HomeMy WebLinkAbout65D - AGMT - AMEND CM AGMTCITY COUNCIL MEETING DATE:
JANUARY 20, 2015
TITLE:
SECOND AMENDMENT TO AGREEMENT
WITH THE CITY MANAGER (STRATEGIC
PLAN NO. 7)
7z
CITY MANA ER
,.,
25 01
❑ As Recommended
❑ As Amended
❑ Ordinance on 18' Reading
❑ ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
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Authorize a second amendment to the employment agreement with the City Manager to provide
additional benefits that are in line with those received by all other Executive Managers.
On August 5, 2013 the City authorized the appointment of David Cavazos as City Manager
pursuant to the attached employment agreement. Section 2.2.1 General Benefits, states in part
"City Manager shall receive all such other benefits that are applicable to Executive Managers of
the City ".
The City Council has recently authorized changes to the benefits for Executive Management as
follows:
Reconfiguration of the Retirement Health Savings Plan (RHS) to convert the 1.75% City
Medical Retirement Subsidy Plan contribution into a 1.25% base pay increase, which will
then be deposited into individual employee RHS accounts.
A 401 (a) deferred compensation plan available to Executive Managers, as permitted by
law, should City Council adopt such a plan in the future. Under this plan, an Executive
Management employee, at his or her sole discretion, may deposit into the City's 401(a)
plan a portion of his or her compensation up to the maximum amount permitted by law.
There will be no City contribution into this plan.
• Executive Management shall be eligible to receive the same stipend for use of a personal
phone or tablet in lieu of City - issued equipment at the same level afforded to other
management employees.
65D -1
Second Amendment to City Manager Employment Agreement
January 20, 2015
Page 2
This amendment to the employment agreement with the City Manager will make available the
RHS and 401(a) benefits, as he has elected not to accept the personal equipment stipend.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #6. Provide a
positive workplace environment that supports the health of its employees and celebrates its
success and goals.
FISCAL IMPACT
There is no anticipated cost to these benefits as the cost of the 1.25% salary increase to be
deposited into the RHS is offset by the elimination of the 1.75% Medical Retirement Subsidy Plan
contribution. The participation in the 401(a) plan is voluntary and funded by employee
contributions.
Francisco Gutierrez
Executive Director
Finance &Management Services Agency
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CITY OF SANTA ANA
SECOND AMENDMENT
TO THE CITY MANAGER EMPLOYMENT AGREEMENT
1. PARTIES AND DATE
This Second Amendment to the City Manager Employment Agreement ( "Second
Amendment ") is made and entered into as of January 20, 2015 by and between David
Cavazos (hereinafter referred to as the "City Manager" or the "Employee ") and the City
of Santa Ana (hereinafter referred to as "City "). City and City Manager /Employee are
sometimes referred to individually as "Party" and collectively as "Parties" throughout this
Second Amendment.
2. REcITALs
2.1 Agreement and First Amendment On August 5, 2013, City and Employee
entered into an employment agreement entitled "City Manager Employment Agreement'
(the "Agreement'), setting forth the terms and conditions for City Manager services to be
provided by the Employee to the City. On September 2, 2014 City and Employee
entered in a First Amendment the Agreement a copy of both the Agreement and First
Amendment are attached hereto as Exhibit A to this Second Amendment.
2.2 Second Amendment City and Employee now desire to amend the
Agreement for the second time in order to update and provide for certain executive level
benefits related to a health savings plan and a 401(A) plan.
3. TERms
3.1 General Benefits. Section 2.2.1 (General Benefits) of the Agreement is
hereby amended by Including a new Exhibit A to the Agreement. A copy of which is
attached and incorporated herein by reference as Exhibit B to this Second Amendment.
3.2 Remaining Provisions. Except as amended by the First Amendment or
this Second Amendment, all provisions of the Agreement shall remain in full force and
effect and shall govern the actions of City and Employee under this Second
Amendment From and after the date of this Second Amendment, whenever the teem
Agreement appears in the Agreement, it shall mean the Agreement as amended by
this Second Amendment.
3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and
agree that they have reach received adequate and independent consideration for the
performance of the obligations they have undertaken pursuant to this Second
Amendment.
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3.4 Counternarts. This Second Amendment may be executed in
duplicate originals, each of which is deemed to be an original, but when taken together
shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the Parties have executed this Second Amendment to the
City Manager Employment Agreement as of the day of January 20, 2015.
Soni Caitralho, Best Best & Krieger
C' Attomey
By. Miguel A. Pulido, Mayor
ATTEST
Ji
is
Maria D. Huizar, Clerk of the Council
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Exhibit A- Copies of Original Employment Agreement and First Amendment
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a- ao7s-l1a
cITY OF SANTA ANA
Crff MANAGER EMPLOYMENT AGREEMENT
This City Manager Employment Agreement ( "Agreement ") is entered into as of
the 5th day of August, 2013 (the "Effective Date"), between the City of Santa Ana (hereinafter
referred to as the "City ") and David Cavazos (hcreinafrar referred to as the "City Manager" or
the "Employee "). City and City Manager/Employec are sometimes referred to in this Agreement
as "Party" and collectively as "Parties,"
RECITALS
WMREAS, the City Council of the City desires to appoint and employ
Employee as City Manager pursuant to the Charter of the City of Santa Ana ( "City Chartor"),
and
WHEREAS, the Employee desires to accept the appointment as the City Manager
of the City, and
WBEREAS, it is the desire of the City Council, and Employee to set Forth certain
bonefits, establish Certain conditions of employment and to set certain working conditions of the
City ManhM in an EmploymemAgreement.
NOW, THEREFORE, the above named Parties hereby mutually agree and
promise as follows:
1. Terra /Automatle Annual Renewal..
This Agreement shall be deemed effective for a three (3) year term beginning on
October 21, 2013 and terminating on Ootober20, 2016, unless terminated earlier in aoodrdance
with Section 9 hereof. This initial three (3) year term will, pursuant to the provisions below,
automatically extend fifotn year to year unless City Council takes action to prevent the automatic
extension. to the event the City Connell does toot want this Agreement to automatically extend,
it will provide written notice to City Manager that the Agreement will not be extended and
consequently will terminate as of the end ofthe ctareat term.
If action is not taken by City Council within three (3) months before the
expiration of the Initial term of this Agreement on October 20, 2016, this Agreement shall on
July 20, 2016, automatically extend for one (1) year from October 21, 2016 until October 20,
2017. For each succcang year that the City Council does not take action to extend or terminate
this Agreement by three (3) months before the then current end of the Agreement, the Agreement
shall automatically extend for an additional year. For example, if action is not taken by the City
Council to extend or terminate this Agreement by July 20, 2017, the Agreement shall on that date
automatically extend for one (1) year from October 21, 2017; to October 20, 2015, and if the
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City Council doesn't take action to extend or terminate this Agreement by July 20, 2018, it will
automatically extend for one (1) year from October2l, 2018 to October 20, 2014,
2. Compensaiden.
2,1 Salary
(a) Annual Salary
City agrees to pay City Manager, and City Manager agrees to accept from City, as
compensation for servicos rendered by City Manager pursuant to this Agreement, an annual base
salary, commencing on the E£.fective Date, in the amount of Three Hundred Fifteen Thousand
Dollars ($315,000,00, hereinafter "Annual Base Salary"), payable in installment payments in
the same manner and at the same tunes as salarlcs of other executive managers of the City are
paid,
The term, "Annual Base Salary" as used in this Agreement shall also include any
such 4ustments approved by the City Council other than payments not eligible to be added to
the City Manager's Annual Base Salary pursuant to the terms of any applicable salary resolution
of City, The term "Monthly Base Salary" as used in this Agreement shall mean a sum of money
equal to one - twelfth (1 /12) of City Manager's Annual Base Salary as defined herein,
(b) Deferred Compensation.
