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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