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CC Resolution No. 23-118 revising the Compensation Program and salary schedules for the Appointed and Unrepresented (Management and Confidential) Employees effective July 1, 2023RESOLUTION NO. 23-118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING THE REVISED APPOINTED AND UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAMS WHEREAS, the City Council desires to approve the revised Appointed and Unrepresented Employees’ Compensation Programs. NOW, THEREFORE, BE IT RESOLVED that the Appointed and Unrepresented Compensation Programs be revised which are incorporated in this resolution by this reference and attached as Exhibits A and B. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7th day of November 2023 by the following vote: Members of the City Council AYES: Wei, Mohan, Chao, Fruen, Moore NOES: None ABSENT: None ABSTAIN: None SIGNED: ________ Hung Wei, Mayor City of Cupertino ________________________ Date ATTEST: ________ Kirsten Squarcia, City Clerk ________________________ Date 11/14/23 11/14/23 1 Exhibit A City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 1 PROGRAM PURPOSE AND DEFINITIONS FOR ELIGIBILITY It is City of Cupertino policy that those certain persons holding positions hereinafter defined and designated as appointed management employees by the City Council in the City Manager's Office and the City Attorney’s Office shall be eligible for participation in the Appointed Employees' Compensation Program as hereby adopted by action of the City Council and as same may be amended or as otherwise modified from time to time. Eligibility for inclusion in this Compensation program is limited to persons appointed by the City Council and holding positions as management employees in the City Manager’s Office and the City Attorney’s Office, as defined under section 2.52.290 of the Cupertino Municipal Code. Eligible persons are designated by the Appointing Authority and may be modified as circumstances warrant. Although subject to change in accordance with the Personnel Code, the positions in the following classifications have been designated as appointed employees. MANAGEMENT CLASSIFICATIONS: Classification Title City Manager City Attorney In the event of any inconsistency between the Compensation Program and any Employment Contracts, the provisions of the Employment Contract and any amendments thereto control. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012; July 2019, August 18, 2020, June 15, 2021, November 16, 2021, July 19, 2022 2 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 2 SALARY SCHEDULE AND OTHER SALARY RATES It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated for services rendered to and on behalf of the City on the basis of equitable pay for duties and responsibilities assigned, meritorious service and comparability with similar work in other public and private employment in the same labor market; all of which is contingent upon the City's ability to pay consistent with its fiscal policies. The City Manager and City Attorney salaries will be set by contract. Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012 Revised December 18, 2012, October 2016, September 6, 2017, November 6, 2017, January 7, 2019, July 16, 2019, August 18, 2020, November 16, 2021, July 19, 2022 3 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 3 TRAINING AND CONFERENCES I. POLICY It is City of Cupertino policy that eligible persons under this Compensation Program shall be reimbursed or receive advances in accordance with the schedules, terms and conditions as set forth herein for attendance at conferences, meetings and training sessions as defined below for each. It is the intent of this policy to encourage the continuing education and awareness of said persons in the technical improvements and innovations in their fields of endeavor as they apply to the City or to implement a City approved strategy for attracting and retaining businesses in the City. One means of implementing this encouragement is through a formal reimbursement and advance schedule for authorized attendance at such conferences, meetings and training sessions. II DEFINITIONS A. Conferences A conference is an annual meeting of a work related organization the membership of which may be held in the name of the City or the individual. B. Local Area The local area is defined to be within Santa Clara and San Mateo Counties and within a 40-mile distance from Cupertino when traveling to Alameda County. C. Meetings A "meeting" shall mean a convention, conference, seminar, workshop, meal, or like assembly having to do with municipal government operations. An employee serving on a panel for interviews of job applicants shall not come under this definition. D. Training Session A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information of a work related nature to benefit the City's operations or to enhance the attendee's capabilities in the discharge of assigned duties and responsibilities. 4 III REIMBURSEMENT AND ADVANCE PAYMENT SCHEDULE A. Intent This schedule is written with the intent that the employee will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive that paying for a taxi or airport shuttle, then the employee should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out-of-town location, then a car should be rented; or air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. B. Registration Registration fees for authorized attendance at a meeting or training session will be paid by the City. C. Transportation The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee's home and airport, destination or airport parking charges, taxi and shuttle services at the out-of-town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available. Reimbursement or advances for use of a personal automobile on City business within a local area will not be made so as to supplement that already being paid to those persons receiving a monthly mileage allowance. D. Lodging Hotel or lodging expenses of the employee resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organized educational activity, City-paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non-conference lodging policy described in the next paragraph should be followed to find another comparable hotel. 5 Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or government rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement. E. Meals 1. With No Conference Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses for a given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for less than full travel days. If per diem is claimed, no receipts are necessary. Alternatively, the actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City personnel are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph. F. Other Expenses Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards. Other reasonable expenses related to business purposes shall be paid consistent with this policy. No payments shall be made unless, where available, receipts are kept and submitted for all expenses incurred. When receipts are not available, qualifying expenditures shall be reimbursed upon signing of an affidavit of expenditure. No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department. G. Non-Reimbursable Expenses The City will not reimburse or advance payment toward expenses including, but not limited to: 1. The personal portion of any trip; 6 2. Political or charitable contributions or events; 3. Family expenses, including those of a partner when accompanying the employee on City- related business, as well as child or pet-related expenses; 4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 5. Gifts of any kind for any purpose; 6. Service club meals; 7. Alcoholic beverages; 8. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 9. Personal losses incurred while on City business. IV ATTENDANCE A. Budgetary Limitations Reimbursement or advances for expenses relative to conferences, meeting or training sessions shall not exceed the budgetary limitations. V. FUNDING A. Appropriation Policy It shall be the policy of the City to appropriate funds subject to availability of resources. B. Training Sessions Payments toward or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process. VI. DIRECT CASH ADVANCE POLICY From time to time, it may be necessary for a City employee to request a direct cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to their supervisor no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the employee's return on the expense report described in Section VII. 7 VII. EXPENSE REPORT REQUIREMENTS All expense reimbursement requests or final accounting of advances received from the City Manager must be approved by the City Attorney , on forms determined by the Administrative Services Department, within 30 calendar days of an expense incurred, and accompanied by a business purpose for all expenditures and a receipt for each non- per diem item. All expense reimbursement requests or final accounting of advances received from the City Attorney must be approved by the City Manager, on forms determined by the Administrative Services Department, within 30 calendar days of an expense incurred, and accompanied by a business purpose for all expenditures and a receipt for each non- per diem item. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, August 18, 2020 , November 2023 8 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 4 AUTOMOBILE ALLOWANCES AND MILEAGE REIMBURSEMENTS It is City of Cupertino policy that under this Compensation Program the City Manager shall be compensated fairly for the use of personal automotive vehicles on City business. In many instances the use of personal vehicles is a condition of employment due to the absence of sufficient City owned vehicles for general transportation purposes. It is not intended, however, that such a condition of employment should work an undue hardship. For this reason, the following policies shall apply for mileage reimbursements. Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at an appropriate rate established by the City Council. Submission of reimbursement requests must be approved by the City Council. The City Manager shall be paid a monthly automobile allowance of $500. The City Attorney shall be paid a monthly automobile allowance of $350. Employees receiving automobile allowance shall be eligible for reimbursement for travel that exceeds two hundred miles round trip. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 Revised October 20, 2015 Revised November 6, 2017 Revised August, 18, 2020 Revised June 15, 2021, November 16, 2021 9 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 5 ASSOCIATION MEMBERSHIPS AND PROFESSIONAL PUBLICATIONS It is City of Cupertino policy under this Compensation Program that the City Manager and City Attorney shall be entitled to City sponsored association memberships as well as receiving subscriptions to professional and technical publications. Such sponsorship, however, shall be conditioned upon the several factors as set forth below. Each association for which membership is claimed must be directly related to the field of endeavor of the person to be benefited. Subscriptions to or purchase of professional and technical publications may be provided at City expense providing the subject matter and material generally contained therein are related to municipal governmental operations. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, June 15, 2021 10 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 6 OVERTIME WORKED Management employees are ineligible for overtime payments for time worked in excess of what otherwise would be considered as a normal work day or work week for other employees. However, no deduction from leave balances are made when such an employee is absent for less than a regular work day as long as the employee has his/her supervisor's approval. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, when forty hours have been worked in the same seven day work period. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 11 City of Cupertino APPOINTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 7 HEALTH BENEFITS PLAN - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide group hospital and medical insurance under which eligible persons under this Compensation Program and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees and their families through comprehensive health plans available only through employer sponsorship. Although the premium cost for the insurance provided remains the ultimate responsibility of the employee in these positions, the City shall contribute the amounts listed below towards the premium or pay the full cost of the premium if less than the stated amounts. If the premium amounts for any employee covered by this policy are less than the amounts listed below per month, the difference between the premium amount and the stated amounts will be included in the employee's gross pay. January 1, 2024 City Max Health Contribution City Max *Dental Contribution City Total Max Contribution Employee 1,021.41 126.78 1,148.19 Employee +1 2,042.82 126.78 2,169.60 Employee +2 2,655.67 126.78 2,782.45 • For any change in the monthly medical plan premium charged by CalPERS in the plan year 2025 compared to the plan year 2024, the City’s maximum contributions shall be capped at no more than 6% for Unrepresented and Appointed Employees. Any required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. Appointed employees in the City Manager and City Attorney positions will have immediate vesting of retiree medical benefits, subject to said employee retiring from City service and CalPERS. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, July 2013, October 2016, July 2019; December 2019, June 15, 2021, November 16, 2021 , November 7, 2023 12 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 8 FIXED HOLIDAYS It is the policy of the City of Cupertino to recognize days of historical and national significance as holidays of the City without loss of pay or benefits. Recognizing the desirable times throughout the year, it is the policy of the City of Cupertino to provide days off in lieu of holidays for management and confidential employees at such times as are convenient for each employee and supervisor, when such policy is compatible with the workload and schedule of the City. The City provides the following fixed paid holidays for eligible employees covered by this agreement: 1. New Year's Day 2. Martin Luther King Day 3. Presidents' Day 4. Lunar New Year 5. Cesar Chavez Day 6. Memorial Day 7. Juneteenth 8. Independence Day 9. Labor Day 10. Veteran's Day 11. Thanksgiving Day 12. Day Following Thanksgiving 13. Christmas Eve 14. Christmas Day 15. New Year's Eve When a holiday falls on a Sunday, the following Monday shall be observed as the non-work day. When a holiday falls on a Saturday, the previous Friday shall be observed as the non-work day. FLOATING HOLIDAY In addition to the paid holidays, employees occupying these positions shall be provided 20 floating hours per calendar year as non-work time with full pay and benefits. Employees may accumulate floating holiday hours up to two times their annual accrual. For Calendar Year 2023, Appointed employees will receive one (1) floating holiday in lieu of Lunar New Year holiday. Adopted by Action of the City Council July 1, 2010 13 Revised December 18, 2012, July 2013, November 2023 14 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 9 LIFE, LONG TERM DISABILITY INSURANCE, AND SHORT TERM DISABILITY INSURANCE It is the policy of the City of Cupertino to make available group insurance for eligible persons under this Compensation Program that will mitigate the personal and family financial hardships resulting from continuing disability that prevents an employee from performing gainfully in his or her occupation. It is further the policy of the City of Cupertino to provide life insurance benefits in an amount of two and one half times the employee's annual salary to a maximum of $250,000.00 The City Manager and City Attorney will participate in California State Disability Insurance (SDI). SDI weekly benefits are determined by the State of California and information is available on the State of California Employment Development Department website. Employee may use leave banks to supplement lost salary during the 7-day elimination period. City Manager and City Attorney shall pay the employee contribution rate of CA SDI, which will be deducted from their biweekly paychecks. The City shall provide Long Term Disability (LTD) insurance for employees. LTD income protection coverage shall be up to $7,000 of covered monthly salary. City Manager and City Attorney may use sick leave and/or vacation leave to supplement lost salary during the 90 day elimination period. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, October 2016, July 2019, August 18, 2020, June 15, 2021 15 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 10 DEFERRED COMPENSATION It is the policy of the City of Cupertino to provide equitable current compensation and reasonable retirement security for eligible persons under this Compensation Program for services performed for the City. The City participates in the California Public Employees' Retirement System (PERS) and deferred compensation plans have been established. Both the employee and employer may make contributions from current earnings to these plans. The purpose of this policy is to promote means by which compensation may be provided in such manner and form to best meet the requirements of the City and the needs of individual employees, thereby increasing the ability, to attract and retain competent employees. The City shall maintain and administer means by which employees in these positions may defer portions of their current earnings for future utilization. Usage of such plans shall be subject to such agreements, rules and procedures as are necessary to properly administer each plan. Employee contributions to such plans may be made in such amounts as felt proper and necessary to the employee. Employer contributions shall be as determined by the City Council. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012; July 2019 16 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 11 PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTION A. Employees hired on or before December 29, 2012 Only: For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 formula. Effective in the first full pay period in July 2017, each employee shall pay the full 8.0% of applicable salary of the employee’s contribution towards CalPERS. B. For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only: For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation. Effective October 1, 2016, the City shall not pay the employee’s contribution rate to the California Public Employees Retirement System (CalPERS) and each employee shall pay the full 7% of applicable salary of the employee’s contribution towards CalPERS. C. For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as Classic members Only: For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as classic members as defined by CalPERS, CalPERS has by statute implemented a 2% @ 62 formula, three year average and employees in this category shall pay 50% of the normal cost rate as determined by CalPERS. Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012; December 18, 2012, July 2013, October 2016, July 2019 17 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 12 DENTAL INSURANCE - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide dental insurance under which eligible persons under this Compensation Program and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City shall not exceed $114.30* per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with Personnel Rules of the City and the provisions of the contract for such insurance between the City and carrier or carriers.*Dental Coverage: Effective the first month after Council adoption of agreement, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract. Adopted by Action of City Council July 1, 2010 Revised October 2, 2012; December 18, 2012, October 2016, July 2019, July 19, 2022 18 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 13 ADMINISTRATIVE LEAVE Eligible persons under this Compensation Program shall accrue eighty (80) hours of administrative leave with pay per year. Employees may accumulate administrative leave hours up to two times their annual accrual. Employees shall be eligible to convert administrative leave hours to pay one time each calendar year. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, October 2016; July 2019, November 16, 2021 19 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 14 EMPLOYEE ASSISTANCE PROGRAM It is the policy of the City of Cupertino to provide an Employee Assistance Program for the benefit of eligible persons under this Compensation Program and their eligible dependents. The purpose of this program is to provide professional assistance and counseling concerning financial, legal, pre-retirement, and other matters of a personal nature. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012; July 2019 20 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 15 HOUSING ASSISTANCE PROGRAM Housing assistance may be offered to eligible persons under this Compensation Program pursuant to Resolution No. 15-092 as amended. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 Revised October 20, 2015; July 2019 21 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 16 VISION INSURANCE — EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City shall not exceed $14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage, Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012; December 18, 2012 22 City of Cupertino APPOINTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 17 EDUCATION REIMBURSEMENT PROGRAM It is the intent of the City to recognize the value of continuing education and professional development of its employees; and to adopt an Education Reimbursement Program which will encourage employees to avail themselves of City job related educational opportunities that will advance their knowledge and interests in the direction of their career path. Courses should either: a) maintain or improve job skills in the employee’s current position; b) be expressly required by the City or by law; or c) prepare the employee to become a competitive applicant for a different position with the City. The Education Reimbursement Program is a benefit to all eligible, full time benefited employees and provides education reimbursement of up to two thousand dollars ($2,000) per calendar year for the cost of registration, required textbooks and/or materials and parking. Employees who wish to seek reimbursement from the City for educational program costs shall provide a written request for reimbursement in advance of enrollment to the Human Resources Division. The form provided shall include the type of training, sponsoring organization or institution, meeting times and costs. Human Resources and the employee’s department head will make the determination if the chosen education program is eligible for reimbursement. No employee shall receive any reimbursement until they have provided satisfactory proof of successful completion of the coursework with a grade of “C” or above, or “Pass” in the case of a Pass/Fail course. Such proof of completion shall be provided within 30 days of the conclusion of the course. Education reimbursement is a taxable benefit under IRS Code. Education reimbursement will be applied to the calendar year in which the course is passed and satisfactory proof of completion is submitted. Mandatory or annual coursework, attendance at conferences and training required to maintain job specific certifications or proficiencies are not included in the Education Reimbursement Program. Adopted by Action of the City Council July 16, 2019 23 City of Cupertino APPOINTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 18 CITY SPONSORED RECREATION AND WELLNESS PROGRAMS Eligible appointed employees shall have the privilege of enrollment in City sponsored recreation programs at the City residents’ fee structure and in preference to non-residents wishing to