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CC Resolution 13147 - Adopting resolutions for Unclassified Management and certain Classified Management employees MGMT Resolution -VEBA April 2024 RESOLUTION NO. 13147 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED CLASSIFIED MANAGEMENT EMPLOYEES, EFFECTIVE APRIL 2024 WHEREAS, the City Council of the City of Campbell desires to establish certain salaries and benefits for unrepresented Classified Management personnel not covered by a Memorandum of Understanding; and WHEREAS, on August 16, 2022, the City Council adopted Resolution No. 12881 memorializing the salaries and benefits for Classified 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, Classified 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, Various subgroups of the Classified 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, those subgroups include: • Members who have completed 0 - 4 years of service; • Members who have completed 5 — 10 years of service; • Members who have completed at least 21 years of service; 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 1 MGMT Resolution -VEBA April 2024 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 above identified subgroups from the Classified Management employees shall have their unused sick leave automatically transferred to their CALGOVEBA account upon termination, retirement, or death. BE IT FURTHER RESOLVED that effective April 16, 2024, Section 3.B.6. and Section 5.E. of Resolution No. 12881 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. b. Mandatory Transfer of Unused Sick Leave to CALGOVEBA: See Section 5.E. below entitled, "Sick Leave." SECTION 5. OTHER PROVISIONS APPLICABLE TO ALL CLASSIFIED MANAGEMENT EMPLOYEES E. Sick Leave 1. Classified Management employees accrue 3.69 hours of sick leave per pay period. Accumulation is unlimited. 2. Mandatory Transfer of Unused Sick Leave to CALGOVEBA. a. For employees within the following subgroups, the City shall automatically transfer the value of the employee's unused sick leave to his or her respective CALGOVEBA account upon termination, retirement, or death: • Members who have completed 0 - 4 years of service; • Members who have completed 5 — 10 years of service; and • Members who have completed at least 21 years of service. • 2 MGMT Resolution -VEBA April 2024 b. The transfer of unused sick leave shall be pursuant to the formula set forth below: • 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. 12881, 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 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. La , Mayor ATTEST: • awaile, Andrea Sa ers, City Clerk 3