CC Resolution No. 16-109 Amending the Appointed Employees' Compensation ProgramRESOLUTION 16-109
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE APPOINTED EMPLOYEES' COMPENSATION PROGRAM
WHEREAS, the City Council desires to amend the Appointed Employees'
Compensation Program.
NOW, THEREFORE, BE IT RESOLVED that the Appointed Compensation Program
be amended, which is incorporated in this resolution by this reference and attached as
Exhibit A.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 18 th day of October 2016 by the following vote:
AYES:
NOES :
ABSENT:
ABSTAIN :
ATTEST:
Members of the City Council
Chang, Vaidhyanathan, Sinks, Wong
None
Paul
None
~~'dr
Z VED
~I/~.~
Savita Vaidhyanathan, V~ayor
City of Cupertino
Grace Schmidt, City Clerk
City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No . 1
PROGRAM PURPOSE AND DEFIN1TIONS FOR ELIGIBILITY
Exhibit A
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 and
City Attorney offices shall be eligible for participation under the Appointed Employees'
Compensation Program as hereby ad opted by action of the City Council and as same may be
amended or as otherwise modified from time to time.
Eligibility for inclusion in th1s Compensation program is limited to persons appointed
by the City Council and holding positions as management employees, as defined under section
2.52.290 of the Cupertino Municipal Code, in the City Manager and City Attorney Offices.
These are 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 appointed employees.
MANAGEMENT CLASSIFICATIONS :
Classification 'l 'itle
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
City of Cupertino
APPOINTED EMPLOYEES ' COMPENSATION PROGRAM
Policy No. 2
SALARY SCHEDULE
AND OTHER SALARY RATES
Exhibit A
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 equitably
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.
Effective October 1, 2016, a 1 % salary increase will be added to the salary range of each
cla ssifi cation in this unit. Effective the first full pay period in July 2017, a .75% salary increase will
be added to the sa lary range of each classification in this unit.
Adopted by Action of the City Council July 1, 2010
Revised October 2, 2012
Revised December 18, 2012, October 2016
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I. POLICY
City of Cupertino
APPOINTED EMPLOYEES'COMPENSATION PROGRAM
Policy No. 3
TRAINING AND CONFERENCES
Exhibit A
It is City of Cupertino policy that eligible persons under this Compensation Program shall
be reimbursed or receive a dvances 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 busines ses in the City. One means of implementing this encouragement is
through a formal reimbursement and advance sc hedule for authorized attendance at such
conferences, meetings and training sessions.
II DEFINITIONS
A. Conferences
A conference is an annu al 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 sha ll not come und er this definition.
D. Training Session
A training session i s a ny 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.
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III REIJ\1BURSEMENT AND ADVANCE PAYMENT SCHEDULE
A. Intent
Exhibit A
This schedul e is written w ith the intent that the employee wi ll make ever y 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 l ess expensive that pa y ing 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. Eligibl e 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 s hall it exceed air coach fare if
the vehicl e i s being used for getting to the destination. Government or group rates offered
by a provider of transportation must be used when avai l able.
Reimbursement or advances for use of a personal automobi le on City business within a local
area will not be made so as to supp lement that already being paid to those persons receiving a
monthly mileage allowance.
D. Lodging
Hotel or lodging expenses of the employee res ulting from the authorized event or activity
defined in this policy wi ll 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 wi ll not be reimburse d.
Where the lodging is in connection with a conference or other organized educational
act ivity , City-paid lodging costs shall not exceed the maximum group rate published by the
conference or activity sponsor, providing that lodging at the gro up rate i s available at the
time of booking. If the group rate at the conference hotel is not availab le, then the
non-conference lod g ing policy describ ed in the next para gra ph should be followed to find
another comparable hot e l.
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Exhibit A
Where lodgin g 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
are a 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
Pa yments to ward or reimbursement of meals related to authorized activities or events
shall be at the Internal Revenue Service per diem rate for meals and incidental
ex penses for a g iven location, as stated by IRS publications 463 and 1542 and b y the
U.S. General Services Administration . The per di e m shall be split among meals as
reasonably desired and reduced accordingly for less than full travel days. If per diem i s
claimed, no receipts are neces s ary. Alternatively, the actual cost of a meal can be
claimed, within a standard of reasonablenes s, 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 advanc e d for meal s not provided b y the activity,
on a per diem or actual co st basi s . The per diem and actual cost rate shall follow the
rul es described in the meals with no conference paragraph .
F. O t her Expenses
Payment s toward or reimbursement of expenses at such fun ct ions sh all be limited to the actual
costs c onsistent with the application of reasonabl e standard s.
Other r easo nable expenses related to bus iness purposes shall be paid consistent with thi s
policy.
No payments sh a ll be made unless, w here available, receipts are kept and submitted for all
exp enses 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
wi thin a stand a rd of reasonableness for the s ituation as m ay b e defined by the F inance
Department.
G. Non-Reimbursable Expenses
The City will n ot reimburse or advance p ayment to wa rd ex p e n ses including, but not
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Exhibit A
limited to:
1. The perso nal portion of any trip ;
2. Political or charitable contributions or events;
3. Family expenses, including tho se of a paitner when accompanyin g the employee on City-
related business , as well as child or pet-related expenses;
4. Ente1tainment expenses, including theatre, show s, movies , sporting events , go lf, spa
treatments, etc.
5. Gift s of an y kind for any purpo se;
6 . Service club meals;
7. Alcoholic beverages;
8. Non-mileage personal automob ile expenses including repairs, insurance, gasoline, traffic
citations; and
9 . Personal losses incurred whil e on City business.
IV ATTENDANCE
A. Budgetary Limitations
Reimbursement or advances for expenses relative to conferences, meeting or training sess ions
shall not exceed the budgeta ry limitations .
V. FUNDING
A. Appropriation Policy
It shall be the policy of the City to a pp ropriate funds su bject to ava il a bility of resources.
B. Training Sess ion s
Payments toward or r e imbursement of ex penses incurred in attendance at training sessions,
will be a ppropriated a nnu a lly through the budget pro cess .
VI. DIRECT CASH ADVANCE POLICY
From time to time , it may b e necessary for a City emp lo y ee to request a direct cash advanc e
to cover anticipated ex p enses whi l e trave ling or doing business on the City's behalf. Such
request for an advance should b e submitted to their supervi sor no l ess than seven da ys prior
to the need for the a d vance with th e fo ll owi n g information: 1) Purpose of th e expenditure; 2)
The anticipated amount of the ex p enditure (for example, hotel rates, meal costs, and
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Exhibit A
transportation expenses); and 3) The dates of the expenditure. An accounting of expenses
and return of any unuse d advance must be report ed to the City within 30 calendar da ys of the
employee's return on the expense report de scribed in Section VII.
V II. 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 day s of an expense incurred, and accompanied by a business purpo se for all
expenditures and a receipt for each non-per diem item .
Adopted by Action of the City Council
July 1, 2010
Revi sed December 18 , 2012
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City of Cupe1iino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 4
AUTOMOBILE ALLOWANCES AND
MILEAGE REIMBURSEMENTS
Exhibit A
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 reque sts must be approved by the Department Head.
Employees shall be paid an automobile allowance according to their employment contract
with the City.
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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 5
ASSOCIATION MEMBERSHIPS AND
PROFESSIONAL PUBLICATIONS
Exhibit A
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 teclmical publications . Such sponsorship, however, shall be conditioned upon
the several factors as set forth below.
Each association for which membership is claimed mu st 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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 6
OVERTIME WORKED
Exhibit A
Management employees are ineligible for overtime payments for time worked in
excess of what otherwise wou ld 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 i s
absent for less than a regular work day as lon g as the employee has his /her supervisor's
approval. Nothing in this policy precludes the a lternati ve wo rk 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
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Exhibit A
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 employees in the City Manager and City Attorney positions and their
dependents may be covered. The purpo se 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 the se positions, the City shall contribute the amounts listed
below towards the premium or pay the full cost of the premium if les s 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.
October 1, 2016 City Max Health City Max Dental City Total Max
Contribution Contribution* Contribution
Employee 733.39 134.85 868.24
Employee +l 1246.59 134.85 1381.44
Employee +2 1620.57 134.85 1755.42
January 1, 2018 City Max Health City Max Dental City Total Max
Contribution Contribution Contribution
Employee 769.95 134.85 904.80
Employee +1 1308.92 134.85 1443.77
Employee +2 1701.60 134.85 1836.45
January 1, 2019 City Max Health City Max Dental City Total Max
Contribution Contribution Contribution .
Employee 808.45 134.85 943.30
Employee + 1 1374.37 134.85 1509.22
Employee +2 1786.68 134.85 1921.53
Appointed employees in the City Manager and City Attorney positions will ha ve inunediate vesting
of retiree medical b enefits.
Adopted by Action of the City Counci l
July 1, 2010
Revised Decemb er 18, 20 12, July 2013, October 20 16
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City of Cupertino
APPOINTED EMPLOYEES ' COMPENSATION PROGRAM
Policy No. 8
FIXED HOLIDAYS
Exhibit A
It is the policy of the City of Cupertino to recognize days of hi storica l 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 holida ys for eligible employees covered by this
agreement:
1. New Year's Day
2. Martin Luther King Day
3. Presidents' Day
4. Memorial Day
5. Independence day
6. Labor Day
7. Veteran's Day
8. Thanksgiving Day
9. Day Fo llowing Thanksgiving
10. Christmas Eve
11. Christmas Day
12. New Year's Eve
When a holiday falls on a Sunday, the following Monday sha ll be observed as the non-work
day. When a holiday falls on a Saturday, the previous Friday sha ll be observed as the non-work
day.