enroll. Each calendar year, employees and family members on the employee’s dental plan are eligible to be reimbursed up to $500 per employee in Rec Bucks. Employees shall be reimbursed for approved recreation services in accordance with the City’s Recreation Buck Policies. Programs allowing for preregistration will be reimbursed after completion of the program, including those allowing for or requiring preregistration in the calendar year prior to reimbursement. Reimbursements shall be applied to the year in which they are received. Benefited employees will also receive a free employee-only annual Cupertino Sports Center membership. Part-time benefited employees will have the annual amount of Recreation Bucks prorated based on number of hours worked. Recreation Bucks are a taxable benefit under IRS Code, and must be used by the employee within the calendar year and are non-transferrable. City employees are eligible to participate in the City’s wellness program as provided for in the City’s Administrative Rules and Regulations. Adopted by Action of the City Council July 16, 2019 24 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM EXEMPT POSITIONS The salaries, wages, or rates of pay for City Attorney and City Manager employees whose positions are exempt under the provisions of the Cupertino Municipal Code, are set forth below. Only the City Council can modify these rates. Monthly Salary Effective June 3, 2019 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $19,916.67 Monthly Salary Effective June 3, 2020 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $22,916.66 Monthly Salary Effective June 15, 2021 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $22,916.66 City Attorney $0 $0 $0 $0 $21,250.00 Monthly Salary Effective January 3, 2022 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $24,000.00 City Attorney $0 $0 $0 $0 $21,250.00 Monthly Salary Effective July 20, 2022 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $24,833.33 City Attorney $0 $0 $0 $0 $23,333.33 25 Monthly Salary Effective August 29, 2022 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $26,075.00 City Attorney $0 $0 $0 $0 $23,333.33 Monthly Salary Effective the First Full Pay Period of July, 2023 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $26,987.63 City Attorney $0 $0 $0 $0 $23,333.33 1 Exhibit B City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 1 PROGRAM PURPOSE AND DEFINITIONS FOR ELIGIBILITY It is City of Cupertino policy that those certain persons holding positions hereinafter defined and designated either as management or confidential positions shall be eligible for participation under the Unrepresented Employees Compensation Program as hereby adopted by action of the City Council and as same may be amended or as otherwise modified from time to time. It is the stated purpose of this Compensation Program to give recognition to and to differentiate those eligible employees from represented employees who achieve economic gain and other conditions of employment through negotiation. It is the intent that through this policy and those which are adopted or as may be modified or rescinded from time to time such recognition may be given. Eligibility for inclusion with this Compensation program is limited to persons holding positions as management or confidential employees as defined under section 2.52.290 of the Cupertino Municipal Code. These are as designated by the Appointing Authority and may be modified as circumstances warrant. Although subject to change in accordance with provision of the Personnel Code, the positions in the following classifications have been designated as unrepresented. MANAGEMENT AND CONFIDENTIAL CLASSIFICATIONS: Classification Title Accountant I Accountant II Accounting Technician Administrative Assistant Assistant City Attorney Assistant City Manager Assistant Director of Community Development Assistant Director of Public Works Assistant Director of Parks and Recreation Assistant to the City Manager Budget Manager Building Official Business Systems Analyst/Program Manager Capital Improvement Program Manager Chief Technology Officer/Director of Information Services (Department Head) City Clerk 2 City Engineer Community Relations Coordinator Deputy Building Official Deputy City Attorney Deputy City Clerk Deputy City Manager Director of Administrative Services (Department Head) Director of Community Development (Department Head) Director of Parks and Recreation (Department Head) Director of Public Works Economic Development Manager Emergency Services Coordinator Environmental Programs Manager Executive Assistant to the City Attorney Executive Assistant to the City Manager Finance Manager GIS Coordinator GIS Program Manager Human Resources Analyst I Human Resources Analyst II Human Resources Assistant Human Resources Manager Human Resources Technician Information Technology Assistant Innovation and Technology Manager – Applications Innovation and Technology Manager - Infrastructure Legal Services Manager Management Analyst Network Specialist Park Restoration and Improvement Manager Permit Center Manager Planning Manager Public Information Officer Public Affairs Manager Public Works Projects Manager Public Works Supervisor Purchasing Manager Recreation Manager Recreation Supervisor Senior Accountant Senior Assistant City Attorney Senior Civil Engineer Senior Management Analyst Senior Public Works Project Manager Service Center Superintendent 3 Special Project Executive Transportation Manager Web Specialist In the event of any inconsistency between the Compensation Program and any Employment Contracts, the provisions of the Employment Contract and any amendments thereto control. Adopted by Action of the City Council, April 1, 1974 Revised 10/74, 3/78, 6/81, 6/82, 7/85, 7/87, 1/89, 7/90, 4/91, 5/91, 7/92, 6/95, 6/96, 7/99, 6/02, 7/04, 6/05, 04/07, 7/10, 10/12, 12/12, 7/13,11/13,12/13,3/14, 7/14, 11/15, 6/16, 10/16, 11/16, 6/17, 10/17, 7/19, 6/22, 8/22, 3/23, 11/23 4 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 2 SALARY SCHEDULE AND OTHER SALARY RATES It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated for services rendered to and on behalf of the City on the basis of equity of pay for duties and responsibilities assigned, meritorious service and comparability with similar work in other public and private employment in the same labor market; all of which is contingent upon the City’s ability to pay consistent with its fiscal policies. Retroactive to the first full pay period after July 1, 2023, a 3.5% salary increase will be added to the salary range of each classification in this unit. There shall be no further salary increase for FY24/25. See Attachment A for a list of paygrades. Adopted by Action of the City Council April 1, 1974 Revised 8/78, 7/79, 6/80, 7/92, 6/95, 10/12, 7/13, 10/16, 7/19, 8/22, 11/23 5 City of Cupertino UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM Policy No. 3 TRAINING AND CONFERENCES I. POLICY A. Management Personnel It is City of Cupertino policy that eligible persons under this Compensation Program shall be reimbursed or receive advances in accordance with the schedules, terms and conditions as set forth herein for attendance at conferences, meetings and training sessions as defined below for each. It is the intent of this policy to encourage the continuing education and awareness of said persons in the technical improvements and innovations in their fields of endeavor as they apply to the City or to implement a City approved strategy for attracting and retaining businesses in the City. One means of implementing this encouragement is through a formal reimbursement and advance schedule for authorized attendance at such conferences, meetings and training sessions. B. Non-Management Personnel When authorized by their supervisor, a non-management person may attend a conference, meeting or training session subject to the stated terms and conditions included herein for each with payment toward or reimbursement of certain expenses incurred as defined below for each. II DEFINITIONS A. Conferences A conference is an annual meeting of a work related organization the membership of which may be held in the name of the City or the individual. B. Local Area The local area is defined to be within Santa Clara and San Mateo Counties and within a 40- mile distance from Cupertino when traveling to Alameda County. C. Meetings A “meeting” shall mean a convention, conference, seminar, workshop, meal, or like assembly having to do with municipal government operations. An employee serving on a panel for interviews of job applicants shall not come under this definition. 