HomeMy WebLinkAboutReso 57-16 Mgmt Employees 2016-17111viui 1
OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING THE COMPENSATION A1 BENEFITS' FOR
rHE UNREPRESENTED MANAGEMENT DESIGNATED EMPLOYEES
OF THE CITY OF MORRO BAY
1'
Aty of Morro Bay, i i
EREAS, Section 36506 of the California Government Code requires that a city council fix the
compensation of all appointive officers and employees by resolution or ordinance; and
WHE AS, Morro Bay Municipal Code Section 2.20.020 also provides that the salaries and
compensation of officers and employees of the City of Morro Bay ("City") shall be as fixed and
determined by resolution of the City Council, except as specifically fixed in Chapter 2.20 of the Morro Bay
Municipal Code; and
WHE AS, the City has established a system of classification for all positions within the City
service with descriptive occupational titles, used to identify and distinguish classifications and/or positions
from one another, based on job duties, essential functions, knowledge, skills, abilities and minimum
requirements; and
WHEREAS, the Meyers-Milias-Brown Act ("MMBA") (Government Code Secs. 3500 et.seq.)
governs labor relations between local government employers and employees and Section 3507.5 thereof
permits a public agency to adopt local rules and regulations providing for the designation of the
"management" employees of the public agency and restricting such employees from representing any
employee organization, which represents other employees of the public agency, on matters within the
scope of representation; and
WHEREAS, the City's Employer -Employee Relations Resolution, Resolution No. 74-69,
represents the City's adoption of local rules and regulations for the administration ofemployer-employee
relations, including but not limited to the designation of "management" employees, summarized in brief
from that resolution as generally defined as meaning those employees who are have significant
responsibilities for formulating and administering City policies and programs and the authority to exercise
independent judgment to hire, discipline, promote, discharge; assign, or transfer other employees or who
have responsibility to use independent judgment to direct such employees, adjust their grievances, or
recommend personnel action; and
WHEREAS, the City has designated such "management" employees as more fully identified and
listed herein below; and
WHEREAS,
the "management" employees identified and listed herein are "unrepresented,"
meaning that they are not part of any City Council determined appropriate bargaining unit nor represented
Resolution No. 57-16
Page 2 of 11
by any recognized employee organization as defined by the City's Employer -Employee Relations
Resolution and the MMBA; and
WHEREAS, the City Council deems it is in the best interest of the City to adjust the compensation
of the unrepresented management employees, whose titles are listed herein, by a Cost of Living
Adjustment (COLA) established by City Council for these employees for FY 2016/17.
hT®W, THE F® , I3E IT S®LVED the Morro Bay City Council does hereby adopt the
Following Resolution, establishing compensation and benefits for the City of Morro Bay's unrepresented
management employees and rescinding and replacing any prior compensation and benefits resolutions,
contracts, agreements or memorandum for such employees, including, but not limited to, Resolution No.
6744, Resolution No. 0444, Resolution No. 4142, Resolution No. 55-11, Resolution No. 78-08,
Resolution No. 15-07, and Resolution No. 54-02:
A. CLASSIFICATION/POSITION LIST
The following are the FY 2016/17 authorized management positions:
1. Police Commander
2. Wastewater Division Manager
3. Executive Secretary/City Clerk
4. Capital Projects Manager
5. Consolidated Maintenance Superintendent
6. Information Systems Technician
7. Environmental Programs Manager
8. Tourism Manager
9. Management Analyst
B. NORMAL WORK HOURS
Management employees are expected to work during normal City business hours and may be
required to work longer hours (more than an eight (8) hour day and more than five (5) days per
week), but are not subject to overtime compensation, as they are considered exempt employees,
within the definition of FLSA. The occasional use of alternative work schedules can be
implemented upon approval of the City Manager.
C. EXEMPT TIME OFF
As stated in B above, management employees are considered exempt employees. However, the
City provides various leave banks for employees' use, with accrual and use record-keeping being
required to properly maintain the leave banks.
Tirrie off of less than two (2) continuous hours in a day does not need to be recorded by exempt
employees. Abuses of this exception, such as daily use or random periods within a day, will not be
allowed; however, this exception is also not allowed to be combined with other leaves.
Resolution No. 57-16
Page 3 of 11
D. ADMINISTRATIVE LEAVE
Management employees receive seventy-two (72) hours annually in paid administrative leave in a
lump sum accrual at the beginning of each fiscal year. The City Manager, or designee, upon
recommendation by the management employee's Department Head, may grant additional
administrative leave to the management employee. All leave time (vacation, sick leave, holiday,
etc.) will be taken off on an hour -for -hour basis equaling employee actual time off from work
during normal business hours, regardless of accumulation rates.
