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CC Resolution 13146 - Authorize the mandatory transfer of unused sick leave to CALGOVEBA accounts for specified employee groups upon separation UNCLAS Resolution -VEBA April 2024 RESOLUTION NO. 13146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED UNCLASSIFIED MANAGEMENT EMPLOYEES, EFFECTIVE APRIL 2024 WHEREAS, the City Council of the City of Campbell desires to establish certain salaries and benefits for unrepresented Unclassified Management personnel not covered by a Memorandum of Understanding; and WHEREAS, on August 16, 2022, the City Council adopted Resolution No. 12882 memorializing the salaries and benefits for Unclassified Management personnel; and WHEREAS, on behalf of its employees, the City of Campbell participates in a Voluntary Employees' Beneficiary Association (VEBA) known as CALGOVEBA; and WHEREAS, through its CALGOVEBA participation, the City of Campbell makes mandatory contributions to a tax-free trust account for each of its employees to help employees pay for healthcare expenses not otherwise covered by the City's insurance programs; and WHEREAS, Unclassified Management personnel currently have the option of cashing out their unused sick leave upon termination, retirement or death or applying their unused sick leave towards CaIPERS service credit upon retirement from the City; and WHEREAS, Unclassified Management personnel have_ voted to waive this option and instead have their unused sick leave automatically transferred to their respective CALGOVEBA accounts upon termination, retirement, or death according to the following formula: • 5 through 10 years of completed service: 20% at terminal pay rate; • Start of year 11 through completion of.year 15: 30% at terminal pay rate; • Start of year 16 through completion of year 20: 40% at terminal pay rate; • Start of year 21 and thereafter: 50% at terminal pay rate; and WHEREAS, there is no additional cost associated with the City allowing for a mandatory transfer of an employee's unused sick leave to their respective CALGOVEBA account; and WHEREAS, the City joined CALGOVEBA as a way to assist employees with their healthcare expenses and allowing employees to direct the value of their unused sick leave toward their CALGOVEBA accounts is a way for the City to further support its employees and retirees; NOW, THEREFORE, BE IT RESOLVED that effective April 16, 2024, members of the Unclassified Management group shall have their unused sick leave automatically transferred to their CALGOVEBA account upon termination, retirement, or death. 1 UNCLAS Resolution -VEBA April 2024 BE IT FURTHER RESOLVED that effective April 16, 2024, Section 3.6.6. and Section 5.E. of Resolution No. 12882 shall be amended to read as follows: SECTION 3. HEALTH & WELFARE BENEFIT PROGRAMS B. Benefit Cost Adjustments 6. City of Campbell's Voluntary Employees' Beneficiary Association (VEBA) Plan (hereinafter referred to as, "CALGOVEBA") a. In replacement of the Retiree Award Program for new employees, Unclassified Management Employees will participate in the established CALGOVEBA program. The City will make a mandatory employer • contribution of eighty-six dollars and sixteen cents ($86.16) per pay period to each employee's CALGOVEBA account; and, each employee will make a • mandatory (pre-tax) employee contribution of forty dollars ($40) per pay period to their respective employee CALGOVEBA account. b. Mandatory Transfer of Unused Sick Leave to CALGOVEBA: See Section 5.E. below entitled, "Sick Leave." SECTION 5. OTHER PROVISIONS APPLICABLE TO ALL UNCLASSIFIED • MANAGEMENT EMPLOYEES E. Sick Leave Unclassified Management employees accrue 3.69 hours of sick leave per pay period. Accumulation is unlimited. Upon an employee's termination, retirement, or death, the City shall automatically transfer the value'of the employee's unused sick leave to his or her respective CALGOVEBA account according to the following formula: • 5 through 10 years of completed service: 20% at terminal pay rate; • Start of year 11 through completion of year 15: 30% at terminal pay rate; • Start of year 16 through completion of year 20: 40% at terminal pay rate; • Start of year 21 and thereafter: 50% at terminal pay rate. • BE IT FUTHER RESOLVED that unless it is otherwise stated herein or in Resolution No. 12882, it is not the intent of the City Council in approving this resolution to further change, modify, or repeal in any way any of the existing. provisions of the City of Campbell Personnel Rules and'Regulations; and 2 • UNCLAS Resolution -VEBA April 2024 FINALLY, BE IT FURTHER RESOLVED that the City Appointing Power and the Human Resources Manager have the authority to take any necessary administrative actions to implement the provisions of this resolution. PASSED AND ADOPTED this 16th day of April, 2024; by the following roll call vote: AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Susan M. Land ayor ATTEST: it/ I >a ,�C Andrea San rs, City Clerk •