SR 07-27-2021 8B
City Council Report
City Council Meeting: July 27, 2021
Agenda Item: 8.B
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To: Mayor and City Council
From: George Cardona, Interim City Attorney, City Attorney's Office, Municipal Law
Subject: Approval of Employment Agreement with David White for Service as City
Manager
Recommended Action
Staff recommends that Council: (1) approve the employment agreement with David
White for his service as City Manager, beginning effective October 11, 2021; and
(2) authorize the Mayor to sign the employment agreement on behalf of the City.
Discussion
On June 5, 2021, Council appointed Bijan K. (John) Jalili to serve as Interim City
Manager commencing on June 25, 2021, following the departure of Lane Dilg and
continuing until the completion of the pending recruitment for a permanent City
Manager. That recruitment has now been completed, and on July 22, 2021
Council voted to appoint David White to serve as City Manager, beginning
effective October 11, 2021.
An employment agreement has been negotiated with Mr. White for his service as
City Manager. A copy of the agreement is attached as Exhibit A. This employment
agreement sets out the full terms of the compensation and benefits to be provided
to Mr. White. In summary: (a) the City will pay Mr. White an annual salary of
$340,000; (b) the City will reimburse Mr. White for moving and relocation
expenses as set forth in the agreement; (c) the City will provide Mr. White with up
to seven months of temporary rental assistance, at the rate of $3,000 per month,
for a maximum of $21,000, as well as use of a City car, while Mr. White transitions
to permanent residence in Santa Monica; (d) the City will make available to Mr.
White a home loan not to exceed $1.5 million on terms set out in the employment
agreement; (e) Mr. White will receive CalPers retirement benefits as determined
8.B
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by CalPers; (f) Mr. White will receive other benefits in accordance with the
Executive Pay Plan, subject to any modifications set out in the employment
agreement; and (g) Mr. White will be entitled to 9 months of severance pay should
his employment be terminated by the City Council under conditions specified in the
employment agreement.
Because he will be serving as a “local agency executive” as defined in
Government Code Section 3511.1(d), California law requires that Mr. White’s pay
be approved at a regular meeting, with an oral summary provided before final
action is taken. See Government Code Sections 54953(c)(3), 54956(b).
Fiscal Impacts
Salary and benefits for the City Manager position are included in the FY 2021-22
budget.
Prepared By: George Cardona, Interim City Attorney
Approved
Forwarded to Council
Attachments:
A. White.CMEmploymentAgreement.FINAL
8.B
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CITY OF SANTA MONICA
EMPLOYMENT AGREEMENT
This Employment Agreement, entered into this ___day of July 2021 (“Execution Date”),
and effective as of October 11, 2021 (“Employment Date”), by and between the City of Santa
Monica, a California municipal corporation ("City"), and David White ("White" or "Employee"),
is made with reference to the following:
RECITALS
A. On July 22, 2021, the Santa Monica City Council appointed White to the position of City
Manager of the City of Santa Monica effective as of October 11, 2021.
B. The City and White wish to enter into an agreement setting forth the terms and conditions
of White’s employment as the City Manager of the City of Santa Monica.
C. The City Council and White both prefer that White, during his employment as City
Manager, live in Santa Monica.
NOW, THEREFORE, City and White agree as follows:
TERMS AND CONDITIONS
1. Salary.
1.1 Commencing as of the Employment Date, City agrees to pay Employee an initial
annual base salary of Three Hundred Forty Thousand dollars ($340,000.00),
payable in installments in the same manner and at the same time as other City
employees are paid.
1.2 In July of each year, commencing in July 2022, Employee’s annual base salary
shall be automatically adjusted in the same percentage as any salary increase that
may be granted to participants in the Executive Pay Plan ("EPP") for that fiscal
year.
2. Performance Evaluations. The City Council will complete formal performance
evaluations of Employee’s performance in the position of City Manager as follows:
(a) initial evaluation after completion of first six months of employment; (b) second
evaluation after completion of first twelve months of employment; (c) thereafter, an
annual evaluation after completion of every twelve months of employment. Prior to the
commencement of each annual evaluation period, Employee and City Council will meet
and jointly define goals, performance objectives, and measurable metrics for the
evaluation period that they determine appropriate for the attainment of the City Council's
policy objectives and establish the relative priority among the various goals and
performance objectives. The goals and performance objectives shall be defined in such a
way that they are generally obtainable within time limits established by Employee and
City Council, in accordance with the annual operating and capital budgets and
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appropriations approved by the City Council. In addition to the annual performance
evaluations, Employee may request additional performance evaluations, and the City
Council in its discretion may conduct, whether at the request of Employee or otherwise,
additional performance evaluations. Upon mutual agreement, an annual performance
evaluation shall be performed with the assistance of a mutually-selected, third-party
facilitator.
3. Benefits.
3.1 Employee shall have those benefits and privileges of employment provided to
Department Heads as set forth in Sections G through Z of the Executive Pay Plan
as it may be amended from time to time, except to the extent this Agreement
provides otherwise. A copy of the Executive Pay Plan in effect for the period
July 1, 2020 to June 30, 2021 is attached as Exhibit A and incorporated herein by
reference. To the extent provisions in this Agreement differ from provisions in
the Executive Pay Plan, the provisions of this Agreement shall control.
3.2 The accrual and use of vacation and sick time shall be as set forth in the Executive
Pay Plan except that: (a) Employee’s vacation accrual rate shall be 14 hours per
month in accordance with Section S.5 of the Executive Pay Plan; and (b) in
addition to the benefits provided by the Executive Pay Plan, Employee shall
commence employment as City Manager with 14 days of vacation time and
10 days of sick leave already accrued.