With each fiscal year end, up to twenty-four (24) hours of unused administrative leave from the
prior fiscal year may be carried over to the next fiscal year by written request of the employee. The
administrative leave bank may never accrue more than ninety-six (96) hours (72 + 24).
New management employees will be provided a pro -rata share of the annual seventy-two (72) hour
administrative leave bank upon employment.
Administrative leave is a compensable leave, and any remaining hours in the employee's bank will
be paid out upon separation from City service, at the employee's current hourly rate of pay.
E. VACATION LEAVE
Management employees accrue vacation, based on the schedule below:
Service Years
Entitlement in
Days
1 thru 2 10
3 thru 4 11
5 thru 6 12
7 thru 8 13
9 thru 10 14
11 thru 12 15
13 thru 14 16
15 thru 16 17
17 thru 18 18
19 thru 20 19
21 or more 20
Management employees are subject to a maximum leave accumulation of three hundred (300)
hours. Any hours, exceeding the maximum accumulation, as of the pay period containing
Resolution No. 5 7- 16
Page 4 of 11
November 1St will be paid out in the pay period including December 1St, based on the following
options for those excess hours, as selected by the employee:
1. Cash out;
2. Convert hours to sick leave on an hour -for -hour basis;
3. Paid to deferred compensation account; or
4. Any combination of the above.
Payment shall be computed, based upon the employee's base hourly rate of pay as of June 30 of the
same calendar year.
If the management employee has a specific need to retain the hours beyond the maximum
accumulation, this need must be written and approved by both the employee's Department Head
and the City Manager, or designee. All leave time (vacation, sick leave, holiday, etc.) will be taken
off on an hour -for -hour basis equaling employee actual time off from work during normal business
hours, regardless of accumulation rates.
Management employees may exercise the option to convert, into cash, a maximum of forty (40)
hours of accrued vacation leave each fiscal year, at the employee's current hourly rate of pay.
Vacation accrual is a compensable leave, and any hours remaining in the employee's vacation bank
will be paid out upon separation from City service, at the employee's current hourly rate of pay.
F. HOLIDAYS
The following days are paid holidays for management employees:
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
New Year's Day
Martin Luther King, Jr. Day
Lincoln's Birthday
Washington's Birthday
Memorial Day
Floating Holiday
Floating Holiday
July 4
1st Monday in September
November 11
4th Thursday in November
Friday after Thanksgiving
December 25
January 1
3rd Monday in January
February 12
3rd Monday in February
Last Monday in May
Varies
Varies
Any holiday, which falls on a Saturday or Sunday, will be officially designated as a "HOLIDAY"
on the prior Friday (if Saturday) or Monday (if Sunday).
Resolution No. 57-16
Page 5 of 11
For management employees, one holiday equals eight (8) hours unless the employee is working the
9/80 alternative work schedule where one holiday shall equal eight (8) or nine (9) hours depending
on the normally scheduled work day being either an eight (8) or nine (o) hour work day for that
employee.
When a holiday is proclaimed by the Mayor of the City, each employee shall be granted time off in
the same number of equivalent hours scheduled for that work day. Such time off shall be
authorized by the Department Head.
Floating holiday hours are recorded in a bank in July of each fiscal year, and maybe carried over to
the next fiscal year, to a maximum accumulation of forty-eight (48) hours holiday time. Hours of
holiday time accumulated over forty-eight (48) hours will be paid out in December. All leave time
(vacation, sick leave, holiday, etc.) will be taken off on an hour -for -hour basis equaling employee
actual time off from work during normal business hours, regardless of accumulation rates.
Floating holiday pay is a compensable leave, and any remaining hours in the employee's bank will
be paid out upon separation from City service, at the employee's current hourly rate of pay.
G. SICK LEAVE
All employees accrue ninety-six (96) hours per year in a sick leave bank to be used for employee
illness, forty-eight (48) hours of which may be used in the care of the employee's family member
for illness or for any other reason mandated by law. All leave time (vacation, sick leave, holiday,
etc.) will be taken off on an hour -for -hour basis equaling employee actual time off from work
during normal business hours, regardless of accumulation rates.
Upon retirement from City service, remaining unused sick leave converts to time served under the
applicable contract between the City and the California Public Employees' Retirement System
("CalPERS"), if any.
Based on individual utilization of paid sick leave in the preceding calendar year, management
employees may convert unused accumulated sick leave into paid vacation leave once per calendar
year, pursuant to the formula below:
Maximum Conversion
Sick Leave Utilization Sick Leave to Vacation Leave
0 hours 96 hours 48 hours
25 to 8 hours 72 hours 36 hours
8.25 to 16 hours 48 hours 24 hours
16.25 to 25 houxs 24 hours 12 hours
Over 25 hours 0 hours 0 hours
At least one -hundred sixty (160) accrued hours must remain in the management employee's sick
leave bank for an employee to be eligible for conversion or for a conversion to be authorized. In
Resolution No. 57-16
Page 6 of 11
addition, the right to convert does not carry over or rollover from calendar year to calendar year•,
failure to request conversion in any calendar year eliminates the right to do so for that calendar
year.
Upon the Service Retirement of a management employee, who has more than ten (10) years of
service with the City, said employee shall be entitled to receive payment for up to the first seven
hundred twenty (720) hours of his/her accrued sick leave at thirty-five percent (35%) of the
employee's rate of pay, as of the date of service retirement. Sick leave converted to service credit
for CalPERS purposes cannot be compensated (converted to dollars). Service Retirement is
defined as service retirement from both the City and CalPERS. Voluntary separation or
termination actions are excluded from this benefit.
H. RETIREMENT BENEFITS
All employees, enrolled in the Ca1PERS retirement system, bear the risk of payment of any
increases in the employee contribution, above the current percentage, made by action of CalPERS,
the California Public Employees Pension Reform Act of 2013 ("PEPRA") or related legislation,
and/or the State Legislature.
All employee Ca1PERS contributions are paid to Ca1PERS, based upon tax treatment currently
permitted by the State Franchise Tax Board and the Internal Revenue Service ("IRS").
The following is descriptive information on City Ca1PERS-contracted retirement plans:
Ca1PERS Miscellaneous Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:
1.
2.
Tier
Tier
1
2
Classic members =
Classic members =
8%
7%
3.
Tier
3
PEPRA members
= 6.25%
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following
Ca1PERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another
position within the City, will not be considered new hires, with respect to retirement formulas):
1. 2.7% @ 55 formula (Section 21354.5)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 1 Year (Section 20042)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 2: All employees, who were hired on or after December 10, 2011,
but before.January 1, 2013,
and those hired on or after January 1, 2013, who meet the Ca1PERS definition of classic 7nencbeN,
Resolution No. 57-16
Page 7 of 11
as determined by CaIPERS under PEPRA and related legislation, receive the following Ca1PERS
retirement formula and optional benefits:
formula (benefit factor increases to 2.418% @ 63+) (Section 21353)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 3 Years (Section 20037)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new
member, as determined by Ca1PERS under PEPRA and related legislation, receive the following
CalPERS retirement formula and optional benefits:
1. 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty (50) percent of the expected normal cost rate, which is
currently 12.5% (6.25% is employee's portion)
4. Unused Sick Leave Credit (Section 20965)
5. Military Service Credit (Section 21024 and 21027)
6. 1959 Survivor Benefit, Level 4 (21574)
7. Pre -Retirement Option 2W Death Benefit (Section 21548)
Ca1PERS Safe _ Plans
All employees pay 1009/o of the employee contribution to Ca1PERS, which is currently:
1. Tier 1 and Tier 2 Classic members = 9%
2. Tier 3 PEPRA members = 11.5% (50% of the normal contribution rate)
Tier l: All employees, who were hired prior to September 17, 2011, receive the following
Ca1PERS retirement formula and optional benefits (exist@ Tier 1 employees, promoted to another
position within the City, will not be considered new hires, with respect to retirement formulas):
1. 30/n
@ 50 formula (Section 21362.2)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation Ll Year (Section 20042)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 2: All employees, who were hired on or after September 17, 2011, but before January 1, 2013,
and those hired on or after January 1, 2013, who meet the definition of classic member, as
determined by CalPERS under PEPRA and related legislation, receive the following Ca1PERS
retirement formula and optional benefits:
Resolution No. 57-16
Page 8 of 11
1. 3% @ 55 formula (Section 21363.1)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 3 Years (Section 20037)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new
member, as determined by CalPERS under PEPRA and related legislation, receive the following
Ca1PERS retirement formula and optional benefits:
1. 2.7% @ 57 formula
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty (50) percent of the expected normal cost rate, which is
currently 23% (11.5% is employee's portion)
4. Unused Sick Leave Credit (Section 20965)
5. Military Service Credit (Section 21024 and 21027)
6. 1959 Survivor Benefit, Level 4 (21574)
7. Pre -Retirement Option 2W Death Benefit (Section 21548)
I. HEALTH/LIFE/VISION/DENTAL INSURANCE
Effective January 1, 2016, all employees receive the following contribution toward the purchase of
Cal -PERS health insurance, which includes the required Ca1PERS monthly contribution:
Employee only - up to $715/month or cost of insurance, whichever is less
Employee + 1 - up to $1,109/month or cost of insurance, whichever is less
Employee + family - up to $1,326/month or cost of insurance, whichever is less
Life insurance is provided at $50,000, and is paid for by the City for the employee o@.