City Manager shall receive as additional compensation added to his base salary
and deducted therefrom pursuant to Government Cade Section 53214, deferred compensation in
the maximum, annual amountpormitted pursuant to Section 457 of the Internal Revenue Code at
the time of execution of this Agreement, said amount consisting of the maximum Standard
eontribution mid the Age 50+ contribution.
(c) Performance Bonus
Each fiscal year, commencing with the fiscal year that starts on July 1, 2014, the
City Council may grant to City Manager a performance bonus. Whether or not to grant a bonus
and the amount of any such bonus shall be in the solo diserction of the City Council. The
decision by the City Council regarding the performanco bonus shall be made for each fiscal year
at the time the City Council is providing the performance evaluation of City Manager required
by paragraph 3 of this Agreement,
It is the understanding and intent of the City and City .Manager that performance
bonuses are not reportable to the California State Public Employees Reth°ement System
( "CalPERS'), and are not to be included in the calculation of City Manager's retirement
allowance. Performance bonuses are not added to the annual base salary,
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i
12 Benefits
2.2.1 General Benefits
In addition, and except as otherwise specified herein, City Manager shall receive
all such other benefits that are applicable to executive managers of the City as of the Effeotivo
Date of this Agreement, including but not limited to medical insurance, dental insurance, long
tetra disability insurance, life Insurance, sick leave, holidays, vacation, bereavement and family
illness leave, physical examinations, participation in retirement system and participation in the
City's retiree medical program in the same maraeet as other City executive managers as
described in Exhibit 'IN' attached hereto.
2.2.2 Initial Sick Leave Bank
Upon employment with City, City Manager shall be provided with an initial sick
leave bank containing 80 hours of usable sick leave. This initial sink leave bank of 80 hours
shall be for use by the City Manager under the applicable City policies and State and pederal
laws only, and shall not be subject to any type of cash -out prevision at termination a$ provided
under City policies partaining to the regularly snoutnulated employee sick leave balances.
2.23 Initial Vacation Allowance
Capon employntont with City, City Manager shall be awarded Bo hours of vacation
leave, City Manager Shall accumulate additional regular and management vacation hours in the
same manner as other City exeoutdv® managers;
2.14 Longevity vacation
City Manager shall accumulate Longevity Vacation at the maximum acaruai rate
for an employee having completed 20 years of service with the City,
2.2,5 C&IPERS Membership
As a "new amployee" under CaIPERS, City Manager will be enrolled in the 2% at
age 62 benefit formula and shall be responsible for paying the corresponding employee
contribution per C.aIPERS requirements as they exist today or as may be amended by the
legislature, As of the effbotive date of this Agreement the applicable contribution rate is 6.75%
on the first $136,440,00 of base salary,
2.2.6 Relocation Benefit
City Manager shall ba provided reimbursement for the actual costs required to
reinnata to California, Le,, moving expenses, not to exceed the sum of $7,500.00. Said
reimbursement may include the costs of up to 2 visits to Orange County prior to moving to lmate
suitable housing,
46633,010 OM 18043.4
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2.2.7 Housing Allowance
11 is tmdetstood that City Manager Ictonds to reside in the City of Santa Ana
during his employment as City Manager, and that initially he will require a temporary residence
while he is purchasing a permanent residence in the City and selling his existing residence in the
City of phoenix. Hunthar, it is understood that the City Council desires that City Manager reside
within the City of Santa Ana and believes that such residence would be of benefit to the City and
' enhance CIty ManagjWs performance as City Manager, and therefore, the City will pay City
Manager the following allowances and assistance in order to efi'set the costs and expenses he
will incur in establishing a temporary resldcnoe in the City, selling his existing phoenix
residence, acquiring a permanent residence in the City and moving both his temporary and
permanenteasideneea:
(a) Temporary Housing Assistance
City Manager shall be provided with reimbursement for the actual costs of
temporary housing while City Manager seeks and obtains permanent Santry Ana housing in a sum
not to exceed $3,000 par month and for a period not to exceed 12 months from the date of this
Agreement, prior to the 12 month maximum duration, said Temporary Housing Assistance shall
ceaso upon City Manager closing escrow on the purchase of a local residence or the execution of
a lease on a non - temporary residence.
(b) Housing Allowance
Upon the termination of the Temporary Rousing Assistance referenced above,
City Manager shall be provided with a housing allowance in the sum of $2,00000 per anonth for
the duration of the balance of the 3 year term of this Agreements Said housing allowance shall
be eontingentupon City Managerresiding withinthe City,
3. performance Evaluation.
The Mayor and the City Council are responsible for setting performance goals on
an annual basis in consultation with the City Manager, The City Council shall review and
discuss City Manager`s perionnsncc in or around July of each year commencing in 2014.
However, Employee acknowledges and accepts the fact that the City Council as Employer has
the right to schedule an evaluation session at any time in accordance with the notice and all
other requirements of the Brown Act.
4. Bonds.
City shall bear the full cost of any fidelity or other bonds required of City
Manager under any law or ordinance.
asa3s,araarnrusoas.a 4
65D -9
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S. Transportation and General Business Expenses.
5.1 Vehicle Provision
City shall provide City Manager with a vehicle, as well as Orel, maintenance and
liability insurance for said vehicle, for City Manager's use in commuting In the parformanoe of
his employment duties and for Incidental personal use.
9.2 General Business Expenses
(a) City agrees to budget and pay for professional dues and subscriptions for
City Manager necessary for his continuation and partiolpation In national, regional, state and
local boards, task - forces, conferences and meetings, associations and organizations desirable for
City Manager's continued participation, professional growth and advancement, and for the
bonefit of the City,
(b) City agrees to budget and pay for travel and subsistence expenses of city
Monger fbr professional and ofiflolal travel, board and task -kroe meetings, and occasions to
adequately continue the professional development of City Manager and to pursue necessary
official functions for City.
(c) City shall provide City Manager with the necessary technology tools,
Including and not limited to computer, software, 0011 phone and such other technologies as
required by City Manager to perform his duties and to maintain communications.
6. Abuse ofOffrce or Position.
Pursuant to Government Code sections 53243, 53243.1 and 53243.2, which
became effective on January 1, 2012, if City Manager is convicted of a crime involving an abuse
Of his office or position, all of the following shall apply: (1) if Martagor is provided with
administrative leave pay pending an investigation, City Manager shall be required to fully
reimburse City such amounts paid; (2) if City pays for the criminal legal defense of City
Manager (which would be in its $010 discretion, as it is generally not obligated to pay fior a
criminal dofense� City Manager shall be required to fully reimburse City such amounts paid; and
(3) If this Agreement Is terminated, any severance Pay and severance Benefits related to the
termination that City Manager may rcoeive-flu n City shall be fully reimbursed to City or void if
not yet paid to City Manager. For purposes of this Section, abuse of office or position means
olthor: (1) an abuse of public authority, including waste, fraud, and violation of the law under
color of authority; or (2) a crime against public justice, including, but not limited to, a crime
described In IN* 7 (commencing with Section 92) of Part 1 of the Penal Code.