3.3 It is anticipated that Employee’s retirement benefits pursuant to City’s contract
with the California Public Employees’ Retirement System (“CalPERS”) shall be
as set forth in Section G.2 of the Executive Pay Plan, that is, the 2%@55 benefit
formula. The CalPERS retirement formula applicable to Employee in the position
of City Manager and the appropriate category of CalPERS membership, however,
shall be finally determined by CalPERS.
3.4 City shall provide Employee with the use of a City-paid cellular phone and a City-
owned laptop for use in conducting City business. Use of the cellular phone and
laptop shall be in accordance with City policies regarding employee access and
use of computer networks and employee access of City telecommunications
equipment as set forth in City administrative instructions II-4-10 and II-4-11.
3.5 City shall pay professional dues and subscriptions on behalf of Employee for
Employee’s continued participation in, and shall pay travel and subsistence
expenses for attendance at meetings of, national, state, or local associations and
organizations, for example the International City/County Management
Association and the League of California Cities, as reasonably necessary to ensure
that Employee maintains connections and continued professional growth that will
benefit City in Employee’s performance of his duties as City Manager.
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4. Relocation and Temporary Rental Housing Allowance.
4.1 City shall reimburse Employee for moving and relocation expenses as follows:
(a) City shall reimburse Employee for airfare and hotel (no more than two nights
per trip) for up to two (2) trips to Santa Monica during the period between the
Execution Date and the Employment Date for the purpose of locating housing in
Santa Monica; and (b) City shall reimburse Employee for moving expenses on the
following conditions – Employee shall obtain three bids for moving services,
provide those bids to the Mayor and confer with the Mayor to arrive at a mutually
agreed on selection of moving services, and provide to City receipts for the
payment of moving expenses. Reimbursement for moving and relocation
expenses as set forth above will be made as part of Employee’s pay and will be
subject to tax.
4.2 City shall provide Employee with a temporary rental housing allowance for up to
seven months during the time on and after the Employment Date in which
Employee is living in temporary rental housing in Santa Monica (or as close to
Santa Monica as possible if Employee is not able to obtain temporary rental
housing within Santa Monica) prior to moving into a permanent residence,
whether rented or owned, in Santa Monica. The monthly allowance will be Three
Thousand Dollars ($3,000) and shall not exceed a total of Twenty-One Thousand
Dollars ($21,000). The temporary rental housing allowance shall commence as of
the date, on or after the Employment Date, on which Employee resides in
temporary rental housing in Santa Monica and shall be paid as part of Employee’s
regular bi-weekly paycheck, subject to tax, for each month thereafter in which
Employee remains in temporary rental housing, terminating after the earlier of
seven months or the month in which Employee moves into a permanent residence
in Santa Monica, whether rented or owned.
4.3 To assist in the relocation process, upon request by Employee, City shall, for the
first six months of Employee’s employment as City Manager, commencing on the
Employment Date, provide Employee with a City vehicle for personal use. Use
of this vehicle shall be in accordance with City policies on use of City vehicles as
set forth in City administrative instructions II-3-1 through II-3-10.
5. Home Ownership Option.
5.1 City shall make a home loan available to Employee at a fixed interest rate of
3.50 percent (3.50%).
5.2 The loan shall be made on terms standard for residential real estate loans. The
term of the loan shall be no less than 15 years and no more than 30 years.
Payment options shall include "interest only" and "principal plus interest." The
loan will be secured by the real estate in the manner customary for residential
loans.
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5.3 The loan shall not exceed $1.5 million, and Employee agrees to provide a down
payment of at least ten percent (10%) of the purchase price of the home.
5.4 Employee shall be responsible for property taxes and insurance. City shall be
named as an insured on such insurance.
5.5 Within two years of the date on which Employee’s employment by City in the
position of City Manager ends, whether as the result of resignation, termination,
separation, or for any other reason, Employee shall buy out the loan from the City
by paying off all outstanding principal and interest.
6. Severance Pay and Severance Benefits.
6.1 Employee will be an at-will employee of City whose employment with City in the
position of City Manager may be terminated at the discretion of the City Council
in accordance with the procedures set forth in City Charter Section 700. In the
event of such a termination of Employee’s employment, or upon Employee’s
separation from employment by mutual agreement documented in writing
between City and Employee, City shall pay to Employee severance pay in an
amount equal to nine (9) months of Employee’s base bi-weekly salary, such
payment to be made within thirty (30) days of Employee’s termination or
separation from employment. Severance pay shall not be required pursuant to this
paragraph, and Employee shall not be entitled to any severance pay only if:
(a) Employee resigns or retires; (b) the termination of Employee from the position
of City Manager was the result of good cause as defined below; or (c) Employee
moves from employment by City in the position as City Manager to employment
by City in any other position. For purposes of this Agreement, good cause is
defined only as follows: (1) conviction of Employee, whether by verdict or plea of
guilty or nolo contendere, of any crime of moral turpitude; (2) willful misconduct
by Employee; or (3) proven failure of Employee to observe or perform any of his
duties and obligations as City Manager, if that failure continues for a period of
thirty (30) calendar days from the date of Employee’s receipt of written notice
from the City Council specifying the acts or omissions deemed to constitute that
failure.
6.2 As of the date on which Employee is no longer employed by City as its City
Manager, unless Employee remains employed by City in another position or is
subject to application of Section 6.3 below, Employee shall be paid all eligible
accrued benefits under this Agreement.
6.3 If Employee is convicted of a crime involving an abuse of his office or position,
all of the following shall apply: ( l) if Employee is provided with administrative
leave pay pending an investigation, Employee shall be required to fully reimburse
City such amounts paid; (2) if City pays for the criminal legal defense of
Employee (which would be in its sole discretion, as it is generally not obligated to
pay for a criminal defense), Employee shall be required to fully reimburse City
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such amounts paid; and (3) if this Agreement is terminated, any severance pay
pursuant to Section 6.1 above and any severance benefits pursuant to Section 6.2
above that Employee may receive from City shall be fully reimbursed to City or
shall be void if not yet paid to Employee. For purposes of this Section, abuse of
office or position means either: (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.
