not enter into agreements that contain unreasonable restrictions on the City’s current management rights. (9.) Flexibility – The City should recognize that flexibility may be necessary on the specific elements of the overall compensation package, provided that guiding principles are achieved within budget constraints.
38 ATTACHMENT B

POLICIES AND PROCEDURES FOR NEGOTIATIONS

WITH RECOGNIZED EMPLOYEE ORGANIZATIONS

PURPOSE. The purpose of this policies and procedures document is to set guidelines for staff and the City Council to ensure that all labor negotiations are conducted in good faith, to avoid actions that would hinder the City’s labor negotiation teams, and to provide timely and accurate information about the negotiations to the City Council and the public.

POLICIES AND PROCEDURES.

(1.) Prior to initiation of negotiations, a public meeting shall be held to allow members of the public the opportunity to provide comments on the City’s Guiding Principles, Policies and Procedures, and other labor negotiation recommendations. (2.) Pursuant to Section (3.)(M.) of Resolution 73 -79, the City Ma nager is the City’s Employee Relations Officer responsible for meeting and conferring in good faith with representatives of formally recognized employee organizations. The City Council may express its views to the City Manager but shall endeavor not to interfere with the execution by the City Manager of his or her authority to negotiate on behalf of the City.
(3.) Pursuant to the Meyers -Milias–Brown Act, all contract negotiations should take place at the bargaining table between the designated representatives of the City and the designated representatives of the various bargaining units. Both the City and the bargaining units have an obligation under applicable laws to negotiate in good faith and, in the spirit of good faith bargaining, should not bypass the negotiating teams.
(4.) Bargaining units should submit their proposals for changes to wages, benefits, terms, and conditions of employment no later than 90 days prior to expiration of the Memorandum of Understanding to encourage a timely conclusion of negotiations.
(5.) Nothing in this policy shall prohibit members of the City Council from listening to bargaining unit representatives or persons acting on their behalf. (6.) Nothing in this policy prohibits the City Manager from requesting the assistance of the City Attorney in carrying out the City Manager’s responsibilities as the Employee Relations Officer.
(7.) Authorization and direction to the City Manager on bargaining parameters shall be provided by the City Council in closed session. In order to retain the integrity of the negotiation process, closed session discussions must remain confidential. (8.) The City Manager shall have a duty to advise the City Council during agendized closed session meetings of offers, counteroffers, information, and/or statements of position discussed by employee organizations and City representatives participating in the bargaining process since the last agendized closed session. (9.) Each Council Member shall disclose publicly during open session, the identity of employee association representatives with whom the Council Member has had any verbal, written, electronic, or other communications regarding a subject matter of a pending meet and confer process.
(10.) Unless mutually agreed to by the City and the bargaining unit representatives, negotiation sessions shall remain confidential.
39 (11.) Upon impasse, the City Manager may provide periodic updates on the status of labor negotiations to the City Council in open session. (12.) Upon impasse, bargaining unit representatives or persons acting on their beh alf may comment on the City Manager’s open session labor negotiations status update. This shall be done during open session to ensure each of the Council Members receives the same information. The City Council may listen to these statements made in the public forum and may ask questions for clarification purposes, but shall not respond to the comments, or engage in dialogue or any other form of bargaining with the representatives.
(13.) Recognizing there is public interest in transparency regarding compensation practices, recommended labor agreements shall be made available for public review at least 72 hours prior to final approval of an agreement. (14.) The City shall ensure that all compensation packages are fully, accurately, and simply “costed out over time,” with total costs displayed to the public at the time of public review so the public has the opportunity to understand/evaluate the pay at issue.
(15.) The cost measurements shall display the fiscal impacts of the proposed compensation packages. The report shall include all benefit and or pay aspects of each memorandum of understanding.
(16.) Excepting the resolution of any meet and confer impasse, the rendering of a final City Council determination regarding adoption of a memorandum of understanding shall only be undertaken after the matter has been heard at a regular City Council meeting wherein the public has had the opportunity to review and comment on the matter.
(17.) For purposes of agendized closed session meetings outlined in Item 8 above, “information” shall mean salaries, salary schedules, compensation paid in the form of fringe benefits, the City’s available funds, and funding priorities for the purpose of reviewing the City’s position and instructing the City’s labor negotiating team. 40

Simi Valley City CouncilMay 1, 2023

Simi Valley City Council
May 1, 2023