HomeMy WebLinkAbout08/03/1993, C-13 - APPOINTED OFFICIALS HEALTH BENEFIT AMOUNT INCREASE IlluAl�lll�llllln�llnlnllll II r MEETING DATE:
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COUNCIL AGENDA REPORT ITEM NUMBER_
FROM: John Dunn, City Administrative Officer
PREPARED BY: Ann Slate, Personnel Director; .
SUBJECT: Appointed Officials Health Benefit Amount Increase
CAO RECOMMENDATION:
Adopt a Resolution increasing the health benefit amount for
Appointed Officials and Management Personnel
DISCUSSION:
The City Council in 1989 adopted Resolution 6604 which established a five year
managerial compensation plan for appointed officials and certain management
personnel. The employees covered by this resolution are the City Administrative
Officer, City Attorney, City Clerk, Assistant City Administrative Officer, City Engineer
and the Directors of the City's departments, Community Development, Finance, Fire,
Personnel, Police, Public Works, Recreation and Utilities. The resolution provided a
comprehensive policy for determining scheduled salary increases based upon
performance and established management fringe benefits.
Due to the City's financial situation and a need to reduce expenditures in order to
provide for financial stability, salary increases have been waived for Appointed
Officials and City department heads since April of 1991 . Following the evaluation of
he Appointed Officials in May of this year, the City Council decided in closed session
to increase the monthly health benefit amount that the Appointed Officials receive as
a contribution toward their health insurance premium costs in lieu of a salary increase.
Consistent with the City's current compensation policy of providing the Management
Team with the same fringe benefit package, the City Administrative Officer is
requesting that the Department Heads receive a similar increase to their health benefit
amount.
Effective the first pay period in April, 1993, (when Management pay for performance
increases were to have been initiated) the health benefit amount is to be increased by
$50 per month with an additional $25 per month to become effective the first full pay
period in December, 1993. This would take the monthly amount of $325 which is
currently the lowest amount provided any City employee group to $375 and then
increase it to $400 in December. These phased increases place the management
health benefit amount in parity with other City employee groups. In December, the
various employee groups will receive the following based upon previously negotiated
agreements: Police Staff Officers and Firefighters Associations, $400, and General
Employees Association, $395. The other Associations, Mid-Management, Battalion
Chiefs and Police Officers, will be negotiating new agreements which may result in
some adjustments to their health benefit amounts in December as well.
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COUNCIL AGENDA REPORT Page 2
CONCLUSION:
Adjustments to the Management employees' health benefit amount would bring it in
alignment with what other employee groups are currently receiving and scheduled to
receive in the coming fiscal year. As a cost saving measure, the Management Team
in April of this year voluntarily deferred their pay for performance raises which would
have entitled them to an increase in salary of 1-4% depending upon individual
performance. In recognition of this concession, an increase in the health benefit
amount is appropriate.
FISCAL IMPACT:
The recommended increase to the health benefit amount for the thirteen employees
that comprise the Management Team results in a total cost of $9,100. Funds are
available in the existing fund balances.
Attachment - Resolution
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RESOLUTION NO. (1993 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
INCREASING THE HEALTH BENEFIT AMOUNT FOR APPOINTED
OFFICIALS AND FOR CERTAIN MANAGEMENT PERSONNEL
WHEREAS, the City Council established a comprehensive Appointed Officials
and Management Development and Compensation policy in 1989; and
WHEREAS, the Council is committed to a comprehensive policy that
strengthens the recruitment and retention of well qualified and effective appointed
officials and management personnel; and
WHEREAS, the Council desires to maintain Appointed Officials and
Management benefits consistent with benefits afforded other City employees; and
WHEREAS, by Resolution No. 8015 (1992 Series) the City Council agreed that
any adjustment to compensation in 1993 would be authorized by Council resolution.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows: The Management fringe benefits set forth in Resolution 6604
(1989 Series) be amended to provide for an increase in the health benefit amount.
.Effective the first full pay period in April, 1993, the City shall contribute $375 per
month. This amount shall be increased to $400 per month effective the first full pay
period in December, 1993.
On motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
Resolution No. (1993 Series)
Page Two
the foregoing Resolution was passed and adopted this day of August, 1993.
Mayor Peg Pinard
ATTEST:
Diane Gladwell, City Clerk
APPROVED AS TO FORM:
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