CITY OF SIMI VALLEY
MEMORANDUM
J
une 24, 2024
TO
: City Council
F
ROM: Office of the City Manager (Human Resources)
S
UBJECT: ADOPTION OF A RESOLUTION APPOINTING SAMANTHA ARGABRITE
TO THE POSITION OF CITY MANAGER AND APPROVING AN
EMPLOYMENT AGREEMENT THAT ESTABLISHES SALARY AND
BENEFITS FOR THE POSITION OF CITY MANAGER
STAFF RECOMMENDATION
I
t is recommended that the City Council adopt Resolution 2024-32 (page 4) appointing Samantha Argabrite to the position of City M anager and approving an Employment Agreement (Exhibit A, to the resolution) that establishes salary and benefits for the position of City Manager.
BACKGROUND AND OVERVIEW
The C
ity retained the executive search firm of CPS HR Consulting to assist the City Council with the recruitment and selection process for the position of City Manager following City Manager Brian Gabler’s retirement announcement on January 8, 2024. The recruitment process resulted in a total of 70 applications being submitted. Following an interview and initial screening, five candidates were invited for an interview with the City Council. Following the interview, four candidates were asked to participate in interviews with City Department Directors and a panel of retired City Managers. The final step was a second interview with the City Council and Ms. Argabrite was selected as the top candidate and best suited for the position.
The
City Council authorized Mayor Thomas to negotiate an employment agreement with Ms. Argabrite. The end result of these negotiations is the attached agreement (page 6) which is currently being brought before the City Council for consideration, oral report, and approval. It should be noted that State law requires the reading on the record of the oral report.
AGENDA ITEM NO.
9D
2 FINDINGS AND ALTERNATIVES
Following a recent recruitment and selection process for City Manager, a Special Meeting was held on May 29, 2024, at which time Ms. Argabrite was appointed as the City Manager subject to negotiating the terms and conditions of an employment agreement.
Thereafter, Mayor Thomas at the direction of the City Council, engaged in negotiations with Ms. Argabrite. The City Council and Ms. Argabrite have now come to a tentative agreement regarding the terms and conditions of her appointment including salary and benefits.
The proposed A greement w ith Ms. A rgabrite calls f or an annual salary of $2 72,000 ($10,461.54 bi-weekly).
The City Manager position is a part of the Confidential Employee Group. Consequently, where the Employment Agreement provides benefits on the same basis to the City Manager as are provided to the confidential executive management employees of the City, those benefits shall be prov ided for as set forth in the Confidential Employ ees Group, Resolution No. 2023-24 (Attachment A, page 22) and any successor resolutions, except with additional specific benefit as follows: 1) a vehicle allowance of $500 per month, and the City shall further reimburse mileage at the IRS standar d mileage rate for any miles traveled outside of Ventura County for City business purposes; 2) life ins urance of $151,000, and 3) reimbursement for an annual physical of up to $500 per fiscal year.
Approval of the attached resolution and execution of the em ployment ag reement is necessary to formalize the appointment of Ms. Argabrite as the City Manager.
ORAL REPORT REQUIRED
E
ffective January 1, 2017, Government Code (GC) Section 54953(c)( 3) requires the City Council to orally report in open s ession a summary of the salary, s alary schedules, and compensation in the form of fringe benefits for local agenc y executives, before the City Council may take final action on such compensation. The position of City Manager is a “local agency executive” for whom such an oral report is required. Before tak ing action on this item, the following script should be read aloud by a City Council Member (a lternatively, it may be read by the City Clerk if requested by the City Council).
Oral Report “In accordance with Government Code Section 3511.1, a summary of the City Manager ’s salary and benefits is reported as follows:
The annual s
alary for the assignment of City Manager will be $272,000. The City Manager will also receive a monthly vehicle allowance of $500, and the City shall further reimburse mileage at the IRS standard mileage rate for any miles traveled outside Ventura County for City business purposes, a term life insurance policy of $151,000, and reimbursement for an annual physical of up to $500 per fiscal year.
3 Consistent with other Executive Management employees of the City of Simi Valley Confidential Employees Group, the City Manager is eligible for health benefits, vision, dental, life insurance, and comprehensive medical insurance. Other benefits include dependent life and disability insurance as well as workers’ compensation. Paid time off includes holidays, administrative leave, compensatory time off, and leave accruals on the same basis as other Confidential Executive M anagement employees. Further benefits include tuition reimbursement, Classic PERS Member Retiree benefits , tax -deferred savings plans, and retiree medical insurance. These benefits are set forth in detail in Resolution No. 2023-24 attached to this staff report”.
Th
e following alternatives are available to the City Council:
1. Af
ter reading of the Oral Report, adopt Resolution 2024– 32 appointing Samantha Argabrite as City Manager , effective July 1, 2024, approving the Employment Agreement containing the terms and conditions of the appointment including the salary and benefits in connection with the said appointment.
