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HomeMy WebLinkAboutExecutive Management MOURESOLUTION NO.2022-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE EXECUTIVE MANAGEMENT EMPLOYEE GROUP. WHEREAS, representatives of the City of Rancho Cucamonga (City) and the Executive Management Employee Group have met and conferred pursuant to the provisions of the Meyers- Milias-Brown Act (California Government Code §3500, et seq.) with regard to terms and conditions of employment; and WHEREAS, representatives of the City and the Executive Management Employee Group have agreed upon and presented to this City Council a two- year Memorandum of Understanding effective July 1, 2022, to June 30, 2024. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA HEREBY RESOLVES that said Memorandum of Understanding with the Executive Management Employee Group is hereby approved and the City Manager is hereby authorized to sign said Memorandum of Understanding on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. Resolution No. 2022-044 — Page 1 of 2 PASSED, APPROVED, and ADOPTED this 4th day of May 2022. L e Kennedy, Mayor Pro 119m ATTEST: La/v&-e - e. hw�p� - ice C. Reynolds, City tlerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 4th day of May 2022. AYES: Hutchison, Kennedy, Michael, Scott NOES: None ABSENT: None ABSTAINED: None Executed this 5th day of May, 2022, at Rancho Cucamonga, California. 0z"AL*k P ev)�� ice C. Reynolds, Cit Clerk Resolution No. 2022-044 — Page 2 of 2 MEMORANDUM OF UNDERSTANDING CITY OF RANCHO CUCAMONGA AND EXECUTIVE MANAGEMENT EMPLOYEE GROUP July 1, 2022 — June 30, 2024 Resolution No. 2022-044 MEMORANDUM OF UNDERSTANDING -- - -BETWEEN THE -CITY-OFRANCHO CUCAMONGA CALIFORNIA-AND- EXECUTIVE MANAGEMENT EMPLOYEE GROUP SECTION 1: EFFECTIVE DATE The provisions of this MOU are effective July 1, 2022, and shall continue for a two- year period, ending June 30, 2024. SECTION 2: COST OF LIVING ADJUSTMENT Effective the first full pay period in July 2022, all Executive Management Group covered employees will receive a 2% cost of living adjustment. Effective the first full pay period in July 2023, all Executive Management Group covered employees will receive a 2.5% cost of living adjustment. A. Equity Adjustment Effective the first full pay period in June 2023, the Finance Director position will receive a 4% equity adjustment to get the position close to 5% of market. Effective the first full pay period in June 2024, the Finance Director position will receive a 4% equity adjustment to get the position close to 5% of market. SECTION 3: SALARY STRUCTURE Executive Management employees will be assigned to salary ranges, which are no less than 20% (40 salary code steps) below the control point and no more than 15% (30 salary code steps) above the control point. Actual salary within the range is determined by performance, achievement of goals and objectives, or for recent appointments, growth within the position. A. In order to prevent compaction issues, the top step of every Executive Management Covered employee's salary range should be a minimum of 5% above the top step of the available salary range of any subordinate employee as determined by the City Manager. Human Resources; will review compaction issues each year taking into account any changes in salary ranges due to increases in control points, top steps and cost of living adjustments. SECTION 4 : EXECUTIVE BENEFITS Employees designated as Executive Management are not eligible for overtime pay, or compensatory time for working hours over and above the normal daily work schedule. Employees so designated 1 shall be entitled to all benefits provided to general employees and the following: A. Administrative Leave -One hundred (100) hours per fiscal year. Days off must be approveduby appropfiate­supervisof. In" -order to compete for talented --Executive _­_� ____ _ Staff the-C.itylVla.nager_may p-ravide_up to-an_additional 1.00_hours_of Administrative Leave to an Executive Management covered employee upon hire. This additional Administrative Leave must be used within the first three years of the new employee's time with the City. The City does not recognize Administrative Leave as a property right and does not provide any cash -out provisions should an employee leave City service and still have a positive amount of Administrative Leave. B. Life Insurance - Life insurance in the amount of 100% of the annual base salary plus $75,000. C. Deferred Compensation - Six percent (6%) of base salary. Additional voluntary individual contributions above the 6% of base salary level will be matched dollar for dollar by the City up to a limit of 4% of base salary. The total contributions for both City and Employee cannot exceed the maximum annual contributions as determined by the Internal Revenue Service. Deferred Compensation shall be automatic with an opt -out provision for new members. Effective the first full pay period in July 2022, or as soon as possible thereafter, 457 match will move to a 401 A side match. D. Automotive allowance of $500 per month if a City vehicle is not provided. E. Executive Reimbursement - The City shall provide up to $2000 each fiscal year to be applied to either Executive Physical or for Technology Reimbursement subject