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HomeMy WebLinkAboutHR Executive Management Compensation 2013• Prepared by: Anil Cornelo, HR Director § City Manager Approval: SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES ("EXECUTIVES91) (July 1, 2013 through June 30, 20 14) :4*4# i i #!Lel 0 1 IIA: 0 0 a BACKGROUND: Since 2008, the City of San Rafael has had to make significant budget balancing deons to deal with the impacts of the national recession. Some of the person nel-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 exempt Executive group includes 9 managers in non -safety positions and 2 safety managers. Executive employees 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 Executive group 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. Pensi*ona. Management employees will increase pension contributions by 1 % of pensionable compensation® 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 FOR CITY CLERK ONLY Council Meeti*ngo 0 Disposition 4; pelevl SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paim. 2 Compensation to a Management Allowance. Part of this increase will be onee and part will be ongoing per the specific terms in the Resolution. 5. Retiree Health: Employees hired after January 1, 2009 will participate in a health reimbursement account in lieu of receiving retiree medical benefits. The trust shall be funded by 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. FISCAL IMPACT: The agreement will result in a Total Compensation increase of approximately 0.6% ($19,359) for the one year agreement. 111PTIONS: • Approve the Resolution to implement the above recommendation • Request changes to the recommendations. • Direct staff to develop alternatives to the recommendations. ACTION REQUIRED: Adopt Resolution as presented. ATTACHMENTS - Resolution between City and Unrepresented Management Employees Salary Schedule I "kESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES ("EXEC UTIVES") (July 1, 2013 through June 30, 2014) 1. EXECUTIVE MANAGEMENT EMPLOYEES The Executive Management Employees of the City of San Rafael are the Executive Management Job Class Titles ("Executives", herein) enumerated in Exhibit A, attached hereto and incorporated herein. This Resolution shall constitute the compensation and conditions of employment for the Executives for the period from July 1, 2013 through June 30, 2014. A. GOALS AND COMPENSATION DEFiNiTIoNs It is the goal of the City Council to try to achieve a total compensation package for all Executives that is competitive compared to similar cities in our labor market. The survey 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 Executives 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, Executive 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 Executive 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 Executive Management positions based upon similar work and similar job requirements. TheCity shall review the survey data for accuracy and completeness. The City shall provide the survey data to all Executives. C. SALARYINCREASES There will be no general salary increase (COLA) during the term of the resolution. D. CAR ALLOWANCE The monthly car allowance paid to the Executives shall be $350. Executives identified in Exhibit A may be eligible to have use of a city car in lieu of the monthly car allowance at the discretion of the City Manager. ■ 3.11INISURANCE Health & Dental Insurance benefits are prorated for part-time employees in accordance with th percentage of full-time work schedule. Domestic partners who are registered with the Secretary o State and same-sex spouses are considered dependents under these benefits. Pertinent taxes will bI applied to coverage provided to registered domestic partners and same sex spouses as required b federal and state laws. A. HEALTH INSURANCE 5. Health •Insurance for Active Employees. EffectiveJanuary 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 with the paycheck of December 15, 2013 is: 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 15 th 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 it 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 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. Wiscellaneous 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. I 2. Health Insurance for Retirees a. Executives 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 Executive 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 CaIPERS 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 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 Executives 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 Executive's life and that of the retired Executive's spouse/registered domestic partner or surviving spouse/registered domestic partner. b. Executives 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 Executives and/or their spouses for any Medicare premiums paid by the retired manager and/or the retired manager's spouse or surviving spouse. I c. Executives 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 2nd 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 Executives and/or their spouses for any Medicaro -tremiums paid by the retired manager and/or the retired 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. A. LIFE INSURANCE The City shall provide a basic group life insurance plan equal to two times the employee's annual salary. B. 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). C. 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. D. 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. Effective September 1, 2013, in accordance with MCERA and City administrative requirements, all Executive employees 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. IF. B. COLA Executives 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). Mr - C. rxETIREMENT PLAN The City shall provide the Marin County Employee Retirement Association 2.7% @55 retirement program to all miscellaneous Executives 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, 2013 will receive an MCERA retirement benefit at the formula 2% at 55, calculated based on the average of their highest three years of compensation, in accordance with MCERA regulations. The annual pension adjustment shall be a maximum of 2% COLA. Minimum retirement age is 55. MP AW MIP 1W 0, ♦ ♦ ♦ OF W 40 40 Aft 1W ♦ 1W Aft 4W 1W AIL 1W Ift # i # 4W .Ift W I 1 1 i A. r vE Executives 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. Executives 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. Executives may accrue unlimited sick leave for usage purposes. However, . maximum thousand, two hundred hours (1,200) accrual applies for cash -in purposes at the time of City separation. underExecutives may use sick leave prior to completion of probation. In recognition of Executives' exempt status FLSA, time • for purposes not be deductedfrom. Manager's leave accrual, unless the employee is absent for the full workday. Use of sick leave for work-related injuries or illnesses shall not be required when it is determined by the treating physician . permanentandstationary. 1. Vacation 1ccrual - Vacation is accrued when an employee is on pay statusand 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/yearly 1-5 years 15 days 5 years 15 days 7 years 17 days 3 years 13 days 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 shallIn recognition of Executives' exempt status under FLSA, time off for vacation leave purposes full workday. 2. 1 • ! of Vacafion Leave The City Manager may advance vacation leave to a Manager; prior approval is required. Executives may accrue a maximum of 250 hours of vacation. Vacation leave accrual shall resume i i i i employee's !! i_ balance falls below e accrual limit of 250 hours. Executives who terminate their employment shall be paid in a lump sum for all rA accrued vacation leave earned prior to the date of termination. Executives 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 Qptoion for Payment of Accrued Vacafi'on 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. Executives may not cash -in more than fifty-two and 1/2 (52.5) hours within any twelve (12) month period. C. ADMINISTRATivELEAvE Executives shall receive seveln (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 employee is absent for the full workday. D. HOLIDA YS City shall provide eleven designated holidays and two floating holidays per calendar year to Executives. The hours for the floating holidays are automatically added to an employees' vacation accrual on a semi-annual basis. E. BEREAVEMENT LEA vE In the event of the death of a Manager's spouse, child, parent, brother, sister, in-law(s), relative wh#, 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 Executives shall abide by the City's Catastrophic Leave Policy. A. HOURS OF WORK The WORK WEEK will reflect thirty-seven and one-halfhours 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 Executives shall be 7.5 hours per day. The 37.5 hour work week will begin July 1, 2013, at which time employees shall return to the work schedule worked prior to implementation of the 36 -hour work week, unless otherwise arranged with the Department Director. B. DRUG FREE WORK PLACE All Executives shall abide by the City's Drug and Alcohol Policy. N 0 0� C. FURLOUGH PLAN Executives endorse the Furlough Program described in Exhibit B. D. PAY FOR PERFORMANCE EVALUATION SYSTEM Executives 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 Executives shall abide by the City's Outside Employment Policy. 1, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was ,iuly and regularly introduced and adopted at a regularmeeting of the Council of said City held on the 1 91h day of August, 2013 by the following vote, to AYES: COUNCIL MEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES*- COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, CITY CLERK N 0 womw ,I. ## • Mo 4W 40 ol of i womw ,I. ,.XECUTIVE MANAGEMENT SALARY RESOLUTION EXHIBIT "B" IGNXKW�:J Both 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 MTOis taken by other employees will have to take vacation leave, compensatory time off or leave without pay if the MTO results 1 the closure of the department. I Mandatory Time Off (MTO). The City will attempt to schedule MTO time in blocks of days (between Christmas 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 07/30/11 of their retirement date and retires from the City during FY 11-12 shall be exempted from the MTO requirements. If said employee did not retire during FY 11-12 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%) reduction in work hours/pay for the fiscal year. When the maximum MTO reduction (5%) is implemented, the involved employee shall be credited with three (3) days of float time. 2. Float Time accrued through the MTO Program must be taken in the fiscal year following the furlough, with supervisory approval, or the leave will be forfeited. The float days have no cash value upon termination of employment. 3. 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. 4. The VTO/MTO salary reduction is intended to be permanent for the term of this contract.