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HomeMy WebLinkAbout11/16/2010, C1 - MINUTES • Meeting Date: 11/16/10 Agenda Item: C1 MINUTES MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, SEPTEMBER 21, 2010 COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA 4:00 P.M.=SPECIAL MEETING ROLL CALL: Council Members Present: Council Members Jan Howell Marx,Allen K. Settle, Vice Mayor Andrew Carter, and Mayor Dave Romero Council Member John Ashbaugh was seated at the dais at 4:02 p.m. City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Acting Assistant City Manager, and Elaina Cano, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PRESENTATION —� Human Resources Director Irons and Human Resources Analyst Hendricks presented Employee Service Awards. BUSINESS ITEMS — �— By consensus, the Council agreed to revise the agenda to hear Business Item 2 before Business Item 1. 1. FOXPRO APPLICATION REPLACEMENT— GIS/PERMITTINGNVORK ORDERS. Finance Manager Malicoat introduced this item, following which Administrative Analyst Messner presented the agenda report and responded to Council questions and comments. EnerGov representative Chuck Newberry, and Finance and IT Network Administrator Jason Takagi answered Council questions relating to the vendors continued support of the software, current and future hardware compatibility, and the staff's transition to using the new software. DRAFT C1-1 1 City Council Meeting Page 2 Tuesday, September 21, 2010 Public Comments There was no public comment --end of public comments-- Council discussion ensued during which they expressed their support for staffs recommendations, and that the expenditure was necessary to secure reliable software for critical City applications. ACTION: Moved by Settle/Ashbaugh to award a contract to EnerGov for replacement of the FoxPro geographic information systems (GIS), permitting and work order applications and authorize the City Manager to execute the contract totaling $815,000. 2. Appropriate $120,000 allocated among all the funds for the purchase of a document management system. 3. Award a contract to American Microlmaging, Inc. (AMI) for a Laserfiche document management system to replace several FoxPro planning applications and authorize the City manager to execute the contract totaling $100,125; motion carried (5 :0). 2. ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID). Principal Administrative Analyst Elke and TBID Chair Conner presented the agenda report and responded to Council questions and comments. Public Comments There was no public comment. ---end of public comments— ACTION: Moved by Marx/Ashbaugh to adopt Resolution No. 10217 (2010 Series); motion carried 5:0. The Special Meeting adjourned at 5:43 P.M. ADJOURN TO A REGULAR MEETING ------------------- 7:00 P.M. — REGULAR MEETING Mayor Romero called the regular meeting to order at 7:00 p.m. All Council Members were present. Mayor Romero announced that the City would have a team participating in the 20th Annual San Luis Obispo Heart Walk, Saturday October 2, 2010, walking in honor of the late Chief John Callahan. DRAFT C1-2 City Council Meeting Page 3 Tuesday, September 21, 2010 PRESENTATIONS Actino Parks and Recreation Director Stanwvck introduced Recreation Manager Bates and Downtown Association Executive Director Cash who announced the artists and designs chosen for the Utility Box Art Project. Mayor Romero presented a proclamation to San Luis Obispo Regional Rideshare Program Manager Morgen Marshall, recognizing October 2010 as Rideshare month in the City of San Luis Obispo. PUBLIC COMMENT Jeff Whitener, San Luis Obispo, spoke about his concerns regarding the underutilization of the Damon-Garcia Sports Fields. Donald E. Hedrick. San Luis Obispo, spoke about his concerns regarding potential flooding at the Damon-Garcia Sports Fields. Efrem Joelsan, Waft Communities, spoke about his concerns regarding fee increases affecting the Laurel Creek development, and requested that the issue be agendized to consider a fee freeze for the development. Council would agree to agendize this issue, subject to a determination by the developer as to the application of prevailing wage laws with regard to this issue. Gary Fowler, San Luis Obispo, spoke about his concerns regarding the recent purchase of the City's double-decker bus. Dane Sensor, commended Mayor Romero for his service to the City. Paul Boniour, San Luis Obispo, spoke about his concern regarding the Laguna Lake outflow. Jody Frey, San Luis Obispo, spoke in opposition to the City's smoking ban and the obstruction of the sidewalk in front of Muzio's Deli. Zaki Mona Shabbar, spoke about his concerns regarding the overgrown bushes, trash and transients in the creek near his business. Arnold Ruiz, San Luis Obispo, spoke about his concerns regarding the rehabilitation of Laguna Lake. Dawn Phillips, San Luis Obispo, spoke about her general concerns within the City. The following citizens spoke in support of Measure H:' DRAFT C1-3 City Council Meeting Page 4 Tuesday, September 21, 2010 Ariel Hana West, San Luis Obispo. Rosemary Wilvert, San Luis Obispo. Mila Vuiovich-LaBarre, San Luis Obispo. Daniela Amon, San Luis Obispo. The following citizens spoke in opposition to Measure H: Dan Rivoire, San Luis Obispo, Executive Director, SLO County Bicycle Coalition. Russ Levanway, SoftTech. Eric Veium, San Luis Obispo. John Spatafore, San Luis Obispo. –end of public comments— CONSENT AGENDA There was no public comment for items on the Consent Agenda. By consensus, Council agreed to pull C6 for further discussion. ACTION: Moved by Carter/Settle to approve the Consent Agenda as indicated below. C1. MINUTES. ; ACTION: Moved by Carter/Settle to waive oral reading and approve as presented; motion carried 5:0. C2. AMENDMENTS TO THE CITY'S CONFLICT OF INTEREST CODE. ACTION: Moved by Carter/Settle to adopt Resolution No. 10218 (2010 Series) amending the City's Conflict of Interest Code; motion carried 5:0. C3. SAN LUIS BASEBALL STADIUM USE AGREEMENTS. ACTION: Moved by Carter/Settle to: 1. As recommended by the Parks and Recreation Commission and Joint Use Commission, approve a use agreement with the San Luis Obispo Baseball Alliance, LLC for the use of San Luis Obispo Baseball Stadium for 2011 to 2015 and authorize the Mayor to execute the agreement. 2. As recommended by the Parks and Recreation Commission and Joint Use Commission, approve a use agreement with the San Luis Obispo Rattlers Baseball Development Group for the use of San Luis Obispo Baseball Stadium for 2011 to 2015 and authorize the Mayor to execute the agreement; motion carried 5:0. C4. AMENDMENT OF THE PARKS AND RECREATION COMMISSION BYLAWS TO CHANGE THE REGULAR MEETING START TIME. DRAFT C1-4 City Council Meeting - ` Page 5 Tuesday, September 21, 2010 ACTION: Moved by Carter/Settle, as recommended by the Parks and Recreation Commission, to amend the Parks and Recreation Commission Bylaws to change the regular meeting start time from 7:00 p.m. to 5:30 p.m.; motion carried 5:0. C5. REVOCATION OF UNUSED TAXI PERMITS FOR 234-TAXI, LLC. ACTION: Moved by Carter/Settle to adopt Resolution No. 10219 (2010 Series) authorizing the City Manager to reduce the number of Taxi Permits authorized under the existing Certificate of Public Convenience and Necessity for 234-Taxi, LLC within thirty (30) days of the Council action;motion carried 5`0. C6. 