HomeMy WebLinkAboutHR Unrepresented Mgmt Employee SalaryCITY OF
Agenda Item No:
Meeting Date: April 6, 2009
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Management{ Services Department
Prepared by: Jim Schutz, 1J City Manager Approval
Assistant City Manager
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS
FOR UNREPRESENTED MANAGEMENT EMPLOYEES ("MANAGERS") (July 1,
2009 through June 30, 2010)
RECOMMENDATION: Adopt Resolution.
BACKGROUND:
The Management group's current Resolution with the City runs from July 1, 2006 to
June 30, 2009. This Resolution was amended in October 2008 to reduce long term
healthcare costs by implementing a full flex cafeteria plan and reverting to the minimum
allowable health contribution for all Managers effective January 1, 2009. This will have
the effect of substantially reducing our long term health care liability for management
employees.
As the Council has illustrated through the Recession Action Plan and the Economic
Vitality Plan, the severe recession is having a major impact on the City and has resulted
in a significant projected budget deficit for next fiscal year. The Management unit was
the first city group to come forward and request that their salary and benefits be
reduced to aid the City in weathering the recession.
The exempt Management group includes 10 managers which serve as Department
Directors including the Assistant City Manager, Community Development Director,
Community Services Director, Economic Development Director/Deputy City Manager,
Finance Director, Fire Chief, Human Resources Director, Library Director, Police Chief,
and Public Works Director. The City Manager has been meeting regularly with the
Directors regarding the departmental budgets and compensation costs.
In March, the above Management employees requested a series of salary and benefit
reductions in recognition of the severe economic crisis facing the nation, state, and our
FOR CITY CLERK ONL
File No.:
Council Meeting:
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 2
city. Management employees requested to "go first" by formalizing these reductions in
their Resolution at the earliest possible date.
ANALYSIS:
The following reflects highlights of the Resolution establishing the compensation and
working conditions for the City of San Rafael Unrepresented Management group:
Term of the Agreement: July 1, 2009 through June 30, 2010.
Salary Increase: Managers will receive a 0.0% salary increase for the term of this
agreement. Additionally, Managers will be subject to a mandatory 13 -day furlough
which will result in a 5% pay reduction for the fiscal year. Managers further agree to
delete the provision which allows them additional personal leave off in exchange for the
furlough days.
Revenue Sharing: Delete all language referring to Revenue Sharing. Revenue
sharing is a practice that when the City had sufficient revenue, a portion of that revenue
would be used to move employee salaries that were below the city's goals towards the
goal.
Goals and Compensation Definitions: Delete the former compensation goal of
maintaining salaries at "the average plus one dollar" of the survey cities and the "highest
paid compensation" of the same or similar classifications in Marin County. Replace with
the goal to remain competitive with similar classifications on our labor market.
Health Insurance: Clean up language was added to the former healthcare reductions
which will allow a CPI increase to cafeteria plan flex dollar amounts not to exceed 3% a
year. Also, the City will make available a vision plan.
Retirement Plan: Managers agree to work with the City to identify and implement
retirement cost savings strategies. Also, miscellaneous (non -safety) Managers hired
after a future date, which will be identified specifically in a future amendment or
replacement to the Resolution, may be subject to a lesser retirement benefit tier,
modifications to tier characteristics, or other cost saving strategies.
Service Credit for Sick Leave: The ability to receive employment service credit for
retirement purposes for unused, accrued sick leave will no longer be available to new
Managers hired after June 30, 2009. This change will result in long term pension cost
savings to the City.
As evidenced by the above, the Management unit is demonstrating exemplary
leadership during an economic crisis. These reductions to salary and benefits will result
in both short term (such as through the furlough) and long term (such as through
pension reductions) City savings.
Separate actions on tonight's Council agenda will have the effect of also reducing
salaries by five (5%) percent for the Mayor and City Council, elected City Clerk and City
Attorney, and the Mid -Management unit — among other changes to those Resolutions.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
FISCAL IMPACT:
The fiscal impact of the one year Resolution will result in short and long term savings to
the City. There is no salary increase included in this Resolution. The 5% pay reduction
provision alone will save the City over $100,000. Pension savings will occur through
eliminating the service credit for sick leave and when a new, second tier is put in place.
The total cost of the vision plan for all managers for the year is approximately $2,200.
OPTIONS:
1. Adopt Resolution
2. Deny or modify the Resolution based on a revision of the total compensation
authority.
ACTION REQUIRED: Adopt resolution.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL REPEALING
RESOLUTION No. 12615 AND ADOPTING A NEW RESOLUTION ESTABLISHING THE
COMPENSATION AND WORKING CONDITIONS FOR
UNREPRESENTED MANAGEMENT EMPLOYEES ("MANAGERS")
(effective July 1, 2009 through June 30, 2010)
1. MANAGEMENT EMPLOYEES
The Management Employees of the City of San Rafael are the Management Job Class
Titles ("Managers", herein) enumerated in Exhibit "A", attached hereto and incorporated
herein. This Resolution shall constitute the compensation and conditions of
employment for the Managers for the period from July 1, 2009 through June 30, 2010.
2. SALARYAND COMPENSATION GOALS
A. GOALS AND COMPENSATION DEFINITIONS
It is the goal of the City Council to try to achieve a total compensation package for all
Managers that is competitive compared to similar cities in our labor market. The surrey
cities are Fairfield, Hayward, San Leandro, South San Francisco, Alameda, Napa,
Novato, and Santa Rosa. The Council's goal is to attract and retain the most qualified
Managers in accordance with the City's ability to pay.
Total Compensation for survey purposes shall be defined as: Top step salary (excluding
longevity pay steps), educational incentive pay, holiday pay, uniform allowance, auto
allowance, employer paid deferred compensation (except for such portion that may be
part of employee cafeteria plan), employer's contribution towards employees' share of
retirement, employer's retirement contribution, employer paid contributions toward
insurance premiums for health, life, long term disability, dental and vision plans,
management allowance, and employer paid cafeteria/flexible spending accounts.
B. COMPENSATION SURVEYS
In order to measure progress towards the above -stated goal, the City shall survey all
Management positions in the final year of the Resolution in advance of discussions
regarding a successor Resolution.
Identified survey positions from other agencies include positions that are filled as well
as those that may be unfilled, so long as the position is identified by the survey agency
as being on the salary schedule and having a job class description. The appropriate
survey positions will be selected for Management positions based upon similar work
and similar job requirements.
The City shall review the survey data for accuracy and completeness. The City shall
provide the survey data to all Managers.
C. SALARY INCREASES
1. July 1, 2009 Salary Increase. Effective July 1, 2009, the City shall provide a
0.0% salary increase to the pay range for all Management classifications covered
by this Resolution (Exhibit "B").
D. CAR ALLOWANCE
All Managers identified in Exhibit "A" are eligible to have the option of use of a city car or a
monthly car allowance. The monthly car allowance paid to the Managers shall be $350.
3. INSURANCE
Health & Dental Insurance benefits are prorated for part-time employees in accordance
with the percentage of full-time work schedule. Domestic partners who are registered
with the Secretary of State and same-sex spouses are considered dependents under
these benefits. Pertinent taxes will be applied to coverage provided to registered
domestic partners and same sex spouses as required by federal and state laws.
A. HEALTH INSURANCE
1. Health Insurance for Active Employees. 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, shall receive a monthly flex dollar allowance to purchase benefits under the
full flex cafeteria plan. The monthly flex dollar allowance effective January 1, 2009
is:
For employee only: $ 508.30
For employee and one dependent: $ 1016.60
For employee and two or more dependents: $ 1321.58
Flex dollar allowances shall increase on January 1, 2010 and subsequent years 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
2
2009, a single employee's monthly flex dollar allowance for health is $508.30, of
that amount, $101.00 has been designated by CalPERS as the City's monthly
PEMHCA contribution. The balance of $407.30 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.
2. Health Insurance for Retirees
a. Managers Hired 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 Management position (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. The City's contribution
towards the coverage of retirees under this subsection (3.A.2.a) shall be the
PEMHCA minimum contribution as determined by CalPERS on an annual basis.
On a monthly basis, the City shall make a longevity payment into the City's
401(h) plan. The City's monthly contribution towards the City's 401(h) plan shall
be the difference between the PEMHCA minimum contribution and the premium
cost of coverage, for the retiree and the retiree's spouse/registered domestic
partner or surviving spouse/registered domestic partner and/or qualified
dependent children's coverage under PEMHCA up to the maximum contribution
the City makes towards the cost of coverage of an active employee hired prior to
April 1, 2007. The City's contribution towards the City's 401(h) account shall
remain in effect for the retired manager's life and that of the retired manager's
spouse/registered domestic partner or surviving spouse/registered domestic
partner.
As described in this subsection, the City shall reimburse retired managers and
their spouses or registered domestic partners the Medicare Part B standard
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premium amount, (i.e. $96.40 for 2009), 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 manager
and/or the retired manager's spouse/registered domestic partner or surviving
spouse/registered domestic partner. This reimbursement shall remain in effect
for the retired manager's life and that of the retired manager's spouse/registered
domestic partner or surviving spouse/registered domestic partner.
b. Managers hired 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 position (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 (3.A.2.b) shall be the PEMHCA
minimum contribution as determined by CalPERS on an annual basis.
On a monthly basis, the City shall make a longevity payment into the City's
401(h) plan. The City's monthly contribution towards the City's 401(h) plan 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 retiree's dependents. The City's contribution
towards the City's 401(h) account shall cease on the retired manager's death. The
City shall not be responsible for reimbursing retired managers and/or their spouses
for any Medicare premiums paid by the retired manager and/or the retired
manager's spouse or surviving spouse.
c. Managers hired 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 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 (3.A.2.c) shall be the PEMHCA
minimum contribution as determined by CalPERS on an annual basis. The City
shall not be responsible for reimbursing retired managers and/or their spouses for
any Medicare premiums paid by the retired manager and/or the retired manager's
spouse or surviving spouse.
B. LIFE INSURANCE
The City shall provide a basic group life insurance plan equal to two times the
employee's annual salary, not to exceed $150,000.
C. LONG-TERM DISABILITY INSURANCE
The City shall provide long term disability (LTD) insurance, at no cost to the employee,
with a benefit of two-thirds (2/3) of the employee's monthly salary, up to a maximum
benefit of $7,500 (reduced by any deductible benefits).
D. DENTAL INSURANCE
The City shall make available to 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 employee and eligible dependents.
E. EMPLOYEE ASSISTANCE PLAN
The City provides an Employee Assistance Program (EAP) with confidential personal counseling
on work and family related issues such as eldercare, substance abuse, etc. Supervisors may
also utilize the EAP to refer employees to counselors for work related assistance.
4. RETIREMENT
A. EMPLOYER PAID MEMBER CONTRIBUTION (EPMC)
Each Manager is responsible for paying the full cost of their employee contribution rate as
established by the Marin County Employee Retirement Association.
B. COLA
Managers participating 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).
C. RETIREMENT PLAN
The City shall provide the Marin County Employee Retirement Association 2.7% @55
retirement program to all miscellaneous Managers subject to Marin County Employee
Retirement Association procedures and regulations and applicable 1937 Act laws.
Managers agree to work with the City to identify and implement retirement cost savings
strategies. Managers are interested in investigating a retirement administrator change
to CalPERS. The City will share the forthcoming financial comparison study with
Managers when complete.
Miscellaneous (non -safety) Managers hired after a future date, which will be identified
specifically in a future amendment or replacement to this Resolution, may be subject to
a lesser retirement benefit tier, modifications to tier characteristics, or other cost saving
strategies.
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D. SERVICE CREDIT FOR SICK LEAVE
Managers who are eligible to accrue sick leave and who retire from the City of San
Rafael, on or after 07/01/95 and within 120 days of leaving City employment (excludes
deferred retirements), shall receive employment service credit (incorporated from
Resolution #9414, dated July 17, 1995), for retirement purposes only, for all hours of
accrued, unused sick leave (exclusive of any sick leave hours they are eligible to
receive and they elect to receive in compensation for at the time of retirement, pursuant
to Section 5-A of this Resolution). This provision will no longer be available to
Managers hired after June 30, 2009.
E. MANAGEMENT ALLOWANCE
Pursuant to Resolution No. 10657, the City established a Defined Contribution Retirement
Plan for Managers. All rules related to this plan shall be governed by the Plan
document as amended. Current contribution is three percent (3%) of base salary.
Eligible employees shall have a one-time option of electing an employer contribution
(pre-tax) to their PARS account or an after tax payment in the form of a management
allowance. 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.
5. LEAVES OF ABSENCE
A. SICK LEAVE
Managers shall earn sick leave credits at the rate of one (1) working day per month°
commencing with the date of employment. Accrued sick leave may be used during their
probationary period.
Managers who leave City service in good standing shall receive compensation (cash in)
of all accumulated, unused sick leave based upon the rate of three percent (3%) for
each year of service up to a maximum of fifty percent (50%) of their sick leave balance.
In the event of the death of an employee, payment for unused sick leave (based upon
the previously stated formula) shall be paid to the employee's designated beneficiary.
Managers may accrue unlimited sick leave for usage purposes. However, a maximum
of one thousand, two hundred hours (1,200) accrual applies for cash -in purposes at the
time of City separation.
Managers may use sick leave prior to completion of probation. In recognition of
Managers' exempt status under FLSA, time off for sick leave purposes shall not be
deducted from a Manager's sick leave accrual, unless the time is 7.5 or more
consecutive work hours.
Use of sick leave for work-related injuries or illnesses shall not be required when it is
determined by the treating physician that this status is permanent and stationary.
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B. VACATION LEAVE
1. Vacation Accrual - Vacation is accrued when an employee is on pay status
and is credited on a bi-weekly basis. Eligible employees accrue vacation at the
following rate for continuous service performed in pay status:
2.
Years of service
Leave Accrual rate/yearly
1-5 years
15 days
6 years
16 days
7 years
17 days
8 years
18 days
9 years
19 days
10 years
20 days
11 years
21 days
12 years
22 days
13 years
23 days
14 years
24 days
15 plus years
25 days
In recognition of Managers' exempt status under FLSA, time off for vacation leave
purposes shall not be deducted from a Manager's vacation accrual unless the time
is 7.5 or more consecutive work hours.
3. Administration of Vacation Leave
The City Manager may advance vacation leave to a Manager; prior approval is
required. Managers may accrue a maximum of 250 hours of vacation. Vacation
leave accrual shall resume once the employee's accumulated vacation leave
balance falls below the accrual limit of 250 hours. Managers who terminate their
employment shall be paid in a lump sum for all accrued vacation leave earned
prior to the date of termination. Managers may not utilize accrued vacation,
administrative leave time, or personal leave time to extend their retirement date
and service credit at the end of their city service.
4. Annual Option for Payment of Accrued Vacation Leave
A Manager who has taken at least ten (10) days of vacation in the preceding
twelve (12) months, may request that his/her accrued vacation, not to exceed fifty-
two and 1/2 (52.5) hours, be paid to him/her in cash. The request may be granted
at the discretion of the City Manager. Managers may not cash -in more than fifty-
two and 1/2 (52.5) hours within any twelve (12) month period.
C. ADMINISTRATIVE LEAVE
Managers shall receive seven (7) Administrative Leave days each calendar year subject
to the approval of the City Manager. An additional three (3) days may be granted at the
discretion and with approval of the City Manager. Unused Administrative Leave shall not
carry over from one calendar year to the next, nor shall unused Administrative Leave
balances be paid to a Manager upon his/her resignation.
In recognition of exempt status under FLSA time off for Administrative leave purposes shall
not be deducted from a Manager's administrative leave accrual, unless the time is 7.5 or more
consecutive work hours.
D. HOLIDAYS
City shall provide eleven designated holidays and two floating holidays per calendar year to
Managers. The hours for the floating holidays are automatically added to an employees' vacation
accrual on a semi-annual basis.
