10 Staff Report - Compensation Plan for FY- 2004-2005 & 2005-2006
DATE: TO: FROM: COUNCIL AGENDA REPORT NOVEMBER 8, 2004 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER MEETING DATE: 11/15/04 ITEM NO. 10 SUBJECT: ADOPT RESOLUTION APPROVING CONFIDENTIAL
EMPLOYEE COMPENSATION PLAN FORFISCAL YEAR2004-2005 & FISCAL YEAR 2005-2006 RECOMMENDATION: Adopt resolution approving Confidential Employee Compensation Plan for Fiscal Year 2004-2005
and Fiscal Year 2005-2006. DISCUSSION: Each year the Town Council adopts a resolution amending the compensation and benefits of Confidential employees. Confidential employees include
key technical and clerical positions which provide support services to administration in the Town Manager's Office, Town Clerk's Office, and Town Attorney's Office. Other confidential
positions include Secretary to Chiefof Police, Project Accountant, and Administrative Analyst. Confidential employees are not represented by an employee association or union. On September
7,2004, the Town Council adopted the Confidential Employee Compensation Plan for Fiscal Year 2004-2005. Amendments to the plan for FY 2004-2005 are recommended as a result of settlements
with the Town's bargaining units. Further, it is also recommended that the Confidential Employee Compensation Plan be adopted for FY 2005-2006. PREPARED BY: {J()pu&-\kr:YJleJo /rt-GARY
ROGERS Human Resources Director N:\MGR\AdminWorkFiles\cnclrpts\11-15 Confidential.wpd Reviewed by: Assistant.Town Manager Q¥/fown Attorney __ __CommUlllty
Development Revised: 11/9/04 2:04 pm RefoDllatted: 5/30/02
PAGE 2 MAYOR AND TO\VN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING CONFIDENTIAL EMPLOYEE COMPENSATION PLAN FOR FISCAL YEAR 2004-2005 & FISCAL YEAR 2005-2006 NOVEMBER 8, 2004 A summary
of the proposed amendments to the Confidential Em.ployee Compensation Plan for FY 2004-2005 and details of the proposed changes in FY 2005-2006 are attached. The proposed changes include:
an additional 0.5% salary increase effective October 24,2004; a 2% salary increase effective June 19,2005; a revised allocation for benefits for existing employees from $700 per month
to $800 per month effective January 1,2005; and a revised reduction in the cash allocation for benefits for newly hired employees from $794.09 per month to $400 per month effective November
15,2004. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: Funds to implement the proposed changes are included in the
Adopted FY 2004-2005 Annual Budget. Funding for the second year will be included in the proposed FY 2005-2006 Annual Budget. Attachments: 1. Summary of Proposed Changes Confidential
Employees FY 2004-2005 & FY 2005-2006 2. Resolution adopting Confidential Employee Compensation Plan for Fiscal Year 2004-2005 & FY 2005-2006 Exhibit A: Confidential Employee Compensation
Plan FY 2004-2005 & FY 2005-2006
Summary of Proposed Amendments Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 • Confidential Employee Resolution A separate Compensation Plan and Resolution for
Confidential Employees was approved by the Town Council on September 7, 2004. Additional amendments for FY 2004-2005 and new provisions for FY 2005-2006 are presented below. Additional
changes are recommended as a result of recent settlements with the Town's bargaining units. • Compensation FY2004-2005 A 2.5% salary increase occurred on August 29,2004. An additional
increase of 0.5% is scheduled to occur on October 24,2004. FY2005-2006 A 2% salary increase is scheduled to occur on June 19,2005. • Cash Allocation & Family Medical Insurance The cash
allocation benefit program will be amended to provide a fixed contribution of $800 per month effective January 1, 2005. Currently, the contribution for cash allocation is $794.09 per
month and is linked to the cost of Kaiser family medical coverage. The contribution will no longer be linked to any indicator and is expected to remain frozen at $800 per month. The
cash allocation contribution for all employees hired on or after November 15, 2004 shall be limited to $400 per month. The Family Medical Insurance Program will continue, thereby providing
full family medical coverage at the Kaiser level, and a town contribution of up to $65 per month for dental insurance. There will continue to be no cash-back permitted under the Family
Medical Insurance Program. ATTACHMENT 1 N:\MGR\AdminWorkFiles\cnclrpts\ConfidentiaI Summary II-IS.doc November 8, 2004
RESOLUTION NO. RESOLUTION OF THE TOWN OF LOS GATOS APPROVING CONFIDENTIAL EMPLOYEE COMPENSATION PLAN FOR FISCAL YEAR 2004-2005 RESOLVED, by the Town Council of the Town of Los Gatos,
County of Santa Clara, State of California, that the Confidential Employee Compensation Plan be approved as presented in Exhibit A. PASSED AND ADOPTED at a regular meeting ofthe TownCouncil
ofthe Town of Los Gatos, California, held on the day of September, 2004 by the following vote: COUNCIL MEMBERS: AYES: NAYES: ABSENT: ABSTAIN: SIGNED: . MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA ATTEST: CLERK. ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTACHMENT 2 N:\MGR\ADMINWORKFILES\CNCLRPTS\CONFIDENTIALRESOLUTION 2004.DOC November
2,2004
EXHIBIT A TOWN OF LOS GATOS CONFIDENTIAL EMPLOYEES COMPENSATION PLAN FY 2004-2005 & FY 2005-2006
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 1 PURPOSE To establish a program and guidelines for a confidential employee compensation plan pursuant to the
following goals and objectives: • Establish a system for the payment of confidential employees which results in appropriate salary-contribution relationships and competitive salary rates.
