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HomeMy WebLinkAboutHR Elected City Clerk & City Attorney Compensation 2014• Agenda Item No: .3,1 Meeting Date: June 16, 2014 MIRIIIIZU-I.Al 0 1 'N A .01'repared by: Deirdre Dolan, HR Director City Manager Approval:y I SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR THE ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY (JULY 11 2014 THROUGH JUNE 30,2016) -.-z%'OECOMMENDATION: Adopt Resolutiop 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 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. The elected City Clerk and Part -Time City Attorney 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 and 2012, the elected City Clerk and City Attorney 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). I The City recognizes that employees have made significant concessions over the years due to the impact 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 these employees who have not received a salary increase is six years, since July 2008. 1 ANALYSIS: The following reflects highlights of the resolution for the Elected City Clerk and Elected Part Time City Attorney, consistent with the guidelines authorized by the City Council. 1. Term of the Resolution: July 1, 2014 through June 30, 2016 2. Salary Increase: These elected officials will receive a 3.0% salary increase effective July 1, 2014 and a 3.0% increase effective July 1, 2015 3. Management Allowance: These elected officials will receive an additional one-time contribution of 0.36% of annual base salary in July 2014 and July 2015. FOR CITY CLERK ONLY File No.: OZ. Council Meeting.- :x cv Ll Disposition. 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. OPTIONS: Approve the Resolution to implement the above recommendations. Request changes to the recommendations. Direct staff to develop alternatives to the recommendations. k _U 11 117, 11 1 ATTACHMENTS: Resolution Establishing the Compensation and Working Conditions for the Elected City Clerk and Elected Part Time City Attorney (July 1, 2014 Through June 30, 2016) RESOLUTION NO. 13743 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING THE k COMPENSATION AND WORKING CONDITIONS FOR THE ELECTED CITY CLERK AND ELECTEIF PART TIME CITY ATTORNEY (JULY 17 2014 THROUGH JUNE 307 2016) This Resolution shall constitute the compensation and conditions of employment for the elected Cit Clerk and elected part-time City Attorney forthe period from July 1, 2014 through June 30, 2016. 1 a) SaIa!3f Increase Effective the pay period including July 1, 2014, the City shall provide a 3.0% increase to the salary for the City Clerk and City Attorney in accordance with the chart below. Effective the pay period including July 1, 2015, the City will provide a 3.0% 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, 2014 $9,411 $97074 July 1, 2015 $97693 $97347 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: $ 589.2 Employee and one dependent: $1178.5 Employee and two or more dependents: $1532.01 The monthly flex dollar allowance effective with the paycheck of December 15, 2014 shall be - Employee only- $ 603.9 Employee •and one dependent.* $1207.9 Employee and two or more dependents: $ 1570.3�j 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 CaIPERS 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 11 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 portio 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 CalPERS 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 mal 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 JanuaEy 1, 009: 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 Emplo ees' Retirement Association (MCERA) within 120 days of leavins y %7 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 longevitypayment equivalent to 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 longevity contribution 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. N 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 equivalent to the difference between the PEMHCA minimum contribution and the premium cost of coverage, up to $600, X ior the retiree. The City shall not be responsible for making any contributions towards the Co of coverage of the retiree's spouse, registered domestic partner or dependents. The City's longevity contribution shall cease upon the retired City Attorney or City Clerk's death. I 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 proons 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) Disabilitv 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. a JIIIIIIIII 41 3kFU 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. Employees hired by the City on or after January 1, 2013 who are defined as it new members 17 of MICERA in accordance with the Public Employees' Pension Reform Act (PEPRA) of 2013, shall be enrolled in the MCERA 2% @ 62 plan for Miscellaneous members. The employee is responsible for paying the employee contribution of half of the total normal cost of the plan, as defined by MCERA, through a payroll deduction. Final compensation will be based upon the highest annual average compensation earnable during the thirty six (36) consecutive months of employment immediately preceding the effective date of his or her retirement or some other period designated by the retiring employee. b) Employer Paid Member Contribution (EPIVIC). 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 requirement 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. I 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 RetirementMiscellaneous 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 4.59% of base salary. 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. Additionally, the City will make a one-time PARS contribution of 0.36% of annual base salary in July 2014 and July 2015. 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 an equivalent amount in cash. 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 on the 16 th day of June, 2014 by the following vote, to wit: UWN mori"a � 11 �Iqi�� 11111 -ill ­�­I'­­�il 1 :4 J41 -01 VXW U11*2611 0 1 j i I W I• IIr 1:4 Am maliA IN z I I M k :10ja U U ZOAWA q ;Lei zi INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. DATE OF MEETING: June 16,2014 Deirdre Dolan, Human Resources Director DEPARTMENT: Human Resources / Management Service� DATE: June 6, 2014 TITLE OF DOCUMENT: RESOLUTION 4-:)-�� ATION AND WORKING CONDITIONS FOR THE ELECTED CITY CLERK AND ELECTED PART TIME CITY ATTORNEY (JULY 17 2014 THROUGH JUNE 30,2016) Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: 411� KA -A City Manager (signature) REMARKS: 674,' APPROVED AS TO FORM: ry City Attorney (signature)