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HomeMy WebLinkAboutHR Mid-Management Compensation 2014• Agenda Item No: k Meeting Date:---J-une 16, 2014 Department: Management Services Prepared by: Deirdre Dolan, HR Director City Manager Approval�1044& SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED MID -MANAGEMENT EMPLOYEES ("MID-MANAGERS'9) (JULY 19 2014 THROUGH JUNE 309 2016) 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. Management employees have participated in the same concessions that were negotiated and agreed to with the bargaining units in an effort to reduce costs during years of significant budget deficits. During fiscal year 2011-2012, management employees participated in concessions equal to a 4% reduction in Total Compensation. The most recent resolution, which is effective through June 30, 2014, restored the 4% reduction and provided a modest increase in benefits (equivalent to less than 1 % of compensation). The City recognizes that employees have made significant concessions over the years due to the impacts of the recession, and that over the past two years the City's financial status has been improving. This Resolution provides an increase in compensation to the Mid -Management Employees who have not received a salary increase in six years, since July 2008. ANALYSIS: The following reflects highlights of the resolution for the Mid -Management employees, consistent with the guidelines authorized by the City Council. 1. Term of the Resolution: July 1, 2014 through June 30, 2016 2. Salary Increase: Mid -Managers in this group will receive a 3.0% salary increase effective July 1, 2014 and a 3.0% increase effective July 1, 2015 3. Management Allowance: Mid -Managers will receive an additional one-time contribution of .36% of annual base salary in July 2014 and July 2015. FISCAL IMPACT: The agreement will result in an increase of 3.0% of base salary for each year of this agreement in addition to a one-time contribution of 0.36% in July 2014 and July 2015. --s FOR CITY CLERK ONLY dile No.: 111i III IIIiIIII1;II1II1;1;1 r1ill!'111111111 I i i ;11 j - - a q UJAMMA ZA 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 Establishing -the Compensation and Working Conditions for Unrepresented Mid Management Employees ("Mid -Managers") (July 1, 2014 Through June 30,2016) 1 RESOLUTION NO. 13742 RESOLUTION lBLISHING THE COMPENSATION AND WORKING CONDITIONSFOR UNREPRESENTED MID -MANAGEMENT EMPLiYEES ("MID-MANAGER (July 1, 'through 30, Junes 11. MID -MANAGEMENT EM The Mid -Management Employees of the City of San Rafael are the Mid -Management Job Class Titlel_ ("Mid -Managers", herein) enumerated in Exhibit A, attached hereto and incorporated herein. This Resolution shall constitute the compensation and conditions of employment for the Mid -Managers fo, the period from• • dj&MA WAI ■' ! *A 1 # ' 4V 40 "• "• • !. • •. !. • ! • ! !. • i" "• 40 Z 4V 40 war• • • •. • . • •� • ! . ! 1 . awo 00 of 14�ft AM • .. .. AM .i" .• "" ! i i •" . • i . !" i • • . . i " •• •• •• •. • •• •• i .• • . i # C. SALARY INCREASES Effective the pay period including July 1, 2014, the City will increase base wages for all employees by 3.0%. Effective the pay period including July 1, 2015, the City will increase base wages for all employees by 3.%. 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 as of January 1, 2014 is: Employee only: $ 589.2i, Employee and one dependent: $ 1178.52 Employee and two or more dependents: $ 1532.08 q =111 !11111 q iiqi pilli ir p;i i Employee only: $ 603.99 Employee and one dependent: $ 1207.98 Employee and two or more dependents: $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 CaIPERS o an annual basis. The increase to flex dollar allowances shall not exceed 3% for any given year.1 The City shall make available to employees an additional flex dollar allowance to fund a basic t( 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 ;z�mployee'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. Ml*scellaneous Allowance for Employees hl*red 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. For Mid -Managers who retired before December 1, 2001, the City's contribution to retiree medical premiums shall be the PEMHCA minimum contribution as designated by PEMHCA on an annual basis. Mid -Managers who are 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. Longev*Ity 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 N $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 Mid -Manager's death. The City shall not be responsible for reimbursing retired Mid -Managers and/or their spouses for any Medicare premiums paid by the retired Mid -Manager and/or the retired Mid -Manager's spouse or surviving spouse. IN i Mid -Managers who are 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 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 (3.1.2.c) shall be the PEMHCA minimum contribution as determined by CalPERS on an annual basis. The City shall not be responsible for reimbursing retired Mid -Managers and/or their spouses for any Medicare premiums paid by the retired Mid -Manager and/or the retired Mid -Manager's spouse or surviving spouse. The City shall additionally make available a retiree health care trust to enable these employees to prefund retiree health care premiums while employed by the City. The retiree health care trust shall be funded by the mandatory annual conversion of 50 hours of sick time in service on July 1 of each year, provided an employee has a remaining balance of 75 hours of sick leave after the conversion. B. LIFE INSURANCE The City shall provide a basic group life insurance plan equal to his/her annual salary at no cost to the employee. 