• Recognize the distinct character of confidential positions and incumbents as opposed to grouping them with other employees for salary purposes. • Establish a system where salary serves
as an effective tool for promoting better job performance. • Promote the further identification of confidential employees and understanding of associated roles, loyalties, and responsibilities.
APPLICATION This compensation plan shall apply to all employees occupying positions designated as Confidential. 1. EMPLOYMENT a. Step Placement for New Hires The Town will determine
the salary and wage rate for new hires. b. At-will Employment Confidential positions in the Town are at-will. Either the Town or the employee may terminate the employer-employee relationship
at any time for any reason. c. Performance Evaluations Performance evaluations take place at least annually prior to the anniversary date of the employee's date of hire or the date the
employee entered their classification. Performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall sign their individual performance
evaluations as evidence of N:\MGR\AclminWorkFiles\cncIrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee. Compensation Plan FY 2004-2005 &FY 2005-2006 Page 2 discussion having taken place; employee signature does not necessarily imply agreement with the evaluation.
An employee may attach separate written comments to his/her evaluation. d. Step Advancement Consideration for advancement from step to step within a' range shall occur at intervals of
one (1) year in length effective on each anniversary date. The annual performance evaluation will be the basis for step advancement. Such advancement to the next step shall only be authorized
if the. supervisor and department manager find that the employee is satisfactorily performing the duties of their position as reflected in the annual evaluation. If the employee's performance
is not satisfactory as determined by the supervisor's annual evaluation, the department manager shall deny advancement to the next step. The department manager has the option, at their
discretion, based on a recommendation by the supervisor, to recognize improving performance . by granting or denying a half-step increase· in lieu of denying the advancement to the next
step for unsatisfactory performance. If the employee's performance is exceptional as determined by the annual evaluation, the department manager with the approval of the Town Manager
has the discretion to grant a two step or one and one-half step increase. It is intended that this be used sparingly so that it can be reserved to recognize the truly exceptional employee
who is achieving journey level status in their classification (i.e. fully capable of performing all duties of the position) and can perform at the same level as an employee with the
years of experience required to achieve advancement to the new step if they had advanced one step each year. e. Bonus Program Effective August 29, 2004, the Exceptional Performance Bonus
program shall be eliminated. In lieu of this program, step 6 of all Confidential classifications shall be approximately 5% greater than step 5 and include an additional $0.577 per hour,
as reflected in the salary schedules listed in Appendix A. f. Promotions Employees desiring promotion or change of job classification shall keep an interest card on file with the Human
Resources Department. The Town shall determine the method for the selection of Town employees. Qualified employees who participate in a Town examination process shall N:\MGR\AdminWorkFiles\cnclrpts\C
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Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 3 be allowed time off from their regularly scheduled work. There shall be no overtime paid for participation
in an examination. g. Work DaylWeek The normal work day is defined as no more than eight (8), nine (9), ten (10), or eleven (11) consecutive hours of work time, with a single lunch break.
