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RES-11028 Classification Employment of Executive Directors & Top Management EmployeesRESOLUTION NO. 11028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE RELATING TO THE CLASSIFICATION, COMPENSATION, AND TERMS OF EMPLOYMENT OF EXECUTIVE DIRECTORS AND TOP MANAGEMENT EMPLOYEES, AND REPEALING RESOLUTION NO. 10946 AND AMENDMENTS THERETO. WHEREAS, the employees covered by this Resolution constitute management personnel; and WHEREAS, the City Council has consulted with the City Manager concerning the proposed employment terms contained herein; and WHEREAS, the City Council has determined that this Resolution shall set forth the wages, hours, and conditions of employment for the period of July 1, 2017 through June 30, 2018 for those management employees covered herein. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby adopts the wages, hours, and conditions of employment for the period of July 1, 2017 through June 30, 2018 for Executive Directors and Top Management Employees as follows: SECTION 1. BASIC COMPENSATION PLAN. There is hereby established a basic compensation plan for all executive directors and top management employees of the City of Orange who are now employed, or will in the future be employed in any of the classifications of employment listed in this Resolution and its attachments. Whenever the masculine gender is used in this Resolution, it shall be understood to include the feminine gender. Whenever the term "department head" is used, it shall be understood to include the City Manager when the personnel action affects a department head. SECTION 2. SALARY AND WAGE SCHEDULE. The monthly salaries for employees covered by this Resolution are hereby incorporated, and listed in Appendixes "A" and "B." The attached salary and wage schedules shall constitute the basic compensation plan consisting of six steps or rates of pay in each range. The City Manager reserves the right to grant an additional salary increase of up to 5.0% for any classifications described herein in Appendixes "A" or `B." Any such increases shall not exceed a total cost of 1% of payroll for Top Management employees. The respective ranges shall be identified by number and the steps by the letters "A" to "F" inclusive. The minimum length of service required for advancement to the next higher step, is provided in Section 5and6. A. Lump Sum Payment. Effective the pay period beginning November 12, 2017, employees shall receive a one -time lump -sum payment in accordance with the Schedule attached as Appendix "C ". 1) Only regular, full -time employees that are active (employed by the City) during the pay period that the lump -sum payment is made are eligible for such payments. Payments will be according to the classification the member is in at the time the lump -sum payment is made. Members in an acting position at the time of the lump -sum payment will receive the amount for their acting classification. SECTION 3. ADMINISTRATION OF BASIC COMPENSATION PLAN. The compensation ranges and steps contained in the attached salary schedule are monthly compensation rates. For all employees covered by this Resolution, the hourly rate of pay shall be the monthly rate multiplied by 12 divided by 2080 annual hours. In determining the hourly rate, compensation shall be calculated to the nearest one -half (%) cent. Part-time employees who are scheduled to work an average of at least 20 hours per week on a year - round basis may be considered for advancement to the next higher step upon completion of 2080 hours of employment. SECTION 4. BEGINNING RATES. Anew employee of the City shall be paid the rate shown in Step "A" in the range allocated to the class of employment for which he has been hired, except that on the request of the department head under whom the employee will serve, and with the authorization of the Human Resources Director, such employee may be placed in Step "B" through "F" depending upon the employee's qualifications. SECTION 5. SERVICE. The word "service," as used in this Resolution, shall be defined to mean continuous, full -time service in the employee's present classification, service in a higher classification, or service in a classification allocated to the same salary range and having generally similar duties and requirements. A lapse of service by any employee for a period of time longer than 30 days by reason of resignation or discharge shall serve to eliminate the accumulated length of service time of such employee for the purpose of this Resolution. Such employee re- entering the service of the City shall be considered as a new employee, except that he may, at the discretion of the City, be re- employed within one year and placed in the same salary step in the appropriate compensation range as he was at the time of the termination of employment. SECTION 6. ADVANCEMENT WITHIN SCHEDULE. The following regulations shall govern salary advancements within ranges: A. Merit Advancement. An employee may be considered for advancement through the applicable salary range upon completion of the minimum length of service. The effective date of such merit increase, if granted, shall be the first day of the next pay period following the completion of the length of service required for such advancement. Advancement through the salary ranges steps "A" through "F" may be granted only for continuous, meritorious, and efficient service, and continued improvement by the employee in the effective performance of the duties of his position. Such merit advancement shall require the following: 1) The department head shall file with the Human Resources Director a Personnel Action Form and a completed performance evaluation recommending the granting or denial of the merit increase and supporting such recommendation with specific reasons therefore. Disapproval from the Human Resources Director, together with the reasons therefore, shall be returned to the department head. 4 2) The recommendation of the department head and the approval of the Human Resources Director shall be forwarded to the Payroll Division of Finance for change of payroll status. 3) Advancements through the pay ranges Step "A" through Step "F ", shall occur, if granted, in yearly increments. 4) A lapse of service of 30 continuous calendar days or more for any reason shall extend the due date for the merit performance evaluation by an equal number of days absent. B. Special Merit Advancement. When an employee demonstrates exceptional ability and proficiency in the performance of his duties, the department head may recommend to the Human Resources Director that the employee be advanced to a higher pay step without regard to the minimum length of service requirements contained in this Resolution. With concurrence of the City Manager, the Human Resources Director may, on the basis of a department head's recommendation, approve and effect such an advancement. SECTION 7. REDUCTION IN SALARY STEPS. Any employee who is being paid on a salary step higher than Step "A" may be reduced by one or more steps upon the recommendation of the department head with the approval of the Human Resources Director. Such reduction shall take place only after the employee has been notified of the reasons and has had an opportunity to respond. