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HomeMy WebLinkAboutHR Mid-Management Compensation 2013Prepared by: Anil Cornelo, HR Director F City Manager Approval: A SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITION�. FOR UNREPRESENTED MID -MANAGEMENT EMPLOYEES ("MID -MANAGERS") (July 1, 2013 through June 30, 2014) 1 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 person nel-related steps taken t 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 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. Representatives from both the City and Mid -Management 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. This resolution addresses several important issues and does not include a salary increase during this one year agreement. However, this agreement provides a modest increase in benefits. ANALYSIS: The following reflects highlights of the resolution and 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.- Mid -Management employees will increase pension contributions by 1 % of pensionable compensation earnings. 4. Management Allowance.- The City shall contribute I% 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. Ffle No.: FOR CITY CLERK ONLY Council Meeting: Disposition.- CE5EX- L SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paze. 2 5. Ret"Iree 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% ($26,646) for the one year agreement. *PTIONS: • 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 Mid -Management Employees • Salary Schedule 0 0 RESOLUTION NO. 13598 RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR UNREPRESENTED MID -MANAGEMENT EMPLOYEES ("MID -MANAGERS") (July 1, 2013 through June 30, 2014) 1. ' MID -MANAGEMENT EMPLOYEES The Mid -Management Employees of the City of San Rafael are the Mid -Management Job Class Titles ("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 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 Mid -Managers 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 Mid -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, 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 4isability, 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 the identified Management benchmark positions (Exhibit B) to assess the related Mid -Management positions in the final year of the Resolution in advance of discussions regarding a successor Resolution. Identified benchmark positions from other agencies include positions that are filled as well a those that may be unfilled, so long as the benchmark position is identified by the survey agenc as being on the salary schedule and having a job class description. Other city/agency position are established as benchmark positions in San Rafael's compensation survey based upon simila work and similar job requirements. 11 The City shall review the benchmark and related survey data for accuracy and completeness. The City shall provide the survey data to all Mid -Managers. During the term of this Resolution, Mid -Managers agree to work with the City to identify and implement a new benchmark strategy guch as an alignment of Mid -Manager salaries with the respective department director, C. SALARY INCREASES There will be no general salary increase (COLA) during the term of the resolution. 3.11NSURANCE 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 Im Im raxes will be applied to coverage provided to registered domestic partners and same sex spouses as required by federal and state laws. A. HEALTH INSURANCE Health Insurance for Active Emgloyees. 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 receiv a monthly flex dollar allowance to purchase benefits under the full flex cafeteria plan. I The monthly flex dollar allowance as of January 1, 2013 is: Employee only: $ 572.09 Employee and one dependent: $1144.19 r- .mployee and two or more dependents: $1487.46 The monthly flex dollar allowance effective with the paycheck of December 15, 2013 is: Employee only: $ 589.2i 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 " 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 anc 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 I 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 CalPERS as the City's monthIl 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 s pouse/de pendent 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. Wscellaneous, 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 Decemberthe City's contribution to retiree medical premiums shall be the PEMHCA minimum contribution as designated by PEMHCA 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)up to $442 per month. The City's contribution to the City's 401 (h) account shall remain in effect during the lifetime of the Mid -Manager and Mid -Manager's spouse/registered domestic partner or surviving spouse/registered domestic partner. b. Mid -Managers who retired on or after December 1, 2001 from the Marin County Employees Retirement Association (MCERA) within 120 days of leaving their City of San Rafael Mid -Management position (and who comply with the appropriate retirement provisions under the MCERA laws and regulations) are eligible to receive upon retirement the PEMHCA minimum contribution as designated by PEMHCA 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 active Mid -Manager employees. The City's contribution to the City's 401 (h) account shall remain in effect during the lifetime of the Mid -Manager and Mid -Manager's spouse/registered domestic partner or surviving spouse/registered domestic partner. As described in this subsection, the City shall reimburse retired Mid -Managers 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 b.sis, This reimbursement shall remain in effect for the retired Mid -Manager's life and that of the retired Mid -Manager's spouse/registered domestic partner or surviving spouse/registered domestic partner. MIDAWMANAGERS HIRED ON OR AFTER APRIL 1, 2007 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 I under this subsection (3.A.2.b.) shall be the PEMHCA minimum contribution as 4etermined 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 Mid -Manager's death. The City shall not be responsible for reimbursing retired Mid -Managers and/or their gpouses for any Medicare premiums paid by the retired Mid -Manager and/or the retired Mid -Manager's spouse or surviving spouse. MID -MANAGER HIRED ON OR AFTER JANUARY 1, 2009 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.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 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 $750# (reduced by any deductible benefits). D. DENTAL INSURANCE The City shall make available to employees, an additional flex dollar allowance equal to $113 pe 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. I E. EmPL 0 YEE A SSIS TA NCE PLA N 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. 