A normal work day shall be followed by a minimum of ten (10) hours off. The work week is defined as forty (40) hours of work during any consecutive seven (7) day period. A minimum of
one (1) forty-'eight (48) hour period without scheduled work shall be provided to each employee during any consecutive seven (7) day period. Flex-time work schedules consistent with
the definitions of normal work day and normal work week may be assigned by,the Town at its sole discretion. The Town shall provide no less than seventy-two (72) hours notice to affected
employees regarding a change in regular work schedules. Flex-days shall be identified and approved by by the Department Head and Town Manager as part of the approval of a flex-time work
schedule as well as the designation of the forty-eight (48) hour period without scheduled work. Employees may also make requests for temporary changes to their normal work schedule.
In those cases, the employee's schedule may change with the approval of the employee's department head (e.g. an earlier start and end of shift or a change in the number of hours per
day), so long as that change does not result in overtime liability to the Town. The Town may alter work schedules without notice during emergency situations. h. Layoff Notification A
minimum thirty (30) calendar days notice shall be provided to any employee that is laid off. i. Outside Employment Outside employment of Confidential employees shall be governed by California
Government Code Sections 1125 -1128. The Town may develop and apply regulations to assure compliance. Outside employment shall be reviewed and approved by the Department Head and Town
Manager on an annual basis. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 4 2. SALARY AND OTHER COMPENSATION Town Compensation Policies (1) Total compensation to be used in the analysis
of all Town compensation. (2). Marketplace consideration in establishing compensation. (3) Average or above-average total compensation for all Town classifications. (4) No reduction
in individual employee total compensation levels. (5) Final determination on changes in compensation based on Town's ability to pay. a. Compensation The salary schedules listed in Appendix
A shall be effective August 29, 2004, October 24, 2004, and June 19, 2005. b. Overtime With the approval of the Town Manager, and when necessary to perform essential work, a Department
Head may require an employee to work at any time other than during regular working hours until such work is completed. Overtime is scheduled solely at the discretion of the Town. An
employee directed by his/her Department Head or the Town Manager to work in excess of forty (40) hours in a designated work week, shall be compensated at the rate of one and one-half
times the employee's regular hourly rate. Hours charged to available paid leave, shall be counted as time worked for computation of overtime payments. Compensatory time can not be used
in the pay-period in which it is earned. Compensatory time off shall not be regarded as hours worked for the purposes of overtime calculation. A Department Head or the Town Manager may
permit an employee to take compensatory time in lieu of paid overtime. With Department Head approval, employees shall be permitted to accumulate compensatory time only to a maximum of
sixty (60) hours. When the maximum level of compensatory time is reached, overtime shall be paid. The Town will attempt to avoid scheduling overtime that conflicts with an employee's
personal plans unless it cannot be avoided. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 &FY 2005-2006 Page 5c. Call Back A minimum of three (3) hours payor its equivalent in compensatory time off, at the rate of time
and one-half, shall be guaranteed for any employee, who, after leaving his/her place of duty, is required to return to duty without advance notice of at least fourteen (14) calendar
days. There will be a three (3) hour minimum at the call back overtime rate for Town commission/council meetings which begin (2) two hours or more than either the start of or end of
the employee's regularly scheduled shift. With Department Head approval an employee may flex their schedule at the straight-time rate in-lieu of the call back provision of this paragraph.
d. Deferred Compensation A Town program of deferred compensation shall be available to Confidential employees. The Town makes no representation on the merit of either the plan or any
of the investment products or instruments which may be offered by the plan. The responsibility for evaluating the investment options within the plan is the responsibility of the individual
participant. e. Out-of-Classification Pay It is the intent of the Town, whenever possible, to avoid working an employee out of classification for a prolonged period of time. Compensation
for out-of-classification work shall be an additional 5% of the regular pay of the employee's permanent classification or the first step of the higher classification, whichever is greater.
