HomeMy WebLinkAboutReso 60-16 Max Comp and Benefits for Dept Headsi 1 WEND iM11I93 u
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BENEFITS
FOR CERTAIN CITY DEPARTMENT •D POSITIONS
ity of Morro Bay, Californil
WHEREAS, 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 fixed in Chapter 2.20 of the Morro
Bay Municipal Code; and
WHEREAS, the Morro Bay City Manager has authority to appoint, remove, promote
and demote any officers and employees of the City, including Directors, except the city attorney,
pursuant to Morro Bay Municipal Code Section 2.12.090; and
W E AS, the City currently has department heads that include the Administrative
Services Director, Assistant City Manager, Community Development Director, Deputy City
Manager, Fire Chief, Harbor Director, Police Chief, and Public Works Director (hereinafter
collectively referred to as "Directors"); and
WHEREAS, the salaries and compensation of the Directors have been fixed pursuant to
the Executive Salary Schedule adopted by the City as part of the fiscal year budget process as
updated from year to year; and
WHE -Q-FAQ
the City Council now desires to approve the compensation range and
bV nefits for the City's Directors such that the City Manager shall be authorized to appoint
Directors and provide for salary and benefits within the limitations of this resolution, without
requiring the City Council to individually approve each Director's employment contract; and
WHEREAS,
the City Council now desires to adopt a resolution of salaries,
compensation and benefits for the Directors.
NOW, THEREFORE, BE IT RESOLVED
by the City Council of the City of Morro
Bay as follows:
Section 1. The City Council hereby approves the Executive Salary Schedule effective
July 1, 2016 attached as Attachment A.
01181.0004/301248.2
Section 2. Directors with an existing employment contract with the City are entitled
only to the level of salary and benefits contained herein or already existing in their respective
contracts prior to the adoption of this resolution should those pre-existing contracts be amended
or replaced with new contracts. Accordingly, this resolution shall not be deemed to limit
compensation or benefits provided for in an existing employment contract with the City that is
inconsistent with this resolution. Implementation of the accrual caps herein shall not result in
loss of existing or vested leave balances as of the date of adoption of this resolution.
Section 3. The City Council hereby approves the maximum level of benefits and
other compensation, not including salary, for Directors as set forth below. In the event the City
Manager desires to exceed any of the parameters set forth herein, City Council authorization
shall be required.
A. Workweek and Hours. Directors are expected to engage in the hours of
work that are necessary to fulfill the obligations of the position, must be available at all times,
and must devote a great deal of time outside the normal office hours to the business of the City.
The proper performance of duties will require Directors to generally observe normal business
hours (currently 8:00 a.m. to 5:00 p.m., Monday through Friday, including a standard one-hour
lunch period), as set by the City and as may be duly revised from time -to -time by the City, and
All also often require the performance of necessary services outside of normal business hours.
B. At -Will Employment. The employment of Directors with the City is
will," and Directors serve at the pleasure of the City Manager pursuant to Section 2.12.090 of the
Morro Bay Municipal Code. As such, subject to Section 4 of this resolution, the City Manager
may terminate a Director's employment at any time, with or without cause and with or without
advance notice.
C. Exempt Status. Employees subject to this resolution are considered to be
"exempt" employees within the definition of the Fair or Standards Act (FLSA), and shall not
receive overtime compensation for time worked outside of the regular work schedule.
D. Professional Development and Professional Dues.
1. Professional development. Subject to the prior written approval of
the City Manager, the City shall pay for travel and subsistence expenses of Directors for .official
travel, meetings and seminars necessary to continue professional development, and to adequately
pursue necessary official and other functions for the City in accordance with approved budgetary
limitations.
2. Professional dues. Subject to the prior writt
en approval of the City
Manager, the City shall pay the professional dues and subscriptions necessary for Directors'
participation in such national, regional, state, and/or local associations and organizations as are
necessary and desirable for continued professional participation growth and advancement and for
the good of the City, in accordance with approved budgetary limitations.