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 6, and such employee may be considered for re- advancement under the same provisions as contained in Subsection A of Section 6. SECTION 8. SPECIAL ASSIGNMENTS. A. Bilingual Assignment. Employees covered by this Resolution may be assigned by the department head, with approval of the Human Resources Director, to a bilingual assignment. Employees on bilingual assignment shall receive an additional $140.00 per month, per employee, in addition to their regular monthly salary, for the duration of the assignment. Employees receiving Bilingual Assignment compensation may be required to take and pass a proficiency test on an annual or as needed basis as determined by the Human Resources Department. This form of special compensation, also referred to as Bilingual Premium," shall continue to be reported to CalPERS as special compensation, and therefore compensation eamable pursuant to California Public Employees' Retirement System Regulations, Section 571(a)(4). SECTION 9. INCENTIVE PAY PLAN. The City Manager may, for the employees covered by this Resolution, put into effect an incentive pay plan, the terms and conditions of which shall be at his full discretion. SECTION 10. PROMOTION. When an employee is promoted to a position in a higher classification, he may be assigned to the step in the new salary range which provides for at least a five percent (5 %) increase. With the approval of the department head and Human Resources Director, the employee may be placed in the step in the new salary range as will grant him an increase of at least one, but not more than three salary steps. 3 SECTION 11. DEMOTION. When an employee is demoted to a position in a lower classification, his salary rate shall be fixed in the appropriate salary range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one step. B. The new salary rate must be within the salary range for the classification to which the employee was demoted. SECTION 12. REASSIGNMENT OF COMPENSATION RANGES. Any employee who is employed in a classification which is assigned to a different pay range shall be retained in the same salary step in the new range as he has previously held in the prior range, and shall retain credit for length of service in such step toward advancement to the next higher step; provided, however: A. That if such retention results in the advancement of more than one step, the Human Resources Director may, at his discretion, at the time of reassignment, place the employee in a step which will result in an increase of only one step. B. That if the reassignment is to a lower compensation range, the "F" step of which is lower than the existing rate of pay at the time of reassignment, the employee shall continue to be paid at the existing rate of pay until such time as the position is reassigned to a compensation schedule which will allow for further salary advancement, or until such time as the employee is promoted to a position assigned to a higher compensation range. C. That if the reassignment is to a lower compensation range, the "F" step of which is higher than the existing rate of pay, the employee shall be placed in that step of the lower compensation range which is equivalent to the existing rate of pay, and shall retain credit for length of service previously acquired in such step toward advancement to the next higher step. If there is no equivalent step, the employee shall be placed in the step which is closest to, but not less than, his current salary step. SECTION 13. AT -WILL STATUS. Department heads and the Assistant City Manager, other than the City Attorney, serve at the pleasure of the City Manager, and consideration for advancement, reduction, demotion, termination, or reassignment shall be at the initiation of the City Manager and in accordance with the Orange Municipal Code. In addition, all employees covered by the Resolution are employed at -will and serve in accordance with Title 2 of the Orange Municipal Code. SECTION 14. CITY MANAGER AND CITY ATTORNEY. Except as amended by a written instrument formally approved by the City Council, the compensation and terms of employment of the City Manager and City Attorney shall be as set forth herein. SECTION 15. ADMINISTRATIVE LEAVE. Employees covered by this Resolution are exempt from Fair Labor Standards Act overtime provisions as executive, administrative, and professional employees. This Resolution establishes a pay system which provides all covered employees with sick leave and other leave which covered employees use for purposes of public accountability. However, the City will provide paid administrative leave as follows: A. Regular full -time employees identified in Appendix "A" shall accrue 63 hours of administrative leave annually for continuous service; 2 B. Regular full -time employees identified in Appendix "B" shall accrue 54 hours of administrative leave annually for continuous service; C. Effective January 1, 2018, regular full -time employees identified in Appendix "A" shall accrue 80 hours of administrative leave annually for continuous service; D. Effective January 1, 2018, Regular full -time employees identified in Appendix "B" shall accrue 63 hours of administrative leave annually for continuous service; E. Employees hired after January 1S of each year shall receive a prorated portion of the administrative leave during their first calendar year of employment; F. The minimum charge to the employee's administrative leave account shall be one - quarter (t /4) hour, while additional actual absence of over one - quarter ( hour shall be charged to the nearest one- half ('/2) hour; G. Usage of administrative leave shall be at the convenience of the City with the approval of the respective department head or City Manager; H. All administrative leave shall be accrued at the beginning of the pay period which includes January 1S of each year; I. Unused administrative leave at the end of the calendar year and upon retiring from City service and entering the Public Employees' Retirement System shall be deposited in the employee's Retirement Health Savings Plan account as described in Section 22C below; and J. Unused administrative leave upon separation for reasons other than retirement shall be forfeited. SECTION 16. HOLIDAYS. Employees covered by this Resolution shall receive the following paid nine (9) -hour holidays, except as provided in #9: 1) January 1S (New Year's Day) 2) The third Monday in February (President's Day) 3) Last Monday in May (Memorial Day) 4) July 4th (Independence Day) 5) First Monday in September (Labor Day) 6) November 1 ph (Veteran's Day) 7) Fourth Thursday in November (Thanksgiving Day) 8) Fourth Friday in November (Day after Thanksgiving) 9) One -half day before Christmas if December 24 Falls on a Monday through Thursday Christmas Eve; 4.5 hours) 10) December 25 (Christmas Day) A. Floatingg olidays. In addition to the above, employees will have credited to their paid leave balance 22.5 floating holiday hours beginning January 1S of each year. Employees hired after January 1 st of each year shall receive a prorated portion of the 22.5 floating holiday hours during their first calendar year of employment. The floating holiday hours shall be taken at the convenience of the City with the approval of the City Manager or the department head. Unused floating holiday hours at the end of the calendar year or upon separation from City service shall be deposited in the employee's Retirement Health Savings Plan account as described in Section 22C below. 