2010 WATER RESOURCES STATUS REPORT. ACTION: Moved by Settle/Ashbaugh to: 1. Receive and file the City's 2010 Water Resources Status Report. 2. Receive update on City's Recycled Water Construction Water Permit Program; motion carried 5:0. C7. LEASE OF CITY OWNED PROPERTY AT 860 PACIFIC STREET, SUITE 103. ACTION: Moved by Carter/Settle to: 1. Approve the commercial lease agreement between the City of San Luis Obispo and Arroyo View Financial, Incorporated. 2. Authorize the Director of Public Works to execute the commercial lease agreement and all necessary paperwork; motion carried 5:0. -------------------------------------------------__-- — PUBLIC HEARINGS 3. TRANSFER OF ALL EXISTING BEACH CITIES CAB COMPANY CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND TAXI PERMITS TO NEW OWNER, TRI COUNTIES TRANSIT INC. Director of Public Works Walter introduced this item, following which Transit Manager Webster presented the agenda report and responded to Council questions and comments. Mayor Romero opened the public hearing. Masood Babaeian, President, Tri Counties Transit, Inc., spoke in support of staffs recommendation. Mayor Romero closed the public hearing. ACTION: Moved by Settle/Carter to adopt Resolution No. 10220 (2010 Series); motion carried 5:0. 4. ANNEXATION OF THE ORCUTT AREA: ADOPTION OF A PRE-ZONING ORDINANCE AND.IMPACT FEE RESOLUTION: AND ENVIRONMENTAL REVIEW (ANNX, ER, R 81A0). DRAFT C1-5 City Council Meeting Page 6 Tuesday, September 21, 2010 Council Member Marx recused herself due to a conflict of interest and left the Council Chamber. Community Development Director Mandeville introduced this item, following which Senior Planner Dunsmore presented the agenda report and responded to Council questions and comments. Mayor Romero opened the public hearing. John Evans, Cannon Engineering Consultants, San Luis Obispo, spoke in support of staffs recommendation and commended staff for their efforts. Jeanne Helphenstine, San Luis Obispo, spoke in support of staffs recommendation and commended staff for their efforts. Nick Muick, San Luis Obispo, spoke in support of staffs recommendation and commended staff for their efforts,and requested to work with staff regarding a pre- annexation agreement. Lory Frank Farrior, San Luis Obispo, spoke about her concerns and stated her opposition to development in the area.. Mayor Romero closed the public hearing. ACTION: Moved by Carter/Settle to adopt Resolution No. 10221 (2010 Series) and Resolution No. 10222 (2010 Series) and introduce Ordinance No. 1554 (2010 Series) 4:0; Marx recused. Council recessed at 8:57 p.m. and reconvened at 9:09 p.m. with all members present. 5. CULTURAL.HERITAGE COMMITTEE RECOMMENDATION TO UPDATE THE HISTORIC PRESERVATION PROGRAM GUIDELINES AND CREATE A HISTORIC PRESERVATION ORDINANCE.(GPI 72-09). Community Development Director Mandeville introduced this item, following which _Deputy Director of Long Range Planning Murry and Vice Chair Cultural Heritage Committee.Olivera, presented the agenda report and responded to Council questions and comments. Mayor Romero opened the public hearing. Robert.Pavlik, San Luis Obispo, spoke in support of staffs recommendation. Matt Kokkonen, San Luis Obispo, spoke in opposition of staffs recommendation: Mike Balmberger, San Luis Obispo, spoke in opposition to staffs recommendation. DRAFT C1-6 City Council Meeting Page 7 Tuesday, September 21, 2010 Donald E. Hedrick, San Luis Obispo, spoke about his concerns regarding the ordinance. Deborah Cash, Executive Director, Downtown Association, spoke in support of staffs recommendation, and expressed the DA boards recommendation of developing furthur guidelines with regard to financial assistance and reconsidering the amounts of fines. David Brodie, San Luis Obispo, spoke in support of staffs recommendation. Anne Hodges, San Luis Obispo, spoke about her concerns regarding the proposed districts. Steve Rebuck, San Luis Obispo, spoke of his concerns that the ordinace was extremely punitive and had a general lack of definition. Sara McEre, San Luis Obispo, spoke insupport of staffs recommendation. Jim Duenon, San Luis Obispo, spoke in support of staffs recommendation. Astrid Gallagher, San Luis Obispo, spoke in support of staffs recommendation. Steve Sicanoff, San Luis Obispo, spoke in support for historic preservation, however expressed his concern over the level of control the City would have. Brian O'Neill, spoke about his concerns regarding the negative impacts of houses being considered simply as investments as opoosed to homes. Susan Coward, San Luis Obispo, San Luis Obispo, spoke in opposition to the ordinace, and of her concerns about homes listed on the contributor list compared to the master list. Thomas Wheeler, San Luis Obispo, spoke in support of staffs recommendation. Peg Pinard, San Luis Obispo, representing the Old Town Neighborhood Association, spoke in opposition to the ordinace and of her concerns regarding the proposed fines and penalties. Leo Pinard, San Luis Obispo, spoke about his concerns regarding the proposed fines and penalties. Michael Draze, San Luis Obispo, spoke in support of staffs recommendation and of his concerns regarding the daily fines. Kevin Bright, San Luis Obispo, spoke against staffs recommendation. Pierre Rademaker, San Luis Obispo, spoke in support of the ordinance, however stated his concerns regarding the proposed fines. DRAFT C1-7 City Council Meeting Page 8 Tuesday, September 21, 2010 Steve Delmartini, San Luis Obispo, recommended reconsidering the 30 day remedy period and excessive daily fines. i Alex Gough, San Luis Obispo, spoke of his concerns regarding the language in the proposed ordinance and the amount of the proposed fines. Ermina Karim, Chamber of Commerce, spoke in support of staffs recommendations, but recommended that the fines be given further consideration. Dean Miller, San Luis Obispo, spoke in support of staffs recommendation, although stated that the proposed ordinance may need some small modifications Kevin Rice, San Luis Obispo, spoke in opposition to the ordinace. Paul Brown, San Luis Obispo, stated that fines outlined are onerous. Kathy Smith, San Luis Obispo, spoke in support of the intent of the ordinace, and of her hope that the Council will take public input and modify the ordinance. Paula Carr, San Luis Obispo, stated her support of the idea of the ordinance but suggested to regroup and find elements that are universally accepted. Mayor Romero closed the public hearing. City Attorney Dietrick stated that to create an ordinance draft fit for inclusion in the Municipal Code, there would be some changes to the order of various sections, however substantive changes would only be made on the approval of the Council. Council discussion ensued, during which Council gave direction for changes to the proposed ordinance. ACTION: Council agreed by consensus to modify the proposed ordinance and directed staff to return with changes on October 19th. In addition, Council continued the Public Hearing to October 5th to complete review of the Historic Preservation Program Guidelines. COUNCIL LIAISON REPORTS Council Member Settle spoke about the League's Annual Conference. Council Member Ashbaugh reported on his attendance at a meeting of the CAPSLO board, and the Integrated Waste Management Authority meeting. Mayor Romero reviewed the four resolutions