01181.0004/301248.2 -2-
F. Vacation Leave.
1. Accrual rate. Directors shall be entitled to paid vacation leave as
provided below. City Manager shall have the authority to decide service years as the City
Manager sees fit. The standard vacation time is eight (8) hours equals one (1) day.
Service
Fears
Vacation
Days
0-2
12
2-4
14
4-6
16
6-8
18
8+
20
2. Advances. The City Manager shall have the authority, in his or her
discretion, to advance up to a total of ten (10) vacation days to a new Director at the start of the
Director's appointment and at no other time.
3. Other Vacation Leave Requirements. All other contract language
relating to vacation leave, including Accrual Caps, Cash Out and Usage, will be consistent with
the adopted City Council Management Employees Compensation and Benefit Resolution in
force at the time the Department Head contract is executed.
Cs. Holiday Leave.
1. Directors shall be entitled to the following holidays and paid eight
(8) hours for each holiday:
New Year's Day
Martin Luther King Day
Lincoln's Birt
hday
President's Day
Memorial Day
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving Day
Christmas Day
Two (2) floating holidays
2. Employees may accumulate up to a maximum of forty-eight (48)
hours holiday time. Hours of holiday accumulated over forty-eight (48) hours will be paid off.
Holiday time is a compensable leave, and any hours remaining in the employee's holiday bank
will be paid out upon separation from City service, at the employee's current hourly rate of pay.
01181.0004/301248.2 -3 -
H. Administrative Leave.
1. Accrual rate. Each Director is eligible to earn eighty (80) hours of
administrative leave per fiscal year. The time during the fiscal year, at which an employee may
take administrative leave, shall be determined by the City Manager. The City Manager may, due
to exceptional and documented circumstances warranting additional administrative leave, grant
administrative leave in excess of the eighty (80) hour limit but no more than one hundred twenty
(120) hours.
2. Accrual cap/ cash out. Up to forty (40) hours of administrative
leave may be rolled over into the following fiscal year, not to exceed one hundred twenty (120)
total banked hours of accrued leave in any fiscal year. Administrative leave is a compensable
leave, and any hours remaining in the employee's administrative leave bank will be paid out
upon separation from City service, at the employee's current hourly rate of pay.
3. Advances. The City Manager shall have the authority, in his or her
discretion, to advance up to a total of five (5) days administrative leave to a new Director.
4. Usage. Administrative leave time must be taken off on an hour-
for- hour basis equaling employee actual time off, regardless of accumulation rates. Up to eighty
(80) hours of administrative leave per fiscal year may be taken by a Director, subject to written
advance approval of the City Manager.
I. Sick Leave.
1. Accrual rate. Directors shall accrue one (1) day paid sick leave per
month. Directors shall be entitled to receive cash payment for up to 50% of unused sick leave
upon termination of employment, provided that such amount shall not exceed $4,500. Directors
are entitled to payment for unused sick leave, pursuant to this section, upon resignation, only if
thirty (30) days written notice of intent to resign is given to the City.
2. Conversion. Directors may convert up to ninety-six (96) hours of
unused, accumulated sick leave into paid vacation once during the following fiscal year on a
ration of two sick leave hours for one vacation hour. At least twenty-four (24) hours shall
remain in a Director's sick leave bank after any conversion is authorized. In 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. Sick leave
that is compensated or converted to vacation cannot be used towards the California Public
Employees' Retirement System ("Ca1PERS") sick leave credit option at retirement.
3. Advances. The City Manager shall have the authority, in his or her
discretion, to advance up to a total of five (5) days sick leave to a new Director.
4. Uag
se. Sick leave time must be taken off on an hour -for- hour
basis equaling employee actual time off during normal City business hours, regardless of
accumulation rates.
01181.0004/301248.2 -4-
J. Retirement Benefits
1. City contributions. The City will pay the employer portion of
retirement contribution to the California Public Employees' Retirement System (CalPERS).
Employees are required to pay their full member contributions for whichever plan they are
eligible for pursuant to the City's contract with CalPERS. (As of the date of adoption of this
resolution, contributions rates are as follows: 1) classic members, Tier 1 - 8% Miscellaneous/9%
Safety; 2) classic members, Tier 2 - 7% Miscellaneous/9% Safety; or 3) PEPRA members, Tier 3
— 6.25% Miscellaneous/11.5% Safety.)