5 B. Holidays on Certain Days of the Week. In the event any of the above holidays, except one- half day before Christmas, fall on a Sunday, the following day will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays fall on a Saturday, except one -half day before Christmas, the preceding Friday will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays falls on an employee's regularly scheduled day off during the week, except one -half day before Christmas, employees will be credited with nine (9) hours of holiday compensatory time. Accumulated holiday compensatory time must be used by the employee by June 30 of the same fiscal year in which it was accumulated. Unused holiday compensatory time shall be paid in cash to an employee upon separation of employment. C. Eligibility to Receive Holiday Pa. In order to be eligible to receive holiday pay, an employee must have worked, or be deemed to have worked because of an approved absence, the employee's regularly scheduled day before and regularly scheduled day after the holiday. Newly hired employees are provided with and are eligible to use floating holiday and fixed holiday hours, according to the guidelines established in this Section, and /or with approval of the Human Resources Director. D. Holidays During Vacation. Should one of the holidays listed above fall during an employee's vacation period while an employee is lawfully absent with pay, the employee shall receive holiday pay and no charge shall be made against the employee's accumulated vacation. SECTION 17. VACATIONS. A. Vacation Accrual. All full time regular employees described herein accrue paid vacation in accordance with the following schedules. 1) For employees described herein in Appendix "A ", as well as the City Manager, the following schedule shall apply: no Vacation Hours Vacation Hours Years Per Year Years Per Year 1 144 16 208 2 149 17 212 3 154 18 216 4 159 19 220 5 164 20 224 6 170 21 228 7 172 22 232 8 176 23 236 9 180 24 240 10 184 25 244 11 188 26 248 12 192 27 252 13 196 28 256 14 200 29 260 15 204 30 264 no 2) For employees described herein in Appendix "B ", the following schedule shall apply: After Year(s)Vacation Hours After Year(s)Vacation Hours of service Per Year of service Per Year 1 104 16 188 2 114 17 192 3 124 18 196 4 134 19 200 5 144 20 204 6 148 21 208 7 152 22 212 8 156 23 216 9 160 24 220 10 164 25 224 11 168 26 228 12 172 27 232 13 176 28 236 14 180 29 240 15 184 30 244 B. Vacation Usage and Accumulation. Vacation shall be taken at the convenience of the City with the approval of the department head. Where possible, such vacation should be taken annually and not accumulated from year to year. Employees shall not accumulate vacation in excess of the equivalent number of hours earned in the immediately preceding 24 -month period. Employees with less than one 1) year's continuous service shall accrue vacation but may not use vacation until successful completion of one (1) year's continuous service, except in the event of a City Hall holiday closure, with approval of the Human Resources Director. Employees whose accumulated vacation reaches the above - defined limit shall receive no additional vacation accrual until such time as the accumulated vacation hours fall below the allowable limit. C. Vacation Conversion. Effective July 1, 2017, an employee may convert up to 50% of his current annual vacation accrual into pay in lieu of time off with pay on an annual basis. An employee requesting such conversion must meet the eligibility requirements as set forth in Section 17 (A)(1)(2) and may convert twice in a fiscal year, within the cap provisions stated above. Any exception to this provision requires the approval of the Human Resources Director. D. Vacation Payout Upon Termination. Employees who terminate their employment with the City shall be paid for all accrued vacation, if any, and the prorated portion of their final accrual. Prorated vacation shall be on the basis of one - twelfth (1/12) of the employee's annual vacation pay for each full month of service. SECTION 18. PART -TIME, TEMPORARY, AND SEASONAL EMPLOYEES ELIGIBILITY FOR FRINGE BENEFITS. A. Definitions. Nothing contained herein shall guarantee to any employee a specified number of hours per day or days per week or weeks per year or months per year of work. 1) Regular part-time employees shall be those employees scheduled in the budget to work 20 or more hours per week on a year -round basis (52 weeks minus approved leave). 7 2) Temporary part-time employees shall be those employees scheduled in the budget to work less than 20 hours per week on a year -round basis (52 weeks minus approved leave). 3) Seasonal employees shall be those employees who are scheduled in the budget to work on less than a year -round basis regardless of hours worked. B. Entitlement to Fringe Benefits Based Upon Proration of Hours. Regular part-time employees shall receive fringe benefits in proportion to the number of hours an employee is scheduled in the budget to work to the normal 40 -hour week on an annual basis. The annual schedule for all eligible part-time employees shall be the schedule which is included in the City's approved budget or a schedule which is designated by Management at the commencement of the employee's employment with the City. This formula of proration shall apply to holiday pay, vacation, sick leave, flexible benefit contribution, disability insurance contribution, money purchase retirement plan, and PERS retirement contribution. Regular part-time employees may receive step increases provided they have performed 2080 hours of service. C. Temporary and seasonal employees shall be entitled to receive no fringe benefits provided for in the resolution or in any resolution of the City unless otherwise required by law. SECTION 19. LEAVES OF ABSENCE. A. Leave of Absence Without Pay. For all regular employees as described herein, the following Leave Without Pay procedure shall apply: 1) After all available leave benefits, including vacation, administrative leave, floating holiday, compensatory time, sick leave, and other leave benefits have been completely used, a regular employee, not under suspension, may make written application to the department head for leave without pay or benefits. No such leave will be considered absent a written application from the employee requesting leave. 2) If the department head and the Human Resources Director agree that such leave is merited and in the interest of the City, leave may be granted for a period not to exceed six (6) months following the date of expiration of all other allowable leave benefits. The employee shall not be continued "in service" as that term is defined in this Resolution. 3) No employment or fringe benefits such as sick leave, vacation, health insurance, retirement, or any other benefits shall accrue to any employee on leave of absence without pay except as denoted under the FCML section below. During such leave in excess of five (5) working days, no seniority shall be accumulated. 4) Subject to and consistent with the conditions of the group health, life or disability plan, coverage may be continued during a leave, provided direct Payment of the total premium by the employee is made through and as prescribed by the Payroll Division of the City. The City will pay up to six (6) months of the Flexible Benefit Plan contribution for employees who are on long term disability leave. 