HomeMy WebLinkAboutReso 35-21 Unrepresented Management Employees Reso (cjt)RESOLUTION NO. 35-21
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
AMENDING AND RESTATING THE PREVIOUSLY ADOPTED
COMPENSATION AND BENEFITS FOR THE UNREPRESENTED MANAGEMENT
DESIGNATED EMPLOYEES OF THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Section 36506 of the California Government Code requires the City Council
to fix the compensation of all appointive officers and employees by resolution or ordinance; and
WHEREAS, Morro Bay Municipal Code Section 2.20.020 also provides 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
WHEREAS, 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 sections 3500 et
seq.)1 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. 08-17,
represents the City's adoption of local rules and regulations for the administration of employer -
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
1 Unless otherwise stated, references to Sections will be to the Government Code.
Resolution No. 35-21
Page 2 of 11
bargaining unit nor represented 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) salary increase established by City Council for these
employees for FY 2021/22.
NOW, THEREFORE, BE IT RESOLVED the Morro Bay City Council does hereby adopt
this Resolution, amending and restating the previously adopted and amended schedule of
compensation and benefits for the City of Morro Bay's unrepresented management employees
and superseding and replacing any prior compensation and benefits resolutions, contracts,
agreements or memorandum for such employees, including, but not limited to Resolution No.
33-17 as follows:
A. CLASSIFICATION/POSITION LIST
The following is a list of authorized management classifications:
1. Police Commander
2 Fire Marshal/Division Chief
3. Utility Division Manager
4 City Engineer
5. City Clerk/Human Resources Manager
6 Finance Manager
7. Planning Manager
8 Senior Civil Engineer
9 Senior Administrative Services Analyst
10. Consolidated Maintenance Superintendent
11. Information Systems Technician
12 Environmental Programs Manager
13. Senior Planner
14. Recreation Services Manager
15. Management Analyst
16. Support Services Manager
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 -hour day and more than five
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
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.
Time off of less than two 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
Resolution No. 35-21
Page 3 of 11
a day, will not be allowed. This exception is also not allowed to be combined with any
leaves.
ADMINISTRATIVE LEAVE
Management employees receive up to 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 The administrative leave bank may never accrue more than ninety-six (96)
total hours which may limit the number of hours credited to the employee's administrative
leave bank on July 1st of each year.
New management employees will be provided a pro-rata share of the annual seventy-
two -hour administrative leave bank upon employment.
Administrative leave time must be taken off on an hour -for -hour basis equaling employee
actual time off, regardless of accumulation rates. 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
Vacation leave time must be taken off on an hour -for -hour basis equaling employee actual
time off, regardless of accumulation rates.
Management employees are subject to a maximum leave accumulation of three hundred
(300) hours. Any hours exceeding the maximum accumulation, will be paid out in
December of each fiscal year, unless 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
Resolution No. 35-21
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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 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 July 4
Labor Day 1st Monday in September
Veteran's Day November 11
Thanksgiving Day 4th Thursday in November
Day after Thanksgiving Friday after Thanksgiving
Christmas Day December 25
New Year's Day January 1
Martin Luther King, Jr. Day 3rd Monday in January
Spring Break Holiday Observed the Friday before
Easter weekend
Washington's Birthday 3rd Monday in February
Memorial Day Last Monday in May
Floating Holiday Vanes
Floating Holiday 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).
For management employees, one holiday equals eight hours, unless the employee is
working the 9/80 alternative work schedule where one holiday shall equal nine hours.
Floating holiday hours are recorded in a bank in July of each fiscal year and may be carried
over to the next fiscal year, to a maximum accumulation of forty -eight -hours of holiday
time. Hours of holiday time accumulated over forty-eight 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.
Resolution No. 35-21
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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
e mployee illness, forty-eight (48) hours of which may be used in the care of the
e mployee'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
u nder the applicable contract between the City and the California Public Employees'
Retirement System ("CaIPERS"), if any. Sick leave converted to service credit for
CaIPERS purposes cannot be compensated (converted to dollars).
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:
Sick Leave Utilization
0 hours
25 to 8 hours
8.25 to 16 hours
16.25 to 25 hours
Over 25 hours
Sick Leave
96 hours
72 hours
48 hours
24 hours
0 hours
Maximum Conversion
to Vacation Leave
48 hours
36 hours
24 hours
12 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 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 years
of service with the City, said employee shall be entitled to receive payment for up to the
first seven hundred twenty hours of their accrued sick leave at thirty-five percent of the
employee's rate of pay, as of the date of service retirement. Service Retirement is defined
as service retirement from both the City and CaIPERS. Voluntary separation or
termination actions are excluded from this benefit.
H. RETIREMENT BENEFITS
All employees, enrolled in the CaIPERS retirement system, bear the risk of payment of
any increases in the employee contribution, above the current percentage made by action
of CaIPERS the California Public Employees Pension Reform Act of 2013 ("PEPRA") or
related legislation, and/or the State Legislature.