7. Exempt Employee. As City Manager, Employee will be an exempt employee under the
Fair Labor Standards Act, work during normal business hours of City and, in addition,
devote whatever time is necessary to accomplish the work of his position without
eligibility to accrue compensatory time or to be paid overtime compensation. As a result,
Employee will not have to account for his work time on an hourly basis and will only
need to account for each full day of absence that occurs on a regularly scheduled work
day.
8. Notice of Resignation. If Employee decides to resign from his employment by City in
the position of City Manager, Employee will provide the City Council with at least sixty
(60) days written notice.
9. Duration of Agreement. Following Employee’s commencement of employment as the
City Manager on the Employment Date, this Agreement shall continue in full force and
effect for a period of five years until October 10, 2026 (the “Initial Term”), or such
earlier date on which Employee, pursuant to the terms of this Agreement, is no longer
employed by City as its City Manager, whether as the result of resignation, termination,
separation, or any other reason. On January 1, 2026, and on each succeeding January 1
while this Agreement is in effect, the Initial Term, and any subsequent term resulting
from extension, of this Agreement shall be automatically extended for successive periods
of two (2) years.
10. Integrated Contract. This Agreement represents the full and complete understanding of
every kind or nature whatsoever between the parties. Any preliminary negotiations and
agreements of any kind or nature are merged into this Agreement. No oral agreement or
implied covenant may be held to vary the provisions of this Agreement. This Agreement
may be modified only by written agreement signed by City and Employee and approved
as to form by the City Attorney.
11. No Presumption Against Any Party. This Agreement is the product of the efforts of all
parties, and the terms of this Agreement shall not be construed or interpreted for or
against any party solely on the grounds that the party proposed or drafted a particular
clause.
12. Governing Law. The laws of the State of California, without regard to any choice of law
provisions, will govern this Agreement.
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13. Venue and Jurisdiction. Any litigation arising out of this Agreement may only be
brought in either the United States District Court, Central District of California, or the
Superior Court of California, County of Los Angeles, West District, as appropriate. The
parties agree that venue exists in either court, and each party expressly waives any right
to transfer to another venue. The parties further agree that either court will have personal
jurisdiction over the parties to this Agreement.
14. Severability. If any part, term, or provision of this Agreement is declared or determined
by a court to be illegal, invalid, or unenforceable, the legality, validity, and enforceability
of the remaining parts, terms, or provisions of this Agreement shall not be affected
thereby, and the illegal, invalid, or unenforceable part, term, or provision shall either be
deemed modified in such manner as to render such part, term, or provision legal, valid,
and enforceable to the fullest extent permitted by law or shall be deemed not to be a part
of this Agreement.
15. Waiver of Breach. A non-breaching party may waive the breach of any provision of this
Agreement only by executing a writing. Waiver of any breach shall not be deemed to be
a waiver of any other breach of the same or any other provision of this Agreement.
16. Indemnification. To the full extent of the law as provided by the California Government
Claims Act (formerly the California Torts Claims Act (Government Code Section 810, et
seq.)), City shall defend and indemnify Employee against any claim or action filed
against Employee for injury or loss arising out of an act or omission occurring with the
scope of the Employee’s duties on the City’s behalf for the period of Employee’s
employment, subject to the limitation of the California Government Claims Act.
17. Electronic Signatures. Each party agrees that the transaction consisting of this
Agreement may be conducted by electronic means. Each party agrees and acknowledges
that it is such party’s intent, that if such party signs this Agreement using an electronic
signature, it is signing, adopting, and accepting this Agreement and that signing this
Agreement using an electronic signature is the legal equivalent of having placed its
handwritten signature on this Agreement on paper. Each party acknowledges that it is
being provided with an electronic or paper copy of this Agreement in a usable format.
///
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18. Counterparts. This Agreement may be executed simultaneously or in any number of
counterparts, including both counterparts that are executed manually on paper and
counterparts that are in the form of electronic records and are executed electronically,
whether digital or encrypted, each of which shall be deemed an original and together
shall constitute one and the same instrument.
In witness whereof, this Agreement was executed on the day and year first written above.
CITY OF SANTA MONICA,
a municipal corporation
By: ________________________ __________________________
Sue Himmelrich, Mayor David White
APPROVED AS TO FORM: ATTEST:
___________________________ _____________________________
George S. Cardona, Interim City Attorney Denise Anderson-Warren, City Clerk
8.B.a
Packet Pg. 747 Attachment: White.CMEmploymentAgreement.FINAL (4682 : CM David White Employment Agreement)
Exhibit A
Executive Pay Plan
8.B.a
Packet Pg. 748 Attachment: White.CMEmploymentAgreement.FINAL (4682 : CM David White Employment Agreement)
CITY OF SANTA MONICA
EXECUTIVE PAY PLAN
JULY 1, 2020 - JUNE 30, 2021
CONTRACT NO. (CCS)
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TABLE OF CONTENTS Page
A. Term of Pay Plan .................................................................................................... 1
B. Participants ............................................................................................................. 1
C. Compensation ........................................................................................................ 1
D. Hours of Work and Overtime .................................................................................. 2
E. Overpayment Remedy ............................................................................................ 2
F. Pay for Serving in a Higher Job Classification ........................................................... 2
G. Retirement .............................................................................................................. 2
H. Health and Dental Insurance .................................................................................. 5
I. Vision Care ................................................................................................................ 5
J. Employee Assistance Program .................................................................................. 5
K. Life Insurance ......................................................................................................... 5
L. Long Term Disability Insurance ................................................................................. 5
M. Retiree Medical Insurance ...................................................................................... 6
N. Annual Physical Exam ............................................................................................ 6
O. Tuition Reimbursement .......................................................................................... 6
P. Deferred Compensation ......................................................................................... 7
Q. Supplemental Retirement Plan. .............................................................................. 7
R. Paid Holidays .......................................................................................................... 7
S. Vacation Leave ....................................................................................................... 8
T. Sick Leave ............................................................................................................... 10
U. Bereavement Leave ............................................................................................. 12
V. Jury Duty .............................................................................................................. 12
W. Workers’ Compensation Leave ............................................................................ 13
X. Sabbatical Leave .................................................................................................. 13
Y. Severance Pay ..................................................................................................... 14
Z. Management Leave ................................................................................................. 14
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A. Term of Pay Plan
This Executive Pay Plan (“EPP”) is effective as of July 1, 2020, until June 30,
2021, or until such time that a successor pay plan is approved.