5) At the end of any approved leave, if the employee desires additional leave, written application must be made through the department head to the Human Resources Director at least ten (10) days before the end of the approved leave, stating the reasons why the additional leave is required and why it would be in the best interests of the City to grant such leave of absence. If such additional leave is merited and would still preserve the best interests of the City, the Human Resources Director may approve such extension of the leave of absence for a period up to, but not to exceed, an additional six months. 6) If the employee does not return to work prior to or at the end of such leave of absence or extension of leave of absence, the City shall consider that the employee has abandoned his employment with the City and shall be terminated. 7) An employee on leave of absence must give the City at least seven (7) days' written notice of his intent to return to work prior to returning to work. 8) Any employee who engages in outside employment during said leave of absence without prior notification and approval of the Human Resources Director and department head may be subject to termination. 9) Any employee who falsifies the reason for the request for said leave of absence may be terminated. 10) Such leave shall be granted on the same basis for pregnancy, childbirth, and other medically related conditions, except that such an employee shall retain his /her seniority rights. 11) Forms setting forth the benefits available or such other pertinent information shall be maintained for distribution in the Human Resources Department. B. Jury Duty and Services as Witness for City. When required to serve on a jury, all employees shall be provided with paid time off for a period of actual service required on the jury, provided all jury fees paid to the individual employee, less allowed automobile expenses, are turned over to the City. Once an employee has completed his jury service, he must provide the Certificate of Jury Service to his immediate supervisor to qualify for jury duty compensation. If an employee is called as a witness on behalf of the City, he shall receive his normal pay for the time spent by the employee serving as a witness for the City. An employee shall be required to pay any witness fees that accrue to the employee for his witness service to the City as a condition of receiving his normal pay while serving as a witness for the City. Any exceptions to this provision must meet the approval of the Human Resources Director. C. Military Leave of Absence. If an employee is required to take military training two (2) weeks or more each year, he shall be entitled to military leave of absence under the provisions of State law, found in applicable sections of the Military and Veterans' Code. An employee must provide a copy of their military orders to the Human Resources Department to qualify for a military leave of absence. D. Sick Leave. Sick leave with pay shall be allowed, credited, and accumulated in accordance with the following: 1) For employees working a regular 40 -hour week, eight (8) hours of sick leave will accrue for each month of continuous service. I 2) All non - benefitted employees shall receive sick leave as required by State law. 3) Sick leave will be charged at the rate of one - quarter ( hour for each one - quarter ( hour an employee is absent. 4) Any employee eligible for sick leave with pay may use such leave for the following reasons: a) Medical and dental office appointments during work hours when authorized by the department head or his designee; and /or b) Personal Illness or physical incapacity resulting from causes beyond the employee's control, including pregnancy, childbirth, and other medically related conditions. 5) Sick Leave Application. Sick leave may be applied only to absence caused by illness or injury of an employee and may not extend to absence caused by illness or injury of a member of the employee's family except as provided for in Subsection F below. 6) Sick Leave Charged. In any instance involving use of a fraction of a day's sick leave, the minimum charged to the employee's sick leave account shall be one - quarter ( hour, while additional actual absence of over one - quarter ( hour shall be charged to the nearest one -half ( hour. Sick leave shall only be used for the purposes stated and the department head shall be responsible for control of employee abuse of the sick leave privilege. Employees may, upon prior notice and in the complete discretion of the department head, be required to furnish a certificate issued by a licensed physician or nurse or other satisfactory written evidence of any subsequent illness. 7) Sick Leave Payout Program. Unused sick leave shall be paid off according to the following: a) All sick leave accrued prior to January 1, 1992 shall fall under the following payout formula: 1) Accumulated sick leave balances as of December 31, 1991 shall be set aside in a designated sick leave account and no further accumulation will be placed in this bank. This accumulated sick leave will be available for the employee's use according to the provisions outlined in Section E. (2), (3) and (4). 2) Upon retiring from City service and entering the Public Employees' Retirement System, an employee shall receive pay for 50% of all accrued sick leave hours. The cash value of this unused sick leave payout will be deposited into the employee's Retirement Health Savings Plan account, as described in Section 22C below. 3) Upon separation from City service for reasons other than retirement with PERS, an employee shall receive no pay for the first 60 days of accrued sick leave (0 to 480 10 hours), but shall receive 25% pay for the first 30 days of accrued sick leave after the first 60 days of accrued sick leave (481 to 720 hours), and 50% of all accrued sick leave thereafter (721 hours and up). 4) Upon the death of an employee while employed by the City, 100% of all accrued sick leave benefits accrued prior to January 1, 1992 shall be paid to the beneficiary of the deceased employee. Payment will be made when proper authorization for payment is received from the estate of the decedent employee. b) All sick leave accrued after December 31, 1991, shall be placed in a new accrual bank and have no maximum accrual amount. Any hours accumulated in this bank shall be eligible for the following payout program: 1) Employees with sick leave usage of 0.0 to 27.0 hours per payroll calendar year will have the option to convert 40 hours of their unused sick leave to vacation in the first pay period of the following year. 2) Employees with sick leave usage of 27.25 to 36.0 hours per payroll calendar year may convert 30 hours of unused sick leave to vacation the following year. 3) Employees must have a minimum balance of 180 hours of sick leave, combining both sick leave banks, available after conversion. In addition, no hours will be converted to vacation if said conversion places the employee's vacation bank over the maximum allowable accrual. Conversion of sick leave to vacation shall occur in the first pay period of January based upon sick leave usage during the previous payroll calendar year. 4) Any sick leave converted to vacation shall be subject to the provisions described in Section 17. Vacations. The employee must file a sick leave payout designation form each year, if eligible for the conversion of unused sick leave to vacation. If no designation form is filed, the hours will automatically remain in the employee's new sick leave accumulation account. Employees shall still be subject to the maximum vacation accrual at any given time equivalent to 24 months' worth of accrued hours. Any request to convert which exceeds the maximum vacation accrual allotted shall not be converted to vacation, and shall remain in the employee's sick leave bank. 5) Upon retirement from employment with the City and entering the Public Employees' Retirement System, an employee with a minimum of five (5) years of continuous service to the City shall receive pay for 50% of all unused sick leave hours. The cash value of this unused sick leave payout will be deposited into the employee's Retirement Health Savings Plan account, as described in Section 22C below. 