HomeMy WebLinkAbout2011-07-18_cityofsanrafael_c434b1966b8472f719a82d6ff4cffc33CITY
Agenda Item No: 3M
Meeting Date: July 18, 2011
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Management Services
Prepared by:
Leslie Loomis, Human Resources Director (SG) City Manager Approval �j m46
SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR THE
ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY (July 1, 2011 through June 30, 2013)
RECOMMENDATION: Adopt resolution
BACKGROUND: Since 2007, the City of San Rafael has had to make significant budget balancing decisions to
deal with the impacts of the national recession. Some of the personnel -related steps taken to help address the
City's deficit include work furloughs, an early retirement program, a hiring freeze, layoffs and other actions. At
the July 5, 2011 meeting, the City Council adopted the budget for FY 2011-2012 which included a 4% total
compensation reduction across all bargaining units for the term of the upcoming labor contracts. The key issues
of current negotiations have centered around pension reform, compensation reductions through a reduced work
schedule, and other more immediate cost -reducing measures and revenue generating programs.
The current resolution establishing compensation and working conditions for the Elected City Clerk and the
Elected Part -Time City Attorney covers a one year period from July 1, 2010 to June 30, 2011. Because
economic conditions have not improved significantly and the City must continue to implement cost saving
measures, the Elected City Clerk and the Elected Part -Time City Attorney have agreed to participate with those
City employees and officers who are taking a pay reduction for the 2011-2012 and 2012-2013 Fiscal Years.
Effective July 1, 2011, the Elected City Clerk and Elected Part-time City Attorney will voluntarily take a pay
reduction for each fiscal year of this resolution. This reduction will match the impact that all employees will be
experiencing through the 4% Total Compensation reduction for FY 11-12 and FY 12-13.
A four percent across-the-board compensation reduction represents a significant understanding of the City's
financial condition by its employees. Considerably more staffing reductions would need to have been made
without the agreement of our City's employees to reduce their compensation. By doing so, the employees
played a very significant role in reducing the impact to City services.
FISCAL IMPACT: As stated above, the City Council approved the Fiscal Year 2011-12 budget including a 4%
total compensation reduction for all bargaining units. This reduction was projected to save approximately $1.4
million in overall costs. This Resolution reflects a 4% total compensation reduction and is therefore a part of the
overall $1.4 million in personnel cost savings.
OPTIONS: Accept the recommendation and adopt the resolution OR Reject the recommendation
ACTION REQUIRED: Adopt the Resolution Establishing the Compensation and Working Conditions for Elected
City Clerk and Elected Part-time City Attorney from July 1, 2011 through June 30, 2013.
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING THE
COMPENSATION AND WORKING CONDITIONS FOR THE
ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY
(Effective July 1, 2011 through June 30, 2013)
This Resolution shall constitute the compensation and conditions of employment for the
elected City Clerk and elected part-time City Attorney for the period from July 1, 2011
through June 30, 2013.
1) SALARY
a) Salary Increase Effective July 1, 2011, the City shall provide a 0% increase to the
salary for the City Clerk and City Attorney in accordance with the chart below. In
addition, both the City Attorney and City Clerk will voluntarily take a one-time 4.63%
pay reduction for each fiscal year of this resolution. This reduction will match the
impact that all employees will be experiencing through the 4% Total Compensation
reduction for FY 11-12 and FY 12-13.
MONTHLY SALARY
Effective Date
City Attorney
City Clerk
July 1, 2011
$8714
1 $8402
b) Car Allowance An incumbent who holds the City Clerk's office is eligible to receive
a monthly car allowance of $350 per month.
2) INSURANCE
a) Health Insurance Effective January 1, 2009, the City implemented a full flex
cafeteria plan for active employees, in accordance with IRS Code Section 125.
Active employees participating in the City's full flex cafeteria plan, including the City
Clerk and City Attorney, shall receive a monthly flex dollar allowance to purchase
benefits under the full flex cafeteria plan. The monthly flex dollar allowance effective
January 1, 2011 is:
Employee only: $ 539.25
Employee and one dependent: $ 1078.51
Employee and two or more dependents: $ 1402.07
Flex dollar allowances shall increase on the December 15th paycheck of each
subsequent year by the healthcare component of the Consumer Price Index (CPI)
as determined by CalPERS on an annual basis. The increase to flex dollar
allowances shall not exceed 3% for any given year.
The City shall make available to employees an additional flex dollar allowance to
fund a basic "employee plus dependent" vision plan to be determined by the City.
The City shall contribute to the cost of medical coverage for each eligible employee
and his/her dependents, an amount not to exceed the California Public Employees'
Medical and Hospital Care Act (PEMHCA) contribution, as determined by CalPERS
on an annual basis. This portion of the monthly flex dollar allowance is identified
as the City's contribution towards PEMHCA. The balance of the monthly flex
dollar allowance (after the PEMHCA minimum contribution) may be used in
accordance with the terms of the cafeteria plan to purchase other benefits or may
be converted to taxable income. For example, in calendar year 2010, a single
employee's monthly flex dollar allowance for health is $523.54, of that amount;
$105.00 has been designated by CalPERS as the City's monthly PEMHCA
contribution. The balance of $418.54 may be used to purchase other coverage as
offered through the cafeteria plan or may be converted to taxable income.
If an employee has health insurance coverage through a spouse/dependent or a
former employer and provides proof of other coverage to the Human Resources
Department, the employee may elect to waive the City's health insurance
coverage and elect to use flex dollars in accordance with the terms of the cafeteria
plan.
