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2022-18 RESOLUTION NO. 2022-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AMENDING THE STATEMENT OF BENEFITS SECTIONS PERTAINING TO MAJOR MEDICAL INSURANCE BENEFITS FOR EMPLOYEES, MEDICAL INSURANCE BENEFITS FOR CITY COUNCIL MEMBERS, AND ALL LANGUAGE PERTAINING TO CHILD CARE EMPLOYEES. WHEREAS, the City Council is authorized and directed under the provisions of Chapter 2.24 of the Grand Terrace Municipal Code to adopt provisions for compensation of personnel created in said Municipal Code Chapter; and, WHEREAS, the City Council previously approved the Statement of Benefits by Resolution 2021-47 establishing a document for the purposes of outlining equitable employee benefits; and, WHEREAS, the objectives of the Statement of Benefits are to attract to municipal service the best and most competent persons available and to provide for an equitable system of personnel compensation; and, WHEREAS, at the same time, within the limits of administrative feasibility, considerable latitude shall be given to the City Manager in the interpretation and application of these rules so that they are applied equitably; and, WHEREAS, pursuant to Government Code Section 36516(d), City Council Members of the City of Grand Terrace, California, receive a reimbursement-based medical insurance benefit and City Council, therefore, desires to update the Statement of Benefits to include this benefit such that Council Members may be reimbursed for their major medical insurance premiums up to an amount equal to the amount equal to the CalPERS Kaiser Region 3 premium rate, Employee Only Coverage as provided in the updated Statement of Benefits, Section IV, Employee Health Plan, Sub Section F. Major Medical Insurance, which is attached hereto as Exhibit A; and, WHEREAS, the City Council desires to offer the same reimbursement-type medical insurance benefit as described above to City employees who opt out of receiving the Major Medical Insurance as provided in the Statement of Benefits, Section IV, Employee Health Plan, Sub Section F. Major Medical Insurance; and WHEREAS, the City of Grand Terrace no longer operates a Child Care Center or employees Child Care employees, the City Council desires to update the Statement of Benefits and remove all obsolete language pertaining to Child Care employees. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: CC Reso No. 2022-18 Page 1 of 12 April 26, 2022 SECTION 1. The Statement of Benefits shall be amended as shown in Exhibit A attached hereto, and shall supersede and replace the Statement of Benefits adopted pursuant to Resolution 2021-47. The amended Statement of Benefits shall be effective April 26, 2022. SECTION 2. In the event of conflicting language between any City rules, policies or regulations and any provision of the Statement of Benefits, the Statement of Benefits shall control. PASSED, APPROVED and ORDERED by the City Council of the City of Grand Terrace, California at a regular meeting held on the 26th day of April 2022. Da y cN b Mayor ATTEST: = - Debra Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney CC Reso No. 2022-18 Page 2 of 12 April 26, 2022 EXHIBIT A City of Grand Terrace Employee Statement of Benefits April 26, 2022 I. Retirement A. CalPERS - The City of Grand Terrace provides retirement benefits through the California Public Employees Retirement System (CalPERS). All regular employees budgeted a minimum of 20 hours per week shall be enrolled in this Plan. 1. The City's current formula is 2.7% at 55, for employees hired prior to January 1, 2013. 2. All employees hired after January 1, 2013 and who are eligible under the Public Employees Pension Reform Act (PEPRA) shall be enrolled in the 2% at 60 retirement formula. 3. All other employees hired after January 1, 2013 shall be enrolled in the 2% at 62 retirement formula in accordance with PEPRA. 4. The City pays 1.418% of the 8% Member Contribution to CalPERS Retirement for all employees enrolled prior to January 1, 2013. All employees enrolled after January 1, 2013 shall pay the full Member Contribution. 5. The retirement contract also includes the following provisions: Available to Employees Before After Enrolled 01/01/2013 01/01/2013 Single Highest Year Yes No Three Year Final No Yes Compensation 1959 Survivor Benefit (4th Yes Yes Level Military Service Credit Yes Yes B. 457 Deferred Compensation -All employees shall be entitled to participate in the City's 457 Deferred Compensation Plan. C. Alternate Retirement System - Except where required by law or by contract, all employees budgeted less than 20 hours per week or employees who have been placed on the City payroll on a temporary basis shall participate in the City's Alternate Retirement System (ARS). 