to the following conditions: 1. Executive Wellness Plan The City shall provide reimbursement for employee for an Executive Physical, and related approved expenses, up to a maximum amount of $2,000 per fiscal year. If the employee selects or requires additional services beyond the $2,000 per fiscal year amount, employee may receive reimbursement for additional approved expenses in an amount equivalent to any unspent funds remaining from employee's Executive Benefits from the priorfiscal year. If no unspentfunds remain from employee's Executive Benefits from the prior fiscal year, employee may receive reimbursement for additional approved expenses as an advance against employee's next immediate fiscal year Executive Benefits (1-year advance only,). In no event shall any employee receive more than $4,000 total reimbursement for an Executive Physical, and related expenses, in one fiscal year. Approved providers, and a list of eligible reimbursable services, shall be determined by the Human Resources Department. K 2. Technology Reimbursement The City shall provide reimbursement for employee to procure ancillary technology devices and -related peripherals in support Uf-t ir' positions up ova - - maximum of $2,000 per fiscal year amount, employee may receive reimbursement for additional approved expenses in an amount equivalent to any unspent funds remaining from employee's Executive Benefits from the prior fiscal year. In no event, shall any employee receive more than $4,000 total reimbursement for technology devices, and related expenses, in one fiscal year. Approved devices and peripherals shall be determined by the Human Resources Department. Ancillary technology devices are defined by the following categories, including the minimum replacement cycle for each device category: Mobile Phone 2-year replacement cycle Tablet Device 3-year replacement cycle PC or Laptop 3-year replacement cycle Printer 3-year replacement cycle The City will no longer provide employees a phone stipend or any ancillary technological devices, other than a desktop or laptop computer for his/her - ------workstation --as is-p-rovided -to most -City employees -for their daily -use.---Devices procured under the reimbursement program must be made available for work related activities. Reimbursed devices are exclusive to the employee for personal and City related use and may not be transferred to another user or owner during the replacement cycle. SECTION 5: HEALTH INSURANCE A. LEVEL OF BENEFIT The City shall provide employee and family health insurance for all represented full-time continuous employees within the bargaining group, subject to the limitation that no such monthly funding by the City shall exceed the following: $1,200.00 effective the first full pay period in July 2019. Effective the second full pay period in December 2022, this amount will increase to $1300.00 B. CASH IN -LIEU PAYMENT Represented employees who wish to waive medical coverage under a City -paid medical insurance plan, are eligible for this benefit and may opt out of medical insurance beginning January 2023, as long as they meet ACA requirements. 3 ------Employees eligible for this -benefit shall receive $300 per month cash in -lieu ____pay_ment_To be eligible,_an employee must provide the followings -- ------(l-)-pro-of-th-at-the-employee-arrd-all-individuals-for-whom-the-employee-intends-to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City's plan year to which the opt out applies ("tax family"), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies ("opt out period"); and . (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt -out payment cannot be made, and the City will not in fact make payment if the employer knows that the employee or tax family member does not have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. proof of other medical insurance coverage and must have provided a signed waiver. C. AFFORDABLE CARE ACT (ACA) REOPENER T The City may reopen h egotiafioris on the_issue of -health insurance benefits to address changes to orthe elimination of the ACA and in order to avoid penalties or taxes under the ACA or other statutory scheme that may result from an interpretation of the ACA or other statutory scheme by the Internal Revenue Service or other federal agency (including, but not limited to, a revenue ruling, regulation or other guidance) or state agency, or a ruling by a court of competent jurisdiction. These negotiations will not result in a reduction in the amount the City provides for employee health coverage. SECTION 6: RETIREE MEDICAL Subject to the conditions stated below, effective upon a service or disability retirement from City service at or beyond age 55 with 10 consecutive years of City service at the time of retirement, retirees shall be eligible to 100% personally funded without any City contribution, participation in a group health insurance program(s) which is making group health insurance available to the City's retirees and eligible dependent. It is agreed and acknowledged by the parties to this MOU that no representation is or can be made by the City, that such group retiree health insurance is available, or if available, will remain available for any specific future period of time. If no such group health