HomeMy WebLinkAbout04-04-2017 Item 03, Adjustments to the Compensation of the Unrepresented Management Employees Meeting Date: 4/4/2017
FROM: Monica Irons, Director of Human Resources
Prepared By: Nickole Sutter, Human Resources Analyst II
SUBJECT: ADJUSTMENTS TO THE COMPENSATION OF THE UNREPRESENTED
MANAGEMENT EMPLOYEES
RECOMMENDATION
Adopt a resolution (Attachment A) with a one and one-half year term (January 1, 2017 to June
30, 2018) adjusting the compensation of the Unrepresented Management Employees.
DISCUSSION
Background
The unrepresented management group includes 93 employees: two appointed officials, nine
department heads, and 82 other management employees. These are professional-level
employees, exempt from the overtime provisions of the Federal Labor Standards Act (FLSA),
including first-line supervisors, program managers, senior planners and engineers, analysts, and
other professionals. The unrepresented management employees’ compensation and benefits is
set by resolution adopted by Council and the Resolution expired on December 31, 2016. At the
expiration of a resolution, the terms and conditions remain the same until a subsequent resolution
is adopted.
In September 2014, Council adopted Labor Relations Objectives (LROs) that provided guidance
and high-level direction for negotiations with all employee groups including discussions with
unrepresented employees. The LROs, outlined below, balance recruitment and retention of well-
qualified employees with fiscal responsibility:
1. Maintain fiscal responsibility by ensuring that fair and responsible employee
compensation expenditures are supported by on-going revenues.
2. Continue to make progress in the area of long-term systemic pension cost containment
and reduction, including reversing the unfunded pension liability trend and other actions
consistent with State law.
3. Continue to effectively manage escalating health benefit costs through balanced cost
sharing and other means while maintaining comprehensive health care coverage for all
eligible employees.
4. As necessary to attract and retain well-qualified employees at all levels of the
organization, provide competitive compensation as articulated in the City’s
Compensation Philosophy.
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Framing the Recommendation
Management employees are unrepresented which means there are no formal negotiations, as
there are for other regular employees. The group met in November and again in Januar y (due to
holidays and schedules) to form a recommendation consistent with Council’s adopted Labor
Relations Objectives, parity with compensation movement in other labor groups within the City
during the same timeframe, cost of living, and available financial resources. The CPI for the San
Francisco-Oakland-San Jose area has experienced an average increase of 2.7% per year over the
past five years. Similarly, comparison agencies indicate negotiating COLAs in the range of 2%
to 4% with 2.5% being the median COLA for 2016-17. All of the City’s represented groups
have current agreements with an average of 2% COLA per year. The City’s typical approach in
this context would be to make compensation recommendations that achieve parity of the
Management group with the City’s represented employees.
However, given the activation of the Fiscal Health Contingency Plan in February, following
preliminary analysis of the financial impacts of the CalPERS decision to reduce the discount rate
or assumed rate of return, staff researched options consistent with the current and anticipated
financial forecast. Options focused on minimizing long-term financial impacts that may be
magnified by anticipated CalPERS increases, while addressing an inequity in the City health
contribution between the management group and the employees they supervise, who are
primarily represented by the San Luis Obispo City Employees Association (SLOCEA). The
recommendation outlined below freezes the salary ranges of all management classifications and
freezes the salary for almost half of the 93 employees in this group for the term of the resolution.
Instead of providing a COLA that would increase salary and retirement costs, a one-time lump-
sum payment is included to acknowledge and incentivize the hard work, leadership, and disparity
in health contributions between unrepresented managers and SLOCEA employees. Discussions
with the unrepresented management staff throughout the process were collaborative, cooperative,
and supportive of Council objectives.
Management Resolution
The following is a summary of the key changes included in the Resolution:
Term of Resolution- One and one-half year term (January 1, 2017 – June 30, 2018) to align with
the 2018-19 fiscal year and with the expiration dates of the San Luis Obispo Employees
Association (SLOCEA) and Police Officers Association (POA) Memorandum of Agreements.
One-Time Lump Sum Payment- Provide a one-time lump sum payment of $2,000 (less
applicable taxes) to the Unrepresented Management employees who are employed by the City as
of the effective date of the Resolution (Attachment A). The lump sum payment is to offset the
disparity between the City contribution to health insurance for the management group versus that
of SLOCEA (which has been lower since January 2015). The lump sum will be provided in a
manner that CalPERS does not consider special compensation and will avoid escalation in PERS
costs.
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Health Contribution- Effective the first payroll following Council adoption, increase City healt h
insurance contribution by approximately 5% to match contributions provided to SLOCEA.