FLOATING HOLIDAY
In addition to the paid holida ys, employees occupying these positions shall b e provided 20 floatin g
hours per calendar year as non-work time with full pay and benefits. Employees ma y accumulate
floating holiday hours up to two times their arumal accrual.
Adopted by Action of the City Council
Jul y l ,2010
Revised December 18, 20 12 , Jul y 2013
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No . 9
Exhibit A
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 the
City Manager and City Attorney 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 .
Adopted by Action of the City Council
July 1, 2010
Revised December 18, 2012, October
2016
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City of Cupertino
APPOJNTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 10
DEFERRED COMPENSATION
Exhibit A
It is the policy of the City of Cupertino to provide equitable current compensation and
reasonable retirement security for the City Manager and the City Attorney for serv ices
performed for the City. The City participates in the California Public Emp loyees' Retirement
System (PERS) and deferred compensation plans have been established . Both the employee
and emp lo yer may make contributions from current earnings to these plans. The purpose of
thi s 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 emp lo yees, thereby
increasing the ability , to attract and retain competent attorney employees.
The City shall maintain and administer means by which employees in these po sitions
may defer portions of their current earnings for future utilization. Usage of such plans shall be
subject to such agreements, rules and procedures as ar e necessary to properly administer each
plan. Emp l oyee contributions to such plans may be made in such amounts as felt proper and
necessary to the employee. Employer contributions sha ll be as determined by the City Council.
Adopted by Action of the City Council
July 1, 2010
Revised December 18 , 2012
14
City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 11
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRJBUTION
A. Employees hired on or before December 29, 2012 Only:
Exhibit A
For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a
2.7%@55 fommla.
Effective October 1 2016, the City agrees to pay the employee's contribution rate to the California
Public Employees Retirement System (CalPERS) not to exceed .75% of applicable sa lary and each
employee agrees to pay 7.25% of applicable salary.
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 Cuperiino 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
fornmla, 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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 12
DENTAL INSURANCE -EMPLOYER CONTRIBUTION
Exhibit A
It is the policy of the City of Cupertino to provide dental insurance under which
employees in the City Manager and City Attorney 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 $134.85* per
month per employee. Emollment 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 catTier 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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Poli cy No . 13
ADMINISTRATIVE LEA VE
Exhibit A
The City Manager and City Attorney shall receive eighty (80) hours of administrative le ave
with pay per year.
Employees may accumulate administrative leave hours up to two times their annual
accrual.
Employees shall be eligible to convert administrative lea ve hours to pay one time each
calendar year.
Adopted by Action of the City Co un ci l
Jul y 1, 2010
Revised December 18, 20 12, October
2016
17
City of Cupertino
APPOINTED EMPLOYEES ' COMPENSATION PROGRAM
Policy No. 14
EMPLOYEE ASSISTANCE PROGRAM
Exhibit A
It i s the policy of the City of Cupertino to provide an Employee Assis t ance Program
for the benefit of the C it y Manager and the City Attorney 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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No . 15
PUBLIC SERVICE CREDIT -VACATION ACCUMULATION
Exhibit A
The City Manager and the City Attorney 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.
Adopted by Action of the City Counci l
July 1, 2010
Revi sed December 18, 2012
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No . 16
HOUSING ASSISTANCE PROGRAM
Exhibit A
Hou sing ass istance may be offered to the City Manager and the City Attorney 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
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
Policy No. 17
VISION INSURANCE -EMPLOYER CONTRIBUTION
Exhibit A
It is the policy of the City of Cupe1iino 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 availab le 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 , 20 12
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City of Cupertino
APPOINTED EMPLOYEES' COMPENSATION PROGRAM
EXEMPT POSITIONS
Exhibit A
The salaries , wages, or rates of pay for City Attorney and City Manager employees whose
positions are exempt under the provisions of the Cupe1iino Municipal Code, are set forth
below. Only the City Council can modify these rates.
Monthly Salary Effective October 1, 2016
Classification Step 1 Step 2 Step 3 Step 4 Step 5
City Attorney $0 $0 $0 $0 $18 ,028.50
City Manager $0 $0 $0 $0 $21,475.13
Monthly Salary Effective First Full Pay Period in July 2017
Classification Step 1 Step 2 Step 3 Step 4 Step 5
City Attorney $0 $0 $0 $0 $18,163 .71
City Manager $0 $0 $0 $0 $21,636 .1 9
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