B. Participants
Participants in the Executive Pay Plan include Department Heads, and each City
employee who has a separate employment agreement providing for participation
in the Executive Pay Plan.
Each employee who chooses to be individually represented has the right to stop
participation in the Executive Pay Plan and to request representation by an
appropriate unit in accordance with the City’s Employer-Employee Relations
rules. Employees who exercise that right cannot again become participants in the
Executive Pay Plan during the term of this Resolution.
C. Compensation
Effective August 2, 2020:
a. EPP Department Heads (except the Police Chief and Fire Chief)
whose base salary exceeds $200,000 per year shall have their
salary reduced by three Steps (i.e., a 15% reduction).
b. EPP Department Heads whose base salary is less than $200,000
per year, and the Deputy City Manager, shall have their salary
reduced by two Steps (i.e., a 10% reduction).
c. The Police Chief and Fire Chief shall have their base salary
reduced by 7.5%.
d. EPP participants who are not Department Heads or the Deputy City
Manager, and who are located in the City Manager’s Office, shall
have their base salary reduced by 5%.
e. The salary reductions stated above shall automatically expire on
June 30, 2021. The base salaries of EPP participants shall revert to
the base salaries that were in effect as of June 30, 2020.
2. Educational Incentive
Effective July, 1, 2018, the Police Chief and Fire Chief shall each receive a
flat $230.77 bi-weekly education incentive for a POST Executive Certificate
or Master’s Degree for the Police Chief, and for a Chief Fire Officer (CFO)
or Master’s Degree for the Fire Chief.
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3. In an effort to address salary compaction, the City Manager may authorize
a differential of up to 15% between the base salary of a position in the
Executive Pay Plan and the base salary of the next highest-paid
subordinate. Additionally, the City Manager may authorize a differential of
5% between the compensation of the Assistant City Manager and the
compensation of the highest-paid Department Head.
D. Hours of Work and Overtime
Participants in the Executive Pay Plan are exempt employees under the Fair
Labor Standards Act, work during normal business hours of the City and, in
addition, devote whatever time is necessary to accomplish the work of their
position without eligibility to accrue compensatory time or to be paid overtime
compensation. As a result, employees do not have to account for their work time
on an hourly basis and only need to account for each full day of absence that
occurs on a regularly scheduled work day.
E. Overpayment Remedy
Participants in the Executive Pay Plan shall reimburse the City for any
overpayment of wages or benefits. Said reimbursement is not required until the
City notifies the affected employee in writing. Reimbursement may be
accomplished by a lump sum deduction from the next payroll warrant issued to
the employee following notification, or by other reasonable repayment method
mutually acceptable to the employee and the City, except that a lump sum
deduction will be required if the next payroll warrant issued to the employee is
the final or termination warrant.
F. Pay for Serving in a Higher Job Classification
If an employee is assigned on an interim or acting basis to a vacant position in a
higher level job classification, the employee shall receive the salary rate for the
higher level job classification at the lowest salary step of the salary range that
provides an increase of at least 5% over his/her current salary, for all such work
days assigned in the higher level job classification.
G. Retirement
The City is a contract member of the California Public Employees' Retirement
System (CalPERS), and it is understood and agreed that such membership will
be maintained and that employee eligibility, classification, contributions, and
benefits are as prescribed in the contract between the City and CalPERS
heretofore approved by the Santa Monica City Council. The terms and conditions
regarding CalPERS retirement and optional benefits for miscellaneous
employees between the City and Administrative Team Associates (ATA),
Management Team Associates (MTA), Municipal Employees Association (MEA),
Public Attorneys Union (PAU), Public Attorneys’ Legal Support Staff Union
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(PALSSU), Supervisory Team Association (STA), The International Association
of Sheet Metal, Air, Rail, and Transportation Workers – Transportation Division
(SMART-TD) Local 1785, International Brotherhood of Teamsters (IBT) Local
911, and EPP participants are covered by an Umbrella Agreement between the
City and a Coalition of those recognized employee organizations.
1. Tier 1 employees hired by the City before July 1, 2012, are provided the
following retirement benefits:
A. 2.7% @ 55 benefit formula with a final compensation period
calculated as the single-highest year or highest 12 consecutive
months of compensation earnable.
B. The City pays the entire member contribution equal to 8% of
compensation earnable and reports the value of that employer-paid
member contribution (EPMC) to CalPERS as compensation
earnable pursuant to California Government Code Section
20636(c)(4). In return, each employee shall contribute to the City
the added cost resulting from paying employer and employee
retirement contributions on the EPMC, which is an amount equal to
the product obtained by multiplying the value of the EPMC by the
sum of 8% plus the City’s prescribed annual contribution rate to
CalPERS.