Maintain the current cost-sharing model that increases the City-contribution by 50% of the
average percent increase in CalPERS medical premiums in December 2017 for 2018 premium
increases. Discontinue cash back for employees electing coverage in the City’s health plan,
ensuring compliance with the Affordable Care Act and consistency with SLOCEA and Fire.
Life Insurance- Increase City provided term life insurance for management employees from
$50,000 to $100,000, consistent with the benefit provided to appointed officials and department
heads.
Sick Leave- Allow accrued sick leave to be used to care for a family member when on a
designated protected leave (i.e. Family Medical Leave Act or California Family Rights Act).
The current cap for sick leave usage for a family member is 48 hours (or 56 hours if the family
member is hospitalized and lives in the same household). Allowing employees to use more sick
leave to care for a family member is not an additional cost for the City but may help with
recruitment and retention and will potentially be a savings at retirement as employees can
convert all accrued sick leave to service credit for retirement purposes. If an employee has used
previously accrued sick leave to care for a family member, there will be less sick leave converted
which will avoid additional retirement costs.
The proposed adjustments to unrepresented management compensation recognize the continued
leadership of this group and makes minor modifications to benefits that are low cost, but
important to the unrepresented management group, especially in light of increasing workload
volumes and this group’s exemption from overtime compensation. The health contribution
becomes aligned with the contribution SLOCEA employees receive, meaning those employees
who promote into management roles would no longer see a reduction in compensation. Further,
increasing the life insurance and providing more flexibility to use sick leave addresses needs of
this group to assist in balancing professional and personal needs. However, the proposed
adjustments, specifically, not providing a COLA in line with COLAs provided to other
represented employees groups, creates internal parity issues as management salaries remain
unchanged, while salaries of the employees they supervise continue to rise during the next year.
Future consideration will need to be given to potential succession planning, management
workforce reliability and promotion disincentive impacts of this issue.
FISCAL IMPACT
There is a one-time cost in 2016-17 in the amount of $186,000. The cumulative annual ongoing
total compensation cost after all items are implemented is approximately $65,000. Funding is
available in the current 2015-17 Financial Plan for cost increases resulting during that timeframe
and subsequent costs are modeled in the Five-Year Fiscal Forecast.
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ALTERNATIVES
1. Do not approve recommended changes to the resolution. Instead, adopt a resolution that
continues unrepresented employee compensation without changes. This alternative is not
recommended as the resolution is in line with previous Council direction.
2. Do not approve the one-time lump sum and instead adopt a resolution that includes a 2%
COLA for all unrepresented managers. The cost in 2017-18 would be approximately
$268,000 for the COLA and increasing into the future as PERS rates increase. This is not
recommended as it is not in line with the Fiscal Health Contingency Plan.
Attachments:
a - Management Resolution 2017
b - Exhibit A-Management 2017 - Legislative draft
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R ______
RESOLUTION NO. (2017 Series)
A RESOLUTION OF THE CITY 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 unrepresented management employees have demonstrated sensitivity to
the fiscal challenges facing the City and agree to no across the board salary increases (e.g. “cost
of living” increases) for the term of this resolution; and
WHEREAS, the City Council is committed to providing competitive compensation as
provided in the City’s adopted Compensation Philosophy.
WHEREAS, the City Council has the exclusive authority to fix the salaries and
compensation of local officials and employees pursuant San Luis Obispo Charter Section 711.
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby revises unrepresented management compensation as follows:
SECTION 1. The City agrees to provide a $2,000 one-time, lump sum payment to each
unrepresented management employee employed with the City as of the effective date of this
resolution as a means to recognize that management employees have received a lower health
insurance contribution than other bargaining groups (specifically San Luis Obispo City
Employees Association, the primary group supervised by management) since January 2015.
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 shall adjust the appropriate accounts to reflect the
compensation changes.
SECTION 4. This resolution shall be in effect from January 1, 2017 through June 30,
2018.
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Resolution No. _____ (2017 Series) Page 2
R ______
Upon motion of _______________________, seconded by ___________________, and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 4th day of April, 2017.
___________________________________
Mayor Heidi Harmon
ATTEST:
__________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
__________________________________
J. Christine 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 ______ day of ______________, 2017.
____________________________________
Carrie Gallagher
City Clerk
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EXHIBIT “A”
Page 1 of 9
MANAGEMENT BENEFITS SUMMARY 2015 -– 20162017 - 2018
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.