E. BEREAVEMENT LEAVE
In the event of the death of a Manager's spouse, child, parent, brother, sister, in-law(s), relative who
lives or has lived in the home of the employee, and/or another individual who has a legal familial
relationship to the employee and resided in the employee's household, the City shall provide
bereavement leave up to a maximum of three (3) days within the state and five (5) days out-of-state.
F. CATASTROPHIC LEAVE
All Managers shall abide by the City's Catastrophic Leave Policy.
6. EMPLOYMENT TERMS
A. WORK DAY
Unless otherwise designated, the normal business hours for vacation, sick and administrative
leave deduction and sick and administrative leave accrual purposes for Managers shall be 7.5
hours per day.
B. DRUG FREE WORK PLACE
All Managers shall abide by the City's Drug and Alcohol Policy.
C. FURLOUGH PLAN
Managers endorse the Furlough Program described in Exhibit °C."
D. PAY FOR PERFORMANCE EVALUATION SYSTEM
Managers shall be evaluated annually based upon the evaluation program adopted by the City
Council in October of 1996 and incorporated by reference herein.
E. OUTSIDE EMPLOYMENT
All Managers shall abide by the City's Outside Employment Policy.
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 6th day of April, 2009 by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, CITY CLERK
W
Exhibit A
Management Job Class Group
Assistant City Manager
Community Development Director
Community Services Director
Deputy City Manager / Economic Development Director
District Manager/District Engineer (SRSD)
Finance Director
Fire Chief
Human Resources Director
Library Director
Police Chief
Public Works Director
W:\Management Services- WorkFile\HR- WorkFile\Human Resources\MOU'S\MOU's 2009\Management 09-10\Exh A_ Management job
class groupAs 4/2/2009_2:18 PM
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MANAGEMENT SALARY RESOLUTION
EXHIBIT "C"
FURLOUGH PROGRAM
The City of San Rafael and the Management Group employees recognize the current economic
condition of the State of California and the City of San Rafael. Through this recognition and in a
cooperative spirit the City of San Rafael and these employees have worked expeditiously on the
development of a Furlough Program. This does not mean the City will necessarily implement
furloughs; but in the event it is necessary to implement due to continued economic problems in the
City of San Rafael the procedures for this Furlough Program shall provide for both Voluntary Time Off
(herein described as VTO) and Mandatory Time Off (herein described as MTO).
Voluntary Time Off (VTO).
The needs of the City and the respective departments (as determined by the Department Director and
City Manager) will need to be considered in the actual granting of VTO. Any VTO time granted and
the resulting savings will have a corresponding impact on the time needed through MTO.
1. An employee's VTO time would count in determining how many hours of MTO an employee
needed to take during the fiscal year.
2. Employees who take VTO at a time other than when MTO is taken by other employees will
have to take vacation leave, compensatory time off or leave without pay if the MTO results in
the closure of the department.
Mandatory Time Off (MTO).
The City will attempt to schedule MTO time in blocks of days (between Xmas and New Years) or
individual days next to scheduled holidays and/or weekends.
1. Employees may not take paid vacation time in lieu of designated MTO time.
2. For retirement calculation purposes of the MTO, the City shall follow the policies and
procedures of the Marin County Employees` Retirement Association (MCERA) at the time of
the furlough.
3. Any employee who notifies the City no later than 07/30/09 of their retirement date and retires
from the City during FY 09-10 shall be exempted from the MTO requirements. If said
employee did not retire during FY 09-10 as stated, said employee would be docked in pay an
amount equivalent to the number of MTO hours taken by other represented employees.
4. MTO time shall apply toward time in service for step increases, completion of probation, and
related service credit subject to the policies and procedures of the Marin County Employees'
Retirement Association (MCERA).
Other Terms and Conditions.
1. The MTO salary reduction shall be limited to a maximum five percent (5%).
2. Should the City experience a financial windfall during the fiscal year that furloughs are
implemented, the City agrees to re -open discussions on this Furlough Program.
3. The VTO/MTO salary reduction is intended to be permanent for the term of this contract.