approved at the Annual League of California Cities meeting, and reported on the Mayor's Luncheon meeting. Vice Mayor Carter, reported on his attendance at the League of California Cities meeting. DRAFT C1-8 City Council Meeting _ Page 9 Tuesday, September 21, 2010 Council Member Marx reported on her attendance at a Regional Transportation Agency meeting, and an executive meeting of SLOCOG. COMMUNICATIONS Council Member Marx questioned if the City's Public Works, Police and Fire personnel were familiar with the gas pipelines located in the City. City Manager Lichtig stated that efforts were already underway to perform a risk assessment concerning this issue and to obtain the locations of pipelines from the.gas company. There being no further business to come before the City Council, Mayor Romero adjourned the meeting at 12:30 a.m. Elaina Cano, CMC City Clerk APPROVED BY COUNCIL: xx/xx/10 i DRAFT C1-9 councilro� 11-16-11 ache OA 12C.PORtI ItemNumho /i CITY OF SAN LUIS OB 1 SPO FROM: Monica Irons, Director of Human Resources SUBJECT: Employee Agreements,January 1, 2011 through December 31, 2011 RECOMMENDATION 1. Adopt resolutions for management and confidential compensation and benefits resulting in an estimated $323,000 in savings during the term of the agreements, January 1, 2011 through December 31, 2011. 2. Authorize the City Manager to execute agreements with the International Association of Firefighters, Local 3523 (Fire Union) and the San Luis Obispo City Employees' Association (SLOCEA), upon ratification by their respective memberships, that result in an estimated $167,000 in savings during the term of the agreements, January 1, 2011 through December 31, 2011. DISCUSSION Background Wages, hours, and benefits are established through memorandums of agreement (MOA) with represented labor units. On December 31, 2010, MOAs with three of the City's five represented labor units expire. Those units are: the San Luis Obispo City Employees' Association (SLOCEA), the San Luis Obispo Police Officers' Association (POA), and the International Association of Firefighters, Local 3523 (Fire Union). Compensation for unrepresented managers and confidential employees is set by resolutions that also expire on December 31, 2010. Together, these five employee groups equate to about 94% of the City's regular staff. The City has an obligation to meet and confer in good faith with its represented employee groups prior to changing wages, hours, or working conditions. While the City does not have this same obligation with its unrepresented management and confidential employees, it finds that engaging employees in matters that affect them serves the organization and community well. After receiving guidance and negotiating instructions from the City Council, in late September each of the above employee groups were asked to meet to discuss the City's interest in reaching short-term labor agreements in an expedited manner. During these meetings staff discussed the City's current and forecasted financial situation. The information was based on the Interim Financial Forecast presented to the City Council in May 2010 and Five-Year General Fund Fiscal Forecast presented to Council on October 19, 2010. Knowing these discussions and negotiations were going to take place the Five Year Forecast was produced two months earlier than is typical. That forecast indicates an estimated average annual budget gap of$2.6 million over the next five years (2011-12 through 2015-16). Employee groups were asked to consider one year agreements that avoid increasing labor costs by forgoing typical items such as cost of living increases or C1-1 � 1 Employee Agreements 2011 Page 2 increases to the City's health contribution on behalf of employees. This approach helps contain labor costs and achieves some savings, while allowing time for further input and Council direction on more comprehensive and longer term labor cost containment strategies. The City's comprehensive budget process, including enhancements focused on service prioritization, will guide policy direction and longer term actions. In addition, the Financial Sustainability Task Force will provide recommendations to the City Manager in December for potential revenue generation as well as cost reduction measures. These activities, along with clear policy guidance from Council will better frame the next round of discussions with employee groups. Gaining Agreement with Employees Discussions were initiated with all groups that have MOAs or agreements expiring on December 31, 2010. Each group voiced a willingness to work productively with the City during these challenging financial times. Productive meetings took place during October and November with the unrepresented management and confidential employees as well as with Fire Union representatives and SLOCEA representatives. Schedules have been challenging for the POA, but staff expects further feedback from them in mid-November after this Council meeting. And while all groups understand that cost of living has been low and is expected to remain low, the increase in health insurance premiums will impact employees. Premiums will increase nine percent on average. The impact of the increase varies between employee groups and individuals but some employees could be impacted by as much as $220 per month. Summary of Tentative Agreements The following summarizes the proposed tentative agreements with the Fire Union and SLOCEA: 1. The Fire Union agreed to no across the board increases and no increase to the City's health contribution. The City agreed to operational no cost items including a more efficient and effective Station Bid process proposed by the Fire Union. The revised process saves time and resources while improving service to the community. The open bid process will allow Fire suppression employees to stay at a station; gaining intimate familiarity with their assigned district, the tools and equipment at the station, and a thorough understanding of the unique needs and challenges of that location. The proposed bid process brings much improved operational efficiency as employees only bid on assignments when a vacancy is identified. 2. The City's general employees, represented by SLOCEA, also agreed to no across the board increases and no increase to the City's health contribution. The Fire Union has ratified the above tentative agreement and SLOCEA is expected to prior to the November 16, 2010 Council meeting. The following summarizes the attached resolutions with unrepresented management and confidential employee groups: WCouncihAgenda reports\2010\201 I Labor Agreements I1_16_10\LaborAgreements201l.doc C1-2 Employee Agreements 2011 Page 3 1. For the second calendar year in a row, unrepresented management employees will not receive a cost of living increase. The City's health contribution for these employees will also remain unchanged. Other modifications to department head and appointed official compensation contribute to the overall savings. 