PERS Health Benefit Program
The City has elected to participate in the PERS Health Benefit Program. The City shall
contribute an equal amount towards the cost of medical coverage under the Public Employee’s
Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City’s
contribution toward coverage under PEMHCA shall be the statutory minimum contribution
amount established by CalPERS on an annual basis. The City's contribution will come out of
that amount the City currently contributes to employees as part of the City’s Cafeteria Plan. The
cost of the City's participation in PERS will not require the City to expend additional funds
toward health insurance. In summary, this cost and any increases will be borne by the
employees.
Health Insurance Benefits for Domestic Partners
The City has adopted a resolution electing to provide health insurance benefits to domestic
partners (Section 22873 of the PEMHCA).
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.
Conditional Opt Out
Employees who at initial enrollment or during the annual open enrollment period, complete an
affidavit and provide proof of other minimum essential coverage for themselves and their
qualified dependents (tax family) that is not a qualified health plan coverage under an
exchange/marketplace or an individual plan, will be allowed to waive medical coverage for
themselves and their qualified dependents (tax family).
The monthly conditional opt-out incentives are:
Opt Out $200
“Grandfathered” Opt Out $790 (hired before September 1, 2008)
The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The
employee must notify the City within 30 days of the loss of other minimum essential coverage.
The conditional opt-out payment shall no longer be payable, if the employee and family
members cease to be enrolled in other minimum essential coverage. Employees receiving the
conditional opt-out amount will also 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 Employee's Contingency Reserve Fund and
the Administrative Costs. However, there is no requirement that these funds be used ex clusively
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 2 of 9
for this purpose nor any guarantee that they will be sufficient to fund retiree health costs,
although they will be used for negotiated employee benefits.
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.
Dental and Vision Insurance/Dependent Coverage
Effective March 23, 2017, employee participation in the City's dental and vision plans is
optional. Employees who elect coverage shall pay the dental and/or eye premium by payroll
deductions on a pre-tax basis through the City’s Cafeteria Plan. 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 ContributionHealth Flex Allowance
Employees electing medical coverage in the City’s plans shall receive a health flex allowance, as
defined by the Affordable Care Act (“ACA”), and shall purchase such coverage through the
City’s Cafeteria Plan. If the health flex allowance is less than the cost of the medical plan, the
employee shall have the opportunity to pay the difference between the health flex allowance and
the premium cost on a pre-tax basis through the City’s Cafeteria Plan. Effective December 2017
(for January 2018 premiums), iIf the premium cost for medical coverage is less than the health
flex allowance, the employee shall not receive any unused health flex in the form of cash or
purchase additional benefits under the Cafeteria Plan.
Effective the first full pay period following the adoption of this resolution, the monthly health
flex allowance amountThe City’s contribution to the Cafeteria Plan for regular, full-time
employees are as followswill increase as outlined below:
Level of Coverage
*with no cash back option effective Dec
2017
Current Monthly
Rates
Monthly Rates Upon
Council Adoption
Employee Only $514 $539
Employee Only “Grandfathered” $790 $790
Employee Plus One $1,017 $1,066
Family $1,375 $1,442
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 3 of 9
Opt-Out $200 monthly
Employee Only $469 monthly
Employee + 1 $928 monthly
Employee + Family $1255 monthly
“Grandfathered” $790 monthly
Employees hired prior to September 1, 2008 that are grandfathered in and elect employee only
medical coverage will receive the health flex allowance listed above for employee only
“grandfathered” coverage. As of January 1, 2015, if an employee that is receiving Employee
Only or Opt Out “Grandfathered” coverage changes their level of coverage, they will be eligible
to return to the grandfathered coverage in a future year. Effective December 2017 (for January
2018 premiums), if the premium cost for medical coverage is less than the health flex allowance,
the employee shall no longer receive any unused health flex in the form of cash.
Effective December 20175 (for the January 2016 premium) and effective December 2016 (for
the January 20178 premium) the City’s total Cafeteria Planhealth flex allowance for group
medical coverage 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).
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 planhealth flex allowance for two (2)
pay periods in the event that an employee has exhausted all paid time off and leave approved under
the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act
(CFRA) due to an employee's catastrophic illness. That is, the employee shall receive regular City
health flex allowance for the first two (2) pay periods following the pay period in which the
employee’s accrued leave balances reach zero (0) and FMLA/CFRA benefits have been exhausted.
Section C Life and Disability Insurance
The City shall provide the following special insurance benefits in recognition of management
responsibilities:
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 4 of 9
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 emplo yee, the City
provides 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 through the City’s Cafeteria Plan.