2. Provide staff with other direction.
St
aff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I mov
e to adopt R esolution 2024-32 appointing Samantha Argabrite as City Manager effective July 1, 2024, and approving the Employment Agreement containing the terms and conditions in connection with said appointment.
SUMMARY
Th
e City Council has completed the selection and negotiation process for the position of City Manager. The City Council authorized Mayor Thomas to negotiate a proposed employment agreement with Ms. Argabrite. It is recommended that the City Council adopt the attached resolution which finalizes the appointment of Samantha Argabrite as the new City Manager as well as approve an Employment Agreement. ______
___________________
Jennifer Gutierres
Deputy Human Resources Director
INDEX Page
Res
olution No. 2024-32 Appointing Samantha Argabrite to the Position of City Manager………………. ................................................................................... 4 Exhibit A - Employment Agreement ................................................................. 6 Attachment A - Resolution No. 2023-24 ............................................................... 22 4 RESOLUTION NO. 2024-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLE Y APPOINTING SAMANTHA ARGABRITE TO
THE POSITION OF CITY MANAGER AND APPROVING AN
EMPLOYMENT AGREEMENT ESTABLISHING SALARY
AND BENEFITS IN CONNECTION WITH SAID
APPOINTMENT
WHEREAS, the City Council of the City of Simi Valley desires to make an appointment to the position of City Manager;
WHE
REAS, pursuant to Government Code Section 36506, the City Council is required to establish the compensation of the City Manager by ordinance or resolution; and
WHEREAS, the City Council desires to set the compensation and other terms and conditions of employment for the position of City Manager and approve an employment agreement (“Employment Agreement”).
NOW,
THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY
DOES HEREBY RESOLVE AS FOLLOWS:
SECT
ION 1. Samantha Argabrite is hereby appointed to the position of City Manager at an annual salary of $272,000.
SECT
ION 2. The Employment Agreement attached as Exhibit A to the staff report accompanying this resolution is hereby approved.
SECT
ION 3 . Benefits and other forms of compensation for the City Manager shall be as specifically set forth in the Employment Agreement. Where the Employment Agreement provides benefits on the same basis to the City Manager as are provided to the confidential executive management employees of the City, those benefits shall be provided for as set forth in the Confidential Employees Group Resolution No. 2023-24 and any successor resolutions, except with additional specific benefits as follows: 1) a vehicle allowance of $500 per month, and City shall further reimburse mileage at the IRS standard mileage rate for any miles traveled outside of Ventura County for City business purposes; 2) life insurance of $151,000, and 3) reimbursement for an annual physical of up to $500 per fiscal year.
5 SECT
ION 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 a
nd ADOPTED this 24th day of June 2024.
Atte
st:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Appr
oved as to Form: Approved as to Content:
_________ ______________________
Algeria R. Ford, City Attorney Brian Paul Gabler, City Manager RES. NO. 2024-32
CITY O
F SIMI VALLEY
CITY MANAGER EMPLOYMENT AGREEMENT
This E
mployment Agreement (“Agreement”) is made by and between the City of Simi Valley, a Municipal Corporation (“Employer”) and Samantha Argabrite , an individual (“Employee”) pursuant to the terms and conditions contained herein.
Sect
ion 1. TERM & EFFECTIVE DATE
This A
greement shall commence on July 1, 2024 (the “Effective Date”) and shall continue for a period of five (5) years through June 30, 2029 (“the Term”), unless earlier terminated by Employer or Employee pursuant to the provisions contained herein. Thereafter, this Agreement shall automatically renew for successive periods of one (1) year indefinitely until terminated by Employer or Employee.
Sect
ion 2. DUTIES AND AUTHORITY
A. Employ
er agrees to employ Employee as the City Manager for the City of Simi Valley to perform the functions and duties specified in the Simi Valley Municipal Code, Section 2- 6.201 et seq. and/or ordinances, as well as such other legally permissible and proper duties and functions necessary to the position or as lawfully directed by the City Council from time to time, which shall at all times comply with all lawful governing body directives, state and federal law, Employer policies, rules and ordinances as they exist or may hereafter be amended. As City Manager, Employee shall act as the Chief Executive Officer of Employer.
B. It shal
l be the duty and right of Employee to hire, direct, assign, reassign, supervise, evaluate and/or terminate all of the employees of Employer, except for the City Attorney, consistent with Employer’s policies, ordinances, charter, state and federal law. It also shall be the duty of Employee to accept all resignations of employees of Employer consistent with the policies, ordinances, state and federal law, except for the resignation of Employee or the City Attorney, which must be accepted by the City Council.
C. It shal
l be the duty and right of Employee to organize, reorganize, arrange and/or direct the staff of Employer and to develop and establish internal regulations, rules and procedures which Employee deems necessary for the efficient and effective operation of Employer and consistent with all lawful directives, policies, ordinances, state and federal law.
