HomeMy WebLinkAboutHR Executive Management Compensation 2014Agenda Item No: 3. j
CITY OF
I EN"ting Date: June 16, 2014
Department: Management Services
A
Prepared by: Deirdre Dolan, HR Director City Manager Approvalf I Aclooka,11
SUBJECT: RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS
FOR UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES ("EXEC UTIVES")
(JULY I y 2014 THROUGH JUNE 30,2016)
ir:0-rel Ty, MA
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 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 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 the Executive Managers who have not received a
salary increase in six years, since July 2008. 1
ANALYSIS:
The following reflects highlights of the resolution for the Unrepresented Executive 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: Executive managers in this group will receive a 3.0% salary increase effective July
17 2014 and a 3.0% increase effective July 1, 2015
3. Management Allowance: Executive Managers will receive an additional one-time contribution of
0.36% of annual base salary in July 2014 and July 2015.
File No.:
Council Meeting: cc:�10
I-- ..... . .......... I ...... .... Z., .. .. .......
Z
1k
fp�rpu 1 ,, Z4
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:
0 Approve the Resolution to implement the above recommendations.
0 Request changes to the recommendations.
0 Direct staff to develop alternatives to the recommendations.
ACTION REQUIRED:
Adopt Resolution as presented.
FTA 1k
Resolution Establishing the Compensation and Working Conditions for Unrepresented Executive
Management Employees ( It Executives")2014 through June 30, 2016)
RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR
UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES ("EXEC UTIVES")
(July 1, 2014 through June 30, 2016)
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, 2014 through June 30, 2016.
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.
The City shall review the survey data for accuracy and completeness. The City shall provide the
survey data to all Executives.
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
3.0%.
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 the
percentage of full-time work schedule. Domestic partners who are registered with the Secretary oi
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 effective with the paycheck of December 15, 2013 is:
Employee only: $ 589.26
Employee and one dependent: $1178.52
:�mplovee and two or more dependents: $1532.08
The monthly flex dollar allowance effective with the paycheck of December 15, 2014 is:
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 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 Hosp.ital
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.
I
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 I 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
X
ior 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. 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
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 equivalent to 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, 2007. The City's longevity contribution 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 h*lred on or after Apr*11 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 I 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 CaIPERS on an annual basis.
9
On a monthly basis, the City shall make a longevity payment equivalent to the difference
between the PEMHCA minimum contribution andthe premium cost of coverage, up to $600,
for the retiree. TheCity 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 longevity contribution 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 7 s spouse or surviving spouse.
c. Executives hired on or after January I � 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
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 Executives and/or their spouses for any Medicare
premiums 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.
B. LIFE INSURANCE
The City shall provide a basic group life insurance plan equal to two times the employee's annual
salary.
C. LONG- TERm DISABILITY INSURANCE
The City shall provide long term disability (LTD) insurance, at no cost to the employee, with a benefit•
two-thirds (2/3) of the employee's monthly salary, up to a maximum benefit of $7,500 (reduced by an
deductible benefits).
D. 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.
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 Manager is responsible for paying the full cost of their employee contribution rate as established
by the Marin County Employee Retirement Association.
10
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
,�etermined 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.
B. COLA
Executives participating in the Marin County Employee Retirement Association will pay their full share
#f 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 retiremen!
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, 2011 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.
Employees hired by the City on or after January 1, 2013 who are defined as it new members
MCERA in accordance with the Public Employees' Pension Reform Act (PEPRA) of 2013, shall it
enrolled in the MCERA 2% @ 62 plan for Miscellaneous members. The employee is responsible fo
paying the employee contribution of half of the total normal cost of the plan, as defined by MCER
through a payroll deduction. Final compensation will be based upon the highest annual averag
compensation earnable during the thirty six (36) consecutive months of employment immediatel
preceding the effective date of his or her retirement or some other period designated by the retirin
employee.
D. SERVICE CREDIT FOR SICK LEA vE
Executives 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 at the time of retirement,
pursuant to Section 5-A of this Resolution).
This provision will no longer be available to Executives hired after June 30, 2009.
