HomeMy WebLinkAboutR-10649 Regarding compensation for the unrepresented confidential employees and superseding precious resolutions in conflictRESOLUTION NO. 10649 (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO,
CALIFORNIA, REGARDING COMPENSATION FOR THE
UNREPRESENTED CONFIDENTIAL EMPLOYEES AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City has designated the Human Resources Administrative Assistant,
Human Resources Specialist, and Legal Assistant /Paralegal as confidential employees pursuant to
the government code; and
WHEREAS, confidential employees are precluded from collective bargaining due to their
proximity to labor negotiations, and therefore are not governed by a collective bargaining
agreement,
WHEREAS, the confidential employees have demonstrated sensitivity to the fiscal
challenges facing the City by agreeing to no across the board salary increases (e.g. "cost of living"
increases) since January 2009; and
WHEREAS, the confidential employees remain committed to providing high quality
service to the citizens of San Luis Obispo in an efficient and effective manner;
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 unrepresented confidential employees compensation as follows:
SECTION 1. The City agrees to increase the salaries of confidential employees with a
2% cost of living adjustment (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 fringe benefits as set
forth in Exhibit "A ", fully incorporated by reference.
SECTION 3. The Director of Finance and hlformation Technology shall adjust the
appropriate accounts to reflect the compensation changes.
SECTION 4. This resolution shall be in effect from January 1, 2015 through
December 31, 2016.
R 10649
Resolution No. 10649
Page 2
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
The foregoing resolution was adopted this 7th day of July, 2015.
— (I qyo�'�
Mayor Ja arx
ATTEST:
APPROVED AS TO FORM:
J/Uhristine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this Z-0- day of v , Zo i s'
Resolution No. 10649 Page 3
EXHIBIT A
CONFIDENTIAL EMPLOYEES BENEFITS SUMMARY 2015 -2016
Section A Medical, Dental, Vision
The City shall establish and maintain medical, dental and vision insurance plans for confidential
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. 10649 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:
Long -term disability insurance providing 66 2/3% of gross salary (maximum benefit
$5, 000 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 $25,000 term life insurance, 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 June 27, 2013, employees covered by the 2.7% at 55 plan 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
retirement credit, the 1959 survivor's benefit (4`h level), the Military Service Credit option, and
Resolution No. 10649 Page 5
EXHIBIT A
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 Ca1PERS 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 CalPERS.
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 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.
Vacation schedules for confidential 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
confidential 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.
Confidential employees are eligible, once annually in December, to request payment for up to 40
hours of unused vacation provided that an employee's overall performance and attendance
practices are satisfactory.
Section F Administrative Leave
Confidential employees shall be granted 12 hours of administrative leave per calendar year.
Administrative leave hours shall be pro -rated when a confidential 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.
Resolution No. 10649
EXHIBIT A
Section G Holidays
Page 6
Confidential employees shall receive 11 fixed plus 2 floating holidays per year. The floating
holidays shall be accrued on a semi - monthly basis and added to the vacation accrual.
Section H Sick Leave
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, confidential 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 Ca1PERS benefits:
(1)
After ten years of continuous employment — 10%
(2)
After twenty years of continuous employment — 15%
(3)
After twenty -five years of continuous employment — 20%
(4)
After thirty years of continuous employment — 25%
Section I Workers' Compensation Leave
An employee who is absent from duty because of an 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.