HomeMy WebLinkAboutORD 1451Ordinance No. 1451
An Ordinance of the City Council of the City of Palm Desert, California,
Amending Palm Desert Municipal Code Section 2.52.705(F), "Accrued
Vacation Time Buy-Back," to Establish Annual Irrevocable Election
Procedures, Increase Eligible Buy-Back Amounts, and Authorize a Limited
Initial Implementation Transition Election Period
Whereas, the City of Palm Desert ("City") maintains personnel rules governing
vacation leave benefits for eligible City employees; and
Whereas, Palm Desert Municipal Code Section 2.52.705(F) currently authorizes
eligible employees with one hundred twenty (120) accrued vacation hours to receive
monetary compensation for up to eighty (80) hours of accrued vacation per calendar
year, upon written request; and
Whereas, the City Council desires to update the vacation leave buy-back
program to provide clearer eligibility tiers, increase flexibility for employees with higher
vacation leave balances, and support consistent payroll administration; and
Whereas, the City Council desires to structure the program to require a written,
irrevocable election before the applicable vacation leave is accrued, except for a limited
initial implementation transition election period authorized by this Ordinance; and
Whereas, the City Council finds that prior-year irrevocable election procedures
and clear administrative controls are intended to reduce the risk of unintended tax
consequences, including issues related to constructive receipt of income, and to support
consistent payroll reporting; and
Whereas, the City Council desires to authorize the City Manager or designee to
establish administrative procedures, forms, and deadlines necessary to implement the
amended vacation leave buy-back program; and
Whereas, the City Council finds that this Ordinance is an administrative
personnel action and is not a "project" within the meaning of the California
Environmental Quality Act because it has no potential to result in a direct or reasonably
foreseeable indirect physical change in the environment; and
Whereas, all legal prerequisites to the adoption of this Ordinance have occurred.
The City Council of the City of Palm Desert, California, Does Ordain as Follows:
Section 1. Recitals.
The City Council finds that the foregoing recitals are true and correct and are
incorporated herein as substantive findings of this Ordinance.
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Section 2. Amendment to Palm Desert Municipal Code Section 2.52.705(F).
Palm Desert Municipal Code Section 2.52.705(F), "Accrued Vacation Time Buy -Back,"
is hereby amended to read as set forth in Exhibit "A," attached hereto and incorporated
herein by this reference.
Section 3. Implementation Authority.
The City Manager or designee is authorized to take all actions necessary to implement
this Ordinance, including preparation of election forms, payroll procedures,
administrative guidelines, transition election procedures, and employee notices
consistent with Palm Desert Municipal Code Section 2.52.705(F), as amended.
Section 4. No Conflict With Controlling Agreements.
This Ordinance shall not supersede any employment agreement, collective bargaining
agreement, or other controlling personnel policy to the extent such agreement or policy
provides otherwise.
Section 5. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is held
invalid or unconstitutional by a court of competent jurisdiction, the remaining portions of
this Ordinance shall remain in full force and effect. The City Council declares that it
would have adopted this Ordinance and each section, subsection, sentence, clause,
phrase, and portion thereof, irrespective of the fact that any one or more portions may
be declared invalid or unconstitutional.
Section 6. Effective Date.
This Ordinance shall take effect thirty (30) days after its adoption. Within fifteen (15) days
after adoption, the City Clerk shall cause the Ordinance, or a summary thereof, to be
published in the manner required by law.
Adopted on June 11, 2026.
Evan Trubee
Mayor
Attest:
Anthony J. Mejia
City Clerk
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I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby
certify that Ordinance No. 1451 is a full, true, and correct copy, and was introduced at a
regular meeting of the Palm Desert City Council on May 28, 2026, and adopted at a
regular meeting of the City Council held on June 11, 2026, by the following vote:
Ayes: Harnik, Moreno, Nestande, Pradetto, and Trubee
Noes: None
Absent: None
Abstain: None
Recused: None
In Witness Whereof, I have hereunto set my hand and affixed the official seal of
the City of Palm Desert, California, on ____________________.
Anthony J. Mejia
City Clerk
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6/12/2026
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EXHIBIT "A"
PROPOSED AMENDMENTS TO
PALM DESERT MUNICIPAL CODE SECTION 2.52.705(F)
VACATION LEAVE BUY-BACK
2.52.705 Vacation leave.
As currently written:
F. Accrued Vacation Time Buy-Back. All regular full and half-time employees with one
hundred twenty accrued vacation hours, may, upon written request, be compensated for
up to a maximum of eighty hours of accrued vacation per calendar year, instead of
taking vacation time off. The same applies to exempt employees in Group A and Group
B.