E. ExEcuTivE MANAGEMENT ALLOWANCE
Pursuant to Resolution No. 10657, the City established a Defined Contribution Retirement Plan for
Executives. All rules related to this plan shall be governed by the Plan document as amended.
Current contribution is 4.59% of base salary. Eligible employees shall have a one-time option of
I
electing
ii . • !yer contribution (pre-tax) to their PARSaccount i . . . i. i
of
i i i i r � r r i
.,Management . ! . .changes,. required • •
existingtime, in order to have the Defined Contribution Retirement Plan remain in compliance with then
IRS regulations.
Additionally, the City will make a one-time Management Allowance contribution of 0.36 % of annual
base .. • •
July 2015.
To comply with IRS rules, employees who had previously elected to have the City's Managemen
Allowance contributions deposited in a PARS account will have their contributions increased by th -
City contribution percentage. Employees
i elected
ir! . option will similarly ri i r
equivalent amount
5. LEAVES OF ABSENCE
A. SICK LEA vE
Executives
shallearn sick leave credits at the rateof one • • day per •nth 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
r . accrue
e • leave
. r • usage ••• i However, of on
r
thousand, • hundred •(1,200)accrual applies • . • •• . r i •Cit
separation.
Executives
. leave
r i i to completion of probation. " !• i of i i exempt r !
understatus 1 time off for. purposes shall n• be deducted from . Manager'
leave
unless i employee
i i "" absent i the full workday.
Use
of
leave
i work-related i or illnesses
not • i required
when it is
determined
rri• • r
treating physician that. permanent i stationary.
1. Vacation Accrual - Vacation is accrued when an employee is on pay status and is credite
on bi-weekly basis.i ile employees accrue vacation..t the fi i ! for ! i
service
performed in i.
y status: I
`ears of service
.eve Accrual rate/yearly
-5 years
15 days
6 years
16 drys
years
17 days
years
18 days
9 years
19 days
10 years
20 days
1 years
21 days
12 years
22 days
13 years
23 days
14 years
24 days
15 plus years
25 days
In recognition of Executives' exempt status under FLSA, time off for vacation leave purposes
shall not be deducted from a Manager's vacation accrual unless the employee is absent for the
full workday.
2. Administration of Vacation 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 once the employee's accumulated vacation leave balance falls below the accrual limit of
250 hours. Executives who terminate their employment shall be paid in a lump sum for all
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 Option for Payment of Accrued Vacation 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 seven (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 b
deducted from a Manager's administrative leave accrual, unless the employee is absent for the fu
workday. I
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 ,i
semi-annual basis.
E. BEREAVEMENT LEAvE
In the event of the death of a Manager 7 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. CATAsmopwc LEAvE
All Executives shall abide by the City's Catastrophic Leave Policy.
I
•
A. HoURS OF ff"ORK
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 Executives shall •- 7.5 hours per
•.
B. DRUG FREE WORK PLACE
All Executives shall abide by the City's Drug and Alcohol Policy.
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 • the City • 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 th
•. • June, 2014 • the following vote, to wit:
on
I
z
W
5
W
C:iz
uj
W
x
W''
uj
z
LU
CL
CL
LU
w
z
ui
LL
z
Cl)
O
Fo
•
w
w
*0
O
•
O
20
0
ii0mommommom
cc
O
w
Ot
4W
4w
w
w
w
w
0*
*0
40
40
ar
w-
w
w_
0
*9
00
w-
w-
L -
0
40
1
14M
1111111
40
,
ii0mommommom
cc
O
INSTRUCTIONS:USE THIS FORM. . OF .
CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFOREAPP'L BY COUNCILAGENC
' ' j SRCC AGENDA ITEM i
FROM: Deirdre Dolan,.► Resources Director
! iManagement
!' - 6, 2014
TITLE OF DOCUMENT: RESOLUTION
Fj
, a
OMPENSATION AND WORKING CONDITIONSFOR UNREPRESENTED
EXECUTIVE MANAGEMENT E' i ' THROUGH JUNE 30,2016)
-ILA,
Department Head (signature)
i , •'AIPWi. ,...i ,► i
APPROVED AS COUNCIL /AGENCY
AGENDA ITEM:
City Manager (signature)
[91 AIK •••- !
♦...i � i i•