7. Notices.
Any notice required or permitted by this Agreement shall be in writing and shall
be personally served upon the other Patty, or sent by United States Postal Service, postage
prepaid and addressed to the appropriate, Party as follows:
45655.01000\7118093,9 $
65D -10
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If to City, City Attorney
City of SantaAna
20 Civic CenterPiaza
Santa Ana, CA 92702
if to City Manager: David Cavazos
City Musser
City of SentaAna
20 Civic Center Plaza
Santa Ana, CA 92702
Notice shall be deemed given as of the date of Personal service or upon the date of
deposit in the aurae oftransmission with the United States postal Service,
9,
])sties, Acceptance ofAppoiatment ,Hoursof Work, Regional
Liaison.
8.1 Duties
to perform the functions and agrees
s specified inn the City Charter Manager City of Santa.Ana, and to
perform such other legally permissible dudes and functions as the City Council may ffom time to
HMO assign
8,2 Acceptance of Appointment
Employee hereby accepts the appointment as City Manager of the City of Santa
Ana subject to all terms and conditions set forth in this Agreement,
8.3 Hours of Work
It is recognized that City Manager devotes a great deal of time outside the normal
City pull oftloe -hours schedule, and to that end, he shall be allowed to establish his work
schedule, taking into consideration that he is responsible for the supervision of employees and
has responsibilldos to serve all departments of the City,
9. Termination.
9.1 At -Will Employee
Employee shall serve at the will and pleasaro of the City Council, Nothing in this
Agreement shall prevent, limit or otherwise hiterfero with the right of the City Council to
suspend from duty, remove from office or otherwise terminate the services of City Manager at
a{y time, at the sole discretion of the City Council, as provided in the City Charter: This
Agreement maybe terminated as follows,
a sras,a:0007:tsnas,a
65D -11
9.2 Termination- Council Vote
remove the
As City Manager by motion adopted by5the Affirma �votesrOf t least two-thirds (2 13) of the
members of the City Courrcil. At Ieast thirty (30) days before such removal shall become
effective, the City Council shall by resolution adopted by the affirmative votes of at least two -
thirds (2/3) of the members of the City Council state the reasons in writing for the removal of the
City Manager,
9.3 Termination . Change in Form of Government
If any of the governing policies pertaining to the role, power, duties, authority, or
responsibilities of City Manager are amended to substantially change City's form. of government,
either by action of the City Council, a duly passed initiative measure or state legislation, City
Manager shall have the right to terminate the Agreement,
9.4 Reduction of Salary or Benefits
If the City Council reduces the Annual Base Salary or any other financial benefit
of the City Manager in a percentage that is greater than the average reduction of base salary for
all executivemanagers of the City, such action shall constitute a tormination of this Agreement,
93 Resignation
City Manager may voluntarily resign his position as City Manager, after giving
City at least sixty (50) days written notice prior to the offeotive date of such resignation, unless
such notice is waived in whole or part by the City Council, In the event the City Manager
resigns from his employment with City, the City Manager shall not be emitted to any Severance
Pay.
9.5 Severance
In the event this Agreement is terminated pursuant to any one of Sections 9.2, 9.3
or 9.4 of this Agreement, the City Manager shall receive a severance payment, in a lump sum,
equal to twelve (12) months of City Manager's then monthly Base Salary ( "Severance Pay„) in
awordattoo with the provisions of this Agreement. A Severance Pay payment shall be his sole
mmody for termination under sections 9.2, 9.3 or 9.4 of this Agreement. The Severance pay
shall be paid after the City Manager exaoutes a waiver and release agreement prepared by the
City Attorney in a form substantially similar to that one set forth as Exhibit "B" to this
Agreement.
Notwithstanding any provision of this Agreement to the contrary, City may terminate City
Manager's omploymcnt for cause at any time and without prior notice, and if City Manager is
terminated for oaus% he shall not be entitled to payment of severance compensation or any other
compensation or damages. "Cause" shall inolude the foliosvingxaasons : _
turpitude. (a) Conviction of a crime, whether misdemeanor or a folony, involving moral
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65D -12
For purposes of this paragraph, apiea of nolo comendere shall also be considered a conviction.
(b) City Manager is determined by a court of competent jurisdiction or the
State of California Fair Political Practices Commission to have knowingly and unl
Agreement.
11. Intentionally Left Blank
12. Cnmtnnnicatlons in the Event of Termination
12.1 In the event the City terminates Employee for any reason or no
reason, the City and Employee agree that no member of the City Council or City employees
Ming on behalf of the City shall make any written, oral, or electronio statement to any
member of the public, the press, or any City employee concerning the Employees termination
except in the form of a joint press release or atatement, which is rnutually agreeable to the
City and the Employee. The joint press release or statement shall not contain any text or
irnbrmation that is disparaging to either Party. Either Party may verbally repeat the
substance of the joint press Meese or statement in response to any inquiry.
13. Indemnification
133 City shall defend, hold harmless and indemnify City Manager against any
tort, pm£esslanal liability claim or demand or other legal action, whether groundless or
otherwise, arising out of any alleged get ox omission occurring in the performance of City
Manager's duties or resulting from the exerolsa Of his judgment or discretion in connection with
the performance of his duties. City Shall not unreasonably refuse to provide for legal
representation at City's expense. Legal representation, provided by City for City Manager, shall
extend until a final determination of the legal action including any and all losses, damages,
judgments, Interests, settlements, flues, court costs, and the reasonable costs and expenses of
logai proceedings, including appeals; and including attorneys' fees, and expert witness fees and
W other trial and appellate costs, and other liabilities incurred, imposed upon, or suffered by
Snob City Manager in connection with ar resulting from any claim, action, suit, or proceeding,
actual or threatened, arising out of or in connection with the performanoo of City Manager's
duties.
13,2 City agrees to pay all reasonable litigation expenses of City Manager
throughout pendency of any City - related litigation to which City Manager is a party, witness or
advisor to the City. Such expense payments shall continue beyond City Managers employment
with the City as long as litigation is pending. P ®st empieysneart, City agrees to pay City Manager
for reasonable consulting fees, travel expenses and odlar costs, wben City Manager serves as a
witness, advisor or consultant to City regarding pending litigation.
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[SIGNATURES ON IiOLLO WING PAi4Ej
65D -14
IN WITNESS WHf QF, the Parties have exaauted this City
Employment Agreement as of the day of August, 2013,
EMPLOYMCITY MANAGER
Da�a Cavazos J(
Maria D, Hulzar ' l
Clerk of the Council
4x3s.omownso97.4 10
APPro1VW as to Form,
1
0 Atto, Carvalho, Hest moy
65D -15
$whibit "B"
9VIeMM AND I A
I, the undorstped, do hereby adltnowlalgo and attest that I have read at,d understood
seetioa 5 >6 of nay ;lnapl0V1mAt FAgM04VAt with the City of SApta Ana atad hereby agree that by
aaoopd ag twelve (12) months Severance Pay 1111he amount of $ (12 x currerd .monthly
base salaky.3, I "a to walve all x glats to Ether claims, temadies, or legal mctibn esainst the
City, its offlf lattd•eraplbyeos.