D. Employ
ee shall perform the duties of City Manager of the Employer with reasonable care, diligence, skill, and expertise. Employee shall devote reasonable energy and productive time to the performance of his duties, except that Employee shall be entitled to establish an appropriate and reasonable work schedule. 6 EXHIBIT A
RES. NO. 2024-32
E. Employee shall be entitled to engage in all reasonable and lawful outside activities, so long as such activities do not interfere with the performance of Employee’s duties to Employer or pose a conflict of interest for Employer , subject to the approval of the Mayor of Simi Valley.
F. Employee shall attend, and shall be permitted to attend, all meetings of the City Council, both public and closed, with the exception of those closed meetings devoted to the subject of this Agreement or any amendment thereto, Employee’s evaluation or as otherwise required or precluded by applicable law or direction of City Council.
G. The City Council, individually and collectively, shall refer in a timely manner all substantive criticisms, complaints, concerns or suggestions from any source which are known to or should have been known by the City Council to Employee for review and/or appropriate action.
Section 3. COMPENSATION
A. Employer agrees to pay Employee an annual base salary of Two Hundred and Seventy-Two Thousand Dollars and No Cents ($272,000.00), payable in installments in accordance with the management payroll practices of Employer and/or as required by law.
B. At the discretion of the City Council, t his Agreement may be amended to incorporate any salary and/or benefits adjustments granted, provided or required by the City Council and/or Employer’s compensation policies on the same basis as applied to executive management employees of the City of Simi Valley.
C. Employer shall review Employee’s base salary on no less than an annual basis to consider a reasonable increase based upon such factors as market value, cost of living, performance, budget, City size, and any other relevant factors.
D. At any time du ring the term of the Agreement, Employer may, in its discretion, review and consider adjustments to the salary of the Employee, but in no event shall the Employee be paid less than the salary set forth in Section 3.A. of this Agreement except by mutual written agreement between Employee and Employer.
Such adjustments, if any, shall be made pursuant to a lawful action of the City Council. In such event, Employer and Employee agree to devote their best efforts and reasonable cooperation to execute a new or amended employment agreement incorporating the adjusted salary. For the purposes of California public employee compensation law, Employee’s compensation is considered indefinite with respect to the time period prior to any specific adjustment that may be approved by action of the City Council.
7 Section 4. BENEFITS
A. Employer agrees to provide and to pay the premiums for health, hospitalization, surgical, vision, dental and comprehensive medical insurance for Employee and Employee's dependents, equal to that which is provided to all other executive management employees of the City of Simi Valley. Employee agrees to pay the same employee co- payments, coinsurance, associated costs, contributions, and deductibles as other executive management employees of the City of Simi Valley covered by the Employer’s insurance benefits. Employee may elect to submit once per calendar year to a complete physical examination by a qualified physician selected by the Employee. Employee must utilize one of the health plans provided by Employer for the physical examination, which shall be the primary payor .
Employer will reimburse Employee for out of pocket costs such as co- payments incurred for the examination up to a maximum of $500 per fiscal year.
B. Employer agrees to put into force and to make required premium payments for short-term and long-term disability insurance coverage for Employee equal to that which is provided to all other executive management employees of the City of Simi Valley.
C. Employer shall procure and pay all premiums due for term life insuran ce for Employee that is the same as other executive management employees of the City of Simi Valley (currently $151,000). The employee shall name the beneficiary of the life insurance policy.
D. Upon the effective date of this Agreement, Employee shall retain Employee’s balance of Annual Leave hours in the amount Employee has accrued up to and including the day prior to the effective date of this Agreement. In addition, upon the effective date of this Agreement, Employee shall accrue Annual Leave consistent with an accrual rate for other executive management employees of the City of Simi Valley. The maximum accrual limit of 800 hours shall not apply to Employee.
Employee’s right to accrue, carryover, use, cash out and recover at termination accrued but unused Annual Leave shall be the same as other executive management employees and/or as required by applicable law.
E. Employee shall be entitled to the same holidays and holiday benefits as provided to other executive management employees of the City of Simi Valley.
F. Employer agrees to pay to Employee the sum of Five Hundred Dollars and No Cents ($500.00) per month as a vehicle allowance to be used by Employee to purchase, lease, own, insure, operate and/or maintain a vehicle of the Employee’s choosing. Employer shall reimburse Employee at the IRS standard mileage rate for any miles traveled outside of Ventura County by Employee for City business purposes.
8 Section 5. RETIREMENT
A. Employer agrees to continue and maintain Employee’s enrollment in the California Public Employees’ Retirement System (“CalPERS”) and shall make applicable contributions consistent with Employee’s continued employment and as required for other executive management employees of the City of Simi Valley and/or as required by applicable law.
B. Employee shall be entitled to participate in the Section 457 and 401(k) deferred compensation plan(s) consistent with other executive management employees of the City of S imi Valley , including matching contributions by Employer in any amount or percentage granted to other executive management employees of the City of Simi Valley, but in an amount no less than that provided to Employee in the year prior to the execution of this Agreement.
C. Employee shall provide a minimum of ninety (90) days’ advance written notice to Employer of Employee’s intent to retire from employment with Employer for the purposes of CalPERS. Upon Employee’s retirement for the purposes of CalPERS, Employee shall be entitled to all final pay, accrued and unused Annual Leave and any other employment compensation and benefits required by Employer policy or applicable law.
