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HomeMy WebLinkAbout10-16-2018 Item 17 - Unrepresented Confidential Employee Compensation Meeting Date: 10/16/2018 FROM: Monica Irons, Director of Human Resources Prepared By: Nickole Sutter, Human Resources Analyst II SUBJECT: ADJUSTMENTS TO THE COMPENSATION OF THE UNREPRESENTED CONFIDENTIAL EMPLOYEES RECOMMENDATION Adopt a Resolution with a three-year term (July 1, 2018 through June 30, 2021) adjusting the compensation of the Unrepresented Confidential Employees (Attachment A & B). DISCUSSION The City’s Unrepresented Confidential group includes four employees in the Human Resources, Administration, and the Cit y Attorney’s Office. These employees are designated as unrepresented in accordance with Government Code 3507.5 and Employer -Employee Resolution 6620 because they are privy to information that affects employee relations and labor negotiations. The confide ntial employees’ compensation and benefits are established by resolution adopted by Council that expired on June 30, 2018. Confidential employees are unrepresented which means there are no formal negotiations, as there are for other regular employees in similar classifications. The Confidential employees continue to demonstrate sensitivity to the fiscal challenges facing the City and met once in September to form a recommendation consistent with Council’s adopted Labor Relations Objectives (LROs) (Attachment C) and the Fiscal Health Response Plan (FHRP). The FHRP, adopted by Council April 17, 2018, outlines actions during the next three fiscal years (2018 -19 through 2020-21) aimed at closing an approximate $8.9 million budget gap due to CalPERS discount rate reduction resulting in increasing retirement costs to agencies. The FHRP anticipates employee concessions (anticipated growth of employee wages and benefits at a rate less than inflation) equaling $1.9M by fiscal year 2020-21. The City’s focus and primary interests included achieving a three-year agreement that provides certainty around compensation costs during the FHRP term, increased employee contributions to retirement costs, and maintaining competitive wages and benefits to support recruitment and retention objectives. This successor resolution includes modest cost of living increases (COLAs), partially offset by employees paying more towards retirement costs, and is very similar to the unrepresented management resolution adopted by Council in July 2018. Key Components of Unrepresented Confidential Resolution The following is a summary of the key changes included in the Resolution: 1. Term of Resolution. July 1, 2018 to June 30, 2021 2. Cost of Living Adjustments. The COLAs are partially offset by employees paying more towards PERS retirement and are in line with the FHRP and Council’s LROs. • 2% COLA July 2019; Employee contribution to CalPERS increased by 1.5%. • 2% COLA July 2020; Employee contribution to CalPERS increased by an additional 1.5%. Packet Page 201 Item 17 3. CalPERS Retirement. As indicated in the table below, unrepresented confidential employees will pay three percent (3%) more towards retirement costs. By July 2020, confidential employees will be contributing between 56% and 74% of the total normal cost of retirement (the amount needed to ensure current contributions fully fund future benefits), exceeding the 50% requirement established for employees new to CalPERS by the Public Employees’ Pension Reform Act (PEPRA). 4. Health Insurance Cost-Sharing. Maintain the current cost-sharing arrangement that increases the City contribution by 50% of the average percent increase in CalPERS medical premiums (For example, if the average increase in CalPERS medical premiums increases ten percent, the City contribution would increase five percent, while employees absorb the remainder of the increased cost). ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQ A Guidelines sec. 15278. FISCAL IMPACT The cumulative ongoing cost to the City, after all items are implemented for the successor confidential resolution, is approximately $9,000 per year. The ongoing costs are modeled in the ten-year forecast, are sust ainable under the FHRP, and are consistent with Council adopted LROs. ALTERNATIVE Do not approve recommended changes to the resolution. Instead, adopt a resolution that continues unrepresented confidential employee compensation without changes. This alternative is not recommended as the resolution is in line with previous Council direction and is consistent with the Fiscal Health Response Plan. Attachments: a - Confidential Resolution 2018 b - Exhibit A to Attachment A (Legislative Draft) c - Labor Relations Objectives Employee Contribution Levels to PE RS Retirement (Percent of Salary) Miscellaneous PERS Tier July 2018 July 2019 July 2020 Tier 1 (2.7% @ 55) 8% 9.5% 11% Tier 2 (2% @ 60) 7% 8.5% 10% Tier 3 (2% @ 62) 6.25% 7.75% 9.25% Packet Page 202 Item 17 R ______ RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, REGARDING COMPENSATION FOR THE UNREPRESENTED CONFIDENTIAL EMPLOYEES AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City has designated the following classifications as confidential employees pursuant to the Government Code 3507.5 and Employer-Employee Resolution 6620: Administration Executive Assistant, Human Resources Administrative Assistant I, II, III, Human Resources Specialist , Legal Assistant, and Legal Assistant /Paralegal; 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 ; and WHEREAS, the unrepresented confidential employees have demonstrated sensitivity to the fiscal challenges facing the City and agree to a shared approach including modest salary increases partially offset by employees’ increased contributions towards retirement costs ; 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 unrepresented confidential compensation as follows: SECTION 1. The salaries of unrepresented confidential employees are hereby increased by a 2% cost of living adjustment effective the fir st full pay period in July 2019 and July 2020, respectively. Unrepresented confidential employees shall pay 3% more towards retirement costs as specified in Exhibit “A” by July 2020. 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. Packet Page 203 Item 17 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 4. This resolution shall be in effect from July 1, 2018 through June 30, 2021. Upon motion of ___________________________, seconded by ________________________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of October, 2018. ____________________________________ Mayor Heidi Harmon ATTEST: __________________________________ Teresa Purrington 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 ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Page 204 Item 17 Exhibit “A” Table of Contents Section A Medical, Dental, Vision ................................................................................ 1 Section B Health Flex Allowance ................................................................................. 2 Section C Life and Disability Insurance ........................................................................ 3 Section D Retirement ................................................................................................... 3 Section E Vacation....................................................................................................... 5 Section F Administrative Leave ................................................................................... 6 Section G Holidays ..................................................................................................... 67 Section H Sick Leave ................................................................................................. 78 Section I Workers’ Compensation Leave ................................................................... 8 Section J Overtime ................................................................................................... 89 Section K Work Out-of-Classification ....................................................................... 910 Packet Page 205 Item 17 EXHIBIT “A” Page 1 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. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Progr am. 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 th e 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 p rovide health insurance benefits to domestic partners (Section 22873 of the PEMHCA). 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 co verage 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 amount is $200. 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 exclusively 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. Packet Page 206 Item 17 EXHIBIT “A” Page 2 Dental and Vision Insurance/Dependent Coverage Effective March 23, 2017, eEmployee 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. Section B Health 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. If 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. The monthly health flex allowance amounts for regular, full -time employees are: Level of Coverage 2018 Monthly Health Flex Allowance Rates 2019 Monthly Health Flex Allowance Rates Employee Only $539 $550 Employee Plus One $1,066 $1,088 Family $1,442 $1,472 Effective December 20187 (for the January 20198 premium), December 2019 (for the January 2020 premium), and December 2020 (for the January 2021 premium), the City’s total health flex allowance for group medical coverage was will be modified by an amount equal to one-half of the average percentage increasechange 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%, +2015%, and -6+20% respectively, the City’s contribution would be increased by 47.5% (10% + 2015% + -620% ÷ 3 = 815% x 1/2). Less than full-time employees shall receive a prorated share of the City’s contribution. The City agrees to continue its contribution to the health 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. Packet Page 207 Item 17 EXHIBIT “A” Page 3 Section C Life and Disability Insurance The City shall provide the following special insurance benefits: 1. 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, the City provides $25,000 term life insurance, including $29,000 for accidental death and dismemberment through the City’s Cafeteria Plan. Section D Retirement A. PERS Contracts 1. “Classic Members First Tier” eEmployees hired before December 6, 2012. The City agrees to provide the Public Employees' Retirement System’s (PERS) 2.7% at age 55 plan to all eligible 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 o f unused sick leave to additional retirement credit, the 1959 Survivor's Benefit – Level Four, one-year final compensation, the Military Service Credit option, and the Pre -Retirement Option 2 Death Benefit. 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 1.2. “Classic Members Second Tier” employees hired on or after December 6, 2012. For “Classic Members” hired on or after December 6, 2012, tThe City will agrees to 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 – Level Four, the Military Service Credit option, and the Pre-Retirement Option Settlement 2 Death Benefit. Employees hired under this plan will pay the full member contribution required under the plan, presently seven percent (7%). CalPERS determines who is a “classic member” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA). Packet Page 208 Item 17 EXHIBIT “A” Page 4 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. 