HomeMy WebLinkAboutReso 36-21 Directors Comp Benefits Reso draft (cjt)RESOLUTION NO. 36-21
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AMENDING AND RESTATING THE PREVIOUSLY ADOPTED MAXIMUM COMPENSATION
AND BENEFITS FOR CERTAIN CITY DEPARTMENT HEAD POSITIONS
THE CITY COUNCIL
City of Morro Bay, California
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
WHEREAS, 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
WHEREAS, the City currently has department heads that include the Administrative
Services Director/Assistant City Manager Community Development Director, 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 Combined Salary Schedule adopted by the City as part of the fiscal year budget process as
updated from year to year; and
WHEREAS, the City Council now desires to approve the compensation range and benefits
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.
follows.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as
Section 1 The City Council hereby approves the Executive Salary Schedule effective
July 1, 2021 attached as Attachment A.
01181.0004/301248.2
S ection 2. Annual Cost of Living Adjustments (COLA) and/or equity adjustments may
be given to Director 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 Council hereby approves a five percent (5%) COLA
base salary increase to the Director 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, City Council hereby approves a non-
PERSable one-time lump sum payment of one thousand dollars ($1,000) to each
Director employed with the City of Morro Bay during the period April 4, 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-
19 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
on which the various conditions are based resulting in no one-time lump -sum
payment being awarded.
S ection 3. Directors with an existing employment contract with the City are entitled
o nly 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
o r 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
S ection 4. 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
01181.0004/301248.2
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 and approved by the City Manager,
and will 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 "at -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 Labor 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 written 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.
E 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.
Service
Years
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.
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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. Vacation leave time must be taken off on an
hour -for -hour basis equaling employee actual time off, regardless of accumulation rates.
F. Holiday Leave.
1. The following days are paid holidays for Director employees:
N ew Year's Day
Martin Luther King Day
S pring Break Holiday
P resident'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.
G. Administrative Leave.
1. Accrual rate Each Director is eligible to earn up to 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. The administrative leave bank may never accrue
more than one hundred twenty (120) total banked hours which may limit the number of hours
credited to the employee's administrative leave bank on July 1st of each 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.
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H. 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 ("CaIPERS") 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. Usage. 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
I. Retirement Benefits
1. City contributions. The City will pay the employer portion of retirement
contribution to the California Public Employees' Retirement System (CaIPERS) Employees are
required to pay their full member contributions for whichever plan they are eligible for pursuant to
the City's contract with CaIPERS. (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. CaIPERS contract provisions.
(a) Tier I Miscellaneous— 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)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) 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
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who are determined to be a "classic" member by CaIPERS shall be provided with the following
CalPERS retirement formula and optional benefits:
(i) 2% @ 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 CaIPERS, will be
covered by following retirement formula and receive the following CalPERS optional benefits:
(i) 2% @ 62 formula (benefit factor increases to 2.5% @ 67+)
(Section 7522.20)
(ii) Final Compensation 3 Years (Section 20037)
(iii) Member contribution rate of fifty (50) percent of the
expected normal cost rate, which is currently 13.5% (6.75%
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— CaIPERS Safety Directors, who were hired prior to
September 17, 2011, shall be provided 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) 3% @ 50 plan (Section 21362.2)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) 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— CaIPERS 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 CaIPERS, shall be provided the following
CaIPERS retirement formula and optional benefits:
(i) 3% @ 55 plan (Section 21363.1)
(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)
01181.0004/301248.2
(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 CaIPERS, 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)
(iii) Member contribution rate of fifty (50) percent
expected normal cost rate (currently 13%)
(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)
J. Health Life, Dental and Vision Effective July 1, 2021, all Directors shall 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 less
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 Tess
of the
Life insurance is provided at $50,000 and is paid for by the City for the employee only.
Effective July 1, 2021, all Directors shall receive the following contribution toward the
purchase of Life, Vision and Dental insurances:
Life
Vision
Dental
Total
Bank
EE
Pays
Employee
only
Employee + 1
Employee+
2+
$8.70
$8 70
$8.70
$ 8.73
$16,40
$ 23.34
$ 56.68
$156.84
$156.84
$ 74.11
$181.94
$188.88
$ 71.18
$170.19
$176.67
$ 2.93
11.75
$12.21
For retired Directors City contributes the required CaIPERS monthly contribution towards
CaIPERS health plans, as selected by retiree.
K. 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.
L. 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.
M. Automobile Allowance Directors shall receive $250.00 per month or the use of a
take home City vehicle as determined by the City Manager.
01181.0004/301248.2
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N . 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.
O. Uniforms. The Police Chief and Fire Chief shall receive uniform allowances in an
amount consistent with the highest-ranking subordinate classification in their Department.
P . Bonding. The City shall bear the full cost of any fidelity or other bonds required
for a Director under any law or ordinance.
Q . 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.
R. 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
S hould 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
01181.0004/301248.2
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
Councilor 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
o r unpaid administrative leave until resolution.
3. Limitation. Government Code Section 53260 provides that all contracts of
e mployment 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
n umber 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.)
S. 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 Percentage of relocation
reimbursement
owed to City
Less than one year 100%
1 — 2 years 50%
2 — 3 years 25%
3 + years 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. The City shall have the right 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 5. 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
01181.0004/301248.2
entitled to all protections and rights afforded under California law, including, but not 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 22nd day of June 2021 by the following vote:
AYES. Headding, Addis, Barton, Davis, Heller
NOES. None
ABSENT: None
ABSTAIN: None
ATTEST:
aitkisor
DANA SWANSON, City Clerk
JOH HE ` I DING, Mayor
01181.0004/301248.2
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ATTACHMENT A
DIRECTORS SALARY SCHEDULE EFFECTIVE 7/1/2021
POSITION
Fire Chief
Harbor Director
Police Chief
Administrative Services Dir/ACM
Public Works Director
Community Development Dir
Finance Director
138,446
135,911
131,024
ANNUAL SALARY RANGE
2 3 4
145,368
142,706
137,575
5
152,636 160,268 168,282
149,842 157,334 165,201
144,454 151,677 159,261
01181.0004/301248.2