Ise elaclaaaago for 1OOelpt of the SovOrruaoo Payment, I and any rspresontattvos, helm,
oaceessera, and assigu do boxeby eonspletelyzeleaso and forever dischargo the City of Saute
Ana ad its xdated smites sand theft protean and'fnraner Offir -as, directora, coauacll members,
agaats, etnptoyeas, otfornoys, sera successors (oolleativsly, "Aalaasod Parties") from all olalms,
elghts,.d==ds, aottvyaas, Abli$ attars, ltabllliles, %ad arduees of actlun ofovetykind ad oharactor,
known dr unlo wn, mature or wamatured,.which I may havO now or in the Tatmo arising from
any act or okrilsslan 01' Wtdhion Ocaanrittg Ott or prior to, the data dais waiver is•slgaod whothet•
leased WWI, contraot (cdapress or fmpl ed }, or atop federal, site, or Total law, stsue, or
sogaTation (fxrll %lively, Sao "Itd MA(l CXaime "). Rzloased 0140as shall also include, NO not be
limited td, olalins ft wage$ or Other agmpgnastion duo, sovetAWO pay, batluses, sick leave,
vagWQn pay, life ox'bo t),. losuvanoe, or any otherOingo benefit, •
Rmploya •kaawkaly and vo'lmstarily waives any and all tights or beraefats that be may
now have, or 1n the fdturO may have, under the terms of Swtfoia 1542 of the California Civil
Code,>tWchprovidos as follows:
A OENSAT, RULEAS17 DOES NOT EXPEND TO CLAIMS WMCR THE
CPBDTrOR DOSS NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
PAVOX AT 'n-M TI,TvIE OF EXEMTOO 714E RELEASE, WHICH W
KNOWN BY MM OR X-MX M08T HAVE'MATPBTALLY APYECM HIS
$8TTI,EMENI'Mrfil THE DEBTOR;
By WVallus below, the lknr leyas aafcnowledges that he or she has read and
uaderstnda flail watvor and wolnnts ly and lwowirsglly is waiving his right w1dor
$ocfl a l 54Z its pursue unl<aowa er unahtlohmad oihlms, s' 0ts, demands, act!'ons,
obllgatfons, ilablltties wd-roa'uses•of action of sty hind.
r^'
tnitiais o4°Emp,To�
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65D -16
Employee shall hot filo say 014im, sue or inidete, agaktst any Pvlomotl Party, any
oorapliaaca rVviewy, utloa, or pivoeedius,, or pattiaipato in tho same, lwvidually or as a member
of a 0108, Qndar Gay oautraet (express or implied), ar my fedoml, state, or local law, statute, or
1v9Pl4tionpertGiU lt, any matauer to the ltoloasod Claim.
App Wd astdA y;
ascrso�asbrtatsaas.a l�
65D -17
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A•2014.200
MY OF SANTA ANA
r c + € ♦ ar,
This First Amendment to the City Manager T: Vloyment Agroomont
( "Agreement') is entered into as of the 2' day of September, 2014 (the "Jtffeotive Datell
between the City of Santa Ana (hmWafter refexred to as the ',City") and ,David Cevaros
(hereinafsor rolivrod to as the "City Managee , or the "Bmployae8). City and City
Manager/firnployee era 60MONMes roferred to in this Agroameut as "Fad' and collectively as
Tarries"
."
VORBAS, on August 9s', 2019 the City Council of the City appointed and
employed Employee es City Manager of tins City ptnsnant to the Charter of the City of Santa Ana C City Charter"), and
Wk1WA.S, the Pasties sot forth tae terms and conditions of said City Manager's
eraployMMt in an agreement entiilod the C'' of Santa Ana City Monagor Employment
Agreement (' "Agreemenf° effective that same date, and
WMEAO, the parties desire to amend certain Provisions of &o Agreement as
sat forth hwIt.
'UUiOMFOX0, in 40M14eretion of the covctmnts containod la aid Agreement,
and subicot to all the terms and conditions of said Agreement, the Parties hereto aped as
follows!
Sootion 1,' TXWAUTOMATI.0 ANNUAL rtX:aNEWA ,, assail be deloted an its entirety and
replaced with the following.
1. Torm/Antow atic Annual ltoaewel.
This Agrooment shall be deemed offecdve for a three (9) year term beginning on
October 21, 2014 and terminating on October 20, 2017, anloss terminated earlier in a0oorr#auco
with S00904 rJ hereof•. This ihaae (9) year term will, putmant to the provisio o below,
automatically oxtend from year to year unless City Council tapes action to prevent the automatic
extension, ra the ovorr the City Council does not want this Agreement to automatioally extend,
It wMl provide written notice to City Manager that the Agreement will not be extended and
consegttsn0ywill tomdnate as of the end of the oruroat term.
3T action is not tdvu by City Council within time (9) months before the
expiration of the term of this Agreement on October 20, 2017, this Agreement shall on July 20,
2017, atnotnatlDdy extend for one (1) year from October 21, 2017 until 0owber 20, 2019, For
0094.0=74M MA
65D -18
each succeeding year that the City Council does not take potion to extend or terminate this
Agreement by threa (3) months before the then outtrant end of the Agreement, the Agreement
shall autcunatically extend for an additional year. For example, if action is not taken by the City
Council to axtand or terminate this Agreement by July 20, 2018, the A.geeemout shall on that date
automatically extend for one (1) year from October 21, 2018, to Oetobor 20, 2010, and if the
City Council doesn't take action to extend or wanate this Agreement by Judy 20, 2019, it w111
automatically extend for one (1) year from October 2.1, 2019 to October 20, 2020,
Section -2 1.7, H0119NCr ALLOWANCE, shall be deleted hi its enthoty and ropisoed with
the following:
2.2,7 'klousingAllowanoa
It is 'understood that City Manager intands to reside in the City of Santa Ana
daring his employment as City 1vlane9w, and that initially he will requiro a temporary residence
whilo he is purchasing a permanent residence in the City. ltturther, it is mnd:srstood that the City
Council daA MS that City Manager reside within the City of 9auta'Ana and believes that such
residence would be of benellt to the City'and enhance City Manager's per'Amnance ad City
Manager, and therefore, the City vd" pay City Uanager the following allowances and assistance.
Section 217(b), HOUSING ALLOWANCE, shall be deleted in its entirety and replaced
with the f0liowi0s,
(b)HouWng Allowanoo (Temporary)
UP% the tahnination of the Tompomry Housing Assistanoe •pfovided for in
Section 21.7 (a), City shall pay City Manager a housing allowance in the amotuut of $2,000.00
P* month up until October 16, 2016. Said housing allowaaea shall bo contingent upon City
Manager residing within the City,
EXOapt as bercinaboye amended, all torms and conditions of said Agreement shall
remain in full fordo and a££ect,
IN W1TN3SS WHEREOF, the finites bays executed this First Arnondment to the
City Manager Employment Agreement as of the 2nd day of September, 2014.
EMPLO /CrrY MANAGER
4
David Cavazos
65394.0000140641M
65D -19
ATTEST:
Cleric Of the Counoil
9894,000047406419A
i
J
i L
� rl�
MWstant City Aftomey
65D -20
Exhibit B- Description of General Benefits provided to Executives
The attached draft resolution is to be considered at the
January 20, 2015 City Council meeting, Agenda Item 55A,
0
65D -21
65D -22
RESOLUTION NO. RAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA MODIFYING, REESTABLISHING AND
DELINEATING THE BASIC COMPENSATION AND BENEFIT
PLAN FOR CLASSES OF EMPLOYMENT DESIGNATED AS
UNREPRESENTED EXECUTIVE MANAGEMENT (EM) AND
RESCINDING RESOLUTION NO. 91 -066,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA
ANA AS FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A. Section 1004, Article X of the City Charter of the City of Santa Ana
requires the City Manager to prepare, install and maintain a position
classification and pay plan subject to civil service rules and regulations
and the approval of the City Council.
B. On July 1, 1991, the City Council passed and adopted Resolution
No. 91 -066, re- establishing the Basic Classification and Compensation
Plan for classifications of employment designated as unrepresented
Executive Management (EM) and Middle Management (MM).
C. The City Council has amended Resolution No. 91 -066 on numerous
occasions since its adoption.
D. Pursuant to Resolution No. 81 -075, the Employee Relations Resolution of
the City of Santa Ana, and applicable State law, the City of Santa Ana
certified the Santa Ana Management Association (SAMA) on September
25, 2002, as the majority representative of the Middle Management and
Administrative Management Representation Unit. Hence, the City has
recognized SAMA as the certified majority representative of the full time
employees in said Unit.
E. In an effort to clarify the compensation of unrepresentative Executive
Management (EM) employees, and delete obsolete language related to
unrepresented Middle Management (MM) employees, the City Attorney
recommends reestablishing and delineating the Basic Classification and
Compensation Plan for classifications of employment designated as
unrepresented Executive Management (EM) through this resolution, by
separate resolution reestablishing and delineating the Basic Classification
and Compensation Plan for all represented full -time employees in the City,
including represented Middle Management (MM) employees, and all
represented and non - represented part-time employees, and rescinding
Resolution No. 91 -066.
65D -23
711 'T'i? pity Manager recommends an increase to the Tuition Reimbursement
Program to provide the highest amount that is available to other
represented employees.
C. The City Manager recommends establishing and delineating a Retirement
Health Savings Account for unrepresented Executive Management (EM)
employees and contributing to said account the highest amount that is
available to other represented management employees.
H. The City Manager recommends establishing and delineating a 401(a)
Retirement Savings Account for unrepresented Executive Management
(EM) employees to participate in, at his or her sole discretion.
It is now desired to rescind Council Resolution No. 91 -066 and reestablish
and affect the aforementioned changes.
Benefit Plan. The City Council hereby reestablishes the unrepresented Executive
Management (EM) Basic Compensation and Benefit Plan effective January 1, 2015, to
read as follows:
Unrepresented Executive Management (EM) Basic Compensation and Benefit Plan
Effective January 1, 2015.
Section 1. Executive Management (EM) Classifications and Compensation Plan,
A. Unrepresented Executive Management (EM) Employee Classifications
Assistant City Manager (EM)
Deputy City Manager (EM)
Police Chief (EM)
Executive Director of Community Development (EM)
Executive Director of Finance and Management Services (EM)
Executive Director of Parks, Recreation and Community Services (EM)
Executive Director of Personnel Services (EM)
Executive Director of Planning and Building Safety (EM)
Executive Director of Public Works (EM)
Special Assistant to the City Manager (EM)
B. Schedule of Salaries, A schedule of salaries showing salary rate ranges for
classifications of employment designated as unrepresented Executive Management
(EM), is attached hereto and made a part hereof as though set forth in full herein. The
schedule for unrepresented Executive Management (EM) classifications and effective
dates is listed as follows:
65D -24
Salary
Schedule
Unrepresented EM Classifications
No. Effective Date
Assistant City Manager (EM)
EM -39 01/01/2015
Deputy City Manager (EM)
EM -41 01/01/2015
65D -24
REVISED
Police Chief (EM)
EM -47
01/01/2015
Executive Director of Community Development (EM)
EM -3433
01101/2015
Executive Director of Finance and Management
Services (EM)
EM -3237
01/01/2015
Executive Director of Parks, Recreation and
Community Services (EM)
EM -3437
01/01/2015
Executive Director of Personnel Services (EM)
EM -3833
01101/2015
Executive Director of Planning and Building Safety (EM)
EM -42
01101/2015
Executive Director of Public Works (EM)
EM -3538
01/01/2015
Special Assistant to the City Manager (EM)
EM -37
01/0112015
The unrepresented Executive Management (EM) salary schedule contains numerous
salary rate ranges, each range comprised of fifteen (15) separate rates of pay shown in
monthly amounts. The rate ranges are identified by a two -digit number preceded by the
capital letters "EM" for Executive Management. The separate rates of pay or steps
within each salary rate range are identified by the numbers 1" through "15" inclusive,
with Step 1" being the lowest or minimum rate of the range, Step "8" the middle or
midpoint rate of the range, and Step "15" being the highest or maximum rate.
Terminal Classifications. The capitalized letter "T" shown within parenthesis [i.e., (T)]
next to a classification title signifies a position classification that has been designated as
"terminal" by formal City Council action and, as such, will be deleted from this
classification and compensation plan for unrepresented Executive Management (EM)
classifications of employment when vacated by its last remaining incumbent. No new
appointment may be made to a classification that has been designated as terminal.
Section 2. Special Pay Additives and Additional Compensation Provisions.
Bilingual Skill Pay. Qualified employees who are assigned to positions involving the
regular and frequent use of bilingual skill in both English and either Spanish,
Vietnamese or any other language designated by the City Manager will be paid in the
highest amount as available to represented management employees. Incumbents of
positions where bilingual proficiency is essential to the performance of duties and
responsibilities of a critical and /or emergency nature, or of positions where bilingual
public contact is a major, essential or integral element of the work being performed, will
be paid in the highest amount as available to represented management employees.
Section 3. Administration and Applicability of the Compensation Plan
A. Unless specified otherwise herein, unrepresented Executive Management (EM)
employees will be subject to the same changes in compensation plan provisions,
including but not limited to, sick leave maximum accrual; bereavement leave; holidays;
longevity vacation cash out; health and dental insurance; access to participation in the
City's Vision Plan; retirement; Retirement Health Savings Plan; and work week
schedule, as provided in the highest amount as available to represented management
employees on or after January 1, 2015.
B. Compensation Plan Implementation. Upon implementation of the basic salary
schedule set forth in Sub - section 1.B. of this Resolution, a current incumbent of an
65D -25
Executive Management (EM) classification listed herein above will be placed at the
monthly rate in the assigned salary rate range which matches the incumbent's
assigned base monthly salary rate on the day preceding the effective date of this
Resolution,
C. Hiring Pay Policy. A newly hired Executive Management (EM) employee will be
compensated at a monthly rate within the lower third of the salary range (Steps 1
through 5) for his /her job classification as authorized by the appointing authority. When
economic conditions, unusual employment conditions, or exceptional qualifications of a
candidate for employment indicates a higher rate would be in the City's best interest,
the City Manager may authorize compensating the new employee within the middle
third of the salary range (Steps 6 through 10) but the higher starting salary will generally
not be above Step 8.
D. Rates of Pay for Temporary and Part-Time Work. When an employee is hired in
an Executive Management (EM) classification on a temporary basis, which is defined as
employment with an anticipated duration of less than six (6) months, or an employee is
hired in an Executive Management (EM) classification on a part-time basis, which is
defined as employment of forty (40) hours or less per semi - monthly pay period, the
employee will be paid at a rate per hour for actual time spent in the duties of his or her
employment. Rate per hour will be computed to the nearest whole cent by dividing the
classification's standard monthly rate of compensation by 173.33, A computation
resulting in exactly one -half (1/2) cent will fix the rate at the next higher whole cent,
E, Service. The word "service" as used in this Resolution will be deemed to mean
continuous, full -time service in the classification in which the employee is being
considered for salary advancement, service in the higher classification or service In a
classification allocated to the same salary rate range and having generally similar
duties and requirements. Employees hired after the first (1$) working day of the month
will not be credited with "time in service" for that month when determining the length of
service required for salary step advancement, A lapse of service by an Executive
Management (EM) employee for a period of time longer than ten (10) calendar days by
reason of resignation, quit, or discharge, will serve to eliminate the accumulated length
of service time of such employee for the purpose of this Resolution.