insurance is reasonably available, or if the private carrier(s) terminates such coverage as to the retiree group or any individual group member, the City M shall have no obligation/duty to self -fund or otherwise provide insurance or replacement insurance. All premiums for the retiree and/or eligible dependents shall be borne by the retiree. The City shall advance and submit the necessary premiums to the carrier(s), ubject-to the-retiree-reimbur-singthe Gitynot -la#er-than 30-c-agenda--days-a#er-City-payment--- of the premium. Failure to timely reimburse the City shall result in no further premium payments being made by the City, resulting in termination of insurance coverage. The City's duty to advance said premiums shall terminate at age 65 of the retiree, regardless of whether or not the retiree is eligible for Medicare. City shall advise the group carrier of the insured's status as a retiree or eligible dependent. Coverage eligibility shall then be solely determined by the group insurance carrier(s). It is likely that premium rates for retirees and/or dependents shall be greater than rates for employees. Regardless, retirees shall pay 100% of said rates. If at any time, it is determined by any group health insurance carrier that the City is prohibited from seeking premium reimbursement from a retiree, City affiliation and retiree enrollment in said group insurance plan shall immediately terminate upon rendering of the insurance carrier's decision. In such case, no retiree shall seek reimbursement from the City for any prior premiums paid by the retiree to the City as and for premium rei-m. __bursement. SECTION 7: DENTAL INSURANCE The City shall provide a dental insurance plan for all full-time continuous salaried employees and their qualifying dependents. SECTION 8: OPTICAL INSURANCE The City shall provide an optical insurance plan for all full-time continuous salaried employees and their qualifying dependents. SECTION 9: IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT PLAN The City has established an IRS Section 125 Flexible Spending Account Plan managed by a third -party administrator that is open to voluntary participation by members of the bargaining unit. The City agrees to pick up all administrative fees associated with maintaining this program for bargaining unit members (including but not limited to debit card fees.) SECTION 10: VOLUNTARY EMPLOYEE BENEFIT ASSOCIATION (VEBA) The City has established a Voluntary Employee Benefit Association (VEBA) through the 5 California Government Voluntary Employee Benefit Association to assist employees with planning for future health care expenses. -ontributions-to-the-Plan-shall-be-made-as-C-ity-contributions-through-a-salary-reduction------- arrangement. All contributions made on behalf of employees through such salary reduction arrangement are made on a pre-tax basis in accordance with IRS provisions. No Employer contributions are to be made to the plan. At the discretion of the Executive Management Group, contributions may be amended once per year provided that such amendment is permitted by IRS regulations and in conformity with the Plan Document. SECTION 11: RETIREMENT BENEFIT Unit members who do not meet the definition of "new member" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as "classic members") are enrolled in either the CalPERS retirement plan commonly referred to as the 2.5% at age 55 retirement plan ('Tier 1" and "Tier 2"), or in the 2% at age 55 retirement plan ("Tier 3") and shall be provided the benefits as described below: A. Tier 1 - Emplovees Hired Before September 1. 2010 §-21354.4- -- § 21574 4th Level 1959 Survivor § 20042 1 Yr Final Compensation Effective July 2021,.employees shall pay an additional one percent (1 %) of their PERSable compensation toward the CalPERS member contribution for a total of eight (8%) of their PERSable compensation toward the CalPERS member contribution. B. Tier 2 - Employees Hired Between September 1. 2010 and July 3.2011 § 21354.4 2.5% at 55 Full Formula § 21574 4th Level 1959 Survivor § 20042 1 Yr Final Compensation Effective July 2021, employees shall pay an additional one percent (1%) of their PERSable compensation toward the CalPERS member contribution for a total of eight percent (8%) of their PERSable compensation toward the CalPERS member contribution. 6 C. Tier 3 - Employees Hired on or After July 4.2011 § 21354.4 2% at 55 Full Formula .§ 21574 4th Level 1959 Survivor § 20042 3 Yr Final Compensation Effective 6/30/20, employees shall continue to pay one percent (1 %) of the member contribution and move the current six percent (6%) contribution of their PERSable compensation toward the CalPERS member contribution for a total of seven percent (7%) contribution toward the CalPERS member contribution. The City will adopt a resolution to reflect this change prior the effective date. D. It is understood that all contributions paid by the employee as described in Parts A through C above shall be calculated based upon the full base salary of the employee, plus any additional PERSable compensation, and any Employer Paid Member Contributions (EPMC). The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such pursuant to Title ,2 CCR, Section 571(a)(1)(F) as Value of Employer -Paid Member