6 D. Training Session A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information of a work related nature to benefit the City’s operations or to enhance the attendee’s capabilities in the discharge of assigned duties and responsibilities. III REIMBURSEMENT AND ADVANCE PAYMENT SCHEDULE A. Intent This schedule is written with the intent that the employee will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive that paying for a taxi or airport shuttle, then the employee should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out-of-town location, then a car should be rented; or air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. B. Registration Registration fees for authorized attendance at a meeting or training session will be paid by the City. C. Transportation The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee’s home and airport, destination or airport parking charges, taxi and shuttle services at the out-of-town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available. Reimbursement or advances for use of a personal automobile on City business within a local area will not be made so as to supplement that already being paid to those persons receiving a monthly mileage allowance. D. Lodging Hotel or lodging expenses of the employee resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this 7 instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organized educational activity, City-paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non-conference lodging policy described in the next paragraph should be followed to find another comparable hotel. Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or government rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement. E. Meals 1. With No Conference Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses for a given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for less than full travel days. If per diem is claimed, no receipts are necessary. Alternatively, the actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City personnel are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph. F. Other Expenses Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards. Other reasonable expenses related to business purposes shall be paid consistent with this policy. No payments shall be made unless, where available, receipts are kept and submitted for all expenses incurred. When receipts are not available, qualifying expenditures shall be reimbursed upon signing of an affidavit of expenditure. 8 No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department. G. Non-Reimbursable Expenses The City will not reimburse or advance payment toward expenses including, but not limited to: 1. The personal portion of any trip; 2. Political or charitable contributions or events; 3. Family expenses, including those of a partner when accompanying the employee on City- related business, as well as child or pet-related expenses; 4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 5. Gifts of any kind for any purpose; 6. Service club meals; of those besides economic development staff; 7. Alcoholic beverages; 8. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 9. Personal losses incurred while on City business. IV ATTENDANCE AUTHORIZATION A. Budgetary Limitations Notwithstanding any attendance authorization contained herein, reimbursement or advances for expenses relative to conferences, meeting or training sessions shall not exceed the budgetary limitations. B. Conference Attendance Attendance at conferences or seminars by employees must be approved by their supervisor. C. Meetings Any employee, management or non-management, may attend a meeting when authorized by their supervisor. D. Training Sessions 9 Any employee, management or non-management, may attend a training session when authorized by their supervisor. V. FUNDING A. Appropriation Policy It shall be the policy of the City to appropriate funds subject to availability of resources. B. Training Sessions Payments toward or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process. VI. DIRECT CASH ADVANCE POLICY From time to time, it may be necessary for a City employee to request a direct cash advance to cover anticipated expenses while traveling or doing business on the City’s behalf. Such request for an advance should be submitted to their supervisor no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the employee’s return on the expense report described in Section VII. VII. EXPENSE REPORT REQUIREMENTS All expense reimbursement requests or final accounting of advances received must be approved by their supervisor, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, and accompanied by a business purpose for all expenditures and a receipt for each non- per diem item. Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07,7/10 10 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 4 AUTOMOBILE ALLOWANCES AND MILEAGE REIMBURSEMENTS It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated fairly for the use of personal automotive vehicles on City business. In many instances the use of personal vehicles is a condition of employment due to the absence of sufficient City owned vehicles for general transportation purposes. It is not intended, however, that such a condition of employment should work an undue hardship. For this reason, the following policies shall apply for mileage reimbursements. Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at an appropriate rate established by the City Council. Submission of reimbursement requests must be approved by the Department Head. Employees in the following classifications shall be paid on a monthly basis the following automobile allowance: Classification Allowance Director of Administrative Services 300.00 Director of Community Development 300.00 Assistant City Manager 300.00 Director of Parks and Recreation 300.00 Director of Public Works 300.00 Chief Technology Officer/ 300.00 Director of Information Services Special Project Executive 300.00 City Clerk 250.00 Senior Civil Engineer 250.00 Assistant Director of Public Works 250.00 City Engineer 250.00 Transportation Manager 250.00 Assistant Director of Parks and Recreation 200.00 Public Affairs Manager 200.00 Deputy City Manager 200.00 Recreation Supervisor 200.00 Recreation Manager 200.00 Employees receiving automobile allowance shall be eligible for reimbursement for travel that exceeds two hundred miles round trip. 11 Adopted by Action of the City Council April 1, 1974 Revised 7/74, 5/79, 6/80, 7/81, 8/84, 7/87, 1/89, 7/90,7/92, 6/96, 8/99, 6/00, 9/01, 1/02, 6/02, 10/07, 7/10, 7/11, 10/12, 12/12, 7/13, 11/15, 10/16, 11/16, 6/17, 7/19, 8/22, 3/23 12 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 5 ASSOCIATION MEMBERSHIPS AND PROFESSIONAL PUBLICATIONS It is City of Cupertino policy that eligible persons under this Compensation Program shall be entitled to City sponsored association memberships as well as receiving subscriptions to professional and technical publications. Such sponsorship, however, shall be conditioned upon the several factors as set forth below. Each association for which membership is claimed must be directly related to the field of endeavor of the person to be benefited. Each claim for City sponsored membership shall be submitted by or through the Department Head with their concurrence to the City Manager for approval. Subscriptions to or purchase of professional and technical publications may be provided at City expense when such have been authorized by the Department Head providing the subject matter and material generally contained therein are related to municipal governmental operations. Adopted by Action of the City Council April 1, 1974 Revised 7/92 13 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 6 OVERTIME WORKED EXEMPT POSITIONS: Management and non-represented professional employees are ineligible for overtime payments for time worked in excess of what otherwise would be considered as a normal work day or work week for other employees. However, no deduction from leave balances are made when such an employee is absent for less than a regular work day as long as the employee has his/her supervisor’s approval. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, when forty hours have been worked in the same seven day work period. NON-EXEMPT POSITIONS: Confidential employees are eligible for overtime or compensation time, at their discretion, for the time worked in excess of 40 hours per week. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, where forty hours have been worked in the same seven day period. COMPENSATORY TIME OFF At the employee’s discretion, compensatory time (CTO) may be granted for overtime worked at the rate of time and one-half for each hour worked in lieu of compensation in cash. Employees, who have previously earned CTO, shall be allowed to schedule CTO at the employee’s discretion provided (1) that prior supervisory approval has been obtained and (2) the request is made in writing. CTO may be accrued for up to 80 hours per calendar year. Any CTO earned exceeding 80 hours will be paid at the rate of time and one-half. An employee may carry over the unused balance into the next calendar year. Any unused carryover balance will be automatically paid out at the end of the calendar year. An employee may exercise his/her option twice each calendar year to convert any/or all accumulated compensatory time to cash. 14 STANDBY COMPENSATION Employees in the classification of Information and Technology Assistant who are required to be available during their off-shift hours for possible recall for emergency service shall be compensated $300.00 per 128 hours. Minimum staffing and skill qualifications for standby assignment shall be determined by the City. Adopted by Action of the City Council April 1, 1974 Revised 6/80, 7/91, 7/92, 6/96, 7/97, 4/07, 7/13, 10/16, 8/22 15 City of Cupertino UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM Policy No. 7 HEALTH BENEFITS PLAN - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide group hospital and medical insurance under which employees in Management and Confidential positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees and their families through comprehensive health plans available only through employer sponsorship. Although the premium cost for the insurance provided remains the ultimate responsibility of the employee in these positions, the City shall contribute the amounts listed below towards the premium or pay the full cost of the premium if less than the stated amounts. If the premium amounts for any employee covered by this policy are less than the amounts listed below per month, the difference between the premium amount and the stated amounts will be included in the employee’s gross pay. Effective January 1, 2024, for each participating employee, the City shall contribute the maximum toward premium cost per month for health and dental during the term of this agreement as follows: January 1, 2024 City Max Health Contribution City Max Dental Contribution City Total Max Contribution Employee $1,021.41 $126.78 $1,148.19 Employee + 1 $2,042.82 $126.78 $2,169.6 Employee + 2 $2,655.67 $126.78 $2,782.45 Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. With regards to any change in the monthly medical plan premium charged by CalPERS in the plan year 2025 compared to the plan year 2024, the City’s maximum contributions shall be capped at no more than 6%. Any required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. Health In-Lieu Payments City agrees to pay a monthly amount of three hundred seventy-five ($375.00) per month to the employee who can demonstrate that they have equivalent health coverage through their 16 spouse, parent, or other group coverage and who request this cash payment in lieu of health insurance coverage. *Dental Coverage: Effective the first month after Council adoption of MOU, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract. Adopted by Action of the City Council September 16, 1974 Revised 7/75, 7/76, 7/77, 8/78, 7/79, 6/80, 6/81, 7/81, 6/82, 7/83, 7/84, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/97, 7/99, 6/00, 6/02, 7/04, 6/05, 4/07,12/12, 7/13, 10/16, 7/19, 12/19, 8/22 17 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 8 FIXED HOLIDAYS It is the policy of the City of Cupertino to recognize days of historical and national significance as holidays of the City without loss of pay or benefits. Recognizing the desirable times throughout the year, it is the policy of the City of Cupertino to provide days off in lieu of holidays for management and confidential employees at such times as are convenient for each employee and supervisor, when such policy is compatible with the workload and schedule of the City. The City provides the following fixed paid holidays for eligible employees covered by this agreement: 1. New Year’s Day 2. Martin Luther King Day 3. Lunar New Year 4. Presidents’ Day 5. Cesar Chavez Day 6. Memorial Day 7. Juneteenth 8. Independence Day 9. Labor Day 10. Veteran’s Day 11. Thanksgiving Day 12. Day Following Thanksgiving 13. Christmas Eve 14. Christmas Day 15. New Year’s Eve For Calendar Year 2023, Unrepresented and Appointed employees will receive one (1) floating holiday in lieu of Lunar New Year holiday. Said floating holiday is “use it or lose it” and must be used by December 31, 2023. If said floating holiday is not used by the last full pay period in December 2023, it shall be automatically cashed out in the first full pay period in January 2024. When a holiday falls on a Sunday, the following Monday shall be observed as the non-work day. When a holiday falls on a Saturday, the previous Friday shall be observed as the non-work day. FLOATING HOLIDAY In addition to the paid holidays, employees occupying these positions shall be provided 20 floating hours per calendar year as non-work time with full pay and benefits. Employees may accumulate floating holiday hours up to two times their annual accrual. 18 Adopted by Action of the City Council July 7, 1975 Revised 6/80, 6/89, 7/92, 7/99, 7/13, 8/22, 11/23 19 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 9 LIFE, LONG TERM DISABILITY INSURANCE, AND SHORT TERM DISABILITY INSURANCE It is the policy of the City of Cupertino to make available group insurance for Management and Confidential employees that will mitigate the personal and family financial hardships resulting from continuing disability that prevents an employee from performing gainfully in his or her occupation. It is further the policy of the City of Cupertino to provide life insurance benefits in an amount of two and one half times the employee’s annual salary to a maximum of $250,000.00. Employees occupying unrepresented positions may enroll in the disability income program and the life insurance program offered if eligible under the contract provisions of the policy and the personnel rules of the City. The full cost of premiums for these programs shall be paid by the City for such employees. Adopted by Action of the City Council September 16, 1976 Revised 7/76, 6/80, 6/81, 6/82, 6/92, 10/16 20 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 10 DEFERRED COMPENSATION It is the policy of the City of Cupertino to provide equitable current compensation and reasonable retirement security for management and confidential employees for services performed for the City. The City participates in the California Public Employees’ Retirement System (PERS) and deferred compensation plans have been established. Both the employee and employer may make contributions from current earnings to these plans. The purpose of this policy is to promote means by which compensation may be provided in such