1. The ARS plan is provided in lieu of participation in Social Security, and as such shall be updated as necessary to comply with current regulations. II. Leaves. A. Bereavement Leave —See Sick Leave. B. Comp Time — All employees shall be allowed to accrue compensatory time (comp time) in lieu of overtime pay. Comp time shall be computed in accordance with current FLSA and State of California guidelines. The maximum accrual shall be 80 hours. C. Management Leave — On January 1 of each year, beginning with the January 1st immediately following the first anniversary of employment, exempt employees shall receive 80 hours management leave in addition to other leaves. This management leave must be used during the fiscal year in which it is received. Newly hired exempt employees shall receive a prorated amount of Management Leave. D. Maternity/Bonding Leave — Maternity and/or Bonding Leave shall be provided to employees in accordance with State and Federal Law under the Family Medical Leave Act (FMLA), the California Family Rights Act (CFRA) and the Pregnancy Disability Law (PDL). E. Sick Leave — Sick leave with pay shall be granted to all probationary and regular employees budgeted to work a minimum of 20 hours per week. 1. Full-Time Employees shall accrue sick leave according to the following schedule: Type of Employee Received Received Per Pay per Annum Period City Hall — Non-Exempt Regular Full-Time 3.69 96 hours Employee, Exempt Employee 2. Regular Part-Time Employees budgeted at least 20 hours per week shall receive sick leave accruals on a pro-rata basis. 3. Employees may not accrue more than 480 hours of Sick Leave. 4. Any employee whose current accrued Sick Leave is in excess of 480 hours shall retain the hours they currently have. No additional hours will be accrued until their Sick Leave bank drops below 480 hours. 5. Any employee who separates from the City after five (5) years of service, for reasons other than disciplinary cause, shall be compensated for 40% of all unused sick leave. -- -- - -- --------- -- ------ ------------------------- ------ 6. Family Sick Leave — An employee shall be entitled to use up to half of their annual sick leave accruals to care for a child or spouse who is injured or ill. 7. Bereavement Leave—An employee may use up to 3 days of sick leave in any twelve-month period as bereavement leave for the death of a family member. A family member is defined as a spouse/domestic partner, parent, sibling, child, grandchild, or grandparent of the employee or of the employee's spouse/domestic partner. 8. Options on Retirement — CaIPERS rules have additional provisions for unused sick leave. All employees who are retiring under the CaIPERS plan are eligible to participate in such provisions in accordance with the CaIPERS regulations which are current at the time of the employee's retirement. 9. Reimbursement for Unused Sick Leave During Employment — Suspended (See Furlough Provisions) a) Any regular full-time regular employee who has used 40 hours or less sick leave during the calendar year shall be entitled to be reimbursed for up to 40 hours of unused accrued sick leave so long as the employee's remaining accrued sick leave balance does not fall below 80 hours as a result of the reimbursement. b) Regular part-time employees that are budgeted to work 20 or more hours per week shall be entitled to be reimbursed for a percentage of their accrued sick leave based on a prorated percentage of hours worked as compared to 40 hours for a full-time employee so long as the employee's remaining accrued sick leave balance does not fall below the same prorated percentage of 80 hours. c) Reimbursement for accrued sick leave for a calendar year shall not be available to employees terminating on or before December 31 of that same calendar year. d) Sick Leave Sell Back Form - In order to receive reimbursement for accrued sick leave, all eligible employees shall complete a Sick Leave Sell Back Form, which is available in the Human Resources office. The completed form must be provided to the Personnel Officer by no later than the first week of January of the following calendar year. F. Vacation - Each regular full-time and regular part-time employee budgeted for 20 or more hours per week, shall be credited with annual vacation leave according to their number of years of service as follows: --- --- --- -- - --— --- - --- -- - ---------------------- 5 Page 1. Full-Time Employees shall accrue vacation leave according to the following schedule. Years Received Per Received Type of Employee of Pay Period per Servic Annum e City Hall — Non-Exempt Regular Full-Time Employee, 1-5 3.08 80 hours Exempt Employee City Hall — Non-Exempt Regular Full-Time Employee, 6 - 10 4.62 120 Exempt Employee hours City Hall — Non-Exempt Regular Full-Time Employee, 11+ 6.15 160 Exempt Employee hours 2. Regular Part-Time Employees budgeted at least 20 hours per week shall receive accruals on a pro-rata basis. 3. Earned vacation will be credited upon completion of the first six months of continuous service and every pay period thereafter. 4. Employees may not accrue more than 480 hours of vacation leave. 5. In the event an employee who has served continuously for at least twelve months does not take all of the vacation to which they are entitled in any year, the employee shall be allowed to accumulate the balance, to be taken in a subsequent year. 6. No employee shall be granted a vacation leave period greater than the amount of available vacation accruals. 