Contributions. The parties also agree that the City has no additional obligation --- -- - - or-costs-should-CalPERS—the,State or-the--IRS---determine--otherwise--T-h-e-City--- adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis to the extent permitted by law or IRS regulation. All employee payments of the employer share are, done pursuant to Government Code Section 20516(f) There shall be no sunset date to any provision in Section 11. E. The California Public Employees' Pension Reform Act of 2013 (PEPRA) - As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. Any provision in this MOU which contradicts any provision of the PEPRA shall be deemed null and void, with the contrary PEPRA provision(s) being given full force and effect. Therefore, no provision of PEPRA shall be deemed to impair any provision of this MOU or any MOU, Agreement, Rule or Regulation predating this MOU. PEPRA includes, but is not limited to, the provisions described below: Unit members hired on and after January 1, 2013, deemed to be a "new member" as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said "new member" is enrolled, rounded to the nearest quarter of 1 %, or the current contribution rate of similarly situated employees, whichever is greater. 7 Unit members who are "new members" and miscellaneous employees on and after January 1, 2013, shall be enrolled in the 2% @ 62 retirement formula (G­ovt. Codeg 7522.20)-. ---- Unit members who are "new members" on and after January 1, 2013, shall have "final compensation" measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on "pensionable compensation" (Section 7522.10) rather than "compensation earnable" (Section 20636). F. In addition, the City has adopted the PARS Retirement Enhancement Plan generally described as .5% (one-half percent) at 55 or at 60, depending upon the employee's hire date, for all miscellaneous employees hired on or prior to December 31, 2012. To be eligible, employees must be at least age 56, have ten (10) years of full-time continuous service and retire from the City. This benefit will be paid to qualified retirees in addition to any CalPERS benefits to which they are entitled. G. Employer Paid Member Contribution (EPMC) Effective the first full pay period in July 2020, this benefit shall consist of paying 0% of the normal contributions as EPMC and reporting the same percent (value) of compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation for the various "Tiers" described in Parts A through C above. SECTION 12: VACATION All full-time employees shall, with continuous service, accrue working hours of vacation monthly according to the following schedule. In order to compete for talented Executive Staff, the City Manager may provide an accrual rate for new Executive Management Group covered employees up to the equivalent of a ten-year employee upon hire. This is important as many experienced candidates have significant time in the public sector and might have to begin at a much lower accrual rate than they receive at their current Agency. N. Length of Hours Annual Service Accrued- - Hours ln-Yea-FsPer Pay Period______ Accrued _ 1-3 3.846 100 4 4.230 1'10 5 4.615 120 6-8 5.000 130 9 5.384 140 10 5.769 150 11-13 6.153 160 14 6.538 170 1519 6.923 180 20+ 7.962 200 SECTION 13: VACATION BUYBACK Annually, any employee that wants to have the City buy back vacation hours shall make _ an irrevocable election to do so. The irrevocable election shall _be_submitted in writing_ to the City's Human Resources Department on or before December 15 and shall indicate the number of hours of vacation that the employee expects to earn in the following calendar year that the employee wants the City to buy back, with a minimum buy back of 20 hours up to a maximum of 200 hours. This buy back shall occur twice annually, in June/July (between the last payday in June and the first pay day in July) and December (between the first and second payday of the month), and the employee must indicate the total amount of hours they want paid out in June/July and in December. Regardless of the number of hours requested to be cashed out at either time, the most the City can cash out is the number of hours accrued and available in that calendar year to date. Employees must maintain a minimum of 40 hours of accrued vacation subsequent to any payment of vacation buyback time. SECTION 14: VACATION CAP Effective December 2020, and every subsequent December, any employee with more than 1,040 hours of accrued vacation time will have their accrued vacation lowered to 1,040 hours and the cash equivalent of those hours above 1,040 will be deposited into their VEBA account in April of the following year. Example: Joe has 1,140 hours of accrued vacation in December2020; his accrued vacation is lowered to 1,040 hours and the cash equivalent of 100 hours of vacation time is transferred to his VEBA account in April 2021. SECTION 15: HOLIDAYS The City Hall Offices observe the following 14 holidays. All full-time continuous salaried employees shall- be-comperrsated-at-theirregular-rate-forthese-days:--- - --- - — (1) July 4 Independence Day (2) First Monday of September Labor Day (3) November 11 Veteran's Day (4) Fourth Thursday of November Thanksgiving Day (5) Day following Thanksgiving (6) December 24 Day preceding Christmas (7) December 25 Christmas Day (8) -January 1 New Year's Day (9) Third Monday of January Martin Luther King's Birthday (10) Third Monday of February President's Day (11) Last Monday of May Memorial Day (12) Three discretionary days maybe taken by an employee at his/her convenience subject to approval of the supervisor. Days may not be carried over from one fiscal year to the next. Whenever a holiday falls on a Sunday, the following Monday shall be observed as a holiday. Whenever a holiday falls on a Friday or Saturday, the preceding Thursday shall be observed as the holiday. When a holiday combination occurs (Thanksgiving, Christmas, etc.) where two consecutive days are holidays and it would result in the City Hall being open to serve the public only 2 days during the week, only one of the holidays will be observed and the other holiday will become a floating holiday. For example, for Thanksgiving, Thursday will be observed as the regular holiday; however, Friday will become a floating holiday to be used at a later date. For Christmas, Wednesday will be observed as the regular holiday; however, Tuesday (the day preceding Christmas) will become a floating holiday to be used at a later date. In the instance of Thanksgiving, Christmas or New Years, employees will have until June 30 to use those floating holidays accrued between Thanksgiving and New Year's. Also, those days will not accrue as floating holidays until the actual holiday has occurred. Each year the City will designate which days will be observed and which are floating holidays. Employees who are eligible to bank a holiday have until June 30 (end of fiscal year) to use the banked holiday earned from July 1 through April 30. Any holiday banked in May and 10 June, employees have until September 30 to use the banked holiday. SE-CT-CTHOL- DAY-FAVLIT-Y-CLOSURE- During the term of this MOU, there will be holiday facility closures, certain City facilities may close in conjunction with the Christmas and New Year's holidays. Closure dates for City facilities shall be determined by the City in order to balance the impact on public services. The City will strive to provide a schedule of Holiday Facility Closures at least six months or more in advance of the closure. During a holiday closure, affected represented employees may take paid leave from holiday, administrative leave, vacation accruals, or use unpaid leave. When holiday closures are implemented by the City, Section 15's provision regarding consecutive holidays shall not apply. SECTION 17: BEREAVEMENT LEAVE When a death occurs in -the family of a -full-time employee, the employee shall be granted up to 80 hours of bereavement leave with pay. A death certificate or other acceptable evidence may be required by the City Manager or designee before leave is allowed. Family members are defined as follows: employee's spouse or domestic partner, ---------employee's parents; --employee's grandparer-fts; -employee's--children,- - employee's ---- siblings, employee's grandchildren, employee's great-grandchildren, employee's great grand -parents, employee's spouse or domestic partner's parents, employee's spouse or domestic partner's grandparents, brother-in-law, sister-in-law, employee's spouse or domestic partner's children, employee's spouses grandchildren, employee's spouse or domestic partner's great-grandchildren, employee's spouse or domestic partner's great- grandparents, or a blood relative residing with employee. The City Manager or designee shall approve such bereavement leave. (References to domestic partner refer to registered domestic partners, as defined by California Family Code Section 297). Effective the first full pay period in July 2022, employees are eligible for an additional 40 hours of bereavement leave in addition to the currently provided 80 hours when the bereavement leave is related to the employee's spouse or domestic partner, employee's parents, employee's children, son-in-law, daughter-in-law, or employee's siblings, employee's spouse or domestic partner's parents, employee's spouse or domestic partner's children, or a blood relative residing with the employee. The parties agree to review any usage concerns in January 2023. SECTION 18: PERSONAL LEAVE Employees can use up to 40 hours of accrued sick leave, vacation, administrative leave or holiday time as personal leave. These 40 hours can be used incrementally (i.e., 1hour, 1/2 hour) throughout the fiscal year. Use of this time is for situations requiring the employee's attention,and needs to be cleared with their supervisor when using this time. 11 SECTION 19: SICK LEAVE All full-time employees shall, with continuous service-, accrue 120 hours of sick leave annually. Sick leave accrual (10 hours/month) begins on the first day of employment. A. Personal Sick Leave Employees can use sick leave for personal illness, injury, a health -related reason (such as the diagnosis, care or treatment of health condition), or preventive care. B. Family Sick Leave Employees can use sick leave for the illness or injury of a health -related reason (such as the diagnosis, care or treatment of a health condition), or preventive care of a qualified family member. For the purpose of Family Sick Leave, a qualified member means the employee's: child (includes any age or dependency status, or for whom the employee is a legal ward or stands in loco parentis), parent (includes person who stood in loco parentis of the employee as a child), parent -in-law, spouse, registered domestic partner, grandparent, grandparent -in-law, great-grandparent, great -grandparent -in-law, grandchild, great- --grandchild,,-or-sibling. —.