manner and form to best meet the requirements of the City and the needs of individual employees, thereby increasing the ability, to attract and retain competent management and confidential employees. The City shall maintain and administer means by which employees in these positions may defer portions of their current earnings for future utilization. Usage of such plans shall be subject to such agreements, rules and procedures as are necessary to properly administer each plan. Employee contributions to such plans may be made in such amounts as felt proper and necessary to the employee. Employer contributions shall be as determined by the City Council. Adopted by Action of the City Council July 7, 1975 Revised 6/80, 7/87, 7/92, 7/99 21 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 11 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTION A. Employees hired on or before December 29, 2012 Only: For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 formula. Effective in the first full pay period in July 2017, each employee shall pay the full 8.0% of applicable salary of the employee’s contribution towards CalPERS. B. For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only: For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation. Effective October 1, 2016, the City shall not pay the employee’s contribution rate to the California Public Employees Retirement System (CalPERS) and each employee shall pay the full 7% of applicable salary of the employee’s contribution towards CalPERS. C. For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as Classic members Only: For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as classic members as defined by CalPERS, CalPERS has by statute implemented a 2% @ 62 formula, three year average and employees in this category shall pay 50% of the normal cost rate as determined by CalPERS. Adopted by Action of the City Council June, 1981 Revised 6/87, 6/89, 7/90, 7/91, 7/92, 6/03, 7/04, 4/07, 7/10, 10/12, 12/12, 7/13, 10/16, 7/19 22 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 12 DENTAL INSURANCE - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide dental insurance under which employees in Management and Confidential positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City shall not exceed $126.78* per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with Personnel Rules of the City and the provisions of the contract for such insurance between the City and carrier or carriers. *Dental Coverage: Effective the first month after Council adoption of agreement, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract. Adopted by Action of City Council July 1, 1983 Revised 7/87, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/99, 4/07, 10/12, 10/16, 7/19 23 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 13 ADMINISTRATIVE LEAVE The department heads and executive level staff shall receive eighty (80) hours of administrative leave with pay per year. Unrepresented employees exempt from the provisions of the Fair Labor Standards Act shall receive forty (40) hours of administrative leave with pay per year. Employees may accumulate administrative leave hours up to two times their annual accrual. Employees shall be eligible to convert up to 80 hours of administrative leave to pay one time each calendar year. Adopted by Action of the City Council July, 1988 Revised 7/92, 7/97, 7/99, 7/10, 12/12, 10/16, 8/22, 3/23 24 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 14 EMPLOYEE ASSISTANCE PROGRAM It is the policy of the City of Cupertino to provide an Employee Assistance Program for the benefit of Management and Confidential employees and their eligible dependents. The purpose of this program is to provide professional assistance and counseling concerning financial, legal, pre-retirement, and other matters of a personal nature. Adopted by Action of the City Council June 17, 1996 25 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 15 VACATION ACCUMULATION The department heads and executive level staff shall earn vacation hours under the same vacation accumulation schedule as all other employees. Credit shall be provided for previous public sector service time on a year-for-year basis as to annual vacation accumulation. Credit shall only be given for completed years of service. Public service credit shall not apply to any other supplemental benefit. Employee(s) affected by this policy will have the responsibility of providing certification as to previous public sector service. Benefited full-time employees accrue vacation in accordance with the following schedule. Benefited employees who work less than a full-time work schedule accrue vacation in accordance with the following schedule on a pro-rated basis. Service Time Annual Accruals Maximum Accrual 0 - 3 Years 80 Hours 160 Hours 4 - 9 Years 120 Hours 240 Hours 10 – 14 Years 160 Hours 272 Hours 15 – 19 Years 176 Hours 320 Hours 20 + Years 192 Hours 352 Hours An employee may accrue no more vacation credit than what is listed above. VACATION CREDITS The hiring manager, with the approval of the department head and the City Manager, may offer a vacation bank of up to 120 hours of vacation to a prospective candidate in the Unrepresented group. These hours do not vest for payoff purposes if the employee leaves service. Adopted by Action of the City Council July 7, 1997 Revised 6/99, 7/10, 12/12, 7/13, 10/16, 3/23 26 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 16 HOUSING ASSISTANCE PROGRAM Housing assistance may be offered to the department heads pursuant to Resolution No. 15-092. Adopted by Action of the City Council July 7, 1997 Revised 7/99, 7/10, 8/12, 10/15 27 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 17 VISION INSURANCE – EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City shall not exceed $14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage, Adopted by Action of the City Council July 1997 Revised 7/99, 6/02, 6/03, 7/10, 10/12 28 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 18 WORK OUT OF CLASSIFICATION/WORK IN DUAL CLASSIFICATION Work Out of Classification – Temporary assignment, approved in advance by the department head, to a classification in a higher pay grade shall be compensated at the Step 1 rate of the higher classification or at a rate five (5) percent greater than that of the regular position, whichever is greater, for the number of hours assigned. In order to qualify for out-of-classification pay, an employee shall work a minimum of four (4) hours per day in the temporary assignment. An employee may be assigned to work out of class in a higher classification when there is a vacant position for which a recruitment is being, or will be, conducted. Out of class assignments may not exceed 960 hours in a fiscal year. Compensation for work performed in an out-of-class capacity is included for purposes of calculating CalPERS compensation, however, this is at the discretion of CalPERS and future changes to CalPERS regulations would supersede the language of this section. An employee may receive acting pay for working in a higher classification where a vacancy does not exist, in the case of an incumbent being on vacation or leave of absence, or due to the employee being asked to perform higher level work on any other temporary basis. Acting pay is not included for purposes of calculating CalPERS compensation. The higher rate of pay shall be used in computing overtime when authorized overtime is worked in a non-exempt, out of class or acting work assignment. When a non-exempt employee is working out of class or acting in an exempt position for 20 hours or more in a work week, the employee will be ineligible to receive overtime pay for any and all hours worked in the exempt classification during that work week. All requests for out of class pay or acting pay must be approved by the Director of Administrative Services or his/her designee. Adopted by Action of the City Council October 2016 Revised 7/19 29 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 19 EDUCATION REIMBURSEMENT PROGRAM It is the intent of the City to recognize the value of