C. Employee contributions include (1) a portion of the required
employer contribution equal to 6.7% of compensation earnable as
cost-sharing pursuant to Government Code Section 20516(f) and
(2) the cost for the enhanced benefit of EPMC.
2. Tier 2 employees hired by the City on or after July 1, 2012, are provided
the following retirement benefits:
A. 2% @ 55 benefit formula with a final compensation period based
upon the highest annual average compensation earnable during the
36 months immediately preceding the effective date of retirement or
another period designated by the employee.
B. Employee contributions include the entire required member
contribution equal to 7% of compensation earnable.
3. Employees hired on or after January 1, 2013, who are “new members” as
defined in the Public Employees’ Pension Reform Act of 2013 are
provided the following retirement benefits:
A. 2% @ 62 benefit formula with a final compensation period based
upon the highest annual average compensation earnable during the
36 months immediately preceding the effective date of retirement or
another period designated by the employee.
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B. “New members” enrolled in CalPERS on or after January 1, 2013,
are required to contribute at least one-half of the total normal cost
as calculated and established in the annual CalPERS valuation
report. If the total normal cost of the plan changes by one percent
or more from the base total normal cost established for the plan,
then the new member rate shall be 50% of the new normal cost
rounded up to the next highest quarter percent.
The terms and conditions pertaining to other optional CalPERS benefits,
including but not limited to Fourth Level of 1959 Survivor Benefit as set forth in
Government Code Section 21574 and the Pre-Retirement Optional Settlement 2
Death Benefit as set forth in Government Code Section 21548, will apply to all
employees.
The Police Chief shall be provided the 3% @ 50 benefit formula as set forth in
Government Code Section 21363.2. The Police Chief shall contribute an amount
equal to that of the Santa Monica Police Officers Association each year.
Pursuant to Government Code Section 20691, the Police Chief shall pay 100% of
the member contribution of the required retirement contributions to CalPERS (9%
of the employee’s “compensation earnable” as defined by the Public Employees'
Retirement Law, Government Code Section 20000 et seq.). Effective July 1,
2017, and as provided for in Government Code Section 20516(f), the Police
Chief shall pay to CalPERS pursuant to a cost-sharing arrangement, 6.5% of
“compensation earnable.” Effective July 1, 2018, the Police Chief shall pay to
CalPERS pursuant to a cost-sharing arrangement, 7.5% of “compensation
earnable.”
The Fire Chief shall be provided the 3% @ 55 benefit formula as set forth in
Government Code Section 21363.1. The Fire Chief shall contribute an amount
equal to that of the Santa Monica Firefighters, Local 1109, each year. Pursuant
to Government Code Section 20691, the Fire Chief shall pay 100% of the
member contribution of the required retirement contributions to CalPERS (9% of
the employee's "compensation earnable" as defined by the Public Employees'
Retirement Law, Government Code Section 20000 et. seq.). Effective July 1,
2017, and as provided for in Government Code Section 20516(f), the Fire Chief
shall pay to CalPERS pursuant to a cost-sharing arrangement, 4% of
“compensation earnable.” Effective July 1, 2018, the Fire Chief shall pay to
CalPERS pursuant to a cost-sharing arrangement, 6% of “compensation
earnable.”
The City’s payments of the employee’s share of required retirement contributions
to CalPERS are not increases of salary and no salary range applicable to any of
the affected employees shall be changed or be deemed to have been changed
by reason of such payments; as a result, the City will not treat these payments as
ordinary income and thus, will not withhold federal or state income tax therefrom.
The City's practice will be to report these payments as being those of the
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employees so that they will be credited to the particular employee's individual
account with CalPERS and upon termination will belong to the employee.
It is agreed that if state or federal procedures require reporting of these payments
in any other manner, the parties will abide by such requirements.
All other terms and conditions set forth in the Umbrella Agreement and not noted
above shall apply to participants of the Executive Pay Plan.
H. Health and Dental Insurance
The medical insurance provision for employees covered hereunder is set forth in
the Umbrella Agreement, which covers the following non-sworn City bargaining
units: ATA, MTA, MEA, PAU, PALSSU, STA, SMART-TD, IBT, and EPP
participants.
Dental insurance coverage shall be provided at no cost to employees and their
eligible dependents, provided that employees participate in the City-offered
dental insurance programs. The City retains the right to change the provider of
this benefit.
I. Vision Care
The City agrees to provide vision care insurance, with no cost for monthly
premiums, to participants in the Executive Pay Plan and their eligible
dependents, provided that employees participate in the City-offered vision
insurance plan. The City retains the right to select the provider and to set the
levels of coverage for vision care insurance.
J. Employee Assistance Program
The City agrees to select and provide an employee assistance program, with no
cost for monthly premiums, to participants in the Executive Pay Plan and their
eligible dependents. The City retains the right to select the provider and to set the
levels of coverage and benefits of this program.
K. Life Insurance
Each participant in the Executive Pay Plan shall receive term life insurance at
City expense with the amount of said insurance to be two times the participant's
annual salary, rounded to the nearest $1,000, not to exceed $500,000.
L. Long Term Disability Insurance
Participants in the Executive Pay Plan shall receive long term disability insurance
coverage at City expense. Subject to the usual provisions and exclusions of such
insurance plans, the coverage shall be for 60% of salary, with benefit not to
exceed $8,333 per month, after a 60-day elimination period.
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M. Retiree Medical Insurance
A participant in the Executive Pay Plan who retires from the City of Santa Monica
and whose age upon retirement, when added to the participant’s years of service
with public agencies, equals or exceeds 70, and who has also completed at least
five years of service with the City of Santa Monica, is entitled to a City-paid
medical insurance plan upon retirement. For eligible retirees who are between
ages 65 and 70, that plan shall be a Medicare-supplement plan.
