EEoi-ts COMP PLAN NO. (04/10/18) Amended and Restated Executive Employee Compensation Plan AMENDED AND RESTATED EXECUTIVE EMPLOYEE COMPENSATION PLAN

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1 COMP PLAN NO. EEoi-ts AMENDED AND RESTATED EXECUTIVE EMPLOYEE COMPENSATION PLAN CITY MANAGER RESPONSIBILITIES AND AUTHORITY The City Manager, as chief administrative officer of City, and with responsibility for all employees not appointed by City Council, is responsible for administration and implementation of this compensation plan. The City Manager is responsible for attracting and hiring very best candidates to fill Department Director, Assistant Department Director and Senior Management positions with City. The City Manager may also grant alternate workweek (such as 9/80 and 4/10) and flexible schedules instead of traditional 5/40 schedule. The City Manager shall notify City Council when granting any schedule or than traditional 5/40 schedule. DEPARTMENT DIRECTOR, ASSISTANT DEPARTMENT DIRECTOR AND SENIOR MANAGEMENT EMPLOYEE LEVELS There shall be three levels of employees affected by this Compensation Plan. They are classified as: Department Director, Assistant Department Director and Senior Management. The positions within each classification are as follows: Department Director Assistant City Manager Chief Information Officer Chief of Police Director of Community Development Director of Community Services Director of Finance Fire Chief Director of Human Resources Director of Public Works B \ v4.doc

2 Assistant Department Director Assistant Chief Information Officer Assistant Director of Community Development/Building Official Assistant Director of Community Development/City Planner Assistant Director of Community Services Assistant Director of Finance Assistant Director of Human Resources Assistant Director of Public Works/Infrastructure and Field Assistant Director of Public Works/Parking and Facilities Assistant Chief of Police City Engineer Deputy City Manager Deputy Fire Chief Director of Emergency Management, Resilience and Recovery Senior Management Deputy Director of Rent Stabilization Deputy Director of Transportation Budget and Revenue Officer City Architect Deputy Director of Public Works/Operational Support Assistant City Clerk The City Manager may make appointments within prescribed levels of management for any position upon evaluation of employee qualifications and job responsibilities. Ill. MANAGEMENT INCENTIVE PAY Department Director, Assistant Department Director and Senior Management Employees shall be entitled to Management Incentive Pay (MIP) above ir base pay, at rates established by City Council, as listed below. MIP is a means of assuring recruitment and retention of highly capable and qualified employees. It provides eligible employees extra pay for unique nature of ir jobs and special skills, knowledge and abilities required. The compensation is paid as earned for normally required duties performed during normal work hours. It is not compensation in lieu of overtime nor in lieu of or benefits that are excluded from consideration under statutes and regulations of Public Employees Retirement System. Department Heads will be entitled to $ per month, Assistant Directors will be entitled to $ per month and Senior Management Employees will be entitled to $ per month. Employees receiving MIP in excess of se B \ v4.doc -2-

3 amounts as of December 2009 will be grandfared at such higher level until MIP for ir level meets or exceeds ir individual amount. Employees moving to a lower level will receive MIP for lower level on effective date of change. IV. LEAVES A. Holidays Department Director, Assistant Department Director and Senior Management employees shall be entitled to following paid holidays if said employee worked regularly assigned work period day before and day after holiday or was absent on authorized paid leave during said period: New Year s Day January 1 Martin Lur King Day 3rd Monday in January Presidents Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Veterans Day November 11 Thanksgiving Day Fourth Thursday in November Day after Thanksgiving Day after 4th Thursday in November Christmas Day December 25 If following holidays (January 1, July 4, November 11, and December 25) fall on a Saturday, preceding Friday shall be considered holiday; if holiday falls on Sunday, following Monday shall be considered holiday. If holiday falls on a day which is an off day for employees working 9/80, 4/10 or anor alternate or flexible schedule, those employees shall receive a floating holiday in lieu of holiday. Floating holidays may be taken at employee s discretion, subject to approval of Department Head or designee. Floating holidays may only be used after holiday has occurred, unless employee requests to use floating day contiguous to actual holiday. If employee does not use his/her floating holidays earned within calendar year in which employee has received it, he/she will not earn any additional floating holidays in subsequent years until employee s holiday balance reaches zero. Provided, however, that those floating holidays which are earned in November or December, may be held and may be used during year granted and for two months of following year. -3-

4 B. Personal Holiday Department Director, Assistant Department Director and Senior Management employees shall be entitled to two paid personal holidays each calendar year. Said holidays may be taken at employees discretion subject to ir supervisor s approval. Employees are encouraged to use said personal holidays during year y are accrued. Employees may not have more than two personal holidays on books at any time. If at end of a calendar year, an employee still has personal holidays on books, for following calendar year, employee will receive only that amount of personal holidays that will bring balance to two personal holidays, in accordance with California Labor Code Section Personal holidays cannot be cashed out at end of year. Effective at start of calendar year 2019, personal holidays will be converted to a fiscal year basis. Employees covered by this plan will receive one personal holiday at start of calendar year 2019 or amount of time, if any, to bring employee to one personal holiday, whichever is less. Employees covered by this plan will receive sufficient personal holidays at start of each fiscal year reafter to provide two paid personal holidays. C. Vacation Leave 1. Authorization for Taking Vacation Upon approval of ir supervisor, employees may take accrued vacation leave. 2. Holidays During Vacations When a holiday falls within an employee s vacation leave, leave time shall be extended or credited by amount of holiday time. 3. Vacation Accumulation Vacation credit shall be accrued biweekly to Department Director, Assistant Department Director and Senior Management employees at following rates: FIRST YEAR BEGINNING THE 2ND YEAR AFTER 14 YEARS OF SERVICE OF SERVICE OF SERVICE 3.07 Hours 4.60 Hours 6.13 Hours Bi-weekly Bi-weekly Bi-weekly 80 hours/yr 120 hours/yr 160 hours/yr -4-