continuing education and professional development of its employees; and to adopt an Education Reimbursement Program which will encourage employees to avail themselves of City job related educational opportunities that will advance their knowledge and interests in the direction of their career path. Courses should either: a) maintain or improve job skills in the employee’s current position; b) be expressly required by the City or by law; or c) prepare the employee to become a competitive applicant for a different position with the City. The Education Reimbursement Program is a benefit to all full time benefited employees who have completed the required probationary period and provides education reimbursement of up to two thousand dollars($2,000) per calendar year for the cost of registration, required textbooks and/or materials and parking. Employees who wish to seek reimbursement from the City for educational program costs shall provide a written request for reimbursement in advance of enrollment to the Human Resources Division. The form provided shall include the type of training, sponsoring organization or institution, meeting times and costs. Human Resources and the employee’s department head will make the determination if the chosen education program is eligible for reimbursement. No employee shall receive any reimbursement until they have provided satisfactory proof of successful completion of the coursework with a grade of “C” or above, or “Pass” in the case of a Pass/Fail course. Such proof of completion shall be provided within 30 days of the conclusion of the course. Education reimbursement is a taxable benefit under IRS Code. Education reimbursement will be applied to the calendar year in which the course is passed and satisfactory proof of completion is submitted. Mandatory or annual coursework, attendance at conferences and training required to maintain job specific certifications or proficiencies are not included in the Education Reimbursement Program. Adopted by Action of the City Council July 2019 30 City of Cupertino UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM Policy No. 20 CITY SPONSORED RECREATION AND WELLNESS PROGRAMS Unrepresented employees shall have the privilege of enrollment in City sponsored recreation programs at the City residents’ fee structure and in preference to non-residents wishing to enroll. Each calendar year, employees and family members on the employee’s dental plan are eligible to be reimbursed up to $500 per employee in Rec Bucks. Employees shall be reimbursed for approved recreation services in accordance with the City’s Recreation Buck Policies. Programs allowing for preregistration will be reimbursed after completion of the program, including those allowing for or requiring preregistration in the calendar year prior to reimbursement. Reimbursements shall be applied to the year in which they are received. Benefited employees will also receive a free employee-only annual Cupertino Sports Center membership. Part-time benefited employees will have the annual amount of Recreation Bucks prorated based on number of hours worked. Recreation Bucks are a taxable benefit under IRS Code, and must be used by the employee within the calendar year and are non-transferrable. City employees are eligible to participate in the City’s wellness program as provided for in the City’s Administrative Rules and Regulations. Adopted by Action of the City Council July 2019 31 City of Cupertino Listing of Unrepresented Classifications by Salary Rate or Pay Grades Effective July 1, 2013 (Res. No. 13-061) Amended 11/19/ 13 (Res. No. 13-099) Amended 12/17/13 (Res. No. 13-108) Amended 3/18/14 (Res. No. 14-130) Amended 11/3/14 (Res. No. 14-209) Amended 11/3/2015 (Res. No. 15-099) Amended 6/21/16 (Res. No. 16-064) Amended 10/4/16 (Res. No. 16-104 – Not adopted) Amended 10/18/16 (Res. No. 16-108) Amended 11/15/16 (Res. No. 16-128) Amended 6/20/17 (Res. No. 17-056) Amended 10/17/17 (Res. No. 17-101) Amended 7/16/19 (Res. No. 19-086) Amended 11/19/19 (Res. No. 19-140) Amended 6/7/22 (Res. No. 22-067 on 6/9/22) Amended 8/16/22 (Res. No. 22-103) Amended 3/7/23 (Res. No. ) 32 ATTACHMENT A SALARY SCHEDULE Salary Effective First Full Pay Period of July, 2023 Classification Step1 Step2 Step3 Step4 Step5 ACCOUNTANT I $46.60 $48.93 $51.38 $53.95 $56.65 ACCOUNTANT II $51.37 $53.94 $56.64 $59.47 $62.44 ACCOUNTING TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 ADMINISTRATIVE ASSISTANT $40.65 $42.68 $44.82 $47.06 $49.41 ASSISTANT CITY ATTORNEY $92.83 $97.48 $102.35 $107.47 $112.84 ASSISTANT CITY MGR $126.92 $133.27 $139.93 $146.93 $154.27 ASSISTANT DIRECTOR COMM DEV $90.80 $95.34 $100.11 $105.12 $110.37 ASSISTANT TO THE CITY MANAGER $74.68 $78.41 $82.33 $86.45 $90.77 ASST DIR PUBLIC WORKS ENG $94.47 $99.19 $104.15 $109.36 $114.82 ASST DIR RECREATION COMM SVCS $90.80 $95.34 $100.11 $105.12 $110.37 BUDGET MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 BUILDING OFFICIAL $85.34 $89.60 $94.08 $98.79 $103.73 BUSINESS SYSTEMS ANALYST $65.89 $69.18 $72.64 $76.28 $80.09 CAPITAL IMPV PROGRAM MGR $84.81 $89.05 $93.51 $98.18 $103.09 CHIEF TECHNOLOGY OFFICER $112.10 $117.71 $123.60 $129.78 $136.26 CITY CLERK $75.73 $79.51 $83.49 $87.66 $92.05 CITY ENGINEER $94.47 $99.19 $104.15 $109.36 $114.82 COMMUNITY RELATIONS COORDINATOR $46.86 $49.21 $51.67 $54.25 $56.96 DEPARTMENT HEAD $112.10 $117.71 $123.60 $129.78 $136.26 DEPUTY BUILDING OFFICIAL $73.82 $77.51 $81.39 $85.46 $89.73 DEPUTY CITY ATTORNEY $66.80 $70.14 $73.64 $77.33 $81.19 DEPUTY CITY CLERK $54.04 $56.74 $59.58 $62.55 $65.68 DEPUTY CITY MANAGER $90.80 $95.34 $100.11 $105.12 $110.37 DIRECTOR OF ADMIN SERVICES $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF COMM DEVELOPMENT $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF PARKS AND RECREATION $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF PUBLIC WORKS $115.38 $121.15 $127.21 $133.57 $140.25 ECONOMIC DEVELOPMENT MANAGER $81.52 $85.59 $89.87 $94.37 $99.08 EMERGENCY SERVICES COORDINATOR $66.26 $69.57 $73.05 $76.71 $80.54 ENVIRONMENTAL PROGRAMS MANAGER $84.81 $89.05 $93.51 $98.18 $103.09 EXEC ASST TO CITY MANAGER $47.77 $50.15 $52.66 $55.30 $58.06 EXEC ASST TO THE CITY ATTNY $46.59 $48.93 $51.38 $53.94 $56.64 FINANCE MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 GIS COORDINATOR $48.71 $51.15 $53.71 $56.39 $59.21 GIS PROGRAM MANAGER $83.91 $88.11 $92.52 $97.14 $102.00 33 HUMAN RESOURCE ANALYST I $56.06 $58.86 $61.80 $64.90 $68.14 HUMAN RESOURCES ANALYST II $61.81 $64.90 $68.14 $71.55 $75.12 HUMAN RESOURCES ASSISTANT $33.76 $35.45 $37.22 $39.08 $41.03 HUMAN RESOURCES MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 HUMAN RESOURCES TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 I.T. ASSISTANT $45.46 $47.73 $50.12 $52.62 $55.25 INNOVATION AND TECHNOLOGY MGR $83.91 $88.11 $92.52 $97.14 $102.00 LEGAL SERVICES MANAGER $48.12 $50.53 $53.05 $55.71 $58.49 MANAGEMENT ANALYST $56.54 $59.37 $62.34 $65.45 $68.72 NETWORK SPECIALIST $58.16 $61.06 $64.12 $67.32 $70.69 PARK RESTORATION IMPV MGR $79.33 $83.29 $87.46 $91.83 $96.42 PERMIT CENTER MANAGER $73.82 $77.51 $81.39 $85.46 $89.73 PLANNING MANAGER $85.34 $89.60 $94.08 $98.79 $103.73 PUBLIC AFFAIRS MANAGER $72.94 $76.58 $80.41 $84.43 $88.66 PUBLIC INFORMATION OFFICER $72.86 $76.50 $80.33 $84.34 $88.56 PUBLIC WORKS PROJECT MANAGER $69.73 $73.22 $76.88 $80.72 $84.76 PUBLIC WORKS SUPERVISOR $58.78 $61.71 $64.80 $68.04 $71.44 PURCHASING MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 RECREATION MANAGER $60.01 $63.01 $66.16 $69.46 $72.94 RECREATION SUPERVISOR $54.43 $57.15 $60.01 $63.01 $66.16 SENIOR ACCOUNTANT $59.48 $62.45 $65.57 $68.85 $72.30 SENIOR ASSISTANT CITY ATTORNEY $102.13 $107.24 $112.60 $118.23 $124.14 SENIOR CIVIL ENGINEER $79.66 $83.64 $87.82 $92.22 $96.83 SENIOR MANAGEMENT ANALYST $61.81 $64.90 $68.14 $71.55 $75.13 SENIOR PUBLIC WORKS PROJECT MGR $73.21 $76.88 $80.72 $84.76 $88.99 SERVICE CENTER SUPERINTENDENT $75.15 $78.91 $82.86 $87.00 $91.35 SPECIAL PROJECT EXECUTIVE $112.10 $117.71 $123.60 $129.78 $136.26 TRANSPORTATION MANAGER $84.81 $89.05 $93.51 $98.18 $103.09 WEB SPECIALIST $51.42 $53.99 $56.69 $59.53 $62.50