2.3. “New Members Third Tier” employees hired after January 1, 2013. For all employees who Cal PERS determines are “Nnew Mmembers” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA)., Tthe City will provide the PERS 2% at 62 retirement plan using the highest three-year average as final compensation. A. Effective upon their date of hire, new membe rs will pay 50% of the total normal cost of the member contribution, as determined by CalPERS. B. 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. B. Member Contributions 1. “Classic Members First and Second Tier” Effective June 2012, confidential employees began paying the full member contribution required under the plan for first and second tier employees (8% and 7% respectively) and the City discontinued their payment of the member contribution. For purposes of this Section, employee contributions are based on salary and special compensation as defined by PERS. Effective the first full pay period in July 2019, all employees shall contribute 1.5% in addition to the employee contribution defined in the paragraph above. Effective the first full pay period in July 2020, all employees’ additional contribution shall increase to 3%, in addition to the employee contribution defined in the paragraph above. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). 2. “New Members Third Tier” Effective on their date of hire, new members will pay 50% of the normal cost, as determined by PERS. Effective the first full pay period in July 2019, all new members shall contribute 1.5% in addition to the employee paying 50% of the normal cost. Effective the first full pay period in July 2020, all new members contribution shall increase to 3%, in addition to the employee paying 50% of the normal cost. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. Packet Page 209 Item 17 EXHIBIT “A” Page 5 All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). C. Contract Amendment with PERS The City will submit a contract amendment to PERS requesting the employee contributions effective July 2019 and 2020 (1.5% and 3% respectively) be considered contributions to the employees account. PERS currently requires a secret ballot election among the employees affected to change the employees’ rate of contribution. The contract cannot be amended if a majority of the affected members vote to disapprove the proposed plan. In the event a secret ballot is required by State Law and the unrepresented confidential group does not vote to approve the contract amendment, the additional contributions will still be required in accordance to the provisions of §20516(f). In this case the additional contributions would not be credited to the employee’s PERS account as a normal contribution. 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 or earlier with department head or designee authorization. Each confidential employee shall accrue vacation leave with the pay at the following rates: Years of Service Annual Vacation Accrual Days* Annual Vacation Accrual Hours 0 to 5 years 12 days 96 hours 5 to 10 years 15 days 120 hours 10 to 20 years 18 days 144 hours 20+ years 20 days 160 hours *One day is equivalent to eight (8) hours for a 40 -hour per week line-item position of 12 days (96 hours) per year of continuous service since the benefit date for the first five years, 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 compl etion of twenty years. Vacation leave shall be accrued as earned semi -monthly provided that not more than twice the annual rate (not including floating holiday leave) may be carried over to a new calendar year. Effective, April 2019, confidential employees vacation time shall not exceed twice the annual rate. If an employee reaches the cap at any time throughout the year, the employee will stop accruing vacation leave. 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 Packet Page 210 Item 17 EXHIBIT “A” Page 6 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. Payment for unused vacation leave is subject to the availability of budgeted funds. Section F Administrative Leave Confidential employees shall be granted 12 hours of administrative leave onthe first full pay period in January 1st of each year. Administrative leave hours shall be pro -rated on a monthly basis 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. Un used administration leave will not be carried over year to year but can be taken through the pay period that December 31st falls withinof each year. Section G Holidays Confidential employees shall receive eleven (11) fixed plus two (2) floating hol idays 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 Packet Page 211 Item 17 EXHIBIT “A” Page 7 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 or take the days as non-pay. 