2. Ca1PERS contract provisions.
(a) Tier IMiscellaneous– Miscellaneous Directors who were
hired prior to January 1, 2012 shall be provided with the following CaIPERS retirement formula
and optional benefits (existing employees promoted to another position within the City will not
be considered new hires with respect to retirement formulas):
(i) 2.7% @ 55 formula (Section 21354.5)
Unused Sick Leave Credit (Section 20965)
i) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 1 Year (Section 20042)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre -Retirement Option 2W Death Benefit (Section 21548)
(b) Tier II Miscellaneous– Miscellaneous Directors who were
hired on or after January 1, 2012, but before January 1, 2013, and those hired on or after January
1, 2013 who are determined to be a "classic" member by CalPERS shall be provided with the
following CaIPERS retirement formula and optional benefits:
(i) 20/
@ 60 formula (benefit factor increases to 2.418% @
63+) (Section 21353)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 3 Years (Section 20037)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre -Retirement Option 2W Death Benefit (Section 21548)
(c) Tier III (PEPRA) Miscellaneous- Pursuant to the California
Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, Directors
hired, who meet the definition of "new" member under PEPRA as determined by CalPERS, will
be covered by following retirement formula and receive the following CaIPERS optional
benefits:
(i) 2% @ 62 formula (benefit factor increases to 2.5%
@ 67+)
(Section 7522.20)
(ii) Final Compensation 3 Years (Section 20037)
01181.0004/301248.2 -5-
i) Member contribution rate of fifty (50) percent of the
expected normal cost rate, which is currently 12.5% (6.25%
is employee's portion)
(iv) Unused Sick Leave Credit (Section 20965)
(v) Military Service Credit (Section 21024 and 21027)
(vi) 1959 Survivor Benefit, Level 4 (21574)
(vii) Pre -Retirement Option 2W Death Benefit (Section 21548)
(d) Tier I Safety— Ca1PERS Safety Directors, who were hired
prior to September 17, 2011, shall be provided the following CalPERS retirement formula and
optional benefits (existing employees, promoted to another position within the City, will not be
considered new hires, with respect to retirement formulas):
(i) 3% @ 50 plan (Section 21362.2)
Unused Sick Leave Credit (Section 20965)
i) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 1 Year (Section 20042)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre -Retirement Option 2W Death Benefit (Section 21548)
(e) Tier II Safety— Ca1PERS Safety Directors, who were hired
on or after September 17, 2011, and those hired on or after January 1, 2013 who meet the
definition of a "classic" member under PEPRA as determined by CalPERS, shall be provided the
following CalPERS retirement formula and optional benefits:
(i) 3% @ 55 plan (Section 21363.1)
Unused Sick Leave Credit (Section 20965)
i) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 3 Years (Section 20037)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre -Retirement Option 2W Death Benefit (Section 21548)
(f) Tier III (PEPRA) Safety- Pursuant to PEPRA, effective
January 1, 2013, Safety Directors hired, who meet the definition of "new" member under
PEPRA as determined by CalPERS, will be covered by following retirement formula and receive
the following CaIPERS optional benefits:
(i) 2.7% @ 57 formula (benefit increases to ...)
(ii) Final Compensation 3 Years (20037)
i) Member contribution rate of fifty (50) percent of the
expected normal cost rate (currently 11.5%)
(iv) Sick Leave Option (Section 20965)
(v) Military Service Credit (Section 21024)
(vi) 1959 Survivor Benefit Level 4 (Section 21574)
(vii) Pre -Retirement Death Option 2W (Section 21548)
01181.0004/301248.2 -6-
K. Health Life Dental and Vision. Effective January 1, 2016, all Directors
receive the following contribution toward the purchase of Ca1PERS 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 only.
Effective January 1, 2016, all Directors receive the following contribution toward the
purchase of Life, Vision and Dental insurances:
For retired Directors, City contributes the required CaIPERS monthly contribution
towards Ca1PERS health plans, as selected by retiree.