--- - - - -- - - - -- _--- - — ---- C. Other Statutory Use Sick Leave can be used to cover an absence for an employee who isvictimof domestic violence sexual assault, or stalking to: (a) Obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or their child(ren). (b) Obtain medical attention or psychological counseling; service from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety. Should the City suspect that there is an abuse of sick leave by the employee, the City may require that the employee submit to Human Resources a physician's certificate to support the absence. SECTION 20: SICK LEAVE BUYBACK AND EARLY RETIREMENT NOTIFICATION INCENTIVE Effective the first full pay period in July 2022, employees within the bargaining unit who terminate their city employment, the City will buyback 150 hours of sick time if they provide at least four weeks' written notice of their intent to separate. Employees who provide early notification of their intent to retire from the City, will receive additional accrued sick leave hours in accordance with the schedule below (this is not 12 cumulative, depending on the notice provided employees get an additional 100, 75, 50 or _20 hou[s_of sick_leave buyback). Notification must be given in -writing -to Human. Resources in the form 'of an irrevocable letter of resignation with intent to retire. Notification of at least twelve 100 hours additional sick leave buyback ** months (365 calendar days*) Notification of at least six months 75 hours additional sick leave buyback (180 calendar days*) Notification of at least four months 50 hours additional sick leave buyback (120 calendar days*) Notification of at least two months, 20 hours additional sick leave buyback 60 calendar days*) *Employees must have leave available in order to be eligible for the additional buyback. Use of vacation and management leave during the time between the notification and the employee's retirement date will not be counted toward the required notification periods in the schedule above. **Employ_ees_.r_etiring _at_the_encLof_December-2022_ea❑-q.ualif.y.for this benefitif_they_.give_. the City notice within one (1) pay period of City Council adoption of the MOU. SECTION 21: NATAL AND ADOPTION LEAVE WITHOUT PAY The City shall provide employees up to four months natal and adoption leave for the birth or adoption of a child including the paid leave as outlined below; such leave shall be pursuant to the provisions of the California Pregnancy Disability Act ("PDA"; California Government Code section 12945), if applicable. The City's PDA policy is incorporated herein by reference. Employees on this leave of absence without pay beyond the four - month period will be responsible for the payment of medical, dental and optical premiums to keep the coverage in force during the leave of absence. SECTION 22: NATAL AND ADOPTION LEAVE WITH PAY Employees are granted up to 80 hours natal and adoption leave with pay for the birth or adoption of a child, however, use of the 80 paid hours does not extend any time charged under FMLA or CFRA. Any paid time required beyond this initial 80 hours must be charged to sick leave, vacation, compensatory or floating holiday time. Effective the first full pay period in July 2022, employees are eligible for an additional 40 hours of paid Natal and Adoption Leave for a total of 120 hours. This is part of and does not add to leave time allowed by Federal or State leaves. 13 SECTION 23: WORKERS COMPENSATION LEAVE Any employee covered herein who is receiving disability payments under the "Workers --- — Compiensatiorr-Act-of-CelifoTnW'-foT-on=the-job injuries-sustain-ed-whit"ngaged-in-th-e performance of duties of any such City position, shall receive from the City during the first three months of such disability absence, payments in an amount equal to the difference between the disability payments received under the Workers Compensation Act and the employee's full salary. Such payments by the City should be made without any deduction from accrued sick leave benefits. The City's obligation for such payments shall commence on the first (1st) day of such disability absence. In the event the employee's disability absence should exceed three months, an employee shall be allowed to supplement the Workers Compensation benefit received under State law with available accrued sick leave, accrued vacation leave or accrued compensatory time. The total number of leave hours, along with the Workers Compensation benefit, shall not exceed the employee's base pay for each day of the leave. For this purpose, accrued leave hours can be used in one -hour increments. SECTION 24: MILITARY LEAVE Employees required to serve military leave will be compensated pursuant to the Military and Veterans Code. To qualify for compensation the military orders must be submitted ------ -to the -supervisor prior to