119 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. Effective September 1, 2013, in accordance with MCERA and City administrative requirement4s. all Mid -Management 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. I 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. B. COLA Mid -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 retireme program to all miscellaneous Mid -Manager subject to Marin County Employee Retireme Association procedures and regulations and applicable 1937 Act laws. This is based on a r employee's single highest year of compensation. I 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. D. SERVICE CREDIT FOR SICK LEA vE Mid -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 Mid -Managers hired after June 30, 2009. E. MANAGEMENT ALLOWANCE Pursuant to Resolution No. 10657, the City established a Defined Contribution Retirement Plan fo Mid -Managers. All rules related to this plan shall be governed by the Plan document a amended. Current contribution is three percent (3%) of base salary. Eligible employees sha have a one-time option of electing an employer contribution (pre-tax) to their PARS account or a after tax payment in the form of a management allowance. The City shall make Plan changes, a required from time to time, in order to have the Defined Contribution Retirement Plan remain i compliance with then existing IRS regulations. Effective September 1, 2013 the City will contribute with each paycheck 1.54% of base salary towards the Management Allowance option. S Additionally, . - . • Management Al! - contribution of • of annual base salaryJanuary 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. Employees who elected the cash option will similarly receive equivalent ! . ., A. SICK j vE leaveMid-Managers shall earn sick leave credits at the rate of one (1) working day per month commencing with the date of employment. Accrued sick leaveprobationary period. Mid -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 balance. ,teath of an employee, payment for unused sick leave (based upon the previously stated formula) i,hall be paid to the employee's designated beneficiary. Mid -Managers 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 Citim separation. leaveMid-Managers may use sick leave prior to completion of probation. In recognition of Mid Managers' exempt status under FLSA, time off for sick leave purposes shall not be deducte from a Mid -Manager's sick . • l, unless the employee is absent for the full work day. Use of sick leave for work-related injuries or illnesses shall not be required when it is determined b .. treating physician that this status is permanent ! stationary. I • accrue1. Vacation Accrual - Vacation is accrued when an employee is on pay status and is credited on a bi-weekly basis. Eligible employees for • i ' performed in pay status: Years of service Leave Accrual ratelyearlY 1-5 years 15 days years 16 days 7 years 17 days 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 A 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. 2. Administration of Vacation Leave 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. ADMINISTRATIvELEAvE 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 granted 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 accrual on a semi-annual basis. E. BEREAVEMENT LEA vE In the event of the death of a Mid -Manager's spouse, child, parent, brother, sister, in-1relative 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. CATAsmopHlc LEAvE 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 Managers shall be 7.5 hours per day. The 37.5 hour work week will begin July 1, 2013, at which I 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 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, 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. F. CITY VEHICLE Under limitedcircumstances, 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 1 9th day of August, 2013 by the following vote, to wit: URA� iI MWINA N 0 • U) Im • CU 0 L) ► E mi E 04 CL Q 0 (1) 0 i W 01 C 0 C: 0 0 0 LU Management Position Benchmark Job Classes for Mid -Management Positions Community Services Director Library Director Public Works Director 0 0 MID -MANAGEMENT SALARY RESOLUTION EXHIBIT 11cle Both the City of San Rafael and the Mid -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 Agreement 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 ,iescribed 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. 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 OW (MTO). MTO will be taken by the employee during the MTO period when feasible in their respective department (as determined by the Department Director and City Manager). 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. 2. MTO time shall be considered time in pay status for the accrual of leave and eligibility for holidays. MTO time will not impact health, dental and life insurance benefits. At this time MTO time will impact Marin County retirement contributions; but if the Marin County Retirement Association, changes it policy on this the City will, effective the first of the month following notice from the Marin County Retirement Association, make the necessary change in the program's administration to correspond with the change in the policy. Any employee who notifies the City no later than 07/30/11 of their retirement date and retires from the Marin County Retirement System 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 hour. taken by other represented employees. 3. MTO time shall apply toward time in service for step increases, completion of probation, and related service credit. MID-MANAGfAENT SALARY RESOLUTION EXHIBIT NIC111 1111 1111 1 q 11111q a. The IVITO program shall be limited to a maximum five percent (5%) reduction in work hours/pay for the fiscal year. When the maximum IVITO reduction implemented, the involved employee shall be credited with three (3) days of float time. _t. Float Time accrued through the IVITO 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. If an employee is lait, off before having the opportunity to take unused furlough induced float time, said employee would be eligible to take the unused furlough induced float time during the thirty -day layoff notice period. c. Should the City of San Rafael experience a financial windfall during the fiscal year that furloughs are implemented, the City agrees to re -open discussions on this Furlough Program. d. The City agrees that it will attempt to distribute the dollar value of any IVITO time implemented equally over the remaining number of pay periods in the fiscal year.