At the City Manager’s discretion, the requirement that the participant complete at
least five years of service with the City of Santa Monica may be waived or
reduced based on the terms and conditions of the participant’s previous
employment.
The City shall pay the premiums for the retiree only. Payments shall cease when
the retiree reaches age 70.
N. Annual Physical Exam
Participants in the Executive Pay Plan shall receive an annual physical
examination at City expense. Participants may use their own personal physician
for this physical, provided that the cost does not exceed the cost of the City-
offered program.
O. Tuition Reimbursement
The City will budget annually sufficient funds to provide each participant of the
Executive Pay Plan tuition and required study material reimbursement for career
improvement or job enhancement courses approved by the City Manager or
authorized designee. Reimbursement shall equal the total cost of tuition
(exclusive of lodging and meals) and the total cost of required study materials,
provided however, that:
1. The maximum annual amount of reimbursement per employee shall not
exceed $2,000.
2. The course of study must be approved in advance by the City Manager or
authorized designee.
3. The course must be directed to qualifications for an employment position
represented in the City work force or to enhancement of current job skills.
4. The employee must exhibit some reasonable expectation of qualifying for
the new position upon successful completion of the study course if that
was the reason for the course.
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5. The tuition and other covered expenses shall be paid in advance by the
City upon the pre-authorization of the course by the City Manager and the
Director of Human Resources or his or her designee.
6. In no event shall the City's reimbursement be reduced when there is an
outside source of aid, except in those cases where the aid from any
outside source, plus the normal City reimbursement, exceeds the cost of
tuition and study material for the approved study course.
7. Courses for which tuition reimbursement will be made must be taken on
the employee's time or on authorized vacation leave.
8. The procedure to be followed with regard to the administration of the
tuition reimbursement program shall be established by the Human
Resources Department.
9. If the employee does not pass the pre-authorized course or separates
from City employment before completing the course, the employee must
reimburse the City for any payment made by the City under this provision.
P. Deferred Compensation
The City shall establish and maintain a deferred compensation plan under rules
and regulations established pursuant to Section 457(b) of the Internal Revenue
Code of 1986, as amended. Each participant in the Executive Pay Plan, at his or
her sole discretion, may defer and have deposited into the City's plan a portion of
his or her compensation up to the maximum amount permitted by law. This
contribution will not reduce the employee’s base pay except for tax purposes.
The employee’s base pay shall remain unchanged for all other purposes.
Q. Supplemental Retirement Plan.
The City shall establish and maintain a pension plan pursuant to the provisions of
Section 401(a) of the Internal Revenue Code of 1986, as amended. Each
participant in the Executive Pay Plan will contribute $625 per month into the
401(a) plan. This contribution will not reduce the employee's base pay except for
tax purposes. The employee's base pay shall remain unchanged for all other
purposes. Employees hired after July 1, 2017, have the option to “opt-out” of the
mandatory $625 per month employee contribution.
Effective July 1, 2018, the City shall contribute $190 per month to the 401(a)
plan, or, if the employee makes the irrevocable decision to opt out of the 401(a)
upon hire, then the same amount of $190 per month shall alternatively be
contributed to a 457 plan on the employee’s behalf.
R. Paid Holidays
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The Director of Transit Services shall receive those paid holidays provided in the
SMART-TD Local 1785 MOU, provided, however, that the same number of
holidays (12) shall be observed. The City Librarian shall receive those paid
holidays observed by the City libraries, provided, however, that the same number
of holidays (12) shall be observed. All other participants in the Executive Pay
Plan shall receive the following paid holidays:
New Year's Day January 1
Martin Luther King, Jr.’s Birthday Third Monday in January
Presidents' Day Third Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Thanksgiving Day Fourth Thursday in November
Friday following Thanksgiving Day
Half-day immediately before Christmas Day
Christmas Day December 25
Half-day immediately before New Year's Day
One non-cashable floating holiday
One cashable floating holiday
All other holidays declared by City Council
A non-cashable floating holiday (i.e., eight hours) becomes available as of
January 1st. Only those participants of the Executive Pay Plan who are on the
payroll as of January 1st are entitled to receive the non-cashable floating holiday
for that fiscal year. The non-cashable floating holiday must be taken before the
end of the fiscal year. If the non-cashable holiday is not taken by the end of the
fiscal year, the holiday cannot be cashed out and is forfeited.
A cashable floating holiday (i.e., eight hours) becomes available at the beginning
of each fiscal year and must be taken before the end of that fiscal year. Only
those participants of the Executive Pay Plan who are on the payroll at the
beginning of the fiscal year are entitled to receive the cashable floating holiday
for the fiscal year. A cashable floating holiday not taken by the end of the fiscal
year shall be paid to the participant of the Executive Pay Plan at the end of the
fiscal year. A cashable floating holiday that is cashed out at the end of the fiscal
year shall be paid in an amount equal to eight hours of the employee's base
salary rate of pay.
If an employee is required to work on a City-recognized holiday, the employee
will be able to take another regularly scheduled work day off with pay during that
fiscal year.
S. Vacation Leave
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Participants in the Executive Pay Plan shall receive vacation leave as provided in
the Santa Monica Municipal Code, provided, however, that they may accrue a
maximum of three times their annual accrual rate. Participants may accrue
beyond three times the annual accrual rate, not to exceed a total of ten additional
days (80 hours), as personal leave, which is not subject to cash-out upon an
employee's separation from City service. In addition, the City Manager may
authorize the accrual of vacation leave beyond these limits in individual cases
where the employee has been unable to use vacation due to work demands.
Each employee accrues vacation leave as follows:
1) Following completion of the first six calendar months of completed service,
48 hours.
