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RESOLUTION NO. 8744-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ESTABLISHING A SALARY PLAN FOR CERTAIN POSITIONS IN CENTRAL MANAGEMENT CLASSIFICATIONS AND EXEMPTING CENTRAL MANAGEMENT CLASSIFICATIONS FROM MUNICIPAL CODE SECTION 2.44.390 AND OVERTIME AND RESCINDING RESOLUTION NOS. 8563-04, 8648-05 and 8703-06 WHEREAS, Chapter 2.44 of the Garden Grove Municipal Code, revised, Volume 1, provides that the City Council shall by resolution: (1) establish salary ranges and salary rates and the allocation of classes thereto; and (2) set forth the classification of full-time positions in the various City departments and offices; BE IT RESOLVED that the City Council does rescind Resolution Nos. 8563-04, 8648-05 and 8703-06; BE IT FURTHER RESOLVED that the City Council does establish the following: SECTION 1: CENTRAL MANAGEMENT PERSONNEL CLASSIFICATIONS For purposes of this Resolution, Central Management positions are identified as follows: Salary Range Personnel Classification Effective 10/21/06 Assistant City Manager 255 Community Development Director 245 Community Services Director 240 Economic Development Director 245 Employee Development Director 240 Finance Director 240 Fire Chief 250 Information Technology Director 240 Personnel Services Director 240 Police Chief 255 Public Works Director 245 SECTION 2: SALARY RANGE SCHEDULE FOR 2006-2007 Effective October 21, 2006, the salary range of each classification listed in this Resolution will be increased by three and one-half percent (3.5%). Salary Range Schedule - Effective October 21, 2006 - October 19, 2007 C236 9433 9905 10400 10920 11466 12039 12641 C237 9527 10003 10504 11029 11581 12159 12768 C238 9622 10104 10609 11140 11697 12281 12895

Page 2 Salary Range Schedule - Effective October 21, 2006 - October 19, 2007 C239 9719 10205 10715 11250 11813 12403 13024 C240 9816 10307 10822 11363 11931 12528 13155 C241 9914 10410 10931 11477 12051 12653 13286 C242 10014 10514 11039 11592 12172 12780 13419 C243 10113 10619 11150 11708 12293 12907 13553 C244 10214 10726 11262 11825 12416 13037 13689 C245 10317 10832 11375 11943 12540 13167 13826 C246 10420 10941 11487 12062 12665 13299 13963 C247 10524 11051 11602 12183 12793 13431 14103 C248 10629 11160 11719 12305 12920 13566 14245 C249 10736 11272 11836 12428 13049 13701 14387 C250 10843 11385 11954 12552 13180 13839 14530 C251 10951 11499 12074 12678 13311 13977 14676 C252 11061 11614 12194 12804 13445 14116 14822 C253 11172 11730 12317 12932 13579 14258 14971 C254 11284 11848 12440 13062 13715 14401 15120 C255 11396 11966 12564 13192 13852 14545 15271 C256 11510 12086 12690 13325 13991 14691 15425 C257 11625 12207 12817 13458 14131 14838 15579 C258 11742 12329 12945 13593 14272 14986 15735 C259 11859 12452 13075 13728 14414 15136 15892 C260 11978 12576 13206 13866 14559 15287 16051 SECTION 3: SALARY RANGE SCHEDULE 2007-2008 Effective October 20, 2007, the salary range of each classification listed in this Resolution will be increased by four percent (4%). Salary Range Schedule -- Effective October 20, 2007 - October 24, 2008 C236 9763 10252 10764 11302 11867 12460 13083 C237 9860 10353 10872 11415 11986 12585 13215 C238 9959 10458 10980 11530 12106 12711 13346 C239 10059 10562 11090 11644 12226 12837 13480 C240 10160 10668 11201 11761 12349 12966 13615 C241 10261 10774 11314 11879 12473 13096 13751 C242 10364 10882 11425 11998 12598 13227 13889 C243 10467 10991 11540 12118 12723 13359 14027

Page 3 Salary Range Schedule -- Effective October 20, 2007 - October 24, 2008 C244 10571 11101 11656 12239 12851 13493 14168 C245 10678 11211 11773 12361 12979 13628 14310 C246 10785 11324 11889 12484 13108 13764 14452 C247 10892 11438 12008 12609 13241 13901 14597 C248 11001 11551 12129 12736 13372 14041 14744 C249 11112 11667 12250 12863 13506 14181 14891 C250 11223 11783 12372 12991 13641 14323 15039 C251 11334 11901 12497 13122 13777 14466 15190 C252 11448 12020 12621 13252 13916 14610 15341 C253 11563 12141 12748 13385 14054 14757 15495 C254 11679 12263 12875 13519 14195 14905 15649 C255 11795 12385 13004 13654 14337 15054 15805 C256 11913 12509 13134 13791 14481 15205 15965 C257 12032 12634 13266 13929 14626 15357 16124 C258 12153 12761 13398 14069 14772 15511 16286 C259 12274 12888 13533 14208 14918 15666 16448 C260 12397 13016 13668 14351 15069 15822 16613 SECTION 4: SALARY RANGE SCHEDULE FOR 2008-2009 Effective October 25, 2008, the salary range for each classification listed in this Resolution will receive a cost of living adjustment (COLA) based on the Consumer Price Index (CPI), not to exceed four and one-half percent (4.5%). The CPI to be used is the All Urban Consumers for the Los Angeles-Riverside-Orange County, CA Area (not seasonally adjusted), for the twelve-month period as of August 2008. SECTION 5: BENEFITS Benefits and Leave Policies, as offered in the Middle Management group, will be offered to the classifications listed in this Resolution. Central Management employees are not eligible for any education incentive programs offered by the City, but are eligible to participate in the Tuition Reimbursement Program. Central Management employees who meet the same qualifications for the vacation buy-back provision shall have the option to use this benefit any time during the calendar year.