Resolution No. 35-21
Page 6of11
All employee CaIPERS contributions are paid to CaIPERS, 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 CaIPERS-contracted retirement plans:
CaIPERS M'scellaneous Plans
All employees pay 100% of the employee contribution to CaIPERS, which is currently:
1. Tier 1 Classic members = 8%
2. Tier 2 Classic members = 7%
3. Tier 3 PEPRA members = one-half the normal cost of retirement (currently 6.75%)
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following
CaIPERS 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)
Resolution No. 35-21
Page 7 of 11
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 CaIPERS definition of
classic member, as determined by CalPERS under PEPRA and related legislation, receive
the following CalPERS retirement formula and optional benefits:
1. 2% @ 60 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 CalPERS 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 percent of the expected normal cost rate, which
is currently 13.5% (6.75% 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)
CalPERS Safety Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:
1. Tier 1 and Tier 2 Classic members = 9%
2. Tier 3 PEPRA members = 13.0% (50% of the normal contribution rate)
Tier 1: All employees, who were hired prior to September 17 2011, receive the following
CaIPERS 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. 3% @ 50 formula (Section 21362.2)
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 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 CaIPERS retirement formula and optional benefits:
Resolution No. 35-21
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 CaIPERS under PEPRA and related legislation receive
the following CaIPERS retirement formula and optional benefits:
1. 2.7% @ 57 formula
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty percent of the expected normal cost rate, which
is currently 26% (13.0% 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/LIFENISION/DENTAL INSURANCE
Effective July 1 2021, all employees receive the following contribution toward the
purchase of CaIPERS health insurance, which includes the required CaIPERS monthly
contribution:
Employee only - up to $715/month or cost of insurance, whichever is Tess
Employee + 1 — up to $1,135/month or cost of insurance, whichever is less
Employee + family - up to $1, 460/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 July 1, 2021, all employees receive the following contribution toward the
purchase of Life, Vision and Dental insurances:
Life
Vision
Dental
Total
EE
Bank
Pays
$8.70
$
8.73
$ 56.68
$
74.11
$ 71.18
$ 2.93
Employee
only
$8.70
16
4
40
$
$1,81
94
Employee
$170.19
$156
84
+ 1
$1175
+
$8.70
$
23.34
$156.84
$188.88
$176.67
$12.21
Employee
2+
For retired employees, City contributes the required CaIPERS monthly contribution
towards CaIPERS health plans, as selected by retiree.
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.
Resolution No. 35-21
Page 9 of 11
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 recommended by the City Manager and approved by the
City Council, though neither is guaranteed.
1. For the fiscal year 2021/22, City will provide a five percent (5%) COLA base salary
increase to the management employees' salary ranges, as reflected in Attachment A
hereto, effective with the pay period containing July 1, 2021.
2. Potential One -Time Lump Sum Payment. In recognition of the financial and overall
sacrifices made during the COVID-19 health emergency, contingent upon satisfaction
of the following financial terms and conditions, the City shall provide a non PERSable
one-time lump sum payment of one thousand dollars ($1,000) to each unrepresented
Management member employed with the City of Morro Bay during the period May 2
2020, through December 31, 2020, and who is still employed when the lump -sum
payments are issued by the City after verifying the following conditions precedent have
been satisfied (anticipated to be around October 1, 2021):
A. Total of three major General Fund Revenues (Property Tax, Sales Tax and
Transient Occupancy Tax) must meet or exceed the combined Fiscal Year
2020/21 forecasted amount of $7 757,301 adopted by Council on June 23, 2020.
This figure shall be based on current tax rates (currently 1% Property Tax, 1 %
CITY Sales Tax, 10% TOT). In the event of increased tax rates, such increased
rates would not count towards increased revenue receipts for this purpose Sales
tax shall exclude any consideration of Measure Q, Measure E and Cannabis Tax
that is collected at any time during Fiscal Year 2020-21.
B. The CITY must not become responsible for any state or federally imposed
unfunded mandates from any external source(s) that require significant unplanned
and/or un-forecasted General Fund expenditure(s) of more than $125,000 above
the projected use of General Fund unassigned Reserves equal to $1,248,000 in
the Adopted FY 2020-21 budget (page A-11). This shall include but is not limited
to significant natural disaster(s), worsening financial conditions related to the
COVID-1 9 pandemic or a human -made disaster affecting the City Any such
expenditure(s) cumulatively totaling $125,000 in a fiscal year or more will be
counted as a reduction in the combined revenue amount discussed in this section
Resolution No. 35-21
Page 10 of 11
on which the various conditions are based resulting in no one-time lump -sum
payment being awarded.
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 transportation, and will permit
paid time for employee to take examinations, scheduled during normal working hours If
no City vehicle is available, then City will reimburse mileage for the use of the
management employee's personal vehicle, at current IRS mileage rates.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 22tnd day of June 2021, by the following vote:
AYES Headding, Addis, Barton, Davis, Heller
NOES' None
ABSENT: None
ABSTAIN: None
ATTEST:
DANA SWANSON, City Clerk
JOHN tilE D 'G QIayor
Resolution No. 35-21
Page 11 of 11
ATTACHMENT A
MANAGEMENT SALARY SCHEDULE
POSITION
P olice Commander
Fire Marshal/Division Chief
U tility Division Manager
City Engineer
City Clerk/HR Manager
Finance Manager
Planning Manager
Senior Civil Engineer
S r. Admin. Services Analyst
Information Systems Tech
Environmental Programs
Manager
S enior Planner
Recreation Services Manager
Consolidated Maintenance Supt.
Management Analyst
P olice Support Services Mgr.
ANNUAL COMPENSATION RANGE
1
120,015
110,187
106,898
105,633
90,706
82,459
70,511
2
126,016
115,696
112,243
110,915
95,242
86,582
74,036
3
132,317
121,481
117,855
116,461
100,004
90,911
77,738
4
138,932
127,555
123,748
122,284
105,004
95,456
81,625
5
145,879
133,933
129,936
128,398
110,254
100,229
Note: Classifications shown in italics are not budgeted or proposed to be filled in the FY 21-22
budget
85,706