Employees appointed to work out-of-c1ass will receive out-of-c1assification pay beginning the first day of the out-of-classification assignment. Performance of duties as part of a vacation
relief does not automatically qualify as out-of-c1assification. For purposes of this section, an out-of-c1assification assignment is defined as the full time performance of the essential
functions of an authorized, funded, permanent position in another classification by a qualified employee. "Essential functions" shall be as defined in the Essential Functions section
of the appropriate job specification. Any employee who believes they are working out-of-c1ass may request a review of their classification. N:\MGR\AdminWorkFiles\cnclrpts\Confidential
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Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 6f. Bilingual Incentive Pay Employees filling classifications specifically requiring bilingual ability and passing
the Town's certified examination shall be compensated at 2.5% above the normal compensation range for the regular classification. The provision of bilingual pay will be evaluated annually
in a manner prescribed by the Town, and continued or discontinued based on operational need. If bilingual pay is discontinued, the effective date shall be the beginning of the first
full pay period in January. g. Holiday Compensation (1) Employees will receive eight (8) hours of regular. pay when scheduled to have the holiday off (eight [8] hours total). If the
employee's scheduled day off occurs on a recognized Town holiday, the employee will receive eight (8) hours of holiday pay (e.g. eight hours in addition to all time worked or paid in
the pay period). In lieu of receiving eight (8) hours of holiday pay, an employee may elect to receive eight (8) hours of compensatory time. (2) Employees who are required to work on
a holiday will be compensated as follows: (a) Workday If the holiday occurs on a normally scheduled workday, the employee will receive eight (8) hours of holiday pay and time and one-half
for the hours actually worked on the holiday (twenty [20] hours total). (b) Day Off If the holiday occurs on a normally scheduled day off, the employee will receive eight (8) hours of
holiday pay and eight (8) hours of straight time plus time and one-half for the hours actually worked on the holiday (twenty-eight [28] hours total.) (3) Notwithstanding any other provision
of this section, employees who have voluntarily requested and received approval to work an alternate or flexible work-work schedule shall: (a) Use accrued vacation time, accrued compo
time, or personal· leave to make up the difference between the provided eight N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 7 hours of holiday pay and the actual number of regularly scheduled working hours on a designated holiday. For
example, if a holiday falls on a day the employee is scheduled to work nine (9) hours, he/she shall receive eight (8) hours of holiday pay and be required to use other accrued leaves
to make up the extra hour for that day. (b) Receive eight (8) hours of floating holiday pay when a holiday occurs on a regularly scheduled day off. The floating holiday has no cash value
and must be used by the end of the fiscal year in which it is granted or it shall be forfeited. h. Testimony for Town Matters Compensation for an employee subpoenaed to provide testimony
for Town related matters and participation in any legal matter required as a result of working for the Town will be reviewed on a case by case basis. 3. PAYROLL/PAYCHECKS Payroll Periods
A biweekly payroll period shall be used subject to the following condition: Employee pay shall shall not be withheld more than seven (7) calendar days following the end of the payroll
period; however, overtime may appear on the next pay'roll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early
submittal of time sheets and early distribution (before Friday) of pay checks. This may also occur at the end of the fiscal or calendar year.. Paychecks The Town shall provide an optional
electronic check deposit system for use by employees. Every effort will be made to make paychecks· available to employees as soon as checks are signed and ready for distribution. N:\MGR\AdminWorkFile
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Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 8 4. HOLIDAYS The following shall be observed as eight (8) hour holidays for Confidential employees: January
1st (New Year's Day) The 3rd Monday in January (Martin Luther King's Birthday) The 3rd Monday in February (President's Day) The last Monday in May (Memorial Day) July 4th (Independence
Day) The first Monday in September (Labor Day) Thanksgiving Day The Friday following Thanksgiving Day December 25th (Christmas Day) Four (4) hours each on December 24 and 31 Every day
declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday. Holidays which fall on Saturday shall be observed on the Friday prior, and
holidays which fall on Sunday shall be observed on the following Monday. 5. INSURANCE PROGRAMS a. Life Insurance Town shall pay premiums on minimum coverage of $50,000 and $50,000 Accidental
Death benefit. Additional life insurance may be purchased by the employee. b. Disability Insurance The Town will provide a Short Term Disability policy effective the 8th calendar day;
coverage of 60% of weekly earning up to maximum of $1300/week for 12 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up
to a maximum of $6000/month. c. Workers' Compensation Employees who sustain illness or injury arising out of and in the course of their Town employment shall receive benefits equal to
