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HomeMy WebLinkAbout08/15/2000, C9 - RESOLUTION TO UPDATE THE MANAGEMENT FRINGE BENEFIT LIST council 8. 15 j agenba REpont C9 C I T Y OF SAN LU I S OBISPO FROM: Ann Slate,Director of Human Resource Prepared By: Karen Jenny,Risk ManagerA SUBJECT: RESOLUTION TO UPDATE THE MANAGEMENT FRINGE BENEFIT LIST CAO RECOMMENDATION Adopt a resolution amending and restating the fringe benefit list for department heads and managers. DISCUSSION Department heads and management employees are not part of a formal employee bargaining group with a memorandum agreement (MOA) outlining their salaries and benefits. The compensation plan for department heads and managers is set by Council resolution. In 1989, Resolution 6604 included a listing of the fringe benefits for management, which included only the department heads. Although changes have been made to the benefit package in the areas of retirement,life and disability insurance, and administrative leave,the list has not been updated. Management employees were a formally recognized bargaining group until 1996, when they agreed to disband as a formal group and join the department heads in a larger unrepresented group. While benefits remained the same as stated in the prior MOA, there has not been an updated listing of the benefits available to management employees. . Exhibit "A" updates the fringe benefit list for department heads and includes management employees. The only change in the fringe benefit list is the deletion of the City's contribution of one-half of health insurance premiums for department head retirees. This benefit is proposed to be deleted in order to be more consistent with other employee benefits. Only the department heads have this benefit at this time. The change will apply only to department heads hired following the adoption of this change. ATTACHMENTS 1 Resolution 2 Exhibit"A" GAagenda reponsWanagement Fringe Benefit Update C9-1 ATTACHMENT I RESOLUTION NO. (2000 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING AND RESTATING THE FRINGE BENEFITS FOR DEPARTMENT HEADS AND MANAGEMENT PERSONNEL AND SUPERCEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City Council is committed to a comprehensive compensation and benefits policy that strengthens the recruitment and retention of well qualified and effective department heads and management personnel; and WHEREAS, the Council desires to maintain a management compensation plan that is consistent with other compensation plans; and WHEREAS, the list of benefits for department heads has not been updated since 1989, and the list of benefits for management employees has not been updated since they joined the department heads in an un-represented management group in 1996; BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City shall continue to provide to employees listed in Exhibits"A"and "B" in Resolution No. 9017 (2000 series) certain fringe benefits as set forth in Exhibit "A" attached hereto and fully incorporated by reference. SECTION 2. The Tinge benefits listed in Exhibit"A"for department heads shall apply to appointed officials, except where they have been modified by Council resolution. SECTION 3. The contribution for retired department heads' health insurance premiums described in Section C3. of Exhibit"D"to Resolution No. 6604(1989 Series) shall no longer be provided for department heads appointed after the date of this resolution. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 2000. C9-2 ATTACHMENT-1, Resolution No.. (2000 Series) L Page 2 Mayor Allen Settle - - ATTEST: Lee Price;.City Clerk APPROVED AS'TO FORM: O; jorg `en ty Attorney 1 s C9-3 ICHMENT 2 In Resolution No. (2000 Series) EXHIBIT"A" DEPARTMENT HEAD AND MANAGEMENT FRINGE BENEFITS 2000 Section A Medical,Dental.Eve Care The City shall establish and maintain medical, dental and eye care insurance plans for coverage by 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 CalPERS Health Benefit Program with the`unequal contribution option"at the PERS minimum contribution rate, currently$16.00 per month for active employees and$1.00 per month for retirees. The city's contribution toward retirees shall be increased by 5%per year of the City's contribution for the active employees until such time as contributions for employees and retirees are equal. . Employees with proof of medical insurance elsewhere are not required to participate in the medical insurance plan and may receive the unused portion of the City's contribution(after dental and vision insurance is deducted) in cash in accordance with the City's cafeteria plan. Those employees will be assessed$16.00 per month to be placed in the Retiree Health Insurance Account. This account will be used to fund the City's contribution toward retiree premiums and the City's costs for the Public Employees' Contingency Reserve Fund and Administrative Costs. However, there is no requirement that these funds be used exclusively for this purpose,nor any guarantee that they will be sufficient to fund retiree health costs, although they will be used for employee benefits. Employees will be required to participate in the City's dental and vision plans at the employee- only rate. Should they elect to cover dependents in the City's dental and vision plans,they may do so, even if they do not have dependent coverage for medical insurance. Employees shall participate in term life insurance of$4,000 through payroll deduction as a part of the cafeteria plan. Section B Cafeteria Plan Contribution The City shall contribute$420 per month for cafeteria plan benefits for each regular, full-time employee covered by this resolution. Less than full-time employees shall receive a prorated share of the City's contribution. Section C We and Disability Insurance The City shall provide the following special insurance benefits in recognition of management responsibilities: C9-4 ATTACHMENT 2 f.s. Resolution No. (2000 Series) E=IT "A" Management Fringe Benefits 2000 Page 2 1. Long-term disability insurance providing 66 2/3%of gross salary(maximum benefit $5,500 per month)to age 65 for any sickness or accident, subject to the exclusions in the long-term disability policy,after a 30-day waiting period. 