2. Unrepresented confidential employees will also not receive an across the board salary increase, nor an increase in the City health insurance contribution. FISCAL IMPACT Agreements with four employee groups (approximately 81% of the employees covered under agreements that expire at year end) to contain employee salary and benefit costs provide organization-wide savings of about $490,000 annually compared with initial budget estimates. ALTERNATIVES Do not approve the resolutions or authorize the City Manager to prepare and execute amendments to Memorandum of Agreement pursuant to the tentative agreements, This alternative is not recommended, as the resolutions and tentative agreements are consistent with the Council's previous direction and the City's employer-employee relations policies. ATTACHMENTS 1. Management compensation resolution. 2. Confidential employees' compensation resolution. 3. Third Amendment to SLOCEA MOA. 4. Agreement with Fire Union. WCouncihAgenda reports\2010\2011 labor Agreements 11_16_10\LaborAgreements201 Ldoc C1-3 Attachment 1 Page I of 8 RESOLUTION NO. (2010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO REGARDING MANAGEMENT COMPENSATION FOR APPOINTED OFFICIALS AND MANAGEMENT EMPLOYEES AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS,the unrepresented management employees of the City of San Luis Obispo met multiple times during the month of October to identify short-term cost savings that could be accomplished in calendar year 2011 to minimize the City's financial challenges; and WHEREAS, the managers acknowledge the fiscal challenges facing the City of San Luis Obispo and are committed to working with the City to help achieve long-term solutions in future resolutions; and WHEREAS, the managers have agreed to short-term cost containment actions in calendar year 2011; NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby revises management compensation as follows: SECTION 1. This resolution shall be in effect from January 1, 2011 through December 31, 2011. SECTION 2. Management will not receive a cost of living increase during calendar year 2011. SECTION 3. Management will not receive an increase to the City's health contribution during calendar year 2011. SECTION 4. The City Manager will not receive a car allowance of$450 per month as provided in Resolution 9440 (2003 Series) during calendar year 2011. SECTION 5. Cash out of administrative leave will be suspended for the resolution term. SECTION 6. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit"A", fully incorporated by reference. SECTION 7. The Director of Finance and Information Technology shall reduce the appropriate accounts to reflect the compensation changes. C1-4 Attachment 1 Page 2 of 8 Upon motion of , seconded by and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of November, 2010. Mayor David F. Romero ATTEST: Elaina Cano City Clerk APPROVED AS TO . stine ietrick ity Attorney G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Management Resolution 201 LDOC C1-5 ® JAttachment 1, EXHIBIT "A" Page 3 of 8 MANAGEMENT FRINGE BENEFITS 2011 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, $108 per month for active employees and $97.20 for retirees as of January 1, 2011. The City's contribution toward retirees shall be increased by 5% per year of the City's contribution for the active employees until such time as contributions for employees and retirees are equal. 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 $938 monthly Employee+ Family $1254 monthly Employees with proof of medical insurance elsewhere my elect to opt out of the City's medical plan and receive a $200 cafeteria contribution. Employees who opted out of the City's medical insurance coverage and were hired prior to September 1, 2008 were "grandfathered" in at the $790 per month contribution level, until that time when they elected to be covered under the tiered contribution structure. An employee elects to be covered under the tiered contribution C1-6 Resolution No. (2010 Series) `Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 4 of 8 structure when he or she enrolls as an employee only or with dependents (employee plus one or family). At that time the employee would no longer be grandfathered in at the $790 per month contribution, but would receive the tiered contribution amount. Employees hired prior to September 1, 2008 that had employee only medical insurance coverage were "grandfathered" in at the $790 per month contribution level, until such time when they added dependents or opted out. At that time the employee would no longer be grandfathered in at the $790 per month contribution, but would receive the tiered contribution amount. 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 benefit $5,500 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 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 benefits as sworn personnel in their departments. The City agrees to pay the employee's contribution to CalPERS (8% for miscellaneous, 9% for safety). These amounts paid by the City are employee contributions and are paid by the City to satisfy the employee's obligation to contribute the current percentage of salary to CalPERS. An employee has no option to receive the contributed amounts directly instead of having them paid by the City to CalPERS on behalf of the employee.. It is further understood and agreed that the payment of the employee's CalPERS contribution is made subject to I.R.S. approval and reporting procedures. G:\Council\Agenda reports\2010\2011 Labor Agreements 11_16_10\Management Fringe Benefits 2011.doc C1-7 Resolution No. (2010 Series) Attachment 1, EXHIBIT"A" Management Fringe Benefits 2011 Page 5 of 8 The City shall 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). 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 Retiree Medical Benefit Trust Management employees participate in the San Luis Obispo Employees Retiree Medical Trust. This trust aims to provide for health insurance and:other medical expense reimbursements to San Luis Obispo City Employees Association (SL6CEA) and management employees after retirement. The Trust is administered separately by SLOCEA and a Board of Trustees. The City is not involved with the establishment or administration of the Trust. Included in the funding for the Trust will be amounts designated by SLOCEA to be deducted from each employees' paycheck. The City's sole responsibility is to forward the designated amounts to the Trust. The employee contribution is currently $100 per month and $6.50 per month to SLOCEA for administration of the Trust. Details of the Trust are found in the Trust Agreement Governing the San Luis Obispo Employees Retiree Medical Trust dated July 1, 2004. Appointed officials and public safety chiefs have opted not to participate in the Retiree Medical Trust. Section G Pay 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 H 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 a two-month extension G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Management Fringe Benefits 201 Ldoc C1-8 Resolution No. (2010 Series) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 6 of 8 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 a two-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. Section I Administrative Leave Department heads and appointed officials shall be granted 80 hours of administrative leave per calendar year. Department heads shall have the option of taking such leave as additional paid leave or receiving cash for up to 80 hours at year end upon approval of the City Manager. For the 2011 calendar year, the cash out provision for department head administrative leave is suspended. Management employees shall be granted up to 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. 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 J 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. G:\Council\Agenda reports\2010\2011 Labor Agreements 11_16_10\Management Fringe Benefits 201 Ldoc C1-9 Resolution No. (2010 Series) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 7 of 8 Section K Sick Leave Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 16 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 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 1,280 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 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 Ca1PERS benefits: (1) After ten years of continuous employment— 10% (2) After twenty years of continuous employment— 15% Section L 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 M 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 G:\Council\Agenda reports\2010\2011 Labor Agreements 11_16_10\Management Fringe Benefits 201 Ldoc CI-10 Resolution No. (2010 Series) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 8 of 8 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 N Uniform Allowance Employees who are required to wear a uniform, including the Fire Chief, Fire Marshal and Police Chief, shall receive the same uniform allowance as those they directly supervise. Section O 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. G:\Counci]\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Management Fringe Benefits 2011.doc C1-11 Attachment 2 Page I of 2 RESOLUTION NO. (2010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO REGARDING CONFIDENTIAL EMPLOYEES' COMPENSATION AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS,the City of San Luis Obispo has designated the Administration Executive Assistant, the Human Resources Administrative Assistant, the Legal Assistant/Paralegal and the Human Resources Specialist as confidential employees pursuant to the Government Code, WHEREAS, confidential employees are precluded from collective bargaining and therefore are not governed by a collective bargaining agreement, WHEREAS, the wages, hours and other terms and conditions of employment for confidential employees are established by resolution, WHEREAS, the confidential employees of the City of San Luis Obispo met multiple times during the month of October to identify short-term cost savings that could be accomplished in calendar year 2011 to minimize the City's financial challenges; and WHEREAS, the confidential group acknowledges the fiscal challenges facing the City of San Luis Obispo and is committed to working with the City to help achieve long-term solutions in future resolutions; NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby revises confidential compensation as follows: SECTION 1. This resolution shall be in effect from January 1, 2011 through December 31, 2011. SECTION 2. Confidential employees will not receive a cost of living increase during calendar year 2011. SECTION.3. Confidential employees will.not receive an increase to the City's health contribution during calendar year 2011. SECTION 4. All other compensation and benefits afforded confidential employees under Resolution No. 10085 (2009 Series) not superseded by the above, shall remain in full force and effect. SECTION 5. The Director of Finance and Information Technology shall reduce the appropriate accounts to reflect the compensation changes. C1-12 Attachment 2 Page 2 of 2 Upon motion of , seconded by and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of November, 2010. Mayor David F. Romero ATTEST: Elaina Cano, City Clerk APPROVED AS TO FORM: Christine Dietrick, City Attorney G:\CouncilWgenda reports\20 1 0\201 1 Labor Agreements 11_16_10\Resolution Confidentials 2011.doc C1-13 Attachment 3 Page 1 of 2 THIRD AMENDMENT to the January 1,2006—December 31,2009 Memorandum of Agreement Between the City of San Luis Obispo and the San Luis Obispo City Employees' Association ("SLOCEA") 1. PURPOSE OF THIS AMENDMENT The San Luis Obispo City Employees' Association ("Association") recognizes the financial difficulties facing the City of San Luis Obispo ("City") and therefore, agrees to extend the terns and conditions of the MOA, except as provided herein, to facilitate the City's financial planning process in these difficult economic times. II. ARTICLE 3,TERM OF AGREEMENT Upon adoption by Council, this Amendment shall become effective January 1, 2011, except those provisions which have specific implementation dates shall be implemented on those dates, and shall remain in full force and effect until midnight December 31, 2011. III. ARTICLE 5, SALARY, Section D, Salary Provision for the Term of Agreement The City and SLOCEA agree there shall be no cost of living increase to salaries for the term of this Amendment. IV. ARTICLE 16 Insurance and Refund, Section A, Contribution The Association agrees to waive its rights to meet and confer to propose a health care insurance contribution increase in calendar year 2011. During the term of this Amendment from January 1, 2011 through December 31, 2011, there shall be no increase in health care contribution. The City shall contribute the monthly amounts as set forth below for the Cafeteria Plan benefits for each regular, full time employee covered by this Amendment. Less than full-time employees shall receive a prorated share of the City's contribution. Employee Only $ 469.00 Employee Plus One $ 928.00 Family $1,255.00 1 C1-14 • - Attachment 3 Page 2 of 2 Employees shall be eligible for the City contributions set forth above based on number of dependents they enroll in the PERS Medical Benefit Program. Employees hired on or after September 1, 2008 who elect not to be covered under a 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 elected to opt out of medical coverage were "grandfathered" in at the$790 per month contribution amount. Any employee initially grandfathered in at$790 per month who later changes the number of dependents covered loses the grandfather status from that point forward. All other terms and conditions of the MOA shall remain in effect for the term of this Amendment as specified in Article 3. This Amendment supersedes any and all previous amendments to the MOA. CITY OF SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION. Katie Lichtig Ron Faria City Manager SLOCEA President Monica M. Irons Madelyn Paasch Director of Human Resources SLOCEA Vice President Date Date 2 C1-15 Attachment 4 Page 1 of 6 AGREEMENT Incorporating and Modifying the January 1, 2006—December 31, 2009 Memorandum of Agreement Between the City of San Luis Obispo and the International Association of Firefighters, Local 3523 I. PURPOSE OF THIS AMENDMENT In response to the City's request to meet with the International Association of Firefighters, Local 3523 to discuss a short-term agreement using an expedited approach, the City and the Association agree to incorporate by reference the January 17 2006 to December 31, 2009 Memorandum of Agreement, with modifications as set forth herein. The City recognizes the Fire Union's willingness to work cooperatively and productively with City staff. II. ARTICLE 6, REPRESENTATIVE ROLE Add paragraph below to existing language. 1. Union time bank hours are intended for use by eligible Local 3523 Executive Board members to conduct official union business. 