F. Appointment or Promotion of Current Employee. An employee who is appointed
or promoted to an Executive Management (EM) classification from a represented
management or non - management classification of the City service will be placed at a
salary rate in the Executive Management (EM) salary rate range which provides a
minimum of a five percent (5 %) pay increase.
G. Reduction in Pa v. An Executive Management (EM) employee may receive a
reduction in salary on the basis of unsatisfactory work performance, conduct or other
reasons at the discretion of the City Manager.
H. Temporary Upgrade to an Executive Management (EM) Classification. Regular
employees of the City who are incumbents of classes of employment not included in this
Resolution and who are temporarily upgraded to an Executive Management (EM)
classification will receive a five percent (5 %) increase or the minimum rate of the
65D -26
Executive Management (EM) salary range, whichever is higher, in accordance with
current upgrade provisions.
1. Reallocation of Salary Rate Ranges. When an employee is in an Executive
Management (EM) classification which is reallocated from the current salary rate range
to a different salary rate range, the employee will retain the same salary step he or she
held prior to the reallocation. The employee will retain credit for length of service in
such salary step towards advancement to the next higher salary step.
J. Y Rating. In special circumstances the City Manager may approve
compensating an employee in excess of the salary range of the classification to which
he or she is assigned by "freezing" the employee's salary at the current rate. In such
cases, incumbents will not receive step increases or current and future general "across -
the- board" salary adjustments scheduled for other classes until the salary level is equal
to or greater than the "frozen" salary for the assigned classification,
K. Z- Rating. A Z -Rate is a special salary rate established by the City Manager
which allows an employee who has been reclassified to a classification at a lower salary
rate range to be paid at a rate of pay higher than that assigned to his or her reclassified
position title for a specified transition time period.
Section 4. Health and Welfare Benefits
The following optional insurance benefits available to Executive Management (EM)
employees are provided through a cafeteria plan adopted in accordance with the
provisions of Internal Revenue Cade § 125.
The City will contribute to the cafeteria plan in the highest amount as available to
represented management employees. Since the City contracts with CaIPERS for
medical insurance, the amount described above will include the CalPERS statutory
minimum paid by the City.
A. Medical insurance. Eligible Executive Management (EM) employees may select
any of the medical insurance plan options offered by CaIPERS.
B. Dental insurance. Eligible Executive Management (EM) employees will have the
ability to select either an HMO or PPO dental insurance plan.
C. Vision insurance. Eligible Executive Management (EM) employees will have the
ability to select vision insurance coverage through the City's insurance provider.
D. Cash -in -Lieu of Benefits. Executive Management (EM) employees will be eligible
to receive cash (subject to taxation as wages) through the cafeteria plan if they either
opt -out of receiving one of the optional benefits provided through the plan or if they
choose optional benefits that do not cost as much as the maximum dollar amount they
receive through the plan.
E. Employee Contributions for Benefits. If an Executive Management (EM)
employee chooses optional benefits whose aggregate premium cost exceeds the
65D -27
maximum City Contributions to the Cafeteria Plan, the City will automatically deduct the
excess premium amount on a pre -tax basis from the employee's regular paycheck.
F. Disability Insurance. The City will pay one hundred percent (100°/x) of the
premium cost for a long -term disability insurance plan under the policy it maintains on
behalf of its employees in order to provide Executive Management (EM) employees a
monthly benefit of sixty -six and two- thirds percent (66 2/3) of base monthly salary
(insured payroll), less offsets contained in the existing plan, to a maximum monthly
benefit of $5,000.
G. Life Insurance and Accidental Death & Personal Loss (AD &PL). The City will pay
one hundred percent (100 %) of the premium cost for term life and AD &PL insurance
coverage under the policy it maintains on behalf of its employees in order to provide
Executive Management (EM) employees with life and AD &PL insurance coverage in an
amount equal to three times the employee's annual rate of salary to a maximum of
$300,000 provided Executive Management (EM) employees can provide evidence of
insurability for coverage above $150,000 if so required by the terms and conditions of
said term life and AD &PL insurance policy.
In the event an Executive Management (EM) employee is determined to be ineligible for
said insurance coverage, the City will attempt to provide as much coverage as may be
obtained at a reasonable cost without having to provide evidence of insurability
Section 5. Leave Accruals and Cash -Out Provisions.
A. Paid Holiday Time Off. Executive Management (EM) employees are not required
to appear for work, except in emergencies, and will receive payment at his or her
current base salary rate for the following twelve (12) holidays during each year:
January 1s4; third Monday in January; third Monday in February; last Monday in May;
July 4th; first Monday in September; November 11th; Thanksgiving Day and the day
immediately following (Friday); Christmas Day; the last working day before Christmas
Day (unless Christmas Day falls on Thursday, in which instance the day following
Christmas Day will be observed) and one (1) floating holiday. Any holiday which falls on
Sunday will be observed on the following Monday and any holiday which falls on a
Saturday will be observed on the Friday preceding the holiday.
B. Vacation Time Off. Executive Management (EM) employees will be granted
regular and longevity paid vacation leave on the same basis as provided to represented
employees of the City, with the exception that such affected employees will be granted:
1. Regular vacation with pay at the annual rate of fifteen (15) working days
for each of his or her first and second completed year of service.
2. An additional five (5) working days per year over the regular and longevity
vacation accruals applicable to represented employees of the City. Affected Executive
Management (EM) employees must take at least five (5) consecutive days of vacation
leave each year.
65D -28
EC. mployees.eThe City Managers authorized t Newly-Hired grant to a persuon newly hired by the (EM)
Management
City
to a position designated as Executive Management (EM), longevity vacation credits in
the form of years of service to the City up to a maximum of 20 year. The credits will be
counted as completed years of service with the City for the purpose of calculating
longevity vacation accrual only. The longevity vacation credits will be added to the
years of service actually completed with the City of Santa Ana by the employee to
establish total years of service for the purpose of calculating longevity vacation.
D. Longevity and Vacation Pay Option. Once per fiscal year, Executive
Management (EM) employees will be given the option to receive cash compensation,
computed on a straight time basis, in lieu of up to five (5) working days of earned,
unused vacation benefits set forth in Section B.
E. Sick Leave Credits for New Hires, The City Manager is authorized to grant a
newly appointed Executive Management (EM) employee sick leave credits up to an
amount equal to any earned but unused sick leave credits available to such appointee
at the time of his or her separation from his or her most recent previous employer.
F. Payment for Unused Sick Leave. Executive Management (EM) employees will
be granted payment for unused sick leave on the same basis as provided to Santa Ana
Management Association (SAMA) represented employees of the City.
G. Paid or unpaid Administrative Leave Policy. The City Manager is authorized to
grant, at his or her discretion, paid or unpaid leave for Executive Management (EM)
employees.
Section 6. Retirement Plan Contributions,
A. The terms of the existing contract between the City and California Public
Employees' Retirement System (CalPERS) governing the City retirement benefits of
Executive Management (EM) employees covered by this Resolution are incorporated by
reference herein. The City will make contributions to CalPERS in accordance with its
contract with CalPERS for employees covered by said contract as amended.