2) Thereafter, up to and including five completed years of service, eight
hours for each completed calendar month of service.
3) Thereafter, up to and including ten completed years of service, ten hours
for each completed calendar month of service.
4) Thereafter, up to and including 15 completed years of service, 12 hours
for each completed calendar month of service.
5) Upon completion of 15 years of service and thereafter, 14 hours for each
completed calendar month of service.
At the City Manager's discretion, a new participant in the Executive Pay Plan,
based on the terms and conditions of the participant's previous employment, may
be granted a vacation accrual rate that exceeds that listed above, but not greater
than, 14 hours for each completed calendar month of service.
Each employee has the option to cash out up to 48 hours of accrued vacation on
two occasions each calendar year (on or about July 1st and the last paycheck in
December), as follows:
In order to exercise this option with respect to the July cash-out, an employee
must, before the end of the preceding calendar year, designate the number of
hours, up to the applicable maximum number of hours allowed, that he/she would
like to cash out effective on or about July 1st. If the employee fails to make a
designation, he/she will not be allowed to cash out any hours at that time.
In order to exercise this option with respect to the December cash-out, an
employee must, before the end of the preceding calendar year, designate the
number of hours, up to the applicable maximum number of hours allowed, that
he/she would like to cash out effective the last paycheck in December. If the
employee fails to make a designation, he/she will not be allowed to cash out any
hours at that time.
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Once an employee has elected to participate in the Vacation Cash-out Program,
the total number of hours designated for cash-out will be automatically processed
and paid. If an employee has a lower balance of vacation hours than the
designated number of vacation hours, only available vacation hours at the time of
cash-out will be processed.
For employees who elect to cash out vacation hours as specified above, those
hours will be paid to the employee at the end of the fiscal year at the same time
as the Sick Leave Buy Back Program.
During the term of this Resolution, if another City bargaining group, with the
exception of the Santa Monica Police Officers Association, the Santa Monica
Firefighters Local 1109, IBT Local 911, and SMART-TD Local 1785, negotiates a
vacation cash-out program that provides lower minimum vacation leave balances
or a greater number of cashable hours, that program shall also apply to
participants of the Executive Pay Plan.
T. Sick Leave
Participants in the Executive Pay Plan earn sick leave as follows:
1. Upon completion of the first six calendar months of completed service, 48
hours.
2. Thereafter, eight hours per completed calendar month of service.
At the City Manager's discretion, a new participant in the Executive Pay Plan,
based on the terms and conditions of the participant's previous employment, may
be granted a lump sum number of sick leave days upon his or her employment
with the City of Santa Monica.
The use of sick leave shall be as defined in the Santa Monica Municipal Code,
hereby incorporated as if set forth in full herein, except as follows:
Sick leave shall be defined as absence from duty because of the employee's
illness or off-the- job injury, exposure of the employee to contagious disease as
evidenced by certification from an accepted medical authority, medical or dental
appointments of the employee or the employee's dependent children that could
not be scheduled during non-work hours, or illness or injury of the employee's
spouse or children. For the purposes of this Section, an employee's domestic
partner and the children of the employee's domestic partner are covered by this
provision.
Participants in the Executive Pay Plan may elect annually, at the end of the fiscal
year, to receive a payoff for unused sick leave on the terms and limits noted
below or to “bank” unused sick leave. An employee can also elect to split the
number of sick leave days subject to buy back and can designate that a portion
of those days, as specified by the employee, be placed in the employee’s sick
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leave bank as opposed to being cashed out. Payment at the employee's then
current base rate for the fiscal year during which the sick leave was earned but
not used shall be made only to employees working during the last payroll of the
fiscal year as defined by the Finance Department.
Annual sick leave payoffs under this Section for employees are made according
to the following schedule, provided that there are enough sick days accrued in
the employee's sick leave bank to cover the payoff described below:
Less than 10 Years of Service
Sick Leave Hours Used
In the Fiscal Year
Sick Leave Hours Payable
At Fiscal Year End
16 or less
24
32
40
48
56
64
72
80
88
72
64
56
48
40
32
24
16
8
0
10 or More Years of Service
Sick Leave Hours Used
In the Fiscal Year
Sick Leave Hours Payable
At Fiscal Year End
16 or less
24
32
40
48
56
64
72
80
88
96
96
88
80
72
64
56
48
40
32
24
16
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104
112 or more
8
0
Sick leave for which payoff is received shall be considered “used” in that it will
not be added to the “bank” (or if added to the “bank” prior to the payoff date shall
be removed from the “bank”).
Sick leave payoffs under this Section shall be made by separate check by the
end of July following the fiscal year in which the payable sick leave was earned.
For the purposes of this Section, sick leave days subject to payoff at the end of
the fiscal year shall be paid on the basis of eight hours pay, at the employee’s
base salary rate of pay, for each sick leave day eligible for payoff.
U. Bereavement Leave
Bereavement leave of not more than five working days with pay shall be provided
for absence from duty due to the death of the employee’s immediate family
member, meaning: spouse, domestic partner, child, step-child, child of the
employee’s domestic partner, brother, sister, parent, stepparent, parent-in-law,
son-in-law, or daughter-in-law. Bereavement leave of not more than three
working days shall be provided for absence from duty due to the death of other
family members to include sister-in-law, brother-in-law, step-brother, step-sister,
grandparent, grandchild, spouse of stepchild, step-parent of spouse, uncle, aunt,
niece, and nephew. Use of additional appropriate leave (i.e., vacation, sick, or
personal leave) shall not be unduly denied for additional absence from duty
beyond that provided above.