L. Long -Term Disability"LTD") Insurance Pro _ram. 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.
M. Deferred Compensation. Directors shall have the option to participate in
the deferred compensation program offered by the City, subject to the terms and conditions of
the 1978 Revenue Act and Section 457 of the Internal Revenue Code. The City will contribute
up to $3,500 per calendar year to the deferred compensation program. Any required match, from
no match to a 2:1 match, will be negotiated by the City Manager.
N. Automobile Allowance. Directors shall receive $250.00 per month or the
use of a take home City vehicle as determined by the City Manager.
O. Cost of Living Adjustments (COLA).
Salary increases to the established
salary ranges in Attachment A shall only be as dictated and approved by City Council. The
movement between steps of a salary range are entirely within the purview of the City Manager.
P. Uniforms. The Police Chief and Fire Chief shall receive uniform
allowances in an amount consistent with the highest ranking subordinate classification in their
Department.
Q. Bonding. The City shall bear the full cost of any fidelity or other bonds
required for a Director under any law or ordinance.
01181.0004/301248.2 -7-
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
For retired Directors, City contributes the required CaIPERS monthly contribution
towards Ca1PERS health plans, as selected by retiree.
L. Long -Term Disability"LTD") Insurance Pro _ram. 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.
M. Deferred Compensation. Directors shall have the option to participate in
the deferred compensation program offered by the City, subject to the terms and conditions of
the 1978 Revenue Act and Section 457 of the Internal Revenue Code. The City will contribute
up to $3,500 per calendar year to the deferred compensation program. Any required match, from
no match to a 2:1 match, will be negotiated by the City Manager.
N. Automobile Allowance. Directors shall receive $250.00 per month or the
use of a take home City vehicle as determined by the City Manager.
O. Cost of Living Adjustments (COLA).
Salary increases to the established
salary ranges in Attachment A shall only be as dictated and approved by City Council. The
movement between steps of a salary range are entirely within the purview of the City Manager.
P. Uniforms. The Police Chief and Fire Chief shall receive uniform
allowances in an amount consistent with the highest ranking subordinate classification in their
Department.
Q. Bonding. The City shall bear the full cost of any fidelity or other bonds
required for a Director under any law or ordinance.
01181.0004/301248.2 -7-
R. Education Incentives. The City shall reimburse the costs for job-related
and job -required certifications, correspondence courses, and licenses upon successful completion
of the examination or course by the employee, having written authorization in advance from the
City Manager. This shall include application fees, examination fees, and certificate fees.
Renewal fees may be paid in advance by the City. This provision does not apply to continuing
education requirements.
S. Severance. Directors shall be entitled to severance only as provided in
this section. Any and all severance rights are conditioned upon and in consideration for
execution of a standard agreement of separation, severance, and general release in a form
acceptable to and approved by the City Attorney. The severance rights provided for herein shall
constitute the sole and only entitlement of a Director with respect to severance pay in the event
of the termination, other than for cause.
1. Amount. In the event a Director is terminated without cause and
does not challenge such termination, including but not limited to by means of appeal or
civil or administrative claim, then the City shall pay severance in an amount equal to the
monthly base salary of the Director then in effect (excluding the value of any other
benefits) multiplied by four (4). The severance payment shall not include the monetary
value of benefits during said time, but salary only. Prior to such termination, in order to
be eligible for severance as provided in this Section, a Director must have worked for the
City a minimum of six (6) months.
Should a Director be terminated for cause, as defined in this section below, the City shall
have no obligation to pay the severance provided for above. Additionally, should a
Director resign or otherwise initiate termination of his or her employment with the City,
then the City shall have no obligation to pay the severance provided for above.
2. "Cause" defined. For the purposes of this resolution, "cause" for
termination shall include, but not be limited to, the following: (1) willful or persistent
material breach of duties or inattention to duties, (2) resume fraud or other acts of
material dishonesty, (3) unauthorized or excessive absence or leave, (4) conviction of a
misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or
morality), (5) conviction of a felony under California law, (6) violation of the City's anti -
harassment policies and/or a finding that legally prohibited personal acts of harassment
against a City official or employee or legally prohibited personal acts of discrimination
against a City official or employee has occurred, (7) violation of state law or the City's
Municipal Code or ordinances, rules, and regulations, (8) use or possession of illegal
drugs in violation of state law and/or City policy, (9) engaging in conduct tending to
bring embarrassment or disrepute to the City, (10) any illegal or unethical act involving
personal gain, including conviction of theft or attempted theft, (11) significant
mismanagement of City finances, (12) any pattern of repeated, willful and intentional
failure to carry out materially significant and legally constituted directions or policy
decisions of the City Council or City Manager, (13) gross misfeasance or gross
malfeasance, or (14) any similar cause. For any of the foregoing, the City may, in its
discretion, place a Director on paid or unpaid administrative leave until resolution.
01181.0004/301248.2 -g-
3 Limitation. Government Code Section 53260 provides that all
contracts of employment with a city must include. a provision limiting the maximum cash
settlement for the termination of the contract to the monthly salary (excluding benefits)
multiplied by the number of months left on the unexpired term, but not more than
eighteen (18) months if the unexpired term exceeds eighteen (18) months. Accordingly,
should such proposed severance payment exceed the amount authorized to be paid under
Government Code Section 53260, then the amount paid to Employee shall be reduced in
the amount necessary to comply with such statute. (For example, if termination occurs
with two (2) months left in the term, severance would be equal to the monthly base salary
multiplied by two (2) rather than the four (4) months provided herein.)
T. Relocation Reimbursement. The City Manager shall have the discretion to
reimburse a newly -hired Director for the Director's actual costs of relocation in order to work for
the City, up to $5,000 for in-state relocations, and up to $10,000 for out of state relocations.
Prior to such reimbursement, the newly hired Director shall provide to the City Manager receipts
or other reasonable proof documenting the costs incurred in relocation. The expenses eligible for
reimbursement shall be only those expressly stated herein and only include the following
items/categories: hiring of a moving service or rental of a moving truck or equipment; renting a
temporary home, apartment or hotel costs while house -hunting for a more permanent residence;
lease cancelation fees; shipping and temporary storage of personal belongings and furniture; ad
travel costs from prior residence to new residence, whether temporary or not.
If, following reimbursement for relocation expenses as provided in this section, a Director
voluntarily leaves City employment, then Director shall be responsible for repayment to the City
the amount of relocation reimbursement as follows:
Duration of employment
Less than one year
1 — 2 years
2 — 3 years
3 + years
Percentage of relocation
reimbursement
owed to City
100%
50%
25%
0%
Any relocation reimbursement repayment required pursuant to this section shall be made to the
City no later than the Director's last day of City employment. 3 but
is not limited to this form of recovery only, to deduct any relocation reimbursement amount
owed to the City pursuant to this section from a Director's accrued leave to be paid out upon
separation.
In the event a Director is terminated, then no repayment to the City for relocation reimbursement
shall be required.
Section 4. The position of Police Chief remains entitled to all protections and rights
afforded under California law, including, but not limited to, those set forth in the Public Safety
Officers Procedural Bill of Rights Act (Gov't Code 3300-3313). The position of Fire Chief
remains entitled to all protections and rights afforded under California law, including, but not
01181.0004/3012482 -9-
limited to, those set forth in the Firefighters Procedural Bill of Rights Act (Gov't Code 3250-
3262).
PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting
thereof held on the 12th day of July, 2016 by the following vote:
AYES: Irons, Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
ABSTAIN: None
L.
JAMV L. IRONS, Mayor
ATTEST:
est
ANA SWANSON, City Clerk
01181.0004/301248.2 -10-
P®SI'I'I®N
Assistant City Manager
Fire Chief
Harbor Director
Police Chief
Administrative Services Dir
Public Works Director
Community Development Dir
Deputy City Manager
Finance Director
01181.0004/301248.2
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1 2 3 4 5
1261790 133,130 139,786 146,775 154,114
124,248 130,460 136,983 143,833 151,024
121,973 128,072 134,475 141,199 148,259
117, 5 8 8 123,467 129, 640 13 6,122 142, 92 8