5 Department Director, Assistant Department Director and Senior Management employees may accumulate accrued vacation up to a maximum of 240 hours, plus current year s accruals. For example, employees earning vacation leave at rate of 120 hours per year whose vacation accumulations at beginning of calendar year are less than 360 hours may accumulate vacation leave which will result in ir balances being above 360 hours but se employees must not have more than 360 hours at end of calendar year ( ). Likewise, employees earning 160 hours per year whose vacation accumulations at beginning of a calendar year are less than 400 hours may accumulate annual vacation which will result in ir balances being above 400 hours, but se employees must not have more than 400 hours at end of calendar year ( ). Employees in ir first through fourth years, earning at applicable rate of 80 or 120 hours per year, normally will not have mamatical possibility of exceeding applicable limit of eir 320 hours ( ) or 360 hours ( ) for ir level. If an employee is above applicable limit at end of calendar year (320, 360 or 400 hours), employee will receive no additional vacation accumulation until his or her accumulation is below applicable limit. The examples above notwithstanding, an employee hired or rehired on or after January 1, 2010 may not exceed accumulation limit (320, 360 or 400 hours) at any time during year and will not earn any additional vacation accumulation once limit is reached and until employee s vacation accumulation falls below applicable limit. The City Manager may grant a temporary written waiver of accumulation limit where an employee is unable to take vacation because of work scheduling or where required by law. Except as authorized by City Manager according to this paragraph, any vacation leave credited to an employee above applicable accumulation limit has not been earned and is credited in error. The vacation leave accumulation records of an employee may be corrected to remove such time credited in error. In December of each calendar year, upon employee s request, an employee with 240 hours or more of accumulated vacation can receive cash payment for up to 80 vacation hours earned but not taken during calendar year. The City Manager may advance not more than 80 hours of vacation leave to new employees covered by this compensation plan as an advance of future vacation leave to be earned. An employee leaving City employment will not be paid for any portion of advance that has not been earned at time of separation. The City Manager may also advance -5-

6 accumulation rate of a new employee based on years of prior service in or jurisdictions or upon prevailing market conditions. D. Sick Leave Every Department Director, Assistant Department Director and Senior Management employee shall accrue eight (8) hours of sick leave per month. The City Manager may advance not more than 80 hours of sick leave to new employees covered by this compensation plan as an advance of future sick leave to be earned. Hours advanced will not be eligible for cash conversion, under Sick Leave Incentive or orwise, unless and until earned. 1. Job Connected Disability Except as provided herein, no employee shall be entitled to use accumulated sick leave during any period for which he/she is entitled to receive temporary disability indemnity under Division 4 (Section 3201, et. seq.) of California Labor Code. Any employee (except members of Fire and Police Service entitled to industrial leave benefits of Section 4850 of California Labor Code) entitled to receive such temporary disability indemnity may elect (for a period not to exceed twelve (12) months after he/she first makes such election) to use as much of his/her accumulated sick leave or accumulated vacation, so when added to his/her temporary disability indemnity will result in a payment to him/her of not more than full base pay or wage. 2. Sick Leave Incentive Department Director, Assistant Department Director and Senior Management employees, who use twenty-four (24) or fewer hours of sick leave in a single payroll year (defined as year that ends at end of last full pay period in December where payday is also in December), may convert up to 24 hours of sick leave to cash during month of December of that payroll year or month of January of following year. The limit of payment shall be 24 hours per calendar year. E. Bereavement Leave Bereavement leave is an absence occasioned by death of a family member of employee. Forty (40) hours of bereavement leave, per calendar year, may be used in event of death of a family member, herein defined as a spouse, -6-

7 Amended and Executive Employee Restated Compensation Plan registered domestic registered domestic partner in- partner, parent, bror, sister, child, law, or of of employee. In an additional time off for this leave, may 40 hours of sick leave year. parent employee needs per calendar he/she grandparent, event use up to Requests for leave shall be in writing, when and shall be approved by Head in consultation with Director of Human In required of employee, and could not prospectively make a approval must still be in writing. presence subsequent bereavement Resources. he/she Department made event emergency obtained feasible, request, F. Witness and Jury Leave Any who is required to a to a lawful in any judicial or quasi judicial proceeding or who is required to a juror, shall be allowed time off without toss of pay to perform duties. In addition, per California Labor Code section 230(b), an shall be allowed time off but with loss of pay, if is a party to for than within of employee s current or public employment. All to which is entitled by law for service shall be paid allowance, if any) to City. This section is not applicable to participating in judicial or quasi-judicial of ir employment. employee subpoena serve as such employee matter employee transportation those employees that are within scope reasons or past serve as such witness pursuant actions fees employee scope (less proceedings Upon receipt of a jury should notify ir Head so that for jury duty can be relative to pending projects of This notification will give Department Head and employee s an opportunity to or not a is wher summons, employees request department. supervisor postponement G. Professional Development Program necessary. considered Department discuss 1. Department Director, Management employees are Assistant Department Director and eligible for this program. Senior A City paid leave of absence (sabbatical established with following privileges and restrictions: leave) program shall be The granting of Manager. sabbatical leaves shall be at discretion of City 2. Approval of following criteria: requests for sabbatical leave shall be based on -7-

