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HomeMy WebLinkAboutR-10855 Comensation for unrepresented confidential employeesRESOLUTION NO. 10855 (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 confidential employees have demonstrated sensitivity to the fiscal challenges facing the City by agreeing to no changes to compensation, 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 maintains unrepresented confidential compensation as follows: SECTION 1. There will be no across the board salary increases (e.g. "cost of living" increases). SECTION 2. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit "A", fully incorporated by reference; and R 10855 Resolution No. 10855 (2018 Series) Page 2 SECTION 3. This Resolution shall be in effect from January 1, 2018 through June 30, 2018. All prior Resolutions are hereby superseded to the extent inconsistent herewith. Upon motion of Vice Mayor Christianson, seconded by Council Member Rivoire, and on the following roll call vote: AYES: Council Members Gomez, Rivoire and Pease, Vice Mayor Christianson and Mayor Harmon NOES: None ABSENT: None The foregoing resolution was adopted this 91h day of January 2018. ATTEST: Carrie Gallagher City Clerk APPROVED AS TO YChristine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my and and affixed the official seal of the City of San Luis Obispo, California, this Q3rd day of Carrie Gallagher City Clerk R 10855 Resolution No. 10855 (2018 Series) EXHIBIT "A" CONFIDENTIAL EM PLOVEES FRINGE BENEFITS 201$ 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 Pro nam 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 CaIPERS 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). 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 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. R 10855, EXHIBIT A, Page 1 of 7 Resolution No. 10855 (2018 Series) EXHIBIT "A" Confidential' s Fringe Benefits 2018 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. Sectimi B lleal0i Flex Allc wmice 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 CoverageMonthly Rates Employee Only $539 Employee Plus One1$1,442 $1,066 Family Effective December 2017 (for the January 2018 premium), the City's total health flex allowance for group medical coverage was 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). 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. R 10855, EXHIBIT A, Page 2 of 7 Resolution No. 10855 (2018 Series) EXHIBIT "A" Confidential' s Fringe Benefits 2018 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 accidental death and dismemberment through the City's Cafeteria Plan. Section D Retirement Em to ees 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 — 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. "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 — Level Four, the Military Service Credit option, and the Pre -Retirement Option 2 Death Benefit. Employees hired under this plan will pay the full member contribution required under the plan, presently seven percent (7%). Ca1PERS determines who is a "classic member" within the meaning of the California Public Employees' Pension Reform Act (PEPRA). The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre-tax basis. New Members For all employees who CalPERS determines are "new members" within the meaning of the PEPRA, the City will provide the PERS 2% at 62 retirement plan using the highest three-year average as final compensation. R 10855, EXHIBIT A, Page 3 of 7 Resolution No. 10855 (2018 Series) EXHIBIT "A" Confidential' s Fringe Benefits 2018 Effective upon their date of hire, new members will pay 50% of the total normal cost of the member contribution, as determined by Ca1PERS. The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre-tax basis. Section E 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 authorization. Each confidential employee shall accrue vacation leave with the pay at the rate 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 completion 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. 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 the first full pay period in January. 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. Unused administration leave will not be carried over year to year but can be taken through the pay period that December 3151 falls within. Section G Holidays Confidential employees shall receive eleven (11) fixed phis 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 R 10855, EXHIBIT A, Page 4 of 7 Resolution No. 10855 (2018 Series) Confidential' s Frinae Benefits 2018 • 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 EXHIBIT "A" 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 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. 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 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, 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 R 10855, EXHIBIT A, Page 5 of 7 Resolution No. 10855 (2018 Series) EXHIBIT "A" Confidential' s Fringe Benefits 2018 death before being granted sick leave pay. False information concerning the death or relationship shall be cause for discharge. 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 PERS 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 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. 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. 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. Cam ensator Time Off(CTO) A confidential employee eligible for overtime compensation as defined in this Section may elect compensation in the form of time off (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 R 10855, EXHIBIT A, Page 6 of 7 Resolution No. 10855 (2018 Series) EXHIBIT "A" Confidential' s Fringe Benefits 2018 taken through December 31 st of each calendar year. Accumulated CTO not taken by midnight December 31 st shall 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 work 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 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 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. R 10855, EXHIBIT A, Page 7 of 7