2. Union members will donate a total of 440 hours per year(inclusive of carryover time) of vacation time, holiday time, and compensatory time off(CTO) to a union time bank. 3. The maximum number of hours donated by a union member to the time bank shall not exceed 12 hours per year. 4. Any hours remaining in the time bank on June 30`h of each year shall be carried over to the next year. If no hours were used in the previous year and the maximum hours remain in the time bank, no additional donations by members shall be authorized in the upcoming year. 5. During the first full pay period in July each calendar year, Local 3523 President along with the Executive Board and the Accounting Supervisor shall determine the number of hours remaining in the Union time bank. That number shall be subtracted from the maximum number of time bank hours of 440 hours. The difference between the actual number of hours and the 440 hours maximum will be divided by the number of Local 3523 represented employees. Each 56 hour per week employee shall contribute an equal number of leave hours and each 40 G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Fire Agreement.doc C1-16 Attachment 4 Page 2 of 6 hour per week employee will donate 70%of the amount donated by 56 hour per week employees to be debited by the City to maintain 440 hours in the time bank. 6. Donation of hours shall be non-revocable and not returned to the members. 7. Requests for time off that would use time from the bank must be authorized by the Executive Board and is subject to final approval per department policies and procedures. Approval for suppression personnel must be authorized in advance by a Battalion Chief and approval for non-suppression personnel must be authorized.in advance by the Fire Marshal or designate. 8. Vacancies created by approved requests that affect constant staffing, may be filled through mandated overtime. I11. ARTICLE 23, INSURANCE A. Contribution There will be no increase to the Cafeteria contribution for the term of this agreement. The City shall contribute $849 per month for Cafeteria plan benefits for each regular, full-time employee covered by this agreement. Less than full-time employees shall receive a prorated share of the City's contribution. E. Long-Term Disability Insurance Safety employees are covered for Long Term Disability Insurance through the Union's plan. Non-safety employees shall be covered under the City's Long Term Disability Insurance Program. Non-safety employees shall pay the Long Term Disability premiums by payroll deduction on a pre-tax basis through the City's cafeteria plan. The Long Term Disability insurance benefit for non-safety employees will provide 66 2/3% of gross salary to age 65 for any sickness or accident, subject to the exclusions in the long-term disability policy, after a 30-day waiting period. IV. ARTICLE 44, SENIORITY BIDDING FOR STATION ASSIGNMENT A. Intent: Utilize years of service as an empowerment tool for the employee. Thus enhancing their productivity and morale, through their ability to choose station assignment, program assignment and working partners. Station assignment longevity has been proven to deliver higher service levels to the public by enhancing knowledge of first in districts, institutional knowledge of facilities and target hazards, and improved skills delivery by crew cohesion resulting through consistent training and emergency response experiences. G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Fire Agreement.doc C1-17 Attachment 4 Page 3 of 6 B. Effective Date: An open bid process as defined below will become effective January 1, 2011. Each member will remain in their selected bid until they choose to utilize their bid for a vacant position, agree to a mutual, or are distributed based on department need as described below. C. Bid Procedure In the event of a vacancy (due to retirement, promotion, etc.) in any rank, upon determination by the Chief to fill the vacancy, the bid spot shall be declared vacant and available for bid from members of the same rank. • Bid selection will be based on department seniority using the department's master seniority list. • Each member will only be allowed one bid per year to take affect. Members who bid and are not selected, may bid again. An unsuccessful bid does not count against the one bid selection per year. • Newly promoted employees will be considered according to department seniority. • Bid assignments will begin the first day of the first full F.L.S.A. period following selection with the intent to eliminate or minimize overtime due to personnel movement. D. Process: 1. The President and Vice President of Local 3523 will have the opportunity for the first and second bid selection during each tern as president or vice president. Once that bid has been used, future bids during the remaining term will be based on department seniority. 2. The President of Local 3523 shall have the first selection 3. The Vice President of Local 3523 shall have the second selection. 4. The remainder of the bid selection will follow department seniority with the most senior member selecting first. The order of selection shall be by rank in the following order: Captains, Engineers, and then Firefighters. Probationary firefighters will not be included in the station selection process until they have completed their probationary period. E. Mutual Bid Upon request from two members of equal rank and specialty skill designation for a mutual exchange of their bid assignments, the Battalion Chief, Company Officers, and a union representative of the members making the request shall meet and evaluate the request for approval or denial. If the request for mutual G:\Council\Agenda reports\20 1 0\201 1 Labor Agreements 11_16_10\Fire Agreement.doc C1-18 Attachment 4 Page 4 of 6 exchange is denied, the applicants can utilize the IRC for review of that decision. To ensure equity throughout the entire bid process, mutual transfers are subject to the following additional requirements: 1. The bid transfer must be effective for a minimum of 12 months. 2. If within that 12 month period either party involved separates or promotes, the remaining party must comply with the following: a. The original station occupied by the person vacating will be put up for bid, and the remaining parties can bid for that position. If the mutual member is unsuccessful in obtaining that bid, then that member returns to his/her previous assignment, and recovers bid rights after the remainder of the 12 month period. F. Distribution Each crew will have a Paramedic assigned to it from the ranks of the Engineer or Firefighter. Captains may fill into the paramedic pool if there are not enough Paramedics within the Firefighter/Engineer rank. Each shift will have one of the three Paramedic Coordinators. The Captain taking the position of Paramedic Coordinator cannot be the primary paramedic on their selected crew. Each shift will have paramedics evenly distributed depending on the size of the paramedic pool (example: pool of 24, 8 medics per shift). Hazardous Materials Team Members will be evenly distributed to ensure at least one Hazardous Materials Team Member is assigned to each shift. All corrections to completed bids will take place with the Battalion Chief and a shop steward to make sure that paramedics, paramedic coordinators, and