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HomeMy WebLinkAboutR-10650 Management compensation for appointed officials, department heads, and mgt employees and superseding previous resolutions in conflictRESOLUTION NO. 10650 (2015 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, 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 providing high quality service to the community and recognize the City's commitment to fiscal responsibility; 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 City Council is committed to providing competitive compensation as provided in the City's adopted Compensation Philosophy; NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby revises management compensation as follows: SECTION 1. The City agrees to increase the salaries of unrepresented management employees with a 2% cost of living (COLA) effective the first full pay period in January 2015 and a 2% COLA effective the first full pay period in January 2016. SECTION 2. The City shall continue to provide employees certain benefits as set forth in Exhibit "A ", fully incorporated by reference. SECTION 3. The City agrees to implementation of market equity adjustments for specified classifications as set forth in Exhibit "B ", fully incorporated by reference. SECTION 4. The Director of Finance and Information Technology shall adjust the appropriate accounts to reflect the compensation changes. SECTION 5. This resolution shall be in effect from January 1, 2015 through December 31, 2016. Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Christianson, and on the following roll call vote: AYES: Council Members Carpenter, Christianson, and Rivoire, Vice Mayor Ashbaugh, and Mayor Marx NOES: None ABSENT: None R 10650 Resolution No. 10650 The foregoing resolution was adopted this 7th day of July, 2015, — K-1- Mayor J arx ATTEST: APPROVED AS TO FORM: C Dietrick City Attorney Page 2 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day of 4i , 20 %S Resolution No. 10650 Page 3 EXHIBIT A MANAGEMENT BENEFITS SUMMARY 2015 - 2016 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) at the PERS minimum contribution rates, currently $122.00 per month for active employees and retirees. 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 are as follows: Opt -Out $200 monthly Employee Only $469 monthly Employee + 1 $928 monthly Employee + Family $1255 monthly "Grandfathered" $790 monthly Effective December 2015 (for the January 2016 premium) and effective December 2016 (for the January 2017 premium) the City's total Cafeteria Plan contribution shall be modified by an amount equal to one -half of the average percentage increase for family coverage in the PERS health plans available in San Luis Obispo County. For example: if three plans were available and the year -to -year changes were +10 %, +15 %, and +20% respectively, the City's contribution would be increased by 7.5% (10% + 15% + 20% - 3 = 15% x 1/2). Resolution No. 10650 Page 4 EXHIBIT A 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. 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 $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 Employees hired before December 6, 2012 The City agrees to provide the Public Employees' Retirement System's 2.7% at age 55 plan to all eligible employees including the amendments permitting conversion of unused sick leave to additional retirement credit, the 1959 survivor's benefit (4`h level), one year final compensation, the Military Service Credit option, and the Pre - Retirement Option 2 Death Benefit. Effective the first full pay period in January 2012, employees covered by the 2.7% at 55 plan will pay the full eight percent member contribution to PERS. The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. "Classic Members" hired on or after December 6, 2012 For "Classic Members" hired on or after December 6, 2012, the City will provide the PERS 2% at 60 retirement plan using the highest three year average as final compensation. The second tier formula will include the following amendments: conversion of unused sick leave to additional Resolution No. 10650 Page 5 EXHIBIT A retirement credit, the 1959 survivor's benefit (4`h level), the Military Service Credit option, and the Pre - Retirement Option 2 Death Benefit. Employees hired under this plan will pay the full member contribution required under the plan, presently seven percent (7 %). Ca1PERS determines who is a "classic member" within the meaning of the California Public Employees' Pension Reform Act (PEPRA). The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. New Members For all employees who CalPERS determines are "new members" within the meaning of the PEPRA, the City will provide the PERS 2% at 62 retirement plan using the highest three year average as final compensation. Effective upon their date of hire, new members will pay 50% of the total normal cost of the member contribution, as determined by Ca1PERS. The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. 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 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 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. Resolution No. 10650 Page 6 EXHIBIT A 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. 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. Resolution No. 10650 EXHIBIT A Section J Sick Leave Page 7 Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 48 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, Labor Code 233 and Assembly Bill 1522. This may be extended to 56 hours if a household family member is hospitalized and the employee submits written verification of such hospitalization. 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 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' Corn ep nsati+on 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 Assimment 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. Resolution No. 10650 EXHIBIT A Section M Uniform Allowance Page 8 For employees required to wear a uniform, including the Fire Chief, Deputy Fire Chief, Fire Marshal and Police Chief, shall receive the same uniform allowance as those they directly supervise. Section N Appointed Officials The benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. Resolution No. 10650 EXHIBIT B Unrepresented Employee Classifications PrnnncPd Ransrp l'lriiuctmPntc Fffprtivp liily 7ni S Title CITY BIOLOGIST Adjustment Range 5.0% ENVIRON. PROGRAMS MGR 5.0% HUMAN RESOURCES MGR 5.0% PRINCIPAL ADM ANALYST 5.0% WASTEWATER COLLECT SUPER 5.0% WATER DISTRIBUTION SUPER 5.0% WHALE RCK RESERVOIR SUPER 5.0% NETWORK SVCS SUPERVISOR 5.0% UTILITIES BUSINESS MGR 5.0% WATER TRT PLNT SUPER 5.0% WRRF PLANT SUPERVISOR 5.0% *DEPARTMENT HEADS 5.0% DEPUTY FIRE CHIEF 6.0% DEPUTY DIRECTORS 7.0% FINANCE OPERATIONS MANAGER 7.0% FIRE MARSHAL 7.0% DEPUTY DIRECTOR -PW /CITY ENGINEER 7.0% FIRE CHIEF 10.0% BUDGET MANAGER 10.2% LABORATORY MANAGER 10.2% TRANSIT MANAGER 10.2% BLDG & SAFETY SUPERVISOR 10.3% G.I.S. SUPERVISOR 10.3% POLICE CHIEF 13.0% TRANSPORTATION OPER MGR 15.7% *Single Salary Range for all Department Heads (Except Police and Fire Chief) Page 9