Section 6. BUSINESS EXPENSES
A. To the extent feasible, Employer agrees to budget and pay for professional dues, subscriptions and costs associated with Employee’s continued and full participation in national, regional, state, and local associations and organizations necessary to and/or desirable for Employee’s continued professional participation, growth and advancement, and/or for the good of Employer, subject to budget approval by the City Council.
B. To the extent feasible, Employer agrees to budget and pay for travel and subsistence expenses of Employee for professional and official travel, meetings and occasions to adequately continue the professional development of Employee and pursue necessary official functions for Employer, including but not limited to the ICMA Annual Conference, the California league of municipalities, and such other national, regional, state, and local governmental groups and committees in which Employee serves as a member or participant, subject to budget approval by the City Council.
C. Employer agrees to budget and pay for travel and subsistence expenses of Employee for courses, institutes and seminars necessary to Employee’s professional development and for the good of the Employer, subject to budget approval by the City Council.
9 D. Employer agreed to reimburse Employee for business expenses incurred by Employee for business purposes, including meals where Employer business may be discussed or conducted and participation in social events of various organizations when Employee attends as a representative of Employer. Such expenditures shall be subject to annual bud get constraints as well as state and Employer ethics and purchasing policies. The Administrative Services Director is authorized and directed to promptly reimburse such expenses to Employee upon receipt of Employee’s duly-executed expense or petty cash vouchers, receipts, statements or personal affidavits.
E. Employer agrees to reimburse Employee for Employee’s business use of a cell phone and cellular service at the same rate paid to other executive management employees of the City of Simi Valley.
Section 7. TERMINATION AND SEVERANCE PAY
A. Employee serves at the City Council’s pleasure and may be terminated at any time, with or without cause.
B. Except as otherwise provided in this Agreement, i f Employer terminates this Agreement without Cause, as determined by the affirmative votes of a majority of the members of the City Council at a Regular Meeting of the City Council, and if Employee signs, delivers to the City Council, and does not revoke, the Separation and Release Agreement in substantially the same form attached hereto as Exhibit A, Employer shall pay Employee a lump sum benefit equal to six (6) months of Employee’s then Base Salary, and shall provide six (6) months of health (medical, dental, and vision) benefits continuing under the benefit plans in which Employee and their dependents are then enrolled.
C. Should Employee be terminated for cause including, without limitation, the willful breach or habitual neglect of the duties that Employee is required to perform under the terms of this Agreement; conviction of any felony; conviction of any crime involving moral turpitude; or misappropriation of public funds; then, in that event, Employer has no obligation to pay any severance designated in this Section except benefits which are otherwise vested in Employee.
D. Upon any termination of this Employee’s employment, Employer will pay Employee upon the effective date of such termination, an amount equal to the value of the employee’s accumulated, but unpaid and unused Annual Leave in accordance with policies applicable to the executive management employees.
E. In the event Employer, at any time during the employment term, reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction of all Employer employees, or in the event Employer refuses, following written notice, to comply with any other provision benefiting 10 Employee herein, or Employee resigns following a formal written request by a majority of the City Council that they resign; then, in that event, Employee may, at their option, be deemed “terminated” at the time of such reduction, or after the next City Council meeting after such suggestion is made, in which case, Employee is entitled to be paid severance pay and receive the other severance benefits described in this Section.
F. In the event Employee voluntarily resigns their position with Employer before expiration of the aforesaid term of employment, Employee must give Employer a minimum of 30 calendar days prior written notice to the Mayor. In that event, Employee is not entitled to severance.
Section 8. PERFORMANCE EVALUATION
A. The City Council may evaluate Employee at any time and must provide a written evaluation of Employee’s performance on an annual basis (on or before the anniversary date of this Agreement).
B. For any such evaluation, a third- party consultant may be utilized to i nterview individual Council M embers regarding Employee’s performance and prepare a report for the entire City Council to use in evaluating Employee’s performance.
C. Employee’s evaluation shall at all times be conducted in Closed Session of the City Council and all documentation and/or discussions of Employee’s evaluation shall be considered confidential to the extent permitted by law. Nothing herein shall prohibit the Employer or Employee from sharing the content of the Employee’s evaluation with their respective legal counsel.
Section 9. INDEMNIFICATION
A. Employer must indemnify and defend Employee from any and all claims, demands, actions, losses, or charges arising out of, related to, or as a conseq uence of Employee performing the lawful duties as City Manager. Further, Employer must pay all expenses, costs and attorney’s fees arising out of or related to the same.
Note, Employee does not get to choose her own attorney and if she does, the Employer is under no obligation to cover such fees and costs.
B. The Parties agree that this Section will survive the termination of this Agreement and Employee’s employment. Employer’s obligations under this Section apply whether Employee is or is not employed by the Employer at the time any such claim, demand, action, loss or charge is made or occurs, as the case may be so long as the action giving rise to the claim occurred during the time Employee was employed by Employer.