hazardous materials team members are represented on all three shifts. Individuals bidding for assignment as the Station 1 Captain shall be subject for interview by the Shop Steward and the appropriate Battalion Chief prior to bid selections being finalized. Individuals working out of grade will work at the station at which the vacancy is occurring. Selection of the individuals who will work out of grade is to remain consistent with existing policies. Vacancies created by promotion or retirements are to be filled by the newly promoted individuals. Administration of the Fire Department recognizes and supports the premise that placing employees at stations of their preference is beneficial. The Fire Department Administration needs a degree of flexibility to accomplish the following goal: G:\Council\Agendareports\2010\2011 Labor Agreements 11_16_10\Fire Agreement.doc C1-19 • � I �J Attachment 4 Page 5 of 6 1. Allow for mentoring and conflict resolution Station bid adjustments by Fire Department Administration shall be accompanied by written justification as to the perceived need. After initial placement, movement of personnel shall be for a maximum period of six months. At the end of this six-month period, the effected personnel shall return to their station of choice. Reasons for moves for more than six months or for permanent relocation need to be in writing. Except in extraordinary circumstances no movement of personnel will be initiated during the months of November and December. When movement of personnel is initiated by the Department and is not due to any fault of the individual(s), the Department will honor all approved time off requests. G. Issue Resolution Committee: Intent:. The intent of the Issue Resolution Committee is two fold: First, is to deal with the larger issue of how the program works. Does the process work; are we able to meet the goals of the program and the department? Second; are both labor and management needs being addressed fairly and equitably. Committee membership: The Issue Resolution Committee (IRC) will consist of two members from management. The President of Local 3523 will appoint two members from the employee's bargaining unit. A fifth member will be chosen by the above four members. The Fire Chief or the labor President can substitute the members from management and labor, respectively, for cause. Issue Resolution: Local 3523, through their Board of Directors, or Fire Department Administration, through the Fire Chief, can bring issues to the Committee. The IRC will convene within five business days of receipt of an issue of concern or a question of process. Issues will be decided based on the information presented to the committee. Issues or questions will be considered resolved by a vote of 4 out of 5 committee members.. The IRC will review the overall program as it relates to program and G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_10\Fire Agreement.doc C1-20 Attachment 4 Page 6 of 6 department goals annually or as needed. Unresolved issues will be taken to the next contract negotiations as a negotiable issue. The IRC will attempt to resolve issues of a personal nature; i.e. station placement, or an interpretation of the process, as they come up. If the committee cannot resolve an issue, the Fire Chief will resolve the issue. By mutual agreement of Local 3523 and Fire Department Administration, this program can be discontinued at any time. All committee members performing the duties of this committee while off duty will be compensated (at straight time), hour for hour. V. ARTICLE 50, TERM OF AGREEMENT The agreement shall become effective as of January 1, 2011 and continue in full force and effect until expiration at midnight, December 31, 2011. All terms and conditions of the 2006-09 Memorandum of Agreement not specifically modified herein shall remain in effect for the term of the agreement as specified above. CITY OF SAN LUIS OBISPO FIREFIGHTERS, LOCAL 3523 Katie Lichtig Erik Baskin City Manager President Monica Irons Mike King Director of Human Resources Vice President Date Date G:\Council\Agenda reports\201 0\201 1 Labor Agreements 11_16_1 O\Fire Agreement.doc C1-21 council memoRanbum DATE: November 16, 2010 RECEIVED TO: City Council NOV 16 2010 FROM: Monica Irons, Human Resourc s it cto VIA: Katie Lichtig, City Manager SLO CITY CLERK SUBJECT: Special Meeting Item C 1 — E plo Agreements I was notified this morning by the San Luis Obispo City Employees' Association (SLOCEA) President, Ron Faria, that SLOCEA voted to accept the Third Amendment to the January 1, 2006 — December 31, 2009 SLOCEA Memorandum of Agreement. At the time of writing the agenda report the Amendment to the Agreement was tentative, subject to the approval of SLOCEA membership. Mr. Faria's communication to me provides the necessary confirmation for the City Manager to enter into the agreement, if approved by Council this evening. hod emall: o COUNCIL a CDD DIR RED FILE ° CrrY MGR °FIT DIR p ASST C I a FM CMF MEETING AGENDA ° CLU °FwDDi o CI,ERKlORIG o POLICECIGFF DATE i& n ITEM # C V M aPMa TR a FARBStRECDIR o MUNE o VI1LDiR O NEWTUM OMOIR 0 SLOaNNEWS OCOUNCE. e arY MGR O CLERK Page 1 of 3 Chippendale, SueD�IALyj/r/� From: Irons, Monica Sent: Thursday, November 18, 2010 8:47 AM To: Cano, Elaina; Chippendale, Sue Cc: Dietrick, Christine Subject: FW: Cafeteria Plan Contribution#s/Management Resolution Attachments: Management Fringe Benefits 2011 corrected.doc Hi Elaina and Sue—we discovered a mistake on the Exhibit that goes along with the management resolution. As you can see below Christine will notify council and Katie is OK with that. Attached is the corrected version which I've called"corrected"to avoid further confusion. Let me know if you have questions. From: Lichtig, Katie Sent: Wednesday, November 17, 2010 6:42 PM To: Irons, Monica Cc: Dietrick, Christine Subject: RE: Cafeteria Plan Contribution #s/Management Resolution I appreciate that we figured it out before moving forward and yes I am OK with making the correction and notifying relevant parties. Are there any preventive measures we can put in place? Katie E. Lichtig City Manager City of San Luis Obispo, CA 990 Palm Street San Luis Obispo, CA 93401-3249 805-781-7114 www.slocity.org From: Irons, Monica Sent: Wednesday, November 17, 2010 6:39 PM To: Lichtig, Katie Cc: Dietrick, Christine Subject: FW: Cafeteria Plan Contribution #s/Management Resolution Importance: High Hi Katie—thankfully Sallie caught this error today. I talked with Christine about it and we feel like this is honestly a clerical error and Christine said she would typically send an email to council alerting them to it and notifying them that we are making the change. I would then send a message to all of the management group letting them know as well.. Here is what happened: Amount in Exhibit A of Mgt Reso Correct Amount Employee Only $ 469 $ 469 Employee+1 $ 938 $ 928 Family $1,254 $1,255 11/18/2010 Page 2 of 3 C" Given that the reso language clearly states"no change"and the exhibit language states the amounts will be the same as in 2010 and the amounts are not, I am confident it was a clerical error. Please confirm that you are OK with this and we will move forward with notifying council and correcting tomorrow. Sorry... From: McAndrew, Sallie Sent: Wednesday, November 17, 2010.3:02'PM To: Irons, Monica Cc: Malicoat, Debbie