8 a. Content of a leave program with a basic requirement that program be designed to professionally develop employee in a manner potentially beneficial to his or her City employment. b. A plan for maintaining work continuity of employee s duties and responsibilities during his or her absence, with emphasis placed on development of subordinates through training assignments. c. Coordination with departmental priorities and workload. d. Employee s performance record. 3. Sabbatical leaves may allow up to Five Hundred Dollars ($500) for expenses. 4. Sabbatical leaves shall be restricted to one (1) leave up to ninety (90) calendar days, for each Department Director, Assistant Department Director and Senior Management employee each five (5) years with not more than three (3) Department Director, Assistant Department Director and Senior Management employees participating in any one (1)year. 5. Each participant in Sabbatical Leave Programs shall submit to City Manager reports summarizing his or her activities prior to final approval of such programs. 6. Typical Sabbatical Leave Programs might include internships, on-loan executive programs, educational programs, travel-study programs, or authorship sabbaticals. H. Administrative Leave Each Department Director, Assistant Department Director and Senior Management employee will be granted up to 120 hours of Administrative Leave each calendar year pursuant to following: Administrative Leave shall be granted in recognition of overtime work and nature of work performance and expectations placed upon Department Director, Assistant Department Director and Senior Management employees. Administrative Leave shall be approved by employee s supervisor noting needs of department and necessity of having personnel available for effective functioning of department. B \ v4.Uoc -8-

9 A Department Director, Assistant Department Director and Senior Management employee, upon request in December of each year, may receive cash payment for up to 80 hours of administrative leave for that calendar year. li employee still has unused leave after 80 hour maximum cash out, n whatever amount of leave is left will rollover to next calendar year and City will grant an additional number of hours to raise employee s administrative leave balance for that calendar year up to maximum of 120 hours, per California Labor Code Section I. Miscellaneous Paid Leave The City Manager may approve additional paid leave (including benefits) under certain conditions including: administrative investigations, continuous employee s absence if caused by an injury on duty, employee sick leave exhaustion, certain disciplinary procedures and or situations as deemed appropriate by City Manager in best interests of City. V. INSURANCE PROGRAMS As of January 1, 2010, provisions of this Section V shall no longer be applicable to Department Directors, Assistant Department Directors, and Senior Management Employees. To extent this Section V is specifically made applicable to Councilmembers and City Treasurer by terms of City Council and City Treasurer Compensation Plan, it shall continue to be applicable to m. A. Medical Insurance The City shall provide a medical insurance program to Department Director, Assistant Department Director and Senior Management employees, cost of which shall be borne by City. The City shall also provide a medical insurance program for City Councilmembers and City Treasurer (to extent required by terms of City Council and City Treasurer Compensation Plan) during ir terms of office, cost of which shall be borne by City. The cost of coverage may vary, contingent upon number of dependents claimed. Insurance coverage is effective first day of month following 30 day waiting period. In event an employee is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(l) of this Plan, City shall pay medical insurance premium of an employee and dependents coverage to limit of one month s coverage for each full year of said employee s City services. -9-

10 The City shall pay, at rate set forth below, premium for employees and dependents, if any, for medical benefits during continuous periods of an employee s unpaid absence if caused by an injury or job related illness while on duty. The payment shall be at rate of one month s premium contribution for each year of service or major portion reof. The City s present medical insurance plan is CaIPERS medical insurance plan. The payment of benefits toward this medical insurance program will be through administration of a flexible benefit (cafeteria plan) package. The City shall pay minimum required under Government Code Section (b) or its successor on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant. In addition to minimum payment required under Government Code Section (b) or its successor, flexible benefits shall be provided as follows: 1. For active Department Director, Assistant Department Director and Senior Management employees, City shall pay difference between minimum required under Government Code Section (b) or its successor and actual cost of medical insurance premiums up to full family coverage of PERS Care Plan. 2. For employees retiring (service retirement only) from City of Beverly Hills after July 1, 1981, with exception of those employees hired or promoted as a Department Director, Assistant Department Director and/or a Senior Management employee or equivalent former position on or after December 2, 1997, City shall continue to pay difference between minimum required under Government Code Section (b) or its successor and actual cost of medical insurance premiums up to two party rate of PERS Care Plan under CaIPERS. In event of death of a retired employee, City shall continue to pay single party coverage rate of PERS Care Plan under PERS for spouse or registered domestic partner. 3. For employees hired or promoted as a Department Director, Assistant Department Director and/or a Senior Management employee on or after December 2, 1997, retiree medical insurance benefit shall be as follows: a. Employee must complete a minimum of 5 years of full time employment with City of Beverly Hills; and -10-

11 Amended and Executive Employee Restated Compensation Plan b. Receive a service retirement from City of Beverly Hills; and c. Remain continuously retired from City of Beverly Hills without to active with PERS. To remain eligible for this benefit, an work for PERS contracting and make contributions to PERS to retirement. reinstatement his/her For pay retirees Government cost Care actual PERS spouse agency status employee cannot anor enhance meeting conditions, City shall continue to difference minimum required under Code Section (b) or its and of medical up to two-party rate of plan PERS for and for or surviving to conditions below: spouse se under between insurance spouse subject i) A includes any marriage, civil union eligible for plan a partner. partner documents, such as registered domestic successor employee domestic coverage under spouse, husband, partnership or applicable wife or ii) An must elect City premium contributions above statutory minimum for a surviving upon first being eligible for City s plan, at a of $10.00 month while employee is employed and paid by payroll deduction on a reduction in City s contribution toward statutory minimum. Typically, election will occur at initial employment in Executive Employee Group or at of a partnership. An who not timely elect and pay $10 monthly may not later elect surviving premium contributions. The not refundable, if an City service without retiree medical divorced, a partnership or is orwise to take of surviving premium contributions. spouse employee date cost employee domestic advantage charge per subsequent marriage or even does employee leaves coverage, gets spouse spouse coverage under domestic based coverage above employee payments are spouse terminates unable 4. With of City Manager, if an is hired in Department Director, Department Director and Senior group on or after 2, 1997, but before 1, 2010, and previously retired from active from an by PERS; and is within first five of service a full-time with City of Beverly Hills; and was entitled to and receiving retiree medical benefits equal to paying at 25 of premium for medical concurrence Management January agency served as agency has 11 Assistant December permanent employee least percent employee status years