Page 4 Central Management employees are eligible for an executive medical (physical) examination on an annual basis, to be provided by the City if requested. Central Management employees also receive the executive long-term disability insurance benefit. SECTION 6: RETIREMENT a. Effective January 1, 1994, the employee shall begin to pay the Employee s Contribution to the Public Employees Retirement System (PERS). The City shall allow these contributions to be treated as pick-up in accordance with Section 414(h)2 of the Internal Revenue Service and applicable Government Code Sections. These pick-up contributions, to the extent permissible, shall be treated as deferred income to the employee for federal and state tax purposes. The employee shall indemnify and hold the City harmless from any and all claims, demands, suits, actions, liabilities, or judgments of any kind whatsoever arising out of or in connection with the actions to be taken and/or the pick-up contributions to be made pursuant hereto. Any future income tax obligations resulting from the pick-up contributions shall be the exclusive responsibility of the employee. In the event the Internal Revenue Service shall change its current position and determine that such contributions constitute salary, not deferred income, any resulting tax obligations shall be the exclusive responsibility of the employee and the City shall not be held responsible therefore. b. The City currently contracts with PERS for the following retirement formula for miscellaneous employees: 1) Section 21354.4 (2.5% at 55 Full formula for local miscellaneous members Active members only) 2) Section 20024.2 (Highest Year) 3) Section 20862.8 (Credit for Unused Sick Leave) 4) Employees pay the entire Employee Contribution. c. Miscellaneous employees pay a total of eight percent (8%) Employee Contribution for the 2.5% at 55 Full formula. d. The City currently contracts with PERS to provide the following benefit to the Public Safety retirement plan, for sworn Police and Fire management employees:

Page 5 1) Section 21362.2 (3% at 50 Full formula for local Public Safety members) 2) Section 20024.2 (Highest Year) 3) Section 20862.8 (Credit for Unused Sick Leave) 4) Sworn Public Safety Management employees pay the entire Employee Contribution. SECTION 7: ADDITIONAL ASSIGNMENT PAY The City Manager may authorize additional compensation of up to five percent (5%) over base pay to an employee who has assumed additional job duties due to a vacant position, long-term leave of absence, or a reorganization. The duration of this additional pay shall be at the sole determination of the City Manager. SECTION 8: POSITIONS EXEMPT FROM FLSA Employees in Central Management classifications are designated as exempt from the provisions of the Fair Labor Standards Act (FLSA). Those employees who have used all their accrued leave benefits and are absent for less than one (1) day, shall not have that time treated as an absence without pay. Employees in this category shall be subject to disciplinary actions involving unpaid time off in accordance with FLSA regulations. SECTION 9: ADMINISTRATIVE LEAVE The Central Management positions listed in this Resolution shall be exempt from all overtime provisions contained in the Municipal Code or in any Memorandum of Understanding. The provisions of Administrative Leave for Middle Management will also be offered to the classifications listed in this Resolution. SECTION 10: EXEMPT CENTRAL MANAGEMENT CLASSES All classes listed in this Central Management Salary Plan Resolution shall be designated as exempt and be considered to be exempt from the provisions of the Municipal Code Section 2.44.390. The appointment and removal of Department heads and the primary assistants in the City Manager s Office are governed by the Municipal Code Section 2.08.100.

Page 6 SECTION 11: CITY AUTOMOBILE USAGE Central Management employees may be assigned a City vehicle by the City Manager to conduct city business in accordance with the Administrative Regulations. The City Manager may, in lieu of assigning a City vehicle, provide the employee with an allowance equal to the City s budgeted equipment rental rate for a standard sedan. Those employees assigned a City-owned vehicle to conduct City business, may also use the vehicle for private purposes in accordance with the Administrative Regulations. SECTION 12: EFFECTIVE DATE The provisions of this Resolution shall be effective October 21, 2006 through June 30, 2009. Adopted this 24 th day of October 2006 ATTEST: /s/ KATHLEEN BAILOR DEPUTY CITY CLERK /s/ WILLIAM J. DALTON MAYOR STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF GARDEN GROVE ) I, KATHLEEN BAILOR, Deputy City Clerk of the City of Garden Grove, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Garden Grove, California, at a meeting held on the 24 th day of October 2006, by the following vote: AYES: COUNCIL MEMBERS: (5) KREBS, LEYES, NGUYEN, ROSEN, DALTON NOES: COUNCIL MEMBERS: (0) NONE ABSENT: COUNCIL MEMBERS: (0) NONE /s/ KATHLEEN BAILOR DEPUTY CITY CLERK