Miscellaneous Allowance for Employees hired on or before January 1, 2009:
The City shall pay to employees hired on or before January 1, 2009 a
miscellaneous allowance in an amount equivalent to the difference between the
employee's benefit election for coverage under PEMHCA and their flex dollar
allowance, if their benefit election under PEMHCA exceeds their flex dollar
allowance. The miscellaneous allowance shall be treated as income. An employee
may use the miscellaneous allowance to pay for health coverage on a pre-tax
basis as defined under the City's Cafeteria plan.
b) Health Insurance for Retirees
i) Elected or Appointed officials placed into office prior to April 1, 2007 and
who retire from the Marin County Employees' Retirement Association (MCERA)
within 120 days of leaving their City of San Rafael elected position of City Clerk or
City Attorney (and who comply with the appropriate retirement provisions under
the MCERA laws and regulations) are eligible to continue in the City's group
health insurance program and receive the PEMHCA minimum contribution as
determined by CalPERS on an annual basis.
Longevity Payments: The City shall make a longevity payment to the City's
401(h) account on a monthly basis. The City's monthly contribution towards the
401(h) account shall be the difference between the PEMHCA minimum
contribution and the premium cost of coverage for the retiree, the retiree's
spouse/registered domestic partner and/or qualified dependent children (as
defined by PEMHCA) capped at the contribution the City makes towards the
health coverage of an active City Attorney or City Clerk. The City's contribution to
the City's 401(h) account shall remain in effect during the lifetime of the retired City
Attorney and City Clerk and their spouse/registered domestic partner or surviving
spouse/registered domestic partner.
As described in this subsection, the City shall reimburse retired elected or
appointed officials and their spouses or registered domestic partners the Medicare
Part B standard premium amount, (i.e. $96.40 for 2008), as determined by the
Centers of Medicare and Medicaid Services (CMS) on an annual basis. The City
shall reimburse the cost of Medicare Part B standard premiums once the City
receives proof of payment of the Medicare Part B premiums by the retired elected
or appointed official or their spouse/registered domestic partner or surviving
spouse/registered domestic partner. This reimbursement shall remain in effect for
the retired elected or appointed official's life and that of their spouse/registered
domestic partner or surviving spouse/registered domestic partner.
ii) Elected or Appointed officials placed into office on or after April 1, 2007
and who retire from the Marin County Employees Retirement Association (MCERA)
within 120 days of leaving their City of San Rafael elected position of City Clerk or
City Attorney (and comply with the appropriate retirement provisions under the
MCERA laws and regulations) are eligible to continue in the City's group health
insurance program. The City's contribution towards the coverage of retirees under
this subsection shall be the PEMHCA minimum contribution as determined by
CalPERS on an annual basis.
Longevity Payments: The City shall make a longevity payment to the City's
401(h) account on a monthly basis. The City's monthly contribution towards the
401(h) account shall be the difference between the PEMHCA minimum
contribution and the premium cost of coverage, up to $600, for the retiree. The
City shall not be responsible for making any contributions towards the cost of
coverage of the retiree's spouse, registered domestic partner or dependents. The
City's contribution to the City's 401(h) account shall cease upon the retired City
Attorney or City Clerk's death.
iii) Elected or Appointed officials placed into office on or after January 1,
2009
Elected or Appointed officials placed into office on or after January 1, 2009, and
who retire from the Marin County Employees Retirement Association (MCERA)
within 120 days of leaving their City of San Rafael position (and comply with the
appropriate retirement provisions under the MCERS laws and regulations) are
eligible to continue in the City's group health insurance program. The City's
contribution towards the coverage of retirees under this subsection shall be the
PEMHCA minimum contribution as determined by CalPERS on an annual basis.
c) Life Insurance. The City shall provide a basic group life insurance plan equal to
two times the City Clerk's/City Attorney's annual salary, not to exceed $150,000.
d) Disability Insurance. The City shall provide long term disability (LTD) insurance, at
no cost to the City Clerk/City Attorney, with a benefit of two-thirds (2/3) of their
respective monthly salaries, up to a maximum benefit of $7500 (reduced by any
deductible benefits).
e) Dental Insurance. The City shall make available to all employees an additional flex
dollar allowance equal to $113 per month to purchase dental coverage under the
City's dental plan. The City shall pay dental premiums on behalf of the City
Clerk/City Attorney and eligible dependents.
3) RETIREMENT
a) Retirement Plan. The City shall provide the Marin County Employee Retirement
Association 2.7% @ 55 retirement program to the City Clerk and City Attorney,
subject to Marin County Employee Retirement Association procedures and
regulations and applicable 1937 Act laws. This is based on an employee's single
highest year of compensation.
Employees hired on or after July 1, 2011 will receive an MCERA retirement benefit
at the formula 2% at 55, calculated based on the average of their three highest
years of compensation, in accordance with MCERA regulations. The annual
pension adjustment shall be a maximum of 2% COLA. Minimum retirement age is
55.
b) Employer Paid Member Contribution (EPMC). The City Clerk and City Attorney
are responsible for the full cost of their own employee contribution rate as
established by MCERA.
c) COLA. Participating members in the Marin County Employee Retirement Association
will pay their full share of members' cost of living rates as allowed under Articles 6
and 6.8 of the 1937 Retirement Act. Miscellaneous and safety member contribution
rates include both the basic and COIR portions (currently 50% of the COLA is
charged to members as defined in the 1937 Act).
d) Management .Allowance. Pursuant to Resolution No. 10657 a Defined
Contribution Retirement Plan is adopted for Management and Mid -Management
employees. All rules related to this plan shall be governed by the Plan document
and its amendments. The current contribution for the incumbent City Clerk and the
incumbent City Attorney is three percent (3%). The City shall make Plan changes,
as required from time to time, in order to have the Defined Contribution Retirement
Plan remain in compliance with then existing IRS regulations.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City the 18 day of July, 2011 by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, CITY CLERK