7. Each employee shall take a minimum of one work week off each year. -- - ---- ---- - - -- -- -- ---- ----- ---- -- ------ ------ ------ -- ------- 6 Page III. Holidays A. The City of Grand Terrace observes the following holidays for City Hall, Child Care, & Exempt employees: 1 New Year's Day January 1 2 Martin Luther King Jr. Day Third Monday in January 3 President's Day Third Monday in February 4 Cesar Chavez Day March 31 5 Memorial Day Last Monday in May 6 Independence Day July 4 7 Labor Day First Monday in September 8 Veteran's Day Second Monday in November 9 Thanksgiving Day Fourth Thursday in November 10 Day After Thanksgiving Fourth Friday in November Da 11 Christmas Eve December 24 12 Christmas Day December 25 13 1 New Year's Eve December 31 Floating Holidays. All employees shall receive two (2) floating holidays per calendar year. Employees entitled to floating holidays shall be paid the equivalent of the employee's one workday of compensation for the floating holiday. Floating holidays must be used by the end of the corresponding calendar year. Any floating holiday hours not used by the end of the calendar year will be cashed out and included in the first pay period in January. If any of the holidays fall on a Friday or Saturday, the holiday will not be observed on the preceding Wednesday or Thursday. For any holiday that falls on a Sunday, the City Manager shall have discretion as to whether that holiday will be observed on the following Monday. 1. Employees entitled to holidays shall be paid the equivalent of the employee's one workday of compensation for the holiday. 2. Part-Time Employees budgeted at least 20 hours per week shall receive floating holidays on a pro-rata basis. 3. Any employee scheduled to work on a City Holiday and who works the holiday, shall be credited with additional floating holiday hours equal to the hours actually worked on the holiday. 4. At the City Manager's discretion, floating holidays may be used for the closure of City Hall during the Christmas holidays. 5. In order to receive Holiday Pay, an employee must be in a paid status on the day before and the day after the holiday. ------- ------ -- -- --- 7 Page IV. Employee Health Plan A. City of Grand Terrace Employee Health Plan includes major medical, dental, and vision insurances; the Employee Assistance Program, and the Cafeteria Plan. To be considered a part of the City's Employee Health Plan, the City must have a negotiated contract with the benefit provider to include specific rates for City of Grand Terrace employees. B. All regular employees budgeted 20+ hours per week are eligible to participate in the City's Employee Health Plan. C. The Benefit Allowance as paid under the City's Cafeteria Plan is intended to offset the employee's out-of-pocket expenses under this plan. D. All aspects of the Employee Health Plan are eligible for continuation under Federal COBRA regulations. Further, if the employee qualifies for such, the major medical insurance may be eligible for further continuation provisions under Cal- COBRA. 1. Eligibility—All individuals who meet the following criteria are eligible to participate in the Employee Health Plan. a) City of Grand Terrace employees budgeted for 20 or more hours a week. b) Spouse or registered domestic partner of a participating employee. c) Legally qualifying dependents of a participating employee and/or of the employee's spouse or registered domestic partner. d) Spouse/registered domestic partner/dependents may only participate in the coverage options under this plan for which a City of Grand Terrace employee is also an enrolled participant; ie, if a dependent wishes to have medical coverage under this plan, the employee must also be enrolled in medical coverage. E. Cafeteria Plan. The City of Grand Terrace maintains a Section 125 Cafeteria Plan. The Cafeteria Plan includes the following options: 1. Benefit Allowance. As a part of the Cafeteria Plan, the City of Grand Terrace pays a Benefit Allowance to employees to offset the cost of purchasing pre- and post-tax benefits as allowed under Section 125 of the IRS Code. a) Any portion of the Benefit Allowance not utilized by the employee for the purchase of benefits shall be considered taxable income to the employee. ------ - ----- -- -- ----- - -- -- - - --------- ---- ---- ---- -- -- 8 P a g e -- -- - -------- --- b) Such allowance is paid according to the following schedule: Years of Monthly Amount Type of Employee Service City Hall — Non-Exempt, Regular N/A $600.00/month Employee, Full-Time ($6,000 annually) Exempt Employee City Hall — Non-Exempt, Regular N/A $300/month Employee Part-Time, ($3,000 annually) 2. Pre-Taxing Insurance Premiums. Eligible employees may choose to pre-tax premiums for any/all of their insurances which are purchased through payroll deduction, except as noted below: a) Life insurance premiums may only be pre-taxed to the extent permitted by current IRS regulations. b) The City does not permit employees to pre-tax the premiums of any disability insurance product. 