6) Upon separation of employment from the City for any reason, other than retirement as noted in the preceding paragraph, for sick leave hours accumulated after December 31, 1991, an employee shall receive no pay for the first 100 hours (0 to 100 hours) of accrued sick leave, but shall receive 25% pay for up to the next 100 hours, (101 to 200 hours) of accrued sick leave, and 50% pay of any remaining sick leave (201 to 352 hours). 11 7) Upon the death of an employee while employed by the City, 100% of all accrued sick leave benefits up to 352 hours shall be paid to the beneficiary of the deceased employee. Payment will be made when proper authorization for payment is received from the estate of the decedent employee. 8) Employees promoted to top management shall have all their sick leave hours placed into the new sick leave accrual bank. E. Family Leave. In accordance with the California Family Leave Act, an employee is allowed up to forty eight (48) hours of family leave per calendar year for family illness which shall be charged against the employee's accumulated sick leave. Part-time benefited employees are allowed to use up to one -half of their annual accrual of sick leave for family leave purposes. F. Bereavement Leave. Regular full -time employees shall be entitled to take up to three (3) days of paid bereavement leave per incident on the following terms and conditions: 1) Bereavement leave may only be used upon the death or critical illness where death appears to be imminent of the employee's immediate family. "Immediate family" as used in this subsection, shall be limited to any relation by blood, marriage or adoption, who is a member of the employee's household (living at the same address) and any parent, legal guardian, parent -in -law, brother -in -law, sister -in -law, grandparent, grandchild, aunt, uncle, spouse, child, brother, or sister of the employee regardless of residence. 2) Days of absence due to bereavement leave shall not exceed three (3) working days per incident and shall not be deducted from the employee's accumulated sick leave. An employee on bereavement leave shall inform his immediate supervisor of the fact and the reasons therefore as soon as possible. Failure to inform his immediate supervisor, within a reasonable period of time, may be cause for denial of bereavement leave with pay for the period of absence. G. Industrial Leave for Safety Employees. For the classifications of Police Chief and Fire Chief, industrial leave shall be granted in accordance with Labor Code Section 4850 as it now exists or hereinafter may be amended. H. Industrial Leave for Non - Safety Employ es. For the remaining classifications described in Appendix "A" and Appendix "B" herein, industrial leave shall be granted as follows: 1) A regular employee who is temporarily or permanently disabled as a result of injury or illness determined to be compensable under the Workers' Compensation Act shall be granted industrial leave on the following terms and conditions: a) An employee granted industrial leave shall continue to be compensated at his regular rate of pay in lieu of temporary disability payments. b) Any temporary disability payments made to an employee by the Workers' Compensation Administrator fund shall be remitted to the Finance Department. 12 2) Should it be determined that an employee's illness or injury did not arise in the course of the employee's employment with the City and that the employee is not temporarily or permanently incapacitated or disabled, as a result of an industrial injury or illness, then the employee's accrued, or if insufficient, future sick leave shall be charged to reimburse the City for any payments made to the employee pursuant to (1) above. 3) An industrial leave of up to one year shall be authorized for each injury or illness determined to be compensable under the Workers' Compensation Act. 4) No employee shall have accrued sick leave deducted while on industrial leave. Vacation and sick leave shall accrue for an employee on industrial leave. 5) Industrial leave shall expire when the first of any of the following conditions occur: a) The employee is able to return to work and assume the duties of his regular position. b) The employee is able to return to work to another position designated by the City. c) The day before the employee is retired or separated for disability. The employee's retirement date" shall be determined by the Public Employees' Retirement System. d) After 52 weeks of industrial leave. 6) Employees who have not previously submitted notification of Election of Personal Physician are required to use only physicians and medical facilities approved by the City during the first 30 days after an occupational injury or illness is reported. After the first 30 day period, an employee may change to a physician specified by him or her provided the physician has the expertise to treat the injury or illness and agrees to provide the timely reports to the City. However, if an employee has notified the City in writing, prior to the date of injury, that he has a personal physician, the employee shall have the right to be treated by such physician from the date of injury providing that: a) The physician has previously directed the medical treatment of the employee. b) The physician retains the medical records and history of the employee. An employee may request one change of physician during the first 30 days after the injury or illness is reported. I. Family Care and Medical Leave (FCML). State and Federal laws require the City to provide family and medical care leave for eligible employees. The following provisions set forth employees' and employer's rights and obligations with respect to such leave. Rights and obligations which are not specifically set forth below are set forth in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA) and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA) (Government Code Section 12945.2). Unless otherwise provided, "Leave" under this article shall mean leave pursuant to the FMLA and CFRA. 13 An employee's request for leave is subject to review and final approval of the Human Resources Director. 1) Amount of Leave. Eligible employees are entitled to a total of 12 workweeks of leave during any 12 -month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires 12 months after the birth or placement. The 12 -month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous 12 -month period to determine how much leave has been used in determining how much leave a member is entitled to. 2) Use of Other Accrued Leaves While on Leave. If an employee requests leave for any reason permitted under the law, he /she must exhaust all accrued leaves (except sick leave) in connection with the leave. This includes vacation, holiday, and other compensatory accruals. If an employee requests leave for his/her own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust sick leave. The exhaustion of accrued leave will run concurrently with the Family Care and Medical Leave. 