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HomeMy WebLinkAboutr 10488 unrepresented management employeesRESOLUTION NO. 10488 (2014 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO REGARDING MANAGEMENT COMPENSATION FOR APPOINTED OFFICIALS, DEPARTMENT HEADS, AND MANAGEMENT EMPLOYEES AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the unrepresented management employees (Appointed Officials, Department Heads, and Management employees) of the City of San Luis Obispo have remained committed to the City's fiscal sustainability; and WHEREAS, the management employees have demonstrated sensitivity to the fiscal challenges facing the City for several years by agreeing to no across the board salary increases (e.g. "cost of living" increases) since January 2009; and WHEREAS, the management employees have also agreed to no increases in the City's contribution to health care for the past four calendar years, while medical premiums have increased in that same timeframe; and WHEREAS, the management employees remain committed to providing high quality service to the citizens of San Luis Obispo in an efficient and effective manner; and WHEREAS, the management employees acknowledge that all bargaining groups within the City have agreements through December 31, 2014 with no increases to total compensation. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby maintains management compensation as follows: SECTION 1. There will be no across the board salary increases (e.g. "cost of living" increases). SECTION 2. There will be no increase to the City's health contribution. SECTION 3. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit "A," fully incorporated by reference. SECTION 4. All other compensation and benefits afforded to management and appointed official employees not superseded by the above, shall remain in full force and effect. SECTION 5. This resolution shall be in effect from January 1, 2014 through December 31, 2014. R 10488 Resolution No. 10488 (2014 Series) Page 2 Upon motion of Council Member Carpenter, seconded by Vice Mayor Christianson, and on the following roll call vote: AYES: Council Members Ashbaugh, Carpenter and Smith, Vice Mayor Christianson and Mayor Marx NOES: None ABSENT: None The foregoing resolution was adopted this 21 st day of January 2014. May J n Marx ATTEST: Z'111�0 �— thong Meji City Clerk APP VED AS TO EQRM: Richard C. 41anos Partner, Liebert Cassidy Whitmore EXHIBIT "A" Page 1 of 5 MANAGEMENT FRINGE BENEFITS 2014 Section A Medical, Dental, Vision The City shall establish and maintain medical, dental and vision insurance plans for department head and management employees and their dependents. The City reserves the right to choose the method of insuring and plans to be offered. The City has elected to participate in the PERS Health Benefit Program pursuant to the Public Employees' Medical and Hospital Care Act (PEMHCA) with the "unequal contribution option" at the PERS minimum contribution rates, $119.00 per month for active and retired employees as of January 1, 2014. Employees with proof of medical insurance elsewhere are not required to participate in the medical insurance plan and may receive the unused portion of the City's contribution (after dental and vision insurance is deducted) in cash in accordance with the City's cafeteria plan. Those employees will be assessed $16.00 per month to be placed in the Retiree Health Insurance Account. This account will be used to fund the City's contribution toward retiree premiums and the City's costs for the Public Employees' Contingency Reserve Fund and Administrative Costs. However, there is no requirement that these funds be used exclusively for this purpose, nor any guarantee that they will be sufficient to fund retiree health costs, although they will be used for employee benefits. Employees will be required to participate in the City's dental and vision plans at the employee - only rate. Should they elect to cover dependents in the City's dental and vision plans, they may do so, even if they do not have dependent coverage for medical insurance. Employees shall participate in term life insurance of $4,000 through payroll deduction as a part of the cafeteria plan. Section B Cafeteria Plan Contribution The City's contribution to the Cafeteria Plan for regular, full -time employees will remain the same as the 2010 amounts. Employee Only $469 monthly Employee + 1 $928 monthly Employee + Family $1255 monthly Employees hired on September 1, 2008 or thereafter who elect not to be covered and opt out of the City medical plan will be required to provide proof of medical insurance elsewhere and receive a $200 per month cafeteria contribution. Employees hired prior to September 1, 2008 who elected either employee only medical coverage or who elect to opt out of the City medical plan with proof of medical insurance elsewhere shall be "grandfathered" in at the $790 per month contribution amount. Any employee initially Resolution No. 10488 (2014 Series) EXHIBIT "A" Management Fringe Benefits 2014 Page 2 of 5 grandfathered in at $790 per month who later changes the number of dependents covered loses the grandfather status from that point forward. Less than full -time employees shall receive a prorated share of the City's contribution. The City agrees to continue its contribution to the cafeteria plan for two (2) pay periods in the event that an employee has exhausted all paid time off due to an employee's catastrophic illness. Section C Life and Disability Insurance The City shall provide the following special insurance benefits in recognition of management responsibilities: 1. Long -term disability insurance providing 66 2/3% of gross salary (maximum salary $11,250 per month) to age 65 for any sickness or accident, subject to the exclusions in the long -term disability policy, after a 30 -day waiting period. 2. In addition to $4,000 term life insurance purchased by the employee through the cafeteria plan, a $100,000 term life insurance for department heads and $50,000 term life insurance for management employees, including accidental death and dismemberment. Section D Retirement The City shall provide the California Public Employees' Retirement System's (CalPERS) 2.7% at 55 plan to all eligible employees hired on or before December 6, 2012, including the amendments permitting conversion of unused sick leave to additional retirement credit, the 1959 survivor's benefit (Level Four), one year final compensation, and pre- retirement Option 2 death benefit. The Police and Fire Chiefs shall receive the same retirement formula as sworn personnel in their departments. The employee is responsible for paying the employee's contribution to Ca1PERS (8 % for miscellaneous, 9% for safety) effective the first full pay period in January 2012. For City employees hired after December 6, 2012, the City will provide the PERS 2% at 60 retirement plan using the highest three year average as final compensation. Employees will pay the full 7% member contribution required under the plan. For City employees hired after January 1, 2013, the City will provide the PERS 2% at 62 retirement plan using highest three year average as final compensation as required by State law with the implementation of PEPRA. Employees will pay the full 6.25% member contribution required under the plan. Resolution No. 10488 (2014 Series) EXHIBIT "A" Management Fringe Benefits 2014 Page 3 of 5 The City shall no longer report as salary all Employer -Paid Member Contributions (EPMC) to CalPERS for the purposes of retirement credit in accordance with Government Code Section 20636 (c) (4) effective the first full pay period in January 2012. Section E Supplemental Retirement The City shall contribute 1% of salary for management employees and 2% of salary for department heads to a defined contribution supplemental retirement plan established in accordance with sections 401 (a) and 501 (a) of the Internal Revenue Code of 1986 and California Government Code sections 53215 - 53224. Section F Pav for Performance In 1996 the City Council established the Management Pay for Performance System for management employees. The system is designed to recognize and reward excellent performance by managers and to provide an incentive for continuous improvement and sustained high performance. Instead of step increases, the management employee moves through his /her salary range solely according to accomplishment of objectives and job- related behavior. Further information about the Management Pay for Performance System can be found in the Management Pay for Performance System Guide. Section G Vacation Vacation leave is governed by section 2.36.440 of the Municipal Code, except that it may be taken after the completion of the sixth calendar month of service since the benefit date. Vacation leave shall be accrued as earned each payroll period provided that not more than twice the annual rate may be carried over to a new calendar year. However, if the City Manager determines that a department head has been unable to take vacation due to the press of City business, the City Manager may approve up to a six -month extension of maximum vacation accrual. The City Manager may, within two years of appointing a department head, increase the rate of vacation accrual to a maximum of 120 hours per year. Vacation schedules for management employees shall be based upon the needs of the City and then, insofar as possible, upon the wishes of the employee. A department head may not deny a management employee's vacation request if such denial will result in the loss of vacation accrual by the employee, except that, a department head may approve up to a six -month extension of maximum vacation accrual. However, in no event shall more than one such extension be granted in any calendar year. Department Head and management employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave, provided that an employee's overall performance and attendance practices are satisfactory. Resolution No. 10488 (2014 Series) EXHIBIT "A" Management Fringe Benefits 2014 PaEe 4 of 5 Section H Administrative Leave Department heads and appointed officials shall be granted 80 hours of administrative leave per calendar year. Management employees shall be granted 48 hours of administrative leave per calendar year. Administrative leave hours shall be pro -rated when a department head or management employee is appointed or leaves employment during the calendar year. The employee's final check will be adjusted to reflect the pro -rated hours, however there is no provision to receive cash payment for unused administrative hours. Department Heads and Managers are considered exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and not eligible for overtime payment. In general, management employees are expected to work the hours necessary to successfully carry out their duties and frequently must return to work or attend meetings and events outside their normal working hours. However, when specifically authorized by the department head due to extraordinary circumstances, a management employee may receive overtime payment of time and one -half for hours worked above and beyond what would be considered normal work requirements during an emergency event lasting at least eight (8) hours. Section I Holidays Department heads and management employees shall receive 11 fixed plus 2 floating holidays per year. The floating holidays shall be accrued on a semi - monthly basis and added to the vacation accrual. Section J Sick Leave Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 27 hours per year of sick leave if required to be away from the job to personally care for a member of his /her immediate family as defined in Section 2.36.420. This may be extended to 40 hours per year if the family member is part of the employee's household and to 56 hours if a household family member is hospitalized and the employee submits written verification of such hospitalization. If the family member is a child, parent, domestic partner or spouse, an employee may use up to 48 hours annually to attend to the illness of the child, parent or spouse, instead of the lesser maximums above, in accordance with Labor Code Section 233. In conjunction with existing leave benefits, department head and management employees with one year of City service who have worked at least 1,250 hours in the previous year may be eligible for up to 12 weeks of Family /Medical Leave in accordance with the federal Family and Medical Leave Act and the California Family Rights Act. Sick leave may be used to be absent from duty due to the death of a member of the employee's immediate family as defined in Section 2.36.420, provided such leave shall not exceed forty working hours for each incident. The employee may be required to submit proof of relative's Resolution No. 10488 (2014 Series) EXHIBIT "A" Management Fringe Benefits 2014 Page 5 of 5 death before being granted sick leave pay. False information concerning the death or relationship shall be cause for discharge. Upon termination of employment by death or retirement, a percentage of the dollar value of the employee's accumulated sick leave will be paid to the employee, or the designated beneficiary or beneficiaries according to the following schedule: (A) Death — 25% (B) Retirement and actual commencement of CalPERS benefits: (1) After ten years of continuous employment — 10% (2) After twenty years of continuous employment — 15% Section K Workers' Compensation Leave An employee who is absent from duty because of on-the-job injury in accordance with State workers' compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his /her base salary and the amount provided by workers' compensation law during the first ninety (90) business days of such temporary disability absence. Eligibility for workers' compensation leave requires an open workers' compensation claim. Section L Vehicle Assignment For those department heads requiring the use of an automobile on a regular 24 -hour basis to perform their normal duties, the City will, at City option, provide a City vehicle or an appropriate allowance for the employee's use of a personal automobile. Department heads who are not provided a City vehicle shall receive a car allowance of $236 per month. The use of a personal automobile for City business will be eligible for mileage reimbursement in accordance with standard City policy. Section M Uniform Allowance For employees required to wear a uniform, including the Fire Chief, Deputy Fire Chief, Fire Marshall and Police Chief, shall receive the same uniform allowance as those they directly supervise. Section N Appointed Officials The fringe benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution.