HomeMy WebLinkAboutHR Elected City Clerk & City Attorney Compensation Discussion 2016clry a� Agenda Item No: 4.f
Meeting Date: August 15, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Management Services
Prepared by: Stacey Peterson, HR Director City Manager Approval: C ;_
TOPIC: COMPENSATION FOR THE ELECTED CITY CLERK AND ELECTED PART-
TIME CITY ATTORNEY
SUBJECT: DISCUSSION AND CONSIDERATION OF A RESOLUTION PERTAINING TO
COMPENSATION AND WORKING CONDITIONS FOR THE ELECTED CITY
CLERK AND ELECTED PART-TIME CITY ATTORNEY (JULY 1, 2016
THROUGH JUNE 30, 2018)
RECOMMENDATION: Direct staff to return with a final Resolution for approval
BACKGROUND:
The elected City Clerk and elected part-time City Attorney resolution expired on June 30, 2016.
The recommended revisions to compensation for the elected City Clerk and elected part-time
City Attorney is the same as that already approved by the City Council for other non -safety
groups for Fiscal Year (FY) 16/17 and FY 17/18.
ANALYSIS:
The following reflects highlights of the recommended resolution revisions and is consistent with
the guidelines authorized by the City Council.
1. Term of the Resolution: July 1, 2016 through June 30, 2018
2. Salary Increase: These elected officials will receive a 2.0% base wage increase effective
July 1, 2016 and a 2.0% increase effective July 1, 2017.
3. One -Time Payment: The City Clerk and City Attorney will receive a Health Cost Increase
Offset in the amount of $2,500, split between the two years as follows: $1,250 will be paid
in the first paycheck in September 2016, and $1,250 will be paid in September 2017. This
one-time payment will not be included in the Full Flex Cafeteria Plan, will not contribute to
employees' pensions, is subject to normal payroll taxation and may be used by each elected
official to address their own unique health care cost needs.
FOR CITY CLERK ONLY
File No.: 9-3-14 x 9-3-16
Council Meeting: 08/15/2016
Disposition: Staff to return with final resolution
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 2
This payment is limited to the two years cited in the resolution and is not scheduled to recur
in the future.
In addition to the major items discussed above, several other minor revisions were made to the
expired resolution provisions and/or clean up items with little or no significant cost. The
attached redline resolution includes all of the recommended changes.
FISCAL IMPACT:
The current total annual salary and benefit cost to the City for the two elected officials is
$419,359. The additional ongoing incremental cost of the recommended resolution beyond the
FY 15/16 budget is:
Incremental Incremental
FY 2016-17 FY 2017-18
Wages:
Base Salary (2%) $4,779 $4,875
Annual % change (2%) (2%)
Other costs:
Pension* $2,337 $2,384
Taxes (Medicare, W/C) 122 125
Total Incremental Cost $7,238 $7,384
*This pension cost results only from the negotiated wage increase and does not include the
cost of associated MCERA rate changes. The terms and conditions of the pension benefit plan
remains unchanged.
The projected total salary and benefit cost increase for the items specified above is $21,860 for
the two year term. In addition, there is a cost of $5,000 in one-time payments. These one-
time payments will not contribute to employee pension costs. The increase in compensation
included in this resolution is in line with the City's current budget projections, and is within the
current salary growth assumptions used by MCERA in the most recent actuarial valuation which
is used to establish pension contribution rates and measure pension liabilities. Funding for
these positions is provided for in the City's General Fund.
OPTIONS:
The City Council has the following options to consider in this matter:
• Direct staff to return at the next meeting with a resolution seeking approval of the
compensation and work conditions for the elected City Clerk and elected part-time City
Attorney.
• Direct staff to return with more information.
RECOMMENDED ACTION:
Staff recommends that the City Council take public comments and direct staff to return at the
next meeting with a final resolution seeking approval of the compensation and working
conditions for the elected City Clerk and elected part-time City Attorney (July 1, 2016 through
June 30, 2018).
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 3
ATTACHMENTS:
• Draft resolution specifying the compensation and working conditions for the elected City
Clerk and elected part-time City Attorney (July 1, 2016 to June 30, 2018)
RESOLUTION NO.
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 (JULY 1, 201 THROUGH JUNE 30,201 )
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, 20164 through June 30, 201
1. SALARY
a) Salary Increase
Effective the pay period including July 1, 20146, the City shall provide a 32.0% increase to the
salary for the City Clerk and City Attorney in accordance with the chart below.
Effective the pay period including July 1, 20107, the City will provide a 32.0% increase to the
salary for the City Clerk and City Attorney in accordance with the chart below.
Effective Date
July 1, 20164
July 1, 20170
MONTHLY SALARY
City Attorney
$10,341P-,44-4
$10,5484,-6-93
City Clerk
$9,972074
$10,1714, -347-
b)
10,1714 -047
b) One -Time Pavment
The Citv Clerk and Citv Attornev will receive a Health Cost Increase Offset pavment in the
amount of $2,500, split as follows: $1,250 will be paid in the first pavcheck in September
2016, and $1,250 will be paid in September 2017. This one-time pavment will not be included
in the Full Flex Cafeteria Plan, will not contribute to emplovees' pensions, is subject to normal
payroll taxation and may be used by each elected official to address their own unique health
care cost needs.
This payment is limited to the two nears cited in the resolution and is not scheduled to recur in
the future.
b)c) 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 the pavcheck of December 15, 2015 shall be:
For emplovee only: $ 618.49
For emplovee and one dependent: $1,236.97
For emplovee and two or more dependents: $1,608.07
Emnleyee eel ,� $ UA.25
Employee and one rdenenrdont: $1178.52
Employee anrd two or more rdepeRclonts. $1532.08
The monthly flex dollar allewanoe effeo+iye with the nayGheGk of Deoemhor 15, 201 shall ba�
Rmnleyee enl� ; $ 603.99
rd
Employee anone rdenenrdont: $ 1z`t07.998
Rmnleyee anrd two or mere rdenenrdants. $1570.38
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.
Thi e-vny-,shall make available +e employees on a drdi+ienol flex dellor ollewaRGe +r) f! 11���
"employee plus dependent" vision plan to he determined by the (`i+a
The monthly flex dollar allowance may be used in accordance with the terms of the cafeteria
plan to purchase medical insurance, taken in the form of cash to contribute to a deferred
compensation (457) plan, or may be converted to taxable income.
Conditional Opt -Out Payment: An emplovee may elect to waive the Citv's health insurance
coverage and receive the value of the Emplovee Only contribution as a monthly Opt -Out
pavment in accordance with the terms of the cafeteria plan, and the Affordable Care Act, if the
emplovee complies with the following conditions:
1) The emplovee certifies that the emplovee and all individuals in the emplovee's tax family
for whom coverage is waived, have alternative Minimum Essential Coveraqe as defined by
the Patient Protection and Affordable Care Act through a provider other than a federal
marketplace, a state exchanqe, or an individual policy.
2) Durinq the Citv's annual open enrollment period, the emplovee must complete an annual
written attestation confirming that the emplovee and the other members of the emplovee's
tax familv are enrolled in alternative Minimum Essential Coveraqe. The emplovee aqrees
to notifv the Citv no later than 30 days if the emplovee or other member(s) of the
emplovee's tax familv lose coveraqe under the alternative Minimum Essential Coveraqe
Plan.
3) The emplovee understands that the Citv is leqallv required to immediately stop conditional
opt -out pavments if the Citv learns that the emplovee and/or members of the emplovee's
family do not have the alternative Minimal Essential Coveraqe.
The Citv reserves the right to modifv at anv time, the amount an emplovee is eliqible to
receive under this paragraph, if required by IRS Cafeteria Plan regulations, other legislation or
Federal and/or California agencv quidance.
The Gity shall GORtribute te the Gest ef med!Gal Geverage fer eaGh eligible empleyee and his/her
depeRdonto, sn L',mo"n+ net to exreerd the Garfornic Publis Emnleyees' Merdieal and 1-1ecni+ol
/fi
Care n+ (PEM -GA) ^ontributien as determinedbyGaIPERS '.\n an annual ccic. Thin per+
of the menthly flex idellar allewanoe is identified as the City's oontribuVen tewarrds PEMHGA.
The balance of the men+hly flex rdellar allewanoe (after the DEMI-&f\ minimum sontribufi944)
may he used in aooerrdanee with the terms of the „afe+oric plen to p irehase ether benefits er
may he ee Ryerterd +o tln)(cblg iRGemme. Feer example' rd
in nalen^ar year 2010, a single
rd
empleyee's monthly flex ellar allewan hocIthis33.5"1, sf the cmo un+• $105.00 has
been designated by CcIPERS cc the Gity's monthly PEMHGn ^ontribU`is;. The balance of
$112.51 mcy he used +e ni irehase ether oeyerage as efferei-d three gh the cafetoric plcn ar
may he oenyer+eld to ts)(sble in�rrcvom�
If an ervmnleyee has hoalth in✓.urance nr."eraoe through a spe se/ldenenden+ or a fermer
emnleyer and nreyides nrnef of ether neyerane +n +ho Human Roses gees Department the
emnleyee may eleGt to waive the ri+"'c hoalth inouran^e GOyerane and elan+ to use flex dollars
in arrnrdanre with the terms of the cafe+oria plan.