3) Required Forms. Employees must fill out required forms, available in the Human Resources Department, including: Request for Family or Medical Leave; Medical Certification; Authorization for Payroll Deductions for benefit plan coverages (if applicable); and Fitness - for -Duty to return from leave. SECTION 20. HEALTH INSURANCE. The City shall contract with the Public Employees' Retirement System (PERS) to make available those health insurance benefits provided under the Public Employees' Medical and Hospital Insurance Care Act (PEMHCA). The PERS Health Benefits Plan shall replace any other benefits program maintained by the City for eligible employees, eligible retirees, and their eligible surviving annuitants. A. The City shall contribute toward the payment of premiums under the PERS Health Benefits Plan to each eligible retiree annuitant of PERS to the extent required by law, a contribution of $128.00 per month. Effective January 1, 2018, this contribution shall be increased to $133.00 per month. B. Flexible Benefits Plan. The City shall administer a Section 125 Flexible Benefits Plan for active full -time and part-time eligible employees and pay the following monthly amounts to provide funds for optional dental plans, vision plans, health plans, or miscellaneous pay: 14 C. Any amounts in excess of the amount designated in Section 20.13 necessary to maintain benefits under any benefits plan selected by the employee shall be borne by the employee. D. An employee cannot be enrolled in the PERS Health Benefits Plan if a spouse is enrolled in the City or enrolled in an agency with PERS health, unless the employee (or the spouse) is enrolled without being covered as a family member. Additionally, an employee may choose not to be enrolled in the Health Benefits Plan. If an employee chooses to not be enrolled in the health plan, the employee must provide proof, as determined by the Human Resources Director, that comparable medical insurance is in full force and effect. Based on determination that insurance is in full force and effect, eligible employees shall receive the amount designated in Section 20.13 towards the Flexible Benefits Plan. In the event the employee loses eligibility (with documentation) the employee may enroll in the PERS Health Benefits Plan pursuant to their rules and regulations. SECTION 21. OTHER INSURANCES. A. Life Insurance. a. For employees described herein in Appendix "A," the City shall contribute the full premium towards a $150,000 life insurance benefit. b. For employees described herein in Appendix "B" the City shall contribute the full premium towards a $75,000 life insurance benefit. B. Disability Insurance. The City shall provide a long term disability plan with a long term disability benefit of two - thirds of salary, after a 60 -day elimination period, to a maximum of $8,000 per month for employees described herein in Appendix "A ", and a maximum of $6,000 per month for employees described herein in Appendix `B." C. Medicare Insurance. The City shall pay for the employee's portion of the contribution (1.45 %) for Medicare coverage for all employees hired since the effective date in April, 1986. SECTION 22. RETIREMENT. A. Public Employees' Retirement System (PERS). 1) PERS Member Contribution. All benefited employees shall participate in the California Public Employees' Retirement System (Ca1PERS). Covered employees shall pay 8.0% of reportable salary (9.0% for safety) on a pre -tax basis to PERS as their full member contribution. Employees will be provided an annual report from Ca1PERS showing the amount of contribution so made. 2) Miscellaneous PERS Formula — Tier 1. Effective June 29, 2003, the City shall provide the PERS 2.7% @ age 55 Retirement Program. This applies to miscellaneous employees hired by the City prior to January 1, 2013. This also applies to new employees who are considered classic" members of Ca1PERS or current members of another California public retirement system with Ca1PERS reciprocity who are hired on or after January 1, 2013. Employees do not contribute any portion of their salary to PERS towards cost - sharing of the City's 15 employer contribution rate. The City shall pay all remaining employer costs toward the retirement program for employees covered herein. 3) Safety PERS Formula — Tier 1. Effective May 20, 2001, the City shall contract with PERS to provide the safety employees covered under this Resolution with the 3% @ age 50 retirement formula, as set forth in Section 21362.2 of the California Government Code. This applies to safety employees hired by the City prior to January 1, 2013. This also applies to new employees who are considered "classic" members of Ca1PERS or current members of another California public retirement system with Ca1PERS reciprocity who are hired on or after January 1, 2013. Employees do not contribute any portion of their salary to PERS towards cost - sharing of the City's employer contribution rate. The City shall pay all remaining employer costs toward the retirement program for employees covered herein. 4) 1959 PERS Survivor Benefit. The City shall pay fees and provide the 1959 PERS Survivor Benefit at the Third Level Option. Effective on or before June 30, 2018, pursuant to a contract amendment with Ca1PERS, the City shall pay fees and provide the 1959 PERS Survivor Benefit at the Fourth Level Option for the Fire Chief and Police Chief. 5) Miscellaneous PERS Formula — Tier 2. Miscellaneous employees hired on or after January 1, 2013, who thereupon become new members in PERS, shall be subject to the 2.0% @ age 62 retirement program pursuant to the California Public Employees' Pension Reform Act of 2013 (PEPRA). Said new miscellaneous PERS members shall contribute from their reportable compensation 50% of "normal cost" as dictated by Ca1PERS for their defined benefit pension plan. PERS has advised that 50% of normal cost effective January 1, 2016 is 6.0% of reportable compensation for new miscellaneous members. These "new members" are subject to the three (3) year final compensation period to calculate average final compensation for retirement purposes as set forth in Section 7522.32. In all other respects, miscellaneous employees who are considered "new members" shall be subject to the terms and requirements of PEPRA. 6) Safety PERS Formula — Tier 2. Safety employees hired on or after January 1, 2013 who thereupon become new members in PERS shall be subject to the 2.7% @ age 57 retirement program pursuant to the California Public Employees' Pension Reform Act of 2013 PEPRA). Said new safety PERS members shall contribute from their reportable compensation 50% of "normal cost" as dictated by Ca1PERS for their defined benefit pension plan. PERS has advised that 50% of normal cost effective January 1, 2016 is 11.0% of reportable compensation for new safety members. These "new members" are subject to the three (3) year final compensation period to calculate average final compensation for retirement purposes as set forth in Section 7522.32. In all other respects, safety employees who are considered "new members" shall be subject to the terms and requirements of PEPRA. 