those mandated by the State of California plus the difference between State mandated benefits and the equivalent of 100% of the individual's regular salary, if any, paid by the Town
for the first thirty (30) calendar days of N:\MGR\AclminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 . Page 9 absence. Town shall deduct leave balances from the employee's accrued sick leave, accumulated overtime, vacation
leave, and annual leave (in that order) for all Town paid compensation. An employee may at his/her discretion advise' the Town that he/she does not wish to be compensated at a level
above the State-mandated benefits. In such case, the Town would provide no further compensation and' there would be no charge to leave balances. An employee without leave balances shall
only be paid State mandated benefits. Effective the 31st day of disability, the employee may elect to supplement the State mandated benefits with the Town's Short Term/Long Term Disability
Insurance. STD benefits will be reduced by the amount of periodic payments the employee is entitled to through Worker's Compensation. d. Liability Insurance The Town shall continue to
maintain a liability insurance policy covering all Town employees in the execution of their their official duties. e. Employee Assistance Program The Town shall contract to provide an
Employee Assistance Program and the premiums shall be paid by the Town. f. Unemployment Insurance The Town will provide State mandated unemployment insurance benefits through a reimbursement
program. g. Vision Plan Employees shall be enrolled in the Town's vision-care health plan (VSP Plan B, with $20 co-pay). The Town shall pay for employee-only coverage. At their own cost,
employees may enroll eligible dependents upon hire, during open enrollment and/or 'when a qualifying event occurs. h. Retirement Health Savings Plan Subject to the issuance of a private
letter ruling from the I.R.S., the Town will establish a Retirement Health Savings Plan through ICMA or similar vendor, by December 20, 2004. Contributions to such plan shall be made
by employees and shall be voluntary. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 10 6. CASH ALLOCATION PLAN For employees hired prior to November 15, 2004, the Town shall provide the following
cash allocation for benefits: effective July 1, 2004 $794.09 per month; effective January 1, 2005, $800 per month. Employees hired on after November 15, 2004, shall be provided a cash
allocation for benefits of $400 per month. Benefits that can be purchased through the cash allocation plan include medical, dental and vision insurance. These benefits are available
on a pre-tax basis. If the premium cost of the health plan exceeds the Town contribution, the employee shall pay through payroll deduction the difference between the monthly premium
and the amount contributed by the Town. With the exception of dental insurance, there will be an annual open-enrollment period. Upon proof of alternate medical coverage, .employees may
choose to receive part or all of their cash allocation in cash. Any amount received as cash is taxable. Employees electing to receive cash have the option of receiving two (2) equal
payments in December and June each year, or of receiving payment in the first two paychecks of each month (twenty-four [24] times a year). Pre-tax benefits available in the program are
medical, vision, and dental insurance. Medical benefits are available through the Public Employee's Retirement Health Benefits Program. Dental insurance is available through Delta Dental
Plan. Vision insurance is available through VSP. 7. FAMILY MEDICAL INSURANCE PLAN In lieu of the cash allocation provided above in Section 6, employees may elect to receive from the
Town a contribution toward the monthly medical insurance premiums equal to the cost of family coverage for Kaiser Medical Insurance . Program (Bay Area rates) provided through the California
Public Employees' Retirement System Health Benefit Medical Program. If the premium cost of the health plan exceeds the Town contribution, the employee shall pay through payroll deduction
the difference between the monthly premium and the amount contributed by the Town. The employee shall forfeit any balance should the Town's contribution exceed the cost of the premium.
Employees choosing this option in lieu of the cash allocation provided in Section 6, will also be provided up to $65 per month toward the cost of dental coverage. If the premium cost
of the dental plan exceeds the Town contribution, the employee shall pay through payroll deduction the difference between the monthly premium and the amount contributed by the Town.
The employee shall forfeit any balance should the Town's contribution exceed the cost of the premium. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc
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Confidential Employee Compensation Plan FY 2004-2005 &FY 2005-2006 Page 11Employees choosing this option shall not receive the cash allocation described in Section 6. Pre-tax benefits
available in the program are medical, vision, and dental insurance. Medical benefits are available through the Public Employee's Retirement Health Benefits Program. Dental insurance
is available through Delta Dental Plan. Vision insurance is available through VSP. 8. PUBLIC EMPLOYEES' RETIREMENT SYSTEM (P.E.R.S.) a. 2% at 55 The Town's contract with the Public Employees'
Retirement System (PERS) includes the 2% at 55 retirement formula for eligible Miscellaneous Town employees (regular employees). b. EPMC Conversion Effective June 25, 2000, the Town
ceased its participation in the Public Employees' Retirement System "Employer Paid Member Contribution" (EPMC) provision. Concurrently, the Town began paying in salary to Confidential
