TO:Andrew P. Powers, City Manager
FROM:Jeanette D. Green, Human Resources Director
DATE:July 8, 2025
SUBJECT: Benefits and Compensation for Executive Managers RECOMMENDATION:
1. Adopt resolution amending the benefits and compensation resolution for Executive Managers and rescinding Resolution No. 2024-026.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. The estimated annual total compensation proposed adjustments for Executive Managers is 3.92 percent in FY 2025-26 and
3.28 percent in FY 2026-27. Adequate funding of $142,254 in FY 2025-26 and $123,915 in FY 2026-27 is included in the Adopted FYs 2025-2027 Operating Budget (all funds) to cover the proposed cost adjustments.
BACKGROUND:
Executive Managers are not covered by a collective bargaining agreement or contract. Benefits and compensation for Executive Managers are established by resolution. The revised Comprehensive Benefits and Compensation Resolution for Executive Managers is within the authority provided by City Council for these unrepresented employees and is presented herein for adoption.
DISCUSSION/ANALYSIS:
The proposed adjustments to compensation and benefits align with the negotiated adjustments to the Senior Management Association Memorandum of Understanding (SMA MOU), unless otherwise noted below. Further, the proposed
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adjustments incorporate findings and recommendations from the Classification and Compensation study and market research.
Details of the proposed changes to the Executive Manager Benefits and Compensation Resolution (Attachment #1) are provided below.
Proposed Changes to the Executive Manager Benefits and Compensation Resolution
The resolution contains the following proposed revisions to compensation and benefits:
1. Salary Adjustment & Pay for Performance Merit Guide: Merit-based performance compensation adjustments will be made effective July 5, 2025, and July 4, 2026, which will range from a minimum of 0 percent to a maximum of 5.0 percent for exceptional performance. In addition to, and concurrent with, any merit- based adjustment for those employees who receive a performance rating of at least “good work,” there will be a non-merit-based 1.5 percent fixed salary adjustment effective July 5, 2025, and a non-merit-based 1.0 percent fixed salary adjustment effective July 4, 2026. No adjustments in salary will be provided which would result in employee salaries exceeding the 120 percent comparatio.
2. Administrative Leave: Adjustment from 40 hours to 80 hours annually to provide an additional 40 hours beyond the SMA Administrative Leave benefit. Addition of a proration schedule of administrative leave for new hires during the first year of employment based on date of hire.
3. Cafeteria Plan Adjustment: Cafeteria Plan contribution will be adjusted as follows:
Effective January 1, 2026:
•Employee plus one: Adjustment of $50, from $1,330 to $1,380 per month •Employee plus family: Adjustment of $300, from $1,330 to $1,630 per month Effective January 1, 2027:
•Employee plus one: Adjustment of $50, from $1,380 to $1,430 per month •Employee plus family: Adjustment of $100, from $1,630 to $1,730 per month Employee only coverage will remain at $1,765 for the entire two-year term.
4. Classification and Compensation Study Impacts: A new, market-responsive, and simplified compensation salary schedule that would decrease the overall number of pay grades per schedule but standardize the progression between each grade by 2.5 percent and slotting of positions into the new schedule based on Benefits and Compensation for Executive Managers
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market data and internal equity. Upon adoption of the new schedule, incumbents will be placed in the same comparatio they held in the old schedule.
5. Classification Range Adjustment: Effective July 4, 2026, there will be a 2.0% range adjustment for all classifications at the 100 percent comparatio midpoint.
6. Dental Plan Insurance: Effective January 1, 2026, increase coverage to provide occlusal guards (night guards) prescribed by a licensed dentist for the treatment of bruxism or temporomandibular joint (TMJ) disorders with lifetime maximum up to $500. Also increase orthodontic lifetime maximum from up to $1,500 per enrollee to $2,500 per enrollee.