B. 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members The
City agrees to provide Executive Management (EM) employees covered by this
Resolution, and who are defined as Classic Miscellaneous Members under the
California Public Employees' Pension Reform Act (PEPRA) of 2013 (AB340), with the
2.7% at 55 Service Retirement benefit.
C. Payment of 2.7% at 55 Service Retirement Benefit. Classic Miscellaneous
Executive Management (EM) employees covered by this Resolution will contribute eight
percent (8 %) of CalPERS reportable compensation toward the employer cost of the
2.7% at 55 enhanced retirement formula. This payment will be implemented as cost -
sharing pursuant to Government Code Section 20516(f).
Pre - Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service
regulations, this eight percent (8 %) employee contribution will be implemented through
65D -29
payroll deductions on a pre -tax basis.
D. 2.0% at 62 Service Retirement Benefit for New Miscellaneous Members. The
City agrees to provide Executive Management (EM) employees covered by this
Resolution who were appointed to their classification on or after January 1, 2013, and
who are defined as new members under the California Public Employees' Pension
Reform Act (PEPRA) of 2013 (AB340), with the 2.0 %e at 62 Service Retirement benefit.
E. Payment of 2.0% at 62 Service Retirement Benefit. Executive Management
(EM) employees defined in 6.D. (above) will contribute at least 50% of normal cost of
the 2.0% at 62 retirement benefit.
Pre - Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service
regulations, the City will make the above employee deductions pre -tax contributions.
F. 3% at 50 Service Retirement Benefit for Classic Safes Members. The City
agrees to provide Executive Management (EM) employees covered by this Resolution,
and who are defined as Classic Safety Members under the California Public Employees'
Pension Reform Act (PEPRA) of 2013 (AB340), with the 3% at 50 Service Retirement
benefit.
G. Payment of 3.0% at 50 Service Retirement Benefit. Classic Safety Executive
Management (EM) employees covered by this Resolution will contribute nine percent
(9 %) of CalPERS reportable compensation toward the employer cost of the 3.0% at 50
enhanced retirement formula. This payment will be implemented as cost - sharing
pursuant to Government Code Section 20515(f).
Pre - Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service
regulations, this nine percent (9 %) employee contribution will be implemented through
payroll deduction on a pre -tax basis.
H. 2.7% Cal 57 Retirement Benefit for New Safety Members, The City agrees to
provide Executive Management (EM) employees covered by this Resolution who were
appointed to their classification on or after January 1, 2013, and who are defined as
new members under the California Public Employees' Pension Reform Act (PEPRA) of
2013 (AB340), with the 2.7% @ 57 Service Retirement benefit.
I. Payment of 2.7 % at 57 Service Retirement Benefit. Executive Management
(EM) employees defined in 6.H. (above) will contribute at least 50% of normal cost of
the 2.7% at 57 retirement benefit.
Pre - Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service
regulations, the City will make the above employee deductions pre -tax contributions.
J. Final Compensation for Pension Calculation,. Final compensation for Classic
Safety and Classic Miscellaneous Members will be based on the highest annual
average compensation earnable during the 12 consecutive months immediately
preceding the effective date of his or her retirement, or some other 12 consecutive
65D -30
month period designated by the member.
Final compensation for Safety and Miscellaneous Members who are defined as New
Members under PEPRA will be based on the highest annual average compensation
earnable during the 36 consecutive months immediately preceding the effective date of
his or her retirement, or some other 36 consecutive month period designated by the
member.
K. Military Service Credit as Public Service. An Executive Management (EM)
employee covered by this Resolution will be permitted to purchase up to four (4) years of
service credit for any continuous active military or merchant marine service prior to
employment. The cost to purchase this service credit is subject to CalPERS Regulations
and calculated using a present value method.
L. Deferred Retirement for Classic Safety and Classic Miscellaneous Members as
defined in Section .13 and F (above). The City will continue to make payments to
CalPERS on behalf of each eligible affected employee in an amount necessary to pay
one hundred percent (100 %) of his or her individual retirement contribution which is
equal to eight percent (8 %) of reportable compensation for Classic Miscellaneous
Members and nine percent (9 %) for Classic Safety Members. Such payments will be
credited to the individual employee's CalPERS account.
Such payments are not an increase in base salary and no salary rate range applicable
to any of the employees covered by this Resolution will be changed or deemed to have
been changed by reason thereof, As a result, the City will not treat these payments as
ordinary income and thus will not withhold federal or state income tax from said
payments. The City previously received a ruling from the Internal Revenue Service
confirming that such payments are deferred compensation and not ordinary income. In
the event that the City receives a new ruling from the Internal Revenue Service that
such payments are ordinary income of the employees instead of deferred
compensation, the City's obligation to make such payments will discontinue and in place
thereof the reportable compensation of each Classic Miscellaneous Member eligible for
the 21% at 55 Benefits Formula will be increased by eight percent (8 %) and each
Classic Safety Member eligible for the 3% at 50 Benefits Formula will be increased by
nine percent (9 %).
For the purpose of reporting an employee's compensation to CalPERS, the City will
include these payments as if they were a part of the employee's reportable
compensation.
Section i. Tuition Reimbursement. Executive Management (EM) employees are
eligible to participate in the Training and Education Assistance Program provided for all
regular, full -time employees of the City. Reimbursement will be based on the cost of
tuition, required enrollment/registration fees, miscellaneous fees (health, parking,
student union fees, etc.) and all required texts, eBooks and related material for each
course. Maximum tuition reimbursement will be paid in the highest amount as available
to other represented employees.
65D -31
Section_8.Medical Retirement Subsidy Plan.
A. The City's current annual contribution towards the Medical Retirement Subsidy
Plan for Executive Management (EM) employees covered under this Resolution is
1.75% of the base salary, which is based on the first payroll period in October and
deposited no later than October 31st of each year.
B. The plan will be administered by the City, at no cost to Executive Management
(EM) employees pursuant to the written directives of Executive Management (EM)
employees. The funds contributed by the City will be maintained in such a manner as to
ensure that the funds are invested in a reasonably secure plan that bears a reasonable
rate of interest/growth given current financial markets. For purposes of this Resolution,
investments made pursuant to the then current Statement of Investment Policy for the
City of Santa Ana, will be deemed to meet the requirements of this section. This
program is for medical insurance premium reduction only.
C. Effective November 28, 2011, the City adopted a resolution authorizing
implementation of the "Vantage Care" Retirement Health Savings Plan (RHS), which
designated ICMA -RC as the administrator of the plan.
1. The City agrees to amend the current contract with ICMA -RC to allow
unrepresented Executive Management (EM) employees to participate in the Retiree
Health Savings Plan upon approval of the majority of Executive Management (EM)
employees.
2. Upon establishment of the RHS and adoption of the RHS plan by
Executive Management (EM) employees, and upon instructions from Executive
Management (EM) employees the City's annual contribution of 1.75% deposited in the
Medical Retirement Subsidy Plan will cease. Concurrently with 'said cessation, the City
will increase the base pay of each Executive Management (EM) employee by 1.25 %
with said amount being deposited into employees' individual RHS accounts each pay
period. This 1.25% increase in base is in -lieu of the Annual City Contribution of 1.75%
paid to the Medical Retirement Subsidy fund in October each year.
3. If said RHS Plan is established after the annual payment of 1.75% into the
existing Medical Retirement Subsidy plan has been made, the salary adjustment and
deposit into the RHS of the 1.25% described in paragraph 8.C.2, above will be effective
July 1, 2015.
4. Upon approval to participate in the RHS, Executive Management (EM)
employees will determine how the existing Medical Retirement Subsidy Plan funds will
be distributed among its membership and, if applicable, its retired members. Executive
Management (EM) employees will dissolve the existing Medical Retirement Subsidy
plan by June 30, 2016, unless said deadline has been extended by mutual agreement
of Executive Management (EM) employees and the City.
Section 9. Auto Allowance, With the exception of the Police Chief who receives a City
vehicle, the City will contribute five hundred dollars ($500) per month to each Executive
Management (EM) employee to offset reasonable and necessary expenses for the
65D -32
operation, maintenance and insuring of an automobile. In lieu of receiving five hundred
dollars ($500) per month, the employee may request and be provided with an optional
vehicle. This provision is in accordance with and as specified in Section 2 -300, Division
1, Article IV, Santa Ana Municipal Code.
Section 10. Deferred Compensation. The City has established and maintains a
deferred compensation plan pursuant to the provisions of Section 457(b) of the Internal
Revenue Code. Executive Management (EM) employees covered under this resolution,
at his or her sole discretion, may defer to have deposited into the City's 457(b) plan a
portion of his or her compensation up to the maximum amount permitted by law.
The City is desirous of establishing a 401(a) deferred compensation plan. As
permissible by law the City will establish a 401(a) deferred compensation plan at a
future date. Executive Management (EM) employees covered under this resolution, at
his or her sole discretion, may defer to have deposited into said 401(a) plan upon its
establishment a portion of his or her compensation up to the maximum amount
permitted by law.
All contributions into the 457(b) and 401(a) plan are voluntary employee contributions
and will meet the requirements of the Internal Revenue Code.
Evaluation System. The provision of the unrepresented Executive Management (EM)
performance -based evaluation system are as follows:
11.1 Purpose. The basic purpose of the performance -based evaluation system
is to help attract, retain and motivate highly competent Executive Managers and to
provide them with a strong incentive to excel.
11.2 Specific Compensation Determination.
A. The City Manager is hereby given the authority to set the individual
compensation, to make adjustments thereto and to make appointments at any salary
within the established range for all executive positions except the City Manager, the City
Attorney, and the Clerk of the Council, which will be made by the City Council.
B. The City Manager will establish performance criteria and appraisal
guidelines to be utilized in setting individual compensation for Executive Management
(EM) employees.
C. After the salary of an employee has been first established and fixed under
this plan, salary advancement through the remaining steps of the 15 -step salary rate
range will be based on the results of an annual performance evaluation.
11.3 Evaluation System Components. The evaluation system will be comprised
of the following components:
65D -33
A. Annual Objectives. The system will include a list of outcome- based,
measurable objectives to be achieved which have been mutually agreed upon between
the appropriate appointing authority and each individual manager subject to his or her
authority. A relative weight will be assigned to each objective listed with a minimum
weight of 10% and all must total 100 %.
B. Managerial Behaviors. In addition to his or her performance in achieving
agreed upon objectives, each Executive Manager will also be evaluated for his or her
managerial behavior performance, including such behavior as communication (oral or
written), analysis and problem solving, decision - making and judgment, planning and
organization, management control, leadership, interpersonal relations, time -
management, technical knowledge, handling of stress, etc.
11.4 Performance Evaluation Guidelines.
A. The City Manager will annually evaluate the performance of each of his or
her Executive Management (EM) employees annually to determine their individual
eligibility for a performance increase and how much, if any, increase will be given. Such
annual performance evaluation will occur once a year and will cover the twelve month
period preceding that date. Additionally, at least one informal mid -year progress review
will be held between the City Manager and each of his or her Executive Management
(EM) employees.
B. Performance Ratings. Each manager's performance in relation to his or
her agreed upon annual objectives and managerial behaviors will be evaluated
according to the following performance rating scale:
Point Rating Performance Levels
3 Significantly Exceeds Expectations:
Consistently exceeds all objectives requirements and
expectations by a wide margin.
Exceeds Expectations:
Consistently meets all objectives and requirements
and exceeds several.
Meets Expectations:
Meets objectives and requirements.
Below Expectations:
Fails to meet some objectives and requirements.
1 Unacceptable:
Performance is significantly below the minimum
required.
11.5 Performance -Based Salary Adjustments. Each Executive Management
(EM) employee may be eligible to receive an annual performance - based, in -range
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salary increase and /or one -time monetary payment based on a percentage of current
annual rate of base salary, or be subject to a performance -based salary reduction, in
accordance with the following:
A. For overall performance rated as "Significantly Exceeds Expectations,"
either step increases or one -time monetary payment or a combination of step increases
and one -time monetary payment not to exceed seven and one -half percent (7.5 %) in
toto.
B. For overall performance rated as "Exceeds Expectations," either step
increases or one -time monetary payment or a combination of a step increase and one-
time monetary payment not to exceed five percent (5 %) in toto.
C. For overall performance rated as "Meets Expectations," a one -time
monetary payment in an amount up to but not to exceed two and one -half percent
(2.5 %) of current annual rate of base salary or advancement of one step (2.5 %) within
the salary rate range.
D. For overall performance rated as "Below Expectations," no performance
salary increase or monetary incentive payment.
E. For overall performance rated as "Unacceptable," no performance salary
increase or monetary incentive payment. Additionally, any Executive Management
(EM) employee who has received such a rating and who is being paid at a step higher
than the minimum rate of the salary rate range, may be reduced by one or more steps
at the discretion of the City Manager.
F. Application of Guidelines.
1. If an Executive Manager who is recommended for a performance
increase is at the maximum of his or her salary rate range, then the entire performance
increase must be awarded the equivalent amount in a one -time monetary incentive
payment.
2. Any one -time monetary incentive payment granted under this plan
is not an increase in base salary and no salary rate range applicable to any
management employee covered by this Resolution will be changed or deemed to have
been changed by reason of such payment.
3. The City Manager will be responsible for the development and
administration of detailed administrative procedures and guidelines for the consistent
and effective application of the unrepresented Executive Management (EM)
performance -based evaluation system. Such procedures and guidelines will define how
performance objectives, measures and standards are developed; when and how
performance reviews are to be carried out; how performance component ratings and
composite ratings will be scored; and how performance salary increase and monetary
incentive payment options are to be exercised.
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Section 12, Miscellaneous Provisions
A. Catastrophic leave Donation, Executive Management (EM) employees will be
eligible to donate and receive catastrophic leave donations as provided to all other
represented employees.
C. Electronic Device Stipend, Executive Management (EM) employees who use their
own personal electronic devices for City business in lieu of receiving a City owned
device will be eligible to receive a stipend at a level matching that received by SAMA
employees.
Privileges. Each employee in a classification of employment designated in Sub - section
1.A, of this Resolution as unrepresented Executive Management (EM) will continue to
enjoy the same rights and privileges to which they were entitled under Resolution 91-
066 unless otherwise amended, altered or eliminated herein.
Section 3: That Resolution No. 91 -066, as amended, is hereby rescinded in its entirety.
Section 4: This Resolution is operative from and after January 1, 2015.
ADOPTED this 20" day of January, 2015.
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
M F�
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Councilmembers
Councilmembers
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2015-_ to be the original resolution adopted by the City Council of the
City of Santa Ana on January 20, 2015.
Date:
65D -37
Clerk of the Council
City of Santa Ana
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