12 Amended and Executive Employee Restated Compensation Plan insurance for employee; and retires or from city service for any involving incapacitation or an inability to perform duties of this employee s position but is not limited to voluntary retirement prior to employee s fifth of employment with City of Beverly Hills and retirement in lieu of termination) n this shall be eligible for benefit outlined in 3. Specifically, City shall pay of medical premiums to difference minimum required Section (b) or its and actual cost of medical up to twoparty rate of PERS plan PERS. excludes cost successor anniversary insurance reason that employee equal under Government Care under Code insurance employee separates (expressly between B. Dental Insurance The City shall provide one or more dental plan(s) to active Department Director, Department Director and of which shall be borne by City. The of may vary, contingent upon of or enrolled. Upon retirement, Director, Department Director and can continue in City s dental plan, at ir own to and to and conditions of plan document. The City right to modify or discontinue retiree dental on availability, market conditions and factors. Management employees, cost coverage and/or spouse Assistant employees extent based Assistant cost domestic partner subject terms reserves insurance number or Senior dependents Department Senior Management expense n-applicable C. Life Insurance Assistant Management employees insurance Department Director, Department Director and shall be entitled to a hundred dollar ($300,000) term life policy City s life program. The full premium for policy shall be paid for by City life program of its choosing. Each shall have option to additional life available. City s unit cost, if at under insurance purchase such three under insurance Senior thousand insurance such employee D. Disability Insurance insurance Senior Management employees. Assistant Management Department base taxable expense, Assistant $10,000 per each Senior The City shall provide, at employees long-term disability for Department Director, Department Director and This benefit shall be mandatory for Director, Department Director and employee. The disability plan will pay two thirds (66%) of employee s pay, up to a maximum of day disability wait period. month with a

13 E. Disability Leave - Extended Disability Ease Pay and Benefits Continuance The City shall provide to each Department Director, Assistant Department Director and Senior Management employee extended disability base pay and benefits (less legally required deductions) continuance in event that an eligible employee sustains an injury or illness causing long term disability. This continuance shall be up to 90 days, as approved by City Manager at his/her sole discretion, upon recommendation from Director of Human Resources. After this period, or upon commencement of disability benefits from above, whichever occurs first, City s Extended Disability Base Pay and Benefits Continuance shall insurance provided pursuant to subsection stop. To qualify for this pay and benefits continuance, an employee must notify Risk Management Division aware that an injury or illness may result in D writing immediately upon becoming in a long term disability. Risk Management Division, contact employee s physicians and medical treatment centers as will in consultation with Human Resources Division, may be appropriate to determine severity and scope of injury/illness and probable length of absence of employee. The employee must also make himself or herself available for examination by a City appointed physician (at City expense). The employee must file for disability insurance within prescribed insurance required time-lines and provide City with a written statement from a physician, satisfactory to Risk Manager, detailing employee s injury or illness and recommending disability leave. No Extended Disability Base Pay and Benefits Continuance shall be granted for employees if y do not follow procedures as set forth this section or do not qualify for disability insurance. in Employees covered under this program shall not receive a monetary amount greater than y would normally receive y had been working under normal conditions. Any disability indemnity received by employee from State of California for purpose of insuring a weekly or monthly income as result of same work incurred injury for which employee is receiving Extended Disability Base Pay and Benefits Continuance from City shall be paid to City. if F. Optical Insurance The City shall provide one or more optical insurance plan(s) to active Department Director, Assistant Department Director and Senior Management employees, cost of which shall be borne by City. The cost of coverage may vary, contingent upon number of dependents and/or spouse or domestic partner enrolled. Upon retirement, Department -13-

14 Director, Assistant Department Director and Senior Management employees can continue in City s optical plan, at ir own expense to extent and subject to terms and conditions of n-applicable plan document. The City reserves right to modify or discontinue retiree optical plan based on availability, market conditions and or factors, VI. MEDICAL INSURANCE BENEFIT AND FLEXIBLE BENEFITS (CAFETERIA) PLAN As of January 1, 2010, provisions of this Section VI shall be applicable to Department Directors, Assistant Department Directors, and Senior Management Employees. The City shall contribute PERS statutory minimum toward cost of providing medical insurance on behalf of each participant in this program. A participant is defined as 1) any current employee and dependents, 2) an enrolled retiree and dependents, and 3) a surviving annuitant. In addition, in order to enhance City s Flexible Benefits (Cafeteria) Plan, as of January 1, 2010, City shall provide a monthly benefit contribution (in addition to PERS statutory minimum contribution to medical insurance for all participants) to each current Department Director, Assistant Department Director and Senior Management employee to use to pay for employee selected I.R.S. qualified benefits as detailed in this Section. The amount of monthly benefit will be equal to combined cost of PERS Care family medical (minus statutory minimum contribution being made by City), enhanced family dental and enhanced family vision plans as of January 1, 2010 and on each January 1 reafter through calendar year 2015 (ending December 31, 2015). (Where more than one plan is offered in a particular category of coverage, enhanced designates plan with greatest premium.) Effective January 1, 2016, monthly benefit, including PERS Statutory minimum, will be $2, for purchase of eligible medical, dental and optical insurance benefits. If after selection of various I.R.S. qualified benefits as detailed in this section, an employee has benefit contribution left over, employee shall receive, in a taxable cash payment added to his or her bi-weekly payroll, that amount as determined by difference between employee s selected benefits and monthly benefit amount, subject to a maximum limit of $600. However, any employee who made elections prior to January 1, 2010 for 2010 plan year resulting in a taxable cash payment in excess of maximum limit of $600 may continue receipt of cash in excess of $600 until earlier of (1) end of 2010 plan year or (2) any change in, revocation of or making of a new election under this benefit. If an employee spends more than -14-

