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HomeMy WebLinkAboutHR Elected City Clerk & City Attorney Compensation 2013c►rY of Agenda Item No: 3.1 Meeting Date: August 19, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Management Services Prepared by: Anil Comelo, HR Director��..=� City Manager Approval: SUBJECT: 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, 2013 THROUGH JUNE 30, 2014) RECOMMENDATION: Adopt Resolution BACKGROUND: Since 2008, 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 and/or pay reductions, an early retirement program, a hiring freeze, layoffs and other actions. Employees have participated in concessions for the last four years. These concessions were negotiated and agreed to with the employee groups in an effort to reduce costs during years of significant budget deficits. For the last two years, the value of the concession equaled a 4% reduction in Total Compensation. The most recent MOUS and Resolutions expired on June 30, 2013. The Elected City Clerk and Elected City Attorney recognize the impact of the recent recession on the City's finances, the burden of the rising cost of employer pension contributions, and the concessions agreed to by City employees. The resulting resolution addresses several important issues and does not include a salary increase during this one year agreement. However the agreement provides a modest increase in benefits. ANALYSIS: The following reflects highlights of the resolution for the Elected City Clerk & Elected City Attorney that is consistent with the guidelines authorized by the City Council. 1. Term of the Agreement: July 1, 2013 through June 30, 2014. 2. Salary Increase: There will be no salary increase for job classes represented by this bargaining group during the term of this Resolution. 3. Pension: These elected officials will increase pension contributions by 1 % of pensionable compensation. FOR CITY CLERK ONLY File No.: Council Meeting: s Disposition: 4J1LJ SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 4. Management Allowance: The City shall contribute 1 % of pensionable compensation toward the Management Allowance option. The City will additionally contribute the value of .6% of Total Compensation to a Management Allowance. Part of this increase will be one-time and part will be ongoing per the specific terms in the Resolution. FISCAL IMPACT: The agreement will result in a Total Compensation increase of approximately 0.6% for the one year agreement. OPTIONS: • Approve the Resolution to implement the above recommendations. • Request changes to the recommendations. • Direct staff to develop alternatives to the recommendations. ACTION REQUIRED: Adopt Resolution as presented. ATTACHMENTS: • Resolution between the City and the Elected City Clerk and Elected City Attorney RESOLUTION NO. 13599 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, 2013 THROUGH JUNE 30, 2014) 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, 2013 through June 30, 2014. 1) SALARY a) Salary Increase Effective July 1, 2013, the City shall provide a 0% increase to the salary for the City Clerk and City Attorney in accordance with the chart below. MONTHLY SALARY Effective Date City Attorney City Clerk July 1, 2013 $9,137 $8,810 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 with the paycheck of December 15, 2013. Employee only: $ 589.26 Employee and one dependent: $ 1178.52 Employee and two or more dependents: $ 1532.08 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 CaIPERS 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 CaIPERS 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 CaIPERS 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, 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 officials 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 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. 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. 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. u �,: 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 compliance with then existing IRS regulations. Effective September 1, 2013 the City will contribute with each paycheck 1.59% of base salary towards the Management Allowance option. Additionally, the City will make a one-time PARS contribution of 0.53% of annual base salary in January 2014. To comply with IRS rules, employees who had previously elected to have the City's Management Allowance contributions deposited in a PARS account will have their contributions increased by the new City contribution percentage of 1.59%. Employees who elected the cash option will similarly receive an equivalent amount in cash. 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 19th day of August, 2013 by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips None None ESTHER C. BEIRNE, CITY CLERK