11 C. Subject to applicable law , Employer shall pay Employee reasonable fees and costs, including without limitation consulting fees and travel expenses , when Employee is requested or required to serve as a witness, advisor or consultant to Employer regarding any legal, administrative or business matter.
D. Employer shall bear the full cost of any fidelity or other bonds required of Employee under any law or ordinance.
E. To the extent Employer provides: ( 1) paid leave to Employee pending an investigation; (2) funds for the legal or criminal defense of the Employee; and/or (3) a cash settlement to Employee related to the termination of the Employee , pursuant to this Agreement and Government Code Section 53243 et seq., Employee shall fully reimburse Employer for any and all such amounts paid by Employer in the event that Employee is convicted of a crime involving the abuse of their office or position as provided in Government Code Sections 53243 - 53243.4. This provision is required to be included in this Agreement under Government Code Section 53243.
Section 10. NOTICES
Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) to Employer :
c/o City Council, City of Simi Valley, 2929 Tapo Canyon Road, Simi Valley, CA 93063 ; (2) to Employee: Samantha Argabrite, at Employee’s current address on file with Human Resources. Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of perso nal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.
Section 11. ENTIRE CONTRACT
This Agreement contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any oral representations or modifications concerning this instrument will be of no force or effect excepting a subsequent modification in writing signed by Employer and Employee.
Section 12. BINDING EFFECT
This Agreement shall be binding on Employer and Employee as well as their respective heirs, agents, assigns, executors, representatives and successors in interest.
Section 13. PARTIAL INVALIDITY
Partial invalidity of this Agreement will not affect the remainder.
12 Section 14. BINDING EFFECT
This Agreement is binding upon and inures to the benefit of the parties and their successors, heirs, agents and personal representatives.
Section 15. Venue
This Agreement shall be governed and interpreted in accordance with the laws of the State of California, without regard to conflict of law principles. Venue shall lie in Ventura County.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of its Effective Date.
City of Simi Valley, a Municipal Corporation Samantha Argabrite, Employee
By: ________________________________
Fred Thomas
Mayor of the City of Simi Valley
Approved as to Form:
____________________________
Algeria R. Ford, City Attorney
13 EXHIBIT A
SEPARATION AND RELEASE AGREEMENT
This Separation, Severance and General Release Agreement (“AGREEMENT”) is made and executed as of _________
, by and between Samantha Argabrite (“EMPLOYEE”) and
the City of Simi Valley (“CITY”). The Parties agree as follows:
1. RECITALS
A. EMPLOYEE commenced employment with the CITY as City Manager on or about July 1, 2024. Pursuant to an employment agreement executed on or about June 24, 2024 (the “Employment Agreement”), the Parties agreed that EMPLOYEE would be paid a lump sum amount for severance if terminated for convenience and after executing this AGREEMENT.
B. This AGREEMENT is made to amicably resolve all matters between EMPLOYEE and the CITY regarding EMPLOYEE’s employment and the cessation of employment.
C. The parties understand and agree that a material purpose of this AGREEMENT is to resolve any disputes and CLAIMS arising from or relating to EMPLOYEE’s employment with CITY, if any, and provide for a separation payment for EMPLOYEE.
2. CONSIDERATION
A. In exchange for EMPLOYEE’S execution, faithful performance and compliance with this AGREEMENT including, without limitation, the granting of the releases set forth herein, and in full satisfact ion and settlement of EMPLOYEE’S CLAIMS, if any, City shall pay EMPLOYEE a lump sum benefit equal to six (6) months of EMPLOYEE’S then Base Salary, and shall provide six (6) months of health (medical, dental, and vision) benefits continuing under the benefit plans in which EMPLOYEE and their dependents are then enrolled (“SEVERANCE PAYMENT”) in the form of a check made payable to EMPLOYEE, to be delivered within 10 days of the EFFECTIVE DATE of this AGREEMENT. Required tax withholdings and deductions will be made from the SEVERANCE PAYMENT.
EMPLOYEE understands and agrees that the EMPLOYEE’S portion of any federal, state or local taxes, if any, that may be owed or payable on the SEVERANCE PAYMENT are the sole a nd exclusive responsibility of EMPLOYEE.
B. EMPLOYEE and the CITY will bear their own attorney fees and costs incurred in connection with any disputes and this AGREEMENT.
14 C. Except as otherwise provided, the parties agree that no other monies or benefits are due, owing or unpaid by reason of EMPLOYEE’s employment or association with CITY and that no other monies or benefits will be paid or maintained by CITY to/for EMPLOYEE, in EMPLOYEE’s name, or on EMPLOYEE’s behalf. EMPLOYEE expressly agrees that the SEVERANCE PAYMENT supersedes and is substitution for any payments or benefits under any employment agreement(s), business agreement(s) or arrangement(s), oral or written promises, or severance policy or plan respecting or regarding his employment or association with CITY.