15 what is allocated by City in Flexible Benefits (Cafeteria) Plan monthly allotment, difference shall be deducted from that employee s pay on a bi monthly basis. Terms will be as specified in applicable plan document(s) and any conflict will be resolved in favor of plan document. The various I.R.S. qualified benefits offered by City are as follows: A. Medical Insurance The City shall provide a medical insurance program to Department Director, Assistant Department Director and Senior Management employees. The cost of coverage may vary, contingent upon number of dependents claimed. Eligible new hires are covered under program on first day of month following employee s hire date. In event a Department Director, Assistant Department Director and Senior Management employee is on leave without pay as a result of an illness or injury and has exhausted 50% of vacation leave and all sick leave credit and all City Manager granted leave per Section IV(l) of this Plan, City shall pay employee s applicable cafeteria plan contribution amount for one month for each full year of said employee s City service or major portion reof. The City shall pay applicable cafeteria plan contribution amount for Department Director, Assistant Department Director and Senior Management employees and dependents, if any, during continuous periods of an employee s unpaid absence if caused by an injury or job related illness while on duty. The payment shall be at rate of one month s applicable cafeteria plan contribution for each full year of said employee s City service or major portion reof. The City s present medical insurance plan is CaIPERS medical insurance plan. B. Dental Insurance The City shall provide a choice of one or more dental insurance plans to Department Director, Assistant Department Director and Senior Management employees. The cost of coverage may vary, contingent upon number of dependents and/or spouse or domestic partner enrolled and level of plan services. BO785O3O1\ v4.doc -15-

16 C. Optical Insurance The City shall provide one or more optical insurance plans to Department Director, Assistant Department Director and Senior Management employees. The cost of coverage may vary, contingent upon number of dependents and/or spouse or domestic partner enrolled. VII. OTHER BENEFITS As of January 1, 2010, provisions of this Section VII shall be applicable to Department Directors, Assistant Department Directors, and Senior Management Employees. A. Life Insurance Department Director, Assistant Department Director and Senior Management employees shall be entitled to a three hundred thousand dollar ($300,000) term life insurance policy under City s life insurance program. The premium for such policy shall be paid for by City under life insurance program of its choosing. Each such employee shall have option to purchase additional life insurance at City s unit cost, if available. B. Disability Insurance The City shall contract for a long-term disability insurance plan for Department Director, Assistant Department Director and Senior Management employees. Each Department Director, Assistant Department Director and Senior Management employee shall be required to participate in long-term disability insurance plan at his or her own expense. The disability plan will pay two thirds (66%) of employee s base pay, up to a maximum of $15,000 per month with a thirty (30) day disability wait period. C. Disability Leave - Extended Disability Base Pay and Benefits Continuance B \ v4.doc The City may provide to each Department Director, Assistant Department Director and Senior Management employee base pay and benefits (less legally required deductions) during a thirty day period after employee sustains an injury or illness causing long term disability, but before employee receives benefits from any long term disability insurance policy. The decision wher to provide base pay and benefits during this thirty day period shall be made by City Manager, at City Manager s sole discretion. To qualify for this base pay and benefits, employee must notify City Manager or City Manager s designee, in writing, immediately upon becoming aware that an injury or illness may result in a -16-

17 long term disability and employee must apply for disability insurance benefits as required by disability insurance plan referenced in paragraph B above. Additionally, upon request by City Manager or City Manager s designee, employee shall provide City with a written statement from a physician, satisfactory to City Manager or City Manager s designee, detailing employee s injury or illness and recommending disability leave. The City Manager or City Manager s designee may contact employee s physicians and medical treatment providers, as may be appropriate, to determine severity and scope of injury/illness and probable length of absence of employee. The employee must also make himself or herself available for examination by a City-appointed physician at City expense. No base pay or benefits shall be provided to employee pursuant to this Paragraph C except in accordance with procedures set forth in this Paragraph C. Nor shall any benefits be provided pursuant to this Paragraph C unless employee qualifies for benefits under long term disability insurance plan referenced in Paragraph B above. Nothing in this Paragraph C shall entitle employee to total compensation that exceeds base pay and benefits provided to employee in absence of a disability. Any disability indemnity received by employee from State of California intended to cover period for which employee has received base pay and benefits pursuant to this Paragraph C, shall be paid to City. D. Retirement Medical Benefit 1. For employees retiring (service retirement only) from City of Beverly Hills after July 1, 1981, with exception of those employees hired as a Department Director, Assistant Department Director and/or a Senior Management employee on or after December 2, 1997 and with exception of those employees who promote into Executive Employee group on or after December 2, 1997, City shall continue to pay difference between PERS statutory minimum and actual cost of medical insurance premiums up to two-party rate of PERS Care Plan under PERS. In event of death of a retired employee, City shall continue to pay difference between PERS statutory minimum and actual cost of medical insurance premiums up to one-party rate of PERS Care Plan under PERS for spouse or registered domestic partner. 2. For employees hired as a Department Director, Assistant Department Director and/or a Senior Management employee on or after December 2, 1997 or who promote into Executive Employee group on or after -17-