Amended to read as follows:
F. Accrued Vacation Time Buy-Back. Regular full-time and half-time employees,
except as otherwise provided by an employment agreement, collective bargaining
agreement, or other controlling personnel policy, may make an annual irrevocable
election to receive monetary compensation for a port ion of vacation leave to be accrued
in the following calendar year, subject to the requirements of this subsection.
1. Annual Election Required. On or before December 31 of each calendar year, an
eligible employee may submit a written, irrevocable election to buy back a specified
number of vacation leave hours to be accrued during the following calendar year.
The calendar year in which the election is made is the "Election Year," and the
following calendar year is the "Payout Year."
2. Eligibility and Maximum Buy-Back Amounts. An employee's maximum election
shall be based on the employee's accrued vacation leave balance as of December 1
of the Election Year, as follows:
a. Employees with 200 or more hours of accrued vacation leave may elect to buy
back up to 160 hours during the Payout Year.
b. Employees with 120 or more hours of accrued vacation leave may elect to buy
back up to 80 hours during the Payout Year.
c. Employees with 80 or more hours of accrued vacation leave may elect to buy
back up to 40 hours during the Payout Year.
3. Limitation to Payout-Year Accruals. Except as expressly provided in paragraph 6
for the initial implementation period, buy-back payments under this subsection shall
apply only to vacation leave accrued during the Payout Year and shall not exceed
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the amount elected by the employee or the amount of vacation leave actually
accrued and available for buy-back during the Payout Year, whichever is less.
4. Payment During Payout Year. During the Payout Year, an employee who made a
timely irrevocable election may request payment of all or part of the elected amount
in writing, subject to payroll procedures established by the City Manager or
designee. Any elected amount not requested for payment by December 1 of the
Payout Year shall be paid to the employee on or before December 31 of the Payout
Year, provided the employee has accrued sufficient vacation leave and the payment
is consistent with applicable law.
5. No Expansion of Leave Accrual or Use Rights. This subsection authorizes
monetary compensation for eligible vacation leave only. It does not increase an
employee's rate of vacation accrual, modify vacation scheduling requirements, or
limit the City's authority to approve or deny vacation use based on operational
needs.
6. Initial Implementation Transition Election Period. For the first calendar year in
which this subsection is effective, the City Manager or designee may establish one
additional transition election period. An eligible employee may submit a written,
irrevocable transition election during that period to buy back additional vacation
leave hours in the same calendar year, provided that:
a. the transition election shall apply only to vacation leave accrued after the date of
the employee's transition election, unless the City Attorney and Finance Director
determine that a different treatment is permissible under applicable law and
payroll tax requirements;
b. the transition election shall be irrevocable once submitted;
c. the employee must satisfy the applicable vacation leave balance threshold as of
a date established by the City Manager or designee during the transition election
period;
d. the total number of vacation leave hours bought back during the initial
implementation calendar year shall not exceed 160 hours per employee; and
e. the transition election period shall automatically expire at the end of the initial
implementation calendar year and shall not apply in any subsequent calendar
year unless reauthorized by ordinance.
7. Separation from Employment During Payout Year. If an employee separates
from City employment during the Payout Year after making a timely irrevocable
election under this subsection, the City shall pay the employee for any elected
vacation buy-back hours that have been accrued during the Payout Year and remain
available for buy-back as of the employee's separation date. If the employee has not
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accrued sufficient vacation leave during the Payout Year to satisfy the full amount
elected, the City shall pay only the amount of vacation leave actually accrued and
available for buy-back as of the separation date. Any elected amount that has not
been accrued as of the separation date shall not be payable. Payment shall be
made in accordance with the City's regular payroll procedures and applicable law.
8. Other Vacation Payout Rights Preserved. Nothing in this subsection shall reduce
or limit any separate payment for accrued vacation leave otherwise due to the
employee upon separation under this Code, an employment agreement, collective
bargaining agreement, personnel policy, or applicable law.
9. Administrative Procedures. The City Manager or designee may adopt
administrative procedures and forms necessary to implement this subsection,
including procedures for election deadlines, payroll processing, minimum leave -
balance requirements, verification of eligible accruals, treat ment of employees who
separate employment during a Payout Year, and other procedures necessary to
ensure consistent administration and compliance with applicable law.
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