3. RELEASE OF CLAIMS
: As consideration for the agreements described above,
EMPLOYEE releases and discharges CITY and/or any of its current or former officials, officers, executives, agents, assigns, executors, directors, representatives, affil iates, employees, attorneys, insurers and successor -in-interest, and all persons acting by, through, under or in concert with CITY, past or present, and each and all of them (collectively “Released Parties”), from any and all charges, complaints, lawsuits, claims, liabilities, claims for relief, obligations, promises, agreements, contracts, interests, controversies, injuries, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, liens, judgments, indebtedness, and expenses (including attorney’s fees and costs actually incurred), of any nature whatsoever, whether in law or in equity, KNOWN OR UNKNOWN, suspected or unsuspected, actual or potential, which EMPLOYEE now has, owns or holds, or claims to have, owns, or holds against each or any of the Released Parties, at common law or under any statute, rule, regulation, order or law, whether federal, state, or local, or on any grounds whatsoever, with respect to any act, omission, event, matter, claim, damage, loss, or injury arising out of the employment of and/or the termination of such employment between CITY and EMPLOYEE and/or with respect to any other claim, matter, or event arising before execution of this Agreement by the Parties, including, without limitation, claims under the California Fair Employment and Housing Act (California Government Code §12940 et seq.), the California Family Rights Act (California Government Code §12945.2, 19702.3 et seq.), California Government Code §11135, the Unruh and George Civil Rights Acts (California Civil Code §51 et seq.), the California Labor Code, including, but not limited to, all provisions of the California Labor Code section 1194 and any related Wage Orders or similar directives/authorities issued by any Federal or State authority having enforcement powers, Fair Labor Standards Act any related Wage Orders or similar directives/authorities issued by any Federal or State authority having enforcement powers, the Constitution of the United States, the Constitution of the State of California, T itle VII of the Civil Rights Act of 1964 (42 U.S.C. §2000e et seq.), the Equal Pay Act (29 U.S.C. §206(d)), the Rehabilitation Act of 1973 (29 U.S.C. §793 et seq.), the Family and Medical Leave Act (29 U.S.C. §2901 et seq.), the Employee Retirement Income Security Act of 1974, also known as “ERISA” (29 U.S.C. §1001 et seq.), and/or Sections 1981, 1983, 1985, 1986 or 1988 of Title 42 of the United States Code (42 U.S.C. 1981 et seq.), the Americans with Disabilities Act (42 U.S.C. §12101 et seq.), Claims of Retaliation (California Labor Code §1102.5 et seq.), Claims of “Whistle-blowing,” California Workers’ Compensation Act (Labor Code §3201 et seq.), claims for breach of any type of contract, including written, oral or implied contracts, breach of any covenant, promise, or representation pertaining to your 15 employment, whether express or implied, claims for negligent hiring, retention, supervision, investigation, wrongful termination, discrimination of any type, interference with economic relations, failure to pay wages and/or benefits of any kind, fraud and/or misrepresentation of any kind, negligent or intentional infliction of emotional distress, slander, assault, battery, and/or any other claims arising under any other state or federal provision, act, ordinance, Constitution, law, common law, or arising under any contract or agreement against CITY, or any other Released Party. EMPLOYEE also expressly releases any and all rights to grieve or otherwise appeal any matters relating to or arising from his employment with CITY.
EMPLOYEE also agrees that if any claim is prosecuted in EMPLOYEE’S name before any court or administrative agency that EMPLOYEE waives and agrees not to take any award of money or other damages from such suit.
Nothing prohibits or prevents EMPLOYEE from filing a charge with, or participating, testifying or assisting in, any EEOC or comparable administrative investigation, hearing or other proceeding before any federal, state or local agency.
However, EMPLOYEE ackn owledges and unders tands that EMPLOYEE is not entitled to recover any additional compensation, settlement funds, damages or money as a result of such participation.
Nothing in this Agreement may be construed as in any way altering or waiving (i) EMPLOYEE's right to be indemnified and defended by CITY pursuant to Paragraph 11 of the Employment Agreement, (ii) CITY's obligation to indemnify and defend EMPLOYEE pursuant to Section 9 of the Employment Agreement, or (iii) EMPLOYEE's right to enforce CITY's indemnity and defense obligations under Section 9 of the Employment Agreement.
EMPLOYEE further waives and relinquishes all rights and benefits EMPLOYEE may have under any other statutes or common law principles of similar effect.