3. Flexible Spending Accounts (FSA). Employees may contribute pre-tax dollars to the following FSA options: c) Medical Reimbursement Account d) Dependent Care Reimbursement Account e) Adoption Assistance Account f) The type(s) of FSAs available is determined by the IRS and is thus subject to change by the Federal Government. g) FSA's are subject to annual contribution limits as established by the IRS. h) Expenses paid from an FSA may not be claimed as a deduction on an employee's tax return. --- - ---------- -- --- ------ ------------ ---- ---------- ------------------- ------- -- 9 Page Major Medical Insurance — The City is currently contracted with CalPERS for major medical insurance. In accordance with the terms of the contract the City shall pay for insurance for eligible employees in the groups listed below. Employees who waive coverage and provide proof of major medical insurance outside of the City benefit are eligible for premium reimbursement up to the cost of the CalPERS Kaiser Region 3 premium rate for employee only upon submission of proof of payment. City Council Members are eligible for major medical insurance premium reimbursement only, up to the cost of the CalPERS Kaiser Region 3 premium rate for employee only upon submission of proof of payment of major medical insurance premium. Type of Employee Years of Amount Paid Service City Hall — Non-Exempt N/A Amount equal to Regular Employee the CalPERS budgeted 20+ hours, Kaiser Region 3 Exempt Employee premium rate, Employee Only Coverage F. Dental Insurance — The City has contracted for a choice of either an HMO or a PPO plan. Premiums are paid by the employee. G. Vision Insurance —The City has contracted for Vision Insurance. Premiums are paid by the employee. H. Employee Assistance Plan —The City offers an Employee Assistance Plan at no cost to the employee. The Employee Assistance Program provides confidential counseling referrals and other services to employees. V. Other Insurances The City is contracted for the following additional insurance plans. These insurance plans are available to all regular employees budgeted 20 or more hours per week and are not considered a part of the Employee Health Plan. A. Life Insurance —The City provides basic term life insurance for employees and their eligible dependents subject to the following limits: 1. Employee—Amount equal to covered annual earnings. 2. Dependent - $3,000.00 B. Short Term Disability—The City offers a voluntary short term disability plan to all regular employees budgeted 20 or more hours per week. This coverage is paid by the employee. ----- - - --- -- -- -- --- ------ -- C. Long Term Disability - The City offers a voluntary long term disability plan to all regular employees budgeted 20 or more hours per week. This coverage is paid by the employee. D. Supplemental Insurances — The City's Section 125 Plan provider may offer supplemental insurance plans to City employees. The City does not negotiate for rates on these supplemental plans. Supplemental plans are not considered part of the City's benefit package. Employees may pay for these plans by payroll deduction. Employees may pre-tax their premiums for these plans as allowed by IRS regulations. VI. Additional Pays A. Bilingual Pay — Employees who have qualified under the Personnel Rules as being fluent in Spanish shall receive $50.00 per month. At the City Manager's discretion, other languages that are deemed a business necessity shall also qualify for Bilingual Pay. B. On-Call Pay — Employees placed in an on-call status for a period of one (1) week shall receive their choice of either 9 hours of regular time or 9 hours of straight comp time for that week. On-call staff called out after their normal working shift will be paid a minimum of two (2) hours in accordance with the Personnel Rules. C. Vehicle Allowance —Vehicle Allowance shall be paid to Department Heads at the rate of$300 per month. VI I. Grandfathered Provisions A. Longevity Pay — $100 per month for full-time employees with 10 years of service prior to June 30, 2010. Part-time employees with 10 years of service prior to June 30, 2010 receive a prorated amount depending on hours worked. This applies only to employees in Continuous Service since June 30, 2010. B. Child Care Credit— Employees already receiving the Child Care Credit prior to June 30, 2010 shall be eligible to continue receiving a 50% discount for their child care expense up to a maximum of$4,000 per year. This applies only for the child(ren) receiving the credit prior to April 14, 2015 and only if the Employee has remained in Continuous Services since June 30, 2010. This benefit will be charged to the covered employee's department. VIII. Employees Hired Under Employment Agreement A. Employees who are working under an Employment Agreement approved by the City Council may be subject to different employment benefit provisions than - ----- -- --- -- ----- ----- -------------- - 111Page those contained in this Statement of Benefits. IX. Furlough Provisions The City of Grand Terrace employees are under mutually agreed furlough provisions. These provisions are a temporary cost savings measure and shall remain in force as follows until such time as the budget permits abolishing this section. A. City Hall Employees — City Hall employees have agreed to the following: 1. Sick Leave Sell Back Program Suspended — Became effective July 1, 2010. ----- -- -- --- ------- -- - - ------- -- -- --- - - --- ------- ------------------- --- ---- 121Page STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2022-18 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 26th day of April 2022, and that the same was passed and adopted by the following vote: AYES: Council Members Allen, Wilson, Robles; Mayor Pro Tern Hussey; Mayor McNaboe NOES: None. ABSENT: None. ABSTAIN: None. Executed this 27t" day of April 2022, at Grand Terrace, California. Debra L. Thomas - =" City Clerk =