7) PERS Reporting, The City shall, in accordance with PERS rules and regulations, continue to report salary levels to PERS as if there were no furlough. B. Money Purchase Retirement Plan. The City shall provide a Money Purchase Retirement Plan for employees covered by this resolution. The City shall contribute an amount equal to three percent (3 %) of the employees' base salary as shown in Appendix "A" and Appendix "B" toward an IRS Section 16 401(a) account. In lieu of this City provided benefit, the employee may elect to have added to his base salary an additional three percent (3 %), however this 3% is not reported to PERS as pensionable compensation. This election can be made only upon initial employment and is irrevocable. C. Retirement Health Savings Effective October 1, 2002, the City Council approved a Retirement Health Savings Plan for employees covered by this Resolution. Effective January 1, 2008, all Top Management employees are required to participate in the plan by making the following tax - deferred contributions to the plan: 1) The cash value of the employee's unused floating holiday hours at the end of each calendar year or upon separation from City service; 2) The cash value of the employee's unused administrative leave balance at the end of each calendar year or upon retirement from City service and entering the Public Employees' Retirement System; and 3) The full cash value of the employee's unused sick leave payout upon retirement from City service (i.e., 50% of all unused sick leave hours for qualified employees) and entering the Public Employees' Retirement System. SECTION 23. OTHER FRINGE BENEFITS. A. Medical Maintenance Examination Program. An annual medical examination shall be provided for all employees listed in Appendixes "A" and "B ". The content and extent of the examination of each individual shall be determined by the physician in charge and shall be tailored to the individual's particular needs. A profile of the examination shall be maintained. Each employee may choose to have said examination performed by the physician of his choice or the City's designated medical provider. Employees in Appendixes "A" and "B" will be reimbursed per fiscal year, upon submitting proof of such examination, the following amounts toward the cost of an annual physical examination: Executive Directors: $850.00 Top Management Employees: $550.00 Employees may receive up to $495 per fiscal year (of the $850 listed above for Executive Directors) and $395 per fiscal year (of the $550 listed above for Top Management Employees) towards reimbursement for items 1, 2 and/or 3 below. Requests other than annual physicals must be approved, prior to purchase or participation, by the Human Resources Director. 1) Membership in a health/fitness club. 2) Participation in a weight loss /stop smoking /wellness /fitness program. 3) Fitness equipment (home gym equipment). The City will not reimburse employees for any of the above listed activities for family /dependent health related expenses. B. Educational Assistance. The City will reimburse employees for the cost of tuition, textbooks, parking fees, and health fees required for approved community college and college courses, as well as job- required licensing, testing, renewal, and registration fees. An approved course is one designated to directly improve the knowledge of the employee relative to his specific job, and must be approved by the department head and the Human Resources Director prior to registration. Full reimbursement up to the 17 amount specified below will be provided based upon completion of the approved course(s) with a final grade of "C" or better. Educational assistance payments to an employee shall not exceed $1,500.00 in any one fiscal year and he must still be employed by the City when the course is completed. The City agrees to allow reimbursement to Executive Directors up to $1,000, and Top Management employees up to $800 of the $1,500 allotted per fiscal year for activities which aid in their professional development. Reimbursable activities include the following: 1) Attendance at job - related professional conferences and seminars; 2) Payment of membership dues in community and professional organizations; and 3) Purchase of job - related professional journals, books, and other written materials which further their knowledge and improve their effectiveness in their duties. Participation and /or purchase must be approved in advance by the department head and the Human Resources Director. The above reimbursable activities are made to recognize and encourage staff to pursue educational and public relations oriented activities beyond those normally budgeted for them by their departments and in which they are directed to participate. Approved activities are those which may be expected to further their knowledge of their jobs and the Orange community and which contribute to their improved effectiveness. Individual departments may continue to budget funds for staff attendance at professional conferences and seminars, for payment of professional membership dues, and for the purchase of books, journals, and related written materials which enhance the staff s knowledge. C. Uniforms. The City shall pay and report to Ca1PERS the following values for uniform expenses: 800 per year for the Police Chief, $800 per year for the Fire Chief, and $400 per year for the Emergency Medical Services Manager. This uniform expenditure will not be reported to Ca1PERS as pensionable compensation for "new members" hired on or after January 1, 2013, as defined by the Public Employees' Pension Reform Act of 2013 (PEPRA). D. Rideshare Incentive Program. An employee may receive $30 per month and eight (8) hours compensatory time every six (6) months for carpooling, using public transportation, biking, walking, or other approved modes of transportation to and from the work -site. To qualify for these incentives, an employee must use one of the above forms of transportation 70% of his commuting time. E. Technology Stipend. In lieu of being provided a City- issued cell phone pursuant to Section 1.63 of the City's Administrative Policy Manual, designated employees shall receive $50 per month as reimbursement for any and all cost related to the purchase and use of a cell phone for City- related business. For purposes of this section, designated employees are those that the City Manager or Department Head have determined are required to carry cell phones so that they may be contacted when they are away from their office phone or computer. 18 SECTION 24. DIRECT DEPOSIT. All employees hired after January 1, 2017 must participate in the City's direct paycheck deposit program. SECTION 25. TRAVEL EXPENSE ALLOWED. A. Mileage Reimbursement. Expense claims for the use of private automobiles must be authorized by the department head, and submitted to the Accounts Payable division of the Finance Department for reimbursement. Such use, where mileage is reimbursed, will be reimbursed at the rate per mile allowed under the current IRS regulations. B. Out -of -City Travel. If the estimated expense of contemplated travel out -of -the -City is too great to expect the employee to finance the trip and be reimbursed upon his return, the City Manager may authorize advance payment of the estimated amount of the travel expense to the employee. C. Tourist -Class airplane passage will be considered standard for out -of -town travel. D. Use of personal cars for out -of -City trips, within the State, may be approved by the City Manager when use of commercial transportation is not available or practical. If an employee prefers to use his personal car, he may be reimbursed mileage expenses as long as the expenses do not exceed the amount of the cost of the commercial transportation. E. Transportation and Expense Charges. Expenses for air, rail, or public transportation will be allowed whenever such transportation is necessary for conduct of City business. In addition, the following expenses and charges will be allowed, whenever necessary, for the conduct of City business. 