4. SECTION 1542 WAIVER
: EMPLOYEE waives any and a ll rights or benefits which EMPLOYEE may have under the provisions of Civil Code § 1542, which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
5. SPECIFIC ACKNOWLEDGEMENT OF WAIVER OF CLAIMS UNDER ADEA AND OWBPA: The Age Discrimination in Emp loyment Act of 1967 (“ADEA”; 29 U.S.C. §§ 621-634) makes it illegal for an employer to discharge any individual or otherwise discriminate with respect to the nature and privileges of an individual’s employment on the basis that the individual is age forty or older. The Older Workers Benefit Protection 16 Act (“OWBPA”; 29 U.S.C. §§ 626, et seq.) augments the ADEA and prohibits the waiver of any right or claim under the ADEA unless the waiver is knowing and voluntary. By entering into this Agreement, EMPLOYEE acknowledges that, in exchange for the consideration stated herein, he knowingly and voluntarily waives and releases any rights that he may have under the ADEA and/or OWBPA. EMPLOYEE further acknowledges that he has been advised and understands, pursuant to the provisions of the ADEA and OWBPA that:
A. This waiver/release is written in a manner that EMPLOYEE understands.
B. EMPLOYEE is aware of, and has been advised to seek a representative or legal counsel of their own choosing regarding EMPLOYEE’S rights under the ADEA and OWBPA and the legal significance of EMPLOYEE’S waiver of any possible claims EMPLOYEE currently may have under the ADEA, OWBPA, or similar age discrimination laws.
C. EMPLOYEE is entitled to a reasonable time of at least 21 days within which to review and consider this Agreement, and the wai ver and release of any rights they may have under the ADEA, the OWBPA, or similar age discrimination laws. But EMPLOYEE may, in the exercise of their own discretion, sign or reject this Agreement at any time before the expiration of the 21 day period. If EMPLOYEE signs this Agreement before the expiration of the 21 day review period, EMPLOYEE waives the balance of that period.
D. The waivers and releases set forth in this Agreement do not apply to any rights or claims that may arise after the effective date of this Agreement.
E. EMPLOYEE is advised that they should consult with an attorney before executing this Agreement. EMPLOYEE had an opportunity to discuss this waiver and release with, and to be advised, by an attorney of their choice, and that EMPLOYEE does not need any additional time within which to review and consider this Agreement.
F. EMPLOYEE has until 5:00 p.m. PST, seven days following EMPLOYEE’S execution of this Agreement to revoke it by submitting a written revocation addressed to and received by Algeria R. Ford via email at [email protected].
G. This Agreement will not take effect until the Effective Date, which is the day after the expiration of the seven day revocation period set fort h in the preceding paragraph.
17 EMPLOYEE ACKNOWLEDGES THAT THEY FULLY UNDERSTANDS THEIR RIGHT
TO DISCUSS THIS WAIVER WITH LEGAL COUNSEL, THAT T HEY HAVE
CAREFULLY READ AND FULLY UNDERSTANDS THE WAIVER, AND THAT
EMPLOYEE IS VOLUNTARILY AGREEING TO WAIVE ANY CLAIMS THAT T HEY
HAVE OR MAY HAVE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT,
THE OLDER WORKERS BENEFIT PROTECTION ACT, AND ANY OTHER LAWS
PROHIBITING AGE DISCRIMINATION IN EMPLOYMENT ARISING FROM OR RELATED OR ATTRIBUTABLE TO THE PARTIES’ ALLEGATIONS OR CLAIMS.
__________________
EMPLOYEE’s initials
6. WAIVER OF ADDITIONAL CLAIMS.
EMPLOYEE and the CITY hereby waive any
provisions of state or federal law that might require a more detailed specification of the claims being released pursuant hereto.
7. REPRESENTATIONS AND WARRANTIES.
Each of the parties to this AGREEMENT
represent and warrant and agree with each other party as follows:
A. No Other Claims: EMPLOYEE and CITY represent and warrant that neither EMPLOYEE nor CITY filed, nor will they file in the future, any complaint, charge, claim, legal action, or proceeding arising out of EMPLOYEE’s employment with CITY, the DISPUTES or the CLAIMS released hereby or in any way related to EMPLOYEE’S employment with CITY or separation therefrom with any court, agency, board, hearing officer or tribunal against CITY or any of its agents, officers, current and former elected or appointed officials, current and former employees, representatives, insurers, attorneys, and all persons acting by, through, under, or in concert with any of the m. EMPLOYEE retains their right to request indemnification from CITY pursuant to Government Code § 825 et seq. with respect to any action brought against EMPLOYEE in their capacity as an employee, and to enforce EMPLOYEE’S right to indemnification and defense in accordance with Section 9 of the Employment Agreement.
B. No Fraud in Inducement : No party (nor any officer, agent, employee, representative, or attorney of or for any party) made any statement or representation or fai led to make any statement or representation to any other party regarding any fact relied upon in entering into this AGREEMENT, and neither party relies upon any statement, representation, omission or promise of any other party (or of any officer, agent, em ployee, representative, or attorney of or for any party) in executing this AGREEMENT, or in making the settlement provided for herein, except as expressly stated in this AGREEMENT.
C. Independent Investigation : Each party to this AGREEMENT made such investigation of the facts pertaining to this severance and settlement and 18 this AGREEMENT and all the matters pertaining hereto as it deems necessary.
D. Comprehension and Authority: Each party or responsible officer thereof has read this AGREEMENT and understands its contents. Any of the officers executing this AGREEMENT on behalf of the CITY are empowered to do so and thereby bind the entity.