their-tour-of-duty-and--must-be-attached--to-th-e-timecard-for that - pay period. SECTION 25: MILITARY SERVICE BUY BACK Employees have the option for military service buy back at the employee's expense. SECTION 26: TUITION REIMBURSEMENT FOR APPROVED COLLEGE/ UNIVERSITY COURSES Reimbursements by the City of the following enumerated college and/or university course expenses shall not exceed two thousand three hundred dollars ($2,300.00) during any fiscal year. Eligibility for said reimbursement in an amount not to exceed $2,300.00 in any one fiscal year shall be contingent upon a determination by the employee's department head or his designee that all of the following conditions precedent exists: A. Expenses shall be incurred as regards coursework undertaken at a college or university that is licensed/accredited by the State of California, and Colleges and Universities accredited by any of the six regional higher education accreditors in the United States. 14 B. The applicant for reimbursement shall present to the Personnel Department documentation -prepared -by the-accredit,editicensed-coHege-o-=university--which evidences the applicant's receipt of a grade of "C" or "pass" in a pass/fail class. As regards each class for which reimbursement is sought (where an employee is simultaneously enrolled in multiple approved classes and does not receive a "C" or "pass" in any one or more of such classes, the amount of expenses subject to City's reimbursement shall be reduced and/or as', appropriate, pro -rated to reflect no reimbursement being made for expenses related to classes where the minimal grade was not received). C. Eligibility for reimbursement for said expenses shall be confined to either: 1) those courses that in and of themselves consist of curriculum which is predominately related to the development of skills reasonably anticipated by the City to enhance the applicant's job performance (by means of a non -inclusive example only, art classes would not qualify for reimbursement); or 2) where the employee has declared a major that is job -related, as set forth in this Section C, to those classes which must be completed as a condition precedent to successful completion of the course of study in the selected major. reimbursement_ upon completion of coursework_shall be predicated upon the employee's- department head or his designee, making a written determination prior to the affected employee's enrollment in the course(s) for which reimbursement is later sought, that the coursework is offered by an accredited college or university and that the above -described job nexus does exist. The determination of the City Manager or his designee in such regards shall be final. E. The costs which shall be subject to reimbursement are limited to the following: 1) tuition; 2) books; 3) supplies; 4) parking; and 5) laboratoy. In addition to all other conditions precedent to reimbursement set forth in this section, prior to reimbursement being approved, written receipts shall be provided to the Personnel Department and shall evidence each expenditure for which reimbursement is sought. F. CERTIFICATIONS AND RECERTIFICATION& The City will pay for the cost of any required certifications or recertification required of employees to maintain their positions. Required certifications must be outlined in an employee's specification classification. Deputy City Managers with the approval of the City Manager can add to but not eliminate certifications and recertifications that Departments will cover the costs for employees to maintain. Any additions by a Deputy City Manager must be applied equally to all employees in that classification. 15 SECTION 27: RECOVERY OF PROFESSIONAL DEVELOPMENT COSTS The City may pay the cost of training and certificate programs, up to $10,000, for individual ioyees-that-are-not-required- -to-maintain--their-positions-with-the-goal-of-providing---- -- additional development opportunities for employees. Employees can request that the City pay the cost of such training and certifications. The Department Director and/or Deputy City Manager, with the approval of the City Manager, may approve these requests, subject to budget availability. If an employee requests participation in a training or certificate program with a registration cost of $2,000 or more, the employee will be required to repay the cost of that training or certificate if they leave City employment within 4 years of the registration for that program. One -quarter of the amount owed is forgiven each year. The employee must sign an agreement indicating that any outstanding amount can be deducted from their final paycheck upon separation any outstanding amount is due at separation. This benefit does not pertain to professional conferences related to an employee's ongoing continuous learning, which are routinely budgeted within a department's budget. SECTION 28: ANNUAL PERFORMANCE REVIEW MODIFICATION -----Annual performance -review- replaced -with -professional -development .plan and -at -- ongoing coaching check -ins a year. The City will form a committee of all bargaining groups who have agreed to change from an annual performance evaluation to an annual professional development plan effective July 1, 2022. The committee will review the form(s) and