Effective January 1, 2016, all employees receive the following contribution toward the purchase of
Life, Vision and Dental insurances:
City will pay the remaining premium for life, vision and dental.
For retired employees, City contributes the required Ca1PERS monthly contribution towards
Ca1PERS health plans, as selected by retiree.
Life
Vision
Dental
Total
Bank
EE Pays
Employee only
$7.50
$ 8.86
$ 55.47
$ 71.83
$ 68.90
$ 2.93
Employee + 1
$7.50
$ 16.59
$143.09
$167.18
$155.43
$11.75'
Employee + 2+
$7.50
$ 22.59
$143.09
$173.18
$160.97
$12.21
City will pay the remaining premium for life, vision and dental.
For retired employees, City contributes the required Ca1PERS monthly contribution towards
Ca1PERS health plans, as selected by retiree.
Resolution No. 5 7- 16
?age 9 of 11
J. LONG-TERM DISABILITY ( LTD") INSURANCE PROGRAM
Management employees do not participate in the California State Disability Insurance program.
City provides LTD to its management employees, and pays the cost for the plan.
K. DEFERRED COMPENSATION PROGRAM
Management employees receive a matching contribution up to $1,500, per calendar year, paid to
employee's deferred compensation plan, or approved retiree medical savings plan. City matching
contributions are paid on a 2:1 basis (e.g., employee contributes $2, City contributes $1).
L. SPECIAL PAY
Management employees may receive up to $150 reimbursement per fiscal year, to purchase steel -
toed shoes, as required in the performance of their job duties. Proof of purchase is required, and
reimbursement is based on price paid, not to exceed $150 per fiscal year. Once purchased,
footwear must be worn while working.
M. COMPENSATION ADJUSTMENTS
Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to
management employees, as determined by the City Manager and approved by the City Council;
neither is guaranteed. For the fiscal year 2016/17, City is providing a 2.25% COLA base salary
increase to the management employees' salary ranges, as reflected in Attachment A hereto,
effective with the pay period containing July 1, 2016.
N. EDUCATION REIMBURSEMENT
City will reimburse its management employees for costs associated with job-related and job -
required certifications, correspondence courses, and/or licenses (except Class III driver's license),
upon successful completion of the examination or course by the employee. Written authorization,
from the employee's Department Director, is required in advance. Reimbursement includes
application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by
City. This provision does not apply to continuing education requirements.
City will provide a City vehicle, when available, for required transport
ation, and will permit paid
time for employee to take examinations, scheduled during normal working hours. If no City
vehicle is available, City will reimburse mileage for the use of the management employee's
personal vehicle, at current IRS mileage rates.
Resolution No. 57-16
Page 10 of 11
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting
thereof held on the 12"' day of July 2016, by the following vote:
AYES: Irons, Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
ABSTAIN: None
JAMIL�,. IRONS, Mayor
ATTEST:
Ivils wvws�
AANA SWANSON, City Clerk
Resolution No. 57-16
Page 11 of 11
PSITI®I�i
Police Commander
1VIAle1AGEMENT SALARY SCHEDULE
ANNUAL COMPENSATION NGE
1 2 3 4
Wastewater Division Manager
Executive Secretary/City Clerk
97,730
95,936
81,800
Consolidated Maintenance Supt
Information Systems Tech
Capital Projects Manager
Tourism Manager
Environmental Programs Manager 74,002
Management Analyst
63,275
102,616
100,733
85,890
77,703
66,439
107,747
105,770
90,185
69,761
94,694
85,667
73,249
r
118,791
116,611
99,428
89,950
76,912