E. Mistake Waived: In entering into this AGREEMENT and the severance and settlement provided for herein, each party assumes the risk of any misrepresentation, concealment or mistake. If any party should subsequently discover that any fact relied upon by it in entering into this AGREEMENT was untrue, or that any fact was concealed from it, or that its understanding of the facts or of the law was incorrect, such party is not entitled to rescind or set aside the AGREEMENT. This AGREEMENT is intended to be and is final and binding between the parties, regardless of any claims of misrepresentation, promise made without the intent to perform, concealment of fact, mistake of fact or law, or any other circumstance whatsoever.
F. Ownership of Claims : EMPLOYEE represents and warrants as a material term of this AGREEMENT that t hey have not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of the CLAIMS disposed of by this AGREEMENT. In executing this AGREEMENT, EMPLOYEE further represents and warrants that none of the CLAIMS released by EMPLOYEE hereunder will in the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity.
G. Future Cooperation: The parties will execute all such further and additional documents as shall be reasonable or necessary to carry out the provisions of this AGREEMENT.
8. MISCELLANEOUS
A. No Admission : Nothing in this AGREEMENT may be construed as an admission by the parties of any liability of any kind. The parties each deny any liability in connection with any claim or wrongdoing. Each party also intends hereby solely to amicably resolve all matters between the parties.
B. Governing Law: This AGREEMENT and the rights and obligations of the parties will be construed and enforced in accordance with, and governed by, the laws of the State of California. The venue for any dispute arising out of or relating to this AGREEMENT is the Ventura County Superior Court.
19 C. Full Integration: This AGREEMENT is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions. This AGREEMENT may be amended only by a further agreement in writing, signed by the parties hereto.
D. Continuing Benefit: This AGREEMENT is binding upon and inures to the benefit of the parties hereto, their respective agents, employees, representatives, officers, and officials.
E. Joint Drafting: Each party has cooperated in the drafting and preparation of this AGREEMENT. Hence, in any construction to be made of this AGREEMENT, the same may not be construed against any party.
F. Severability: In the event that any term, covenant, condition, provision or agreement contained in this AGREEMENT is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement and the remainder of this AGREEMENT will still be in full force and effect.
G. Titles: The titles included in this AGREEMENT are for reference only and are not part of the terms of this AGREEMENT, nor do they in any way modify the terms of this AGREEMENT.
H. Counterparts: This AGREEMENT may be executed in counterparts, and by facsimile and when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, constitutes one AGREEMENT, which shall be binding upon and effective as to all parties.
I. Executed Copy : All parties will receive a fully executed copy of this AGREEMENT.
20 J. Notice: Any and all notices given to any party under this AGREEMENT will be given as provided in this paragraph to the addresses on file with CITY.
All notices given to either party will be made by certified or registered United States mail, or personal delivery, at the noticing party’s discretion, and addressed to the parties as set forth below. Notices will be deemed, for all purposes, to have been given on the date of personal service or three consecutive calendar days following deposit of the same in the United States mail.
WHEREFORE, the parties hereto have read all of the foregoing, understand the same, and agree to all of the provisions contained herein.
DATED: CITY OF SIMI VALLEY
By:
Fred Thomas, Mayor
DATED:
By:
Samantha Argabrite, Employee
APPROVED AS TO FORM:
Algeria R. Ford, City Attorney
21 RESOLUTION NO. 2023-24
A RESO
LUTION 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
WHER
EAS, 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:
SECTI
ON 1 . The salary, benefits, and other terms and conditions of employment for Confidential-designated employees shall be as in Exhibit 1 attached hereto.
SECTI
ON 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.
SECTI
ON 3. The provisions of Exhibit 1 attached hereto shall be effective as of May 8, 2023, unless otherwise specifically indicated within Exhibit 1.
SECTI
ON 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 an
d ADOPTED this 1st day of May 2023.
Attes
t:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 22 ATTACHMENT A
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
2 DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 23 RES. NO. 2023-24
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. 2023-24 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 1
st day of May 2023, by the following vote of the City
Council:
AYES: Council Member s 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 DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E June 6, 2023
24 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 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'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.
4 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 25 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.
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
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 5 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 26 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 Confidential Executive Management and $2,269.44 for Confidential Management.
These maximum Simi Flex amounts will stay 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 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 6 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 27 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 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.
7 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 28 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 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 in the medical plan without the retiree, except in the event of d eath 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.
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 up on 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 pe riod, 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 d eferment period will not be eligible to receive any portion of the City medical insurance contribution.
8 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 29 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 a mount 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 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:
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 Cal ifornia 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.
9 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 30 The City will provide the following defined benefits for employees:
Tier 1 Classic Member
(Non-Sworn)
2% @ 55 Hired prior to 1/1/2013 and reciprocal
transfers
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
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
10 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 31 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.
11 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 32 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
12 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 33 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 f or 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 e mployees 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 expe nse 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 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).
13 RES. NO. 2023-24
DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 34 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.
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DocuSign Envelope ID: 8989DBE4-3A32-4446-8A98-20A0120A8E0E 35