18 Amended and Executive Employee Restated Compensation Plan December medical 2, 1997, but on or before benefit shall be follows: insurance as December 31, 2009, retiree a) Employee must complete a minimum of 5 employment with City of Beverly Hills; and years of full time b) Receive a service retirement from City of Beverly Hills; and c) Remain continuously retired from City of Beverly Hills without to active with PERS. reinstatement For difference of medical PERS: under retirees i) A union spouse status meeting conditions, City shall pay PERS statutory minimum and actual up to two-party rate of PERS Care plan between insurance se includes any marriage, eligible for a partner. partner documents, such as domestic domestic coverage under spouse, husband, cost partnership or civil applicable plan wife or registered ii) An employee must elect City premium contributions statutory minimum for a surviving upon first being eligible for City s plan, at a of $10.00 per month while employed and paid by payroll deduction on a reduction in City s contribution toward statutory minimum. Typically, election will initial employment in Executive Employee Group or at of a marriage or domestic partnership. An who not timely elect and pay $10 monthly may not later elect surviving premium contributions. The not refundable, if an City without retiree medical divorced, a partnership or is orwise unable to of surviving premium contributions. based above date employee charge subsequent does employee leaves coverage, gets coverage under spouse employee payments are terminates service domestic take advantage above spouse spouse cost coverage occur at even spouse 3. With of City Manager, if an is hired a Department Director, Department Director or on or after 2, 1997 but 1, 2010, and previously retired from active from an by PERS; and is within first five of service a full-time with City of Beverly Hills; and entitled to and receiving retiree medical benefits from equal to paying at 25 of concurrence Management employee January agency served as was anor agency has Assistant December permanent employee -18- agency employee least as Senior before status years percent

19 premium for medical insurance for employee; and that employee retires or separates from city service for any reason involving incapacitation or an inability to perform duties of this employee s position (expressly excludes but is not limited to voluntary retirement prior to employee s fifth anniversary of employment with City of Beverly Hills and retirement in lieu of termination) n this employee shall be eligible for benefit outlined in Subsection 2, above. Specifically, City shall pay difference between minimum required under Government Code Section (b) or its successor and actual cost of medical insurance up to twoparty rate of PERS Care plan. 4. Employees Hired on or after January 1, 2010: As provided above in Section VI, effective January 1, 2010, City will contribute, based on a qualifying retirement, PERS statutory minimum on behalf of each participant in program who has retired from City service. In addition, for employees hired as a Department Director, Assistant Department Director and/or a Senior Management employee on or after January 1, 2010, in lieu of additional retiree medical insurance benefits, City shall, while employees are working for City, contribute $1, per month, or such amount as City Council may establish from time-to-time, into a tax deferred IRS allowed account on behalf of such employees. The assets in tax deferred account will be vested after one year of service. This plan will be portable at time employee separates from City service. Terms of plan will be determined by plan document adopted by City Council. Employees who promote into Executive Employee group on or after January 1, 2010, who were City employees as of December31, 2009, will receive retiree medical benefits (based on ir years of service with City) in accordance with benefits and plan under which y were covered immediately prior to promotion. An employee promoted to Fire Chief or Deputy Fire Chief from sworn fire group after December 29, 2012, who is a Member of Beverly Hills Firemen s Association Post-Retirement Medical Benefit Plan and Trust ( Association Plan ), as defined in Association Plan, on date of promotion and who would be eligible for post retirement benefits under Association Plan as a Participant, as defined in Association Plan, except for fact that employee will no longer be a Member solely as a result of promotion, will -19-

20 receive a substitute benefit consisting of same benefit under same terms as provided to or employees promoted to Executive Employee group between December 2, 1997 and December 31, 2009, as provided in Section VII, Paragraph D, Sub Paragraph 2, above. The benefit applicable to Fire Chief and Deputy Fire Chief under this paragraph is operative until December 31, 2033 and will sunset after that date, if not sooner modified or terminated. Employees hired before January 1, 2010 may choose an Alternative Retiree Medical Program instead of ir current retiree medical benefit plan. This choice will include a lump sum payment (value of payment to be determined by City Council following receipt and review of an actuarial study). If employee chooses Alternative Retiree Medical Program, employee will not be able to request reinstatement to former (pre-2010) benefit plan. Any additional terms involved in making choice will be determined by City Council. Terms of plan will be determined by plan document adopted by City Council. 5. The provisions of this Paragraph D shall not apply to those employees who have voluntarily elected to participate in City s Alternative Retirement Medical Plan ( ARMP ). Instead, retirement medical benefits will be governed by ARMP. E. Retirement Dental Benefit Upon retirement, Department Director, Assistant Department Director and Senior Management employees can continue in City s dental plans, at ir own expense to extent and subject to terms and conditions of n-applicable plan document. The City reserves right to modify or discontinue retiree dental based on availability, market conditions and or factors. F. Retirement Ojtical Benefit Upon retirement, Department Director, Assistant Department Director and Senior Management employees can continue in City s optical plan, at ir own expense to extent and subject to terms and conditions of n-applicable plan document. The City reserves right to modify or discontinue retiree optical based on availability, market conditions and or factors. -20-