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 retirement
plan to all non-sworn eligible employees and the 3% at 50 retirement plan to all sworn
employees. The 2.7% at 55 plan includes the following amendments: 1959 Survivor’s Benefit –
Level Four, conversion of unused sick leave to additional retirement credit, one-year final
compensation, Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
including the amendments permitting conversion of unused sick leave to additional retirement
credit, the 1959 survivor's benefit (4th level), one year final compensation, the Military Service
Credit option, and the Pre-Retirement Option 2 Death Benefit. The 3% at age 50 plan includes
the following amendments: Post-Retirement Survivor Allowance, conversion of unused sick
leave credit to additional retirement credit, 1959 Survivor’s Benefit- Level Four, one-year final
compensation, Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
Non-sworn employees pay the full eight percent (8%) and sworn employees pay the full nine
(9%) member contribution to PERS. 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
CalPERS determines who is a “Classic Member” within the meaning of the California Public
Employees’ Pension Reform Act (PEPRA).
For non-sworn “Classic Members” hired on or after December 6, 2012, the City will provide the
PERS 2% at 60 retirement plan for non-sworn employees using the highest three-year average as
final compensation. The second tier formula for non-sworn employees will include the
following amendments: 1959 Survivor’s Benefit – Level Four, conversion of unused sick leave
to additional retirement credit, Military Service Credit, and Pre-Retirement Optional Settlement
2 Death Benefit. conversion of unused sick leave to additional retirement credit, the 1959
survivor's benefit (4th 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%).
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 5 of 9
For sworn “Classic Members” hired on or after December 6, 2012, the City will provide the
PERS 3% at 55 retirement plan for sworn Fire employees and 2% at 50 retirement plan for sworn
Police employees using the highest three-year average as final compensation. The second tier
formula for sworn employees will include the following amendments: Post Retirement Survivor
Allowance, conversion of unused sick leave to additional retirement credit, the 1959 Survivor’s
Benefit – Level Four, Military Service Credit, and Pre-Retirement Optional Settlement 2 Death
Benefit. Employees hired under these plans will pay the full member contribution required
under the plan, presently eight percent (8%).
CalPERS 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 for non-sworn employees and
2.7% at 57 retirement plan for sworn employees, 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 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 iscan be found in the Management Pay for
Performance System Guide.
Section G Vacation
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 6 of 9
Vacation leave is governed by Ssection 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 or earlier
with department head authorization. Each management employee shall accrue vacation leave
with the pay at the rate of 12 days (96 hours) per year for the first five years of continuous
service, 15 days (120 hours) per year upon completion of five years, 18 days (144 hours) per
year upon completion of ten years, and 20 days (160 hours) upon completion of twenty years.
Department Heads accrue vacation leave with pay starting at 15 days (120 hours) per year for the
first ten years of continuous service, and at the same accrual rate as provided for management
employees beyond ten years of continuous service.
Vacation leave shall be accrued as earned each payroll periodsemi-monthly provided that not
more than twice the annual rate (not including floating holiday leave) may be carried over to a
new calendar year.
However, if the City Manager determines that a department head has been unable to take
vacation due to the press of City business, the City Manager may approve up to a six-month
extension of maximum vacation accrual. The City Manager may, within two years of appointing
a department head, increase the rate of vacation accrual to a maximum of 120 hours per year.
Vacation schedules for management employees shall be based upon the needs of the City and
then, insofar as possible, upon the wishes of the employee. A department head may not deny a
management employee’s vacation request if such denial will result in the loss of vacation accrual
by the employee, except that, a department head may approve up to a six-month extension of
maximum vacation accrual. However, in no event shall more than one such extension be granted
in any calendar year.
Department Head and management employees are eligible, once annually in December, to
request payment for up to 40 hours of unused vacation leave provided that an employee’s overall
performance and attendance practices are satisfactory.
Section H Administrative Leave
Department heads and appointed officials shall be granted 80 hours of administrative leave the
first full pay period in Januaryper calendar year.
Management employees shall be granted 48 hours of administrative leave per calendar yearthe
first full pay period in January.
Administrative leave hours shall be pro-rated on a monthly basis 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. Unused administration leave
will not be carried over year to year but can be taken through the pay period that December 31st
falls within.
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 7 of 9
Department Heads and Management employeesrs 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 eleven (11) fixed plus two (2)
floating holidays per year. The following days of each year are designated as paid holidays:
January 1 – New Year’s Day
Third Monday in January – Martin Luther King Jr. Birthday
Third Monday in February – Presidents’ Day
Last Monday in May – Memorial Day
July 4 – Independence Day
First Monday in September – Labor Day
November 11 – Veteran’s Day
Fourth Thursday in November – Thanksgiving Day
Friday after Thanksgiving
December 25 – Christmas
One half day before Christmas
One half day before New Year’s Day
When a holiday falls on a Saturday, the preceding Friday shall be observed. When a holiday
falls on a Sunday, the following Monday shall be observed. A holiday shall be defined as eight
(8) hours of paid time off for regular full time employees.