V. Jury Duty
Employees, when duly called to serve on any jury and when unable to be
excused therefrom, shall receive the regular base compensation less all jury fees
received excluding mileage for the time required to be spent in court, provided
that an employee will be paid for jury service, not to exceed 10 work days, and
shall make every effort to cooperate with any request by the City Manager to
request a delay in jury service to accommodate important department work in
progress. Each employee receiving a notice to report for jury service shall
immediately notify the City Manager or his or her designee. Whenever daily jury
duty scheduling permits, the employee shall return to his/her regular daily job
assignment to complete the employee’s regular daily work hours.
If an employee is called for jury service for more than 10 work days, the
employee may request that the City Manager or his or her designee extend the
time period for which the employee will be paid for jury service beyond the 10-
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work day period. The City Manager or his or her designee shall not unreasonably
refuse to grant any such request.
W. Workers’ Compensation Leave
Any employee who is receiving disability payments under the Workers’
Compensation Act of California (for on-the-job injuries sustained while engaged
in the performance of the duties of any such position) shall receive from the City,
during the first 30 calendar days 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. For the next 30
days of such disability absence, the employee shall receive from the City a
payment in an amount equal to the difference between the disability payments
received under the Workers’ Compensation Act and 75% of the employee’s
salary. Such payments by the City shall be made without any deduction from
accrued sick leave benefits. The City’s obligation to make such payments shall
not commence until the third day of such disability absence.
X. Sabbatical Leave
In recognition of the fact that the job demands placed on participants in the
Executive Pay Plan often preclude them from engaging in endeavors that would
contribute to career development and personal development and would thus be
of benefit to the City, participants are eligible to take a sabbatical leave for the
purpose of said developmental activities. In addition to being of benefit to both
the City and the employee, a sabbatical leave is viewed as a reward for good
performance and years of service with the City. Sabbatical leave cannot be used
for the following purposes: 1) parental or FMLA/CFRA related leave; 2) engaging
in an income-generating activity; or 3) engaging in an outside activity that would
be prohibited by the Santa Monica Municipal Code.
An employee is eligible for sabbatical leave at the conclusion of each seven
years of service with the City. A sabbatical leave may be taken for a three-month
to six-month period of time. Compensation for a sabbatical leave will be as
follows: three months at full salary; more than three months up to six months at
half salary. At the discretion of the City Manager, the sabbatical leave can be
extended up to nine months at half salary. While on sabbatical leave, the
employee shall remain on active status.
If an employee qualifies for a sabbatical leave by virtue of years of service, the
employee shall submit a written proposal to the City Manager, outlining the
purpose of said leave. If the operational needs of the employee's department and
the City can still be met and provided that the employee's job performance is
such that a sabbatical leave is merited, upon the approval of the City Manager,
the employee will be allowed to take the sabbatical leave.
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If an employee leaves the employment of the City during a sabbatical leave, the
employee must reimburse the City for all salary and benefits earned during the
sabbatical leave up to the date of separation. Upon return to work following the
conclusion of the sabbatical leave, the employee will be required to continue his
or her employment with the City for at least one year (12 months). If the
employee voluntarily terminates his or her employment during the one-year
period following the conclusion of the sabbatical leave, the employee must
reimburse the City for the full amount of the salary and benefits earned during the
sabbatical leave. In addition, if it is later be determined that the sabbatical leave
was used for a purpose that is prohibited under these provisions, the employee
must reimburse the City for the full amount of the salary and benefits earned
during the sabbatical leave. Any exceptions to these provisions will be at the
discretion of the City Manager.
Y. Severance Pay
The City shall pay the employee severance pay in an amount equal to four
months of the employee’s base bi-weekly salary upon his or her termination by
the City. This severance pay shall be in addition to all accrued leave and other
compensation that is subject to cash-out upon separation from City service. For
the purposes of this Section, “termination by the City” means action by the City
Manager to terminate the employee’s employment with the City. Severance pay
required to be paid by this Section shall be paid within 10 calendar days of the
employee’s last day on the City’s payroll. Severance pay shall not be required
pursuant to this Section if the termination of the employee was the result of: 1)
willful misconduct; 2) conviction of a crime involving moral turpitude; 3) consistent
poor performance in meeting specific objectives or performing the duties and
responsibilities of his or her position; or 4) voluntary separation by the employee.
Z. Management Leave
Each employee is entitled to 24 hours of non-cashable management leave. The
24 hours of non-cashable management leave are available July 1st of each fiscal
year. An employee must be on the payroll as of July 1st in order to be eligible to
receive the 24 hours of non-cashable management leave for that fiscal year.
These 24 hours of non-cashable management leave cannot be carried over from
year to year if not used within the fiscal year during which they accrue, nor shall
the employee be compensated for unused non-cashable management leave
hours at the end of the fiscal year. Any unused non-cashable management leave
hours shall be forfeited at the end of the fiscal year.
Each employee is also entitled to eight hours of cashable management leave.
The eight hours of cashable management leave are available July 1st of each
fiscal year. An employee must be on the payroll as of July 1st in order to receive
the eight hours of cashable management leave. Payment equivalent to eight
hours of the employee’s base salary as of June 30th shall be payable to the
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employee, upon the request of the employee at the end of the fiscal year, if he or
she has not used the cashable management leave hours.
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IN WITNESS WHEREOF, the parties hereto have caused this Executive Pay Plan to be
executed this ___ day of _____________2020.
CITY OF SANTA MONICA
ATTEST: a municipal corporation
________________________ By: ________________________
DENISE ANDERSON-WARREN LANE DILG
City Clerk Interim City Manager
APPROVED AS TO FORM:
________________________
GEORGE CARDONA
Interim City Attorney
EXECUTIVE PAY PLAN
_____________________________
PATTY WONG
EPP Participant
Executive Pay Plan | 2019--2020
Resolution No. 10965 (CCS)
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9/14/2020
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