21 G. Mileage Reimbursement Since Executive Employees are not provided auto allowances, executive employees will be allowed a mileage reimbursement benefit, as was effective October 1, This benefit is for city related travel in an employee s private vehicle at prevailing rate as set by Finance Department. Mileage reimbursement will begin after employee has traveled 25 miles or more in a single day. This 25 mile exemption rule will be waived for overnight training or conference travel. For example, if an employee drives 35 miles in a day on City business- that employee would be eligible for mileage reimbursement of 10 miles (35-25=10). If an employee travels to San Diego for a training session or conference and stays over night, and employee s total mileage is 250 miles, employee would get a mileage reimbursement of 250 miles. All executive employees must submit City approved forms for reimbursement. All reimbursements must be submitted no later than 3 months after final day of travel. The Director of Finance shall be responsible for administering and interpreting this benefit. VIII. SALARIES AND ANNUAL SALARY INCREASES The City s policy is to maintain a competitive pay structure that enables attraction and retention of highly experienced and effective Department Directors, Assistant Department Directors and Senior Managers. The salary schedule for classifications represented in this Compensation Plan consists of twenty salary ranges. Each range has a minimum and maximum salary with a twenty-five percent (25%) differential from minimum to maximum. The differential between each range is five percent (5%) applied to minimum salary. Individuals in classifications covered under this Compensation Plan will be compensated at a base rate of pay equal or above minimum of approved salary range. The Salary Schedule is identified in Appendix A. A. Salary Schedule Modifications The salary schedule may be modified upon approval of City Council. Considerations for salary schedule modification may include one or more of following: Increasing salary structure based on a cost of living adjustment using Consumer Price index data provided by Bureau of Labor Statistics. Data will be reviewed using a 12 month average; -21-

22 Increasing salary structure based on negotiated increases of City s bargaining units; Increasing or decreasing salary range differentials and/or differential between ranges. B. Placement of Classifications within Salary Structure Classifications are placed within salary structure as identified in Appendix A. Modifications to classification placement require City Manager recommendation and City Council approval. Modifications to placement of classifications within Salary Structure may be based on any one of following or a combination of following: o Difficulty in Recruitment of highly experienced individuals with qualifications exceeding minimum standards for classification; o Market data of comparable agencies. The City Manager shall determine procedures used to conduct a market survey. Market surveys are conducted to provide salary and total compensation data that will be evaluated against City of Beverly Hills salary and total compensation data which may support modifications to salary structure. C. Salary Placement for Individuals Upon Hire or Promotion Salary placement will be at least minimum established salary of classification. Placement above minimum may be made at discretion of City Manager. Placement above minimum or movement within salary range shall be considered when individual appointed or promoted: exceeds minimum qualification and/or experience of position; individual holds specialized certifications, licenses, skills, and/or abilities that would be beneficial to City; and/or any or job-related factor that City Manager deems relevant to position and to service of City. In no case may an individual be compensated at a base salary above approved maximum salary on salary schedule. -22-

23 D. Salary Adiustments to Individuals The City Manager may authorize a salary adjustment to any individual during ir service to City. This salary adjustment is authorized at sole discretion of City Manager and is effective at beginning of a pay period as identified by City Manager. Consideration for an annual salary adjustment is generally made in conjunction with an annual performance evaluation although City Manager may approve a salary adjustment at any time. For Assistant Directors and Senior Managers, Department Director may submit a recommendation to City Manager for consideration of authorization for a salary adjustment. The salary adjustment may not result in an individual exceeding maximum salary of established salary range for his/her classification. IX. PAY FOR PERFORMANCE PROGRAM Individuals covered under Compensation Plan are expected to strive to meet and exceed established goals and objectives set by City Council. For those individuals who exceed expectations set by City Council and/or City Manager, a Pay for Performance Program has been established. The rules, regulations and eligibility criteria related to Pay for Performance program may be furr detailed in an Administrative Regulation approved by City Manager. The Human Resources Department will assist City Manager in administration of this program. The City Manager is authorized to allot Pay for Performance amounts that total no more than five percent (5%) of combined annual base salary for all employees covered by this compensation plan as of June 30th of immediately preceding fiscal year. The Pay for Performance payment is separate from and addition to base salary. The Pay for Performance payment to an individual will be a lump sum amount determined by City Manager based on performance in prior twelve months and may only be considered as part of employees annual performance evaluation. Employees are eligible for a lump sum payment up to ten percent (10%) of ir base salary. Pay for performance awards are provided with first full pay period following receipt by Human Resources of employees performance evaluation and approval of City Manager. X. UNIFORM ALLOWANCES The Police Chief, Fire Chief, Assistant Chief of Police and Deputy Fire Chief shall receive $ annual uniform allowances. B \ v4.Uoc 23-

24 Xl. RETIREMENT A. For Classic Members as Defined by PERS and Public Employees Pension Reform Act of 2013 (PEPRA) The City s Retirement contract with PERS is at 2.5% at 55 rate for miscellaneous employees and 3% at 50 for local safety employees hired on or before June 30, 2012 (Police Chief, Fire Chief, and Deputy Fire Chief). The City amended its contract with PERS for local safety employees (Police Chief, Fire Chief, and Deputy Fire Chief) hired by City after June 30, 2012 to provide a 3% at 55 rate and to use three year average final compensation as set forth in Government Code Section Classic members will pay ir 8% (miscellaneous) or 9% (safety) member contributions effective on first day of first full pay period following February 1,2015. B. For New Members as Defined by PERS and PEPRA The retirement formula is miscellaneous reform plan of 62 and applicable safety reform plan with final compensation based on highest annual average compensation earnable over three consecutive years, as provided in retirement law. New Members are responsible for paying employee contribution of onehalf of total normal cost of plan, as defined by CaIPERS. This amount is determined and may be changed by CaIPERS from time-to-time. In addition, new members will pay an additional amount for ir retirement contribution as cost sharing in accordance with Government Code section That amount will be difference between half normal cost amount and eir 8% for miscellaneous members (so that ir total retirement contribution will be 8%) or 9% for safety members (so ir total retirement contribution will be 9%). This cost sharing will be effective on first day of first full pay period following February 1, C Survivor Benefit The City s contract with Public Employees Retirement System provides for Level 4 coverage under 1959 Survivor Benefit. D. The City s contract with Public Employees Retirement System provides for Pre-Retirement Optional Settlement 2W Death Benefit as set forth in -24-