emp.loyees the equivalent dollar amount of the former EPMC (7% of salary). Employees shall be responsible for making their own PERS member contributions. The Town also has adopted a
Resolution materially the same as that recommended by the Public Employees' Retirement System to implement the provisions of 414 (h) (2) of the Internal Revenue Code (lRC). This Resolution
applies to all Confidential employees 9. BENEFITS ACCRUAL/PAYMENT & APPLICATION There shall be no accrual or payment of benefits during unauthorized leave, suspension without pay, or
leave without pay except as mandated by Federal and State regulations. Employee benefits shall be prorated to a level equal to the regularly scheduled hours. For example, an employee
working a regular schedule of 32 hours per week will earn 80% of the benefits provided to an employee working a regular schedule of 40 hours per week. . N:\MGR\AdminWorkFiles\cnclrpts\Confidential
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Confidential Employee Compensation Plan FY 2004-2005 &FY 2005-2006 Page 12 10. VACATION AND LEAVES a. Vacation Scheduling All vacation and annual leave scheduling is subject to the approval
of the Town. Employees are required to request time off in advance. The earlier requests are submitted, the greater likelihood the request will be honored. Every attempt will be made
by the Town to honor pre-approved vacations. If a pre-approved vacation is canceled due to the scheduling needs of the Town, the Town will reimburse the employee for verified deposits
for nonreimbursable reservations. All verifications must
be submitted prior to the vacation formally being canceled. b. Vacation Accrual Vacation shall be accrued as follows: oto 36 months -10 days per year (3.08 hours per pay period) 37 to
60 months -16 days per year (4.92 hours per pay period) 61 to 120 months -21 days per year (6.46 hours per pay period) 121 to 180 months -23 days per year (7.08 hours per pay period)
181 months & over -25 days per year (7.70 7.70 hours per pay period) Maximum accrual shall be 310 hours. If an employee has reached the maximum accrual level, no more vacation will be
accrued until the accrual level isreduced below the maximum amount. Employees are eligible to cash-out eighty (80) hours of vacation accruals twice each year in May and November. Income
from the cash outs will be included in the first payroll check of June and December. Employees, at their option, may convert accrued vacation leave (not annual leave) to sick leave on
an hour for hour basis once per fiscal year. Employees must request this conversion in writing to the Finance Department which will have thirty (30) business days to make the requested
change. c. Sick Leave Sick leave shall accumulate at the rate of eight (8) hours per month (3.70 hours per pay period); to a maximum of one-thousand (1000) hours. The Town may require
employees to provide a doctor's statement as proof of illness for any use of sick leave beyond one (1) working day. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation
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Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 13 d. Sick Leave Cash-Out Program Employees who terminate employment with the Town, or once a year in December,
may cash-out their accumulated sick leave as follows: 1 -59 months at 25% 60 -119 mqnths at 37.5% 120 months or more at 50% ·In order to be eligible for the sick leave cash-out program,
an employee must have a sick leave accrual balance of at least 150 hours after the annual cash-out. Employees working less than full-time shall have the 150 hour balance pro-rated, based
on hours worked. Employees who terminate with a sick leave balance of at least 150 hours may cash-out their entire balance pursuant to the schedule above. Employees hired prior to November
15, 2004, upon retirement, may convert 100% of their accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in
an account. The employee's .portion of medical payment will be withheld from their monthly retirement payment by P.E.R.S.. The Town agrees to pay the retiree quarterly in advance on
the first pay period of January, April, July, and October of each year after retirement. The first payment will be prorated to the nearest quarter. The retiree's portion of medical payments
will be paid from this account by the Town until all monies are depleted from the account or the retiree dies, whichever occurs first. This account will not accrue interest and will
not be paid in cash to the retiree or any beneficiaries. The retiree shall be responsible for 100% of their share of future medical insurance payments once the account is exhausted.
The Town has elected to participate under the Public Employees' Medical and Hospital Care Act, and pursuant to that Act, the Town's contribution for each retired employee or survivor
shall be increased annually as specified in Resolution No. 1991-194. e. Personal Leave Twenty-four (24) hours will be available per calendar year. Personal leave may not be accumulated
from year-to-year nor is it subject to cash-out at any time. Any unused personal leave at the end of the calendar year shall be forfeited. N:\MGR\AdminWorkFiles\cnclrpts\Confidential
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Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 14 f. Medical/Maternity/Family Leave Medical, maternity and. family leaves and benefits shall be granted in accordance
with State and Federal law, including the continuation of employee salary and benefits. The Town may, at its discretion, approve leave beyond the specific amount provided by law. g.