processes not defined here for employees and their supervisors to develop the annual plan. Training as well as handouts will be provided to employees and supervisors to assist with the professional development plan and yearly coaching conversations. The City will review the form(s) and process with this committee at least every three years to assure their usefulness for employees and supervisors. New EMG employees are eligible to receive a merit increase during their first year with the City and promoted EMG employees are eligible to receive a merit increase during their first six -months in their new role. They would then be -eligible for the development plan review increase as long as their first -year or six-month anniversary respectively was prior to the end of November (ex. A New employee hired in March through November would be eligible for the upcoming February increase. An employee hired in December to February would have to wait for the following February for another increase). Each November, employees and their supervisors will work together to develop the Professional Development, Plan which must be completed by the employee and supervisor by the end of the second full week in December of every year. Plan timeline: • First and Second Week of November- Employee fills out their "My Action Plan." R • Third and Fourth week of November— Employees and Supervisors work together on the Plan, and Supervisors reviewthe_ --plans with their Managers or who theirV Department determine. v -- - -•-Remainder-of-Novemberthroug r-se-coed-week-of-De-cember -Supervisors-finalize the Plan taking into account any input which their supervisors provided and go over the Plan with the employee before submittal. Upon submission of the completed Plan in December (as outlined in the timeline above), employees not at top step are eligible for a merit increase of 3%, but no greater than top step. The change will be reflected in the first full pay period the following February. Employees at the top step of their salary range will be eligible to receive a stipend of $500.00, paid in conjunction with the check from the first full pay period in February. There is no retroactivity for Plans not timely submitted. Employees on a performance improvement plan as of December will not be eligible for a merit increase or stipend. The current performance evaluation system will end on June 30, 2022, with any increase from then on being part of this new once a year -system. If any employees below top step have overdue evaluations as of June 30, 2022, they will automatically receive a 5% merit increase for any outstanding evaluation backdated to when the evaluation was due. These automatic merit increases cannot exceed top step of the employees, salary ranges. Article 29: SEVERANCE All Executive employees are at -will employees who may be terminated with or without cause, and who have no appeal rights. Executive employees with over one (1) year of continuous employment with the City from July 1, 2022, who are terminated, will be eligible to receive severance pay of 90 calendar days of their base salary if the terminated employee voluntarily executes a Compromise and Release Agreement, which includes a waiver of all claims against the City and/or challenges to their termination, within ten (10) calendar days of receiving notice of termination. Executive employees with over five (5) years (60+ months) of continuous employment with the City from July 1, 2022, who are terminated, will be eligible to receive severance pay of 120 calendar days of their base salary if the terminated employee voluntarily executes a Compromise and Release Agreement, which includes a waiver of all claims against the City and/or challenges to their termination, within ten (10) calendar days of receiving notice of termination. Employees are not required to execute the Compromise and Release Agreement since it is an agreement, and its execution is totally voluntary on the part of the employee. However, it is a condition of receiving the severance pay. The severance pay is consideration for the Agreement. 17 19 Section 30: SENIOR DEPARTMENT HEAD ADDITIONAL DUTIES PAY Department Heads who work and provide guidance during the transition of a new — Departt-Head--within-their-Department-a-r-e-dioble-a-receive $2,600-a-year-($1-00 per pay period) in Senior Department Head additional duties pay for taking on the added responsibilities of assisting the new Department Head while retaining the duties of their current position. SECTION 31: 4/10 WORK WEEK City Hall operates on a 4/10 work week, hours 7am to 6pm, Monday through Thursday. Remote facilities operate on a 40-hour work week of varying days and times. SECTION 32: DIRECT DEPOSIT All new bargaining unit members are required to enroll in direct deposit. Vacation buyback payouts can be by paper check. SECTION 33: BI-LINGUAL PAY Employees who qualify for bi-lingual pay will be provided $50.00 per month. SECTION 34: TEAM RC APPAREL The City will provide all bargaining unit members a Team RC shirt at least once per fiscal year at a cost not to exceed $50. For the City of Rancho Cucamonga: City Manager May H , 2ozz. Date For the Executive Management Group: JenlfeVZGracia Ex cutnagement Group Representative 15 I Z ��- Date 18