7. Annual Leave Cashout: Effective January 1, 2026, employees shall be permitted to cash out up to a maximum of two hundred twenty (220) hours of accrued annual leave (an increase from 200) per calendar year administered in a manner consistent with IRS constructive receipt rules to ensure compliance with applicable tax laws. The cash-out includes an irrevocable election in December, and cash out up to twice per year.
8. Paid Parental Leave: Employees will be eligible for up to 80-hours of Paid Parental Leave per rolling 12-month period, in the twelve (12) months following the birth of an employee’s child (or multiple children as part of one birthing event) and/or to care for a newborn, and/or placement of a child with an employee in connection with the adoption or foster care of a child by an employee. Paid Parental Leave will be designated as Family and Medical Leave Act (FMLA)/ California Family Rights Act (CFRA) to the extent such time is available. Consistent with FMLA/CFRA provisions, an employee must be employed for at least twelve (12) months and have actually worked at least 1250 hours of service in the twelve (12) months immediately preceding the request for leave to be eligible for Paid Parental Leave. Paid Parental Leave must be used in a minimum duration of two weeks with at least thirty (30) days’ notice to the City.
9. Retiree Health Savings Plan: The plan will be amended to include the following changes: An annual City contribution of $1,000 will be made during the first pay period after July 1 each year to align with the SMA MOU. 2) The current requirement for employees to contribute 150–300 hours of unused annual leave (based on years of service) upon separation or retirement will be removed.
10. Relocation Reimbursement: The City may provide relocation reimbursement to a newly hired Executive Manager for moving expenses in an amount not to exceed $10,000 based on the employee's submission of actual invoices and paid receipts. The payment of relocation expenses would apply to Executive Manager positions only.
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11. Car Allowance: Set a car allowance cap at the current amount ($560) for Executive Managers and remove language adjusting the allowance by the Consumer Price Index annually.
In addition to the proposed salary and benefits adjustments with fiscal impacts outlined above, the resolution has been updated to reflect new covered positions, better align with applicable federal and state laws, clarify ambiguous language, remove outdated language, and streamline operations and administration. All recommended edits are shown as redlined changes in Attachment #1. Substantive proposed edits are outlined as follows:
1. Section 3 Classifications Covered: On January 28, 2025, City Council approved the City’s Information Technology Strategic Plan. A key initiative of the plan is to restructure IT from being a division within the Finance Department to a standalone, full-service Information Technology Department, with additional new IT positions in the upcoming two-year budget cycle. Consistent with current City policy and City Council budget authority, the decision to fill the position and assign responsibilities will rest with the City Manager. The proposed change would include the addition of a Chief Information Officer/Chief Technology Officer position in the list of classifications covered by the Executive Resolution and slot the position at pay grade 414.
2. Section 4 Salary: Clarifying language added under the Pay for Performance subsection stating that the City Manager will establish performance objectives for Executive Managers and deletion of the outdated Policy and Procedure subsection on the establishment of goals for Executive Managers. These revisions were made to provide greater flexibility to the City Manager in establishing performance objectives and better align with current practices. Further clarifying language was added to specify that the City Manager maintains discretion to develop policies and procedures governing salary adjustments for Executive Managers outside of pay for performance as recommended by the Human Resources Director to address compelling organizational needs, subject to available funding.
3. Section 14 Bereavement Leave: Added language to clarify that employees are entitled to five days of bereavement and to clarify that 3 of the 5 days are with pay if the employee must travel within the state. If traveling out of state, the employee would be entitled to 5 paid days. Added clarifying language that a reproductive loss is a qualifying event for bereavement leave and providing a definition of reproductive loss. These changes support the City’s compliance with recent changes in state law.
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
K. Prepare for transition of City workforce by ensuring that sufficient succession planning takes place to develop an employment base which is reflective of the community’s demographics.
Attachments:
Attachment #1 – Resolution
HRD:700-20 H:\COMMON\StaffReports\2025\070825 Exec Benefits and Comp Staff Report.docx