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Agenda Item No: 7
Meeting Date: April 6, 2009
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Management Services Department
Prepared by: Jim Schutz, L 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 THE ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY
DURING FISCAL YEAR 2009-10
RECOMMENDATION: Adopt Resolution.
BACKGROUND:
The City Clerk and City Attorney'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 the City Clerk and City Attorney effective
January 1, 2009.
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 City Clerk and City
Attorney joined the Management unit in coming forward and requesting that their salary
and benefits be reduced to aid the City in weathering the recession.
ANALYSIS:
The following reflects highlights of the Resolution establishing the compensation and
working conditions for the City of San Rafael Elected City Clerk and Elected Part Time
City Attorney:
Term of the Agreement: July 1, 2009 through June 30, 2010
Salary Increase: City Clerk and City Attorney and will receive a 0.0% salary increase
for the term of this agreement. In addition, the City Clerk and City Attorney have both
volunteered to take a one-time 5% pay reduction for the fiscal year. This reduction will
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
match the impact that most employees will be experiencing through the furlough
program.
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: The City Clerk and City Attorney agree to work with the City to
identify and implement retirement cost savings strategies. Also, future City Clerks and
City Attorneys who are elected after the incumbent City Clerk and incumbent City
Attorney, may be subject to a lesser retirement benefit tier, modifications to tier
characteristics, or other cost saving strategies to be identified specifically in a future
amendment or replacement to this Resolution.
As evidenced by the above, the City Clerk and City Attorney are demonstrating
exemplary leadership during an economic crisis. 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, the Management unit, and the Mid -Management unit— among other
changes to those Resolutions.
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 will save the City over $10,000. Long term pension savings will occur when a
new, second tier is put in place. The annual total cost of the vision plan is
approximately $500.
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. 12616 AND ADOPTING A NEW RESOLUTION
ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR THE
ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY
(Effective July 1, 2009 through June 30, 2010)
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, 2009
through June 30, 2010.
1) SALARY
a) Salary Increase Effective July 1, 2009, the City shall provide a 0.0% 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 5%
pay reduction for the fiscal year. This reduction will match the impact that many
employees will be experiencing through the furlough program.
MONTHLY SALARY
Effective Date
City Attorney
City Clerk
July 1, 2009
$9,137
$8,810
b) Car Allowance An incumbent who holds the City Clerks' 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, 2009 is:
Employee only: $ 508.30
Employee and one dependent: $ 1016.60
Employee and two or more dependents: $ 1321.58
Flex dollar allowances shall increase in 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 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.
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)
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.
The City Clerk/City Attorney agree to work with the City to identify and implement
retirement cost savings strategies. The City Clerk/City Attorney are interested in
investigating a retirement administrator change to CalPERS. The City will share the
forthcoming financial comparison study with the City Clerk/City Attorney when
complete.
Future City Clerks and City Attorneys who are elected after the incumbent City Clerk
and incumbent City Attorney may be subject to a lesser retirement benefit tier,
modifications to tier characteristics, or other cost saving strategies to be identified
specifically in a future amendment or replacement to this Resolution.
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 COLA 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 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 6th day of April, 2009 by the following vote, to wit:
AYES: COUNCILMEMBERS:''
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, CITY CLERK
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