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. The two (2) floating holidays shall be accrued on a semi -monthly basis and added to the vacation accrual. Effective January 2019, the two floating holidays (16 hours) will be provided in a floating holiday leave bank on January 1st rather than being accrued on a semi -monthly basis. Employees will have the ability to use floating holiday leave hours at any point during the calendar year. Unused floating holiday leave will not be carried over year to year but can be taken through December 31st of each year. If an employee terminates for any reason, having taken off hours in excess of his/her prorated share of the floating holiday, the value of the overage will be deducted from the employee's final paycheck. In addition, there is no provision to receive cash payment for unused floating holiday leave. Section H Sick Leave Sick leave is governed by Section 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 shif t 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, confide ntial 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 (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 infor mation concerning the death or relationship shall be cause for discharge. Upon retirement the employee may choose: 1) a payout of the employee’s accumulated sick leave balance based on years of service according to the following schedule, 2) to Packet Page 212 Item 17 EXHIBIT “A” Page 8 convert a portion or all of the employee’s sick leave balance to service credit in accordance with CalPERS regulations, or 3) a combination of these two options. According to the following schedule, a percentage of the dollar value of the employee’s accumulated sick leave may be paid to the employee if the employee requests upon termination by retirement, and will be paid to the designated beneficiary or beneficiaries upon termination by death of the employee: (A) Death – 25% (B) Retirement and actual commencement of PE RS 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. Section J Overtime DefinitionCity Overtime Definition Overtime is defined as all hours preauthorized by management and worked by the employee in excess of forty (40) hours worked in a work week. Holidays and sick leave will be counted as hours worked for purposes of overtime. All overtime shall be authorized by the department head or designee prior to being compensated. FLSA/Statutory Overtime For the purpose of complying with FLSA overtime requirements under 29 USC section 207(a), the City has adopted a dual calculation method whereby it calc ulates FLSA overtime based on all hours actually worked by overtime eligible employees in excess of 40 hours in the seven-day work period. To the extent the City’s dual calculation method determines that FLSA overtime owed for the seven -day work period exceeds the amount of City overtime paid for the same seven-day work period, the difference will be paid to the employee by way of an “FLSA Adjustment” in the following City pay period. Compensation All overtime as defined in this Section shall be paid in cash at one and one half (1 1/2) the employee's base rate of pay. All overtime shall be compensated to the nearest five (5) minutes worked. Packet Page 213 Item 17 EXHIBIT “A” Page 9 Separate and apart from the City's contractual obligation to pay overtime in accordance with this Section, the City is obligated to calculate and pay, at a minimum, FLSA overtime based on the federally defined regular rate of pay. This calculation will be administered in accordance with the FLSA/Statutory Overtime ’ section above. Compensatory Time Off (CTO) A confidential employee eligible for overtime compensation as defined in this Section may elect compensation in the form of time of f (CTO). An employee may not be compensated in CTO for more than sixty (60) hours of overtime worked in the calendar year. Accumulated CTO may be taken through December 31st of each calendar year. Accumulated CTO not taken by midnight December 31st shal l be compensated in cash at straight time. Such compensation shall be paid in January of the following year. Work Week for Calculation of Overtime For all confidential employees working a regular 5/40 work schedule or a 4/10 alternative work schedule, the work week for the purpose of calculating overtime as defined in this Section shall be seven consecutive days, beginning at 12:00 am Thursday and ending at 11:59 pm Wednesday. For all confidential employees working a 9/80 alternative work schedule, the w ork week for the purpose of calculating overtime as defined in this Section shall be seven consecutive days, beginning exactly four hours into their eight -hour shift on the day of the week which constitutes their alternative regular day off. Section K 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 b y 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 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. Packet Page 214 Item 17 Labor Relations Objectives Adopted by Council September 23, 2014 Revised by Council March 20, 2018 1. Maintain fiscal responsibility by ensuring that fair and responsible employee compensation expenditures are supported by on -going revenues. (Theme – Fiscal Responsibility) 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. (Theme – Cost Containment/Reduction) 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. (Theme – Cost Containment) 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, including relevant local, statewide or national labor markets. (Theme – Recruitment and Retention) 5. Employee labor agreements will be negotiated in good faith, in a timely manner that avoids retroactivity provisions unless there is a compelling need. (Theme – Cost Containment) 6. Contract provisions shall take into consideration the City’s ability to effectively and efficiently implement and administer them using the City’s financial and human resources systems to ensure accuracy and compliance with federal, state, and local laws. (Theme – Best Practices and Compliance) Packet Page 215 Item 17 Page intentionally left blank. Packet Page 216 Item 17