Subject: Cafeteria Plan Contribution #s/Management Resolution Monica, I just had a chance to review the documents on the employee agreements and noticed that the"Employee+ 1" and "Employee+ Family" amounts(on Page 3 of the Management Fringe Benefits 2011 document) are incorrect. The amounts should be$928 and $1255 (the same as on the SLOCEA document). Sallie - Information from ESET NOD32 Antivirus, version of virus signature database 5627 (20101117) The message was checked by ESET NOD32 Antivirus. hitp://www.eset.com Information from ESET NOD32 Antivirus, version of virus signature database 5627 (20101117) The message was checked by ESET NOD32 Antivirus. http://www.eset.com Information from ESET NOD32 Antivirus, version of virus signature database 5630 (20101118) The message was checked by ESET NOD32 Antivirus. http://www.eset.com Information from ESET NOD32 Antivirus, version of virus signature database 5630 (20101118) The message was checked by ESET NOD32 Antivirus. http://www.eset.com 11/18/2010 `Attachment 1, EXHIBIT "A" Page 3 of 8 MANAGEMENT FRINGE BENEFITS 2011 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, $108 per month for active employees and $97.20 for retirees as of January 1, 2011. The City's contribution toward retirees shall be increased by 5% per year of the City's contribution for the active employees until such time as contributions for employees and retirees are equal. 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 with proof of medical insurance elsewhere my elect to opt out of the City's medical plan and receive a $200 cafeteria contribution. Employees who opted out of the City's medical insurance coverage and were hired prior to September 1, 2008 were "grandfathered" in at the $790 per month contribution level, until that time when they elected to be covered under the tiered contribution structure. An employee elects to be covered under the tiered contribution Resolution No. (2010 Res) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 8 of 8 structure when he or she enrolls as an employee only or with dependents (employee plus one or family). At that time the employee would no longer be grandfathered in at the $790 per month contribution,but would receive the tiered contribution amount. Employees hired prior to September 1, 2008 that had employee only medical insurance coverage were "grandfathered" in at the $790 per month contribution level, until such time when they added dependents or opted out. At that time the employee would no longer be grandfathered in at the$790 per month contribution,but would receive the tiered contribution amount. 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 benefit $5,500 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 (Ca1PERS) 2.7% at 55 plan to all eligible employees 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 benefits as sworn personnel in their departments. The City agrees to pay the employee's contribution to Ca1PERS (8% for miscellaneous, 9% for safety). These amounts paid by the City are employee contributions and are paid by the City to satisfy the employee's obligation to contribute the current percentage of salary to CaIPERS. An employee has no option to receive the contributed amounts directly instead of having them paid by the City to Ca1PERS on behalf of the employee. It is further understood and agreed that the payment of the• employee's Ca1PERS contribution is made subject to I.R.S. approval and reporting procedures. C:\Documents and Settings\schippen\Local Settings\Temporary Internet Files\OLK9B\Management Fringe Benefits 2011 corrected (2).doc Resolution No. (2010 Senes) tittachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 8 of 8 The City shall report as salary all Employer-Paid Member Contributions (EPMC) to Ca1PERS for the purposes of retirement credit in accordance with Government Code Section 20636 (c) (4). 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 Retiree Medical Trust Management employees participate in the San Luis Obispo Employees Retiree Medical Trust. This trust aims to provide for health insurance and other medical expense reimbursements to San Luis Obispo City Employees Association (SLOCEA) and management employees after retirement. The Trust is administered separately by SLOCEA and a Board of Trustees. The City is not involved with the establishment or administration of the Trust. Included in the funding for the Trust will be amounts designated by SLOCEA to be deducted from each employees' paycheck. The City's sole responsibility is to forward the designated amounts to the Trust. The employee contribution is currently $100 per month and $6.50 per month to SLOCEA for administration of the Trust. Details of the Trust are found in the Trust Agreement Governing the San Luis Obispo Employees Retiree Medical Trust dated July 1, 2004. Appointed officials and public safety chiefs have opted not to participate in the Retiree Medical Trust. Section G Pay 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 H 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 a two-month extension C:\Documents and Settings\schippen\Local Settings\Temporary Internet Files\OLK9B\Management Fringe Benefits 2011 corrected (2).doc Resolution No. (2010 Se es) -Attachment 1, EXHIBIT"A" Management Fringe Benefits 2011 Page 8 of 8 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 a two-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. Section I Administrative Leave Department heads and appointed officials shall be granted 80 hours of administrative leave per calendar year. Department heads shall have the option of taking such leave as additional paid leave or receiving cash for up to 80 hours at year end upon approval of the City Manager. For the 2011 calendar year, the cash out provision for department head administrative leave is suspended. Management employees shall be granted up to 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. 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 J 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. C:\Documents and Settings\schippen\Local Settings\Temporary Internet Files\OLK9B\Management Fringe Benefits 2011 corrected (2).doc i Resolution No. (2010 Senes) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 8 of 8 Section K Sick Leave Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 16 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 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 1,280 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 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 L 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 M 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 C:\Documents and Settings\schippen\Local Settings\Temporary Internet Files\OLK9B\1\4anagement Fringe Benefits 2011 corrected (2).doc Resolution No. (2010 Series) Attachment 1, EXHIBIT "A" Management Fringe Benefits 2011 Page 8 of 8 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 N Uniform Allowance Employees who are required to wear a uniform, including the Fire Chief, Fire Marshal and Police Chief, shall receive the same uniform allowance as those they directly supervise. Section O 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. C:\Documents and Settings\schippen\Local Settings\Temporary Internet Files\OLK9B\Management Fringe Benefits 2011 corrected (2).doc