Bereavement Leave A maximum of five (5) days is available for death of each member of the immediate family. Immediate family is defined as parent, spouse, child, dependent, sibling,
and grandparent by blood or marriage. h. Disaster Leave Leave is available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect
all or a portion of the area within twenty (20) miles of Town Hall. Leave is subject to scheduling by the Town. Employees shall be allowed to charge time off to accumulated overtime,
vacation hours, sick leave hours or annual leave' hours (in that order). i. . Military Leave Military leave and benefits shall be granted in accordance with State and Federal law, including
the continuation of employee salary and benefits. j. Jury Duty Employee salary and benefits are to be continued during periods of Courtassigned jury duty. If an employee receives compensation
from the Courts, the employee shall return to the Town all compensation received for jury duty, except mileage or travel related compensation. k. Leave Without Pay Leave without pay
shall be subject to approval of the Town Manager upon recommendation of the appropriate department head. An employee who is on leave without pay shall not earn any employment benefits
(including, but not limited to such benefits as vacation leaves, annual leaves, medical benefits, sick leaves, retirement credits for time employed or seniority entitlement of any kind)
for the duration of such leave. An employee who is on leave without pay will have the ability to continue medical, dental and vision coverage at their own expense in accordance with
the Town's administrative policy on benefit continuation. N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 . Page 15 Vacation, sick leave, annual leave, or time worked shall not be used intermittently during an extended leave
to interrupt a determination that an employee is on leave with no pay. In accordance with State and Federal law, no employee on maternity or family leave will be disadvantaged with respect
to seniority entitlement. I. Leave Balances Vacation, annual leave, and accumulated overtime will be paid off upon resignation, retirement, or dismissal at 100% of value effective the
last full work-day with the Town. Sick leave may be cashed out as described above in Section d. . In the event of an employee's death, vacation, annual leave, and accumulated overtime
leave balances shall be paid to the employee's estate. m. Catastrophic Time Bank If an ·employee, or an employee's spouse, significant other, or child becomes catastrophically ill or
injured, the employee may request that a catastrophic time bank be established. If the employee employee is not capable, a Department Head, after consulting with and receiving approval
from an employee's family member, may request that a catastrophic time bank be established. The request shall be in writing and shall be directed to the Town Manager. The bank will enable
other employees to donate accrued CTO, vacation, annual leave, or sick leave to the requesting employee. All donations must be made in writing on· a form prescribed by the Town and shall
be limited to no more than four (4) hours per donation, in one (1) hour increments. Donations to an established catastrophic time bank are final and shall not be returned to the donor.
N:\MGR\AdmillWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc 11/11/2004
Confidential Employee Compensation Plan FY 2004-2005 & FY 2005-2006 Page 16 11. MISCELLANEOUS ISSUES a. Mileage Reimbursement Employees using personal vehicles on official Town business
shall be reimbursed at the mileage rate established by the I.R.S. Private vehicles used for Town business shall comply with all applicable California Vehicle Code Sections commencing
with Section 16430 through 16484 pertaining to "Insurance or Proof of Ability to Respond to Damages." N:\MGR\AdminWorkFiles\cnclrpts\Confidential Employees Compensation Plan Nov 2004.doc
11/11/2004
APPENDIX A TOWN OF LOS GATOS RANGE AND STEP TABLE (Effective October 24, 2004) Confidential Classifications RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEPS STEP 6 2138 $19.55 $20.52 $21.55 $22.63
$23.76 $25.52 2276 $22.44 $23.56 $24.74 $25.97 $27.27 $29.21 2373 $24.72 $25.96 $27.25 $28.62 $30.05 $32.13 2398 $25.35 $26.61 $27.94 $29.34 $30.81 $32.93 2511 $28.38 $29.79 $31.28 $32.85
$34.49 $36.79 Incentive pay (e.g. bilingual pay) is equal to 2.5% above the regular compensation. Confidential employees receive a 5% differential rate above the TEA equivalent range.
Lead pay is equal to 5.0% above the regUlar compensation Class Code Position Equivalent TEA Range 1200 Deputy Clerk 2138 1725 Office Clerk 2138 1700 Human Resources Specialist 2276 4950
Secretary/Chief of Police 2276 1150 Senior Deputy Clerk 2276 1300 Secretary/Town Attorney 2373 1450 Executive Assistant to the Town Manager 2398 1650 Administrative Analyst 2511 1350
Legal Assistant 2511 1620 Accountant 2511 Reflects .05% increase 11/11/2004, 11 :46 AM N:\MGR\MGR\AOMINWORKFILES\CNCLRPTS\Update Conf Employee Salaries October 24.xls