25 Government Code Section E. All PERS benefits shall be provided in accord with requirements of Public Employees Retirement Law, commencing at Government Code 20000, and all applicable regulations and procedures of PERS, which shall prevail in event of conflict with provisions of this compensation plan. XII. SEPARATION FROM CITY SERVICE A. Sick Leave Pay-Off All accrued, unused sick leave earned and credited to each employee shall be basis for determining amount to be paid to each employee who qualifies to receive sick leave pay-off. Department Director, Assistant Department Director and Senior Management employees who have achieved seven (7) or more years of continuous service and are listed on City s active payroll on or after July 1, 1982, shall be eligible for sick leave pay-off upon termination of employ ment with City, in accordance with following. The rate of sick leave pay-off shall be calculated as follows: - For first 7 years - of service. 4% of accrued, unused sick leave per full year - For - Sick each year reafter - 6% of accrued, unused sick leave per full year of service to a maximum of 100%. leave pay-off shall be calculated at rate of base pay received by employee at time of termination. Each employee eligible to receive sick leave pay-off shall receive said pay-off at time of termination. B. Vacation and Administrative Leave Pay-Off An employee who terminates from City service shall receive an amount equal to accrued, unused vacation at time of termination. The rate of pay off shall be based on rate of base pay received by employee at time of termination. An employee does not have option of utilizing accrued, unused vacation in lieu of vacation pay-off at time of termination. An employee who terminates from City service shall receive an amount equal to accrued, unused Administrative Leave at time of termination. -25-

26 C. Notice of Termination/Severance If City determines to terminate an employee without cause (cause shall mean termination for conviction of a felony, or for malfeasance in office) after one full year of Executive Employee service, City shall provide a Department Director employee with four (4) to twelve (12) months prior notice of termination date; and shall provide an Assistant Department Director or a Senior Management employee with three (3) to eight (8) months prior notice of termination date. The amount of notice within applicable range shall be in City Manager s discretion. In lieu of providing required notice above, City Manager in his/her discretion may pay eligible employee severance (severance shall include salary and benefits) at rate of four (4) to twelve (12) months severance for a Department Director; and three (3) to eight (8) months severance for an Assistant Department Director or a Senior Management employee. The minimum amount of severance may be granted within City Manager s discretion. The City Manager may grant severance above minimum within specified range only with City Council concurrence. XIII. DEFERRED COMPENSATION A. City Contribution The City shall contribute at least $30.00 per month per Department Director, Assistant Department Director and Senior Management employee to City s deferred compensation program. B. Conversion of Sick Leave to Deferred Compensation Department Director, Assistant Department Director and Senior Management employees may convert accumulated sick leave to base pay. The extra pay may only be used to fund catch up contributions to deferred compensation. The following restrictions apply to this program. 1) The employee shall have a minimum of 7 years of service with City of Beverly Hills. 2) The individual s sick leave accrual cannot be reduced below 240 hours. 3) The conversion is limited to shorter of three consecutive years or time period allowed by IRS for catch-up provisions in 457, 401(k) and or plans as adopted by City and conversion can be used only for funding se deferred compensation catchups. -26-

27 4) A conversion of no more than amount which will bring annual deferral to maximum permitted by law is allowed. 5) The conversion will be at n existing sick leave payoff percentage. -27-

28 CITY OF BEVERLY HILLS EXECUTIVEISENIOR MANAGEMENT SALARY SCHEDULE Effective April 10, 2018 APPENDIXA SALARY MONTHLY SALARY TIER RANGE CLASSIFICATIONS Minimum Maximum 1 9,450 11, ,923 12,403 Assistant City Clerk 3 10,419 13, ,940 13,674 Budget&RevenueOfficer 5 11,487 14,358 City Architect Deputy Director of Public Works/Operational Support Deputy Director of Rent Stabilization Deputy Director of Transportation 6 12,061 15, ,664 15,830 Assistant Chief Information Officer Assistant Director of Community Development/Building Official Assistant Director of Community Development/City Planner Assistant Director of Human Resources Director of Emergency Management, Resilience & Recovery 8 13,297 16,621 Assistant Director of Finance 9 13,962 17,452 Assistant Director of Community Services Assistant Director of Public Works/Infrastructure & Field Assistant Director of Public Works/Parking & Facilities City Engineer Deputy City Manager 10 14,660 18, ,393 19,241 Chief Information Officer Director of Community Services Director of Human Resources 12 16,163 20,203 Director of Finance 13 16,971 21,214 Director of Community Developent Director of Public Works 14 17,819 22, ,710 23,388 Assistant Chief of Police Deputy Fire Chief 16 19,646 24, ,628 25,785 Assistant City Manager Chief of Police Fire Chief 18 21,660 27, ,743 28, ,880 29,850