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 $7500 (reduced by any deductible benefits). 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 Mid -Manager is responsible for paying the full cost of their employee contribution rate as established by the Marin County Employee Retirement Association. 9 Additionally, . one-time Management Allowance contribution of i i of •salary# and # To comply with IRS rules, employees who had previously elected to have the City's Management Allowance c• ! • deposited in . PARS account will have theircontributions inc". i by new City contribution percentage. Employees who elected the cash option wi,ll similarly receive an equivalent LEAVES5. O ABSENC4 A. Mid-Managers shall earn sick leave credits at the rate of one (1) working day per month commencin with the date of employment. Accrued sick leave may be used during their probationary period. Mid -Managers •leave service in good . ! ! 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 maximumof percent i of balance. i event of death • f an employee, payment for unused sick leave (based upon the previously stated formula) shall be paid to the employee's designated beneficiary. Mid -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. Mid -Managers # i leave •• to completion, • probation. recognition !•! ! Mid -Managers' Mid - Manager's .•i leave # i ## unless i employee •• ei absent • i • i full • ! 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. 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: Years of service Leave Accrual rate/ye, a ly 1-5 years 15 days 5 years 15 days 7 years 17 days 8 years 18 days g years 19 days 10 years 20 days 11 years 21 days 12 years 22 days 13 yearn 23 days 14 years 24 days 15 plus years 25 days In recognition of Mid -Managers' exempt status under FLSA, time off for vacation leave purposes shall not be deducted from a Mid -Manager's vacation accrual unless the employee is absent for the full work day. �.FM• ! -. 101 The City Manager may advance vacation leave to a Mid -Manager; prior approval is required. Mid -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. Mid -Managers who terminate their employment shall be paid in a lump sum for all accrued vacation leave earned prior to the date of termination. Mid -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. 3. Annual Option for Payment of Accrued Vacation Leave A Mid -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. Mid -Managers may not cash -in more than fifty-two and 1/2 (52.5) hours within any twelve (12) month period. C. ADMINISTRATivE LEAvE Mid -Managers shall receive seven (7) Administrative Leave days each calendar year subject to the approval of the department director and the City Manager. An additional three (3) days may be grantet' at the discretion and with approval of the department director and 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 Mid -Manager upon his/her resignation. In recognition of exempt status under FLSA time off for Administrative leave purposes shall not be deducted from a Mid -Manager's administrative leave accrual, unless the employee is absent for the full work day. D. HOLIDA YS 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 2ccrual on a semi-annual basis. E. BEREAVEMENT LEAvE In the event of the death of a Mid -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. CATAsmopmcLEAvE All Mid -Managers shall abide by the City's Catastrophic Leave Policy. A. HouRs OF WORK The WORK WEEK will reflect thirty-seven and one-half (37.5) hours for all represented job classes. Unless otherwise designated, the normal business hours for vacation, sick and administrative leave deduction and sick and administrative leave accrual purposes for Mid -Managers shall be 7.5 hours per day. B. DRUG FREE WORK PLACE All Mid -Managers shall abide by the City's Drug and Alcohol Policy. C. FURLOUGH PLAN Mid -Managers endorse the Furlough Program described in Exhibit C attached to this Resolution. 9 D. PAY FOR PERFORMANCE EVALUATION SYSTEM Mid -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 Mid -Managers shall abide by the City's Outside Employment Policy. CITY VEHICLE Under limited circumstances, a city vehicle may be provided to a Mid -Manager if it is determined to be needed to complete his/her job duties and upon approval of the City Manager. G. UNIFORM ALLOWANCE If required to wear a uniform which is not provided by the City, employee shall receive an annual uniform allowance of $445 per year, paid in two installments, in June and December. 1, 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 held on the 16 1h day of June, 2014 by the following vote, to wit: 1 '1111-1:01 "TW F, 94 iy� 1 -01• N ME= ESTHER C. BEIRNE, CITY CLERK INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A 'CONTRACT, AGREEffiEr'IT, ORDINANCE OR RESOLUTION BEFi. APPROVAL COUNCIL FROM: Deirdre Dolan, Human Resources Director DEPARTMENT: Pj . Human Resources ae Management r a DATE: - . 2014 111 f! TITLE OF !iCUMENT: RESOLUTIONj --_������.COMPENSATIONAND WORKING CONDITIONSi • UNREPRESENTED ! • ' i("MID-MANAGERS")i 'i i2016) Department Head (signature) APPROVED AS COUNCIL. /AGENCY AGENDA ITEM: City Manager (signature) City Attorney (signatur