1) Expenses will be allowed for adequate lodging. Hotel accommodations shall be appropriate to the purpose of the trip and must be approved by the department head. 2) Telephone and telegraph charges will be allowed for official calls and telegrams. 3) Expenses for meals will be reimbursed according to Administrative Policy Number 4.13. SECTION 26. GRIEVANCES. Any employee covered by this Resolution who wishes to file a grievance should follow the procedures outlined in the City's Employee Handbook. SECTION 27. EFFECTIVE DATES. This Resolution and attachments hereto shall be effective as of July 1, 2017 and shall continue in full force and effect until June 30, 2018 unless otherwise amended. IL•] ADOPTED this 14th day of November 2017. Yilr Mresh E. Smith, Mayor, City of Orange ATTEST: Mary E rp , City 061F, STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 14th day of November 2017, by the following vote: AYES: COUNCIL MEMBERS: Whitaker, Smith, Murphy, Nichols NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Alvarez ABSTAINED: COUNCIL MEMBERS: None Mary E. M , ity Clerk, Ci nge 20 APPENDIX " A " CITY OF ORANGE EXECUTIVE MANAGEMENT TEAM MONTHLY SALARY RANGES EFFECTIVE JUNE 26, 2016 2.0% Across the Board Salary Increase CLASSIFICATION TITLE RANGE Assistant City Manager 715 Chief Clerk 622 City Attorney 738 Community Development Director 692 Community Services Director 687 Finance Director 687 Fire Chief 725 Human Resources/Employee Relations Dir 687 Library Services Director 673 Police Chief 730 Public Works Director 704 STEP A STEP B STEP C STEP D STEP E STEP F 12616 13261 13935 14647 15394 16179 7934 8340 8763 9211 9681 10174 14150 14873 15629 16427 17265 18145 11249 11824 12425 13060 13726 14425 10972 11533 12119 12738 13388 14070 10972 11533 12119 12738 13388 14070 13261 13939 14648 15396 16181 17006 10972 11533 12119 12738 13388 14070 10232 10755 11302 11879 12485 13121 13596 14291 15018 15785 16590 17436 11943 12553 13191 13865 14572 15315 21 APPENDIX "A" CITY OF ORANGE EXECUTIVE MANAGEMENT TEAM MONTHLY SALARY RANGES Continued) EFFECTIVE NOVEMBER 12.2017 Equity Adjustments for Fire Chief (3 %) and Police Chief (3% CLASSIFICATION TITLE RANGE STEP A STEP B STEP C STEP D STEP E STEP F Assistant City Manager 715 12616 13261 13935 14647 15394 16179 Chief Clerk 622 7934 8340 8763 9211 9681 10174 City Attorney 738 14150 14873 15629 16427 17265 18145 Community Development Director 692 11249 11824 12425 13060 13726 14425 Community Services Director 687 10972 11533 12119 12738 13388 14070 Finance Director 687 10972 11533 12119 12738 13388 14070 Fire Chief 731 13664 14363 15093 15864 16673 17523 Human Resources/Employee Relations Dir 687 10972 11533 12119 12738 13388 14070 Library Services Director 673 10232 10755 11302 11879 12485 13121 Police Chief 736 14009 14725 15474 16264 17094 17965 Public Works Director 704 11943 12553 13191 13865 14572 15315 22 APPENDIX "B" CITY OF ORANGE SENIOR MANAGEMENT TEAM MONTHLY SALARY RANGES EFFECTIVE JUNE 26, 2016 2.0% Across the Board Salary Increase CLASSIFICATION TITLE RANGE STEP A STEP B STEP C STEP D STEP E STEP F Accounting Manager 602 7181 7548 7931 8336 8762 9208 Administrative Analyst I 532 5065 5323 5595 5880 6180 6495 Administrative Analyst II 552 5596 5882 6181 6497 6828 7176 Assistant City Attorney I 658 9494 9980 10487 11022 11585 12175 Assistant City Attorney 11 668 9980 10490 11023 11586 12178 12798 Assistant Community Devel. Director 666 9881 10386 10914 11471 12057 12671 Assistant Community Services Director 653 9261 9734 10229 10751 11300 11875 Assistant Field Services Manager*633 8381 8810 9258 9730 10227 10748 Assistant Finance Director 653 9261 9734 10229 10751 11300 11875 Assistant Human Resources Director 653 9261 9734 10229 10751 11300 11875 Assistant Library Services Director 612 7548 7934 8337 8763 9210 9679 Assistant to City Manager 589 6730 7074 7433 7813 8212 8630 Assistant Water Manager 633 8381 8810 9258 9730 10227 10748 Budget Officer 592 6831 7181 7545 7931 8336 8760 Chief Building Official 653 9261 9734 10229 10751 11300 11875 Crime Analyst 550 5541 5823 6120 6432 6760 7105 Deputy City Clerk 554 5652 5940 6243 6562 6896 7248 Deputy City Manager 653 9261 9734 10229 10751 11300 11875 Deputy Public Works Director 668 9980 10490 11023 11586 12178 12798 Economic Development Manager 653 9261 9734 10229 10751 11300 11875 Economic Development Project Manager 602 7181 7548 7931 8336 8762 9208 Emergency Medical Services Manager 617 7739 8134 8547 8984 9443 9924 Employee Benefits Analyst 545 5404 5680 5969 6274 6594 6930 Equipment Maint. Superintendent 605 7289 7662 8051 8462 8894 9347 Executive Assistant 499 4296 4515 4746 4988 5242 5509 Field Services Manager **653 9261 9734 10229 10751 11300 11875 Finance Supervisor 564 5941 6244 6563 6897 7249 7619 Housing Manager 602 7181 7548 7931 8336 8762 9208 Human Resources Analyst I 537 5193 5458 5736 6028 6336 6659 Human Resources Analyst II 564 5941 6244 6563 6897 7249 7619 Human Resources Manager 627 8134 8550 8985 9443 9926 10431 23 CLASSIFICATION TITLE RANGE STEP A STEP B STEP C STEP D STEP E STEP F Intergovernmental & Comm Affairs Mgr 644 8854 9307 9780 10279 10804 11354 Internal Audit Manager 602 7181 7548 7931 8336 8762 9208 Investment/Revenue Officer 572 6183 6498 6830 7178 7544 7929 Manager of Trans Svcs /City Traffic Eng 653 9261 9734 10229 10751 11300 11875 Parks and Facilities Manager 633 8381 8810 9258 9730 10227 10748 Payroll Manager 592 6831 7181 7545 7931 8336 8760 Planning Manager 653 9261 9734 10229 10751 11300 11875 Police Communications Manager 597 7004 7362 7736 8131 8546 8981 Principal Civil Engineer 633 8381 8810 9258 9730 10227 10748 Principal Planner 622 7934 8340 8763 9211 9681 10174 Public Affairs & Information Manager 602 7181 7548 7931 8336 8762 9208 Public Works Administrative Manager 602 7181 7548 7931 8336 8762 9208 Purchasing Officer 602 7181 7548 7931 8336 8762 9208 Recreation Services Manager 623 7974 8381 8807 9257 9730 10225 Risk Management Analyst 535 5141 5403 5679 5969 6273 6593 Risk Manager 637 8550 8988 9444 9926 10433 10965 Senior Administrative Analyst 582 6499 6831 7179 7545 7930 8335 Senior Assistant City Attorney 688 11027 11590 12180 12802 13455 14140 Senior Econ Development Project Mgr 628 8175 8593 9029 9491 9975 10483 Senior Executive Assistant 535 5141 5403 5679 5969 6273 6593 Senior Housing Manager 628 8175 8593 9029 9491 9975 10483 Senior Human Resources Analyst 594 6900 7253 7621 8010 8419 8848 Senior Library Manager 592 6831 7181 7545 7931 8336 8760 Water Manager 653 9261 9734 10229 10751 11300 11875 Note: the classification of Public Works Maintenance and Operations Manager was reclassified to Assistant Field Services Manager effective June 25, 2017 pursuant to City Council 2017118 budget adoption and Resolution No. 11017. 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