Miscellaneous Allowance for Emplovees 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 equivalent to 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 longevity contribution 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, as determined by the Centers of Medicare and Medicaid Services (CMS) on an
annual basis. To initiate reimbursement, retirees must submit proof of payment of the
Medicare Part B premiums to the Human Resources Department. If the Medicare Part B is
deducted from social security, the retiree/spouse/domestic partner may submit a copy of the
social security check, the Medicare Part B bill, or other relevant documentation.
Reimbursements will be processed on a quarterly basis. This reimbursement shall remain in
effect for the retired elected or appointed official's life and that of the retired elected or
appointed officials 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 equivalent to 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
longevity contribution 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 egUal to tWG tiMes the
Gity Glerk'slGity Attefpeyc anneal Galoryin the amount of $250,000 at no cost to the emplovee.
d) Disabilitv 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.
f) Vision Plan
The Citv will contract for and pav for a vision plan for "emplovee plus dependent" vision benefits.
q) Gvm Reimbursement
The Citv Clerk and Citv Attornev are eligible to receive un to $16.50 per month reimbursement
for paid gvm memberships. Such reimbursement shall be reported as taxable income to the
emplovee.
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.
Employees hired by the City on or after January 1, 2013 who are defined as "new members" of
MCERA in accordance with the Public Employees' Pension Reform Act (PEPRA) of 2013, shall
be enrolled in the MCERA 2% @ 62 plan for Miscellaneous members. The employee is
responsible for paying the employee contribution of half of the total normal cost of the plan, as
defined by MCERA, through a payroll deduction. Final compensation will be based upon the
highest annual average compensation earnable during the thirty six (36) consecutive months of
employment immediately preceding the effective date of his or her retirement or some other
period designated by the retiring employee.
b) Emvlover 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.
Effective September 1, 2013, in accordance with MCERA and City administrative
requirements, the City Attorney and City Clerk will pay an additional contribution of one percent
(1 %) of pensionable compensation toward the normal cost of pension provided by the Marin
County Employees Retirement Association, in addition to the current employee contribution
towards pension as determined by MCERA. The only employees excluded from this payment
are long-term City employees with thirty or more years of City service who no longer have to
pay any employee contribution to the Marin County Retirement System.
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
COLA portions (currently 50% of the COLA is charged to members as defined in the 1937 Act).
d) Manaaement Allowance. -As of September 16. 2015 the Manaaement Allowance of 4.59%
was rolled into base pav for the Citv Clerk and Citv Attornev.
Pursuant to Resolution e. 10657 a Defined Contribution mont Plan is sdepted der
Management and Mid Management employees. All rules related to this plan shall be
governed by +ho Plan ,dnni amen+ and its amendments. The GUrrentcontribution fa,-, for the
inns rnben+ Gity Clerk and the Gity Attorney is 4.59% of has c/ lis 1 The Gity c•hall
make Plan Ghaanges,, as�eq'�'-.'rredfr�rern time to time in order to have the Defineontributiea
Peti�reTmrtcnt Plsn romain in Gemnlianne with then existing IPC regulations
AddTtionally, the Gity will mere a one tome PAPS Gontributi ° f annual bast' ✓alary-�R
lily 2014 and Lily 2015.
To nmmph"ith Ifs rul8c employees who had nre"iniicl" eleG+e.d to have the (`i+"'c Management
Alln�^rmvWaRGezontribl.\iqns denesited in a PAPS nnneun+ will have +hair nontribL.ginnc innrnocnr� h"
the new City GontribUtinn nernen+ono. Employees who elected the Gash GptieR -will oimilo ly
re Geiye an equivalent omni in+ in Goch
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 46th day of
September 2016du,,e,2044 by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, CITY CLERK
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) --> CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 8/15/2016
From: Stacey Peterson
Department: Human Resources
Date: 8/8/2016
Topic: Resolution for Elected City Clerk and Elected City Attorney Compensation
Subject: Discussion and Consideration of Resolution approving compensation and working
conditions for Elected City Clerk and Elected Part-time City Attorney (July 1, 2016 through June 30,
2018)
Type: ❑ Resolution ❑ Ordinance
❑ Professional Services Agreement ® Other: Discussion and Consideration
® Finance Director
Remarks: MM - approved 8/9
® City Attorney
Remarks: LG -Approved 8/9/16
® Author, review and accept City Attorney / Finance changes
Remarks: SP - Ready for CM review 8-9-16
® City Manager
Remarks:
