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• Seventeenth through the nineteenth year of service — 6 .923 hour per pay period, yields 180 hours of vacation per year. • Twentieth and subsequent years of service -- 7.692 hour per pay period, yields 200 hours of vacation per year. Vacation leave shall not be accumulated in excess of two (2) years' worth of vacation accrual computed to the 31st of December, except upon written authorization of the City Manager. O Illness During Vacation - An employee who commences a scheduled vacation period and subsequently becomes ill before his or her vacation period has been completed shall be placed on sick leave. When the employee's vacation leave is converted to sick leave, the appropriate vacation credit shall be restored to the employee's earned vacation balance, and a reasonable opportunity to utilize this vacation credit shall be provided within the City's existing practices in order to avoid loss of vacation credit. b. In-Lieu Hours In-Lieu Hours are established to recognize the inherent and distinctive terms and conditions of employment of Executive Management classifications. These positions are distinguished from all other merit system positions in that they serve solely at the pleasure of the City Manager or appointing authority in an exempt at will capacity, they may be removed without cause, and they are expected to work on call numerous hours beyond the regular work week without any additional form of compensation. In partial recognition of the extra work hours expected of these positions, in-lieu hours are established . Executive Management employees are eligible to receive one hundred sixty (160) hours per calendar year of in-lieu hours. This leave may be taken as time off, or paid in cash for any portion of this leave remaining as of the payroll period which includes December 31 of the calendar year or may go into the employee's 4O1(a) account (as permitted by the plan document) . Newly appointed Executive Management employees who have served less than one full calendar year may receive a prorated portion of this leave at the discretion of the City Manager. c. Holidays - The following are recognized holidays: New Year's Day Martin Luther King, Jr. Day (observed on the third Monday in January) President's Day (observed on the third Monday in February) Memorial Day (observed on the last Monday in May) Independence Day ATTY/RES0.0096/CC RESO FOR EXECUTIVE MANAGEMENT SALARY & SUMMURY OF BENEFITS EXHIBIT B REV: 10-14-16 RL Page 4 of 18