When Christmas or New Year’s Holiday falls on a Tuesday or Thursday, the City reserves the
right to close non-essential City services and offices on Monday or Friday (the day adjacent to
the observed holiday). Essential City services are determined at the discretion of the Department
Head. Employees scheduled to work in non-essential functions on the days adjacent to the paid
holidays would be required to use appropriate personal leave. The City would notify employees
of closure of non-essential City services and offices no later than October 31st of the same year in
order to provide employees with ample time to plan accordingly.
Department heads and management employees shall receive 11 fixed plus 2 floating holidays per
year. The two (2) floating holidays shall be accrued on a semi-monthly basis and added to the
vacation accrual.
Section J Sick Leave
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 8 of 9
Sick leave is governed by Ssection 2.36.420 of the Municipal Code. An employee shall accrue
sick leave with pay at the rate of twelve (12) days or the prorated shift equivalent per year of
continuous service since the benefit date. An employee may take up to 48 hours per calendar
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/or 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 (FMLA) and the California Family Rights Act (CFRA). In the event an
employee is caring for a family member and is covered under FMLA/CFRA, they will be able to
use all accrued sick leave to care for a family member.
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.
According to the following scheduleUpon termination of employment by death or retirement, a
percentage of the dollar value of the employee’s accumulated sick leave will may be paid to the
employee if the employee requests upon termination by retirement, or and will be paid to the
designated beneficiary or beneficiaries upon termination by death of the employee according to
the following schedule:
(A) Death – 25%
(B) Retirement and actual commencement of CalPERS benefits:
(1) After ten years of continuous employment – 10%
(2) After twenty years of continuous employment – 15%
Section K Workers’ Compensation Leave
An employee who is absent from duty because of on-the-job injury in accordance with State
workers’ compensation law and is not eligible for disability payments under Labor Code Section
4850 shall be paid the difference between his/her base salary and the amount provided by
workers’ compensation law during the first ninety (90) business days of such temporary
disability absence. Eligibility for workers’ compensation leave requires an open workers’
compensation claim.
Section L Work Out-of-Classification
An out-of-class assignment is the full-time performance of all the significant duties of an
available, funded position in one classification by an individual in a position of another
classification. An employee assigned in writing by management to work out -of-class in a
position that is assigned a higher pay range which is vacant pending an examination or is vacant
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Resolution No. (20175 Series) EXHIBIT “A”
Management Fringe Benefits 2015 – 20162017 - 2018
Page 9 of 9
due to an extended sick or disability leave, shall receive no less than five percent (5%), but in no
case more than the top salary of the higher range, in addition to their regular base rate
commencing on the eleventh consecutive workday of the out-of-class assignment.
Section M L Vehicle Assignment
For those department heads requiring the use of an automobile on a regular 24-hour basis to
perform their normal duties, the City will, at City option, provide a City vehicle or an appropriate
allowance for the employee’s use of a personal automobile. Department heads who are not
provided a City vehicle shall receive a car allowance of $236 per month.
The use of a personal automobile for City business will be eligible for mileage reimbursement in
accordance with standard City policy.
Section NM Uniform Allowance
For employees 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. For “Classic Members” as defined by PERS, uniform allowance shall be
reported to PERS as special compensation. Uniform allowance will not be pro-rated upon
separation from employment.
Section ON Appointed Officials
The benefits outlined in this exhibit for department heads apply to appointed officials, except
where they have been modified by council resolution.
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4/5/2017
Adjustments to Compensation for the
Unrepresented Management
Employees
Monica Irons, Human Resources Director
Nickole Sutter, Human Resources Analyst II
April 4, 2017
j Ali ,
Background
■ Unrepresented Employees
■ Represented Employee Cost of Living Adjustments
■ Fiscal Health Contingency Plan initiated February 21
Recommendation
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■ Adopt a resolution adjusting the compensation of the
Unrepresented Management Employees:
■ Term of Agreement: Jan. 1, 2017 — June 30, 2018
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■ One -Time Lump Sum Payment: $2,000
■ Health Insurance:
■ Match contribution provided to San Luis Obispo City
Employees Association (SLOCEA).
• Cost sharing in Dec 2017 for 2018 premiums
■ Life Insurance: Increase City provided term life
insurance from $50,000 to $100,000
Fiscal Impact
■ Five Year Fiscal Forecast
■ Modeled all increases
■ 2015 - 17 Financial Plan
■ Accounts for all compensation adjustments
4/5/2017
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4/5/2017