2. In addition to $4,000 term life insurance purchased by the employee through the cafeteria plan,$100,000 term life insurance for department heads and$50,000 term life insurance for management employees, including accidental death and dismemberment. Section D Retirement The City shall provide the California Public Employees' Retirement System's(CalPERS) 2% at 55 plan to all eligible employees including the amendments permitting conversion of unused sick leave to additional retirement credit,the 1959 survivor's benefit, and one year final compensation. The Police and Fire Chiefs shall receive the same retirement benefits as sworn personnel in their department. The City agrees to pay the employee's contribution to CalPERS. These amounts paid by the City are employee contributions and are paid by the City to satisfy the employee's obligation to contribute the current percentage of salary to CalPERS. An employee has no option to receive the contributed amounts directly instead of having them paid by the City to CalPERS on behalf of the employee. It is finther understood and agreed that the payment of the employee's CalPERS contribution is made subject to I.R.S. approval and reporting procedures. The City shall report as salary all Employer-Paid Member Contributions to CalPERS for the purposes of retirement credit in accordance with Government Code Section 20636 (c) (4). Section E Supplemental Retirement The City shall contribute 1%of salary for management employees and 2%of salary for department heads to a defined contribution supplemental retirement plan established in accordance with sections 401 (a) and 501 (a)of the Internal Revenue Code of 1986 and California Goverment Code sections 53215-53224. Section F 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 up to a maximum of twice the annual accrual rate. C9-5 ATTACHMENT 2 Resolution No. (2000 Series) EXHIBIT"A" Management Fringe Benefits 2000 Page 3 However, if the City Administrative Officer determines that a department head has been unable to take vacation due to the press of City business,the City Administrative Officer may increase the accrual limits or once annually authorize payment for one-half of the accumulation up to a maximum of forty(40)hours. The City Administrative Officer may,within two years of appointing a department head, increase the rate of vacation accrual to a maximum of 120 hours per year. Vacation schedules for management employees shall be based upon the needs of the City and then,insofar as possible,upon the wishes of the employee. A department head may not deny a management employee's vacation request if such denial will result in the loss of vacation accrual by the employee, except that, a department head may approve a two-month extension of maximum vacation accrual. However, in no event shall more than one such extension be granted in any calendar year. 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 G Administrative Leave Department heads shall accrue 80 hours of administrative leave per calendar year. Department heads shall have the option of taking such leave as additional paid leave or receiving cash for up to 80 hours at year end upon approval of the City Administrative Officer. Management employees shall be granted up to 48 hours per year of administrative leave. Section H 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. Section I Sick Leave Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 16 hours per year of sick leave if required to be away from the job to personally care for a member of his/her immediate family as defined in Section 2.36.420. This may be extended to 40 hours per year if the family member is part of the employee's household,and to 56 hours if a household family member is hospitalized and the employee submits written verification of such hospitalization. If the family member is a child,parent or spouse, an employee may use up to 48 hours annually to attend to the illness of the child,parent or spouse, instead of the lesser maximums above,in accordance with Labor Code Section 233. In conjunction with existing leave benefits,department head and management employees with one year of City service who have worked at least 1,280 hours in the previous year may be C9-6 ATTACHMENT 2 Resolution No. (2000 Series) E)=rr"A" Management Fringe Benefits 2000 Page 4 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. 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(10)years of continuous employment— 10% (2) After twenty years of continuous employment— 15% Section J 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 lawduring the first ninety(90)business days of such temporary disability absence. Eligibility for workers' compensation leave requires an open workers' compensation claim Section K Vehicle Assignment For those department heads who require 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. The use of a personal automobile for City business will be eligible for mileage reimbursement in accordance with standard City policy. Section L Appointed Officials The fringe benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. C9-7